I was just contacted today with an offer of $250 / acre for 40 acres in Twp 148 N, Range 101 W, Sec 15 in McKenzie County, N. Dak. Anybody know if that is near the going rate for that section? Bob Horton
Hi there, i just stumbled onto this site. We have been contacted ourselves by three different companies, CODY was the first and we went with them, they too started at 250.00 we assured them that we were getting much more than that and were not interested in that offer, they IMMEDIATELY went to 550.00. So they sent the contract and we just got the bank draft. Good luck.
Thanks Scott, Who were the other companies? Also what Range etc are your rights in?
Beside the bonus per acre, be sure you get the going rate in your area for the royalty percentage. That is more important in the long run.
Thanks for that advice Carol. Negotiations are ongoing and I hope to reach an agreement soon.
Hope you get a great lease. We have been contacted that they are staking our property and sent me certified papers to look over. I sent them on to my attorney. Hoping this means they intend to drill sometime soon. Maybe or maybe not but it’s fun.
Bob Horton said:
Thanks for that advice Carol. Negotiations are ongoing and I hope to reach an agreement soon.
Don’t forget to add a depth clause to your contract. Remember there is another oil formation below the Bakken. The Sanish Three Forks
Is that what is called a Pugh clause?
A pugh clause provides that at the end of the primary term of the Oil, Gas and Mineral Lease, any lands not included within a producing unit will be released from the lease. There is a “vertical pugh clause” which states, that “at the end of the primary term, all rights 100’ below deepest producing interval, revert to lessor”. Horizontal pugh clause states, that “at the end of the primary term all lands not included within a producing unit revert to lessor”. The vertical pugh clause can be created to specify at what depth the lands will be released. The purpose for these clauses is so that your minerals will not be tied up if they are not being explored for drilling.
Bob Horton said:
Is that what is called a Pugh clause?
Thank you Donald. That’s quite useful.
Carol Pattee said:
Beside the bonus per acre, be sure you get the going rate in your area for the royalty percentage. That is more important in the long run.
How do you find out what is “normal” bonus payment and royalty rates for your county?
Hi Carol, I’m not sure if my initial message made it - we have 74 acres close to you in McKenzie County - township 146 North, Range 98 West, Section 7. We received a bid from Diamond Resources, but based on this info, it seams low.
WIll you please share the name of the attorney you used and the approximate cost? Have been satisfied?
Thanks!
Carol Pattee said:
Hope you get a great lease. We have been contacted that they are staking our property and sent me certified papers to look over. I sent them on to my attorney. Hoping this means they intend to drill sometime soon. Maybe or maybe not but it’s fun.
Bob Horton said:Thanks for that advice Carol. Negotiations are ongoing and I hope to reach an agreement soon.
I used David Hermanson. He charged $200 per hour and customarily spends about 2 hours reviewing a contract. I was satisfied with his work although I had to do my on negotiating with the landman at Diamond (Levi Olsen). Hope this helps.
I would find out what the wells are doing in your area. The better oil wells do near you, the more you can ask. They always lowball the first offer.
Thank you, Bob. Did David Hermanson add sufficient clauses for water usage, damage repair, and associated costs that Diamond did not have in their contract or was that yours to define?
Bob Horton said:
I used David Hermanson. He charged $200 per hour and customarily spends about 2 hours reviewing a contract. I was satisfied with his work although I had to do my on negotiating with the landman at Diamond (Levi Olsen). Hope this helps.
That is why I contacted you Carol, both you and Bob Horton are in my area. The initial offer was $300 per acre.
Carol Pattee said:
I would find out what the wells are doing in your area. The better oil wells do near you, the more you can ask. They always lowball the first offer.
Fran White said:
Thank you, Bob. Did David Hermanson add sufficient clauses for water usage, damage repair, and associated costs that Diamond did not have in their contract or was that yours to define?
Bob Horton said:I used David Hermanson. He charged $200 per hour and customarily spends about 2 hours reviewing a contract. I was satisfied with his work although I had to do my on negotiating with the landman at Diamond (Levi Olsen). Hope this helps.
Fran, yes he did.
Take it from someone who knows - DON'T DO BUSINESS WITH BROSCHAT ENGINEERING - that guy is a crook.