Our family owns mineral rights to 45 acres in the Williston field Section 7, Township 154, Range 100. We recently received a lease offer for 3 years $ 500.00 per acre, 1/8th royalty modified to 3/16th. The land man says the company is relatively new and we can not find any information on either him or the company he is representing. From what I have read it seems like we would be better off working with a company that has the capability of drilling and has wells in the area. I would appreciate any information on how to contact companies currently in the area. I would also appreciate any suggestions on how to proceed to market a lease.
Considering that the normal royalty in ND is 1/6, you should probably think twice about whoever made you the low ball 1/8 offer.
Can you determine who is drilling in the area? There are lots of big companies drilling–Brigham, Continental, XTO, EOG, etc. I would google to find out how to contact the big companies who I assume would link you up with whatever landmen are leasing for them in the area. Then I wouldn’t be in a hurry to sign a lease. Wait awhile to see if they up their offers. And have someone look over your lease to make sure you are protected with a Pugh Clause.