Oil & gas discussion group for those interested in Dunn County, ND. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
My family (4 siblings) holds mineral rights in a few parcels in Dunn county. It has taken quite an effort to get all the wills probated so that my generation has now established their rights. We have been thinking about managing those by forming a mineral trust or LLC so that our children don't have to continue to deal with this. I have read some pros & cons on this in some forums. But, I have not seen or been able to find specific recommendations other than to have an experienced lawyer help. How can I locate a referral or determine who in Dunn co. or regionally has such experience? Thanks for your help.
Group Members,
We can't apologize enough, but the previous group has been inadvertently deleted by an intern who was helping add descriptions to various groups. The mistake does not align with the high quality that we are striving to deliver. We will continue to work hard to make this the best place to share and gain insight for everyone interested in mineral rights. We appreciate your understanding and ask that you help us kick off the Dunn County discussion.
If you have any questions, feel free to contact me directly.
Reagan
MRF Admin
Greg, I don’t think you need to hire an attorney in Dunn Co. or even North Dakota. Though once your entity is created you will record the deeds there transfering your interests into it. Beyond that, I too am exploring the options and can’t make a firm recommendation as to the best vehicle to use… LLC, family partnership, etc…
Having received answers to some of my initial probative questions, which now makes me more quizative, seeing our location at 9-141N-92W, and beginning the process of leasing, and comparing other property (in-laws) at 17-136N-96W. It appears that they are both on the "fringe" of what the maps show as "over the oil and gas" But it would seem to me that the Dunn county property would bring more of a lease due to its' general location being more "over" the oil and gas than would the Hettinger county land. Shouldn't our expectations be more favorable for the Dunn county land?
To update, the first of the 4 wells I have an interest in, in T149 R93 Sec 24 in Dunn cty is finally producing and IP'd at 2695 bbl for the first 24 hours. No data on the other 3 yet, but I'm pleased with the first. Kodiak offered $3,000 per acre and 20% royalty for these acres a year ago.
Tallmac, yes you're both on the fringe of things; You to the east, the in laws to the south. My best suggestion would be to seek as many offers as possible.
Just to get you started; Go online and check what was paid on the BLM (federal) & ND (state) leases over the past couple of years in your township or adjacent ones. Note bonus amounts paid per acre on each and also write down which companies or individuals leased those tracts. This provides a base line on lease bonus amounts, and gives you some prospective Lessees to contact. Though realize the amount paid on government leases is typically higher than that paid to private owners. Ideally you want a half dozen prospects to contact. Tell each what you own and where it's at then see what response you get. Good Luck.
Mr. Kennedy glad to hear they hit a good one for you. Perhaps all the headaches they gave you will finally pay off.
Thank you Eastern MT, I hope everyone else does as well or better.
I noticed Oxy USA has a permit for a well in 141N, 93W Sec. 20. Anyone own an interest in this section or nearby and care to share thoughts? I own minerals 2 miles to the north.
Hello HP. I have mineral acres in T-141n R-93W S-14 & 15. I have not had any contact with any oil companies and would also like to know if anyone has been offered a lease in this area.
Hi kelli, I own some net minerals in sections 10 and 12 in 141N 93W. I leased with Basin Land Co. I think they have an office in Dickinson.
Keli, I am surprised your acres are not leased yet. Is it a small percentage of those sections, not sure thatwould matter? Oxy is going to drill right below you. I don’t know which landman to contact for Oxy.
Ms. Graham, I hope your contact information at the recorders office is up to date? If your information is current, I think you should be hearing something soon. I think the companies are trying to lease properties with a 5 year outlook. I think this because of all the 3+2 and 3+3 offers I have been hearing about. I would not accept a lease for more than 3 years, no option, unless I needed the money immediately. Options are not in the mineral owners best inyerest. Good luck
Thanks to all for the information. Great to have this website available for questions and comments.
Gerald--Rapid City I have land and mineral rights 10 miles south of Golden Valley, N.D. 1/2 mile east of Dunn county. Any activity around there?
I've had a lease with Continental Res now almost four years, on a five year lease, 145n 91w sec 18, has anyone had any experience with this company? Wondering if they don't drill whether to get the section appraised before signing if my family is approached again. I hear 3/16th is much better than 1/6th, and I also have been told to get a pugh clause in my next lease. The closest new well is five miles directly west.
Mr. Turnbow, I hate to be the bearer of bad news, but the well right next to you in section 17 is inactive, never produced, and the one to the west has only produced less than 13k bbl between 8-31-2008 and november of last year. Doesn't mean there isn't oil there, but it does mean they are having a hard time finding it. I would feel I was in less than the best bargaining position and would consider lease offers seriously. I'm only posting this because I would rather know than not know.
Mr. Turnbow,
My family is fortunate enough to have producing wells in T146N - R96W being operated by Continental Resources. And, wells producing in T145N - R93W, but operated by Marathon Oil. The original lease in both parcels was with Marathon. It turned out that in the first area Continental had consolidated the larger group of mineral rights owners on lease. Due to the alert attention of one of my siblings, the active well was noticed. We asked Marathon about this and were referred to Continental as the operator that was responsible to distribute royalty payments. We have found Continental to be responsive once we showed the documentation that we held interest. We have been in this arrangement with them for about a year.
While I feel they should have taken more initiative. In all fairness I need to point out that we were in the midst of getting probate work done to record the ownership to my generation, since the prior generation had not done that.