Here is a PDF that covers some basics…
It is a non-issue as far as drilling, I have a high pressure gas line running thru my land and two wells!..don’t worry!
Joe: I agree with both replies as this activity would not interfere with any drilling activity but the contract should address any issue that would hold your mother in law liable for damages, etc. We have mineral leases in T30N;R59E which are also soon to expire. Good luck in regards to securing new leases.
Joe, make sure in the contract that your mother in-law is held harmless in every eventuality and they should pay for the lawyer of her choice to make sure the contract says so, in several different ways and going on at great length. I just wouldn’t have it on my property.
Joe: Negotiate a better payment for her. Something similar to a gas pipeline where they pay a bonus per rod and a yearly rental. We can all check on what they are paying for pipeline ROWS now. Then be sure she is indemnified and future oil/gas/mining activities shall not be restricted. Maybe Dctex99 recalls what he was paid for the gas line ROW.
No I don’t, done by my deceased parents over 25 years ago, but not much and I recall they were presented with total liability by the gas company and some token amount as it benefited the area so much!
Tom, I would hold out for at least $250/acre on a 4year. If they want 3years go for $200. I believe the reservation is at $250.
We have been leased by Fort Worth since about 20003. Our leases expired in Jan & April if last year. I declined 150.00/ acre, 18% for 4 yrs. I was contacted by another landman for Fort Worth. Offer is now 175.00/acre, 18.75% for 4 yrs. I don’t like the 4yrs. We are at: 28n 51e sections 22 & 28. Any thoughts? Thanks, Tom
We have rights in 28-56… StatOil has punched a horizontal well there. It’s been over seven months waiting for a Division Order… Phone calls don’t work…
Extremely good advice from David. We had some of the same problems.
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Kathleen, First, are the rights registered in your mother’s name? If not they will need to be. A deed will need to be drawn up in yours and your siblings names stating the percentage of the rights to each of you. This deed will then have to be registered in the Roosevelt County Court House in the Office of the Clerk and Recorder. I believe the cost to register a deed is about $22 and it can be done by mail. Your lawyer can help with this.
Kathleen, A little more information is needed. Did she have a will? Was she living in Montana when she passed? Did a lawyer do probate? Did a Deed of Distribution get filed during probate? and where? I have recently got some exposure to this, but am not a lawyer.
Kathleen,
Let me also add…from another long discussion on this site, be sure to checkinto forming an LLC as siblings…as this will make everthing from owership to negotiations with oil companies to inheritance to the next generation and more MUCH MUCH easier for you in the long run. If you maintain individual ownership in the mineral rights…and these get fractioned off over time…wow!! The formation of the LLC addresses all these issues and more up front. Be sure you get lots of wisdom and thought put into your buy/sell arrangement (thinking about divorce, and in-laws, and more)!!
addendum… It has been producing for seven months, per the Montana Board of Oil and Gas Online data…
My mother recently passed away. She inherited mineral rights in Roosevelt County from her mother and now they pass to my siblings and I. We all live out of state. Does anyone know what the procedure is to get her portion of the mineral rights properly recorded in our names? There is currently no lease in place although there has been in the past. Thank You for any advise.
Hello kathleen,
We were in the same scenerio 4 years ago. T simard asks some good questions. You will probably need to have your lawyer give you some help in putting this together as you most probably will need a lawyer in Montana to help you with an ancillary probate…that is…probating the ownership from your mom to you. We worked with a legal person named Char Shroyer, of the Crowley Fleck Law Firm. There phone number is: (701) 774-6810. While they are based in North Dakota, they are licensed to do legal work in Montana. It was a LONG process, but I felt Char did a super job for us. Good Luck.
And another thought. When you form an LLC, you need to be licensed to do business in Montana…which required a Montana address. We are using LAWCO based out of Billings. The cost is $100 a year. You can google their information. Note they are connected to Crowley Fleck law firm…which I mentioned in an earlier email.
David, thank you for all the info. I’m reading the other links, too, about appraisal info. My thought is that the value is not very much right now.
T. Simard, she does have a will, she did not live in Montana, her estate is very small, so no probate required in her state. I’m just starting the process and on a small budget, so a little overwhelmed. 
I’ll even add one more. Check out the later part of the discussion on the Bakken Group in terms of appraisal information. This discussion turned into other information about LLC’s, and more. The link is: http://www.mineralrightsforum.com/group/bakken-shale-nd-mt/forum/to…
Kathleen, At least she has the will. Here is a link to a pdf from one of the Universities in Montana talking about probate http://msuextension.org/publications/FamilyFinancialManagement/MT19…. This is similar to having a piece of real-estate and will ultimately need some form of legal document… Which probably means a lawyer. A lawyer with oil and gas experience will be helpful for recommending things that will make it easier for future generations (living trusts, LLC, etc), but may be more expensive and less available than someone who can get the rights transferred. Good Luck, and hopefully they hit a gusher after you get it all taken care of.