Has anyone been contacted about leasing in McKenzie County, North Dakota.
I moved your question over to the McKenzie County area.
You are more likely to get a more helpful answer if you give the section, township and range. McKenzie is a large county.
Yes, I have been repeatedly contacted and received lowball offers. These have included from land-men in Williston, Bismarck, Minnesota and Montana. Anyone who sends me a “letter agreement”, a lease requiring me to warrant title, etc. gets a no. The cover letters stating what a big favor they are doing for me are particularly annoying.
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Just received offer for 146, 98 10 for 3/16ths and $850 per acre. Also 147, 99, 26 for 20% and 1350 acre. These seem low to me. Any other recents out there? Thanks to all!
Newbie here. Please (you or anybody) elaborate on why warranting title is a significant negative. Thanks in advance.
Well, I can’t provide any legal advice, so I am just providing my layman’s general take on the situation. The oil companies are much better equipped than we are to evaluate the quality of title to mineral interests. Theoretically, they could still make a mistake and then make demand upon a mineral interest owner to defend title or reimburse them for tens of thousand of legal fees and costs to defend title. So, for relatively little bonus money, they make you their title insurer. I do not know how often this really happens, but I just do not want to be put in that position. I do not ever warrant title or execute warranty deeds (quitclaim is all they get).
Thanks. Very helpful. Would you (or anybody) mind describing what a quitclaim deed would do?
I think the quickest answer to this is to Google it. The internet is full of bad information and Google sometimes prioritizes that bad information at the top of the searches because companies pay for placement, but you can generally get the gist of it by reading a bunch of entries.
That said, my layman’s general understanding (no legal advice given) is that a warranty deed basically says you actually own what you are purporting to transfer. A quit claim deed basically says you are not guaranteeing that you actually own anything, but if you do, you are transferring what you do have.
Property law varies greatly from state to state. In some states, that law is grounded in old Spanish law, not English common law. Therefore, if the answer to the question is really important, you should consult with a local attorney or a title company. I am not admitted in North Dakota and the fact my father and grandfather were admitted, doesn’t count.
145/99. Sec 9. Just got a letter indicating an offer for 5Y/$1500/19%. This property has been unleased for several years. Not sure why the sudden interest.
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