I have 40 acres in williams and mckinzey countys in N-Dakota, a.k.a the Bakken.
what would the starting rate per acre be? I also have leased it for 3 years @ 3/16
royalties. any ideas?
Depends on many factors. Where precisely it is, active wells around it, and their productivity, how long before the lease expires, did you just sign the lease? Is it likely to be drilled before the lease runs out? I have interest in 5 wells in McKinzie county all are good if not exceptional wells. I think you will be kicking yourself later if you sell. RWK
Where are your mineral rights located? Who did you lease to? I may know someone who could potentially be interested in it.
I pay $1500 to $3500 per mineral acre in McKenzie and Williams County North Dakota. It varies a lot from one part of the county to the next so it's hard to narrow it down without knowing the section, township and range. I also buy mineral rights in other counties like Dunn, Divide, Burke, Mountrail, Golden Valley, Billings, Stark, Renville, Bottineau, Slope and Bowman ND.
Tim Metz
Hello Ryan,
Well let me get my name in the ring also, I purchase minerals throughout the Williston Basin. Am just completing a mineral purchase of 1,250.00 net mineral acres in Billings County, ND
Thanks - Jerry
Don’t sell!!! I cannot emphasize that enough. Your minerals are priceless, and these guys are chomping at the bit to get them for a low price, of course. Sorry buyers, but it’s the truth. You obviously received these minerals as a gift, and they should stay that way. They will pay out, just be patient, and DO NOT SELL. If you do, I advise you to take no less than $85-100k/acre, seriously. God only made so much land, and we happen to have a chunk of it that’s in high, high demand!!! Patience is a virtue.
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Dittos to the Jody Kuntz reply. You should NEVER consider selling minerals unless your financial status is at rock bottom and you need cash. Most likely, these minerals will payout amounts that will give you or your heirs a subsequent income for many years. Jody is right in the statement about why others are chomping at the bit to buy and if you don't need the immediate cash, you will be the loser in the long run. Good luck on your decision.
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I would be happy to sell my minerals to Jodie or Charles, who clearly place a value on minerals (priceless, or close to it) that does not accurately reflect that value that the minerals will produce in the future. Please contact me Jodie and Charles, as I'd be happy for you to take my minerals off my hands for the price that you seem to think that they are worth.
My two cousins and I have been offered to lease our mineral rights for $550 per acre in Hettinger County. Is $550 per acre a reasonable offer? It is a three year lease with an option to renew for another three years. Twenty years ago, we leased for about $10 per acre.
Thanks in advance for any information anyone has about leases in Hettinger County, North Dakota.
Ron
The option to renew certainly isn’t reasonable.
Ronald M Gall said:
My two cousins and I have been offered to lease our mineral rights for $550 per acre in Hettinger County. Is $550 per acre a reasonable offer? It is a three year lease with an option to renew for another three years. Twenty years ago, we leased for about $10 per acre.
Thanks in advance for any information anyone has about leases in Hettinger County, North Dakota.
Ron
Thanks RW,
Do you know if $550 per acre in Hettinger County is reasonable? Are leases typically non-renewable and then just open for new negotiations instead?
Thanks again,
Ron
r w kennedy said:
The option to renew certainly isn't reasonable.
Ronald M Gall said:My two cousins and I have been offered to lease our mineral rights for $550 per acre in Hettinger County. Is $550 per acre a reasonable offer? It is a three year lease with an option to renew for another three years. Twenty years ago, we leased for about $10 per acre.
Thanks in advance for any information anyone has about leases in Hettinger County, North Dakota.
Ron
Hello Rodney,
I appreciate your offer, but I recieved my mineral rights from my grandpa and will pass it on to our children.
Ronald, the option is a no win for you, the mineral owner. $550 doesn’t sound unreasonable considering present activity in Hettinger but it can change, hopefully it will go higher. Best to check with anyone local you can find in the forums, and don’t be in too big of a hurry if you don’t absolutely have to have the cash right now. If contacted I would want to negotiate the royalty before the bonus. Do your best to hold out for 20% at least. Good luck.
I’m with you A. Loren and I won’t be greedy, I’d sell for just the $85K. I think they believe their psychic.
I have 5 wells in eastern Mckenzie county ND and all 5 hit and look like they will show a decent profit. I do wish they hadn’t been drilled before the latest techniques were developed, good might have been great. Oh well, maybe the infil wells ten to 20 years in the future will be even better than todays wells.
The leasing activity in Hettinger county is really starting to pick up, mainly due to the high gas pressure that lies in the area. Chesapeake is the main company that wants to drill there, but there are a few others getting ready to delve. If they offered you $550/acre, you can get them to $1000 easily. You are holding the ace.
Ronald M Gall said:
My two cousins and I have been offered to lease our mineral rights for $550 per acre in Hettinger County. Is $550 per acre a reasonable offer? It is a three year lease with an option to renew for another three years. Twenty years ago, we leased for about $10 per acre.
Thanks in advance for any information anyone has about leases in Hettinger County, North Dakota.
Ron
It's not psychic Joe, it's called educated and well connected in the business. I have watched, worked, and been trained by the best, plus grew up there and made sure I was ready for this to happen. Maybe I am psychic, as I knew twenty years ago this was going to hit hard, or could that be because I surveyed and seismographed the area while attending college, plus made a point to be at conventions.
Mineral Joe said:
I'm with you A. Loren and I won't be greedy, I'd sell for just the $85K. I think they believe their psychic.
As they always say, put your money where your mouth is, A. Loren and I will sell you our minerals at $85k to $100K per, heck I'd sell for real cheap say $20k per, that leaves you 400% to 500% profit just on value not actual return, heck I'd sell for super cheap according to you, at $10k per and let you make up to 1000% profit just on value. At just $10k per acre I can find you billions of dollars worth.
So since you knew it 20 years ago I take it you bought 1000's of mineral acres there back 20 years ago when they were selling at $40 per mineral acre.
At $85K per acre, I can be out by 5 tomorrow. Keep the tractor.
Jody, thanks for that perspective. Actually, the leasing agent started at $300 per acre back in June. The ante was increased, I think, mostly because my two cousins and I have adjacent interests and are pooling.
What is your opinion about a 3 year lease with an option to renew?
Ron Gall
jody kuntz said:
The leasing activity in Hettinger county is really starting to pick up, mainly due to the high gas pressure that lies in the area. Chesapeake is the main company that wants to drill there, but there are a few others getting ready to delve. If they offered you $550/acre, you can get them to $1000 easily. You are holding the ace.
Ronald M Gall said:My two cousins and I have been offered to lease our mineral rights for $550 per acre in Hettinger County. Is $550 per acre a reasonable offer? It is a three year lease with an option to renew for another three years. Twenty years ago, we leased for about $10 per acre.
Thanks in advance for any information anyone has about leases in Hettinger County, North Dakota.
Ron