I work for a religious community which has mineral rights in Williams Coutny, North Dakota described as:
Township 157 North, Range 102 West, 5th PM Serction: 26: NE; 75% mineral interest or 120.0 net mineral acres
They receive an offer of $175.00 per net mineral acre, a one sixth (1/6th) mineral owners royalty and a five (5) year primary term.
Is this a good offer? Any advice?
Would you explain the royalty part - COST FREE?
Debra Ganske said:
The activity in that area is increasing by giant leaps. Take a look at the hearing docket for January 13th on the NDIC website. We recently leased our nma in 156N, 101W for a primary term of 3 years at $500 per acre and a COST FREE 3/16ths royalty.
Debra Ganske said:
The activity in that area is increasing by giant leaps. Take a look at the hearing docket for January 13th on the NDIC website. We recently leased our nma in 156N, 101W for a primary term of 3 years at $500 per acre and a COST FREE 3/16ths royalty.
I have mineral rights in Williams County 157N, Range 101W Section 6. Would be curious to know what I might get for a lease, and what activity is going on in the area?
Thanks!
I have also received a paid up lease offer in Williston, ND. There are six of us listed as mineral owners on 13.43 acres. So far, I am the only one who has been contacted. The lease is from an agent in Minot, ND and the offer is only for the 2.31 acres interest I own. The land sits nearly dead center of the Bakken Formation and I believe it will produce. I don’t want to sign anything without knowing more about it. The offer on the lease is as follows… The granting clause states; “That the lessor, for and in consideration Ten and more dollars, cash in hand paid…” What does that mean? Next the royalties offered are: free of cost…the equal 3/16ths part of all oil produced and saved from the leased premises; 3/16ths of the gross proceeds…for gas… where gas only is found…3/16ths royalty if used in the manufacture of gasonline…to pay lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product the equal 3/16ths of the proceeds, at the mouth of the well…" I know this is’nt much information, but, in general, how does this sound and what should I do next? I can’t afford an attorney at the moment and need all the advice I can get. Thanks to anyone who can help!
The language and the 3/16 royalty sounds fairly reasonable to me. the ten dollars cash in hand is boiler plate and means nothing - only that they will pay you “something” for signing the lease. Current payments can be anywhere from $200 to $500 per acre. I would guess you would be best served if you contact the other owners and agree to negotiate jointly with one person representing your combined interest. You will probably speed the process.
Raymond Upmeyer said:
I have also received a paid up lease offer in Williston, ND. There are six of us listed as mineral owners on 13.43 acres. So far, I am the only one who has been contacted. The lease is from an agent in Minot, ND and the offer is only for the 2.31 acres interest I own. The land sits nearly dead center of the Bakken Formation and I believe it will produce. I don’t want to sign anything without knowing more about it. The offer on the lease is as follows… The granting clause states; “That the lessor, for and in consideration Ten and more dollars, cash in hand paid…” What does that mean? Next the royalties offered are: free of cost…the equal 3/16ths part of all oil produced and saved from the leased premises; 3/16ths of the gross proceeds…for gas… where gas only is found…3/16ths royalty if used in the manufacture of gasonline…to pay lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product the equal 3/16ths of the proceeds, at the mouth of the well…" I know this is’nt much information, but, in general, how does this sound and what should I do next? I can’t afford an attorney at the moment and need all the advice I can get. Thanks to anyone who can help!