Williams and Burke County, ND

My brothers and I have clear title to mineral rights in Williams County just north of Williston, ND, original owner was our uncle, who died in 1976. We were contacted by landsmen last April, one was quite persistent; shortly after that time, we discovered the original mineral rights deed in a strongbox. After consulting an attorney, we decided not to lease at this time and to wait until an oil company recoups their drilling costs and then participate.

I have several concerns:

1. Because we chose not to lease at this time, does that in any way affect the interested oil company's decision to drill on our sections? When contacted by one particular landsman, we were told that the interested oil co. wanted to begin drilling immediately and we have not heard anything for 6 months. Does anyone in this discussion group have mineral rights near T 156, Rg 101, Sects 28 and 29?

2. We also discovered mineral rights in Burke County, which we also probated and received clear title from a deceased aunt. When we discovered mineral lease checks under my aunt's name in ND unclaimed property dating back to 1986, we contacted the administrator for this property. She informed us the rights were transferred to someone else one year ago, and that we would need to contact him. He apparently obtained clear title as no one had come forward to claim these rights in Burke County? Is this legal?

I know these are complex questions, but anyone who could help shed some light would be greatly appreciated. We really don't want to pay an attorney to fight this person in Burke County, but what would the alternative be?

Renee

I think you should contact Mike Maus…a lawyer in Dickinson who does alot of oil lease work. He is in the Dickinson phone book. He did a great job for some freinds of mine who leased their land near Lefor ND. I have an opinion as to leasing while things are hot in the Baaken…world events are all good for good lease rates now. If Hydraulic fracturing get bashed by the government EPA…well then I do not know what will occur. The saying I learned is pigs get fat…hogs get slaughtered. If you want to call me I am at 605-390-2865. My mother leased her minerals by Dickinson one year ago at what now seems lower then areas fifteen miles away but she will be closer in time to a well…but of course that may not happen at all. A good freind of the family told me a lease check beats a dry hole!

Yes; the surface owner can legally claim [abandoned] minerals. Look at N.D. Century code 38-18.1.

Pat:

My opinion (from question 1) is that it should not be a determining factor as to drill or not drill. This area is showing evidence of growing activity and there should be some Confidential Wells coming off the confidential list in the next few months that could make this area even more attracitve for drilling. We have mineral in Williams County ( T 157;R103;Sections 29 and 31) which are currently under lease and was spaced last year.


Charles,

Thank you so much for that information! So many folks told us to lease, but Dickinson attorney advised to wait until oil co recoups their drilling expenses, then participate. Sounds like you are right next door to ours; good luck with everything. We are hoping we can reap something before all of us are too old to enjoy.

Pat
charles s mallory said:

Pat:

My opinion (from question 1) is that it should not be a determining factor as to drill or not drill. This area is showing evidence of growing activity and there should be some Confidential Wells coming off the confidential list in the next few months that could make this area even more attracitve for drilling. We have mineral in Williams County ( T 157;R103;Sections 29 and 31) which are currently under lease and was spaced last year.

Hi Pat: My family and I also have minerals in the same township. Did you file a statement of claim with the county recorder? Please accept my friendship request so we may share information.

DG,

Yes we did; we have clear title through Williams County Recorder's office, got title in July 2010. I just printed off the confidential well list and was floored there are so many explorations going on right next or on our property. It is exciting, but we don't want to expect too much, of course. If I may ask, what is your legal description of your property?

Pat

DG said:

Hi Pat: My family and I also have minerals in the same township. Did you file a statement of claim with the county recorder? Please accept my friendship request so we may share information.

Hi again: I sent you a message concerning the location of my family's mineral interests in Tyrone Township, T.156N., R.101W. Please check your inbox. I'm not sure if you are "Pat" or "Renee" as you signed your initial post.

I have a subscription to the North Dakota Recorders Information Network (NDRIN) and found the "Affidavit of Service" with respect to the Notice of Lapse of Mineral Interest for the minerals your family inherited in Burke County. It's so unfortunate that your family didn't know about these minerals sooner because the Affidavit was filed in July 2009 and production on the horizontal oil well in the spacing unit commenced in October 2009. Perhaps it would be worth your time to travel to the Burke County Recorders Office and review the land records to be satisfied that the minerals were not "used" within the relevant 20 year period and that the surface owner complied with all statutory requirements to claim the minerals. (After all, you noted that you found lease checks in your aunt's name dated in 1986. If it had not yet been 20 years from the time the last lease expired to the date the surface owner first published the notice of lapse in the county newspaper, you might be able to get your minerals back through a quiet title action. Food for thought, but remember, act quickly because he who sleeps on his rights loses them.) Here are links to the most recent cases concerning the subject of abandoned minerals and the surface owner's succession:

http://www.ndcourts.gov/court/opinions/20100256.htm

http://www.ndcourts.gov/court/opinions/20100254.htm

It appears that the surface owner acted to accomplish his/her/their succession to the minerals before the amended statute took effect on August 1, 2009, which would have required a more diligent search to locate the mineral owners. Again, check your inbox.


Pat Maloney said:

DG,

Yes we did; we have clear title through Williams County Recorder's office, got title in July 2010. I just printed off the confidential well list and was floored there are so many explorations going on right next or on our property. It is exciting, but we don't want to expect too much, of course. If I may ask, what is your legal description of your property?

Pat

DG said:

Hi Pat: My family and I also have minerals in the same township. Did you file a statement of claim with the county recorder? Please accept my friendship request so we may share information.

Another case:

http://www.ndcourts.gov/_court/opinions/20100314.htm