# Mountrail County- Lease Offer from Hess
**URL:** https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958
**Category:** Mountrail County, ND
**Created:** [January 16, 2020, 8:31pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958 "2020-01-16T20:31:52Z")
**Posts on this page:** 7
**Page:** 1
### Author:  [@Garren\_Hartman](https://www.mineralrightsforum.com/u/Garren_Hartman)
#### Post date: [January 16, 2020, 8:31pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/1 "2020-01-16T20:31:52Z")
Hello all! Could use some help if possible. Link below to prior discussion here…
> [@NEW LEASE QUESTION, please help- MOUNTRAIL CO](https://www.mineralrightsforum.com/t/new-lease-question-please-help-mountrail-co/2942/5):
>
> Here is what I found. There is a well drilled in Section 17 that has two short legs, one that goes into the NW quarter of Section 20, the other leg goes into the SE quarter of Section 18. Someone might have signed a really horrible lease and this well is holding a lot of acreage. This well has produced 16 barrels of oil from January through March this year. That well doesn’t look like it’s paying the bills. Of the wells with wellheads in Section 20, none of them have produced in 40 years. Intere…
Now, I received a lease offer on this area. Seems a bit odd but wanting to respond. Not sure how much I can negotiate on this.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [January 18, 2020, 9:57pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/2 "2020-01-18T21:57:56Z")
Is the lease offer for a different zone or is it a “top lease” in that they are trying to get the former lease broken?
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### Author:  [@shamlet76](https://www.mineralrightsforum.com/u/shamlet76)
#### Post date: [January 20, 2020, 1:45pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/3 "2020-01-20T13:45:40Z")
I do not see a Township or Range for this, just Section numbers. The name of the oilfield is helpful. Name of the wells are helpful.
I would recommend: [https://www.dmr.nd.gov/oilgas/](https://www.dmr.nd.gov/oilgas/)
I recommend you look at GIS map server, daily activity reports, active drilling rigs, hearing dockets, confidential well list (although some wells on that list may just be permits and not yet drilled/started).
General statistics for each month for your oilfield. Information center has director’s monthly information called director’s cut. Recent presentations can give you an overview of ND and an overview of well drilling/well production.
The more you know about the industry, trends, geology, geography, the more it will benefit you when making decisions. There is a learning curve on becoming educated about all of this. The more you know, the better decisions you will likely make.
As for leasing, I think right now money is tight in the industry so offers are lower than in the recent past. But some areas are still being actively sought for leasing and drilling because their initial output is very high so that the operators can recover the cost of the well very quickly.
While oil drillers sometimes make mistakes, I would not assume that they made mistakes in your mineral rights without knowing more than you have posted. More recent wells generally have yielded better results than earlier wells because the oil drillers know more about the underground formations and technology has improved over time.
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### Author:  [@Garren\_Hartman](https://www.mineralrightsforum.com/u/Garren_Hartman)
#### Post date: [January 21, 2020, 8:25pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/4 "2020-01-21T20:25:33Z")
We have minerals in Township 158 North, Range 94 West Section 20 with no well yet. Got a lease offer from Hess. 20% royalty, 3-year term, and an acre bonus. Anybody have an idea what going bonus price per acre is for this area? We had a prior lease in this area for $1,750 per acre. Is it now lower or higher…? Just trying to get some feedback if possible, THANK YOU!
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### Author:  [@shamlet76](https://www.mineralrightsforum.com/u/shamlet76)
#### Post date: [January 22, 2020, 1:01am UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/5 "2020-01-22T01:01:11Z")
Tioga oilfield on the border of east Tioga oilfield.
You can ask the ND Department of Mineral Resources for the exhibits for Case No. 27361 which appears to request authority to drill up to 12 wells per drilling/spacing unit. There was also a case brought to be able to drill along the boundaries of some of the drilling/spacing units and that might have updated well economics in the exhibits. Hess brought that case, meaning they are likely the majority leaseholder named as oil producer for this drilling/spacing unit. This does not mean they will drill 12 wells immediately but may be more of a long-term outlook in the next 5-10 years.
There are other possible lessees that could be interested, such as PetroHunt and Liberty Resources.
Initial bonuses are likely to be much lower. Oil prices are lower and oil producer capital budgets are much lower. Initial bonuses are to induce you to accept the royalty rate offered. They will pay the initial bonus once upon lease acceptance, not for every well drilled.
Look carefully at any termination clauses, at any extension requested after the initial lease term. You might want a Pugh clause if you have interests in multiple drilling/spacing units. If you have a significant amount of mineral interests, you might want to hire an ND attorney with experience in oil and gas to guide you in the process.
Royalty rate offered often starts with 3/16ths so you are ahead there. Hess just started working that area again recently.
I am just another mineral rights owner in the area.
Good luck.
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### Author:  [@Garren\_Hartman](https://www.mineralrightsforum.com/u/Garren_Hartman)
#### Post date: [January 25, 2020, 4:45pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/6 "2020-01-25T16:45:04Z")
The letter we received also says they plan to spud a well in April 2020. Royalty percentage is good at 20% but what negotiating power do I have on the $1000 per acre bonus offer. Our previous lease of 5 years ago (now expired) was for $1750 per acre. Any ideas please? Thank you!
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### Author:  [@Kenny\_DuBose](https://www.mineralrightsforum.com/u/Kenny_DuBose)
#### Post date: [April 15, 2020, 3:07pm UTC](https://www.mineralrightsforum.com/t/mountrail-county-lease-offer-from-hess/54958/8 "2020-04-15T15:07:50Z")