My mother just received a bid to lease her mineral rights in Bowman County. She was offered $1500 on 15 net acres with 15% royalties. It is a 3 year contract with an option for an additional 2. I was wondering if this is a good offer or should we consider holding out for a better one. By the way what is the difference between gross and net acres?
Mr. Batey, I don't have any information on lease prices in your area but I will try to explain the difference between gross and net acres. Suppose you had a 1/2 section farm of 320 acres but only owned 50% of the mineral rights under the farm because when you bought the farm the seller reserved 1/2 of the mineral rights. The gross acres would be 320 but your net mineral acres, 1/2 of 320, would be a net mineral acres of 160. Another situation, a man and wife sell their 320 acre farm but reserve all of the mineral rights which their 4 children inherit when they the parents pass on. Each of the 4 children inherit 80 net mineral acres of a gross of 320. In another generation the amount that each person inherits, divided among more people, gets smaller but the gross acres stay the same. If the parents had kept the 320 acre farm with 100% of the mineral rights and the 4 children inherited and the children divided the surface into 4 parts of 80 acres each, each with it's own title, then the gross and the net on each of the 80 acre tracts would be 80 acres. I hope I didn't confuse you more.
Good Afternoon,
My siblings and I own over 2800acs of mineral rights only in Bowman County. I have been reading that Bowman County expects to have the Oil Industry to arrive in that county in 2016. I too am wondering what lease agreements are going for? Also where to even get started or who to speak too? Can anyone out there give me any direction?
Thanks so much in advance!
Jo
Mr. Batey, What township and who was the lessee?
I was wondering if you have gotten any response to your question? Myself and my siblings also have mineral rights in Bowman County and we would like some direction. Thanks
I did not, where are your minerals in Bowman?