Pooling by other oil company

North Dakota Mineral Rights Divide County, ND
1

My family owns land/minerals in Sioux Trail Township, specifically Section 27. We have been recently contacted by North Plains Energy regarding access for staking the first well. My question is how one oil company can have a lease and another oil company (in this case - Hunt Oil) have the pooling interested in the same section or spacing unit?

Recently the following notice was posted:

Case No. 20193: Application of Hunt Oil Co. for an order pursuant to NDAC § 43-02-03-
88.1 pooling all interests in a spacing unit described as Sections 27 and 34,
T.160N., R.101W., Fertile Valley and/or Smoky Butte-Bakken Pools,
Divide County, ND, as provided by NDCC § 38-08-08 and such other relief
as is appropriate.
Is this fairly typical? My family is curious. Also they are just considering one well at this time, and not two (Bakken & Three Forks). Recent wells in Sioux Trail have been 2 wells per pad targeting the two formations. We are excited about the first well, but 2 would be better! Thanks for your anticipated responses.
2

Don,

You may be getting a contact as the surface owner for surface access to drill. See if North Plains has a permit application to test a formation other than the Hunt designated pools. I hope NP isn't just drilling shallow well to hold acreage. Take heart, the deeper zones will be drilled sooner or later.

1 Like
3

This is typical. There can be hundreds of mineral owners in a section (or in ND maybe two sections) which one well will pool. Different companies can lease those owners. The companies with the most leasehold will then jockey for position as the operator. Usually, whichever one has the most acreage will win and sometimes not if another company is assigned as the operator.