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Charles r. Peissel PEISSEL LAW FIRM, L.L.P. www.peissel.com NovEMBER 2013. BAKKEN BONANZA TEXAS ENERGY COMPANIES GO NORTH. POP QUIZ!. The state capital of North Dakota is : a) Grand Forks b) Minot c) Bismarck. QUESTION #1. c) Bismarck. ANSWER.
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Charles r. PeisselPEISSEL LAW FIRM, L.L.P.www.peissel.comNovEMBER2013 BAKKEN BONANZATEXAS ENERGY COMPANIES GO NORTH
The state capital of North Dakota is: a) Grand Forks b) Minot c) Bismarck QUESTION #1
c) Bismarck ANSWER
The state bordering North Dakota on the west is: a) Wyoming b) Montana c) Ohio QUESTION #2
b) Montana ANSWER
The population of North Dakota (as of 2012) is: a) 910,000 b) 700,000 c) 450,000 QUESTion #3
b) 700,000 ANSWER
Approximate number of drilling rigs operating in North Dakota today: a) 50 b) 110 c) 183 d) 350 QUESTION #4
c) 183 ANSWER
The name “Bakken” is derived from: a) creature that lived during the Jurassic period b) a type of whiskey sold during Prohibition c) farmer Henry Bakken in Williston, North Dakota QUESTION #5
WHY DO WE CARE ABOUT NORTH DAKOTA?
GOING UP! Source: North Dakota Dept. of Mineral Resources
IN THE BEGINNING….. PART I
Map credit: Compiled by H. George Stoll, Hammond Incorporated, 1967; Revised by U.S. Geological Survey 1970
EXPLORATION Source: Wikipedia Commons
1851-1870 Source: www.landgrant.org
1861 Source: Wikipedia
HOMESTEAD ACT OF 1862 LEGAL MILESTONE #1
DAWES ACT OF 1877 LEGAL MILESTONE #2
GENERAL ISSUES……. PART II
61 years of activity • 1280 acre units are common • 2560 acre units are becoming more common • Title opinions can reach 600 pages or more • Title standards are numerous and complex IT’s NOT SIMPLE AND IT’s DIFFERENT
Land practices are not state of the art • Everybody is understaffed and running behind • Attorneys unfamiliar with North Dakota are rendering North Dakota title opinions • Drilling is running ahead of title opinions IT’s NOT SIMPLE AND IT’s DIFFERENT
North Dakota started out as federal property Federal leases are issued by the Department of the Interior through the BLM • 4.1 million acres administered by the BLM in the western 1/3 of the state • Approximately 1,700 federal oil and gas leases • Drilling permits may take up to 10 months FEDERAL LANDS ARE EVERYWHERE
INDIAN COUNTRY Map Credit: North Dakota Indian Affairs Commission
Indian lands scattered throughout the state • BLM, BIA, ONRR • Tribes are sovereign entities and are your lessors, with the consent of the BIA • State laws may or may not apply • State laws adopted by tribe may be handled by the BIA INDIAN COUNTRY
A lease of Indian lands may be executed under the following statutes: • Indian Mineral Leasing Act (IMLA) • Indian Mineral Development Act (IMDA) • Indian Tribal Energy Development and Self Determination Act (ITEDSA) • Allotted Lands Leasing Act INDIAN LEASING ACTS
BLM State Land Office • Master Title Plat • Historical Index • BIA Land Title Records Office • Land Index and referenced documents • Title Status Reports • Probate files • BIA Regional Office • Unit Agreements, Development agreements, Lease Sale Notices • Sale Files, environmental reviews, assessments • Leases • BIA Agency Realty Office • Lease files • Land ownership plats • Tribal Records • Tribal liens, Tribal Tax liens • County Records INDIAN RECORD DEPOSITORIES
Land grants totaling 11 million acres – 23% of North Dakota • Right of way Lands, Place Lands and Indemnity Lands within a 120 mile strip • 400 or 200 foot easement along the right of way RAILROADS – BIG TIME PROPERTY OWNERS
Water, Water Everywhere….. Map credit: USGS
The state of North Dakota claims title to the bed of the Missouri River, which would include the underlying oil and gas. Water LAW – STATE OWNERSHIP
North Dakota State law grants riparian owners title to the low watermark (NDCC 47-01-15). WATER LAW – PRIVATE OWNERSHIP
North Dakota’s first constitution expressly disclaimed all right and title to Indian Lands. ND Const. art., XVI, § 203 (1889) Did the bed of navigable waterways within the boundaries of Indian Country in North Dakota pass to the state under the equal footing doctrine or was it vested in the Tribe? Intersection of Water Law and Indian Law
NOW THE NUTS AND BOLTS……. PART III