In the case of number 3. Do yourself a favor and get a check. They may not honor/pay the draft and record the lease anyway. They will have tied up your minerals til you take action to clear your title. I have accepted drafts 3 times for which leases were recorded , and none of the 3 were honored / paid.
Mineral Joe said:
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 lessor)
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 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.
Thank you all for the advice & information, it's been a very interesting few days.
What's the best deal? Much higher bonus per acre then originally offered with 1/6 or slightly higher bonus with 3/16ths, both with a 3 yr. lease.
r w kennedy said:
In the case of number 3. Do yourself a favor and get a check. They may not honor/pay the draft and record the lease anyway. They will have tied up your minerals til you take action to clear your title. I have accepted drafts 3 times for which leases were recorded , and none of the 3 were honored / paid.
Mineral Joe said:
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 lessor)
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 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.
There has been $800/acre 3 yrs 3/16 up in that area. FYI
Anne Zepp said:
Thank you all for the advice & information, it's been a very interesting few days.
What's the best deal? Much higher bonus per acre then originally offered with 1/6 or slightly higher bonus with 3/16ths, both with a 3 yr. lease.
r w kennedy said:
In the case of number 3. Do yourself a favor and get a check. They may not honor/pay the draft and record the lease anyway. They will have tied up your minerals til you take action to clear your title. I have accepted drafts 3 times for which leases were recorded , and none of the 3 were honored / paid.
Mineral Joe said:
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 lessor)
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 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.
I'm a geologist and I leased 1800 acres just north of you in T157N R101W bordering on top of two new wells.
I can beat that number and will supply a 20% landowner royalty as well for a three year paid-up lease
Please respond ASAP!!!! I'm not kidding.. 936-697-9050 anytime
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 can be reached at 218-444-2615 evenings, you would need to talk to my self and my sister. We can do a 3 way conversation. Looking forward to hearing from you to discuss this. Julie
Jim Levy said:
Julie
I'm a geologist and I leased 1800 acres just north of you in T157N R101W bordering on top of two new wells.
I can beat that number and will supply a 20% landowner royalty as well for a three year paid-up lease
Please respond ASAP!!!! I'm not kidding.. 936-697-9050 anytime
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
Phillip sounds like he is being helpful. I am a petroleum landman and would be happy to speak with you regarding your current offer and best ways of handling this and future opportunities.
This is supposed to be a forum where the members help each other and share information. It is therefore extremely discomforting that some people are using this forum for personal gain.
I too am disturbed that the moderator does not shut down people who hang on this forum looking to contact unschooled mineral owners for their own gain.
If someone contacts you on here, please do not agree to anything. Compare their offer by contacting Continental, Brigham, XTO, Petro Hunt, etc.
Or jump over to the Google Bakken discussion that is a true advice board, and forbids soliciting business:
There are many unscrupulous individuals in not only the oil and gas industry but all industries. These individuals often make our job that much harder.
There are many unscrupulous individuals in not only the oil and gas industry but all industries. These individuals often make our job that much harder.
There are many unscrupulous individuals in not only the oil and gas industry but all industries. These individuals often make our job that much harder.
Why would it be a bad thing to lease to someone who sells the lease again. 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
The NDRIN (North Dakota Recorders Information Network) database has many leases that were signed in 2010 with a royalty rate of 1/6 (16.6%) (generally smaller companies/speculators with fast talking landsmen.) These leases are then packaged up and sold to other oil companies for 20% (the going rate in ND). The folks that sell 'em retain the spread on the royalty. So, you sign at 16.6% and the landman/small company/speculator that you signed with gets a 3.4% royalty on your minerals. That's one big reason to do the research on who's leasing in your area before signing.
Amen to your answer. I leased to a broker in 2008 and during that time the $ bonus and % royalty was much lower but knowing what I do now, I could have negotiated a much higher amount with an actual drilling company. If I have the opportunity to lease again and at the rate these wells are being drilled, I probably will, then I will only deal with a drilling company directly. I have studied all areas of leasing and keep up with the latest rates so I believe that I will be in a much better position to handle lease negotiations.
Bertha Rodda said:
Just my 2 cents...
The NDRIN (North Dakota Recorders Information Network) database has many leases that were signed in 2010 with a royalty rate of 1/6 (16.6%) (generally smaller companies/speculators with fast talking landsmen.) These leases are then packaged up and sold to other oil companies for 20% (the going rate in ND). The folks that sell 'em retain the spread on the royalty. So, you sign at 16.6% and the landman/small company/speculator that you signed with gets a 3.4% royalty on your minerals. That's one big reason to do the research on who's leasing in your area before signing.
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.
There are 2-3 companies is all that are buying leases in that area at this time. It is also difficult to obtain a straight 3 year lease in that area. I have seen many leases in that township at 3/16 RI so that should not be a problem. You are close to a well the Petro did a few years back that is not by any means a barn burner, so that plays into the length.
Mat
RF said:
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.
Our minerals are in T157;R103W;Sections 29 and 31. How far away is that Petro well from our area? There is a couple of Confidential Wells which were drilled by Oasis near our area but will not know for a couple of months whether these are good wells.
Mat Ekblad said:
RF
There are 2-3 companies is all that are buying leases in that area at this time. It is also difficult to obtain a straight 3 year lease in that area. I have seen many leases in that township at 3/16 RI so that should not be a problem. You are close to a well the Petro did a few years back that is not by any means a barn burner, so that plays into the length.
Mat
RF said:
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.
Our minerals are in T157;R103W;Sections 29 and 31. How far away is that Petro well from our area? There is a couple of Confidential Wells which were drilled by Oasis near our area but will not know for a couple of months whether these are good wells.
Mat Ekblad said:
RF
There are 2-3 companies is all that are buying leases in that area at this time. It is also difficult to obtain a straight 3 year lease in that area. I have seen many leases in that township at 3/16 RI so that should not be a problem. You are close to a well the Petro did a few years back that is not by any means a barn burner, so that plays into the length.
Mat
RF said:
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.
Do you expect much drilling activity this year in the area where our minerals are located? Currentyly, G-3 Operating has the area spaced.
Mat Ekblad said:
Charles
That well is North and East of your location.
charles s mallory said:
Mat:
Our minerals are in T157;R103W;Sections 29 and 31. How far away is that Petro well from our area? There is a couple of Confidential Wells which were drilled by Oasis near our area but will not know for a couple of months whether these are good wells.
Mat Ekblad said:
RF
There are 2-3 companies is all that are buying leases in that area at this time. It is also difficult to obtain a straight 3 year lease in that area. I have seen many leases in that township at 3/16 RI so that should not be a problem. You are close to a well the Petro did a few years back that is not by any means a barn burner, so that plays into the length.
Mat
RF said:
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.
Thanks for your reply to my question. That well you are referencing was recently purchased and reworked by Baytex Energy. The output has increased tremendously hopefuly for long term. We have some royalties coming in from the shares we own in section 4 where the Petro now Baytex well is but our shares in section 5 are currently available to lease. It appears that Petro, Baytex, Newfield, and a few others are in the county but I am not sure whether to try to contact them direct or not. Should a person contact the drilling companys like Baytex dirrect to see if they would be interested in leasing our minerals or do they go through a particular secondary leasing Co.? Is it possible that no one will be interested for now as my Uncle and his family all sold out thier shares to Dale and my Step Mother leased her's to them thus leaving my sister's and my 1/9th shares each still out there? I am learning alot by reading these boards as my father was the one who handled all the prior leasing that has gone on with our minerals up until now but he passed in 2007 shorly after that Petro well went in. Thanks again for your reply.
Ron Forsberg
Mat Ekblad said:
RF
There are 2-3 companies is all that are buying leases in that area at this time. It is also difficult to obtain a straight 3 year lease in that area. I have seen many leases in that township at 3/16 RI so that should not be a problem. You are close to a well the Petro did a few years back that is not by any means a barn burner, so that plays into the length.
Mat
RF said:
My sister and I have some acres that have come available for lease as of Feb. 11th in Williams County 159, 99, 5.
The prior lease holder was Hunt but we have not been contacted by them yet. A company by the name of Dale Resorces has leased my step Mothers shares but don't want to lease anymore at this time but would like to buy our rights. We don't want to sell them so we were wondering how to find some good reputable companies to contact to about leasing them. My step Mother got $650.00 per acre, 3yr, and 3/16 royalty. Thanks in advance for any help you can provide.