We are 14 cousins in Norway who have inherited a quarter in Williston county, Township 153 North, Range 100 West. It was the homestead of our grandparents. We are now approached by Sundance Oil&Gas in Bismarck who represents Oasis Oil. Sundance wants to put a rig on our land a and offers 2.000USD an acre for access and 7.000 to build a road. Then 2.000 as a lease every year. They need 6 acres so all together this offer is 20.000USD before the 2.000 lease. As for time length, they said they then would have the right to drill as long as they wanted. I asked about royalty and the man referred to a "production hold" agreement regarding some drilling going on on the neighboring property and where we have received a small amount of money since the 1970's. I do not understand much of this and thought we should have the right to know how big a percentage they would offer?
Is this a fair offer?