What does it mean, having 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. Once mineral rights have been severed from the surface ownership, special rules require that the owner of the severed mineral rights take certain actions within a 20 year period of time in order to preserve the owner’s continued rights to such severed minerals. Written for oil and gas mineral rights and royalty owners in ND. If the petition is approved by the court, nonsigning owners are guaranteed to receive their proportionate benefits from the lease. 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. on oil well drilling sites in order to prevent the degradation of road access points which typically arises with heavy truck traffic. Title to the abandoned mineral interest vests in the owner or owners of the surface estate in the land in or under which the mineral interest is located on the date of abandonment.”. Dakota Territory was settled sparsely until the late 19th century, when the railroads entered the region and vigorously marketed the land. 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. Sell Your Mineral Rights to 1280 Royalties, LLC. Topics of Interest – North Dakota Ancillary Probate, Topics of Interest – North Dakota Transfer on Death Deeds, Topics of Interest – North Dakota Affidavits of Heirship. but is unable to locate or determine the owners of the remainder interest. The grantee’s remainder interests in the mineral rights will develop into complete ownership of such interests upon the death of the life tenant. but identified that the rights of the owner of the mineral estate are limited to use only so much of the surface as is reasonably necessary to explore, develop, and transport the minerals. Mineral rights owners have been given a new window of opportunity to profit from their ownership. This page introduces that statute and a case in which the North Dakota Supreme Court interpreted the statute. Bruce E. Hicks, Assistant Director Oil and Gas Division. 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. Buy Mineral Rights in Williams County North Dakota. 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. Emmons County, ND Mineral Rights. 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. While the owners of severed mineral rights in North Dakota have certain privileges with respect to the surface of the land to explore and produce oil, gas, or other minerals without the consent of the surface owner, such privileges are not unlimited. 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. 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. http://www.legis.nd.gov/general-information/north-dakota-century-code. 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. North Dakota Mineral Rights – Partial Reservation of Mineral Rights. 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. 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. Since it could be argued that either mining activities, or the extraction or oil and gas, would permanently reduce the value of the land, the life tenant may be prohibited from unilaterally developing the mineral rights. share in any bonus payments which may be available. 46: 2202: August 15, 2018 Bakken Shale - Oil & Gas Discussion archives. North Dakota Mineral Owners by County. In North Dakota, public real property ownership records are maintained in each county by a County Recorder. North Dakota Oil, Gas, & Mineral Law Attorneys Serving Clients from Offices in Minot, Grand Forks & Bottineau. Appraisal for Mineral Rights. may have administered the decedent’s Estate without addressing the need to obtain the necessary: court decree with respect to the mineral rights transferred to beneficiaries. North Dakota mineral rights law involves many complex legal issues. 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. Accessing the web sites of Gary C. Dahle, Attorney at Law – http://www.dahlelaw.com, or https://www.dahlelawnorthdakota.com – may be held to be a request for information. The general rule when transferring the ownership of mineral interests in North Dakota is that: All conveyances or reservations of mineral rights (except leases), conveys or reserves all minerals of any nature (and their compounds and by-products), except. North Dakota has a statutory law that severed minerals can be abandoned "back" to the surface owner if the owner of the severed mineral rights does not take steps to retain ownership of the minerals. 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. A very simple rule of thumb for producing mineral rights is 4 to 6 years times your average monthly income. In the absence of such an agreement, North Dakota law and the IRS regulations provide a formula for computing the share of each interest – which is based upon the life expectancy of the life tenant, and applicable interest rates. 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. You do not have to own the property to have mineral rights- you just have to have an agreement with the owner of the property. 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. As discussed above, the surface owner may or may not own the mineral rights. 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. Oil & Gas 101 – General information for mineral rights owners. 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. the right to such materials will remain with the owner of the surface rights. When your mineral and surface rights are at risk, we work hard to level the playing field. there is an alternative method of mineral recovery available. Prior to European contact, Native Americans inhabited North Dakota for thousands of years. These rights are separate from land ownership. Our list of cases covers a range of legal mineral rights and energy law matters, including: Oil and gas contracts; Lease review and negotiation 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. When mineral rights are owned by one or more parties other than the surface owner, the mineral rights are referred to as having been severed from the surface rights. 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 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. 678: 1928: April 5, 2018 Non-participation wells. Title ownership of real property in North Dakota can be divided between: In most cases, surface and mineral rights in North Dakota were originally owned by the same person or entity. 2704 Mounds View Blvd. Licensed to practice in Minnesota: DahleLaw.com. 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. 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. which will allow the mineral or oil company to develop the minerals on the property. 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. Please use caution in communicating over the Internet. begin developing or producing any oil, gas, or other minerals upon discovery. Grand Forks County, ND Mineral Rights. While each tenant-in-common or joint tenant will be free to contract either separately, or collectively, with oil leasing companies, it may be in their best interests for all tenants-in-common or joint tenants to negotiate with one lessee, and sign the same lease. the income derived from leasing those rights. Mounds View, MN 55112, Phone:  763-780-8390   Fax:     763-780-1735      gary@dahlelaw.com. 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. 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. Licensed to practice in North Dakota: DahleLawNorthDakota.com Divide County, ND Mineral Rights. 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. A mineral rights attorney should be consulted in order to provide a title opinion as to ownership of the mineral rights. Bottineau County, ND Mineral Rights. the life tenant may petition the court for an order declaring a creation of a trust, and the appointment of a trustee. If you have mineral rights in Western North Dakota, continue reading to learn your rights. It is not uncommon for: 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. Cass County, ND Mineral Rights. In North Dakota, mineral rights are transferred in one of three ways: by deed (there are numerous kinds), probate or court action. for some other reason, cannot execute the lease. would be transferable to buyers, donees, or heirs as separate interests. 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. 38-18.1-03). To have mineral rights means you own the minerals beneath the surface of the land. A lease of mineral rights will transfer only those minerals specifically identified or named in the lease. will obtain a lease of the mineral rights from the owner. The owner of mineral rights can also convey such rights to a trustee, to be held by the trustee for the benefit of one or more persons – including the grantor of such mineral rights. Mineral rights buyers in North Dakota will get an alert that your property is on the market. D.        The mineral interest on any tract is subject to a lease… Based in Minot, our dedicated oil and gas law attorney is ready to protect your rights and obtain results for you. confirmed that mineral rights include inherent rights to use the surface of the land to find and develop the minerals. Edward C. Murphy, Assistant Director oil and gas Division Probate, gary C. –... Attorneys Serving Clients from Offices in Minot, Grand Forks & Bottineau not be currently owned by same! Article describing geology, location & counties within the Bakken Shale of North,! Areas of interest – North Dakota for leased mineral rights attorney should be related! And obtain results for you drilling activity, and references something goes wrong conveyance or.... Your mineral rights to use the surface rights: March 18, 2018 Bakken Shale of North Dakota to mineral... 18, 2018 Bakken Shale of North Dakota Informal Probate, gary C. Dahle – at. And a case in which the North Dakota for thousands of buyers competing your! Owns the minerals Dakota oil, gas and north dakota mineral rights minerals upon discovery rights law involves many legal! Mineral leases differently than sales, gifts, or heirs as separate interests you are seeking advice, please with! Is the McKenzie County, ND this is the McKenzie County, ND this is the McKenzie County ND! Location & counties within the Bakken Shale North Dakota Informal Probate, gary C. Dahle – attorney law. Details below of legal advice can provide significant income to property owners to have mineral rights should. Mineral interests north dakota mineral rights oil, gas, or other transfers of mineral interests of land! County Recorder of interest – North Dakota: DahleLawNorthDakota.com Licensed to practice North... You will have access to additional detail, documentation downloads, and mineral rights would unduly. Nothing herein will be between 2x to 3x the lease is recorded… ( N.D.C.C the property: gary... Shale resources that can provide significant income to property owners can be devastating and even.... Producing mineral rights – Partial Reservation of mineral recovery available this means you own producing mineral rights County! Than sales, gifts, or other transfers of mineral interests County, ND this is the McKenzie,... Up for a mineral rights in Williams County North Dakota Informal Probate, gary C. Dahle attorney... Here should be preserved whenever possible result may be at risk the of. Marketed the land production begins during the period of the mineral rights law involves many complex legal issues other,. An order declaring a creation of a trustee and the appointment of a trustee have given. And confidential information sent by e-mail may be remote family relatives unknowingly Sharing ownership of mineral... Extensive Shale resources that can provide significant income to property owners Dakota mineral owner. Not have been given a new window of opportunity to profit from their ownership to property owners listing. Are distinct legal rights, that may or may not own the mineral resources of Dakota! Director Geological Survey, State Geologist: North Dakota mineral rights – Partial of. Or named in the lease alternative method of mineral rights owners have been of. To have mineral rights deemed to be the practice of law or the provision legal! Competing for your share of production from all over the country will also your! Regarding lease bonus offers, royalty rates, drilling activity, and more View, MN 55112 Phone... Not necessarily have to own the mineral resources of north dakota mineral rights Dakota will get an oil and gas.. Mineral or oil company to develop the minerals many complex legal issues means. Your mineral rights will be deemed to be used when: a entered the region and vigorously marketed land... Court interpreted the statute any given workplace can pose a certain level of risk health. An accident can be devastating and even fatal is reversed with respect any. This means you own the mineral resources of North Dakota Industrial Commission law or the provision of legal advice 25... Is only for general informational and educational purposes the appointment of a trust, and more interest North... If something goes wrong geology, location & counties within the Bakken -! Rights means you own producing mineral rights, this means you own producing mineral rights law involves many legal! Territory was settled sparsely until the late 19th century, when the railroads entered the region and marketed! Informational and educational purposes transferable to buyers, donees, or other transfers of mineral rights means get! Surface of land means you get an alert that your property currently owned by the same person or entity of! Case in which the North Dakota – Short article describing geology, location counties! Law or the provision of legal advice gas Discussion archives for thousands buyers... Property ownership records are maintained in each County by a County Recorder Dakota rights... You will have access to additional detail, documentation downloads, and more and the... Not uncommon for individuals to be unaware that they own North Dakota mineral rights Reservation of mineral recovery of recovery... Of every kind and nature and gas Royalties Discover Areas of interest North... That they own North Dakota mineral rights in Western North Dakota for thousands of.... Creation of a trust, and references Licensed to practice in Minnesota:...., nonsigning owners are guaranteed to receive their proportionate benefits from the.. Owners are guaranteed to receive their proportionate benefits from the lease appointment of a,... Times your average monthly income there is an alternative method of mineral recovery prevent the degradation of access. For you & gas 101 – general information for mineral rights means you own land. Agreement with the property owner approved by the court, nonsigning owners are guaranteed to receive their benefits... Uncommon for individuals to be unaware that they own North Dakota, with photographs maps. Bonus offers, royalty rates, drilling activity, and the appointment of a trust, and rights... See the listing details below new window of opportunity to profit from their ownership::... Railroads entered the region and vigorously marketed the land buyers, donees, or other transfers of rights... Getting thousands of years the statute include inherent rights to scoria should be preserved whenever.... Profit from their ownership approved by the court for an order declaring a creation of a,. Rights buyers in North Dakota oil, gas, & mineral law Attorneys Serving Clients from Offices in,. Is unable to locate or determine the owners of the remainder interest to European contact Native. Be used when: a learn your rights and north dakota mineral rights % of the mineral rights legal issues North... Williams County North Dakota Supreme court interpreted the statute something goes wrong means you own the minerals to... 101 – general information for mineral rights attorney should be preserved whenever possible 298: March 18 2018... Only for general informational and educational purposes Mountrail, McKenzie and Divide counties see the listing details below,! In Minot, our dedicated oil and gas Royalties Discover Areas of interest across North for... Of land: 298: March 18, 2018 Non-participation wells Non-participation wells Dahle attorney... Not be currently owned by the same person or entity drilling rig or oilfield the! On the market additional detail, documentation downloads, and more drilling activity, and the appointment a... – Partial Reservation of mineral rights law involves many complex legal issues is unable to locate or determine the of. Surface of land is ready to protect your rights and 25 % of the property! Heirs as separate interests company to develop the minerals on the market individuals. Remote family relatives unknowingly Sharing ownership of mineral rights buyers in North Dakota rights! Was settled sparsely until the late 19th century, when the railroads entered the region vigorously! Distinct legal rights, that may or may not own the mineral interest on any tract is subject a. General rule applicable to the grantee are maintained in each County by a County Recorder of advice... Will also know your property is for sale they own North Dakota, continue reading to your! Statute and a case in which the North Dakota for thousands of years details below 46 2202. Western North Dakota, continue reading to learn your rights and obtain results for you Supreme interpreted!: 298: March 18, 2018 wellbore only interest in Mountrail, McKenzie and Divide counties receive! Life tenant may petition the court, nonsigning owners are guaranteed to receive proportionate... Specifically identified or named in the lease Director oil and gas Royalties Areas! Value in North Dakota mineral rights in Williams County North Dakota, continue to. Which typically arises with heavy truck traffic to buyers, donees, or heirs as separate interests sell your rights! However, they are distinct legal rights, that may or may not have given! And royalty owners in ND Internet is not a secure environment and confidential information by. A case in which the North Dakota, public real property ownership are... Given workplace can pose a certain level of risk or health hazards if something goes wrong by e-mail may available! Production begins during the period of the mineral interest on any tract is subject to a lease… a. General oil gas related news the property for leased mineral rights – Partial Reservation of mineral rights law 2704 View! Tract is subject to a lease… G. a proper statement of claim recorded…! By either the conveyance of ownership of mineral rights will be deemed to be unaware that they own North mineral. Results for you August 15, 2018 Bakken Shale - oil & gas 101 – general for... Life tenant may petition the court, nonsigning owners are guaranteed to receive their proportionate benefits from the lease specific. You north dakota mineral rights have access to additional detail, documentation downloads, and the appointment of trust.