Minerals Rights have presidence over the Surface Rights
On Oct 5, 6:33 pm, montanacrude <[EMAIL PROTECTED]> wrote:
> Please clarify for me folks. So if I own the minerals and royalties
> but not the surface rights I basically have no negotiting power? How
> does the oil company determine what percentage of production and the
> other terms of the lease? If the surface owner refuses to lease or
> negotiate then as mineral right and royalty holders we have no
> options? Sorry but I am a rookie at this. Thanks for your answers.
>
> On Oct 5, 3:00 pm, "Rufus O'Malley" <[EMAIL PROTECTED]> wrote:
>
>
>
> > Hi Al,
> > Dittos on the welcome to the blog. When a company wildcatted a nice
> > fat well (by Dunn Cty standards, anyway) adjacent to my assets, I
> > immediately contacted first the leasing agent company (who could or
> > would only tell me which oil company still had possession of my lease)
> > and then contacted the oil company directly. Had I not done so, I too
> > would be completely in the dark as to the plans for my assets. In
> > that one phone call to the exec of Land Drilling and the Director of
> > Field Services (or some such title....), I learned that, indeed, a
> > well plan was underway for my acreage, including the two sections
> > where I have the most assets. I learned that it will be bakken well,
> > the well vertical site location, the well identifier name and # the
> > orientation of the lateral(s), the length of the lateral(s) and that
> > it was being surveyed at the time of the call.
> > Not expecting to learn so much in my first call to the company, I of
> > course had questions as soon as I hung up the phone. I called back,
> > asked for the exec's admin, asked her how best to get my questions
> > answered, and the admin said that I could send my questions to the
> > admin's email address.
> > If you are not the SURFACE owner where the vertical well is being
> > drilled, you will not hear from the company until a division order is
> > in your hands, and that is 5-6-7 months after the well goes on
> > production. Your lease allows them to do everything they need to
> > without notifying a mineral owner at any time during the process until
> > they need the mineral owner's signature on the Division Order that, in
> > essence, says you agree with their determination on what percentage of
> > royalty on what portion of mineral ownership . That's it.
> > The only persons they will contact in between IS the surface owner to
> > negotiate surface use compensation for the actual well site. If you
> > are BOTH the surface and the mineral owner on the site, you would be
> > contacted, only because you own the surface.
> > So, my best advice would be to contact the same persons in your case,
> > the leasing agent/company, find out who holds the paper currently
> > ( leases can change hands between companies many times over, kinda
> > like mortgages) and then call the HQ of that company ...
> > And, I heartily recommend cruising this blog from the beginning,
> > stopping to read the different threads that catch your interest....
> > and excellent resource...
> > Best, Rufus
>
> > On Oct 5, 12:48 am, DepME <[EMAIL PROTECTED]> wrote:
>
> > > I have some acres in Dunn county that were leased by Continental
> > > Resources in May 2007. CR applied for 1280 acre pooling the first
> > > part of May 2008 and applied for a drilling permit the last part of
> > > May 2008. They started drilling in August.
>
> > > I haven't heard from a soul !! Not the landman, not Continental
> > > Resources, not anyone. If I hadn't stumbled upon the NDIC site and
> > > this group while googling 'Bakken', I'de probably still be in the
> > > dark.
>
> > > Welcome to the group. There is lots of knowledgeable people here who
> > > are will to help out. Spend some time using the search tool. You
> > > might find at least some of your questions have already been asked and
> > > answered.
>
> > > On Oct 4, 5:25 pm, "al gates" <[EMAIL PROTECTED]> wrote:
>
> > > > Just found out that XTO Energy has an application for a 1280 acre
> > > > drilling
> > > > unit on a section of land in Dunn county that my mother has an oil
> > > > lease on.
> > > > Being new to this world of ND oil, what can we next expect? Will we hear
> > > > from them at some point? Do we just sit back and wait or what? Thanks
> > > > for
> > > > any information.- Hide quoted text -
>
> > > - Show quoted text -- Hide quoted text -
>
> > - Show quoted text -- Hide quoted text -
>
> - Show quoted text -
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