I am wondering what happens next after leasing mineral rights in North Dakota, I do not live in that state and unsure of the process of what comes next if at all. Do you deal with an oil company or still with the leasing company if they decide to drill? I have also heard that oil companies can do some kind of horizontal drilling across your mineral rights and not have to pay, does anyone know if this is right? Do they have to let you know if they drill in your township?
Do not sign a lease untill you have a certain way of getting paid. The draft they include will give them the OPTION to pay you. They may not pay it even if your title is clear. That does not mean they won’t record the lease you send them. That’s a very bad deal for you. They have tied up your minerals, and you will, if you aren’t an attorney be out expenses to clear your title. Do not give them a signed notorized lease till you have in your hand either the money or a check that gives you recourse if they do not pay. 3 times I have been given drafts, for leases which were recorded, and then the drafts were not honored/paid. I have never had a draft honored/paid, but leases were always recorded. I hope this is abundantly clear. I know it’s scary. There are probably answers to all your questions here. Google search will probably be your friend. I will say that usually you will deal with the operator after they drill. I’ve talked to few people in the oil business that I’d like to do business with. I think mostly they don’t steal. That doesn’t mean they won’t take advantage of the general publics ignorance. The only way to avoid making an extremely poor bargain is to educate yourself and or hire a professional to help you. It’s your oil. The oil is your property. The oil companies aren’t responsible for informing you about your property. They could have a well on your property right now and how would you know? This wouldn’t be stealing. They would be holding the money for you waiting for you to contact them, and possibly show them your clear guaranteed title to the minerals. Good luck and don’t make any deals till you’ve had time to educate yourself. Best of luck; RWK