In my mineral deed, its me and 3 of my relatives it says that I have an undivided 1/4 interest as tenant in common.
My legals in one section are N1/2NE1/4 in another section NW1/4 and S1/2NE1/4. I have been given a lease offer for the N1/2NE1/4 of the first section I listed above and the N1/2NW1/4 and S1/2N1/2 of the second section I listed above. So it’s containing 320 acres “leased premises”
They are offering a bonus amount of 500 which is multiplied by how many net mineral acres I own. I want to know how I figure that out and why they put down 25 acres when they say later that if I own more or less they will either increase or reduce the consideration payable.
Why can’t they figure that out beforehand?
I was wanting to know how to calculate the decimal royalty interest as well. This lease is offering a 18.75 % royalty. Any information or education into these matters would be very much appreciated. I am currently unable to afford attorney fees and would like to know more before I sign anything. Thanks in advance
Bradley:
Welcome to the community.
Most mineral interests are very fractionalized. Your actual interest would depend on the acreage owned by the relative who issued the deed. The company with whom you are dealing will probably have that information. You may want to have a landman confirm your fractional interest.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
So I just found the old deeds. My Great Uncle and Grandma were given 100% undivided interest on the 320 acres and my Grandma passed away and passed down to her 4 kids an undivided1/4 interest as tenant in common to those 320 acres and my great uncle is still alive. Is that enough to know my net mineral acres owned?
It sound’s like Great Uncle would have 160 acres, and grandmother’s children 40 each. Obviously, this is not a title opinion because the entire record would have to be examined. For instance, was the great grandparent’s interest fractionalized? Did anybody convey an interest or portion thereof? Not trying to be a killjoy here, just be aware that reviewing your deeds might not provide the whole story.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
I went back as far as the records went and found the deed where I believe the minerals were obtained . It was a real property deed my great grandpa purchased from the county and it has a part that says the party reserves ownership of __ percent of all oil, natural gas etc. and it’s left blank so does that mean my great grandpa got 100 % of the minerals? Here is the deed
You should have a North Dakota attorney review this. It appears to be a deed from a county for back taxes. This is also a transcript of the actual document. This was common before photocopies were available. Therefore, there may be a transcription error. But it does seem strange that a county would reserve minerals when issuing a tax sale deed. I’ve never run across a blank where a number should be.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
