My grandfather migrated from Norway and homesteaded a farm in Divide County, North Dakota. He returned to Norway and sold his farm, but kept the mineral rights. Recently my parents recieved a leasing offer adressed to my grandfather (who died many years ago). I have some questions related to this, and would be very grateful for any answers:
1. How does the bonuses from the state auctions compare to private lease bonuses? The lease bonus offer my family recieved was considerably lower than that of neighbouring sections leased at state auctions last year. However the royalty offered was slightly higher, 3/16 vs 1/6. Both allow the lessee to explore for oil and gas for five years.
2. Could anyone give an estimate of the leasing bonus development (in percent) from 2010 to 2011 in Divide County, ND?
3. As a homesteader I assume my grandfather had 160 acres of land. In the leasing offer it states that he has 48 net out of 320 gross acres. Assuming that he kept all his mineral rights, how could this be? Is it possible that he has 112 acres available for lease to a different pool/drilling unit?
4. The key points of a lease contract seems to be the lease bonus, the royalty and the length of the leasing period. Are there other factors that are important to consider?
I'm sure some of these questions have been answered before and links to relevant topics would also be appreciated.