I own 13.3 acres of mineral rights in the Bakken Three Forks Formation.
I have been offered roughly 72,000.00
After offering me said price I received an agreement to sell, then some paperwork to sign that has 10.00 listed as selling price. They claim this is normal procedure and if I sign the deed and send them a photo copy they will send me a check and I can send them the official deed that has been “Notarized” after receiving my check.
Is this standard procedure or are they trying to steal my mineral rights?
Nowhere on this paper does it say 72,000.00
This is the first line of what they want me to sign along with a copy of the notarized deed.
FOR AND IN CONSIDERATION of the sum of Ten and No/100 Dollars ($10.00) and other good and
valuable consideration,
They claim that this is standard procedure to keep things private from others???
They said I can get the dee notarized and then send them a photo copy and they will send me a check. Once the check clears the bank I can then send them the original notarized paperwork.
Sending a copy-make sure you mark it with a black marker- COPY DO NOT FILE on every page, receiving payment and then sending the original deed is a common strategy.
Ronald, could you be so kind as to let us know the County, Range, Township, and Section of your holdings? Your offer could be of some interest for many of us small holders. Many of my cousins have small holdings in Billings County, 142N,99W and 142N,98W. THANKS
The primary reason for this approach is to ensure that the market in general does not know how much they paid you for your rights. Once the market knows what they paid you that in effect sets the new market value assuming you negotiated a good price for your rights. You will find out they will do the same thing when it comes to negotiating a 5 year lease deal assuming you do not sell your rights.There is information in a lease document that they also want to keep between you and the lessee since it will impact future deals they will be negotiating with others. For example, post production costs not being charged against royalties. They are negotiable and if they give it to you and the market knows, others will want to negotiate the same. So I would say it is NOT a scam, but you do need to get your check before you send them the final documents and title transfer.
No Jim, most states laws say there is a minimum amount to be paid for consideration. No need to provide anymore information in a private transaction than is required by laws.
You are correct that is not a scam.
You might want to reconsider that sales offer. Grayson Mills Williston LLC has been doing quite a bit of leasing in section 13 over the last few months. They are offering at least 20% leases, so looks like there may be some drilling coming. That section does not have a horizontal well yet and you are surrounded by horizontal wells. Note the sections to the northeast of you with multiple wells!
