I got a lease offer for mineral rights I own in Divide County, ND along with a draft. They had not contacted me previously, so I was reading the lease and it was for one year. I thought that was weird and checked NDIC. They are already drilling two wells on the property. I am sure I could negotiate for a better royalty and higher bonus off, but I am wondering what the going rate is for Divide County, ND.
Negotiate! I would say they are cleaning house before the company arrives. Oil company is just trying to tie up loose ends. From what I have learned on this forum -don’t sign the first offer. Sorry I cant help with the going rates in nd. Ha e you looked at your county group yet on here?
I know I need to negotiate. I just need to know where to start. I would assume since they are already drilling two wells I should be able to get more than normal.
Ms. Watters, there is no county wide going rate. If you told where your minerals are I could tell you whether there are alot of wells and permits near you, possibly the production of the nearest producing wells and I might have an opinion about what it could be worth. Also what you may get depends on your negotiating skills along with how much homework you have done. I have negotiated leases and my conditions were not met in ND so I went non consent. In my opinion in ND, no lease, is better than a bad one. My best advice from what you have said is to contact every operator in the area and market your lease. List your acres for lease on the home page of these forums at the bottom. If you deal with only a single lease purchaser, they have little incentive to raise the amount they will pay, but if there is a good chance they could lose your acres and all the money to be made from them forever to someone else, they will have incentive to make you a better offer.
160-98-22. I considered refusing the lease and doing non-consent, but if they will give me a good deal, I would just as soon lease and get the bonus money than to wait the time that it takes to pay off my part of the expenses for the non-consent. I would think they would rather pay more up front to keep us from doing the non-consent.
Julia Watters said:
160-98-22. I considered refusing the lease and doing non-consent, but if they will give me a good deal, I would just as soon lease and get the bonus money than to wait the time that it takes to pay off my part of the expenses for the non-consent. I would think they would rather pay more up front to keep us from doing the non-consent.
Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
What terms did they give you? Nobody ever even talked to me. I just got a registered letter in the mail today with a lease and a draft and it was only a one year lease so I knew there was something strange. That's when I looked to see if they were already drilling. I got the lease from a landman for Irish.
The lease is with Baytex but it was a landman with Irish who sent it. I don't intend to sign the lease, but I didn't realize I should deal directly with Baytex. What royalty percentage did they give you and how much bonus money per acre?
mike orsborn said:
Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
The lease Irish sent us was a horrible lease regarding provisions! The offer was 800 per acre and 3/16 1 year with a 45 day draft. We sent them back. That took 3 months of negotiations with Irish to get that!!!!!!!
Julia Watters said:
The lease is with Baytex but it was a landman with Irish who sent it. I don't intend to sign the lease, but I didn't realize I should deal directly with Baytex. What royalty percentage did they give you and how much bonus money per acre?
mike orsborn said:Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
So who did you end up signing with, Baytex or Irish, and what were the terms? They offered me 700 and 3/16.
mike orsborn said:
The lease Irish sent us was a horrible lease regarding provisions! The offer was 800 per acre and 3/16 1 year with a 45 day draft. We sent them back. That took 3 months of negotiations with Irish to get that!!!!!!!
Julia Watters said:The lease is with Baytex but it was a landman with Irish who sent it. I don't intend to sign the lease, but I didn't realize I should deal directly with Baytex. What royalty percentage did they give you and how much bonus money per acre?
mike orsborn said:Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
Irish started at 500, eventually slowly worked up to 800 as a FINAL and the 3/16. We ended up negotiating directly with Baytex because we could not get straight answers from Irish Oil in a timely fashion! We reworked the lease with Baytex and felt very comfortable with our lease provisions and as a group of 80 acres between the family, ended up with 950 and 19%.
Julia Watters said:
So who did you end up signing with, Baytex or Irish, and what were the terms? They offered me 700 and 3/16.
mike orsborn said:The lease Irish sent us was a horrible lease regarding provisions! The offer was 800 per acre and 3/16 1 year with a 45 day draft. We sent them back. That took 3 months of negotiations with Irish to get that!!!!!!!
Julia Watters said:The lease is with Baytex but it was a landman with Irish who sent it. I don't intend to sign the lease, but I didn't realize I should deal directly with Baytex. What royalty percentage did they give you and how much bonus money per acre?
mike orsborn said:Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
We also have 80 acres and I was thinking about asking for somewhere between 1200-1500 at 20-22%. I guess that probably will not happen if you have just gone through this.
Also, we generally ask for a pugh clause, vertical and horizontal, 2 year shut in gas, continuing development and something else I can't remember right now. What provisions did you ask for?
mike orsborn said:
Irish started at 500, eventually slowly worked up to 800 as a FINAL and the 3/16. We ended up negotiating directly with Baytex because we could not get straight answers from Irish Oil in a timely fashion! We reworked the lease with Baytex and felt very comfortable with our lease provisions and as a group of 80 acres between the family, ended up with 950 and 19%.
Julia Watters said:So who did you end up signing with, Baytex or Irish, and what were the terms? They offered me 700 and 3/16.
mike orsborn said:The lease Irish sent us was a horrible lease regarding provisions! The offer was 800 per acre and 3/16 1 year with a 45 day draft. We sent them back. That took 3 months of negotiations with Irish to get that!!!!!!!
Julia Watters said:The lease is with Baytex but it was a landman with Irish who sent it. I don't intend to sign the lease, but I didn't realize I should deal directly with Baytex. What royalty percentage did they give you and how much bonus money per acre?
mike orsborn said:Ms Watters,
We just leased to Baytex in that section! Who sent you the lease? Baytex will be the operator for both 22/15 and 27/34. They just spudded the hole's and intend on drilling in July. If we can be of any help, let us know.
We started up there also! You can ask for anything. After reviewing the wells around the area, we determined it wasn't the hot spot and checked around from other spacing units within 8-10 miles NSEW of us to try and get a feel. There just isn't that many good wells in that area yet!
Julia Watters said:
We also have 80 acres and I was thinking about asking for somewhere between 1200-1500 at 20-22%. I guess that probably will not happen if you have just gone through this.
We did not get a vertical Pugh! It's possible that others may have been able too, but we tried and ended up getting a few more dollars per acre and 0.25 better than the 3/16 instead. Maybe 10 years of oil experience first, could have provided for more but the whole Family was OK with the final offer. Good luck!
Thanks so much for your help!
Julia,
You may have a "bird in the hand" maybe 2. You know at least what that is worth. You have many more options than taking a lease with a non-producer. I suspect the Operator will contact you eventually now that you have been discovered. Take your time and think about getting some legal advice if your acreage is big enough.
Mike, did you mean they drilled a rat hole and mouse hole when you say they spudded or do they really have a separate rig come in and drill to set surface casing now days as to spud a well refers to the rig is on location drilling surface and they don't leave the well until the last string of casing is run.
Julia, you do know that only one well will be yours.
Mineral Joe
Mineral rights buyer
Yes! I think that was the term my cousin used. "rat hole".
Mineral Joe said:
Mike, did you mean they drilled a rat hole and mouse hole when you say they spudded or do they really have a separate rig come in and drill to set surface casing now days as to spud a well refers to the rig is on location drilling surface and they don't leave the well until the last string of casing is run.
Julia, you do know that only one well will be yours.