Mineral rights?

[hambirg]

Long story short. . .my Mom's family had a large farm in North Dakota. When she was dating my Dad, way back when, he worked for a company that surveyed the land and he said there was lots of oil there. They sold the farm but kept the mineral rights. Now there is a company that is offering $3000 a month for 3 months and then 1/6th of the oil to each of the 9 kids. I'm trying to figure out if this a standard deal. Does anyone here have any experience or insight with these types of things? Should they be negotiating for more? Or is this a good deal? Is this the industry standard? TIA

 

[muffyn]

Long story short. . .my Mom's family had a large farm in North Dakota. When she was dating my Dad, way back when, he worked for a company that surveyed the land and he said there was lots of oil there. They sold the farm but kept the mineral rights. Now there is a company that is offering $3000 a month for 3 months and then 1/6th of the oil to each of the 9 kids. I'm trying to figure out if this a standard deal. Does anyone here have any experience or insight with these types of things? Should they be negotiating for more? Or is this a good deal? Is this the industry standard? TIA

we are going through someone who wants the gas rights (lease) in our area. doing some research I found a couple really good land owner websites that give insight on these deals. i am not on that computer where I saved them, do a search on internet.
I might come across them tomorrow.

 

[BarbWB]

You need to contact a really good land rights attorney in the county. Don't ask on DisBoards!!!

 

[Smuggs]

Long story short. . .my Mom's family had a large farm in North Dakota. When she was dating my Dad, way back when, he worked for a company that surveyed the land and he said there was lots of oil there. They sold the farm but kept the mineral rights. Now there is a company that is offering $3000 a month for 3 months and then 1/6th of the oil to each of the 9 kids. I'm trying to figure out if this a standard deal. Does anyone here have any experience or insight with these types of things? Should they be negotiating for more? Or is this a good deal? Is this the industry standard? TIA

I do not think that is a good deal, I know people here get more for gas leases. You also have to have things written in to protect the land and the water. That was the biggest hurdle for my parents lease, but they found a land group that had the same interests and joined with them for better leases. Also some states have a oil and gas laws concerning royalty and such.

Talk to a GOOD lawyer to protect yourself

 

[gator75]

Ia"m fron North Dakota and thats all you hear about is the oil and mineral rights. I agree with the above poster though you reall need to speak with an experienced attorney. Oil companies aren't always known for their honesty and fairness in these deals they know the average person dosen't always know what is a good deal in these situations and they take advantage of that.