T22 N, R56, Section 7: E 1/2, Sections 8 and 9 - All
Have lease offer for $500 per acre, 1/5th royalty, 3 year term, no pugh clause. Seems awfully low to me but was interested in input from the group. Anyone?
It's fair offer, but Call me before you sign this lease please. Daniel Dayton 303 916-6050
Lou Anne, our Baker Mineral Trust (my wife Diane is Co-trustee) leased 100 mineral acres in T22, R56, Section 14, 22, and 23 for $500 acre, 19% royalty for 3 years with a pugh clause about 18 months ago with Slawson through Zach Wilson of Transcontinent, whom we found easy to work with . October 2012 Slawson was approved by the MT BOGC to drill a horizontal well on section 14 and section 11, the Ramrod 1-14H. According to the Montana Board of Oil and Gas Commission (BGOC) hearings, which I found by Googling NDIC, Slawson as well as Fidelity Exploration and Production seem to be active in drilling or applying for permits to drill on almost every section in T26- R56. Check your sections to make sure they have not included them through spacing for horizontal drilling already. I do not know how many net mineral acres you have, but In my opinion you should hold out for over $1000 an acre and you should insist on a pugh clause in case your eventual lessee drills one of your sections within the three year lease, but not the other section. That way you can still lease the section with no drilling activity at the end of three years. This is based on my brief experience; I am not an expert. If you have enough net acres to warrant the expense, before you finalize a lease you might consult one of the lawyers that some of the experienced mineral owners on this web site have recommended. Good Luck and let us know what you have learned. John rowland