Allen S, Thank you. Clear and to the point. I inherited these mineral rights and only recently heard of the Bakken. I thought the minerals were in Missouri. Then realized they were in ND. The Bakken formation.
>>> "Allen S." <[EMAIL PROTECTED]> 10/8/2008 10:09 AM >>> Actually, the way I understand it is if they obtain enough mineral acres in the spacing unit, they can and will drill. Since you have not signed a lease you will become a small interest owner in the well by default. This has both positives and negatives. Positive: Your "share" will be equivalent to the oil company's share based upon the ratio of mineral acres you own. This would lead to much larger checks than you would receive if you signed a lease for those same acres. Negative: You become a minority "owner" in the well. This means you are on the hook for drilling and maintenance costs which may easily outweigh the value of your share of produced oil for the first year or so. Heck, the well may at the worst be dry! Then you are really at risk of being on the hook for more than you earn. In all practicality I think the majority owner just withholds oil revenue from you until the well becomes profitable, but if your acreage is high enough it may make drilling much less likely. On Oct 8, 7:45 am, "David Maahs" <[EMAIL PROTECTED]> wrote: > What if they find oil and I have not signed a Lease? > What if they don't want mine, but I am into forced pooling? > Do I get royalties or do I have to fight for them? > > >>> go-devil <[EMAIL PROTECTED]> 10/7/2008 9:54 PM >>> > > It depends, if they want yours they will call back. > You get royalties upon signing a lease and after oil is found. > > On Oct 7, 7:47 am, wernie <[EMAIL PROTECTED]> wrote: > > > I had been in communication with an Oil Company regarding Mineral > > Rights in North Dakota, Renville County. > > Things moved along, I was given the NET mineral acres. Then abruptly > > they said they could not meet my terms. I said I would negotiate. But > > have heard nothing. Should I expect that this means they are no longer > > interested? The Oil Company is still going to seek a percentage of > > Leases. If Oil is found, do I still get royalty payments? > > Wernie > > ********************************************************** > Electronic Mail is not secure, may not be read every day, and should not be > used for urgent or sensitive issues ********************************************************** Electronic Mail is not secure, may not be read every day, and should not be used for urgent or sensitive issues --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
