Energy Industry (Oil & Gas)/Mineral Rights

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Question
I have recently inherited 13 net mineral acres Wownship 155 North, Range 95 West, 5th PM, section 12: NW1/4, W1/2SW1/4, Section 13: W1/2NW1/4 Williams County North Dakota.  I have been offered $1,500.00 per acre for a three year lease and 3/16th royalty by XTO energy.  I am wondering if the bonus and royalty are reasonable and what the production in the area is like.  Any hints on chance of drilling a new well would be appreciated as well.  Thank-you,  Tammy

Answer
Sorry I don't have any advice on your N.D property.  I would offer some advice on Royalty contracts that I'm aware of happening here in PA.  Watch out for, and make sure, there are NO POST PRODUCTION DEDUCTS in your agreement PLUS make sure you have ROYALTY STATEMENT AUDITING RIGHTS

Energy Industry (Oil & Gas)

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Charles E. Felker

Expertise

Energy questions related to homeowners and their energy supplier. Questions related to process control. HVAC questions Natural gas transmission, distribution.

Experience

Penn State grad 1954 in Petroleum and Natural Gas Engineering. Forty five years experience in process control, natural gas processing, compression, transmission and distribution

Organizations
ASME

Education/Credentials
BS Petroleum & Natural Gas Engineering Pennsylvania State University

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