Don't even know what questions to ask

North Dakota Mineral Rights McKenzie County, ND
1

Hi all. Glad to be a part of this community. It is all so overwhelming I don't know where to start. As best as I can roughly estimate, my Mother owns the mineral rights for about 75 sections of land in ND (4 pages worth) some titled Charlson Deep/Clear Creek, Hoffman Madison Unit, Federal, Wollen etc. A map I looked up shows many plugged wells on some of the land and active wells on others. Many have a carrying value of 1.00. How is a carrying value determined. One example has a gross income of $4,345.03 yet net after depletion was $385.00. Depletion = $3,467.12. What is depletion and where did the $3467.12 go? Thanks in advance for any information. I'm sure more questions will follow.

2

Could you please define what you mean by carrying value?

3

It is a column listing on the asset list.

4

Asset list from a probate? I don't have a context to put the term in, and it may not be useful outside of a specific context.

If there are leases and agreements, you need to collect those so you can read them, and I don't think you will ever have a clue to what is going on until you do. I would be glad to help if we can find something to get a solid grip on.

5

Thank you very much. I have requested them and are being sent. Guess I'll hold until I get them. My Mother has had these since 1960. We can't believe she hasn't gotten any royalties. A landman contacted my cousin about unclaimed land and found it was ours too. Seems they want to drill on it too. I have picked one example to learn on...it is T152N r96w, sec 3: lot 11;sec27 : sw4: sec 28; se4; T153N. R95W. sec 4; NE4 T154N R95W sec33; s2. I think I was able to plot this one and found active oil wells. Will wait until I get more info.

6

Lissa,

I believe the term net after depletion has to due with your taxable income. And the carrying value is the percent allowed. bu t I am not an oil and gas tax accountant so I am not positive. I would ask the operator or check with the IRS. I am a landman however and may be able to assist you in other ways. I am sure you will have a lot of questions in dealing with your mother’s interest. Send me a mesage and friend me on this forim. I’ll help if I can.

7

Hi Joan,

Thanks for the info. I am presently waiting on some paperwork and will go forward from there. There is so much to learn. I have barely scraped the surface. I will have many questions when I see the leases etc. I think.

Thanks.

8

75 sections is big , but how many acres? You will need to check Your lease's 75 section's sounds a little much??