looking for some way to get contact info for those leasing in burke or somewhere to post what we want to lease was sent a lease offer that is way low for what is being paid and wording is beyond criminal in there one sided offer seems the company looking has bought everything around us you would think they would make a good offer to get the last chunk
i could write a book rewriting it
160 acres in 161 91
Our lease, which originated in 2011 (SESW 24-161-91), was sold to Cornerstone in 10/2013. Cornerstone's Andersen B-2413-6191 well went into active status in April 2014. Checks started arriving in May for February and March sales. So far no issues with Cornerstone; they're a small operator but very responsive. A far cry from XTO that's for darn sure.
24 not to far from us cornerstone is on the lease but its not them that made the offer legacy resources don't like dealing with middlemen did you deal with cornerstone personally or did the past lessee slide one by ya and sell to them without getting permission from you
they seem to by getting a very large area here and we are the last ones on the block to lease
good to hear cornerstone is doing good for you the horror stories i have heard and the trouble we have had with those who just moved in thinking they could slide one past us we have been reluctant to even think about it but now we are when you see leases for 700-1200 with 20% starts to get you thinking it would be worth the hassle to try but what legacy is tossing at us is 1/4 that must be trying to pocket a lot themselves plus the wording in the lease is past criminal
with four wells here in the past two plugged one left a mess and one that just needs to be fired up along with it being the last chunk on the block you would think they would have made a better offer
anyone looking to lease is welcome to talk out a deal
5
The original lessee (EOG) sold the lease to Cornerstone. EOG had intended to drill wells themselves, but when it became apparent they weren't in the position to do so, they sold our lease along with 11 others to Cornerstone.
Lostwood, things take time, you may have to sit out a lease cycle. If you are the last unleased block, then lease bonus has been paid on the rest of it and if no drilling occurs, the lessee can kiss that money goodbye. Whatever you do, don't sign a lease for bad terms because while it won't be forever, it will be in effect until your minerals have lost all apparent value, which may as well be for forever. To me, if it took ten years to get a good lease, that would be preferable to a bad lease in the next two years. I suggest patience.
I have enjoyed this discussion. We have a lease that is set to expire in September in 161-91 and I have no idea what to expect this go round. Last time the lease was purcahsed by KDM Petro and I haven't heard a peep yet. Last time the rights were negotiated by an estate trustee and I think that he may have gotten a raw deal. I am hoping for better this time and hopefully by a company serious about drilling. Lostwood, have you really heard of people in the area getting $700 to $1200 per acre?
we have been sitting on it the last ten years knowing the big boom again was on its way hoping for the best
and will not go with a generic "bad terms" attempt they try with most have enough just with all the stunts that have been attempted in the past i could write a book hahahha
sure like to share them with ppl so they can learn from getting/attempting to us a relative to just moving in like they own the place and worse
r w kennedy said:
Lostwood, things take time, you may have to sit out a lease cycle. If you are the last unleased block, then lease bonus has been paid on the rest of it and if no drilling occurs, the lessee can kiss that money goodbye. Whatever you do, don't sign a lease for bad terms because while it won't be forever, it will be in effect until your minerals have lost all apparent value, which may as well be for forever. To me, if it took ten years to get a good lease, that would be preferable to a bad lease in the next two years. I suggest patience.
dont know what happened to the first reply must have hit the wrong button flipped the wrong switch and lost it trying to find the one to message you also
talked to the guy who up till two months ago was doing the work for them and he tried telling me there were none that high i laughed told him i have the page up and it printed out all close were 425 and older one to 950 ooooooooooooooh i guess i did sign some for around that how the tune changes when you have the proof they are not up front right in your hands
years ago we were offered 40 wanted 75 the average at that time with some in the area over 400 so no way we were gonna accept that
hopefully this site is intended for ppl to communicate to get fair share of what is already theirs instead of this what i call outright theft where the owners get very little while the oil companies enjoy record profits in the billions every year
anyone in the area should be talking even tho we kinda like to keep to ourselves here some things should be discussed
Mark Galloway said:
I have enjoyed this discussion. We have a lease that is set to expire in September in 161-91 and I have no idea what to expect this go round. Last time the lease was purcahsed by KDM Petro and I haven't heard a peep yet. Last time the rights were negotiated by an estate trustee and I think that he may have gotten a raw deal. I am hoping for better this time and hopefully by a company serious about drilling. Lostwood, have you really heard of people in the area getting $700 to $1200 per acre?
It’s funny how things happen. I just got an email from one of the co-owners that said that Legacy Resources is interested in our section. Does anyone have any experience with Legacy in Burke County?
there's interest in that area for a reason they are working for cornerstone natural resources and getting a large area i wouldn't touch the lease they offer tho
Does the lease term start when a contract is signed and recorded with Burke County or does it start once the title results and a check is cut for the lease terms? ie: the title search by the landman or oil company sometimes takes a months or even a year or longer in some cases...... at what point is the lease clock running?
I think the answer to this needs to be considered for the unsigned parties versus the signed parties I would assume. I am a newbie still trying to learn all this mineral stuff.
Get at least a check in hand before you had over an executed lease. The mere promise of future royalty is enough consideration to support a lease in ND even if they never pay you the bonus. At the very lease you need to have a sort of escrow with your bank who will forward your executed lease when the funds reach your account.
BE said:
Does the lease term start when a contract is signed and recorded with Burke County or does it start once the title results and a check is cut for the lease terms? ie: the title search by the landman or oil company sometimes takes a months or even a year or longer in some cases...... at what point is the lease clock running?
I think the answer to this needs to be considered for the unsigned parties versus the signed parties I would assume. I am a newbie still trying to learn all this mineral stuff.
So a signed draft agreeing to lease terms including potential royalties with bonus check in limbo due to title research and recorded with Burke County as to be in a lease agreement with said oil company/operator starts the clock running? ie: Burke county recorded agreement of Oil And Gas Lease between the lessor and lessee in 2005 for 10yrs but title has not been cleared as of 2014........ does that mean there is 1 more year to resolve title for bonus payout or does the 10 year term not start until title is resolved? and the recording in Burke county really is just a facade to say "hey don't come knocking here"? ........ this is quite the exaggeration but your last response didn't help me resolve what I was wondering r w.
I was recently involved in a case where this issue came up and the lessee claimed that the lease was valid and binding the instant it was executed, recording had nothing to do with it.
The law does not require that leases be recorded. BE, in the situation you described, I don't think you will ever be paid unless a profitable well is drilled within the timeframe of the lease.
You might look up Bakken Exploration, a company that the Attorney General kicked out of ND because they were leasing and not paying bonuses until profitable wells were drilled and claiming that the reason for not paying bonuses were because of the time it took to approve title.
In your place I would have recorded a statement of non-payment years ago, clouding the lessee's title to your minerals.
It does not take 9 years to approve or reject title.
They don't ever have to pay you the bonus unless you sue them. I hope this helps.
This does help r w, thanks. Back to the original question posed for this thread… 1. I know Petro Harvester using Diamond Resources as the landman is heavily saturated in Burke Co.
I see in 2014 there is a smaller company called Salaidia(sp?) taking acquisition of Empire Oil and Williston Hunter leases and equipment.
I have read other posts in this same forum that Continental using Diamond Resources as landman has also been doing leases in Burke.
I think I depends on where the competitor oil company thinks they can drill and not pool into the competitors on who would be interested or not in leasing you.
Just because an operator can't get a majority in a spacing and drill a well does not mean they would not like to participate for acres leased from you in some other operators well. Operators have gross wells that they may or may not be the operator of and net wells, adding up all the small percentages of wells they have a part of to add up to a full well. The base criteria of whether or not a company wants to lease you is it enough acres to be worth their time and will they make money. Also, could they assign your interest to the well operator at a profit.