Information in the June 2013 issue of the MSU Extension oil and gas newsletter
A new issue of the Michigan State University Extension oil and gas newsletter is now available.
Some thoughts on the order for payment for an oil and gas lease:
Initially, the order for payment (Order) can stir excitement in a mineral owner (Owner) because it appears to be a determination that the lease bonus will be paid and a deadline is set for the payment to be received. Just as with the oil and gas lease itself, the Order should be scrutinized. This article tells you what to look for and what alternatives there are to amend this Order.
Encana oil and gas outlines Utica-Collingwood play in Michigan:
Encana is a North American energy producer that is located in Calgary, Canada. They have assembled a large leasehold in the central and northern lower peninsula of Michigan. At the March 21, 2013 Michigan Petroleum Conference at Mount Pleasant, Michigan, an Encana geologist provided information regarding the results of Encana’s initial Michigan exploration of the Utica-Collingwood formation.
Dormant Minerals Act question and answer:
Michigan is somewhat unique in that the Dormant Minerals Act allows severed mineral rights to revert to the surface owner if certain requirements are not met during a 20 year period. This article discusses those requirements and answers the question, “Does the current surface owner have to be the owner for a continuous 20 years for the oil and gas mineral rights to revert”?
Preserve your farm through Purchase of Development Rights if you have an expired oil and gas lease:
Purchase of Development Rights or PDR is a voluntary farmland preservation program that pays property owners to place a permanent agricultural conservation easement on their farmland. The purpose of PDR is to preserve prime and unique farmland for food production. Some counties and townships in Michigan actively participate in a PDR program. Property owners wanting to preserve their farmland through PDR need to be aware of the status of their mineral rights. Find out how previous and current mineral activity affects qualification for a PDR.
Read the entire newsletter on the Oil and Gas Page.