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But the report said they purchased the land in order to drill for oil/natgas.

But the report is incorrect in one or more material respects. Statoil didn't buy the acreage in fee. What they got was an undivided interest in oil and gas leasehold covering this 70,000 acres. There is a difference.

Under the leases in which they acquired an undivided interest, Statoil has the right to drill and to use as much of the surface as is reasonable necessary to explore for and produce the hydrocarbons. They have the right to do this under one or more oil and gas leases, which last for a term of years and as long thereafter as oil or gas is being produced in paying quantities. But they didn't buy the real estate itself; they bought an interest in an oil and gas leasehold covering some 70,000 acres. The report makes it sound like Statoil came in and just bought up the countryside, dispossessing anybody who happened to be on the land they were buying, which most assuredly did not happen.

For those who are unaware, mineral production almost always occurs pursuant to the terms of some sort of lease. Oil and gas companies don't purchase land in the same way you or I might buy 40 acres out in the country. They acquire leases or permits that authorize them to explore for and produce the minerals they're looking for.

It isn't that unusual for a foreign-owned company to acquire working interests in oil and gas ventures in the U.S., either. For instance, Chesapeake Energy sold an undivided 1/3rd interest in its Eagle Ford shale holdings to China National Offshore Oil Company (CNOOC) for $2.2 billion in 2010. Other domestic companies have brought in foreign partners into their ventures, as well. Through merger and acquisition, BP became the largest player on Alaska's North Slope, and a primary player in the gulf of Mexico.

Myself, I would view the CNOOC purchase (it's the Chinese, after all) with greater caution than anything involving Statoil, which is Norwegian.

“But the report is incorrect in one or more material respects. Statoil didn’t buy the acreage in fee. What they got was an undivided interest in oil and gas leasehold covering this 70,000 acres. There is a difference.”

Okay , that’s a horse of a different color then. Thanks for taking the time to provide that information. You seem to have a good amount of experience in this area.

BTW, you’re not T Boone Pickens hiding behind the name ‘Milton’ are you? (only kidding)