Tom:
Thanks for the update info. Where in Roosevelt County are your minerals located (Township; Range; Section). Just trying to get an idea on where you are located from mine. I’m in Township 30 North; Range 59 East; Sections 6 & 7 and Township 30 North; Range 58 East; Sections 1 & 12.
Richard, the interest in 19,28,50…do you mean T28, 50E section 19?
That’s usually the order you use. Sec, Twp, Rng.
Does anyone have any idea what the current bonus rates for Township 30N; Range 58 & 59 area? Also, are leases being re-leased as they expire?
I can’t cite any examples from your area but I think that is way too cheap; most in the general area are getting $350 pretty easy and the 1/6 and some 1/5… I would sure counter offer at $350 and hold at $350… but if there are wells close to you, it should be more!!
I meant to say not less than $300…
My sisters and I have 35 acres in Township 29 North, Range 50 East, Section 11: W2. We have been offered $150.00 an acre and 1/6 royalty. Is anyone else in this section? They say they are ready to drill 4 wells in this area which is 1000s of acres. The company is out of Texas.
Leanne, Was your offer from Fort Worth Oil? I was offered the same from them and declined. I think there is some uncertainty about the area yet, enough confidence that they are seeking leases. Bottom line, they are making an offer for a reason. So, I chose to take the same risk they felt was reasonable (either they never approach me again and I lose the bonus offered or they pay it and come up empty) and did not sign.
Thank you I forwarded this to my sisters and we need to investigate, they said something about they had over 60% of leases and if we didn’t take the offer it would automatically default to a 100% partnership where our royalties would have to pay for the drilling before we saw any money, I don’t understand it. Maybe you or someone else does.
Ms. Mills, there is information on forced pooling here if you search for it and I also suggest you read the law, just in case you don’t lease. I think the law is quite clear and in plain language but landmen seem to have trouble with it. The law says 200% of cost for your part of the well can be recovered for drilling and completing the well plus staking and a few other things then 100% of cost for things beyond the well hook up such as treaters, compressors and so forth. Note that the law doesn’t mention penalty, just % of cost. You would also receive a 12.5% royalty from the very first barrel while you wait for a well to pay out for you. Good luck with your minerals.
I agree Charles, Fort Worth has leased our acreage for about 10 years with extensions & have not drilled a well. We extended a couple of times for 2 years. So when they wanted 4 years this time, I lost faith in them.
Leanne:
First, I agree with Dctex99 in that $300 bonus would be the least amount that I would consider with a 20% royalty. I would enter the negotiations with $350 bonus: 20% royalty with a maximum of 3 years. I have minerals in Township 30N; Range 59E and some of these are expiring in early 2014 so I am watching these lease amounts closely. Further, the statement you refer to below regarding partnership sounds like a forced pooling matter. Most likely they will try to reach an agreeable lease with you and your siblings. Who is this company? My area is currently leased with Legacy Reserves LP which is a Midland, Texas based company. I’m not familiar with their operations in the Bakken but they are a sizeable player in the Permian Basin area. Good luck in your ongoing negotiations.
Leanne: There is a well in Township 29, Range 50, Section 11: NWNW. Still producing approx. 100 bbls/month from the Madison formation. Completed in 1953.
If your minerals cover Section 11: W/2, you should be receiving royalties??
Lots of older wells in this Poplar West area.
Houck Energy is a leasing agent for Fort Worth. I have spoken with Russ Houck & Tracy Bakken. I have also spoken with Brice Phillips, the owner of Fort Worth I believe. They all seem to be very nice people. They wanted a 4 year term which makes me wonder if they intend/hope to flip the leases.
Thank you looks like we have some research to do. Yes it is Fort Worth Oil and I wasn’t impressed with the guy who called. I am pretty sure when the contracts come none of us will sign.
We are in 29 North 50 East Section 11: W2
We have never received any royalties and these have been in our family when my dad purchased them in the early 70’s. How do we find out if we should be receiving royalties.
Thank you I just lost this site.
As earlier stated, I would never consider signing for more than a 3 year lease term. If these companies are serious about drilling, that’s enough time, but if they are looking to flip the lease, the 4 - 5 year span fits their needs. Beware of the ones looking to lease for a small amount while waiting for the drilling to escalate in these areas. It will only take one or two good wells to boost their investment.
How is forced pooling legal, why will they not negotiate, so I would like to know who the 60% other mineral owners are. They did say they are ready to put in 4 wells but did not give the location.
Once again thank you.
Leanne: All of this leasing advice is moot if your acreage is HBP. Montana records show that Nautilus Poplar, LLC operates a producing well (McGowan 3) in the NWNW of Section 11. Nautilus’s Denver phone #720-570-3858.
If you own minerals (as to all depths) in the W/2 of 11, you should be getting royalties.
Ms. Mills, despite what Steve says, operators frequently drill wells without having the mineral owner leased. There are two wells in the west half of Section 11, one has been shut in for several years, one has slight production. Both wells are somewhat shallow Madison formation wells operated by Nautilus Poplar LLC. Both wells are classed as oil wells. If you do not have a lease with a shut-in clause, the well that has been shut in for years may not hold any of your acres due to lack of production, another good question for your lawyer.
Being as the wells are vertical, they may hold very little of your acres because they may be on 40-acre spacing.
Someone is trying to lease you because they see a need to do so because you ARE NOT totally held, some of your acres are probably held but probably not the majority.
I would stick to my guns.
I would also contact Nautilus and ask them where my money for my oil was. These wells have been there for a long time and I think would not be subject to the recent rewrite of the pooling laws, that is a question for your lawyer.
Companies still need a lease from you.
Has anyone heard of Cress Oil Company? I have read that this company has acquired numerous acres in Roosevelt County and plans a massive development program over the next couple of years.