Jake:
I am having trouble accessing the GIS mapping system on the Montana Oil and Gas website. When I gain access, I will inform you about the current activity around your area.
Thanks Charles, We have a lease offer from Shale Exp. for $250/acre bonus, and 1/6 royalty and their 5 yr+5yr option. They are interested in our land (200acres twnp 34n rng 52, sec 22)that is near Daniels Cty. We also have an offer for 250/acre, 1/6 royalty, for 3 years with 2year extension for that same 200 acres. That acreage has county road access, and a closeby pipeline that runs between Outlook and Poplar. Do you think we should negotiate the offer? We also have 200 plus acres of mineral rights on the west side of Plentywood adjacent to the hiway to Scobey. We don’t own the surface rights, though. Does that make it a lot more complicated? I hear that access to market is a problem for the Bakken, but I see Plentywood is getting a pipeline that goes to Minnesota. Enbridge, I think. Is building it. Any comments or advise is greatly appreciated.
Jake:
I would not grant an extension of a lease and insist on 3 year max for the term. I would negotiate at 18% (at least) royalty. Bonus amount, I am not sure of but that sounds low to me.
Jake: Do you have anymore details on the Outlook to Poplar pipeline? What company is building it etc. ? I have MR's near Poplar and am interested in any pipelines being buit near there. I know that much of the lands around Poplar are reservation ownership but there are others like mine that are held in private fee ownership. Thanks
Jake: Although these comments are informed and helpful, I'd recommend you retain a competent gas and oil attorney when it comes to the negotiation of the contract provisions and terms. These contracts are complex, the options many, and most of us don't have a solid command of the industry, much less the legal expertise to fully protect our interests. Best of luck.
Jake, If you want to look around a little use this drop in site:
http://svcalt.mt.gov/tlmspublic/MMB/WebForm2.aspx
this is a state lands/ records of leases, you will find in daniels county 45 active leases from 06' to 12' and in sheridan county there is 7 active leases in 09' and 10' , I understand Apache Drilling has partnered up with Shale to drill. A ten year tie-up is what they offered me a while back, I asked for three and they flat refused. Good Luck Brian...
B Volney:
As time goes on (over the next few years), there is a strong possiblity that Sheridan plus other counties become very active due to various subsurface formations. You did the right thing by not tying up your minerals for a 10 year period and I recommend highly that you stick to your guns on this matter. I am in T31N;R59 area in Sheidan County and Marathon will be drilling a well in late Oct/early Nov. on my minerals. The rig is already in the area drilling adjacent sections. Just be patient.
Has anyone got any updates on the drilling program by Marathon in the T31N;R59E area. This is referred to as their "Diomedes" prospect and currently, several wells are being drilled in that area and several drilling permits exists in that area. I have been told that Marathon may not be drilling these other wells at the present time. Does anyone have any information about this matter.
Regarding Seismograph companies, can anyone enlighten me as to their leasing contract legalities nowadays? Info on perhaps longevity of the contract, going rates per acre, going rates for shot holes and clean up costs, (if they do not use a vibratory truck), property damage or crop damages.
A company has contacted my family about wanting to seismograph for a 3-D geographical image of our property for a ridiculously CHEAP dollar amount per acre, and a 1 yr lease!! There is no dollar amount stated for damages, or clean ups!!
We all know that these companies sell their info to the big oil companies, for BIG BUCKS, so why would anyone tie up their property for this sort of testing for a year, and then this sort of lease gives them the right to return for additional testing with nothing paid to the land owner?
Of course my family and I will NOT sign any contract/lease until we visit with our attorney Loren O'Toole, Sr. in Plentywood.
Our property is in a Wildcat area, just a few miles South of the old Archer, MT Town site. Township 35N, Range 53E. This acreage has been seismographed numerous times since the late 60's. We still have those old contracts. We sure would appreciate any info you might have. We will also visit with our relatives and neighbor farmer/ranchers for their input.
I really enjoy this website; it is great reading, and great help regarding what is happening in the county oil & gas business.
Lyla:
I will advise to read a blog on this website written by Buddy Cotten regarding seismic work. The title of the blog is "The Geophysical Option-and it's misuse". Mr. Cotten, who is a professional in the field of oil and gas, describes the pros and cons of this type activity. Click on "Blogs" at the top and scroll to this title. The O'Toole law firm is very helpful as I have contacted Mike O'Toole on several occassions over the years. Sorry I can't give you some up to date info on the going rates in MT but the seismic work conducted on our minerals was handled between the seismic company, surface owner and the lessee of the minerals.
Thank you Mr. Mallory! You always have such great feed back. :)
I am new to this forum and and also new to Mineral Rights and all that it entails. My brother is currently working on getting good information so that we can find the best way to buy or handle my fathers mineral rights. My father is in a nursing home so any and all money he would gain would go directly to Medicare, at least that is what I have been told. There are four of us, my 2 brothers, a sister and myself, that would be taking over the mineral rights. I have read about quit claims and wondered if that is a good way to go? Also heard the terms revocable and irrevocable? Any and all information would be appreciated.
I would recommend you hire an attorney that is familiar with Estates and oil rights. You may also need advice from an accountant. Revocable and irrevocable refers to trusts. This will be extremely complicated with Medicare involved.
Kathy:
A quit claim deed is an excellent tool for transferring mineral rights from one party to another but as Larry stated, Medicare is involved in the equation and I agree with him in that one needs to get involved that fully understands the laws regarding Medicare. I understand that they can't claim your house but I also understand that they will audit your financial transactions as far back as 5 years. This could pose a problem in your situation. Good luck and seek some good advice from a knowledgeable party.
Thank you for the comments and great information. My brother has been talking with an attorney. I just like to get information from others as this is all new to me. Thanks again!
I own mineral rights in Sheridan co Mt. I was contacted 6 years ago and signed a 5 year lease to explore for oil with Great Northern Energy Inc. A new oil company contacted me today and wants to explore also, but he also wants to know how much royalties am I getting from GNE for the oil the pumping out now! I haven’t heard from GNE since I signed the lease in 2006. I live in Minnesota, I can’t exactly drive out to see if this is actually true. Who should contact first GNE, Sheridan co sherif or a lawyer? I worry that by calling GNE they will pull out and pretend they where never pumping. I know about 1% of what I should and need help!
Do you have the legal description, well name, etc.? When was the existing well drilled? Have you looked at the Montana Oil & Gas website to see if there is any production data or the status of the well? If the well is producing, any money owed you should be in an escrow account. Does Norrthern have your correct current address for communications?
Mr. Beck:
Great Northern is not an operator (drilling company) but a lease broker that generally leases for various operators. Are you currently recieving monthly royalties? If so, as Mr. Johnson states, give the legal description of the lease and further research can be conducted.
Thank you, I called Montana oil and gas commission. They say that drilling is in the south section, my area is on the NE side. The full description is township 36 North, Range 52 East section 14:NE4 They gave me a website and I be looking this up tonight. I called GNE and you are right, they do not drill. My info is out there, but should I try to contact someone to give them my current info?
I have never received any royalties.