I just received an offer of $8500 per acre for my 20 acres in McKenzie County, Section 21, Township 150N, Range 96W. I appreciate all of the information I've received from all of you, mulling over if I'm interested in selling.
Bette:
Looking at the GIS map, you have several wells in your mineral area which I suppose you are currently receiving royalties on. You need to learn the production figures for these wells and determine whether the $8500/acre would be low compared to the overall payout on the lease. I don't subscribe to the NDIC publication that shows the production but I would do some serious calculating before considering selling the minerals. Also, read your leases and identify any pugh clauses which might be included. This would give additional leasing ability in the future. Again, look at all factors before making a final decision.
From a brief look, I think you will make at least as much from keeping the minerals in the next 5 years as you would selling them now. There is the possibility of many future wells in an area that good. If you have to pay 15% capital gains tax on what you receive from the minerals, it drops the amount realised to $7,225. On the other hand, you receive a 15% depletion credit for what you make off your wells. I think you are over 3 produceable formations, possibly 4 or more and they have probably only drilled on one or two. Sell if it really suits you but I think with acres as good as yours, it would be a mistake if you did not truly have to sell. There is also a good chance that you could do both, keep the minerals for a year or two and get the cream off the top of the recent wells and then sell for the same price thus rceiving more per acre than the sale alone would allow. I have wells fairly near yours and they have been producing for about 5 years and I received an offer of $10,000 per acre six months ago, collecting a little royalty will not hurt your acres value. The less of a hurry you are in, the more money you will make. Time is on your side. Good luck with your decision.