MFMB, I don't forsee any activity in that area for at least a decade. I think so because of all the acreage that more is known about the productive capacity that is yet undrilled. There is very little reason to explore your area. There were vertical Madison wells up in 159 and someone may want to attempt something different in the future, but not soon I think.
This weekend we looked at the N.D. tax forms, and we became aware that even as non-resident of N.D. the taxing authorities are collecting taxes on income outside of N.D..
We'd like to know if anybody experienced the same, and if there is any solution to what we consider a mistake, and/or an abuse. Thanks.
If you are talking about royalty income from ND production to a nonresident of North Dakota, then yes they are now withholding for state taxes. The Legislature passed a new law. I don’t blame them. This really does not change much. I have made quarterly estimated tax payments to ND for years. Having the companies now withhold for that does not really change much. The good news is that ND taxes are really low and I just take a credit for such ND payments against my higher taxes in my state of residence. I really don’t think I end up paying a penny more and I figure I owe ND something for the big mess oil development brings (hookers, drugs, torn up roads, exploding oil trains, air pollution from flaring and redneck oil company workers).
Sorry you missed the issue. We don't mind paying taxes to N.D. for royalty income. What I am talking about is my income outside of N.D.
Specifically having to calculate N.D. tax based on line 43 of form 1040, which includes all income inside and outside N.D. (social security benefits, annuities, etc. ).
Regardless of how torn up North Dakota is they are not entitled to tax my income from sources outside of N.D.
Oh, that. Yeah, that is screwy. I think they do that to preserve the graduated tax rate aspect. Other states do this too. A couple of years ago, they thought they had me on a “gotcha”, but my ND income was chickenshit and by taking their calcs out to only 2 decimals (they switched to more later), they had to concede I owed them nothing. I am fine with paying my taxes, but I am glad I was right.
Has anyone been contacted by Great Northern Energy? Just received a call yesterday wanting to lease. 4 yrs and 19% royalty. They talked about being paid at the mouth of the well? Never heard of that. Any help would be appreciated.
Hello, Mr Kennedy
You have been very kind to share your thoughts about my mineral rights in different counties in North Dakota. I no long have have your current email. My questions is as follows: My 5 cousins and I were just contacted by Liberty Resources regarding one lone acre that belonged to my grandma who passed away in 1973. My question is it worth the money to open my grandmas probate in north Dakota (about $600.00) in order to get the mineral rights to be split 6 ways. The info on this lone acre is:
Township 158, Range 94, section 36, SW quadrant. This is next to my own acres and I am guessing that it is kind of "juicy" although I question if it is enough to pursue given that it is split 6 ways. I am interested in your thoughts or those of anyone else on this forum. Thanks as always.
Tammy Gallagher
Mr. Gallagher:
Did Liberty Resources request that you go through this process?
W.R. (Lynn) McArthur, Jr.
My oil and gas attorney did, as well as my cousin's attorney. This is more or less the process that I went through to get my name on the mineral rights that my parents had after they died.
Hello Tammy, the wells in that area are fair and yes the royalty would eventually pay back the $600 and then some. I hope everyone would contribute their share of the legal costs.
In my experience it would be worth it alone to keep your title straight. It has also become customary for operators in ND to require probate on even so little as 1/10th of an acre before they would pay royalty. There is no incentive in ND for an operator to accept title that is not up to date. $600 sounds like a reasonable amount. I suspect you are receiving a discount because of the size of the interest because the work to be done is the same whether 1 acre or 100 acres.
I own some working interest in Mountrail, Divide and McKenzie counties, interested in taking offers. Please send me a private message if you are interested in getting details.
Thank you!
Ben Samuels
I would like lawyer recommendations. It seems no matter how much paperwork I submit nothing is filed.