Good Morning,
I have 160 acres mineral rights T157 R103 S15 and my lease expires in March 2013. I am not sure exactly what HBP (held by production) means. If the company hasn't done anything by the expiration date, I know I can shop around for a new lease deal. Right? What does the company need to have done to be considered HBP, and how long can that last? In reading through my lease, it looks like they have 180 days. IF they have spudded (whatever that means) does that mean I just wait for royalties or do they have to pay to re-lease the property. My great-grandparents were the original homesteaders from Norway, and I inherited the land from my Dad who died in 1986. Sure wish I could ask his advice!! Thanks!
Deb
held by production - when oil and/or gas is produced the lease stays in force as long as the well(s) produces. If there is production you get the royalty percentage stated in the lease form ( 1/8th, 3/16ths etc).
spudded means drilling - drill bit in the dirt - has started.
The continuing operations clause does not just cover the drilling of the well. Building a road, pad for the well, drilling a water well, excavating a pit and so forth are continuing operations, even if the caterpillar shows up on the last day of your lease it is continuing operations. Continuing operations can extend your lease far into the future unless there is a stoppage of more than 180 days at any time
Deborah:
I will predict that you will be drilled on prior to the lease expiration as the companies in this area have a tendency to drill near the expiration date. I will guess that either Marathon, Oasis or G-3 has the lease hold on that area. Your Section 15 is spaced with Section 22 and Oasis has a lateral in Section 27 just below Section 22. Marathon has drilled several well just to the West of your acreage and one of those wells was drilled on my mineral area. They waited until less than 6 weeks prior to the expiration date to move in the rig. Triangle Petroleum has been top leasing some acreage in this area on the expiring leases.
Debora,
We may be distantly related! my siblings and I have mineral right in Williams county, T157N R102W. We are originally from Williston (Hanks/Zahl) with farming relatives that use the Hought name. Did you know that Hought derived from Haug? My wife does extensive research on both of our family trees and discovered this. Just a little tidbit of info.
Spencer and Mary Oland
Benton City, WA 99320
Charles, I thought I'd replied to you post, but it looks like all I did was repost!! Duh, I hope this message finds it's way to you! Thanks for the info. You have given me more than I can find on the NDIC site. The leaseholder is G-3 and I do know that they had an NDIC hearing on May 31st. I will keep in touch. Thank you again for your insight. You sound VERY knowledgable. Deb
charles s mallory said:
Deborah:
I will predict that you will be drilled on prior to the lease expiration as the companies in this area have a tendency to drill near the expiration date. I will guess that either Marathon, Oasis or G-3 has the lease hold on that area. Your Section 15 is spaced with Section 22 and Oasis has a lateral in Section 27 just below Section 22. Marathon has drilled several well just to the West of your acreage and one of those wells was drilled on my mineral area. They waited until less than 6 weeks prior to the expiration date to move in the rig. Triangle Petroleum has been top leasing some acreage in this area on the expiring leases.
Debrorah:
I believe that G-3 has recently sold to Halcon Resources according to an article that I read in April of 2012. I don't have any current info on the matter but if they did sell, the only thing you would notice would be a name change. Again, keep abreast of this matter as I will predict that there is a good possibility that drilling will occur prior to the lease expiration.
Deborah Haug said:
Charles, I thought I'd replied to you post, but it looks like all I did was repost!! Duh, I hope this message finds it's way to you! Thanks for the info. You have given me more than I can find on the NDIC site. The leaseholder is G-3 and I do know that they had an NDIC hearing on May 31st. I will keep in touch. Thank you again for your insight. You sound VERY knowledgable. Deb
charles s mallory said:
Deborah:
I will predict that you will be drilled on prior to the lease expiration as the companies in this area have a tendency to drill near the expiration date. I will guess that either Marathon, Oasis or G-3 has the lease hold on that area. Your Section 15 is spaced with Section 22 and Oasis has a lateral in Section 27 just below Section 22. Marathon has drilled several well just to the West of your acreage and one of those wells was drilled on my mineral area. They waited until less than 6 weeks prior to the expiration date to move in the rig. Triangle Petroleum has been top leasing some acreage in this area on the expiring leases.