My mother apparently inherited the mineral rights of 2 parcels, NWSE 24-149-12 in McKenzie County, and SESE 12-153-104 in Williams County. I am told both parcels are 164 acres each and I believe she inherited all the mineral rights for both parcels. How can I confirm this? Isn't this called her net mineral acres? Can anyone help me find this information or point me in the right direction.
Once this information is determined, would my next step be to begin work on negotiating a lease?
If you don't have record of recent use of the mineral rights by lease or otherwise within the last 20 years I would get a statement of claim filed in McKenzie and Williams counties. Other than that I suggest you look at the last thread you posted for more information about the wells you already have. You could find the other thread on the home page of this site by drilling back in time of the posts. Even easier would be to go to your home page. Good luck to you.
I checked into 12-153-104 and found: a) Although there are no active wells in Section 12, this section is part of a 1280 acre spacing unit with 1-153-104...and there is a well called Moore 5304 13-1H in section 1 with horiztonal well that goes into section 12. This well became active in Sept. 2011. The operator is shown as Oasis Petroleum North America. b) a search of county records indicates that Diamond Resources has a number of leases, including leases dating to 2004 and 2005 with a Shirley Kelley and Rebecca Kelley. Don't know if either of these individuals are part of your family. If so, looks like there are already leases in place.
There must be a typo for the other parcel...the range couldn't be "12".
Although it may be possible that your mother inherited a full 164 net mineral acres....but I would guess that isn't the case. A quarter section is 164 acres, but since most of the parcels by now have exchanged hands over the generations, it is more likely that your mother holds only a portion of the rights in that quarter section. To determine the NET mineral acres actually owned by your mother, a full title search must be done with the respective county records. This is typically the task of what is called a "landman". All of the oil companies employ such individuals who are responsible for determining the exact nma for each leaseholder.
If I were you , I would start by calling Diamond Resources (for section 12-153-104) to find out if your mother or whomever she inherited the parcel from, already has a lease. If so, they will also know the nma for your mother. If this inheritance was recent, you need to notify Diamond or Oasis of the death and provide any necessary documentation to get your mother into a pay status.
I have dealt with and have leases with Diamond; but no information about Oasis. You can contact Diamond at:701-572-4523. Ask to speak with a land agent/landman.
Note: Once the lease is executed, that lease agreement follows with the heirs. In other words, if the lease was signed before your mother inherited, your mother inherits the terms of the lease as well...she doesn't renegotiate. Further, since there is already a producing well for 12-153-104, the lease is indefinite...doesn't expire until/if the oil company stops all activity on the parcel. If no lease associated to your family is in effect, then yes, enquire with either Diamond or Oasis about getting a lease.
Hope this helps.
It appears that Shirly L Kelley leased 318 acres the east half of section 12, not just a quarter Oct 20 2004. I wonder how long that lease was for? I think it likely that the lease expired before the well was drilled. There were leases with many other companies than Diamond Resources. Knowing Diamond Resources as I do I would do business with someone else or not do business at all.
Thanks for this information, although this name is not a relative. Please explain how a new member can talk off line to another member.
r w kennedy said:
It appears that Shirly L Kelley leased 318 acres the east half of section 12, not just a quarter Oct 20 2004. I wonder how long that lease was for? I think it likely that the lease expired before the well was drilled. There were leases with many other companies than Diamond Resources. Knowing Diamond Resources as I do I would do business with someone else or not do business at all.
Mr. Kelley, you can send a friend request and if the other party accepts you can private message. The easiest way I know to send a friend request is to click on the persons picture or avatar which will take you to their home page and you can click on the little letter/message icon and if you are not already friends it will prompt you to send a friend request. You can also choose to send a short message with the friend request.Bob Kelley said:
Thanks for this information, although this name is not a relative. Please explain how a new member can talk off line to another member.
r w kennedy said:It appears that Shirly L Kelley leased 318 acres the east half of section 12, not just a quarter Oct 20 2004. I wonder how long that lease was for? I think it likely that the lease expired before the well was drilled. There were leases with many other companies than Diamond Resources. Knowing Diamond Resources as I do I would do business with someone else or not do business at all.
Mr Kennedy, thank you again for your assistance. This forum and group has been very helpful. I am sure I will have more questions as I try to move forward.
r w kennedy said:
Mr. Kelley, you can send a friend request and if the other party accepts you can private message. The easiest way I know to send a friend request is to click on the persons picture or avatar which will take you to their home page and you can click on the little letter/message icon and if you are not already friends it will prompt you to send a friend request. You can also choose to send a short message with the friend request.Bob Kelley said:
Thanks for this information, although this name is not a relative. Please explain how a new member can talk off line to another member.
r w kennedy said:It appears that Shirly L Kelley leased 318 acres the east half of section 12, not just a quarter Oct 20 2004. I wonder how long that lease was for? I think it likely that the lease expired before the well was drilled. There were leases with many other companies than Diamond Resources. Knowing Diamond Resources as I do I would do business with someone else or not do business at all.
Mr. Kelley, you are welcome. Site navigation can be difficult, every site does things differently.
FYI - I had no issues dealing with Diamond. I was able to negotiate a fair lease with them no problem. Diamond is a broker and in my case, was negotiating leases on behalf of Continental Resources. Not promoting them...just saying that I had a different experience than Mr. Kennedy.
Thank you Mr Brown for your input.
James Brown said:
FYI - I had no issues dealing with Diamond. I was able to negotiate a fair lease with them no problem. Diamond is a broker and in my case, was negotiating leases on behalf of Continental Resources. Not promoting them...just saying that I had a different experience than Mr. Kennedy.
My experience with Diamond Resources was fraud. My brother executed a lease for Diamond who recorded a memorandum of lease but I would not lease to Diamond for $75 an acre and 1/6th in the flaming hot McKenzie county ND of 2008 with oil selling for more than $130 per barrel, so then Diamond set up an emergency mineral trust claiming that they couldn't find either of us. I am also aware of Diamond being sued because they encouraged a surface owner to try to reclaim the minerals under his surface even after the mineral owner came forward, the case is online. I realize that sometimes you may have to deal with Diamond Resources so I recommend everyone who does, do so only in writing, for your own protection.
James, thank you for the information. What do you show for Rebecca Kelley?
James Brown said:
I checked into 12-153-104 and found: a) Although there are no active wells in Section 12, this section is part of a 1280 acre spacing unit with 1-153-104...and there is a well called Moore 5304 13-1H in section 1 with horiztonal well that goes into section 12. This well became active in Sept. 2011. The operator is shown as Oasis Petroleum North America. b) a search of county records indicates that Diamond Resources has a number of leases, including leases dating to 2004 and 2005 with a Shirley Kelley and Rebecca Kelley. Don't know if either of these individuals are part of your family. If so, looks like there are already leases in place.
There must be a typo for the other parcel...the range couldn't be "12".
Although it may be possible that your mother inherited a full 164 net mineral acres....but I would guess that isn't the case. A quarter section is 164 acres, but since most of the parcels by now have exchanged hands over the generations, it is more likely that your mother holds only a portion of the rights in that quarter section. To determine the NET mineral acres actually owned by your mother, a full title search must be done with the respective county records. This is typically the task of what is called a "landman". All of the oil companies employ such individuals who are responsible for determining the exact nma for each leaseholder.
If I were you , I would start by calling Diamond Resources (for section 12-153-104) to find out if your mother or whomever she inherited the parcel from, already has a lease. If so, they will also know the nma for your mother. If this inheritance was recent, you need to notify Diamond or Oasis of the death and provide any necessary documentation to get your mother into a pay status.
I have dealt with and have leases with Diamond; but no information about Oasis. You can contact Diamond at:701-572-4523. Ask to speak with a land agent/landman.
Note: Once the lease is executed, that lease agreement follows with the heirs. In other words, if the lease was signed before your mother inherited, your mother inherits the terms of the lease as well...she doesn't renegotiate. Further, since there is already a producing well for 12-153-104, the lease is indefinite...doesn't expire until/if the oil company stops all activity on the parcel. If no lease associated to your family is in effect, then yes, enquire with either Diamond or Oasis about getting a lease.
Hope this helps.
Bob, Rebecca leased and the gave an extention so her lease would not expire until 6-29-2013 in Williams. Rebecca does not seem to have leased in Mckenzie county if her area of ownership is the same as yours.