My brother, sister and I inherited mineral rights from our father in McKenzie Co. North Dakota. We have been receiving royalty checks since 2013 when wells were drilled in that area. We have recently received 2 offers to buy our mineral rights- we each have 6.66 acres. One in February was for about $2500/acre and a recent one was closer to $5000/acre. I receive less than $1000/year in royalties. I am considering selling my rights so my children don’t have to deal with all the probate related issues of it after I’m gone. How do I know if these are reputable companies and fair offers? I can’t find much/anything about them on the internet. The one offering $30,000 has sent a contract to sign. Should I have an attorney involved?
First off, you should provide a legal description so it can be determined where they are and if further production is in the works. The majority of the time offers this high come when there are already wells in the “works” and payments coming. In fact, that’s the only time I receive offers on my McKenzie County acres anymore. If they buy at $30,000 how much would you make IF they are drilling a well or two? That’s part of what you want to know to see if you should accept. That does sound like a good price, but ultimately do you want to sell and lose out on a well or more? Anyway, please provide legal (if you are willing) and I can attempt to see if there is current action in that area.
Secondly, I believe you can transfer those acres TOD to your children and avoid probate on them altogether (but check with a lawyer to verify that, first!!!).
Lastly, do you want to provide the names? So many lease companies out there these days. But most have their own interests ahead of yours.
Thanks!
Thanks for your reply. Our acres are in Stepan#16-9H, Township151N, Range 104W: section 16 SE. We currently receive royalties from Chord Energy/Whiting Oil and Gas. The offers to buy the mineral rights came from Dakota Energy and Midway Minerals.