ND Oil and Gas Advice Column

Posted in the North Dakota Forum

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The Big Fish

Denver, CO

#1 May 16, 2008
Got a question about your new oil well? Or any other general oilfield question, I will try and answer it.
DSB

Boise, ID

#2 May 18, 2008
I have inherited mineral rights in Renville Co. ND
gross acres 120, net acres .13 Twp 162n range 87w.
and 55.84 gross acres, net 4.64 acres Twp 162n range 86w. I have had it. I got $10 for the .13 for 5 year term includes rentals plus 1/8 royalty. On the 4.64 net acres I got $20 per net acre and 1/8 royalty.
This was received in 1997 after my brother checked into it. I have had this mineral right since 1984 and 1997 was the first time I heard from the company and I haven't heard from them since. What does the few dollars paid and acres and royalty and rental mean. Shouldn't I be getting royalty from the minerals. The company is Empire Oil Company out of Williston, ND. Am I the one who has to contact the company every 5 years?
The Big Fish

Denver, CO

#3 May 19, 2008
DSB wrote:
I have inherited mineral rights in Renville Co. ND
gross acres 120, net acres .13 Twp 162n range 87w.
and 55.84 gross acres, net 4.64 acres Twp 162n range 86w. I have had it. I got $10 for the .13 for 5 year term includes rentals plus 1/8 royalty. On the 4.64 net acres I got $20 per net acre and 1/8 royalty.
This was received in 1997 after my brother checked into it. I have had this mineral right since 1984 and 1997 was the first time I heard from the company and I haven't heard from them since. What does the few dollars paid and acres and royalty and rental mean. Shouldn't I be getting royalty from the minerals. The company is Empire Oil Company out of Williston, ND. Am I the one who has to contact the company every 5 years?
No you dont have to contact them...they will find you as long as your address is update at the renville county court house. IS there a well on there already? If you do have a well then they might not have been able to find you. Also, even if there is a well, it sounds like you dont have a lot of acres. 4.64 acres and 0.13 acres isnt much of anything. Usually the oil company has a minimium of $100 before they have to pay or it has to accumulate to over $100 before they have to send you a check. This might be the case here.
dsb

Boise, ID

#4 May 23, 2008
The Big Fish wrote:
<quoted text>
No you dont have to contact them...they will find you as long as your address is update at the renville county court house. IS there a well on there already? If you do have a well then they might not have been able to find you. Also, even if there is a well, it sounds like you dont have a lot of acres. 4.64 acres and 0.13 acres isnt much of anything. Usually the oil company has a minimium of $100 before they have to pay or it has to accumulate to over $100 before they have to send you a check. This might be the case here.
Thank you for your answer.
The Big Fish

Denver, CO

#5 May 28, 2008
The Big Fish wrote:
Got a question about your new oil well? Or any other general oilfield question, I will try and answer it.
?
The Big Fish

Denver, CO

#7 Jun 7, 2008
The Big Fish wrote:
Got a question about your new oil well? Or any other general oilfield question, I will try and answer it.
??
The Big Fish

Bozeman, MT

#8 Jun 24, 2008
yep
Amber

Wilsonville, OR

#9 Jun 25, 2008
I inherited mineral rights 20 years ago in Dunn County but didn't know it until two years ago. A couple of companies contacted me to lease the mineral rights and I didn't know much about it so I agreed. I never received documentation on the township/range/sections that I actually inherited. Is there a way to find this information out without traveling to North Dakota?
The Big Fish

Denver, CO

#10 Jun 25, 2008
yes. call the dunn county courthouse in manning. i am unsure of what department to talk to but considering the courthouse is the size of a starbucks you should be able to get an answer quickly. you might have hire a title company to get this info also but i know a couple of years back there was one in manning across yhe street.
The Big Fish

Bozeman, MT

#11 Jul 6, 2008
Got an oil well type of a question. Maybe unsure about what a oil lease is. Then Ask the big fish. I dont know everything but i will give you my opinon
Larry

Missoula, MT

#12 Jul 7, 2008
I have mineral interest in Renville (10 net acres) and Mckenzie counties (35 net acres) Been offered $150 acre, 5yr and 1/16?? Does this sound to be in the ballpark for current leases?
Minnesota Hillbilly

Owatonna, MN

#13 Jul 7, 2008
Did you say 1/16???
That doesn't sound right, although I must admit that all I know I have read here in this forum in the last few days.

Older leases seem to be mostly 1/8th.....recent ones have been 1/6th and even 3/16ths.

The recent advice has been to negotiate for three years instead of five.

It all depends on how much activity is going on near your acres and you can possibly get some input from others here who know your area.
Good luck.
Minnesota Hillbilly

Owatonna, MN

#14 Jul 7, 2008
Also important to make sure you're dealing with a reputable leasing company who has a history of hooking up with serious oil companies who actually drill wells.

Some leasing companies are just in the business of trying to flip leases for a profit and some are not to be trusted.
Larry

Missoula, MT

#15 Jul 7, 2008
Thanks Minn. Hillbilly
Just got one lease in the mail today and it was for 1/6. Talked to the other landman and he raise the per acre price from 150 to $200 and this county doesn't have that much activity. Am waiting for a returned call to see if I can push the $150 per acre a bit higher. Sort of interesting as I researched old records and I've been releasing some of this same property since 1985. Property is east of Watford city and should be ripe for the Bakken Drilling.
Any more advice.
Minnesota Hillbilly

Owatonna, MN

#16 Jul 8, 2008
Have an attorney familiar with gas and oil issues check any lease you intend to sign.

Sometimes you do better in the long run by agreeing to fewer dollars per acre while getting a shorter lease term like three years because this motivates them to drill sooner, and that's where you get the REAL money.....again, make sure you are dealing with people serious about drilling.

The more experienced folks will show up here soon and they can give you more and better information than my basics.

I'm just recounting what I've read in the last few days on this and other forums.
The Big Fish

Bozeman, MT

#17 Jul 8, 2008
Larry wrote:
I have mineral interest in Renville (10 net acres) and Mckenzie counties (35 net acres) Been offered $150 acre, 5yr and 1/16?? Does this sound to be in the ballpark for current leases?
yea thats typical....
Minnesota Hillbilly

Owatonna, MN

#18 Jul 8, 2008
Larry wrote:
Property is east of Watford city and should be ripe for the Bakken Drilling.
Any more advice.
Yes, east and a bit south is where my mineral acres are located and I've been notified I have interest in one well and a second is scheduled to start drilling August first.

It sounds like there are a lot of wells in the area, so you are in a good bargaining position with your lease. Do some serious research to find out what the current deals are. I suspect some may be getting way more than what you are being offered, but I don't know.

Just make sure you sign with a good company.
sajlw 1604

Plover, WI

#19 Jul 8, 2008
Minnesota Hillbilly wrote:
Have an attorney familiar with gas and oil issues check any lease you intend to sign.
Sometimes you do better in the long run by agreeing to fewer dollars per acre while getting a shorter lease term like three years because this motivates them to drill sooner, and that's where you get the REAL money.....again, make sure you are dealing with people serious about drilling.
The more experienced folks will show up here soon and they can give you more and better information than my basics.
I'm just recounting what I've read in the last few days on this and other forums.
Hi
I also own some mineral rights in Golden County and I am looking for the best oil attorney to settle some conflict issues. Any suggestions ???
sajlw 1604

Plover, WI

#20 Jul 8, 2008
I need a good attorney on ND oil rights for a property in Golden County near Beach ?? Please advise !!!
Minnesota Hillbilly

Owatonna, MN

#21 Jul 10, 2008
That topic has been discussed on the "Oil Leasing and Drilling" thread below......which should be required reading anyway, since it contains a lot of info that will help you.

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