I have a question. If my neighbor is a mineral rights owner of land with a well on it and I am the neighbor of that property with mineral rights will I benefit from that well? If so and it is a directional drilled well in the opposite direction (say drilled to the north but I am to the South 600 ft.) does that affect if I would benefit monetarily from that well?
I am getting conflicting information and hubby wants me to see what I can find out! Thanks everyone.
I’m in Arapahoe County, so quite a bit south of Weld County where the big money should be. My neighbors and I (we own a combined section) have been hounded the last few months by a couple of companies. Our current offers are $500/18.75%/3 year term and $450/20%/3 year term. I would expect these offers to climb as these two companies compete. These companies understand that we will not sign the standard contract. The neighborhood we border (1/2 section), settled for a mere $175 an acre, and I believe 12.5% (just a month or so ago). And, they settled for the standard contract. They however think they made out like bandits, as they were initially offered $20 per acre. There’s something to be said for playing hard to get! I would personally say that $200 in Weld County is a terrible offer.
The answer seems obvious, you can’t get paid for a well on property you don’t own. Are there more facts to this? In the old days, dishonest drillers could tap into a pool that crossed property boundaries, but that is illegal now. They would have to get that property owner’s permission as well or get a forced pooling agreement from Colorado.
Angie Dennis said:
I have a question. If my neighbor is a mineral rights owner of land with a well on it and I am the neighbor of that property with mineral rights will I benefit from that well? If so and it is a directional drilled well in the opposite direction (say drilled to the north but I am to the South 600 ft.) does that affect if I would benefit monetarily from that well?
I am getting conflicting information and hubby wants me to see what I can find out! Thanks everyone.
Do you mind sharing the names of the companies who made those offers?
Lisa Zieman said:
I’m in Arapahoe County, so quite a bit south of Weld County where the big money should be. My neighbors and I (we own a combined section) have been hounded the last few months by a couple of companies. Our current offers are $500/18.75%/3 year term and $450/20%/3 year term. I would expect these offers to climb as these two companies compete. These companies understand that we will not sign the standard contract. The neighborhood we border (1/2 section), settled for a mere $175 an acre, and I believe 12.5% (just a month or so ago). And, they settled for the standard contract. They however think they made out like bandits, as they were initially offered $20 per acre. There’s something to be said for playing hard to get! I would personally say that $200 in Weld County is a terrible offer.
I got the information I needed.
I’m in Arapahoe County as well, I’m thinking Lisa is my neighbor at the end of the road 
We are currently at $700/20%/5 year term - thinking we’d better sign soon. But if Weld County is that hot, I would also think that $200 is low.
Nicole, we’re now at $750 and still climbing. I agree, it’s probably time to sign soon, but who knows what the ceiling is? I’d hate to sign now, and then find out we could have gotten a lot more. I know we’re not in the same neighborhood, so it’s good to know what the offers are elsewhere in the county. Keep updating Nicole, and I’ll do the same.
Nicole Bartley said:
I’m in Arapahoe County as well, I’m thinking Lisa is my neighbor at the end of the road
Sorry, I think I had better not say yet.
Pat said:
Do you mind sharing the names of the companies who made those offers?
Lisa Zieman said:I’m in Arapahoe County, so quite a bit south of Weld County where the big money should be. My neighbors and I (we own a combined section) have been hounded the last few months by a couple of companies. Our current offers are $500/18.75%/3 year term and $450/20%/3 year term. I would expect these offers to climb as these two companies compete. These companies understand that we will not sign the standard contract. The neighborhood we border (1/2 section), settled for a mere $175 an acre, and I believe 12.5% (just a month or so ago). And, they settled for the standard contract. They however think they made out like bandits, as they were initially offered $20 per acre. There’s something to be said for playing hard to get! I would personally say that $200 in Weld County is a terrible offer.
Are the companies saying which formation they are targeting? Are they planning on drilling horizontally into the Niobrara or are hey tapping into Codell Sands?
-Charles Dusek cgdusek@gmail.com
Lisa said:
Sorry, I think I had better not say yet.
Pat said:Do you mind sharing the names of the companies who made those offers?
Lisa Zieman said:I’m in Arapahoe County, so quite a bit south of Weld County where the big money should be. My neighbors and I (we own a combined section) have been hounded the last few months by a couple of companies. Our current offers are $500/18.75%/3 year term and $450/20%/3 year term. I would expect these offers to climb as these two companies compete. These companies understand that we will not sign the standard contract. The neighborhood we border (1/2 section), settled for a mere $175 an acre, and I believe 12.5% (just a month or so ago). And, they settled for the standard contract. They however think they made out like bandits, as they were initially offered $20 per acre. There’s something to be said for playing hard to get! I would personally say that $200 in Weld County is a terrible offer.
I’ve tried to stay out of the negotiations, so I don’t know many of the details yet. I know at least 2 of the companies said they would horizontally drill, and judging by the excitement, I’d say they are going after Niobrara.
Charles Dusek said:
Are the companies saying which formation they are targeting? Are they planning on drilling horizontally into the Niobrara or are hey tapping into Codell Sands?
-Charles Dusek
cgdusek@gmail.com
Lisa said:Sorry, I think I had better not say yet.
Pat said:Do you mind sharing the names of the companies who made those offers?
Lisa Zieman said:I’m in Arapahoe County, so quite a bit south of Weld County where the big money should be. My neighbors and I (we own a combined section) have been hounded the last few months by a couple of companies. Our current offers are $500/18.75%/3 year term and $450/20%/3 year term. I would expect these offers to climb as these two companies compete. These companies understand that we will not sign the standard contract. The neighborhood we border (1/2 section), settled for a mere $175 an acre, and I believe 12.5% (just a month or so ago). And, they settled for the standard contract. They however think they made out like bandits, as they were initially offered $20 per acre. There’s something to be said for playing hard to get! I would personally say that $200 in Weld County is a terrible offer.
It’s no secret who’s leasing and you can see it online with the county. The permits are mostly vertical j-sand from what I saw, but you can see that online also.
In Arapahoe County, I have offers in hand from Transcontinent Oil, Samuel Gary Jr. & Associates, Upstream Innovations, and Pride Oil & Gas. I don’t know what formation they are targeting, I do know we sit over the Chalice Field.
Does anyone know anything about Petroleum Development Corporation or Swanson Production Company?
Tim Metz said:
It’s no secret who’s leasing and you can see it online with the county. The permits are mostly vertical j-sand from what I saw, but you can see that online also.
Among other things, PDC is co-applicant with Swanson Production on an application for eleven (11) 640-acre drilling and spacing units that was approved on the Colorado Oil & Gas Conservation Commission’s consent agenda last week. One of the Commissioners noted that the 640’s were now really 320’s – (presumably either because the application was being approved for two wells for each unit, or the spacing had been reduced during a pre-approval process. Wells Petroleum has been securing leases for Swanson in Weld & Morgan counties. It appears that the primary operator will be Petroleum Development Corp. FYI, I’m doing some work for mineral owners on the acreage included in the application/commission order.
Mike Elliott melliott@elliott-legal.com
Michael, could you give me an idea what a good price per net acre for several 320 acre parcels in T8R61? Who would be the best company to invite to make an offer?
Michael Elliott said:
Among other things, PDC is co-applicant with Swanson Production on an application for eleven (11) 640-acre drilling and spacing units that was approved on the Colorado Oil & Gas Conservation Commission’s consent agenda last week. One of the Commissioners noted that the 640’s were now really 320’s – (presumably either because the application was being approved for two wells for each unit, or the spacing had been reduced during a pre-approval process. Wells Petroleum has been securing leases for Swanson in Weld & Morgan counties. It appears that the primary operator will be Petroleum Development Corp. FYI, I’m doing some work for mineral owners on the acreage included in the application/commission order.
Mike Elliott
melliott@elliott-legal.com
Thank you for your prompt reply Mr. Elliott. Are you OK with the 640 acre approved units? Also what is the going rate for the leases bought within the proposed unit areas?
Michael Elliott said:
Among other things, PDC is co-applicant with Swanson Production on an application for eleven (11) 640-acre drilling and spacing units that was approved on the Colorado Oil & Gas Conservation Commission’s consent agenda last week. One of the Commissioners noted that the 640’s were now really 320’s – (presumably either because the application was being approved for two wells for each unit, or the spacing had been reduced during a pre-approval process. Wells Petroleum has been securing leases for Swanson in Weld & Morgan counties. It appears that the primary operator will be Petroleum Development Corp. FYI, I’m doing some work for mineral owners on the acreage included in the application/commission order.
Mike Elliott
melliott@elliott-legal.com
Did anybody see the results that were just released of the lease auction in Wyoming? It was huge. Some acreage went for as much as $3600 per acre–on unproven land. With that kind of excitment, it makes me think that the current offers in NE Colorado should go up if people hold out. At this point we know $850 is very attainable, but I think it could go quite a bit higher–maybe $1000 or more. Does anybody have a really good map of the niobrara play? Do they think it covers most of NE Colorado?
I just got an offer for $300 per acre, 5 year lease witha 3 year option and a 3/16th share. It looks like it is pretty low. I am in township 10 north 62 west.
I would agree that’s low. If you don’t rush to sign, you’ll probably get many more offers, and they’ll keep climbing. The 5 year term is bad too.
scott gray said:
I just got an offer for $300 per acre, 5 year lease witha 3 year option and a 3/16th share. It looks like it is pretty low. I am in township 10 north 62 west.
Would you be interested in representing another mineral/leasehold owner subject to the units just approved?
Michael Elliott said:
Among other things, PDC is co-applicant with Swanson Production on an application for eleven (11) 640-acre drilling and spacing units that was approved on the Colorado Oil & Gas Conservation Commission’s consent agenda last week. One of the Commissioners noted that the 640’s were now really 320’s – (presumably either because the application was being approved for two wells for each unit, or the spacing had been reduced during a pre-approval process. Wells Petroleum has been securing leases for Swanson in Weld & Morgan counties. It appears that the primary operator will be Petroleum Development Corp. FYI, I’m doing some work for mineral owners on the acreage included in the application/commission order.
Mike Elliott
melliott@elliott-legal.com