I just got a return call from Denbury, Clayton Breckenridge. He did not know that he was being interviewed by a journalist for a paper. He said there is some misinformation in the Glendive article.
He explained the situation: Clayton confirmed that they have offered the road to the 2 counties. He said the estimate they received on the road repair was less than a million for the approx. 15 miles of road, he is sending a copy of that. He said there are about 5 other oil companies who use that road that have not previously help pay for maintenance, so Denbury just reached out to them about this, in the meantime, they wanted the companies to sign a release so that Denbury would not be held responsible. Denbury contacted all the landowners about signing a release. They are not wanting to cut off access, simply get the other companies using the road to pitch in and help with road repairs, but they would also like the Prairie and Dawson County to assume the road.
While we were on the phone he received the final version of the release from legal, which he is forwarding to me, so you guys can fill one out in the meantime and have access while the negotiations with the other road companies is done, repairs, then hopefully the county adoption. He said Fallon just did it on their own in 2011, notifying Denbury that the road was now theirs.
This is important to take advantage of right now. Before Breckenridge called, I had just read an oil article published in May, speaking to the slumping oil prices and decreased drilling in areas. This particular area is not one of those, so we should push for this road to be adopted by the counties before any major change occurs with oil companies just cutting losses.
"Two regions that produced the most crude in the state during 2016 were Richland and Fallon counties, both of which sit within the Williston Basin. With year-long respective totals of 11.67 mmbo and 3.57 mmbo extracted, Richland County’s oil came mainly from the horizontal BSR, while Fallon County’s output was primarily from vertical Silurian and Ordovician production along the Cedar Creek Anticline (also referred to as the Glendive-Baker Anticline). In comparison, for 2015 Richland County yielded 15.32 mmbo while Fallon County booked oil production of 3.86 mmbo."
Some days it is so nice to hear a friendly Texas accent again.