I have no idea on what is a good lease, I just started to research more info regarding oil leases, royalty percentage, etc. There is a oil company interested in exploring on my land, they offered $50 per acre, 18.75% royalty, and a small bonus, this seems like a small amount? considering my land is located within the Bakken area and there are quite a few oil wells and new exploration going on. I dont know anyone I could ask questions in this area since I inherited this land and live a few states away from it. At this time I'm not interested in signing this lease.
Does anyone have any info on oil leases in the ND, Roosevelt/Richland counties in MT areas and what details would be better to consider?
Miss SC:
If your minerals are located in the Bakken, I can tell you that the $50/acre bonus in extremely low. The royalty amount is good but you didn't state the length of the lease which I would not agree to more than 3 years. You will find that there will be a difference in the bonus/acre amounts between ND and Montana. The areas in Montana have been far less drilled thus the Bakken is "unproven" many of these areas, especially in Roosevelt County. I have minerals in both Williams County (ND) and Roosevelt County (MT) but the Montana area has seen little drilling activity over the past year. My advice is to read some of the posts on this board regarding lease contents in order to educate yourself on the wording and handling of lease negotiations.
My advice is not to be in any hurry to lease. $50 an acre sounds ridiculously low and I would sure try to get 20% royalty. The more good wells they bring in near your property, the more valuable your minerals will become. You might try to talk to the Mayor in the town closest to your land and ask him/her what people have recently leased for and to whom.
As the gentlemen suggested, read the comments on this web site. Also go to www.pagaslease.com and www.naro-us.org and www.dnr.nd.gov/oilgas and www.dnr.nd.gov/oilgas/leasingconsiderations.pdf
and www.city-data.com/forum/north-dakota and look for mineral rights discussion. You will find a wealth of information on all of these sites to educate yourself.
Good luck!
Thanks for your replies:)
I forgot to put on here my land location: 28N 54E in Roosevelt county, I did find some interesting links
http://www.bogc.dnrc.mt.gov/MBOGCdotNET/frmLogin.aspx?ReturnUrl=%2fMBOGCdotNET%2ffrmFilterNavigation.aspx
the above link--just click on Logon, no password needed, on this site you can check on permits, oil wells, formations, how much a well is producing, etc