Greetings everyone. I don't know where to begin, but I will start. We are 5 adult children who inherited the mineral rights from our father who was left the mineral rights by his deceased father (our grandfather). We leased the mineral rights in the past to a company (Helis Oil & Gas Company, LLC % Energy Consultants, LLC) about 6 years ago. I believe the lease was for 5 years and likely has expired. We were each paid $425 at that time. I have taken this on as the information gatherer to try and help the siblings and I decide what to do. This has come to the forefront again because we have been receiving letters from a company called AEGIS Enery Partners, LLC. They are interested in purchasing our mineral rights. They reference the mineral rights as being located; 6 - 23 NORTH - 60 EAST, RICHLAND COUNTY, MONTANA. I did look up the location and I believe I found the correct location as being in the NE corner of Montana, near the North Dakota border. None of us live in the area. If I read the map correctly, there is one producing well on the section. I have no idea how this relates to where our mineral rights are located. I think my Dad's father had a farm in Sydney, Montana. How do I find out how many acres, or part of acre is involved with the mineral rights ownership? How are mineral rights valued? Where are the mineral rights located within the section? We/I have no idea where to begin and would like any information anyone can give me. I have to start somewhere, and I am asking for help from anyone who can throw some information my way. Thanks. Bob
Bob--my advise would be to hold on to those minerals. Don't sell. http://www.bogc.dnrc.mt.gov/onlinedata.asp
This site has a wealth of information for you to look around on. You can click on the gis map to show you any wells in the area. I checked 23n-60e and didn't find any horizontal wells. Be patient, it could be years. Richland county is just getting geared up the last couple of years. Could you look at your past lease for the acreage amount and more information? Read up on this forum and site. It has a wealth of information in it. It all takes time but you found a great site.
Thanks Joanne. I went hunting for paperwork. Can not believe I found it, but I did. The lease that was signed 10/23/2006. It was a 5 year term. The described property on the lease is:
Township 23 North, Range 60 East, MPM
Section 6: Lots 1, 2, 3, 4, SE1/4NW1/4
and containing 169.02 acres, more or less.
How do I zero in on this parcel specifically?
Bob, I also looked at 23n-60e-section 6 on the bogc web mapper especially since our Mineral Trust has property near this area (22n-59e and 24n-59e). The section 6 which contains your property has a well in the NW1/4 of the SE1/4 that has been producing a small amount of oil since January 1986 (300 barrels a month). Apparently Slawson Exploration LLC has recently taken over operation of the well. If the well is not on your property, you might get a good lease from an agressive company in the area like Slawson. About 1 and 1/2 years ago we leased property to Slawson (through Transcontinent's Landman, Zach Wilson) for 3 years at a bonus of $500/acre and 20% royalty. It is my understanding that some mineral owners in Richland County have gotten bonuses more recently for at least twice this amount per acre. Slawson also took over operations from another company on one of our old vertical wells near your area and is getting approval from BGOC to drill at least 3 horizontal wells from the same well, which many times vastly improves production. If you follow Joanne's advice and do not sell, you make get a very good bonus for leasing in the near future (depending on your amount of net mineral acres), and if the company strikes oil using the new technologies, within a few years you could start receiving hundreds of dollars a month for more than 10 years on royalty distributions from oil and gas sales. Good Luck, Bill Rowland
Thank you Bill! I am going to make a couple of phone calls tomorrow, including Slawson Exploration. Or who specifically would you suggest I call to proceed with getting information to get the lease renewed? You sound like you have had some good experience with your mineral rights. They couldn't put a well on our acreage without our permission/lease could they? btw, my old lease states 8.5 net acres. Your opinion on this amount? Thanks again, Bob
john w Rowland said:
Bob, I also looked at 23n-60e-section 6 on the bogc web mapper especially since our Mineral Trust has property near this area (22n-59e and 24n-59e). The section 6 which contains your property has a well in the NW1/4 of the SE1/4 that has been producing a small amount of oil since January 1986 (300 barrels a month). Apparently Slawson Exploration LLC has recently taken over operation of the well. If the well is not on your property, you might get a good lease from an agressive company in the area like Slawson. About 1 and 1/2 years ago we leased property to Slawson (through Transcontinent's Landman, Zach Wilson) for 3 years at a bonus of $500/acre and 20% royalty. It is my understanding that some mineral owners in Richland County have gotten bonuses more recently for at least twice this amount per acre. Slawson also took over operations from another company on one of our old vertical wells near your area and is getting approval from BGOC to drill at least 3 horizontal wells from the same well, which many times vastly improves production. If you follow Joanne's advice and do not sell, you make get a very good bonus for leasing in the near future (depending on your amount of net mineral acres), and if the company strikes oil using the new technologies, within a few years you could start receiving hundreds of dollars a month for more than 10 years on royalty distributions from oil and gas sales. Good Luck, Bill Rowland
Anybody want to give me some names and possibly phone numbers of people/companies I should be contacting to get the ball rolling on possible leases of my mineral rights? Is it better to hire someone to negotiate the leases that is familiar with the workings of the companies involved in the area? I have not attempted to call anyone yet. Just thought I should keep educating myself for awhile with all the information on this wonderful site. It is overwhelming, actually.
I just leased with empire oil...who in turn is with Whiting. I used an attorney to market my minerals. Attorney was very reasonable in his rates and I am quite satisfied with his results. Mike Zimmerman, Billings MT if you are interested. Mike knew who to talk to and where, I didn't have a clue as to even begin.
You might be able to email some folks--but it takes persisitance.
Hi Joanne. Would you be willing let me know about how much your legal fees were in this matter and the approximate net mineral acres involved. I don't have a big budget for this, and any idea what I might be in for would be greatly appreciated. Our mineral rights encompasses Township 23 North, Range 60 East, MPM, Section 6: Lots 1, 2, 3, 4, SE1/4NW1/4. 169.02 gross acres/8.5 net acres, Richland County, Montana. I know there are many variables involved in a lease value, but would you mind sharing the details ie., length of lease, % royalty, and signing bonus per mineral acre. If not, I understand. The previous lease was with Helis Oil & Gas Company, L.L.C. It was for 5 years and it expired about a year ago. It was for $250/net acre and provided 1/6th landowner royalty interest. Does that sound like good terms to you? Thanks, Bob
Joanne G said:
I just leased with empire oil...who in turn is with Whiting. I used an attorney to market my minerals. Attorney was very reasonable in his rates and I am quite satisfied with his results. Mike Zimmerman, Billings MT if you are interested. Mike knew who to talk to and where, I didn't have a clue as to even begin.
You might be able to email some folks--but it takes persisitance.
Bob--our legal fees were less than 400 bucks total for three siblings each having their own lease and he raised the bonus amount quite a bit from the original offer. You didn't say if the 8.5 net acres you own are divided or each among you. I signed for $650 an acre and 18.75. There is active drilling near these holdings. I felt we didn't really have much bargaining room as I held such a minute part in two sections. But I held out and in the end felt I got a whole lot better deal using an attorney. He paid for himself in the increased lease bonus he got for us. I hope this helps you. If there isn't much activity around you, I don't know how much interest you would get in marketing your mineral lease. The oil companies will find you!
Hi Joanne.
Our total net mineral acres are 8.5, so this is likely a small portion. How long was your lease, and do you know the royalty you are to receive per acre if drilling is successful? The legal fees sound reasonable. Thanks, Bob
Joanne G said:
Bob--our legal fees were less than 400 bucks total for three siblings each having their own lease and he raised the bonus amount quite a bit from the original offer. You didn't say if the 8.5 net acres you own are divided or each among you. I signed for $650 an acre and 18.75. There is active drilling near these holdings. I felt we didn't really have much bargaining room as I held such a minute part in two sections. But I held out and in the end felt I got a whole lot better deal using an attorney. He paid for himself in the increased lease bonus he got for us. I hope this helps you. If there isn't much activity around you, I don't know how much interest you would get in marketing your mineral lease. The oil companies will find you!
Bob- our lease is 3 years no extension and 18.75 royalty. I have only 6 acres. not a whole lot to bargain with.
I hope this helps.
R Ward said:
Hi Joanne.
Our total net mineral acres are 8.5, so this is likely a small portion. How long was your lease, and do you know the royalty you are to receive per acre if drilling is successful? The legal fees sound reasonable. Thanks, Bob
Joanne G said:Bob--our legal fees were less than 400 bucks total for three siblings each having their own lease and he raised the bonus amount quite a bit from the original offer. You didn't say if the 8.5 net acres you own are divided or each among you. I signed for $650 an acre and 18.75. There is active drilling near these holdings. I felt we didn't really have much bargaining room as I held such a minute part in two sections. But I held out and in the end felt I got a whole lot better deal using an attorney. He paid for himself in the increased lease bonus he got for us. I hope this helps you. If there isn't much activity around you, I don't know how much interest you would get in marketing your mineral lease. The oil companies will find you!