In the offer letter it should say the Township and Range, that would tell you what county they are in, then have someone research them for you that works in the county seat and does that kiind of work. The one I have used charged $75 an hour, but was better me flying there and researching!! If the T & R are not on the letter, call the company back and ASK what T&R they are wanting to lease because you have a lot of minerals and I am sure they may tell you, even if it has been awhile? Good Luck
Wilbaux County, 1,276 acres
Bruce:
From what I read about the housing shortage in this area, this venture should be very successful.
My siblings and I hold mineral interests in a few parcels in ND. We have spent quite a bit of time and expense to get the rights probated to our generation, since our parents have now all passed away. We are thinking about forming a mineral trust or LLC to manage this so our children do not have to continue to deal with these issues. I have read some of the pros & cons in this an other forums. I would like to hear your thoughts on how to get reliable referrals to an attorney who has experience in this areas. Because our holdings are not significant, it would have to be done cost effectively. Thanks for your insights and help on this.
The big advantage we have found with the Mineral Trust is that it provides a unified place for your family to market it’s mineral rights without each party trying to negotiate separately. It also provides a succession of ownership capability that can bypass the usual probate problems and all of the associated costs and time. We had ours set up for about $ 500 and we are very happy. This is in Montana, but we also are part of a Mineral Trust in ND. The only problem if you can call it that, is that someone has to do the banking, payout distributions and tax filings for State and Federal. This costs about $500 annually and only when there is revenue. We used Laura Christoffersen in Culbertson for ours and are very satisified with her work.
We have also used Laura Christoffersen and the work was done promptly and the cost was fair.
Charles & Larry,
Thanks very much for sharing your experience. I appreciate it.
Norway’s Statoil is buying Brigham Exploration. In an all cash deal worth more than $4.5 billion
Thanks for that. $800 ain’t bad but others have been in the $1200 dollar range. This also an extension on a lease that they got very cheaply in '08 before I knew anything about what was going on in ND. So I am probably just reacting to that.
In eastern Montana my sister did extensive research on our minerals in two areas and was AMAZED at how many leases were getting 20%;;it is like it is the NEW normal. One person I know who was a landman years ago said that they have the first 25% to negotiate and can pay 12% in the beginning but as the areas get hot they will obviously have to pay a larger percentage of it!!
When I started leasing my minerals in Eastern Montana back in 2004, it was $75/acre bonus with a 1/8% royalty. In 2008, the bonus was $100/acre with a 15% royalty. Things have changed alot since that time as many areas have become derisked and others are nearby. I think the 20% royalty is in line with the current times.
Has anyone had any action on leasing or production in McCone County MT?
I just received an offer from Continental through Diamond Resources for our interests in McKenzie County - S10+14, T146N, R98W for $800 per acre and 3yrs at 3/16ths royalty. Other offers I have received in the last year for our interests in ND are higher bonuses and 20% royalty. I am asking if the higher bonuses and royalty are typical of what others are being offered. Thanks, Rick
If you have wells close to you that have produced you should be able to bump them to closer to 20% Royalty which really makes a difference when they find oil. Money per acre seems to vary in areas and the size of the parcel. $800 is pretty good; but if in a hot area, some are paying towards $1500!!
Thanks. That is what I am thinking too.
Rick:
I have read that McKenzie County should be seeing increased activity in 2012 along with Williams County, where I have minerals. I think I would shop around before signing as you could shoot for $1000/acre and a 20% royalty. I’m not sure how far the nearest well is located from your minerals but most of McKinzie County has been good production. You can bet that these guys from Diamond have got a ceiling price and % royalty so I would play hardball for a while.
There is an article in Seeking Alpha yesterday commenting on leasing activity in Alberta, just north of you. Apparently it is not widely advertised but leasing is going on at fairly low prices. There was speculation that the Bakken may exten that far. Plans call for several verical well to test the forations over the next year. Painted Pony Petroleum has comments about this area as well. I have not heard any comments on leasig in Blaine county Montana yet but will happen sooner or later. All of the assets are going to ND and Eastern MT right now but is can change with one phone call.
Thank you, Larry. We have an offer to renew a lease in Blaine County (about 1200 acres), and I’m trying to sort out (for the family) whether the offer is a fair one.
Does anyone know if there’s anything happening at Daniels County, Montana. Close to the town of Scobey?
Hi Sandra, I do know that Daniels county has leasing going on and has for a few years. I have secured a lawyer in the County to work on our family interests…my grandmother left oil and mineral rights for the family when she sold her farm. The last I heard there was no drilling going on at this time. I think this will change soon with ND going so strong.