South Dakota - Oil & Gas

摘要

On July 11,2013, Luff Exploration Company (Luff) received a permit to drill an oil and gas well from the South Dakota Department of Environment and Natural Resources. On July 17, 2013, Luff offered a lease to one of the unleased mineral owners and requested the lease be returned within 30 days. Luff advised that if the mineral owner declined to lease her minerals or elected not to participate in the cost of the well, Luff intended to recover risk compensation of 100% of the reasonable, actual drilling costs pursuant to S.D. Admin. R. 74:12:10:03. The next day, the mineral owner emailed that she wished to continue her unleased status. See Findings of Fact, Conclusions of Law, and Order, In re Petition of Luff Exploration Co., Case No. 28-2013 (SDBME Nov. 21, 2013).