I recently inherited mineral rights in Divide Co. and am looking for general information on the terms of my lease. A landman has drawn up documents to ratify the lease that was signed in April, 2017 to continue with me.
My share is 5.08 net mineral acres of the original 160 acres. The lease is 3-years with 2-year extension option, 3/16th royalty of proceeds of the well. (Aeberg 8-5N-1H).
Is it worth it to have an attorney look over a lease agreement and can anyone recommend how to go about finding one in North Dakota? I am trying to do research and understand as much as possible - any advice is greatly appreciated.
Anna,
It is unusual, in my experience, for a lease that is less than 3 months old to need ratification. Be suspicious that there is something amiss with the original lease. Perhaps it, or a previous lease were invalid when the well was completed. You may be entitled to a new lease at better terms.
If you know a law firm in Helena with mineral capabilities, take the documents to them for review. If that lawyer needs physical data on the drilling capability of the well, "friend" me and I'll look up the data for you.
It is good to see a new well in Divide cO. Good luck.
Gary L Hutchinson
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Gary-
My grandmother passed away in May and she signed the lease in April that is why there is now a ratification for the lease to transfer to me. Does that make sense and should I still be suspicious? thank you for your help-
Anna
Anna, I am always suspicious of oil companies, but that is just because I know them.
If the lease is valid, it needs no ratification. I would be checking on things such as; Was grandmother ever paid?
I would be looking to see if the company was looking to get more in the ratification than they bargained for in the lease.
Sign nothing until you are certain you understand all you need to know.