North Dakota Mineral Rights Management
North Dakota has emerged as one of the most significant oil-producing states in the nation, driven by technological advances in horizontal drilling and hydraulic fracturing that unlocked the vast reserves of the Bakken Shale. The state's position in the Williston Basin places mineral owners at the center of one of North America's most prolific oil plays. Valor provides comprehensive mineral management services specifically tailored to the unique challenges and opportunities facing North Dakota mineral owners, from navigating extreme weather production impacts to ensuring compliance with North Dakota Industrial Commission regulations.
The transformation of North Dakota's oil industry over the past two decades has created extraordinary opportunities for mineral owners. However, managing mineral interests in the Bakken requires specialized knowledge of the state's regulatory framework, an understanding of horizontal drilling economics, and vigilant oversight of operator activities. Valor's experienced team helps mineral owners maximize their returns while protecting their long-term interests in this dynamic market.
The Bakken Shale is one of the largest oil discoveries in United States history, with estimated recoverable reserves of billions of barrels of oil. This tight oil formation requires horizontal drilling and hydraulic fracturing to produce economically, with modern wells featuring lateral lengths exceeding two miles. Mineral owners in Bakken counties benefit from some of the highest per-well production rates in the country, though the formation's geology demands careful monitoring of decline curves and infill drilling programs.
Directly beneath the Bakken lies the Three Forks formation, another significant oil-bearing zone in the Williston Basin. Many operators now target both formations with their drilling programs, and mineral owners may hold interests in wells that produce from the Bakken, Three Forks, or both. Understanding how production from multiple formations affects your royalty interests requires careful lease review and production monitoring.
The majority of North Dakota's oil production comes from four counties in the western part of the state:
The North Dakota Industrial Commission (NDIC), through its Department of Mineral Resources, regulates all oil and gas operations in the state. The NDIC's comprehensive regulatory framework covers every aspect of drilling and production. Valor helps mineral owners navigate NDIC requirements including:
North Dakota Century Code Section 38-18.1 establishes the state's dormant mineral lapse statute, which can result in mineral interests reverting to surface owners if left unused for 20 years. This statute creates significant risk for mineral owners who do not actively manage their interests. To preserve mineral rights under North Dakota law, owners must take affirmative action including:
Valor helps North Dakota mineral owners understand these requirements and takes proactive steps to ensure mineral interests remain protected from lapse claims. Our team monitors recording deadlines and assists with the preparation of preservation documents.
North Dakota's harsh winter climate creates unique challenges for oil and gas operations that can directly impact mineral owner revenues. Temperatures dropping below minus 30 degrees Fahrenheit are common during winter months, causing production slowdowns, equipment failures, and transportation disruptions. Valor monitors weather-related production impacts and ensures operators properly account for weather downtime in their production reporting.
Additionally, the rapid infrastructure development that accompanied the Bakken boom created its own set of challenges. Pipeline capacity constraints, flaring restrictions, and processing plant limitations have all affected the prices mineral owners receive for their production. Our team analyzes the deductions taken by operators and ensures they comply with lease terms.
Comprehensive tracking and verification of royalty payments from Bakken and Three Forks production, including analysis of post-production deductions.
Expert review of North Dakota oil and gas leases, with particular attention to horizontal drilling provisions and Pugh clauses.
Monitoring operator compliance with North Dakota regulations and utilizing NDIC databases to verify production reporting.
Proactive monitoring of preservation requirements and assistance with recording statements of claim to prevent mineral lapse.
Detailed tracking of well performance, decline curves, and infill drilling opportunities in your spacing units.
Comprehensive ownership verification through North Dakota county records and NDIC mineral title records.
The Bakken Shale is a massive oil-bearing formation in the Williston Basin that spans North Dakota, Montana, and into Canada. It is one of the largest oil discoveries in U.S. history and has made North Dakota the second-largest oil-producing state. Mineral owners with interests in Bakken counties like McKenzie, Williams, and Mountrail often receive substantial royalty income from horizontal drilling operations targeting this formation.
The North Dakota Industrial Commission (NDIC) oversees oil and gas operations through its Department of Mineral Resources. The NDIC handles well permitting, spacing unit determinations, production reporting, and environmental compliance. Mineral owners interact with the NDIC for pooling orders, royalty payment disputes, and accessing production data through the state's public database.
North Dakota Century Code Section 38-18.1 contains the state's dormant mineral statute, which can terminate unused mineral interests after 20 years of non-use. Mineral owners must take action to preserve their rights by recording a statement of claim, receiving royalty payments, or engaging in other qualifying activities. Valor helps North Dakota mineral owners understand and comply with these requirements to protect their mineral interests from lapsing to surface owners.
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