Got a lease offer today on 10 acres I own in Northwestern North Dakota (Bakken Shale). There don't appear to be any active wells nearby (the next closest one is 3 sections to the South), and there is no guarantee that they will even drill one. I am being offered a typical 3 year lease with a per acre bonus and 3/16 royalty. Given that my portion of the overall production unit (and thus my share of the royalties - assuming drilling even takes place) will likely be very small, do you think it would be reasonable to ask for a larger bonus up front? I had planned on negotiating the bonus upward a little anyway, since it looks to be a few hundred less than what others have been getting out there lately.
By the way, what is an average production unit size in NW North Dakota? Also, I think I read somewhere that the average well in the Bakken only produces 50-80 barrels a day. Is this true? If this is the case, like I wrote earlier, I really don't think I can bank on my royalties here...
The company making the offer is doing so on the behalf of the drilling company. I have not researched the title in depth, although I would like to think that THEY have (title research and due diligence is one of the services this company advertises and provides to their clients). Either way, I was hoping to put a clause in the contract absolving me of any liability or having to pay back money if there is ever any problem with the title or mineral rights ownership. Are most companies amenable to that?
Thanks everyone for your help...