I inherited some mineral rights in McKenzie County when my grandmother passed this last september. I have an attorney working on the probate to get my ownership on the official records. I had no previous knowledge on the subject, so sifting through and understanding all the documents has been quite a challenge. I have been able to educate myself a bit trough this site and the nd.gov site, but I still have a lot of questions on what to do with this.
I have rights in T148R99W, Sections 3,4,10 and 11 and in T149R98W, sections 19 and 20. Total NMA is approximately 15 acres. As far as I can tell, my grandmother has more or less signed the first lease that was presented in both cases. With regards to clauses such as pugh and warranty I can't really tell. The language in these are way above me:) I assume she has contracts that are good for oil companies, bad for her.
The vast majority of theareas in T149, S19 and 20 were leased to Contex back in November '07 and is for 5 years ($100 bonus and 1/6ths royalty). This lease has been acquired by Kodiak a while back and I think they are drilling wells. A tiny fraction of the areas in T149 are not yet leased, Kodiak has offered $1200 bonus and 3/16ths royalty for these.
The areas in T148, S3,4,10 and 11 were leased to Alfson Energy in October 2010 for 3 years ( $1000 bonus and 3/16ths royalty). I don't know who holds the lease today, but from the GIS-map it looks as if there are wells here as well.
I don't think she has received anything but the bonus-payments and I can't find any division orders.
Now, from what I have read here and elsewhere, leasing is not always the best option for non-professional mineral rights owners, so my questions are:
- Am I bound by the leaseses my Grandmother signed or will they have to negotiate a new deal with me?
- Should I lease or participate? If participate, by investing or just by doing nothing? If lease, what kind of terms should i aim for?
- I would like to value or get an idea of what this is likely to generate in terms of royalties. I have been looking at the GIS map and some monthly production reports, but find it really hard to gauge the quality of my area, any advice?
Sorry for the long post, but I would really appreciate it if someone would provide some insight. I'll stick around to share my experiences with others in the same situation if this works out:)