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FAQ's

Surface Owner Questions
Question
Is there any regulation that says an oil company has to settle with a landowner in a certain amount of time?
Answer

No. If a settlement cannot be reached after an operator provides written notice of its intent to drill and supplies the surface owner with a copy of the statute stating his/her right to damages, the operator can move in and begin operations after 20 days have lapsed. The surface owner will still be paid for damages and, hopefully, the oil company and surface owner can come to an agreement. If not, the surface owner has the right to sue in a court of law.

Regulatory Questions
Question
Is the gas that is being flared harmful to our environment?
Answer

No. The flaring process is designed to result in emission of mostly water vapor and carbon dioxide with very minor amounts of sulfur dioxide (below permitable source levels as defined by EPA).

Mineral Owner Questions
Question
In Texas, operators lease by geological layers not just the well area. Will North Dakota follow the same path?
Answer

This is not likely. The cost of leases (including lease bonus and royalties) has skyrocketed with the success of horizontal drilling in unconventional oil plays. Additionally, the cost of drilling in North Dakota has always been more expensive and is rising quickly with 1,280 acre spaced wells costing nearly $9,000,000. Also, the cost of operations in North Dakota is significantly higher than other areas of the country because of weather alone, and the North Dakota tax structure is higher than our competitors', making it more expensive to do business in North Dakota and thus lowering the return on investment.

Mineral Owner Questions
Question
I signed a five year lease for my minerals; it's now year two with no oil wells or activity to date. How long am I locked into the lease provisions?
Answer

The lease is a binding contract and typically remains in effect until the primary term expires (assuming all bonus and rentals were timely and properly paid). If production is obtained during the primary term, the typical lease provisions provide it is extended for so long as oil and/or gas are produced.
 

Bakken Basics
Question
How thick is the Bakken formation?
Answer

The Bakken formation thickness varies from about 11 feet at the erosional edge, or subcrop, to about 180 feet just east of Tioga at the depositional center.