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When a land owner doesn't have mineral rights, How does the mineral rights holder to that land get to the oil beneath the land he doesn't own?
If you own land with the mineral rights in the Bakken region, are you almost guaranteed to walk away a millionaire?
What kind of money is realistic to expect per/acre?
How close are the wells?
Companies pay the landowners topsoil to drill on their land. Usually around 60,000 or so. The mineral holder really don't have anything to do with it other than signing their minerals to lease them to a company that will then have a rig drill on land for it.
Not necessarily guaranteed to be a millionaire, depends on how many mineral acres they hold and how good of a producing well it is.
How close are the wells? LOL, well I believe they usually are drilling 2 well per section, but I am a bit unclear on the regulation of that. I was talking to another person the other day on that very subject, but can't remember what they said it was.
Companies pay the landowners topsoil to drill on their land. Usually around 60,000 or so. The mineral holder really don't have anything to do with it other than signing their minerals to lease them to a company that will then have a rig drill on land for it.
But the companies can't drill without consent of both land owner and the holder of the mineral rights, correct?
Do the landowners ever negotiate some royalties from the mineral rights owner, in addition to the topsoil payment from the oil company for allowing the company to drill on his land?
Quote:
Not necessarily guaranteed to be a millionaire, depends on how many mineral acres they hold and how good of a producing well it is.
How close are the wells? LOL, well I believe they usually are drilling 2 well per section, but I am a bit unclear on the regulation of that. I was talking to another person the other day on that very subject, but can't remember what they said it was.
But the companies can't drill without consent of both land owner and the holder of the mineral rights, correct?
Do the landowners ever negotiate some royalties from the mineral rights owner, in addition to the topsoil payment from the oil company for allowing the company to drill on his land?
I'm curious... just like George.
Thanks for the link.
If the land owner doesn't own the mineral rights they don't have any say on what goes on below the surface.
Companies pay the landowners topsoil to drill on their land. Usually around 60,000 or so. The mineral holder really don't have anything to do with it other than signing their minerals to lease them to a company that will then have a rig drill on land for it.
Not necessarily guaranteed to be a millionaire, depends on how many mineral acres they hold and how good of a producing well it is.
How close are the wells? LOL, well I believe they usually are drilling 2 well per section, but I am a bit unclear on the regulation of that. I was talking to another person the other day on that very subject, but can't remember what they said it was.
Why you asking so many questions?
Don't ask to buy my minerals!
Are they really getting $60,000 for locations up there?
It's an ingress/egress thing. If I own land that is surrounded by your land you can't legally prevent my access (road, bridge, etc.) to my property. Same goes with minerals (9-5/8", couple miles long, hole in the ground).
Spacing varies. This explains it better than I can. Million Dollar Way (All Bakken All The Time): FAQ: "160-Acre Spaced Wells" and "320-Acre Spaced Wells"
Potential $ varies too. A stab at explaining it here. NDPC :: Royalty Owner Information Center
I can tell you that in my area as little as 5 years ago mineral leases were in the $350/mineral acre range. Couple of years ago it was around $550 and now some are double or triple that. Lease terms have changed a lot too. 10+ year leases used to be common but now you can lease for as little as 3. Partly explains why they are pushing so hard to get the holes drilled right now.
Precisely. Which is why, if you own your mineral rights, you don't want to ever sell them!
Lease only.
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