I read last night that ND is under pressure for flaring by the EPA, they plan 4 or 5 gas processing plants. Does this mean I should pay more attention to the gas clauses in my 3 yr lease, if so, please advise some clauses.
I do not want to get to anal on my lease so that no one wants to develop my land.
Joel:
I am not really concerned about the EPA's views on the flaring activity as this will be worked out between them and the industry. I think on the mineral owners end, it should be business as usual. My main concern with the EPA is the fracking issue which will beging to heat up this year and could eventually effect all of us.
Joel, natural gas is a very small part of my checks, It's 0 if they flare it. I don't see anything on the horizon that is going to make the price of natural gas rise dramatically for the mineral owner. I expect the retail price to keep rising because that is the nature of things. I wish the US was at the forefront of Gas To Liquid fuel using natural gas as a feedstock. I think it would create more demand for natural gas and could make us energy independent. I personally don't see it happening for the next 20 years, possibly not in my lifetime. I'd like to be wrong about that.
Joel, the well I receive checks for is tied up in litigation, and this is the first year that I have been receiving checks for it. I will let you know when I receive something. Interesting thing. My brother is a carried interest in this well and he received checks before a division order, then a division order, then a month after that I received a division order and after another month the checks started for me. I signed a lease in 2010 on this well but was never paid the bonus, was never informed that we had a deal, the draft had expired before they recorded the lease, I only found that my lease had been recorded while looking for something else. I am kind of down on leaseing. My brother signed a lease for a different well and we have to sue on that as he was never paid. I signed two leases and I had to threaten to sue to get one lease released, and am sueing the other lessee because they never paid. So far lease equals haveing to sue for me. My brother was paid promptly from his carried well, and we were advised that we would be promptly paid on our new carried wells. I leased some property in TX and they hand delivered a check. MY only leasing problems have been in ND. I'm not going to lease in ND ever again period. No matter how much they offer, if you have to sue, it isn't worth it.
my understanding is that as well as the flare gas there is also lp gas that is collected and separated downline, there are provisions in some leases for surface owners who own mineral percentages to use flare gas and or be supplied with a line for free gas..those terms need to be in the lease.
oh yes, for now north dakota requires that if after one year of production flare gas is not captured and used or repumped into the ground the well production must be shut down. I would not worry about that issue and as charles says more importantly it is the fracking issue coming into debate that could have a more serious effect. The chemicals that are being objected to in fracking fluids are petro based materials and although less objective fluids are being now used they are only having, at least in the bakken and three forks plays, to use them during extremely cold weather. We have as you know this winter unseasonably warm weather, warm enough in fact to continue drilling, and also dry fields which last year were such a detriment to getting the rigs into the field and going on time with all the excess moisture in the fields. I would say that at least for now we wont see any slow down in horizontals and fracking.
Another aside on natural gas... the gas can be sold at whatever prevailing price the market offers, and although there is a breakeven point at which a shut in occurs, it is also true that gas sales can only be implemented via a gas processing infrastructure sufficient enough to handle the output that is being produced. There are two natural gas processing plants in construction due to be completed by the end of 2012 in western north dakota and I would suspect that we will see natural gas use on the increase as well.
R W...
im not familiar with your particular legal situation, however been very unhappy so see the situations you describe in your posts. of particular interest is how the recording date affected what may or may not have been due on the lease. i cant help but read this article about the shell corporations defaulting on mineral leases in the eastern shale gas plays. It is there that they are actually having problems..at least with fluids used in the past and under different conditions than the bakken play in nd. but earlier while reading this article i had thought no. not in north dakota.., but now im not so sure..private message me if you would like, i do have some legal education and experience, but simply aghast at the sheer numbers of leasing problems you are having i am hoping if there is some way that i can help you.
r w kennedy said:
Joel, the well I receive checks for is tied up in litigation, and this is the first year that I have been receiving checks for it. I will let you know when I receive something. Interesting thing. My brother is a carried interest in this well and he received checks before a division order, then a division order, then a month after that I received a division order and after another month the checks started for me. I signed a lease in 2010 on this well but was never paid the bonus, was never informed that we had a deal, the draft had expired before they recorded the lease, I only found that my lease had been recorded while looking for something else. I am kind of down on leaseing. My brother signed a lease for a different well and we have to sue on that as he was never paid. I signed two leases and I had to threaten to sue to get one lease released, and am sueing the other lessee because they never paid. So far lease equals haveing to sue for me. My brother was paid promptly from his carried well, and we were advised that we would be promptly paid on our new carried wells. I leased some property in TX and they hand delivered a check. MY only leasing problems have been in ND. I'm not going to lease in ND ever again period. No matter how much they offer, if you have to sue, it isn't worth it.
Joel, is this the keystone pipeline, meant to go through the US? or XL refers to something else? Lori.
"especially if US drags it's feet on XL."
Joel said:
Guys:
Thanks I will not worry about gas then on my leases. FYI Canada is looking to liquify, pipe to BC and then sell to Asia there. A small problem with some BC natives but a few kickbacks, put them up another casino, and another rise in the unemployment rate up here and it is a done deal, especially if US drags it's feet on XL. Canadian oil and gas will go west to the
BC coast and they are already rebuilding a harbour. We could compete with the Austrailians in liquified in about 5 yrs, so saeth the National Post. Almost all government vehicles will be on propane in 5 yrs, for the cost, not the emissions and most Toronto, Vancouver cabs are converting.
r w kennedy said:Joel, natural gas is a very small part of my checks, It's 0 if they flare it. I don't see anything on the horizon that is going to make the price of natural gas rise dramatically for the mineral owner. I expect the retail price to keep rising because that is the nature of things. I wish the US was at the forefront of Gas To Liquid fuel using natural gas as a feedstock. I think it would create more demand for natural gas and could make us energy independent. I personally don't see it happening for the next 20 years, possibly not in my lifetime. I'd like to be wrong about that.
Wow. What oil company was this? I'm over the boarder, and would like to avoid them if possible.
"I'm not going to lease in ND ever again period. No matter how much they offer, if you have to sue, it isn't worth it."
r w kennedy said:
Joel, the well I receive checks for is tied up in litigation, and this is the first year that I have been receiving checks for it. I will let you know when I receive something. Interesting thing. My brother is a carried interest in this well and he received checks before a division order, then a division order, then a month after that I received a division order and after another month the checks started for me. I signed a lease in 2010 on this well but was never paid the bonus, was never informed that we had a deal, the draft had expired before they recorded the lease, I only found that my lease had been recorded while looking for something else. I am kind of down on leaseing. My brother signed a lease for a different well and we have to sue on that as he was never paid. I signed two leases and I had to threaten to sue to get one lease released, and am sueing the other lessee because they never paid. So far lease equals haveing to sue for me. My brother was paid promptly from his carried well, and we were advised that we would be promptly paid on our new carried wells. I leased some property in TX and they hand delivered a check. MY only leasing problems have been in ND. I'm not going to lease in ND ever again period. No matter how much they offer, if you have to sue, it isn't worth it.
Zeb, a company has a limited time to accept a lease. If a company does not pay or bind themselves to a lease before the time period set forth in the draft, the deal has expired. If after that time period they wish to go forward, they need your agreement again, a ratification or they could send you a check and if you cash it, it would be defacto ratification. If they attempt to bind themselves to a deal/offer that has already expired, they are trying to breathe life into a dead horse. It has to be that way or the lessee could fail to pay you and use your initial agreement as a perpetual option without limit.
Sending a friend request Lori.