Mineral Rights in North Dakota: A Local Owner’s Guide to Knowing What They’re Really Worth

Mineral Rights in North Dakota: A Local Owner’s Guide to Knowing What They’re Really Worth

If you own mineral rights in North Dakota—especially in resource-rich counties like McKenzie, Mountrail, or Williams—you may be sitting on a valuable asset. But for many mineral owners, especially those who inherited their interest or live out of state, one of the most common and important questions is: What are my mineral rights really worth?

Determining mineral value in North Dakota’s Bakken region isn’t always simple. The value of your mineral rights depends on a mix of geological, financial, legal, and market-specific factors. This article outlines the most important variables to help you understand how your asset is valued and what your next steps might be if you’re considering selling.

Location Is the Foundation of Value

In mineral ownership, location is everything. Even within the same county, two parcels of mineral rights can have dramatically different values depending on where they are positioned within the basin and how close they are to current drilling activity.

• McKenzie County is one of the most active oil-producing counties in the country, with ongoing development from major operators. This region continues to see strong interest and infrastructure investment, which typically boosts mineral valuations.

• Mountrail County was one of the first areas in the Bakken to see large-scale development. Mineral rights here benefit from proximity to early infrastructure and historically strong production data.

• Williams County continues to perform well with consistent drilling activity. Its central location within the Williston Basin makes it a strategic asset for operators, especially where horizontal development continues.

If your mineral rights are located near existing or planned wells, that proximity typically increases their value, even if your parcel is not currently producing.

Producing vs. Non-Producing Mineral Rights

One of the first questions to ask when assessing your minerals is whether they are producing. Producing minerals are those generating monthly royalty payments. Their value is based not just on location but also on actual production history, current cash flow, and future projected income from the wells.

Non-producing minerals—those not currently under lease or not generating income—may still hold considerable value, especially if they’re located near active drilling zones or in areas with proven geological formations. In these cases, the potential for future development often becomes the key value driver.

Operator Activity and Nearby Development

The presence of active operators in your area has a direct impact on your mineral rights’ value. Companies like Continental Resources, Hess, Marathon Oil, and others continue to operate in various parts of North Dakota, particularly within the Bakken and Three Forks formations.

If new permits have been filed, rigs are operating nearby, or wells have been completed recently in your vicinity, this is often a sign of increased interest in the area—and may enhance the value of your minerals. Buyers pay close attention to this activity, and mineral owners should too.

Lease Terms and Royalty Rates

If your mineral rights are currently under lease, the lease terms also factor into valuation. The royalty rate—the percentage of production revenue you are entitled to—can range from 12.5% to 25%, and a higher royalty rate generally leads to a higher valuation.

Other important considerations include:

• The number of net mineral acres you own

• Whether you own both surface and mineral rights

• Whether your minerals are held individually, in a family trust, or within a partnership

• Whether your acreage is part of a spacing unit or pooled unit

Each of these details plays a role in the appraisal process and affects what a buyer may be willing to offer.

Production Decline and Well Performance

Producing wells naturally decline over time. The rate at which a well’s output decreases—known as the decline curve—can significantly affect the value of your minerals. Newer wells with high initial production tend to attract more favorable valuations than older wells with lower monthly volumes.

Prospective buyers will often review several months (or years) of production data from the North Dakota Industrial Commission or other public records to determine future income potential.

Clear Title and Ownership Documentation

Having a clean and well-documented title is crucial when determining value and completing a transaction. If mineral ownership has passed through multiple generations or if ownership is shared among several parties, the title may require legal clarification or curative work.

That said, it’s common for mineral owners to have questions or uncertainty about title. At 1280 Royalties, we often assist owners in clarifying documentation as part of our evaluation process, with no obligation to sell.

So, What Are Your Minerals Really Worth?

There is no universal answer. The value of your mineral rights is unique to your situation and can change over time. It is based on a combination of location, production status, lease terms, local operator activity, and ownership clarity.

In today’s market, where oil prices and drilling activity continue to evolve, having an accurate and up-to-date understanding of your mineral rights is more important than ever—especially if you’re considering selling.

How 1280 Royalties Can Help

1280 Royalties works closely with mineral owners throughout North Dakota, particularly in McKenzie, Mountrail, and Williams Counties. Whether you live on the land, manage a family trust, or simply inherited your rights and don’t know where to begin, we’re here to help you understand your options.

We specialize in clear, one-on-one communication, straightforward evaluations, and respectful offers based on real data. Our goal is to help you make an informed decision that supports your personal or financial goals—no pressure, just clarity.

If you’re ready to explore what your mineral rights may be worth, reach out to our team for a free, no-obligation valuation.

Let us help you turn a complex asset into a clearer path forward.

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Disclaimer: The content on this website is provided for general informational purposes only and should not be considered legal advice. While we strive to ensure the information is accurate and up-to-date, laws and regulations can change, and circumstances vary. For advice tailored to your specific situation, we encourage you to consult a qualified legal professional.