I am the leader of a group of smiling women who realize that we may actually hold something of value. Through the years and lost for years has been the notion that half of the mineral rights to a full section in Dunn county might be worth something. We are in the process of learning about leases, language to use and definitions of these terms. The forums have been very helpful but one large question looms and that is: Since we haven’t contacted the land owner of the land itself, and he holds the other half of the mineral rights, can we still proceed with a lease attempt?
Yes you may lease your minerals regardless of what anyone else wishes or does. In other words, you have every right to lease your interest there even if I owned 99% of those same minerals and you owned just 1%.
I do not know ND law very well, but there is some kind of law where you have to claim your mineral rights. If you don’t claim your mineral rights, the surface owner can file with the county or state and claim you have abandon your mineral rights. I would start with a land record search at the Court House. It is easy and the clerks will help you to see if the surface owner had done this to you and to confirm you mineral rights. When you go to the Court House, take you land description details as you will need this information.
Is the property producing right now?
Yes, you can. When a landman approaches you about leasing your mineral rights, he will ask for the names & contact information for all mineral owners. It's part of a title search. The other thing, is only 1 person can lease their mineral rights, all of you don't have to agree to lease. They prefer to get all minerla owners to lease at the same time, as it's more beneficial to the oil company. They don't want other mineral owners coming back at them at a later date asking for a better royalty %. Hope this helps. Also, on the discussion group, you join the Dunn County discussion group & get a better idea of what they are paying in Dunn county. For 2011, it's 18% royalty & $300 per net mineral acre in Dunn County. It will only improve in time. Good luck.
Kay has given you good advice and information. However, the bonus paid and royalty rate varies greatly depending upon your location in Dunn County.
$300 per net acre and 18% may be appropriate in some areas though it is significantly higher in other portions of the county. Dunn County covers a large area. So much of this depends upon what drilling activity and production has been in your immediate neighborhood.
Eastern MT has it right. I have property in farthest NE Dunn county and I was being offered $3000 per acre and 20% last year. It has gone up since then. Do alot of research and good luck.