Sheridan County, MT - Oil & Gas Discussion archives

Did any one see the CNBC special on Bakken oil explosion in Williston on Feb 6th? Here's a link to info it:http://www.cnbc.com/id/46167125/ Of course they made a big deal about fracking repercussions. But hasn't there been a new fracking liquid developed that is EPA approved? Link: http://www.prlog.org/11743014-eco-friendly-fracking-fluid-set-for-debut.html Is this stuff for real? If so, the fracking controversy could be a thing of the past . Un related question - when in the leasing process do you find out which oil company is getting (assgned) your lease?

The name of the eco friendly fracking stuff is SteriFrac.

Case of the Curious map.

If the yellow areas are supposed to be those leased by Triangle Petroleum I am wondering why the section my land is in is yellow, since we have not leased to anyone.Sec12Map.pdf

Duke Wolf:

Most likely a mistake when making the map or these are areas where Triangle is currently leasing. I am dealing with them currently in ND and they appear to a aggresive company since they have acquired their own well completion company. I understand that they are operating two rigs in the area with expectations of adding additional ones. I spoke with a landman and he stated that they are currently leasing in MT and ND, top leasing most likely. Their company execs appear to be very experienced with many coming from EOG Resources. They will interesting to watch over the next couple of years.

Anybody know any Law students, retired land men or somebody that doesn't charge an arm and a leg to do some court dodument searches. I live in Alaska and cannot leave for family reasons.

Does anyone know where I can get a oil and gas lease that is fair. I don't really want to pay a lawyer to draft one for me but I will if I have to.

I just hate these standard leases that are sent to me. Even if I don't accept the last offer I got I will eventually want to sign something with someone.

Jason, You might want to click on the "Blog" above and read anything by Buddy Cotten. He shares a lot of good advice. There are others as well who have shared helpful information. Also, from what I have heard, attoney fees in MT are pretty reasonable compared to other States. Last, paying an attorney to look over a lease will amount to pocket change compared to what signing a bad lease could cost. Good luck!

Jason=How did you find companies that wanted to lease your mineral rights? I have some that were my late fathers and I would really like to get a lease for them. Any advice would be appreciated. Thank You, Cindy Dahlquist

Jason (and then Cindy below):

Although there are boiler plate O&G leases, they all tend to benefit the lessee. So, ultimately it's the advice and advocacy of a reputable and knowledgeable attorney that makes all the difference.

As Tom said below, the amount you spend on that is inconsequential compared with making an ill-informed decision. My family and I signed leases last month and were represented an O&G attorney in Boulder Colorado, near where we live. He was superb and worth every penny.

Cindy:

From my understanding, companies sign on brokers/landmen, who find MR owners based on where they're planning to explore. So, a Brigham contracts with a broker, directing them to get MR leases for X-thousands of acres, and the landmen flood the county seat, determine who owns the MR and goes from there.

That said, you can contact the major oil companies yourself and see if they're planning to develop your area. You can google them, but here's a good site on the Bakkan generally: http://oilshalegas.com/bakkenshale.html

And, here's a very informative site, Unconventional Oil & Gas Center; scroll down for a list of companies operating in the area:

http://www.ugcenter.com/Shales/US/Bakken/

I hope this is helpful.

Toby and Tom,

thanks for the info, not sure I'm going to need it now as I seem to be at a stand still. I requested that the lease state if I don't recieve my check in the 45 days as promised that the lease became null and void.

Cindy,

Don't worry they will find you. I was getting contacted 2 months prior to my last lease expiring.

The deal offered was $400 per acre with 3/16 royalties for 3 years with a 2 year option at another $400 per acre.

I am holding out for 20% which the last landman told me was not going to happen because no was giving 20%.

I'm willing to wait and see what happens over the next few months.

Question.

Two thirds of the family members signed on with a landman. they have been paid.

What happens if the oil company actually finds something and I have not signed on with anyone?

It seems as though I would be in a favorable position, although if they don't find anything then I would lose out on the upfront money.

Anybody know what happens?

Jason:

If you will google in "forced pooling" in the space at the top of this website, you can read dozens of discussions which will address your concerns. I will not go into detail as you will be able to get enough info from this website.

Charles:

thanks, that was very interesting and educational reading. Still pretty new to this and by googling something specific like "forced pooling" I learned quite a bit.

I feel my initial theory is correct, if they find something I will be in a better negotiating position.

Jason:

You are correct in that the more good wells that are drilled in your area, the more your mineral values increase as your negotiating power. You will have to eventually make your own decision as to what is best for you in regards to lease terms, etc. The main thing is not to get in a hurry to make a decision but weigh each offer very carefully and do your homework so you understand completely what you are agreeing to in a lease.

Jason:

The other variable we learned as laymen who researched the O&G industry, contracts, etc., with, I should add, the assistance of an O&G attorney, is that exploration companies target areas in a given county, based 3-D seismic studies and availability of rigs. So, although you can wait for what you deem is optimal pricing, if you have, say, 300 acres, and miss the window when a given company is exploring 6 or 7 thousand acres, inclusive, of yours, you could foreclose an opportunity that might not present itself again for some time.

So, for example, there are about 1,700 square miles in Sheridan county, and there are 640 acres per square mile, for a total of 1,088,000 acres. As you can see from this map http://geology.com/usgs/bakken-formation-oil.shtml, the Bakkan covers most/all of Sheridan county, although there are obviously favorable and less favorable areas for exploration.

The goal is to catch the wave or cycle at the optimal time when your needs and the top market pricing are most closely aligned. Charles is correct that productive wells in relatively close proximity to your land increases the value of yours; however, there's chicken/egg or dovetailed effect at work here, insofar as exploration companies and landmen have pre-set parameters for defined areas and unless you're willing to wait for an entirely new cycle--two, three, five years?--you could miss what amounts to a very competitive price based on the limits of those parameters.

It's a judgment call, and although I agree with Charles in counseling patience and not appearing overly interested, there are economic limits to what a company will offer you, based on the expense/revenue pro formas they've developed, long in advance of negotiating with any particluar MR owner.

Toby and Charles,

I appreciate the feedback. Hard to pull the trigger on something I know so little about. Trying to learn with each call I get.

The last landman was a little to slick for me, he kept saying "no lease no grease". That gave me a bad feeling about the deal.

A five year lease is way to long, people are leasing for 3yrs, and no less than 1/6th royalties. Get a Pugh clause in your contract. State owned lands are being leased for $750.00 to 950.00 per acre, BUT the leases are for about 10 yrs. Don't sign a lease without an attorney to look it over. There are good attorneys in Plentywood,MT. They know the business and they also are familiar with people and companies who have offered bogus leases.

My relatives and i have signed leases with "Baseline Minerals,Inc." out of Denver. 920 gross acres 34 North, Range 55 East

Section 08: W2, NE Section 9 W2, W2NE,SWSE I was the last to sign up so.... I went with the program 350 acre and 18.5%. We also have minerals in ND yet to be leased.

But after being on here and letting my fingers google everything regaurding the Bakken, and trying to call Baseline Minerals I belive they are co-leasseewith a drilling company. Does any one know how to find out who they work with? I have left messages with my landman and the corparate office... no return phone calls. Ther checks where good.

As for an Attorney referal I have a local contact in Plentywood O'Toole Law Firm. This does happen to be a great uncle of mine,per our phone calls seams extremly up on the area being a lifetime resident and a lawyer just thought I'd throw it out there.

Yes, Todd Berg. We have known Loren Sr. forever. We hired him for his advice, even though we felt totally "right" with our contract. Great advice and friendship from Loren and his office. We totally recommend O'Toole Law firm. Anyone who does not utilize an attorney in Oil and Gas Leasing are fools.

I have contacted the O'Toole law firm on several occasions, mainly for advice about the activity in the Sheridan County area. Very pleased with their help and information provided. Baseline Minerals, Inc. is most likely a broker working for an oil company (as you have stated). I would contact the O'Toole law and see if they know who is leasing (oil company) in that area. Marathon Oil Company contacted me in regards to a temp. spacing unit on our minerals in Sheridan County (T31;Section 59). They stated that their company would be developing this area this year. Their problem is lack of drilling rigs as they are currently drilling in Williams County, ND and possibly other areas in ND. The key is the lease expiration dates as this seems to be a major factor in the drilling process. Eventually, these areas in Roosvelt and Sheridan will become active but ND still has all the attention.