Oil & gas discussion group for those interested in Billings County, ND. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Blanca Peak Energy, LLC is just a bogus front company created by RedSky Land for Chesapeake Energy. They do it like this where they can cheat the mineral owner out of his or her money like they did in Michigan. These same crooked cowards, Adam White, Dan Glashauser, etc, who are supervised by Joe McFerron in Edmond, Oklahoma, are the exact people who cheated hundreds of mineral owners in Michigan out of their rightful money. Here is some information about Michigan:
Comment by Kevin B. Koonce 1 second ago
Blanca Peak Energy, LLC is just a bogus front company created by RedSky Land for Chesapeake Energy. They do it like this where they can cheat the mineral owner out of his or her money like they did in Michigan. These same crooked cowards, Adam White, Dan Glashauser, etc, who are supervised by Joe McFerron in Edmond, Oklahoma, are the exact people who cheated hundreds of mineral owners in Michigan out of their rightful money. Here is some information about Michigan:
http://blogs.forbes.com/christopherhelman/2011/06/10/its-high-time-...
Here is a 92 year old lady that they cheated!
http://ipr.interlochen.org/ipr-news-features/episode/12808
Rick Dawson with RedSky Land thinks he can submit a sworn affidavit to an Emmet County Michigan Circuit Court Judge with complete lies about RedSky Land not working in Michigan, and get away with it. RedSky Land is another Chesapeake Puppet out there creating companies like Silver Lake Energy, LLC and Blanca Peak Energy, LLC in North ...Dakota, to cheat mineral owners. They create these bogus front companies where they can hide behind them. COWARDS. I am curious to see if the judge there has any backbone. I submitted a sworn affidavit there with the truth in it. Something people like Rick Dawson, John Brogan, Joe McFerron and the cowards with Chesapeake know nothing about. Time will tell the story.....
Can anyone offer info about Bull and Bear company in Billings County ND? Township 141, Range 99, section 18,19. How do I know how many acres and what the lease is really worth? How do I know what is fair bonus etc?? thanks for the help
Janine, did they not tell you how many acres they want to lease? I would call that a very bad sign if they did not. If you have an undivided , less than total interest in the minerals, only going back to the beginning and running a title search will tell for sure what you own.
There is alot of drilling around you, not impressive wells, more bread and butter, drilled by Continental Resources. Bull and Bear could be leasing for Continental, in which case they would probably be up front about how much they want to lease or they are looking to lease cheaply for themselves and assign it to Continental for an immediate profit and an overriding royalty on future production. You should ask them who they are leasing for. You should have been contacted by Continental long ago if you have updated contact information / statement of claim on file at the county recorders office.
Don't know anything about a "Bull & Bear Co.". Presumably they are investors looking to acquire leases so they can participate in wells. On the land described 141-99, Sections 18 & 19... It looks like Continental Resources have the bulk of those sections and they had a well permit for the NENW of Sec 18. So before signing any other lease I would certainly contact Continental and see what they would offer in comparison. Good Luck.
Thank you both so much for the info. Apparently this Bull and Bear seen that the probate was up and contacted a couple of the 8 siblings. If I understand it correctly it would be 88 acres with sign bonus of $2000 per acre and 20%. From what we are being told by family and lawyer $2000 bonus is low and should be higher. What do you think?
Janine, I would need to know the exact area and other terms of the lease because the big print may giveth and the small print taketh away. Your royalty could be 10% net after taxes and marketing costs/selling lowball to an affiliate, or conversely, it could say no marketing, post production costs, that nothing will reduce your royalty except state taxes, but fat chance of that!
Another question, so I was able to view the lease sent to my sister. Why would they not approach all of us? Only 3 of the 8 were contacted. That lease says we have 682 acres so I have not idea where she got 11 acres. The lease does not mention the bonus is that something they negotiate then document? This is all so much and so serious I do not want to get taken. this is the only legacy my parents left us and has been in our family for years. I feel this Bull and Bear may be shady for some reason they are out of Dickinson but I do not find alot of info about them
Janine, it's beginning to sound very much like speculation if the rest of you don't receive offers. A small company speculating doesn't want to put all their eggs in one basket and they may not be able to afford to lease all of you. They may just be looking for a "Position" in a well spacing. If they hold the lease they have the right to participate and then the operator makes nothing off those acre so if the operator wants them to assign your leases to operator, they will have to offer the kind of money usual between oil companies, that mineral owners will not see.
The usual assignment I see is cash (no telling how much) and 23% royalty. The ones assigning the lease to the operator keep the royalty difference between what they leased you for and what they get from the operator.
I emailed the guy and asked why we were all not contacted and he states according to the landsman offers were sent to all those listed on the deed in Billings County as of 2013, but I have the deed and we are all listed so maybe what your saying is what is happening. Shady as if they are not making enough already. I really appreciate your advice, thank you. Happy Friday!
Ok, this is the email I received from Bull and Bear. It kinda makes sense but is also clear as mud. Can you tell me in English what he is saying?
"The cost of the well is $9,000,000.00 for a 1,280 gross acre spacing unit (2 sections of land, each comprises of 640 net acres more or less depending if they have lots), now an oil company breaks down each mineral owner and their respective Oil and Gas Leases by Working Interest and Net Revenue Interest:
Now your mothers interest or total net acres is 91 net acres more or less, which in a the 1,280 spacing unit breaks down the total percentage of WI at 7.109375% (91/1280), now the NRI would equal the same. The total price for the share of the 91 net acres in the spacing unit of the $9,000,000 is $639,843.75 (91/1280 x $9,000,000).
Now when you lease at 20%, the family is giving 80% of the NRI to the Lessor, which is me for fronting the payout for the drilling. So the cost to Bull and Bear is $639,843 for drilling and than I carry your family on 20% of the 7.109375% in which you own.
So lets say that the well drills 100,000 bbls of oil in 2 years, this is the amount of income each one could possibly project:
91/1280 = 0.07109375% x 100,000bbls x 0.20% = 1,421 bbls of oil x $85 per bbl of oil = $120,859.37 /8 siblings = $15,107.42 more or less, these first wells are suppose to produce 600,000 bbls in its lifetime, now imagine they drill an additional 7 wells in that unit!
I hope this isn't too much information but its not precise, the cost could be 10,000,000 for the well, etc, depending on the work that is done on the well, etc. "
Janine, you left out the lease bonus.
That said, you don't have to lease, exchanging 80% of your oil from every well drilled in the future for $2,000 per acre. It's called non-consent. You receive a 16% statutory royalty and the other 84% of your oil goes to paying off your part of the well and a 50% of the actual cost of drilling and completing the well penalty. If the well never payed out and recovered the penalty which can only be recovered from production of your minerals, you would owe nothing out of pocket.
You would not get a bonus and only 16% royalty until the well and penalty were paid off but from that point on you would be a working interest/ owner in the well, receiving 100% less the cost of production which can be laughably low. Really you would make more than the operator per barrel because you don't have to pay anyone 20% royalty.
You might want to search NDCC 38-08-08 and remember that you are the owner with 50% actual cost of drilling and completing penalty and not a lessee who would have a 200% penalty, which is the only part of the law that people seem to have trouble with. I have talked about it a few dozen times on the forums, you might search for some of that too. See if possibly 3 times or more money for your oil interests you.
All he said via email about the bonus was that it will be given for the signature. he is sending me the docs but I feel like he is too nice or something is up, too pushy, too eager. I am not quite sure I even understand what your saying. I did ask him if he was contracting for someone else and he did not address that question. Thank you for your explanation. Happy Friday from Minnesota. Balmy 35 degrees today
Good Friday morning to all of you.
I am a mineral interest owner in Billings County and a Petroleum Engineer with 44 years of experience drilling and producing wells all over including the Williston Basin.
The cost to drill is way out of date. Now the wells are drilled for around $6.5 MM.
In my opinion, you do not want to spend your own money on drilling wells. Lease your minerals to someone like me or an operator like Continental Resources or Whiting who is active in the region. I can furnish contacts for both companies.
You should ask for a $2000/net acre bonus for a three year lease at 20% royalty.
Best of luck!
Jerry Anderson
Grandson of Prokop Olienyk and 50% Cossack, 25% Norwegian & 25% German. Better known as the currently most refined meanest SOB in the Valley
well here is the location and the previous post I showed what this Bull and Bear are saying, I was told the bonus should be more like 2500-3500. what do you think? I appreciate the advice currently most refined meanest SOB in the valley. (are you a virgo?) LOL
Township 141N, R99W, 5th PM
Section 18: S1/2, S1/2 // Section 19: Lots 1,2,3,4, E1/2W1/2, E1/2
Township 143N,R99W, 5th PM
Section 34: SW1/4NE1/4, SE1/4NW1/4, E1/2SW1/4
so I notice on this Bull and Bear Resources Inc website they say they are "non operator" what does that mean? The owner of the company is the one emailing me and his name is Justin Studsrud.
Janine, the e-mail boiled down is there is going to be a well. They want to lease acres and participate in the well for the acres they leased.
Janine, consider not being leased. If there is $50k worth of recoverable oil per acre, not hard to imagine, it costs possibly as much as $8k per acre to drill and complete a well, if you don't lease, who gets the lions share of the money? You do.
If you do lease, the operator or Jerome Anderson here gets the lions share of the money. They can't force you to lease in ND, they have to bribe you to it with the signing bonus. They offer a whopping 1% up front for 80% of your oil, does that sound fair to you?
Read the law North Dakota Century Code 38-08-08 to find out who gets the money if you don't lease. Oh never mind, you don't want tripple or more times the money you would get from leasing.
As for the amount of the per acre lease bonus, it's worth whatever you can negotiate.
To negotiate effectively, you need to be able to hit them where they live. They will pay more if you convince them that you know you don't need to lease and that they will only make pocket change from your acres if they don't meet your terms. That means get the family all going in the same direction because the more acreage you control, the more clout you have. You also need to have workable alternatives, like participation, which is expensive or non-consent which costs nothing out of pocket. If you don't study non-consent, it won't work because you won't have confidence, you will believe their um. stretching of the truth, they will talk you out of it and you will lease for low bonus and royalty, and probably be grateful to them for talking you out of 3 X the money, for your own good and out of the goodness of their hearts.
Many people think leasing is safe, from what I have seen it mostly keeps you safe from making very much money.