Ralph:
Normally, a spacing unit is either 640 or 1280 acres. In ND, majority of wells are drilled on a 1280 spacing unit. The sections which border MT are smaller in size and carry a 640 acre spacing. Multiple wells pads are utilized on some spacing units and some have four and possibly even more but not for sure.
So within 600 acres of the well ? How do they determine the direction or do they just pay for all spacing units ?
mlh:
Everyone who holds minerals within the spacing unit (which is usually 1280 for horizonal wells) will be paid a royalty based on the terms of the lease. These wells may be drilled approx. 9500’ verical and 9500’ horizonal. There could also be more than one well drilled on a pad but the horizonal legs will remain in the spacing unit and boundaries as set in the permit issued by the NDIC. Directions for multiple wells most likely determined by the operator based on results of possible seismic tests in the area.
YES PLEASE SHARE !!!
mlh, ty for that link. I see many possibilities, not all bad. If it became more expensive to import, the US might start manufacturing again, instead of importing so much. Jobs.
If they fract a well what is the distance from that well they would have to pay royalities to ? Example : If Nester was fracted and I owed the minerals in the next section would they have to pay me a royality ? What is the distance amount that they have to pay royalities from a well ?
Joel and mlh:
I was not aware that we were talking about a verical well as my brain automatically thinks horizontal. I would say that the royalties would be paid to the mineral owners in the spacing unit. When the applications are made for permits, boundaries are also set in the permit whereas infringement on another section would not occur.
Is there any way to view the permits ?
mlh:
If you are referring to permits issued in ND, you can go to the NDIC website; click on “Daily Activity Reports” and it will list the permits along with other pertinent information. The only problem is, you will have to know the month and preferably the day the permit was issued as this is done on a daily basis. If you are unsure about the month/day, you will either have to look back over past Daily Activity Reports or call/email the NDIC and see if they will assisst you.
What is exactly is a third party and a cost free royalty
And the difference in a renewal and the term of the lease ?
How does a matching bonus work ?
Joel/mlh:
I am not aware of any 2 year leases, not to say there are none out there, but when I renegotiate a new lease, it will be for 20% royalty and a three year lease term with no extension clause. Bonus/acre is still unknown since the lease will not expire until July/Sept. of 2012. My minerals are in T157N;R103W in two sections with one section currently permitted by Marathon. I am prepared for a top lease offer, possibly in February/March, so I am studying the bonus amounts for my area at the current time.
Joel:
Sounds like they closed and remediated the area where a well existed. This does not mean that additional wells will not be drilled in the spacing unit.
How big is a spacing unit and how many wells per unit?
mlh:
Again, this is just hearsay with no concrete information. Since my lease does not expire until July and Sept., my real homework will begin in February/March as some additional wells will be completed and good wells around the area is what drives these figures upward. The majority of my minerals are located in Roosevelt County Mt., just across the ND border and that area is just now getting somewhat active and those leases will be expiring in early 2013. As I stated in an earlier post, I hope that when individuals sign new leases, they will inform all of us about the bonus amounts so we can get an idea about what is being paid.
I don’t know anything about big island except l have a piece of it 
Great !! Thank you so very much !
That depends on who is the third party do you a different landman than Empire but the same oil company like Whiting ? You need to be care with landman. I hold out for better offers. The good thing is now you may start to get landman to compete which is very good for you !
Good point ! Ask 25% 2 year no renewal ?
Unless you have oil close to you it may be very hard to get 2 years with the shortage of rigs, inclement weather, lack of Pipeline(thanks to Obama) so I would consider 3 years, but ask for a matching bonus so they will consider drilling before they pay ANOTHER $650 or whatever to you…it all depends on what they have paid others in your spacing unit and what their terms are also. If a bunch have 5 year leases, they would be happy to pay a minority like yourself some extra money for an extension!!