Therefore, North Dakota treats mineral leases differently than sales, gifts, or other transfers of mineral interests. Based in Minot, our dedicated oil and gas law attorney is ready to protect your rights and obtain results for you. Therefore, an owner of severed North Dakota mineral rights must either: in a timely manner in order to prevent the mineral rights from being considered “abandoned” – which will result in ownership of such rights reverting to the owner of the surface rights. After such conveyances – providing that they are done properly: Upon Swen’s death, if he leaves his mineral rights to his three children – Ole, Lena, and Hildegard – as an inheritance, then: Complete mineral rights can be owned by multiple owners either as: Each tenant-in-common or joint tenant of mineral rights will have to consent to lease their mineral interests by signing a mineral lease. Therefore, it may be advisable for the life tenant to join with all of the remainder persons, to: Such life tenants and remainder persons may agree to divide any compensation received pursuant to a mineral lease in either the lease itself, or in a separate agreement. Start here if you’re a newbie. Topics of Interest – North Dakota Intestate Succession. If you have a specific legal problem about which you are seeking advice, please consult with a North Dakota attorney of your choice. As North Dakota law allows the "severing" of mineral interest (often called "mineral rights") from "surface ownership," the tracing of this ownership can become complex. if production begins during the period of the lease. North Dakota Mineral Rights & Oil and Gas Royalties Discover Areas of Interest across North Dakota. In North Dakota, mineral rights are transferred in one of three ways: by deed (there are numerous kinds), probate or court action. the surface rights and 25% of the mineral rights will be. North Dakota Mineral Rights – Sharing Ownership of the Mineral Rights. In other words, the owner of the surface rights cannot stop the owner of the mineral rights from taking whatever action is reasonably necessary in order to recover any available minerals. A lease of mineral rights will transfer only those minerals specifically identified or named in the lease. Oil & Gas 101 – General information for mineral rights owners. 46: 2202: August 15, 2018 Bakken Shale - Oil & Gas Discussion archives. Thereafter, the trustee will be authorized to execute a mineral lease, which will allow the production company to develop the mineral resource – pursuant to Section 38-13.1 N.D.C.C. Obtaining a complete title examination of the mineral ownership records years later may be difficult, but necessary, in order to properly determine the identity of the current mineral owners. Sell Your Mineral Rights to 1280 Royalties, LLC. Surface and mineral ownership interests can be, and often are, divided among family members, usually as a result of inheritance rights arising after the death of one or more relatives. When the mineral rights are co-owned by several persons, difficulties can arise in getting all of such owners to execute a lease, including those situations where one or more of the owners: If the place of residence or whereabouts of any other co-owner are unknown, North Dakota law permits an owner of mineral or royalty rights to petition the court for an order declaring the creation of a trust, and the appointment of a trustee. Dakota Territory was settled sparsely until the late 19th century, when the railroads entered the region and vigorously marketed the land. Even when the words “all other minerals” or similar words of an all-inclusive nature are used with respect to any lease, such a phrase may NOT result in the lease of any minerals – except those which are specifically named in the lease. Information provided herein is only for general informational and educational purposes. Upon the death of a North Dakota decedent, the personal representative of his or her estate: Upon the subsequent death of any such beneficiaries, their probate estates may also have been settled without properly addressing the mineral rights. Topics of Interest – North Dakota Ancillary Probate, Topics of Interest – North Dakota Transfer on Death Deeds, Topics of Interest – North Dakota Affidavits of Heirship. If you are not a current client of Gary C. Dahle, Attorney at Law, please do not use the e-mail links or forms to communicate confidential information which you wish to be protected by the attorney-client privilege. “A mineral interest is deemed to be used when: A. The North Dakota Industrial Commission is responsible for overseeing mineral development in the state – so some government monitoring of such activities is provided at the state level. Typically, the owner of mineral rights wants to keep them in the hope eventually they can lease the rights to a company that will produce the minerals and the rights holder subsequently will receive royalty payments. http://www.legis.nd.gov/general-information/north-dakota-century-code. Phone: 763-780-8390 firstname.lastname@example.org D. The mineral interest on any tract is subject to a lease… This page introduces that statute and a case in which the North Dakota Supreme Court interpreted the statute. However, the reverse is also true – persons may believe that they own certain North Dakota mineral rights, but a review of the title records may indicate otherwise. Emmons County, ND Mineral Rights. Mineral rights buyers from all over the country will also know your property is for sale. The basic legal premise is that "if nothing is stated in the document, ownership of attached mineral rights transfer with the ownership of surface rights." Section 30.1-04-01 North Dakota Intestate Estate, North Dakota Intestate Succession – Historical, North Dakota Probate – Limited Legal Representation, North Dakota Subsequent Probate Administration, North Dakota Unsupervised Probate Closing, North Dakota Probate Settlement Agreements, Drilling Operations and Cessation of Production, North Dakota Deed Reservations – Mineral Interests, Life Estates, North Dakota Mineral Rights Purchase Offer, North Dakota Unlocatable Mineral Owner Trust. The transfer includes the oil, gas and other minerals of every kind and nature. Realizing that mineral rights are often severed from surface rights, North Dakota law specifies interpretations for language that property owners might use when wanting to achieve an exception to this basic legal premise. While such an acquisition could be accomplished by purchasing the mineral rights outright from the owner, usually the oil company: A mineral lease usually requires the oil company to pay rent or other compensation to the owner of the mineral rights in exchange for the right to: Such leases commonly grant these rights to the oil company for a limited period of time – perhaps 3 to 10 years – and also typically provide that: However, if no production activities have been commenced by the end of the initial lease term: In exchange for the continued production of minerals on the property, the owner of the mineral rights is typically paid a royalty, which is usually a percentage of the actual production of minerals, or oil and gas. may not have been aware of such mineral rights. If you own producing mineral rights, this means you get an oil and gas royalty check each month for your share of production. It has been estimated that North Dakota surface rights owners currently own only 25% of the North Dakota mineral rights – with the other 75% of the mineral rights owned by other persons. Such a deed grantor would be the holder of a life estate in the mineral rights (a “life tenant“) and the deed grantee would be the holder of the remainder interests. Edward C. Murphy, Assistant Director Geological Survey, State Geologist : North Dakota Industrial Commission. When your mineral and surface rights are at risk, we work hard to level the playing field. Gary C. Dahle, Attorney at Law, is licensed to practice law only in the State of North Dakota, and in the State of Minnesota, in the United States of America. Our list of cases covers a range of legal mineral rights and energy law matters, including: Oil and gas contracts; Lease review and negotiation unless gravel, clay and scoria are specifically identified as having been severed by either the conveyance or reservation. On a drilling rig or oilfield, the results of an accident can be devastating and even fatal. 2704 Mounds View Blvd. THIS IS NOT A LEASE. As discussed above, the surface owner may or may not own the mineral rights. However, the mere act of either providing information to Gary C. Dahle, Attorney at Law, or taking note of information provided on http://www.dahlelaw.com, or https://www.dahlelawnorthdakota.com – does not constitute legal advice, or establish an attorney/client relationship. Sell North Dakota Mineral Rights If you own mineral rights or royalty rights in an oil and gas producing region (such as in northwestern North Dakota), your mineral rights and royalties could be valuable and we would be interested in discussing a potential sale. If you have mineral rights in Western North Dakota, continue reading to learn your rights. This results in your getting thousands of buyers competing for your property. the income derived from leasing those rights. Mounds View, MN 55112, Phone: 763-780-8390 Fax: 763-780-1735 email@example.com. In addition, joint tenants who sign separate leases relating to their individual ownership interests may “sever” the joint tenancy, thereby converting it into a tenancy in common, which may or may not be the result which they intended. In North Dakota and other oil-producing states, it's common for a piece of property to have separate owners for the surface and for the underground mineral rights.   Lynn D. Helms, Director . North Dakota Mineral Owners by County. refuses to execute the lease for undeclared reasons. 38-18.1-03). North Dakota Mineral Deed. the owner of the mineral rights may thereafter be free to offer release the mineral rights to a different oil company to lease the mineral rights. Let us assist with mineral trust issues, setting up a revocable living trust, health care directive or powers of attorney to protect your loved ones. Gary C. Dahle has represented clients from Canada, Norway, and Alabama, California, Colorado, Florida, Illinois, Indiana, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Montana, New York, North Dakota, Ohio, Oklahoma, Oregon, Texas, Virginia, and Washington in the United States, with respect to North Dakota mineral rights and probate issues in various North Dakota Counties. there is an alternative method of mineral recovery available. North Dakota Mineral Rights McKenzie County, ND This is the McKenzie County, ND category. North Dakota Oil, Gas, & Mineral Law Attorneys Serving Clients from Offices in Minot, Grand Forks & Bottineau. The owner of mineral rights can also convey such rights to a third party, while reserving the right to receive the benefit from such mineral rights during the grantor’s lifetime. Appraisal for Mineral Rights. The first European to reach the area was the French-Canadian trader La Vérendrye, who led an exploration party to Mandanvillages in 1738. Bruce E. Hicks, Assistant Director Oil and Gas Division. Producing Mineral Rights Value in North Dakota. The North Dakota oil boom not only increased job growth, giving the state the lowest unemployment rate in the country, but it also increased capital for mineral rights owners. Gravel, clay and scoria are statutorily exempted from the definition of “minerals”, and: Scoria is a volcanic semi-porous rock, which is often used: North Dakota has significant quantities of scoria in certain regions, which can provide significant value to the owner thereof. It is always advisable to retain the services of a North Dakota attorney in order to assist the owner in determining the extent of any mineral rights. Upon the development of fracking, North Dakota secured it’s spot amongst the … Documents affecting real property transactions are to be recorded in the office of County Recorder of … In situations where the ownership of mineral rights is not well-established, it may be necessary for a person claiming mineral rights to commence a “quiet title” action in a North Dakota District Court, which will allow the court to review the available title evidence, and determine the owner(s) of the mineral rights. If the petition is approved by the court, nonsigning owners are guaranteed to receive their proportionate benefits from the lease. North Dakota Mineral Rights, Oil & Gas Royalty Buyers Drilling in North Dakota began in the 1950’s, and has become one of the largest producers with more than 1.3 billion barrels produced thus far. Buy Mineral Rights in Williams County North Dakota. North Dakota mineral rights law involves many complex legal issues. North Dakota has extensive shale resources that can provide significant income to property owners. Abandonment of Mineral Rights. Prior to European contact, Native Americans inhabited North Dakota for thousands of years. After any such severance and transfer, ownership of the surface rights and mineral rights: After a severance of the mineral rights from the surface rights, there would no longer be any ownership connection between: Surface and mineral ownership interests can be, and often are, divided among family members, usually as a result of inheritance rights arising after the death of one or more relatives. there is an existing surface use that would be unduly interfered with by one method of mineral recovery. Nevertheless, with respect to an oil and gas lease, all “associated” hydrocarbons produced in a liquid or gaseous form shall be deemed to be included in the lease. For more than 100 years, First International Bank & Trust (FIBT) has been based in Western North Dakota, home of the Bakken and Three Forks Formation, the second-largest producer of oil in the United States. the life tenant may petition the court for an order declaring a creation of a trust, and the appointment of a trustee. However, if you got a bad lease, or the market has gone down since you leased, you could see a value outside of that range. If you want to buy mineral rights in Williams County North Dakota, see the listing details below. Log in, Chapter 38 of North Dakota’s Century Code, North Dakota Recorders Information Network, Mineral Rights Basics - Great Plains Energy Corridor, Home Builders Association report reflects sharp increases in nearly all categories, 2013 Home & Garden Show welcomes professional organizer, chef to event, Home Builders Association to release 2012 year-end building permit report, Realty Funding Group Announces Ability to Quickly Fund Loans in the Bakken Region. A very simple rule of thumb for producing mineral rights is 4 to 6 years times your average monthly income. 8: 298: March 18, 2018 wellbore only interest in Mountrail, McKenzie and Divide Counties. Topics of Interest – North Dakota Informal Probate, Gary C. Dahle – Attorney at Law Mineral rights buyers in North Dakota will get an alert that your property is on the market. In 2012, the North Dakota Supreme Court held, in Irish Oil and Gas, Inc., vs. Gerald C. Riemer, that the failure of a lessee to pay the agreed upon North Dakota Mineral Rights Bonus Payments would not as a matter of law allow the lessor to cancel the lease by reason of a failure of consideration: Licensed to practice in North Dakota: DahleLawNorthDakota.com begin developing or producing any oil, gas, or other minerals upon discovery. Therefore, the rights to scoria should be preserved whenever possible. G. A proper statement of claim is recorded… (N.D.C.C. It would be helpful if surface owners would keep track of the percentage of mineral rights remaining on the various tracts of land they own – which would at least provide a starting point for a Title Company or examining attorney to properly determine the owners of the mineral rights. If mineral rights will be included as assets of the trust, it may be best if the trust document specifically identified how the trustee should manage: If the owner of mineral rights happens to be either a minor, or an incapacitated person, a court may appoint a guardian or conservator to act on behalf of the minor or incapacitated person. It is not uncommon for individuals to be unaware that they own North Dakota severed mineral rights. Written for oil and gas mineral rights and royalty owners in ND. We purchase mineral rights throughout the North Dakota Bakken Shale Formation, and we aim to give every mineral owner a fair offer for their assets. Gary C. Dahle, Attorney at Law, provides the http://www.dahlelaw.com and https://www.dahlelawnorthdakota.com web sites and its contents on an “as is” basis, and makes no representations or warranties concerning site content or function, including but not limited to any warranty of accuracy, completeness, or currency. A mineral rights attorney should be consulted in order to provide a title opinion as to ownership of the mineral rights. The result may be remote family relatives unknowingly sharing ownership of the mineral rights. The general rule applicable to the conveyance of ownership of mineral rights is reversed with respect to any lease of mineral rights. If you are not a current client of Gary C. Dahle, Attorney at Law, North Dakota Probate Attorney – Probate Lawyer, Newly Discovered North Dakota Probate Property, North Dakota Affidavit of Heirship – Proof of Death and Heirship, North Dakota Foreign Personal Representative, N.D.C.C. the right to such materials will remain with the owner of the surface rights. North Dakota mineral rights law involves many complex legal issues. An overview of the mineral resources of North Dakota, with photographs, maps, and references. It is not uncommon for: In North Dakota – subject to certain limitations – the right to exploit the underground minerals has priority over the rights of the surface owner to the use of the surface. The grantee’s remainder interests in the mineral rights will develop into complete ownership of such interests upon the death of the life tenant. Call 1-844-769-2548 … However, if there is no alternative means of recovering the minerals, the mineral owner may pursue the only means possible to find and develop the minerals, despite the adverse impact it may have on existing surface activities. If the required action is not taken, North Dakota statutes allow for the forfeiture of a person’s ownership of severed mineral rights, even if the owner was not aware that he or she even had any such mineral rights: “Any mineral interest …, if unused for a period of twenty years immediately preceding the first publication of the notice required by section 38-18.1-06, [is] deemed to be abandoned, unless a statement of claim is recorded in accordance with section 38-18.1-04. To have mineral rights means you own the minerals beneath the surface of the land. Clients are accepted by Gary C. Dahle, Attorney at Law, only after preliminary personal communications with him, and subject to mutual agreement on terms of representation. would be transferable to buyers, donees, or heirs as separate interests. share in any bonus payments which may be available. During the lifetime of the life tenant, he or she would be entitled to receive all of the cash rent and royalty payments which may be generated during his or her life with respect to such interest. What does it mean, having mineral rights? For North Dakota families or individuals with ties to the state, estate planning and probate has become ever more important with the booming local economy. The Internet is not a secure environment and confidential information sent by e-mail may be at risk. Cavalier County, ND Mineral Rights. Gary C. Dahle, Attorney at Law, is available to service probate and mineral rights issues with respect to real property located in Divide County, Burke County, Williams County, Mountrail County, McKenzie County, Ward County, McLean County, Mercer County, Oliver County, Morton County, Grant County, Sioux County, Dunn County, Billings County, Golden Valley County, Slope County, Hettinger County, Bowman County, Adams County, Renville County, Bottineau County, and McHenry County, North Dakota. Licensed to practice in Minnesota: DahleLaw.com. Nevertheless, according to the North Dakota Supreme Court: “the surface owner is entitled to not have the surface negligently used and to have existing uses reasonably accommodated“. However, a life tenant is not allowed to take any action that would permanently diminish the value of the land that will eventually be received by the remainder persons. 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