There is NO standard lease.  A lease is negotiated on terms that both parties agree to.  

(See article on Maximizing your Minerals below.)

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LEASES on Fort Berthold as of 1/1/2010:  (Source, Fort Berthold BIA)

*Updated: 05/20/2010

Total number of Leases approved:  2824 (2823 previous update)

Number of Leases Pending:  2 (1 previous update)

Total number of leased acres:  503, 074.72 (501,702.22 previous update)

Total number of acres available to lease:  29,889.10 (31,261.60 previous update)

Total payouts:  $180, 579, 824.14 ($179,675,404.01 previous update) 

*  Leases terms on the FBIR have ranged from 3 years, 5 years, 7 years and 10 years with royalty rates ranging from 18% to 21%.

*Leasing precedents have been set in the USA to be able to lease by formation.


*  If you are a land and mineral owner and would like to discuss or need help negotiating a lease, call Tex G. Hall, President, or any of the Board Directors at the FB Allottee Land & Mineral Owners Association at 
701-759-3800.


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ARTICLE:  MAXIMIZING YOUR MINERALS [Source:  mineralweb.com]
Oil & Gas Mineral Services

Mineral rights are a somewhat unique asset, deserving proper attention and management in order to maximize their value.  Because of this, mineral rights require a measure of diligence and maintenance on the part of the owner.

10 Ways to Maximize Your Minerals:

1.  Know what you own.

While it may seem simplistic, this is an obvious issue that many overlook.  Mineral title can often become complex and convoluted over multiple generations.  Knowing your mineral ownership and having the documentation to prove it is your primary defense against potential problems related to getting paid properly for any mineral production that may occur.

2.  Stay on top of taxes.

A common mistake mineral rights owners make is failing to account for taxes.  In many states, producing minerals are taxed at the county level with an ad valorem tax.  Be sure to know your tax liability and keep current on your obligations.   

3.  Stay informed of current activity in your area.

Mineral Owners will benefit from maintaining knowledge of drilling operations.  Information is key when negotiating lease terms.  The websites of the various state oil and gas regulatory agencies often provide data on drilling permits, along with other infomative data.  Look for landowner groups that are forming on the internet.  *Join the Fort Berthold Allottee Land and Mineral Owners Association and be involved with the production of your resources now and for years to come.

4.  Understand Oil & Gas Production Process.

Too many owners lack a basic understanding of what it takes to develop oil and gas.  Take time to become familiar with the production and marketing process.   Oil and Gas Production in Nontechnical Language provides a good overview of the process.  Knowing some of the lingo and understanding the basics of the industry can go a long way in negotiating a lease.

5.  Negotiate a Quality Lease.

If you're fortunate to be approached about leasing your minerals, it only makes sense to negotiate the best deal possible.  Often mineral owners focus too much on the lease bonus.  The key to maximizing your mineral assets is focusing on the terms of the oil and gas lease, the royalty percentages, and the lease bonus.  Remember, there are no "standard" leases.  

6.  Use the internet as a resource.  

The internet is full of useful sites specifically designed for oil and gas mineral owners.  You can find out individual well production by visiting [ndoil.org]. (changed to suit FBIR.)

7.  Keep past records of statement.

Once you recieve royalty checks from production, its a good idea to save these records.  This will help you when filing taxes, recording past production, and will even help you value the property should you desire to sell your mineral rights.  

8.  Plan for the next generation.

Preserve the value of your Mineral Rights by minimizing further fragmentation of interests to multiple heirs.  Seek to pass along whole mineral tracts instead of sub-dividing them further.  One alternative is to pass the mineral rights on to a child who is financially savvy or has a background in realestate, while passing other children different assets.

9.  Be findable.

More often than not, oil companies seeking mineral owners will know who to contact through their search of the county clerk property records.  Make sure you are reasonably locatable.  Are their differing variations of your name in the public record?  Has there been  a divorce or marriage that affects your name?  Are you known everywhere as Bill, but in the record as William?  Have your married several times?

10.  Visit MineralWeb.com for the latest information on Mineral Rights.