Tract #10
App #5037
Daniels County, MT
State of Montana DNRC Oil & Gas Lease Sale, December 6, 2022
SOLD
Property Schedule
Due Diligence Began
9/22/2022
Bidding Started
11/30/2022
Bidding Ended
12/6/2022 10:18 AM
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Tract Details
Property Name
Tract #10
App #5037
App #5037
County, State
Daniels, MT
Legal Description
T37N R46E
Sec. 24 W2NE4, E2SW4
Sec. 24 W2NE4, E2SW4
Gross Acres
160.00
Net Acres
160.00
Royalty Rate
16.67%
Lease Term
10 Years
Rental/Acre (Per Year)
$1.50
MT Administrative Fee
$25.00
Buyer Premium
2.00%
Important Notice
This tract has received a nomination for $1.50/acre per year rental. If no other bids are received, this tract will be awarded to the nominator in accordance with the State of Montana DNRC rules and regulations.
Stipulations
- 1. Lessee shall notify and obtain approval from the Department's Trust Land Management Division (TLMD) prior to constructing well pads, roads, power lines, and related facilities that may require surface disturbance on the tract. Lessee shall comply with any mitigation measures stipulated in TLMD's approval.
- 2. Prior to the drilling of any well on or into the lease premises, lessee shall send one copy of the well prognosis,
including Form 22 "Application for Permit" to the Department's Trust Land Management Division (TLMD). After a
well is drilled and completed, lessee shall send one copy of all logs run, Form 4A "Completion Report", and geologic
report to TLMD. A copy of Form 2 "Sundry Notice and Report of Wells" or other appropriate Board of Oil and Gas
Conservation form shall be sent to TLMD whenever any subsequent change in well status or operator is intended or
has occurred. Lessee shall also notify and obtain approval from the TLMD prior to plugging a well on the lease
premises.
Issuance of this lease in no way commits the Land Board to approval of coal bed methane production on this lease. Any coal bed methane extraction wells would require subsequent review and approval by the board. - 3. The TLMD will complete an initial review for cultural resources and, where applicable, paleontological resources of the area intended for disturbance and may require a resources inventory. Based on the results of the inventory, the TLMD may restrict surface activity for the purpose of protecting significant resources located on the lease premises.
- 4. The lessee shall be responsible for controlling any noxious weeds introduced by lessee's activity on State-owned land and shall prevent or eradicate the spread of those noxious weeds onto land adjoining the lease premises. The lessee’s methods of control shall be reviewed and approved by the Department’s Unit Office that has jurisdiction for that locale.
- 5. The definitions of "oil" and "gas" provided in 82-1-111, MCA, do not apply to this lease for royalty calculation purposes.
- 6. If the State does not own the surface, the lessee must contact the owner of the surface in writing at least 30 days prior to any surface activity. A copy of the correspondence shall be sent to TLMD.
- 7. The lessee is responsible to pay for all damages, including penalties and charges assessed by the USDA-CFSA on CRP lands, as a result of drilling and production on the tract.
Delayed Drilling Penalty (DDP)
| Delayed Drilling Penalty | Amount/Acre/Year |
|---|---|
| 6th Year DDP (Delayed Drilling Penalty) | $1.25 |
| 7th thru 10th Year DDP | $2.50 |
Offset Activity
Successful Bidder Notification
When the bids are accepted by the State of Montana DNRC, the successful bidder will be notified via email with closing instructions, including total amount due.
Payment must be made within two business days.
Buyer Premium
A 2% Buyer Premium, calculated as 2% of the total bid amount, will be added to the cost of this lease.