State lease for the school land tract you mentioned would be $270 bonus, 1/6 royalty, 5 year primary term and all the Ts and Cs in the state lease form which is different from the commonly used producers 88 by oil companies when securing privately owned minerals.
There was more than one bidder for this tract or it would have sold for $1 per acre. State land website will show who has the lease. You may want to consider the pros and cons of leasing to the same company that has the adjacent tracts leased if there are multiple companies in the area and you end up with more than one offer. I would ask the landman about what other holdings in the area the company either has leased or is in the process of trying to lease. Canadian companies do operate in the US from time to time. I have found that they are not as expeienced in dealing(negotiating) with private owners as much of the minerals in Canada are govt owned. Also, they are experienced with provencial regulators and if they go south (even by one tract) they are into the us regulatory. There are several fields in MN that terminate right on the international border. Bob On Sep 24, 8:50 am, "Rufus O'Malley" <[EMAIL PROTECTED]> wrote: > Hello Border, > State mineral leases command a much, Much higher rate of bonus that do > privately held mineral leases - they are put up on auction and several > bidders. Some mineral acres go for 1000's per acres depending on > location and the number of oil companies or independants bidding... so > don't compare your offer to the school lands - it's apples and > oranges. > Is this the 'first offer cycle' with this company-- if it is, and it > were me, I would counter. But, that's me.... Sounds to me like > there is high interest from you and the other posters --- I would > probably put my emphasis on negotiating the royalty upwards... > On Sep 24, 1:06 am, Border Minerals <[EMAIL PROTECTED]> wrote: > > > > > We have multiple mineral acres in Divide County up along the Border > > that have been in the family for over a century and have just received > > a lease option at $125 per acre @ 17%. for 5 years or $100 dollars for > > three years and another $75 if extended for another two years We have > > also just learned that someone has just recently secured the royalty > > rights of a extremely large land hold just across the border from > > us. > > The school section to the east of us just sold in the August auction > > at $270 an acre. > > Is there anyway that we can determine who has secured these large > > Canadian lease rights ? > > Is it true that the school sections typically bring more initial money > > due to the state tax credits offered? > > The last three year lease that we had was for 3/16ths or 18% expired > > about six months ago and in that lease we had got them to add a 2 year > > gas shut in clause, a spacing unit pugh clause, and a vertical pugh > > clause . Is there any other considerations that we should be > > requesting? > > Thank you so much for any advise and or information that you can > > provide to us.- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
