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Old 03-03-2013, 04:11 PM   #1909
MTrider16
Ridin' in MT
 
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Joined: Oct 2006
Location: Eastern Montana
Oddometer: 1,479
I'll have to look up the lease stuff. Sounds about normal. A company buys the lease, then gets all the permits and proves the viability of punching the holes and finally sells to the company that actually drills and produces the oil. The lease may go through several hands before it is finally produced. If its in the right area, it will usually go up in value. The owner of the minerals, usually only gets a small portion of the lease, they normally get most of their money off the royalty payments, a percentage of the oil produced. However if a BIA or tribe official was sleeping at their post, they might have gotten much less for the lease and the royalties than other people. To be fair, when the first leases are negotiated, its hard to put a value on the lease.

I'm not too sympathetic, its well known that there are outrageous "dignity payments" when companies work on tribe lands. Of course the bad thing about all this corruption and graft is the fact that the average joe is left out, creating some bad feelings within the tribe.

Anyway, let me know if you plan to hang out in this area or not. I already have two weekends in July that are booked.

David
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