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State Land Oil & Gas Leases Sold Sept. 7
Written by Daniels County Leader - Wednesday, 14 September 2011
Through competitive oral bidding in Helena on September 7, oil and gas leases were sold on 201,226,46 acres (483 tracts) of state land, raising $7,949,823.10 in bid revenue for the State. Average bid per acre was $39.51. Bids ranged from a
high of $2,500 to as low as $1.50 per acre.
In Daniels County, there were three tracts offered. Shale Exploration of Scobey was the successful bidder at $76. per acre, on the largest tract, 360 acres, about 12 miles north of Richland.
Leases on the other two tracts were purchased by Unconventional Energy Partners— 160 acres at $105. per acre, about 6 miles southwest of Scobey; and William Patrick Curvin was the winning bidder on 80 acres about 11 miles southeast of Madoc, for $125. per acre.
State land leases are for a period of 10 years with a delay rental fee of $1.50 per acre, per year, to keep the lease active. Royalties paid to the state are 16.67% or 1/6th.
In neighboring counties of Sheridan and Roosevelt there were five tracts where leases were sold.
In Sheridan County: about a mile north of Redstone, 40 acres leased at $220. per acre; 3 miles southeast of Redstone, 480 acres* leased at $150. per acre; and less than a mile southwest of Outlook 640 acres* leased at $750. per acre.
In Roosevelt County: about eight miles southeast of Bainville, on the state line, 233.72 acres leased for $2,500. per acre; and about nine miles east of Froid 640 acres* leased at $2,200. per acre. (*Part or all of the tract is not state-owned surface).
More information is available to the public at http://dnrc.mt.gov/Trust/MMB/OG/Default.asp
The next Montana State, Oil and Gas Lease Sale is scheduled for Tuesday, December 6th in Helena. The location in Helena has been changed to the auditorium of the Scott Hart building at 303 North Roberts.
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Shale Exploration , L.L.C. Plans with community for Oil and Gas Development in Daniels County, Montana
article below: Written by Daniels County Leader
Wednesday, 17 August 2011 12:52
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Chamber Meets: Discuss Potential Oil Future Here
Written by Daniels County Leader - Wednesday, 17 August 2011 12:52
Daniels County Chamber met Monday, August 15 at the Scobey Golf Clubhouse for a noon meeting.
The main topic of discussion was about the potential of oil developments in Daniels County.
Should oil come to Daniels County— are our communities ready, and if not, what will it take to be ready?
The Chamber plans to host a forum, or hopefully a series of forums, to help educate the area people of what may be in store, if the oil development keeps moving west into our county.
Some discussion was held on finding out which communities have had success in preparing for incoming influx of people, industry, and
services needed that come with the oil industry. Also, there will be investigation to discuss with communities who did not plan for the oil industry, which eventually arrived in their area.
The first seminar is expected to be held soon, with guest speaker, State Representative Austin Knudsen, of Culbertson. He also serves as an attorney in Sheridan and Roosevelt counties and has experience in several aspects of the oil industry, leases etc.
The Chamber feels it is important among other things to hold forums that people can have input on how to keep up with infrastructure needed in a potential oil area.
Sam Tallis, president of Shale Exploration in Scobey was present at the meeting and said their company would be willing to provide assistance and feels that the people need to be well informed before making decisions and the more transparent the information, the better.
Shale Exploration, LLC, which has been actively leasing here, hopes to be able to start exploration in the Daniels County area in the Bakken Shale Formation, next spring. “For now, it won’t bring a big influx of people, we hope to have four or five rigs available to drill in April,” he said.
There are a couple of permits for other companies to drill in Daniels County, but not in the Bakken.
According to Tallis, with a worldwide shortage of drilling rigs this will be a gradual development here. “Scobey will not be the next Williston,” he said.
The infrastructure does not exist here to handle a big boom. There presently is not an economical means to transport oil out of the county. Shale says they are ready to assist with developing an infrastructure plan that Daniels County wants, not just what oil companies want. “We like it here, plan on having families here, and we want to do what’s right,” said Tallis.
There was also concern about businesses gearing up for the oil development and the “boom” not arriving.
The key ingredient is to come up with and have a plan in place, if major development does begin.
An “energy” committee will be formed within the chamber to work with area people, county and city governments on what the coming needs may be.
Other seminars may include a panel discussion of land/mineral owners, getting a “Bakken Basics” informational seminar set up and other forum topics over the coming months.
Contacts with other reputable organizations and companies are being made for possible forums concerning land lease processes, mineral owner rights and infrastructure. New topics may arise as the forums progress.
Watch for more details on the first forum in the Leader and on KCGM.

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