I have been contacted by two landmen regarding my mineral rights in McKenzie County. I feel they both offered very low terms. I have searched and searched to determine an average or a rate for my particular area. I don not live in ND and feel I have no where to find current trends in lease rates. I am wondering if anyone can help me determine a fair value. Secondly, I am wondering if there are businesses that negotiate for the best terms that are familiar with the area. I leased some mineral rights in Williams County last year and now I feel I probably didn’t have enough knowledge to get a fair deal. I didn’t realize the offer could be negotiated.
Hi. We have property in McKenzie County and are about to renew our lease, this time for $300 an acre bonus, 3/16th royalty and a three year lease with no option. Try to find out what others near you have received. It doesn’t hurt to ask for more rather than less and see what happens. Good luck.
Carol- Thank you. I am at T153N - R101W sec 6 lot 10 and Sec 7 portions of lots 1,4,5. Is that near you?
Carol Pattee said:
Hi. We have property in McKenzie County and are about to renew our lease, this time for $300 an acre bonus, 3/16th royalty and a three year lease with no option. Try to find out what others near you have received. It doesn’t hurt to ask for more rather than less and see what happens. Good luck.
Hi. I am about 10 miles south and 26 miles east of your property. If you go to https://www.dmr.nd.gov/oilgas/ and then look at the GIS Map, you can see your sections and all the wells south and southwest of you. There are a lot of them. It will show horizontal wells by a black dot with a line. What you don’t know is how successful the wells are in your area. You have way more wells in your area than we do. We are in T152N,R98W. There is another site you can go to where you type in your township and range and it will pull up wells in your specific area.
I am on another Bakken group and will ask if anyone knows anything about your area. Keep reading everything.
Suzanne Vohs said:
Carol- Thank you. I am at T153N - R101W sec 6 lot 10 and Sec 7 portions of lots 1,4,5. Is that near you?
Carol Pattee said:Hi. We have property in McKenzie County and are about to renew our lease, this time for $300 an acre bonus, 3/16th royalty and a three year lease with no option. Try to find out what others near you have received. It doesn’t hurt to ask for more rather than less and see what happens. Good luck.
Hi, Again, Suzanne. Here is a reply to one of my inquiries about your area.
<<<<Hi again. How are you? I don’t know about those wells but I might be able to find out if her offer was low or not. After I leased my acreage for $400/acre, I was offered $550. Wouldn’t ya know. Anyway, If you let me know her offer I can run it by the guy and see if he can beat the offer. At least that can let us know what some of the top paying lessee’s are thinking. Bye for now and happy Holidays.
John>>>>
He is from the Bakken Shale Discussion Group on Google.
Carol
Carol- I last told them I wanted $325. for 3 years 5/16’s and allowing the option to extend for 1 or 2 years. They had offered me $250. and 1/6th for 3 years with an option for 1 or 2 year extension. I am not sure if my counter was met with a groan or not. I am awaiting his reply on that. Thank you for telling me where I can see a map of what is being done in my area. I will go to that web site now. Please let me know if John (from your other discussion group) has more info. $550. is a lot more than $325. I so appreciate your assistance and that is a gross understatement. Please let me know if John has any new information.
Carol Pattee said:
Hi, Again, Suzanne. Here is a reply to one of my inquiries about your area.
<<<<Hi again. How are you? I don’t know about those wells but I might be
able to find out if her offer was low or not. After I leased my
acreage for $400/acre, I was offered $550. Wouldn’t ya know. Anyway,
If you let me know her offer I can run it by the guy and see if he can
beat the offer. At least that can let us know what some of the top
paying lessee’s are thinking. Bye for now and happy Holidays.
John>>>>
He is from the Bakken Shale Discussion Group on Google.
Carol
Carol & Suzanne
I have been following your discussion with interest and was wondering whether or not you know of any neighborhood or community groups that have joined together in order to have more negotiating power with the landmen? Even if you are rural acreage owners, you can still form a coalition especially if you represent property that is highly prized by the O&G folks. If there are more than 1 or 2 companies vying for your mineral rights, you just might be able to get a better deal.
That’s what we did down here in TX in the Barnett Shale and it worked out well for us.
Jim
Lo and behold the offer just took a big jump and the option disappeared! This happened out of the blue. From a new landman. That makes three. Something HAS GOT TO BE happening in that little corner! Looking forward>>>>>>>to this.
Jim Colley said:
Carol & Suzanne
I have been following your discussion with interest and was wondering whether or not you know of any neighborhood or community groups that have joined together in order to have more negotiating power with the landmen? Even if you are rural acreage owners, you can still form a coalition especially if you represent property that is highly prized by the O&G folks. If there are more than 1 or 2 companies vying for your mineral rights, you just might be able to get a better deal.
That’s what we did down here in TX in the Barnett Shale and it worked out well for us.
Jim