We have a landman who just contacted us for leasing mineral rights and is offering about $600 per acre and 18%. Negotiations are in the early stage ... we'll see if we can strike a deal, as right now we think his offer is low compared to what others in the area are getting (i.e., 20%).
We tried going to the ND GIS MAP Server to look up activity in the area, but can't figure out how to use it or how to look up our land: T:143N, R:93W, S:29&32
We're new to all this, so would love to hear from those of you who are experienced at leasing out your mineral rights, and see what you think our mineral rights are worth, and how productive is this area?
A lot of it depends on location, location. I just "top leased" for $1500/nma, and mine was located T 145, R 95 Sec 23. It looks to be a very active area. I top leased with the same company who currently holds my mineral lease & I might have gotten a bit more money because they wanted " a guarantee" on that spot. The landman said Denbury planned to drill on the location but didn't know if they would get to it before Sept. when my current lease expires. Burlington & Continental appear to be drilling around my location & I guess Denbury didn't want them to come in a try to lease from me. I would definately ask for a 20% royalty & when you do agree on a lease, ask them to give you 50% bonus money up front & then you'll get the other 50% when the lease goes into effect. If this is a brand new lease, then you should get all the money up front. As far as the NDIC site, once you're there, look at the GIS server map. Once that opens up, you can put in the Township, Range & section on the bottom of the screen, It will then take you right to the location of your land & you will be able to see the number of wells in your area that are being drilled. Should give a little better idea. Don't expect to get paid the same as what you see being offered on ND State Auction sites. That's land that belong to the state, and generally, oil companies pay the state more for their minerla rights.
Thanks for all the great tips! Was able to get into the GIS map server on a different computer ... on my laptop, the "Find a Section" button wasn't showing up.
From that map, we see there's a producing well about 2-3 miles away with lots more beyond that.
What's the usual length of most leases? How short will they go on the number of years and what should we shoot for?
They used to almost always go for 5 years, but now 3 years is very common. I wouldn't go for more than 3 years. I wouldn't settle for $600/nma. Hold out for more & if they won't give it to you, someone else will.
The going rate varies. Lact Oct. I was approached about SELLING my rights for $1500/nma, which I turned down. I told him I would consider leasing for $500/nma with a 20% royalty-never heard back. I'm glad I waited because as I said I was offered & agreed to LEASE for $1500/nma. I don't know if I would've gotten that much if it was a top lease.
Pllease beware of C.A. Crouch Companies as they are subject of lawsuits and nonpayment. He had a contract with Romac Energy charged them 1100.00 per acre on 1712.62 net acres. After he assigned the leases at closing the owner voided the leases as Crouch failed to pay the bouns in full. He paid the Bobb family and Jaeger family a total of $394,057.65 and netted over 1.4 million dollars. So he well could have afforded to pay them in full however he had to buy a new house instead.
Kay, can you tell me who you leased at 1500 with? If you don't want to disclose here you could email me.... We just had a lease for 146 acres and lessee only paid on 50%, so remaining 50% is available for lease again? Anyone getting more than 1500 in township 143, section 18?