So, my family has a mineral lease with Rockall/Petro Harvester whom went bankrupt and then sold to a new company Formentera Partners. I have tried calling both Rockall and Formentera and either no one answers or they do not call back from voice messages. Our lease is up in 7 months. I’m already getting calls from other companies wanting to lease as they aren’t seeing that we still have an ‘active’ lease (with which company who knows?) What do I do? How do I get a hold of either the new company or the former Rockall? I’ve even emailed from their websites a few times. Formentera doesn’t even have a voice message as their phones just ring and ring. Do we just wait out the 7 months? Are we still active with a new company through the bankruptcy? Just not sure waiting 7 months to find out is the answer either. Thanks for any insight!!!
I’m not licensed in ND.
But in an oil and gas lease there is the primary term and a "held by production " HBP term. The primary term is the initial period during which a well may be drilled. A three year term is very popular. If drilling operations begin within the primary term & it is producing in paying quantities, the lease will extend for as long as the well remains productive. If drilling operations are not begun within the primary term, the lease will usually expire.
I doubt you will be able to cause a company to become interested even after the expiration of the 7 months. At least, I know of none. Make sure that your contact information is on file with the land records where the minerals are located & identify the legal description.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
What area is your lease? I have Land I want to lease in Burke county. Is there any new leases in the area
Our area is Township 161N, Range 94, Section 24 and Township 161N, Range 93, Section 19. Leaf Mountain area. North of Tioga off of Hwy 40.
There were new drilling permits bought in Feb of this year for our Range 93/Sec 19 from Petro Harvester. The names of the wells were on the ND Confidential well list. I know that doesn’t really mean much as it doesn’t cost too much to buy the permits each year.
Yesterday I was contacted by another company, Liberty Resources ll, and they had seen that some of the family members had a lease that expired. The majority of us are still in a lease for the 7 more months. We were in the middle of signing leases when Covid hit in March of 2020… and whomever didn’t get the lease back in time, were not included so we had like 5 families that were left out of the 3 year lease. They were then offered a 1 year lease from Rockall/Petro Harvester last year… and with a date of starting to drill the two wells, but those leases now are expired and open. Liberty was calling about those family members. But after I told him the story of how they missed out because of covid, and that the majority of us had the majority of the mineral acre’s, his hands are tied. He did talk about a ‘top lease’ but I’m not for that.
My question is How do we get out of this lease with a company that went bankrupt and now a new company that isn’t even answering their phones? Who knows what this new company will want to do? Can’t find them to talk to them!
You cannot get out of the lease at this time. It has to expire under its time limit. I am with you. Top leases can be a nightmare, so I just wait until the lease expires and then entertain offers.
I agree that top leases are a bad idea. Why limit yourself. Also, signing a new lease provides a good opportunity to improve both the monetary and non-monetary terms. I am starting to think that I should not lease at all, but go non-consent.
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