Vertical Depth Severance Clause - North Dakota?

Talking with a landsman re a possible lease with Empire Oil for our interests in T141, R104 in Golden Valley County, ND. I asked for a verical distance severance clause. He says “they don’t use that in North Dakota.” and that he’s never seen one in the thosand plus leases he’s done. I’ve been able to get them in Texas. What’s the real story? Other terms seem good.

Mr Davis, a "Vertical Pugh Clause" can be incorporated into your lease. While that landman may not have done a lease with one, there is nothing in North Dakota to prohibit it. However, the oil companies there aren't typically asked to add it in. So they're reluctant to do so, and they are not common in most leases. I had a similar objection while negotiating a lease with CLR. Let us know if WLL (via Empire) allows it in their lease.

Joel, the sections Empire is interested in (that I have) are 14,26,30, and 32.

Joel said:

Andy:

what section are you I am in section 27S & 26 1/4NE 34

yes, by all means, keep the Empire offering private. None of us here could possibly find that information

useful....once again another example of the lack of quid pro quo.

Joel said:

You must have bought from some of my extended family members to be in Section 26, my family owned all of that.

Can you please confirm 141-104W-26?

I am interested in what Empire is offering you, is it all one lease or seperate.

Let's talk privately.

Joel

We are in 141 -104W Golden Valley which is across the road from Maus just south, east by less than 2 miles of Nester, just west of brookfield. Any rights in this area are going to hit big this year 2012 ! We just rejected a offer of $625.00 /20% from Empire. We drove out to look and found that something very big is being constructed in this area. If you Google Earth or Flash Earth you will find that a MAJOR construction is taking place with huge oil storage and a possible man camp for next year.
Our attorney estimates that the price per acre will triple in the spring with a 25% average royality maybe more. The Maus farm is going to be a huge production site. They four wells in the making all around that farm. Plus the gossip in town is they are adding five more in the spring/summer. They contracted with Beach ND for a huge water supply for next year.

We are not even looking at anything less than $1200 per acre 25% royality for only 2 year lease.

We (Nistler).. in addition to the homeplace.. also have 141N 104W section 28 W/2 which is east of the homeplace by 2 miles and fits your description of where your parcel is... what section do you have exactly? Originally our family was told that three were planned for sec 28 W/2 and that has since been revised to five, perhaps that is the gossip you are referring to. We are also "aross the road" directly south of the Maus family so as you can see your description is confusing to me. Joel had the E/2 of section 28, so I hope you can understand my confusion.

mlh said:

We are in 141 -104W Golden Valley which is across the road from Maus just south, east by less than 2 miles of Nester, just west of brookfield. Any rights in this area are going to hit big this year 2012 ! We just rejected a offer of $625.00 /20% from Empire. We drove out to look and found that something very big is being constructed in this area. If you Google Earth or Flash Earth you will find that a MAJOR construction is taking place with huge oil storage and a possible man camp for next year.
Our attorney estimates that the price per acre will triple in the spring with a 25% average royality maybe more. The Maus farm is going to be a huge production site. They four wells in the making all around that farm. Plus the gossip in town is they are adding five more in the spring/summer. They contracted with Beach ND for a huge water supply for next year.

I'm also in the E/2 Sec 28 141N 104W.