I was going through some old papers and came across a letter approx. 2 years ago from URSA Resources Group LLC of Houston, TX. It stated: "Ursa Resources Group LLC has applied to the Montanan Board of Oil and Gas Conservation for an order establishing a temporary spacing unit in Richland County, Montana. A copy of the application is attached for your reference. The next regularly-scheduled public hearing will be on Thursday, February 10. 2011, at the offices of the Montana Board of Oil and Gas Conservation, 2535 St. Johns Avenue, Billings, Montana, commencing at 8:00 a.m."
My questions are: What is a temporary spacing unit? I heard nothing additional, should I be monitoring this in someway?
Any information would be appreciated. The area noted in the letter is: Twp. 23 North, Range 60 East, MPM
Section 6: All
Section 7: All
We have mineral acres in Section 6: Lots 1,2,3,4, SE 1/4 NW 1/4. 169 Gross acres/8.5 net mineral acres.
Thanks, Bob
Bob- I looked up those sections on the Montana state site. Section 6 has a vertical well on it that has been producing since early 90's or earlier.
I didn't see any history of horizontal well permits for your area. Good to watch for those. You can always hope to see them.
Here is a link that may help you keep an eye on things.
http://www.bogc.dnrc.mt.gov/WebApps/DataMiner/Wells/Wells.aspx
hope this helps.
Joanne
Thanks Joanne.
How close is that well to our mineral rights?
Bob
Bob--Not knowing exactly where your rights are-I can't tell you. If you go to the link I provided up above you can search using this API number 25083215820000 . The well name is Elvin Reed 1. It is a vertical well that has been producing since 1/31/1986. This vertical well has a depth of 9317 feet. A Bakken formation well could have a depth of 20,000 feet. This well is with Slawson Exploration.
When you go to the state site with the link above-click on the GIS it will open a new window. Find Richland county and keep zooming in until you can see your area. The click the I and it will identify the well and you can get more information. This information is also available at the original site using the API or well name information. I like to see the GIS map as it shows activity around you.
Joanne
I hope this has helped you and not created more confusion!
Thanks, I will give it a go.
Our mineral acres are: Twp. 23 North, Range 60 East
Section 6: Lots 1,2,3,4, SE 1/4 NW 1/4. 169 Gross acres/8.5 net mineral acres.
Horizontal wells in a section of ground..say section 6 all count the same regardless of lot numbers. You have 8.5 net mineral acres in that section period..they all get lumped together in the spacing unit. Spacing units generally go north and south with two sections. So you could get lumped with section seven to the south or 24N-60e section 31 to the north. I see section 31 is mostly under the river. But don't worry they drill under those as well.
So unfortunately your part of a 320 acre section gets watered down in a 640 acre spacing unit. Not every single horizontal well is two sections, but the majority are.
Joanne
Joanne.
Is there any way to know if the well in production has anything to do with our mineral acres. I am very novice at this and the mineral rights were inherited. I do not live in the area. My fear is that we will somehow (however small it is) be overlooked on any production royalties. Who looks out for the mineral rights owners? We negotiated a 5 year lease for the mineral acres this past January. Am I correct in assuming that the leasing company would know if there was any production on the acres prior to the leases being signed? They must research the acres well before negotiations. Just worried about slipping through the cracks. Thanks for listening/reading. Bob
Bob-If it were me -I think I would let Slawson know I was out there. They are used to getting calls from mineral owners. Don't be nervous about calling..they get calls all the time. You didn't say when your lease was up for renewal- Slawson holds this area..HBP held by production. I would ask them if and how it affects your minerals.
I'm no expert, just offering up things I have learned on here.
Joanne
Thanks Joanne for all your advice and information.
Bob
Mr. Ward, sometimes the operator does not know what to expect when the drill so they get a temporary spacing order because the pool for a gas well could be much larger than the pool for an oil well. The operator will apply for a permanent spacing order once they know what kind of well they drilled. Joanne G has been giving you good advice, it certainly couldn't hurt to call the operator, except calluses from holding the phone to your ear. Good luck!