So it appears that it is not advantagous to be the only hold out, it sounds like the majority lease holder is basically holding all the cards at this point, did I read that correctly?
That should have been no risk penalty for mineral owners in my comment below.
I whole heartedly endorse reading the force pooling laws, take nobody’s word for it, not even mine.
Big D, yes. The larger your net acreage the more leverage you hold. Though when an area is really hot the last 10 net acres can be as valuable as the first 630. Or, alternately sometimes the last 10 can get a slight premium just because a company wants to ‘wrap it up’. Yet typically size counts for far more than being the last to sign. Theoretically, once the company holds leases on 51% of a tract they don’t “need” your minerals. However, they’ll still “want” them.
That must be an earlier signing. We were recently offered $325 an acre bonus for the first five years and 1/6 royalty.
Is anyone who signed a lease with Shale in Daniel’s Cty. willing to say what they are getting?
OK another question that I cannot find the answer for, so here goes…
Because the oil companies are doing horizontal drilling I am wondering what the size around the well site is included in leasing?
The spacing or drilling or well unit is typically 1280 acres or two sections. They drill in one corner of one section diagonally to the far corner of the second section. All mineral rights owners in those two sections get their split or share. If they discovery a lot of oil they may do other drillings in different directions and at different depths.
Apache has announced a significant position in Daniel’s County. Check out the image attached in the discussion above
I found this discussion last night and read until nearly 4:00 a.m. this morning because I found it so interesting. In 1986, when my aunt passed away, my sister, eleven cousins and myself became owners of mineral rights in Daniels County. I think is a couple thousand land acres. Over the past 26 years we’ve gotten small leases (and by small…I mean SMALL) and nothing has ever come of it. A year and a half ago, Nextraction Energy came into our lives promising they were going to drill by April 15th of 2011 etc, etc. We each received a check for around $700 with visions of more to come. Last summer…Nextraction fizzled. We’re all so ridiculously naive about this…we all just shrugged our shoulders and said “oh well”…nothing again. Then early last fall, Shale Exploration popped up with a large lease. We got all excited again and the day the lease was to be funded, I spoke to our landman and he said opps…“you folks don’t have title to those minerals…sorry”. Right behind that was another lease that did pay off in February of this year. Then two more leases along with a form combining the two…and I think you get the picture. We all feel like yoyo’s. We’re “supposed” to get funded for the two leases by the end of July but who knows. None of us knew you could negotiate the leases for better terms thus we (I) feel like dummies after reading these posts and realizing if we hadn’t jumped so fast, we could have gotten better deals. Shale has made lots of promises, but it seems to us that the right hand doesn’t know what the left hand is doing with some of their people giving conflicting information regarding the same things. I can’t find where they’ve gotten any permits other than the four that appear to be on state land.
Not sure what I hope to learn…but I feel like maybe we got had and didn’t even get kissed if you know what I mean.
And Ted Rothstein…are you a Shale employee? Sounds like it. I really find it difficult to buy that you flew to Scobey…stayed a week and just happened on the two owners who spent time with you, bought you dinner and gave you their cell phone numbers when you say you haven’t even signed with them. Sorry!!
No…I have not signed with Shale Exploration yet and no, I do not work for Shale Exploration. That’s kind of funny, given how little I feel like I know, now. I did fly out there because I too got really excited about all this. The two owners were there then and I asked and people there said that was them and that they come often. Both owners, Sam Tallis and Sid Greehey, appeared to be legitimate and upstanding guys who care about that community and what they do. Maybe they are all not telling the truth, I don’t know, but I am a pretty good judge of character and I think they are legit. I just looked at this whole thing as trying to find the best company to sign with because it all appeared to me just as you say. There were many people telling me many different things all with the hope of making alot of money off the minerals that I inherited. Just when I thought I had it figured out, a whole other level of information on units and pooling came up and I still feel lost on most of it. However, I still feel confident on one thing. Of the companies that I have heard about and that have solicited me, Shale with Apache is the most legitimate outfit trying to drill for oil in Daniels County at this time. There is more evidence backing up Shale and Apache as being legitimate operators than the other companies. That is not to say they are upstanding or whatever; I just think they are the most legitimate trying to drill in Daniels County. I have not signed yet because I want to know everything before I do, but I run the risk of the price dropping if they drill and find nothing, I think. However, I have a job and cannot spend as much time on this as I would like. So, like you, I’m a little lost and taking a leap of faith.
Welcome aboard Bonnie
You are welcome Eastern MT and Bonnie… “very exciting” indeed… I believe the ones listed for “shale” are non producing but active. so if you look into it, these are some of their leases tying up people for ten years… 2006 to 2012 and still in “active status” One could guess that 27 leases in 2006 and 17 in 2009 probably will be dealt with first before their most recent push to lease minerals… ie 2006 plus 5 plus five and maby throw in a 365 day decision to re-lease could result before termination: a span into 2017 or 2018… Hmmmmmmm “exciting for who??”
Bonnie I found some interesting stuff…
Brian, Nice find! Thanks.
A very useful link providing an easy research tool into whom holds State leases. Folks you may want to use this when seeking possible competitive bids on leasing your minerals. At the least you can learn who has leased near you with their names, addresses, and tel. phone listed!
Thanks Brian. Very interesting site. I’m presuming these are leases on all wells currently in production? Heard from our landman today…guess Shale Exploration is buying our leases from Nextraction. He says this is “very exciting”. But I’m wondering…for who?
Another issue…apparently I (and our other inheritors) have mineral rights in a well in Sheridan County. For 25 years…we didn’t know those rights existed. Last year we started getting “piddly” checks every couple of months ($25 to $40). The name of the oil company is Redstone Oil and is run by a man called Bob Spoklie. I’ve called three times to get a copy of that lease and I can’t get him to call me back. I know I should get a lawyer, but quite frankly I can’t afford it. How can I find out what was pumped out of that well from 1986 until last year? Any ideas?
Bonnie, info on that site Brian posted is not “wells currently in production”. That is a list of all oil & gas leases from the State of Montana. Those are minerals owned by the State. It does not include leases of privately owned minerals such as yours or ours. Yet it does include all minerals leased by Montana, some of which are producing and some which may have never been drilled. Montana leased them for a ten year term with 1/6th royalty.
Regarding your producing minerals in Sheridan County; A copy of that lease must be on file in the Plentywood courthouse. The challenge is finding it. To do so you’ll need at least one of the following:
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The legal description of the minerals (township, range, and section).
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Name of the Lessor (your ancestor who signed)
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Name of Lessee (Redstone or their predecessor).
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An apx. year on the lease would be helpful too (1978 or 2005).
If you know the well name, or legal description, you see a record of all past production. You won’t know how much it sold for, but you’ll see how much oil and gas has been produced. This will give you an idea if those “piddly” checks are correct. This info is online at Montana’s website www.BOGC.DNRC.MT.Gov Take a look. Redstone may owe you for past production too, if that well (wells?) has produced for many years. Good Luck.
P.S. Presumably Shale Exp. is buying your lease for Apache Corp.
Wow…Eastern MT…you are so informed. Thanks a million. I’ll call the Plentywood courthouse tomorrow and see what I can find out. My uncle was a Montana State Senator and I’m sure he must have been the one to sign the lease. Thanks again.
Never posted here but watched. We leased in Daniels to Harvey Minerals and I see them on website. Shale now calls me and Shale buys my lease from Harvey Minerals. I guess they drill expiring lease first, but Apache big company for many wells?