Northern Energy Corporation is a family owned, independent oil and gas company headquartered in Bismarck, North Dakota.
Northern Energy Corporation was incorporated in 1980 by Clark Crawford Senior and current president, Clark D. Crawford, and is engaged in the acquisition of minerals and mineral leases in the Williston Basin across North Dakota and Montana.
Selling can allow a smooth transfer of assets to heirs and remove some of the complications that can arise from transferring mineral ownership. It can also prevent the mineral rights from losing value by eventually fractioning into very small interests.
The lump sum payment received from selling mineral rights provides flexibility for the mineral owner in managing their finances. The money can now be used for debt repayment, investment opportunities, college funds, vacations, or any other needs.
Selling mineral rights provides an immediate lump sum of cash to the mineral owner that guarantees you make money. This certainty contrasts with the volatile income associated with royalty payments, which tends to decrease over time.
Participating in the drilling of a well or wells is very expensive. By leasing the mineral rights, the mineral owner (lessor) transfers the risk to the oil company (lessee). The company pays to drill, and if the drilling is unsuccessful or costly, the lessor experiences no loss.
When you lease your mineral rights, you receive an upfront bonus based on the number of acres you own. If a well is drilled, you also receive a periodical royalty payment based on how much it produces.
If a company is looking to drill for oil, but does not own the mineral rights, they have to sign enough leases to cover where they want to drill. In leasing your mineral rights, you can allow for oil to be drilled and make money from it.
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