What is the difference between someone owning 8 mineral rightss compared to 15? what is the technical definaition of a “mineral right”?
Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
it kind of makes since. I dont understand how people are making so much money. we just got a lease offer on our 8 mineral rights on 160 acre property. all our lease says is that we get 3/16- 18% on 160 acres. how do i do this math? is this even worth signing?
charles s mallory said:
Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
Shawana:
Sounds like a landman or company is trying to lease minerals which you own. I don't know where these minerals are located so I can't comment about the offer that has been made. My advice would be to contact an oil and gas attorney in your area for assistence in this matter. Also, it could be money in your pocket for the future so I would defintely lease these minerals to someone.
Shawna said:
it kind of makes since. I dont understand how people are making so much money. we just got a lease offer on our 8 mineral rights on 160 acre property. all our lease says is that we get 3/16- 18% on 160 acres. how do i do this math? is this even worth signing?
charles s mallory said:Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
I’m trying to figure out the facts and figures. we own 8 mineralrights of 160 acres. The property is in Ambrose, ND in Divide county. It’s township 163N Range 99W Section 24 NE 1/4. We were offered 3/16 royalties. How do i figure out what will be made?
mallory said:
Shawana:
Sounds like a landman or company is trying to lease minerals which you own. I don't know where these minerals are located so I can't comment about the offer that has been made. My advice would be to contact an oil and gas in your area for assistence in this matter. Also, it could be money in your pocket so I would defintely lease these minerals to someone.
Shawna said:it kind of makes since. I dont understand how people are so much money. we just got a lease offer on our 8 mineral rights on 160 acre property. all our lease says is that we get 3/16- 18% on 160 acres. how do i do this math? is this even worth signing?
charles s mallory said:Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
Shawna:
Lets say you own 8 acres in a 160 acre tract. When you lease these 8 acres, you will be paid 8 x whatever $ amount per net mineral acre that is negotiated in the lease agreement. You can view past mineral sales in ND via the internet. Divide County in ND has been very active in both drilling and leasing so you should be able to get a good lease (money wise). Also, you can go to the North Dakota Industrial Commission website and find additional information including a list of FAQ.
Shawna said:
I'm trying to figure out the facts and figures. we own 8 mineralrights of 160 acres. The property is in Ambrose, ND in Divide county. It's township 163N Range 99W Section 24 NE 1/4. We were offered 3/16 royalties. How do i figure out what will be made?
mallory said:Shawana:
Sounds like a landman or company is trying to lease minerals which you own. I don't know where these minerals are located so I can't comment about the offer that has been made. My advice would be to contact an oil and gas in your area for assistence in this matter. Also, it could be money in your pocket so I would defintely lease these minerals to someone.
Shawna said:it kind of makes since. I dont understand how people are so much money. we just got a lease offer on our 8 mineral rights on 160 acre property. all our lease says is that we get 3/16- 18% on 160 acres. how do i do this math? is this even worth signing?
charles s mallory said:Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
I have searched and searched and i cant seem to figure it out on the lease i says they want to put a 1280 unit acre on our property so since we only own 8 mineral rights of 160 acre does that mean 8/1280 x 3/16??
charles s mallory said:
Shawna:
Lets say you own 8 acres in a 160 acre tract. When you lease these 8 acres, you will be paid 8 x whatever $ amount per net mineral acre that is negotiated in the lease agreement. You can view past mineral sales in ND via the internet. Divide County in ND has been very active in both drilling and leasing so you should be able to get a good lease (money wise). Also, you can go to the North Dakota Industrial Commission website and find additional information including a list of FAQ.
Shawna said:I'm trying to figure out the facts and figures. we own 8 mineralrights of 160 acres. The property is in Ambrose, ND in Divide county. It's township 163N Range 99W Section 24 NE 1/4. We were offered 3/16 royalties. How do i figure out what will be made?
mallory said:Shawana:
Sounds like a landman or company is trying to lease minerals which you own. I don't know where these minerals are located so I can't comment about the offer that has been made. My advice would be to contact an oil and gas in your area for assistence in this matter. Also, it could be money in your pocket so I would defintely lease these minerals to someone.
Shawna said:it kind of makes since. I dont understand how people are so much money. we just got a lease offer on our 8 mineral rights on 160 acre property. all our lease says is that we get 3/16- 18% on 160 acres. how do i do this math? is this even worth signing?
charles s mallory said:Shawna:
Mineral rights are the ownership of minerals under the ground surface (in most cases this means oil and gas). Mineral ownership is usually designated in acres or fractions of. The owner of mineral rights can lease their minerals for a negotiated price and terms in a lease agreement. I am not certain whether you are referring to 8 and 15 acres or .8 and .15 acres in your question. Hope this answers your questions.
Shawna said:
I have searched and searched and i cant seem to figure it out on the lease i says they want to put a 1280 unit acre on our property so since we only own 8 mineral rights of 160 acre does that mean 8/1280 x 3/16??
...I am new to mineral leasing, but it sounds to me that they want to place a well on a 1280 acre property (two 640 acre sections) In that case, yes you would get your 8/1280 share of the oil, the oil company would get 13/16ths of that 8 acre share and you the 3/16th of the 8 acre share. You can't know a dollar amount untill a well is producing as this is on the barrels of oil flowing from the well. Further language in the contract will determine if that is paid on price at the well or after transportation costs are deducted. Hope my explanation helps. Mike Miller, Elizabeth CO
well we figured it all out. we only own 8 acres of the 1280 they want to drill on at 3/16-18.75% royalties. which i think i was doing the math right would only come out to about 3000/month. this is good i think, not great, but good. some of my family thinks we should just sell the mineral rights, they think we can get more. what do u think? someone please help is it better to sell or lease when u have such little mineral rights?
Mike Miller said:
Shawna said:I have searched and searched and i cant seem to figure it out on the lease i says they want to put a 1280 unit acre on our property so since we only own 8 mineral rights of 160 acre does that mean 8/1280 x 3/16??
...I am new to mineral leasing, but it sounds to me that they want to place a well on a 1280 acre property (two 640 acre sections) In that case, yes you would get your 8/1280 share of the oil, the oil company would get 13/16ths of that 8 acre share and you the 3/16th of the 8 acre share. You can't know a dollar amount untill a well is producing as this is on the barrels of oil flowing from the well. Further language in the contract will determine if that is paid on price at the well or after transportation costs are deducted. Hope my explanation helps. Mike Miller, Elizabeth CO
Shawna:
It is my advice to you and your family to not sell these minerals. This small amount of acreage could produce a substantial amount of money over the next few years. If someone offers you an attractive price for these 8 acres, you can bet that they are figuring to add greatly to their investment over the long haul.
Shawna said:
well we figured it all out. we only own 8 acres of the 1280 they want to drill on at 3/16-18.75% royalties. which i think i was doing the math right would only come out to about 3000/month. this is good i think, not great, but good. some of my family thinks we should just sell the mineral rights, they think we can get more. what do u think? someone please help is it better to sell or lease when u have such little mineral rights?
Mike Miller said:
Shawna said:I have searched and searched and i cant seem to figure it out on the lease i says they want to put a 1280 unit acre on our property so since we only own 8 mineral rights of 160 acre does that mean 8/1280 x 3/16??
...I am new to mineral leasing, but it sounds to me that they want to place a well on a 1280 acre property (two 640 acre sections) In that case, yes you would get your 8/1280 share of the oil, the oil company would get 13/16ths of that 8 acre share and you the 3/16th of the 8 acre share. You can't know a dollar amount untill a well is producing as this is on the barrels of oil flowing from the well. Further language in the contract will determine if that is paid on price at the well or after transportation costs are deducted. Hope my explanation helps. Mike Miller, Elizabeth CO
Thank you very much!
charles s mallory said:
Shawna:
It is my advice to you and your family to not sell these minerals. This small amount of acreage could produce a substantial amount of money over the next few years. If someone offers you an attractive price for these 8 acres, you can bet that they are figuring to add greatly to their investment over the long haul.
Shawna said:well we figured it all out. we only own 8 acres of the 1280 they want to drill on at 3/16-18.75% royalties. which i think i was doing the math right would only come out to about 3000/month. this is good i think, not great, but good. some of my family thinks we should just sell the mineral rights, they think we can get more. what do u think? someone please help is it better to sell or lease when u have such little mineral rights?
Mike Miller said:
Shawna said:I have searched and searched and i cant seem to figure it out on the lease i says they want to put a 1280 unit acre on our property so since we only own 8 mineral rights of 160 acre does that mean 8/1280 x 3/16??
...I am new to mineral leasing, but it sounds to me that they want to place a well on a 1280 acre property (two 640 acre sections) In that case, yes you would get your 8/1280 share of the oil, the oil company would get 13/16ths of that 8 acre share and you the 3/16th of the 8 acre share. You can't know a dollar amount untill a well is producing as this is on the barrels of oil flowing from the well. Further language in the contract will determine if that is paid on price at the well or after transportation costs are deducted. Hope my explanation helps. Mike Miller, Elizabeth CO