Our minerals not leased, three wells drilled

Hi Tyler, as an unleaded mineral owner in ND, here are your options.

  1. Lease and get the bonus and royalty.
  2. Participate and pay your share of the well costs now and get your full share of the production.
  3. Get a royalty equal to the average of lease royalties in the unit or 16% (operator’s choice) and the rest of your interest is treated as a carried working interest subject to a 50% non-consent penalty. So if the well pays for itself plus 50%, then you get your royalty interest and your working interest share - essentially your full interest. But you don’t get a bonus under option 3.