Last year I signed two new leases in Williams and Mountrail counties, ND. My brother also had parcels for the same locations, however, he passed before getting the lease offers. It’s been about a year now and his mineral ownership was recently transferred to me. I have emailed and left VMs to the two landmen that facilitated the leases. Neither one has responded so I’m wondering if I’ve missed a deadline. I’d like to received the bonuses and royalties but am I out of luck? What should I do next?
1 Like
The leases grant the right to drill, but the operators do not have to. If you list the section, townships and ranges, we may be able to help with activity. There may be other landmen that are interested.
1 Like
Thank you for the information. I want to thank you for being an invaluable resource for many years!
My two remaining unleaded parcels are in Williams County and Mountrail County. There must be some positive speculation as I get frequent offers to purchase.
The two parcels that I own and would like to lease are: Mountrail county township 158 north, Range 92 West, 5th P.M, Section 4: E/2 SW/4, W/2 SE/4
Williams County Township 158 North, Range 102 West, Section 8: SW 1/4, Section 17: NW 1/4
1 Like
- Unleased parcels
Mountrail county township 158 north, Range 92 West, 5th P.M, Section 4: E/2 SW/4, W/2 SE/4- I see horizontal wells in that section already.
Silver Hill Energy Nebraska E 158-92-5-29-20MBHX might be just over the border or on the border completed in 2025.
Silver Hill Energy MINNESOTA W 158-92-4-28-1MBHX completed in May 2026.
Silver Hills was leasing in section 4 in the last 24 months. You may have been pooled if you were not already held by production by the Chord well.
Chord Energy Hardy 5892 43-9H completed in 2014. Contact both operators. Start with Chord’s Division Order Department since they have had a well the longest. See if you have missing royalties.
Williams County Township 158 North, Range 102 West, Section 8: SW 1/4, Section 17: NW 1/4. Phoenix Energy and Missouri River Royalty are leasing in those sections. Probably leasing for two section horizontals (if not longer).
Make sure that your correct address and description of acres, plus title info are properly filed in the county courthouses so that land men can find you.
1 Like
I’m just now learning about this stuff…with the silver hill Minnesota well being completed in May 2026, does that mean it’s confidential for 6 months or is there a chance we’ll receive royalties in a few months? Thank you.
Generally, it takes about five months for the title work to be done for the Division Order Title Opinion. Then you receive the Division order. Royalties follow that.
Ms. Barnes:
Does it ever make sense to sell minerals and royalty interests on a lease when there is a newly producing well on the property? Say for example the area is pooled and there are many many other owners because ownership was diluted among multiple family members and the other tracts of land under which the line crosses? But the NMA is around 20? I know the prevailing advice is never, but if the offer is significant does that always mean the interested group knows more than anyone else?
Thank you.
Welcome to the forum! Sometimes yes, and sometimes no. It all depends upon your financial goals and life situation and Location, Location, Location!
In general, buyers tend to offer three-five years of royalty on current or impending wells within that time frame and discounted for the time value of money. Some more, some less. Buyers intend to make a profit on their purchases. Most buyers are fully informed on what is likely to happen and that is why they make offers.
If you are about to have one or more horizontal wells that could last for decades, you might be giving up that royalty income for years which you could invest in other instruments that make additional income. Another factor which is often not discussed is the potential capital gains tax on a sale.
In certain basins there is the potential for extra wells in the future in the same reservoir, re-completions of wells, new zones being drilled in the future, etc. You really have to do some detective work by asking questions and learning about your area. You can post those questions in your state and county and find out about activity where you are.
The decision needs to be made after considering your financial needs, your estate plan, etc. You can sell all, sell part and keep part, or keep it all.
Thank you!
It’s pretty opaque but I am trying to make an informed decision.
Because if the royalty is something like $50 or $100 per month, for however many years until the well runs dry, but the offer is quite high, a couple thousands per NMA,
There is an equation in there somewhere and why such a high offer? Nobody wants to miss out on the bonanza…thanks for what you do and bringing clarity and professional advice to the forum.
PS: I’m a former Owl too.
If the well is vertical and only perforates 10’ then the royalties will be low and the offer of 1000’s looks pretty good. If the well is horizontal and perforated thousands of feet, then the offer is likely quite low to actual performance and royalties. That is why location and type of well matters. These days, most offers are because the buyer is pretty sure there are about to be multiple horizontal wells and plan on a significant profit off of acreage they buy.
On several of the offers I have received, I knew that multiple horizontals were imminent and the offer to buy was about 25% of the ultimate royalties that were pending from the wells that were drilled. I was happy to keep that other 75%.
That is where the forum is helpful. If folks post in the state and county where they have offers and give a township and range or block and abstract, local folks can comment on activity and types of wells in the area of interest. They mineral owners have more data to work with before they make a decision.
Thank you very much!
This topic was automatically closed after 90 days. New replies are no longer allowed.