Anyone receiving lease offers in Burke county ? I recently received an offer in eastern Divide county. Any and all information would be greatly appreciated. Thanks *
Burke County is very large. You may get more answers if you give the section, township and range. “Any information” is too vague.
Last fall 2023 I received a letter in the mail from a MN company asking that I respond as they had a “time-limited” offer to purchase what mineral rights I had in Burke County.
Uniquely, though, the area under lease would not find my locating too many other companies willing to gamble on buying my rights if I wanted to sell them. Why? All landmen or companies looking to buy leases won’t do so unless they are (1) producing and (2) can make a buck by flipping the rights to someone else.
The area leased has been up/down for exploration and it’s anyone’s guess what a new administration will bring to the table for expanding exploration. It has been said to Never sell your minerals! But at some point when age creeps in and you have no children or anyone remotely that gives a darn to reach out to you, a decision is made to liquidate things.
Diamond Resources, Continental Resources may be options for you to consider contacting.
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Our family received a new lease offer last fall from Liberty Resources. Our township is 161N in Burke county. We are in an active lease with them now. Our former company had bought drill permits and had dates to drill, then Covid hit and they went bankrupt. New lease, and new drillers have now afain bought drill permits but no date yet. Agree to call Diamond Resources or Liberty to see whats goingvon within your township, range and section.
I think I got an inquiry from the same Minnesota company (I remember because MN is not a common source for such inquiries). Several months later, I got a similar inquiry from someone in Montana. I looked up the mineral area and it didn’t look like much was happening, but usually I don’t get inquiries unless something might be about to happen. As such, I think I’ll sit tight for a bit.
As to where some of these inquiries are coming from, I am a bit suspicious. I got a call from someone years ago saying he was from Watford City or Williston, but he had a drawl and clearly wasn’t a North Dakota guy (I was born in North Dakota and can recognize the various regional accents). The oil business is full of shady characters, so be skeptical about what they tell you. I am not a fan of either Diamond or Continental.
If you give the complete section, township and range, folks may be able to give your more information. You only gave the township which in not unique.
yes we have. They sent leases . They sent bank drafts to everyone, I just read this might not be a smart idea. Now I’m worried that tthis bank draft thing is a problem.
Bank draft is a big problem in my opinion. NEVER hand over a lease without getting paid the same day. After I have my oil and gas attorney review and make edits on the draft lease and we come to terms with the lessee, then I sign and notarize my lease and the attorney or my accountant holds the lease until the cashier’s check from the leasing agent clears the bank. Then the original lease is send to the agent. To show good faith, I send a scanned copy of the signed lease with COPY DO NOT FILE in big black marker on every page. They know I have signed so can begin their title work. There are too many cases of leases being filed without payment. Very hard to get those undone. Legitimate agents have no problem with the above arrangement. Agents who are trying flip may file a lease and never find a buyer. Mineral owners with filed leases and no payments are left in a difficult situation. Laws vary from state to state as to whether they can actually get the “promised” funds.
I have yet to see a draft lease that is in the mineral owner’s favor, so investing in legal help up front is wise and may save your family a good sum in future royalties if the well is successful.
Thanks for all the responses. I did call Diamond Resources about a week ago, still waiting to see if they have any interest. Has anyone dealt with Formentera ? I don’t know a lot about them.
From a member that does not contribute often for not having the long-term exposure or experience dealing with minerals no matter what part of the world they are located, I would venture a guess that 90% or better who inherited minerals DO NOT HAVE an attorney, let alone a gas attorney.
A lease to find/explore for minerals in my unlearned view is different than an offer to purchase from any corporation. It is great to see that you have an attorney and accountant to “hold” the lease until a check clears. Commencing title work appears to be good for showing full entitlement.
Let us fast forward to a point where a mineral owner chooses to “sell” their minerals.
I am looking at a current Mineral Deed in which a company in CO has made an offer to purchase mineral rights I inherited in 2010 that have produced since 2011. Although I signed a document electronically and verbage had it that by doing so the electronic signature would be valid, I NO NOT SEE anything on the Mineral Deed indicating what dollar amount was discussed and agreed upon.
Again, not a gas/oil attorney or one having done this transaction in the past, after seeing your post about signing a “lease” and having it notarized but having it held until money clears, it has my thoughts in a proverbial whirl.
I now am freaking out over if I overnight the mineral deed if I will see a check or wire transfer. There is nothing on the mineral deed paperwork discussing money. Is it supposed to be this way? That a payment is normally on a 2ndary document?
I too worry about fraud and losing sight of what has been mine. It may be that all is 100% legit the way it is conveyed to me but there are no gas/oil agents/lawyers in Knoxville, TN remotely aware of anything going on in CO, TX, OK, MT, ND, etc.
I can’t believe a company will just hand over a check without something in hand first.
Deeds do not have the money mentioned on them. The letter of offer should mention it. I would not hand over a deed without getting paid either. In the past, banks would hold a deed or lease until the money clears. Many had a Collections department. You might ask your bank if they still do that. Your attorney or accountant may be able to do it as well. The company buying or leasing usually does not do their title work for due diligence until they are sure they have a deal. It is expensive to do the title search back to patent and they do not want to waste resources. That is why the scan of the copy with DO NOT FILE is usually sufficient for the experienced buyers and lessee agents to begin their work. Probably always an exception, but you do not want a lease or deed out there to be filed without compensation.
We have about 160 acres in 163N-90W- Sec 6 That are not leased any more. Plus mineral rights in the Flaxton Madison Unit. Any recent changes? Who is active?
The sudden flurry of activity in Burke is interesting. An acquaintance just got a lowball offer (after decades of silence) for some minerals in 162-94-##. There appear to be new good wells nearby in sections 19 (4/3/24) and 21 (12/23), so that is what is likely driving the sudden interest.
Formentera is the company that bought Rockall-Petro Harvester. Our family was with Rockall-Petro when they went bankrupt around Covid. Formentera bought them through the bankruptcy. Our wells that Rockall were going to drill are now with Formentera and still on the ND confidential oil list. They just renewed our drilling permits too. I believe they are finally ramping up to be a bigger player in the bakken.
Hi,
I have been seeing some leases being filed at the Burke County courthouse the last month or two. I too was contacted a few weeks ago about a lease offer. The lease bonus offer was low, interest rate (15%) was low, as well as wanting a 5 year term instead of 3 years. Meanwhile looking at the Feb Mineral Auction Results online show the sections 162-94-16 or 30, or 36 brought $404-$1151 Bonus/Acre. Also, online on the map you can see the docketed cases that are being approved for large pooled sections.
I was advised to be very patient because things are beginning to happen. So this is interesting to watch the Burke County areas right now.
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Thanks Mary Beth, The auction site gives me a good idea of what I should be negotiating for as far as bonus. Does anyone know where i could find a good lease form to start with ? One that wouldn’t require as many adjustments as the one that the landman sends out. I’d like to have most of my ducks in a row before I have an oil and gas attorney prof read it. Thanks !
We own mineral interests in Burke County. Have received no oil and gas lease proposals in the last several years.
Inheriting minerals in 2011 whose history in the family dated back to the late 1920’s for both MT and ND, it was always in the air “if ever” minerals would be extracted. Sadly in 2010 when my mother passed, I and 2 other siblings inherited those rights that magically began producing in Burke County but more removed from the true “hot spots”.
As it turned out, a sister died in 2010 that led to her donating her share to 4 nieces/nephews. A brother sold his shares in 2018 that I did not find out about until this year. We all do things for a reason but the thought to “retain” and “pass along” for future generations is a great tribute “but” if you don’t have children or a decent interaction with nieces/nephews, it becomes bitter sweet to wonder just what to do.
Late 2023 I received a notice from a landman in MN indicating interest in buying my share of minerals. I put it aside until mid March and sought out 2 dozen other landmen/companies asking about what, if anything, was going on in Burke county. I realize, like others do, that when the administration changes and the current world economy that “anything” or “nothing” might transpire in ND, let alone MT.
Not all townships are producing. Some do and will and others? Well, I’m not a gambler and so I chose to recently “sell” my minerals to a landman from CO that ultimately works for Continental. Initially Diamond Resources was on paperwork that today I recognize as a firm that does the paperwork but not the drilling. Few wanted to go beyond Continental to buy and why? Landmen are there to look to “flip” mineral rights also. For any large firm to produce more wells means having more of a percentage in any area to command reasons for laterals, etc. I am not at all up on the jargon or history or the why or why nots.
But Continental, in my case, had the area sewn up to get better offers from others. I chose to accept an amount that would be equal to what I had gotten in the last 12 years of production as production fell off. A decision made means not looking back with regret.
In your or others case, you have to determine if your acreage is producing at all, whether more exploration will be done or not. “Inactivity” doesn’t mean it might not ever be explored but don’t expect to get a lot if not being done. If not in a hurry to sell, then hold on. I did not!
Since I had not seen anything happen in Burke County for a long time I was surprised to get an offer to lease my minerals there. I was advised to be patient and see what is going on. Meanwhile, I did see more leases again at the courthouse in Burke county when I Iooked last night. It is about $30 a month for a NDRIN subscription.
I know that the lease bonus is not public info. Would I be correct in thinking that the rest of the lease agreement could be seen ( meaning terms, conditions and Pugh clauses ) online for as little as $30 per month ?