We recently received an oil & gas lease for 160 acres in Williams County North Dakota. The bonus/acre is $650.00.
Is this in keeping with what's currently going on in the area?
Anne;
Pull up "North Dakota Industrial Commission" website; click on the following in order: 1. Related Links 2. North Dakota State Land Dept. 3. Minerals Mgt. Division 4. Sale by County 5. Enter Williams County. You can view recent mineral sales in that area. I don't know where you're minerals are located but appears from this website, the bonus/acre amount is too low. Shop around with companies doing drilling in that area. I would approach them with a 3 year lease and 20% royalty. Good luck in your dealings!!
Thank you for the information. I checked the recent sales, they are all in the same township & range as ours but the bonus amount for the majority of land is in the $4,000 plus range, all with the company that contacted us through their landman.
Like many others this is all new to me & I want to go in with as much information as possible.
Anne,
FWIW, and this is a little dated, I received $40.00 "per net mineral acre" on 320 acres in Burke County (township 162 north, range 92 west) in April of 2006. I had previously sold the land but retained the mineral rights. Since then, in May of 2010, a producing well was drilled on the property.
What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
It’s located in township 159, range 97, any information is appreciated.
Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:
What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
Julie:
I would limit the lease period to 3 years and ask for 20% on the royalty. You can refer to my posting above to get an idea on the $/acre. Good luck in your lease deal.
julie erickson said:
Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
Vicki and Julie
I am not that familiar with those parts of williams county. 2000 for that area may be overly ambitious but from my experience, you should always counter. 3 years and 18.75-20% royalty is fairly common...as for the bonus, 1000-1500 may be a more realistic figure. There is no rush in leasing unless you really need the money but if you don't, you can always tell them they're going to need to offer a better bonus with a 3 year and 3/16 to 20% royalty and see what they comeback with.
Anne
I am figuring that it is Continental that has contacted you. If you would like to contact me I would be happy to speak with you on the matter. I can get you a much better deal then what you have on the table.
Thanks
Mat
701-774-3161
Anne Zepp said:
It's located in township 159, range 97, any information is appreciated.
Julie
That area is not gaing as much dollar bills becuase of the lack of drilling history as well as the geologics of it. Petro-Hunt does own a portion of leases in there. It is difficult to gain 20% in a area that doesnt have alot of history.
Mat
julie erickson said:
Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
Mat:
We have minerals in T157N; R103W; Sections 29 & 31 which is leased until 2012. Our areas were spaced by G-3 Operating last year. I have been watching this particular Township/Range and it appears the drilling activity is slowly moving toward it. I think this particular area will see additional drilling in 2011.
Mat Ekblad said:
Julie
That area is not gaing as much dollar bills becuase of the lack of drilling history as well as the geologics of it. Petro-Hunt does own a portion of leases in there. It is difficult to gain 20% in a area that doesnt have alot of history.
Mat
julie erickson said:Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
I am not stating that it may not get drilled. G3 is running 1 rig and majority of the ownership is in your Township. G3 and PH are not as aggresive as a few of the other companies. Companies follow their leases, unless they fell in love with the geologics. The NW part of Williams County generally will not have leases expring until the 12-13 years.
charles s mallory said:
Mat:
We have minerals in T157N; R103W; Sections 29 & 31 which is leased until 2012. Our areas were spaced by G-3 Operating last year. I have been watching this particular Township/Range and it appears the drilling activity is slowly moving toward it. I think this particular area will see additional drilling in 2011.
Mat Ekblad said:Julie
That area is not gaing as much dollar bills becuase of the lack of drilling history as well as the geologics of it. Petro-Hunt does own a portion of leases in there. It is difficult to gain 20% in a area that doesnt have alot of history.
Mat
julie erickson said:Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
Mat Ekblad said:
I am not stating that it may not get drilled. G3 is running 1 rig and majority of the ownership is in your Township. G3 and PH are not as aggresive as a few of the other companies. Companies follow their leases, unless they fell in love with the geologics. The NW part of Williams County generally will not have leases expring until the 12-13 years.
charles s mallory said:Mat:
We have minerals in T157N; R103W; Sections 29 & 31 which is leased until 2012. Our areas were spaced by G-3 Operating last year. I have been watching this particular Township/Range and it appears the drilling activity is slowly moving toward it. I think this particular area will see additional drilling in 2011.
Mat Ekblad said:Julie
That area is not gaing as much dollar bills becuase of the lack of drilling history as well as the geologics of it. Petro-Hunt does own a portion of leases in there. It is difficult to gain 20% in a area that doesnt have alot of history.
Mat
julie erickson said:Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guessMa
Mat:
I have talked to G-3 which is actually Geo Resources and they stated that plan on adding additional rigs to the area in 2011 but who knows. We have about 38 net acres in this area but it would be a few additional bucks if a well is drilled. My main interest is in Roosevelt County, Montana just across the border where we have approx. 540 net acres in two Sections which were recently spaced by EOG Resources. I'm hoping the Montana drilling will pick up in 2011 and it appears a couple of new permits have been issued in that area.
Mat Ekblad said:
I am not stating that it may not get drilled. G3 is running 1 rig and majority of the ownership is in your Township. G3 and PH are not as aggresive as a few of the other companies. Companies follow their leases, unless they fell in love with the geologics. The NW part of Williams County generally will not have leases expring until the 12-13 years.
charles s mallory said:Mat:
We have minerals in T157N; R103W; Sections 29 & 31 which is leased until 2012. Our areas were spaced by G-3 Operating last year. I have been watching this particular Township/Range and it appears the drilling activity is slowly moving toward it. I think this particular area will see additional drilling in 2011.
Mat Ekblad said:Julie
That area is not gaing as much dollar bills becuase of the lack of drilling history as well as the geologics of it. Petro-Hunt does own a portion of leases in there. It is difficult to gain 20% in a area that doesnt have alot of history.
Mat
julie erickson said:Hi Philip, my family has mineral rights available to be leased in township 156 range 100 section 1SW/4
We have a possible offer of 5 years, 500.00 per acre with 18% royalty. What does this look like to you? we are new at this and can use some input. Thanks, Julie
Philip Mollner said:What township are your mineral rights in? The mineral leases on the nd website are 1/6 royalty but its pretty hard to get as much as the state did in bonus. I would say that you could get around 2000 per acre and a 20% royalty depending on which part. I am guessing your mineral rights are close to section 156 range 97 or 98 but that is just a guess
Anne,
You'll want to sign with a reputable company who will be drilling the well. If you sign a lease with a broker you will have no choice as to who will be drilling your well and paying you royalties. There are a lot of brokers out there and one in here that will sell or assign your lease to someone else and take a cut of what could be yours.
Thank you Joe for the reminder. My mother was offered a lease a few years back and turned it down because there was a part in the lease that looked like the company could re-lease to third party ( we also checked with oil men and they said take that part out). Does any one know about Bakken Oil LLC. We would like to lease but yes, it is wise to know who you are working with. Thanks again
Mineral Joe said:
Anne,
You'll want to sign with a reputable company who will be drilling the well. If you sign a lease with a broker you will have no choice as to who will be drilling your well and paying you royalties. There are a lot of brokers out there and one in here that will sell or assign your lease to someone else and take a cut of what could be yours.
Most companies use a brokerage to acquire there leases. If you own 10-20 acres in a 1280 acre DU if you lease your acerage to company B or C becuase they are getting you more money and better RI is will not detour any drilling operations.
Bakken Oil is a brokerage that buys leases for XTO Energy.
julie erickson said:
Thank you Joe for the reminder. My mother was offered a lease a few years back and turned it down because there was a part in the lease that looked like the company could re-lease to third party ( we also checked with oil men and they said take that part out). Does any one know about Bakken Oil LLC. We would like to lease but yes, it is wise to know who you are working with. Thanks again
Mineral Joe said:Anne,
You'll want to sign with a reputable company who will be drilling the well. If you sign a lease with a broker you will have no choice as to who will be drilling your well and paying you royalties. There are a lot of brokers out there and one in here that will sell or assign your lease to someone else and take a cut of what could be yours.
There are many, even on here, that will help you with leasing and lease negotiations for free. Most have smaller tracts but If you have larger tracts or somewhat valuable tracts you should hire someone like an oil & gas attorney or as everyone here knows, Mr Cotten of www.cottenoilproperties.com to work their magic and get you the best deal.
In North Dakota and in many other areas the best negotiation can be time itself, take your time and many times the offers and terms will increase.
Bakken Oil LLC is an independent land service company that works for anyone. Below is from their web site, notice the word clients as in plural meaning more than one.
Bakken Oil’s staff of experienced professionals has been specializing in petroleum, coal and natural resource services in the Williston Basin for many years. We offer a full range of land and oil and gas services from mineral takeoff and title reports, lease purchase, title curative, title abstracts and chain sheets, surface and road damages, well staking, right of way acquisition, mineral data management, prospect mapping and a host of other land services. Bakken Oil LLC works closely with all of our clients from the lease planning stage through well completion and beyond.
You basically have 3 types looking to lease:
1. Oil & gas exploration companies with their own leasing agents, (lease agreement will have their name as lessee)
2. Independent brokerage firms leasing as agents for Oil & gas exploration companies, (lease agreement may have brokerage firms name as lessee and then assigned later to the oil & gas firm they are leasing for or the oil & gas company may have their name as lessee)
3. Lease broker who speculates and leases mineral tracts from mineral right owners to shop them around to make a profit off the sale to an oil & gas company thru either the sale of the lease and or an override in any future wells.
Number 1 and 2 are always good. Number 3 can be good if they are good at what they do and your minerals are in an area that at the time is, well, not very hot and little or no lease activity going on.