Server Time (CDT): Jun. 8, 10:47:08a

Tract #4
App #5002

Dawson County, MT
State of Montana DNRC Oil & Gas Lease Sale, March 7, 2023

SOLD

Property Schedule

Due Diligence Began 2/7/2023
Bidding Started 3/1/2023
Bidding Ended 3/7/2023 10:06 AM

Registration Status:

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Your Bid Status:

You have not bid on this lot

Tract:

Tract #4
App #5002

Gross Acres:

637.00

Net Acres:

637.00

Time Remaining:

Auction has ended

Start Time:

3/1/2023 9:06 AM MST / 10:06 AM CST

End Time:

3/7/2023 9:06 AM MST / 10:06 AM CST

Your Bid:

-

Highest Bid:

$2/acre

Starting Bid:

$1.75/acre

Bid Increment:

Variable

Total Cost at Highest Bid:

$1,324.48
(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)

Legal Description:

Tract Details

Property/Well Name

Tract #4
App #5002

County, State

Dawson, MT

Legal Description

T16N R54E
Sec. 36 LOTS 1, 2, 3, 4, N2, N2S2

Gross Acres

637.00

Net Acres

637.00

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. Due to unstable soil conditions on this tract and/or topography that is rough and/or steep, surface use may be restricted or denied. Seismic activity may be restricted to poltershots.
  • 9. Due to the floodplain/wetlands area(s), surface use may be restricted or denied.
  • 11. No surface occupancy will be permitted in the hatched portion of the DFWP easement area shown on the accompanying topographic map and 2017 aerial photo (unless otherwise approved in writing by the Director of MT Dept. of Fish, Wildlife and Parks).
  • 12. MT Dept. of Fish, Wildlife and Parks (MT-DFWP) holds a permanent public park and recreation easement D-12389 on 357.28 surface acres, more or less, approximately north of the right-of-way of MT State Highway No. 200S for the development, maintenance and operation of a public shooting range, including associated facilities. DNRC will consult with MT-DFWP regarding oil and gas activity proposed on their easement area.
    If the lessee proposes oil and gas activity on the easement area, lessee shall coordinate with MT-DNRC and MTDFWP to determine a suitable location of proposed oil and gas well(s), related facilities and equipment for possible development and production within the easement area, but outside the no-surface-occupancy area. The location of the well(s), equipment and facilities shall be reasonable and shall not cause undue hardship to the oil and gas lessee. MT-DFWP’s easement requires written concurrence that the proposed uses do not unreasonably conflict with their rights under the easement. The lessee will also work and coordinate with MT-DNRC if proposing any activity outside the MT-DFWP easement area on this 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

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.

State of Montana DNRC Point of Contact

Mineral Leasing Specialist
Theresa Hossfeld

Email
THossfeld@mt.gov

Office
(406) 444-4576

EnergyNet Point of Contact

Government Resources

Email
government@energynet.com

Office
(877) 351-4488

Stipulation #11 Maps - Tract 4, Application 5002

Bid History (Top 10)

Bidder

Placed

Amount

Bidder #745

3/7/2023 10:05:55 AM

$2

Bidder #877

3/1/2023 10:06:41 AM

$1.75