Server Time (CDT): Jul. 18, 6:42:54a

Tract #78
App #5129

Hill County, MT
State of Montana DNRC Oil & Gas Lease Sale, June 7, 2022


Property Schedule

Due Diligence Began 3/18/2022
Bidding Started 6/1/2022
Bidding Ended 6/7/2022 12:34 PM

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Tract #78
App #5129

Gross Acres:


Net Acres:


Time Remaining:

Auction has ended

Start Time:

6/1/2022 11:34 AM MDT / 12:34 PM CDT

End Time:

6/7/2022 11:34 AM MDT / 12:34 PM CDT

Your Bid:


Highest Bid:


Starting Bid:


Bid Increment:


Total Cost at Starting Bid:

(Bonus + Agency Fees + Advanced Rental + 2% Buyer Premium)

Legal Description:

Tract Details

Property/Well Name

Tract #78
App #5129

County, State

Hill, MT

Legal Description

T34N R8E
Sec. 36 ALL

Gross Acres


Net Acres


Royalty Rate


Lease Term

10 Years

Rental/Acre (Per Year)


MT Administrative Fee


Buyer Premium


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.


  • 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.

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


(406) 444-4576

EnergyNet Point of Contact

Government Resources


(877) 351-4488