What is"cold drafting?"
Duke:
"Cold drafting" is when you sign and notorize the lease papers, mail them back to the lessee upon conditions of a bank draft and the lessee files your lease and does not honor the bank draft. I have never had this happen to me but there has been several on this board who weren't so lucky. If this occurs, you will most likely have to obtain legal help to solve the problem.
Duke:
Go to the top of this forum and google in "Cold Draft" and you will see past posts regarding this action.
Barbara,
Yours is almost exactly due south of ours in the next township. Don't know if you know the families, but ours was farmed by Munson. I also remember the Cybulski's near there.
No, I can’t say I know anyone from the area. I’ve only been to Montana once and that was back in 1989.
Our family has mineral rights located Township 35 North, Rage 56 East of Montana Principal Meridian; Section 32: N.2 as well as Township 36 North Range 57 East; Section 32: E2 and Section 33: W./2NW/4. Any news on these locations would be appreciated.
Jerry:
Looking at the map, there appears to be a producing well in T35N;R55E;Section 36 which is a couple of sections to the West of your area (T35N;R55E;Section 32); No wells near the area T36NR57E; Sections 32 & 33. I have minerals on a Section which is next to Roosevelt County and it is leased to Marathon who contacted us last year with info that they plan to drill later this year or the first part of 2012. To date, no permits have been sought by Marathon, so it's just a wait and see game. These counties of Sheridan, Roosevelt and Richland should see additional drilling in 2012 but currently, ND is stealing the show. I'm watching this Montana area closely in hopes that the widespread drilling will begin soon. Many of these leases should be nearing expiration so the mineral owner might end up on the positive side since better
bonuses and % royalty rates are much higher than back in 2008-2009 when may of these areas were leased. Good luck.
I was contacted by an LLC to lease my land. i have a post open regarding this, but since, was wondering who or how to find competitors to see if they are offering a better deal. Anyone know what to even google to find someone? Seems only logical to see what competitors are offering.
I was contacted by Bakken oil LLC but the header on the letter said Celsius energy LLC. Not sure who is really making the offer.
Jason:
One way to find out who is leasing in the Sheridan County area is to google "Montana Mineral Management"; this site will provide the previous State lease information; you can view the entire year by months that the sale is being held. Just scroll down to Sheridan County and it will give the name of the Lessee along with other information on the lease.
Does anyone have any experience with either Celsius Energy, LLC or Bakken Oil, LLC.
Letterhead of my offer says Bakken Oil LLC but he lease is with Celsius.
Its seems the number one advice I get is know who you are dealing with, and I don't know anything about these LLC's except they are in good standing with the state of ND.
Jason:
These are most likely lease brokers working for some oil company. In 2008, I leased with a broker that I knew very little about on a top lease deal. Things worked out well but I insisted on a check and not a bank draft. I stated my lease terms and stood firm. They did the usual bargining as most do but I told them not call back unless they agreed with my terms. I also knew it would be re-leased by then, the current lease holder. I've been leasing since 2004 and since then, I have tried to educate myself in all areas of leasing. I've still got a bunch to learn. Good luck in your negotiations.
Our Baker Mineral Trust received an offer to lease our 35 net acres in T33N, R52E, Sections 12 and 13 for 3 years, 18.75% royalty, $500/acre bonus, but we have not signed yet. Has anyone received a better offer? Thanks
John:
If it were me I would try and negotiate a higher royalty...20%. The bonus is probably in range due to the lack of drilling activity in that County. The 3 year lease is very good. I'm located to the South of your minerals and have not negotiated any new lease terms in that County. Mine will not come due for another couple of years. I always put more value on the % royalty than the bonus amount because in the long run, this tends to be of more value to the mineral owner.
Thanks, Charles we will do that. A day later we also approached Marathon for a better offer than the other company's because Marathon seemed to be drilling in Section 18 in the same Range 52. Marathon replied "they were not acquiring new leases in that particular area and decline to make an offer" Perhaps, If they are spacing in adjacent sections they do not need any more leases?
John:
Marathon has applied for a temp. spacing unit on our minerals in T31;R59 but no permit has been filed. They are probably taking baby steps in the development of this Sheridan County area. If they have good luck, you will see them taking in more acreage.
Just looked up my parcel of land on ESER.org, as suggested on this board. shows all the activity in the area by simply imputing 31n-57e-34n. Not much activity in my tract and most wells nearby are dry wells. Not sure if a dry well means it was drilled and nothing is coming out anymore or nothing ever did come out.
Jason:
The drilling activity has not yet reached the Sheridan County area as the majority of rigs are tied up in ND. Seismic work has been conducted on these areas around your minerals and several temp. spacing units have been applied for in the area which leads me to believe that these tests revealed proven results. Again, I think the drilling will pick up in this area in 2012 due to the expiring leases in 2012/2013. In regards to the plugged wells on Eser, these are old verticle wells which were drilled years ago and these exists all around the Eastern Montana area. Not sure what formation they were originally drilled to but don't worry about these type wells. Let's all just sit back and play the waiting game for the next several months.
Does anyone have any information in regards to the location of the Archer #1 well being drilled by Enterprise Energy Resources, LTD. Also, my understanding is Enterprise hold thousands of acres in Sheridan; does anyone know the location?
Here is what I found on the Archer well. hope it helps
http://www.marketwatch.com/story/enterprise-spuds-montana-bakkenthree-forks-well-2011-12-05-82480
Jason:
Thanks for the info on the Archer well. Article states Enterprise Energy owns 30,000 acres (47 Sections) in mineral leases. I'm wondering where in Sheridan County these Sections are located. We have minerals in T31N;R59E area and it was my understanding the Marathon had this acreage. Sounds like Enterprise may have acquired minerals from another operator in the area.