SOLD
Registration Status:
Please log in as a buyer to view registration status.
Your Bid Status:
You have not bid on this lot
Tract:
OG-12-01183
Gross Acres:
80.00
Net Acres:
80.00
Time Remaining:
Auction has ended
Start Time:
8/9/2012 2:30 PM CDT
End Time:
8/16/2012 2:30 PM CDT
Your Bid:
-
Highest Bid:
$7,003/acre
Starting Bid:
$1/acre
Bid Increment:
$1
Total Cost at Highest Bid:
$571,534.80
(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)
Legal Description:
Tract Details
Lease No.
OG-12-01183
County, State
Williams, ND
Gross Acres
80.00
Net Acres
80.00
Lease Term
1 Years (Paid Up)
Rental/Acre (Per Year)
$1.00
Rental Due At Closing
$80.00
ND Administrative Fee
$10.00
Buyer Premium
2.00%
Additional Information
Offset Well: Eide 5-13H; NDIC File No: 18667
Offset Well: Reiger 9-11H; NDIC File No: 20518
Offset Well: Evitt 16-12H; NDIC File No: 20543
Offset Well: Wood 5-15H; NDIC File No: 19857
Update: An AFE for the P Jorgenson 154-98-5-14-23-16H well has been received by the State of North Dakota from Kodiak Oil & Gas Corp. Please click the following link to view the AFE.
AFE: P Jorgenson 154-98-5-14-23-16H; NDIC #: 21817
Update: Operator Statement Regarding AFE
Notice: This lease is contained within the unit of a recently spud (6-27-12) well. The acreage is included in a 1280 acre spacing unit consisting of Sections 14 and 23 of T154N-R98W. The WI for the successful bidder is 6.25%. The lease offered will be at a 3/16 royalty rate. The Division of Interests and Approvals shown on the AFE reflect WI ownership prior to lease expiration. Successful bidder will have option to participate in the AFE at 6.25% or decline to join the AFE and be subject to the risk penalty described below. The risk penalty will not apply if the successful bidder joins the AFE.
Well Information:
P Jorgenson 154-98-5-14-23-16H
Sections 14 & 23 - T154N - R98W
Williams County, ND
NDIC File No. 21817 API No. 33-105-02435-00-00
Location: SWNW 14-154-98 Footages: 1788 FNL 285 FWL Latitude: 48.163857 Longitude: -103.258131
Operated by Kodiak Oil & Gas Corp.
Spacing order: 13704
Formation: Middle-Bakken
Field Name: Truax
Spud on 6-27-12
State's Interest: 154-98-14: E2NE4 (80 ac.) 100%
Lease Term | 5 years |
Rental Rate | $1.00/acre/year |
Rental Due at Closing | 1 year |
Gross Acres | 80.000 |
Net Acres | 80.000 |
N.D. Admin Fee | $10.00 |
Buyer Premium | 2% of bonus bid |
Property Information Update
North Dakota Drilling Non-Consent Provisions
Persons interested in bidding on Tract OG-12-01183 should become familiar with "risk penalty" provisions found in Section 38-08-08 of the North Dakota Century Code (NDCC) and Section 43-02-03-16.3 of the North Dakota Administrative Code (NDAC).
Provided certain conditions are satisfied, NDCC 38-08-08 allows the owner to impose a penalty on other interests in the well's spacing unit if those other interests decline to join in the risks and costs of drilling.
The North Dakota Industrial Commission oversees application of the risk penalty law and has adopted a rule to implement it. The rule is found in Section 43-02-03-16.3 of the NDAC.
NDCC 38-08-08 states that if the nonparticipating owner's interest is not subject to a lease, the risk penalty is 50%, and that if the nonparticipating owner's interest is derived from a lease, the risk penalty is 200%. These risk penalty percentages are applied to the nonparticipating owner's share of the reasonable actual costs of drilling and completing the well, and may be recovered only out of production from the pooled spacing unit.
In order to enforce a risk penalty, the owner, must make an unsuccessful, good faith attempt to have the unleased owner execute a lease - or - must make an unsuccessful, good faith attempt to have the leased owner join in and participate in the risk and cost of drilling. "Good faith attempt" is more fully described in NDAC 43-02-03-16.3.
As it pertains to Tract OG-12-01183, the Commissioner of University & School Lands, cannot warrant which risk penalty will be assessed for non-participation.
The procedures and process outlined in NDCC 38-08-08 and NDAC 43-02-03-16.3 should be referenced and followed. Risk penalty disputes are decided by the North Dakota Industrial Commission. A dispute whether a risk penalty attaches to Tract OG-12-01183 and its interests, and if so the amount of the risk penalty, would be addressed at a hearing held by the Industrial Commission.
Bid History (Top 10)
Bidder
Placed
Amount
Bidder #8
8/16/2012 1:53:03 PM
$7,003
Bidder #17
8/16/2012 2:24:02 PM
$7,002
Bidder #8
8/16/2012 1:53:03 PM
$6,751
Bidder #17
8/16/2012 2:23:23 PM
$6,750
Bidder #8
8/16/2012 1:53:03 PM
$6,501
Bidder #17
8/16/2012 2:22:36 PM
$6,500
Bidder #8
8/16/2012 1:53:03 PM
$6,251
Bidder #20
8/16/2012 2:08:13 PM
$6,250
Bidder #8
8/16/2012 1:53:03 PM
$5,605
Bidder #20
8/16/2012 2:07:39 PM
$5,604