My sister & I own the mineral rights to a piece of land in Williams CO. ND (Township 159 North Range 101 West and 102 West) I have NO idea how much this should lease for. Does anyone have any ideas how much, or how I can find that out? Thanks so much!
I have knowledge of at least five companies making a play for mineral rites in Williams county township 159 range 101 west. Could be more. The area seems to be hot rite now. You should be able to get a good lease. The companies are as follows in no particular order. 1. Oasis petroleum, 2. Brigham exploration, 3. Tracker Resources, 4. Petro Hunt, 5. Golden eye Resources. I have heard of offers from $500 acre signing bonus and 20% cost free royalties. To $750 acre and possibly 20% cost free royalties. Possibly more now as there seems to be a lot of interest in that area as in most of the Bakken. Some companies offer a lot less at first. I think a person should take into consideration abilities of the company, how well established it is. Is it a company that is going to drill or is it a company speculating. How good are the conditions of the lease. I would also have a qualified mineral lawyer look at the lease to make sure your rites are being protected. All leases can be negotiated. a lot of leases have pugh clauses as to mineral zones, acres in different spacing units, well insurance and a lot more. You would have to take your preferences as to what you want and what you can get to make your own decision. I would guess some people do not even lease and are pooled into the spacing unit by the state. You can check at the North Dakota oil and Gas commission website for those rules and a lot of helpful and interesting items. I am no expert and only have a limited knowledge from my experience and disappointments after leasing minerals in the same area. Wish you luck.
Thanks so much for the answer. I guess I have alot of homework to do.
m borgen said:
I have knowledge of at least five companies making a play for mineral rites in Williams county township 159 range 101 west. Could be more. The area seems to be hot rite now. You should be able to get a good lease. The companies are as follows in no particular order. 1. Oasis petroleum, 2. Brigham exploration, 3. Tracker Resources, 4. Petro Hunt, 5. Golden eye Resources. I have heard of offers from $500 acre signing bonus and 20% cost free royalties. To $750 acre and possibly 20% cost free royalties. Possibly more now as there seems to be a lot of interest in that area as in most of the Bakken. Some companies offer a lot less at first. I think a person should take into consideration abilities of the company, how well established it is. Is it a company that is going to drill or is it a company speculating. How good are the conditions of the lease. I would also have a qualified mineral lawyer look at the lease to make sure your rites are being protected. All leases can be negotiated. a lot of leases have pugh clauses as to mineral zones, acres in different spacing units, well insurance and a lot more. You would have to take your preferences as to what you want and what you can get to make your own decision. I would guess some people do not even lease and are pooled into the spacing unit by the state. You can check at the North Dakota oil and Gas commission website for those rules and a lot of helpful and interesting items. I am no expert and only have a limited knowledge from my experience and disappointments after leasing minerals in the same area. Wish you luck.
I’ve been offered $400 with 3/16 royalty in R159/101. How do you know if a company has given their best/last offer, you end up not getting a lease and are force-pooled? This company claims they will be drilling but I don’t know if that will actually happen, either.
Elizabeth S. Hogg said:
Thanks so much for the answer. I guess I have alot of homework to do.
m borgen said:I have knowledge of at least five companies making a play for mineral rites in Williams county township 159 range 101 west. Could be more. The area seems to be hot rite now. You should be able to get a good lease. The companies are as follows in no particular order. 1. Oasis petroleum, 2. Brigham exploration, 3. Tracker Resources, 4. Petro Hunt, 5. Golden eye Resources. I have heard of offers from $500 acre signing bonus and 20% cost free royalties. To $750 acre and possibly 20% cost free royalties. Possibly more now as there seems to be a lot of interest in that area as in most of the Bakken. Some companies offer a lot less at first. I think a person should take into consideration abilities of the company, how well established it is. Is it a company that is going to drill or is it a company speculating. How good are the conditions of the lease. I would also have a qualified mineral lawyer look at the lease to make sure your rites are being protected. All leases can be negotiated. a lot of leases have pugh clauses as to mineral zones, acres in different spacing units, well insurance and a lot more. You would have to take your preferences as to what you want and what you can get to make your own decision. I would guess some people do not even lease and are pooled into the spacing unit by the state. You can check at the North Dakota oil and Gas commission website for those rules and a lot of helpful and interesting items. I am no expert and only have a limited knowledge from my experience and disappointments after leasing minerals in the same area. Wish you luck.
I didn’t mean to include golden eye in my response above. You should go to the NDIC website and dig up information. it’s a hard site to navigate, it takes time to figure things out. Just take your time and don’t be in a hurry to lease even if some company puts lots of pressure on you. We learned the hard way not to trust and rely on everything we were told. If they say they’re going to drill, ask them how much working interest they will have in the spacing unit. Educate yourself on the rules for spacing units, etc.
We aren't too far away in Mountrail County (158 - 94) and just signed a lease with Golden Eye Resources for $1,750/ acre and 20% on 3 year term. It took much time and negotiating with 3 other companies to get it to that point. Initial offers were between $500/acre to $900/ acre and 3/16 royalty. Also, make sure you have an attorney look over the lease before signing.
Elizabeth:
I know for a fact that top leases are going for $1500/acre (not cost free) with a 20% royalty in T157N;R103W area. Take your time and negotiate the best offer, don't take the first offer on the table. I would not sign for a lease term longer than 3 years with no extension clause. I'm not sure about the current production in that area but Williams County is primed for development in this area over the next few years.