Any views on Chesapeake offering leases in the Lefor, ND area? What kind of offers are they making? We have rights in T138, R94, S35 and Sullivan Land Resources, represented by Sue Kinsley (?) has been making inquires, offering $600 an acre for 3 years.
Sullivan Land is another Chesapeake Puppet.
I guess I don't know about the "puppet" business. However, Sullivan is the leasing agent (aka landman) for Chesapeake Energy. Sullivan is offering me a lease in Hettinger County. I think Chesapeake is tight with their money (though they are doing quite well....no pun intended) and will offer as little as possible. My offer started at $300 in June and is at $550 right now....although I still think it is LOW.
I'm just beginning to learn about all this mineral rights business, so I'm sure you'll find a better source of info in this forum.
Regards, Ron
Thanks, Ron. Your’s is a more balanced view and I appreciate the information.
Here is your land on an oil map to see how close producing wells are: https://www.eser.org/35-138n-94w-stark-county-north-dakota
It benefits us to share as much information as possible to understand what the values really are. I would say to not rush into any lease. Good luck!
Thanks, Montana. Ours is in Township 135, Range 97. What is the first number on the map? Is that the Section number?
Don't see anything active but some inactive where I THINK we are on the map.
Ron Gall
Montana A. said:
Here is your land on an oil map to see how close producing wells are: https://www.eser.org/35-138n-94w-stark-county-north-dakota
It benefits us to share as much information as possible to understand what the values really are. I would say to not rush into any lease. Good luck!
Yes, the first number is the section. You can either put the numbers in the URL or just move the map around to find your area. I have no idea of how accurate or updated this map is, but I do know some of the wells I have seen are shown on the map. The closer your land is to a producing well, the more you should be able to negotiate for lease payments.
Chesapeake has made us an offer of $550/acre in Hettinger County (don't remember which county Lefor is in). Ours also came through Sullivan Land Resources and I don't know if Sullivan works for other companies aside from Chesapeake and it's affiliates (eg. Classic Petroleum Inc etc), but I'm going to ask our landman soon.
Ron
I know of other people with land in Hettinger County who negotiated to $550/acre also, but only 1/6 royalty. Also through Sullivan, but I don't know the oil company. I don't believe they signed the lease yet.
Be sure to get the warranty clause removed. They will do this.
Just got the lease papers today and it doesn’t actually state the amount per acre and it is only 1/6 royalty as well. There are some other details I still need to negotiate anyway…like the renewable clause. You and others on this forum have been invaluable to me! Thank you.
Montana A. said:
I know of other people with land in Hettinger County who negotiated to $550/acre also, but only 1/6 royalty. Also through Sullivan, but I don't know the oil company. I don't believe they signed the lease yet.
Be sure to get the warranty clause removed. They will do this.
The amount per acre will not be on the lease. It should be part of the "bonus" payment, probably called "Order of Payment". However, you will not want to sign a lease until you have all the details of the bonus payment listed, which should be the amount you negotiate. In addition, the Order of Payment will list a time line where they will verify you own the property. In all likelyhood, you will not get paid until the end of that timeframe. In some cases this timeframe is 120 days. This is a very long time when the oil company has your lease tied up, but does not pay you. If possible, negotiate this to a smaller time, they should not require 4 months to verify you have clear title to the mineral rights.
Good luck!
There are a few other sections I’m looking closely at too. I plan to use the royalty clause on the NDSU web site as a guide as well as the advice I’ve gotten here in this forum. I appreciate all the suggestions and direction I’ve recieved and continue to recieve.
Latah, Ron
Montana A. said:
The amount per acre will not be on the lease. It should be part of the "bonus" payment, probably called "Order of Payment". However, you will not want to sign a lease until you have all the details of the bonus payment listed, which should be the amount you negotiate. In addition, the Order of Payment will list a time line where they will verify you own the property. In all likelyhood, you will not get paid until the end of that timeframe. In some cases this timeframe is 120 days. This is a very long time when the oil company has your lease tied up, but does not pay you. If possible, negotiate this to a smaller time, they should not require 4 months to verify you have clear title to the mineral rights.
Good luck!
The company will typically send you their stock lease prefilled out. Which you will certainly want to modify. I just noticed this, but on the eser.org link I listed above, if you find your section scroll down and a list and scan of all recently recorded leases will be shown. The leases usually won't have the amount per acre, but it will list the details of the lease such as royalty and clauses. Look at as many of these leases in nearby areas as possible and note the crossed out lease sections. These were typically reviewed and modified by an attorney.