Our first lease was with Empire and it was comprised of $200.00 per acre with 17.5% royalty for three years. Our 150 acres is in Dickinson. I have been reading that they are getting close to drilling in earnest in Stark county soon so I was wondering if that meant we should try to negotiate for a larger price. If so, how do we figure out what is an appropriate price these days? We don’t live in North Dakota and are at the mercy of this forum for information relative to mineral rights owners. Thanks for any advice.
Kathy:
I am not too familiar with Stark County but looking at the State Auction Mineral Lease site, it appears that an area in Stark County (Township 140;R95;Section 8) went for $2,800/acre. Note, that this is a State Auction and the terms of the lease and the $/acre will be different and higher than what you will be able to negotiate. Bottom line, according to this $ amount, you should be able to negotiate a good lease. If you have been contacted, I would not take the first lease offer and do your homework to make sure you are getting the current $ value for your mineral holdings. You didn't give your exact location in Stark County and $ amounts may differ greatly depending on your location.
Rule #1 - always try to negotiate better terms. I take it they came back and wanted to re-lease your minerals. If your lease is expiring right now then you leased back in 2008 when things were bad, well worse anyway, so yes and always refer to rule #1
Thanks to you and to Mineral Joe for that great advice. Our land is approximately 150 acres in 29-138N-96W and extends to 19-138N-96W.
charles s mallory said:
Kathy:
I am not too familiar with Stark County but looking at the State Auction Mineral Lease site, it appears that an area in Stark County (Township 140;R95;Section 8) went for $2,800/acre. Note, that this is a State Auction and the terms of the lease and the $/acre will be different and higher than what you will be able to negotiate. Bottom line, according to this $ amount, you should be able to negotiate a good lease. If you have been contacted, I would not take the first lease offer and do your homework to make sure you are getting the current $ value for your mineral holdings. You didn't give your exact location in Stark County and $ amounts may differ greatly depending on your location.
Kathy:
A quick look at some history on the Sate Auction site revealed that in February 2011 an area (T138;R94;Various Sections leased from $275 - $475/acre while in May 2011 an area (T137;R99;Section 18) leased for $900/acre. Again, time is on your side in this leasing process as more activity increases with good results, the value of your minerals also increases. As I said earlier, you should be able to negotiate a good lease but read up on the in's and out's of leasing and make sure you get a good lease.
Kathy Thorsen said:
Thanks to you and to Mineral Joe for that great advice. Our land is approximately 150 acres in 29-138N-96W and extends to 19-138N-96W.
charles s mallory said:Kathy:
I am not too familiar with Stark County but looking at the State Auction Mineral Lease site, it appears that an area in Stark County (Township 140;R95;Section 8) went for $2,800/acre. Note, that this is a State Auction and the terms of the lease and the $/acre will be different and higher than what you will be able to negotiate. Bottom line, according to this $ amount, you should be able to negotiate a good lease. If you have been contacted, I would not take the first lease offer and do your homework to make sure you are getting the current $ value for your mineral holdings. You didn't give your exact location in Stark County and $ amounts may differ greatly depending on your location.
Kathy,
I have mineral rights in Dunn County, right around Killdeer. I believe you can get a better deal. The closer you get to your current deal expiring, the better your deal is going to be. I just turned down $300/mineral acre & 20% royalty interest on a small piece of land just south of Killdeer. Activity is going to pick drastically next year around Watford City & into the Dickingson area. You might want to check out the on line blog Million Dollar Way blog spot. Just google it. A classmate of mine has been blogging about the Baaken for some time now & lets you know what's going on in western ND. Another site that you might also find help is called, the Bakken Shale Discussion Group. Check out both sights. Good luck.
Kay
Thanks Kay, At one time there was a County discussion group and I checked in on Stark periodically but that seems to have disappeared. I suppose there will be more chatter as the rigs get closer to that area.
Kay Maas said:
Kathy,
I have mineral rights in Dunn County, right around Killdeer. I believe you can get a better deal. The closer you get to your current deal expiring, the better your deal is going to be. I just turned down $300/mineral acre & 20% royalty interest on a small piece of land just south of Killdeer. Activity is going to pick drastically next year around Watford City & into the Dickingson area. You might want to check out the on line blog Million Dollar Way blog spot. Just google it. A classmate of mine has been blogging about the Baaken for some time now & lets you know what's going on in western ND. Another site that you might also find help is called, the Bakken Shale Discussion Group. Check out both sights. Good luck.
Kay
Kathy:
I think several county sites were deleted by mistake a couple of months ago by Mineral Rights Forum. You could always start a new "Stark County" discussion site since things will possibly be heating up in the future for this area.
Kathy Thorsen said:
Thanks Kay, At one time there was a County discussion group and I checked in on Stark periodically but that seems to have disappeared. I suppose there will be more chatter as the rigs get closer to that area.
Kay Maas said:Kathy,
I have mineral rights in Dunn County, right around Killdeer. I believe you can get a better deal. The closer you get to your current deal expiring, the better your deal is going to be. I just turned down $300/mineral acre & 20% royalty interest on a small piece of land just south of Killdeer. Activity is going to pick drastically next year around Watford City & into the Dickingson area. You might want to check out the on line blog Million Dollar Way blog spot. Just google it. A classmate of mine has been blogging about the Baaken for some time now & lets you know what's going on in western ND. Another site that you might also find help is called, the Bakken Shale Discussion Group. Check out both sights. Good luck.
Kay