My minerals are not currently under a lease. But I am receiving certified mail from a law firm representing Pine Haven Resources LLC indicating that they are applying for a drilling permit in a township range and section where I have mineral ownership. It seems strange that they are applying for drilling permits when they have not leased the minerals?. How would this work if the permits are granted.? This land typically is leased and has been for many years until recently. The application states that they have a leasehold interest or has the right to acquire same. I will admit I don’t understand the process and what any of this means but this seems out of the ordinary to me. I would appreciate any advise on what is going on. I try to call the attorneys office and just get put into voicemail with no retuned call.
In Wyoming, virtually anyone can apply for a drilling permit, even if they only have a small fraction of the mineral rights owned or leased inside the spacing unit. This has created a “staking contest” where companies will race to be the first to stake a well and apply for the permit so they will be the designated Operator. This has created a huge inventory of permitted wells, a great many of which will never be drilled, since the permits are applied for well in advance of any proven well results in the area. This puts an undue burden on the WOGCC and delays the processing of other, more legitimate permits.
There are new rules being discussed that are intended to curb the practice, but I am unsure as to the exact status of their implementation.
Thank you for the reply. That is really helpful information. So it sounds like they may just be trying to tie up the land before having any real intentions to develop the Wells. As a mineral owner it sounds to me like they are trying to protect there right to drill without paying to lease any of the land. As a mineral owner it seems like I should oppose their application unless they can prove intent to actually drill. Would you agree?
I wouldn’t oppose it honestly unless you have done your research. They may have quite a bit of land leased up in your section.
I’m not sure you have any basis to oppose the application in any event. Simply being unleased isn’t standing to object. Proof of ownership is not required in order to get a permit to drill. The WOGCC is not in the business of verifying title.
I believe that the WOGCC doesn’t bother to verify title, but they may be interested to know that the application is not very truthful when they say they have substantial lease interest. I am aware of 2,000 acres that they have made no attempt to lease. I am wondering if they receive the permit to drill if that will actually spark interest in leasing my minerals.