A 2026 guide for Montana mineral owners — Montana Bakken in Richland, Roosevelt, Sheridan, and Daniels counties, the Elm Coulee Field legacy, Montana's position on the Williston Basin western margin vs. North Dakota core, MBOGC forced pooling, and Montana's graduated income tax on mineral sales.
TL;DR Montana Bakken mineral rights sit on the western margin of the Williston Basin, which extends from North Dakota into eastern Montana. Richland County — anchored by the historic Elm Coulee Field (one of the largest Bakken discoveries in the United States) — is the core Montana Bakken county, with ConocoPhillips, XTO Energy, and Chord Energy as primary operators. Montana Bakken commands a 20–35% discount to North Dakota core four county pricing, reflecting the basin-margin position. The MBOGC (Montana Board of Oil and Gas Conservation) issues forced pooling orders similar to North Dakota's NDIC spacing unit orders. Montana imposes a graduated state income tax with a top rate of 6.75%.
Montana's Bakken production is part of the same Williston Basin that produces in North Dakota, but Montana sits on the basin's western margin rather than its structural core. That distinction matters for mineral valuation: the Montana Bakken has genuine horizontal production and an active buyer market, but it trades at a discount to ND's McKenzie, Mountrail, Williams, and Dunn counties, where well economics are highest.
Richland County, Montana — home to the Elm Coulee Field — tells the Montana Bakken story well. Elm Coulee was one of the largest Bakken discoveries in the United States when it was delineated in the early 2000s, with Headington Oil Company (later acquired by ConocoPhillips) proving horizontal Bakken technology years before the ND boom. Today Richland County remains the most active Montana Bakken county, with ConocoPhillips, XTO (ExxonMobil), and Chord Energy as leading operators.
This guide covers Montana's Bakken counties and their relative position in the Williston Basin, how MBOGC pooling works, what Montana Bakken mineral rights are worth, the sale process, Montana's severance tax and income tax rules for mineral sellers, and answers to the most common questions from Montana mineral owners.
The Montana Bakken occupies the far eastern tier of the state along the North Dakota border. The Williston Basin's structural center sits in ND's McKenzie County; the basin thins as it extends westward into Montana, which explains the basin-margin dynamics that affect Montana well economics and mineral valuations.
Elm Coulee Field: The defining Montana Bakken discovery. ConocoPhillips proved the Bakken horizontal play here in the early 2000s, years before the ND boom. The field remains one of the most productive accumulations in the Montana Bakken.
Sidney, MT: Richland County seat; the commercial hub for Montana Bakken services and operations. ConocoPhillips, XTO Energy, and Chord Energy all maintain active positions in Richland County.
Formations: Bakken (Middle Bakken member, Upper and Lower shale), Three Forks below the Bakken on the same mineral interest.
Roosevelt County: Wolf Point is the county seat; active Bakken and Ratcliffe oil zone production; Chord Energy and smaller operators work this area.
Sheridan County: Plentywood is the county seat; northern margin of MT Bakken; some horizontal development but lighter activity than Richland.
Daniels and McCone counties: Basin-margin positions; conventional and some Bakken activity; lower overall development density compared to Richland.
Valley County: Glasgow area; some historic production; limited Bakken horizontal activity.
The Montana Board of Oil and Gas Conservation (MBOGC), based in Billings, regulates oil and gas operations statewide. For eastern Montana Bakken operators, the MBOGC functions similarly to North Dakota's NDIC: it establishes drilling units, hears pooling petitions, and issues orders that integrate non-consenting mineral owners.
An operator petitions the MBOGC to establish a drilling unit (typically 640 or 1,280 acres for horizontal Bakken wells). Once approved, all mineral owners in the unit boundary are included regardless of lease status.
Non-consenting owners receive notice of the proposed unit and may:
Elect working interest participation — fund their proportionate share of drilling costs subject to a risk penalty (typically 150% cost recovery before net revenue flows).
Receive a royalty or non-participating interest — participate at a minimum royalty without contributing to costs, at a rate below voluntary lessee terms.
In practice, Montana MBOGC pooling orders in the Bakken are routine administrative events, similar to NDIC spacing unit orders in North Dakota. An MBOGC pooling notice signals imminent development. Some mineral owners consider this an opportune moment to sell — the value of an interest is typically elevated when operator commitment to drill is confirmed.
Montana Bakken mineral rights are priced by reference to North Dakota Bakken values, with a discount that reflects the basin-margin position of the Montana play. Understanding the pricing relationship helps Montana mineral owners set realistic expectations:
ND core four counties (McKenzie, Mountrail, Williams, Dunn) sit at the basin's structural center with the highest average well IPs, best cumulative recoveries, and most active development programs. Montana's Richland County is the closest analog to the ND outer basin counties (Burke, Divide, Richland ND) — active development, established production, but lower average per-well recoveries than the ND structural core. The discount from ND core to MT core is roughly 20–35%, depending on location, activity level, and current operator programs.
Richland County (Elm Coulee / active horizontal): Producing royalties on active ConocoPhillips, XTO, or Chord Energy horizontals typically command 3–5× trailing annual royalty income — reflecting active buyer demand and known well economics in the county.
Roosevelt, Sheridan, Daniels counties: Active producing interests command 2–4× trailing income. Non-producing acreage in areas with nearby active development attracts per-acre values; acreage in areas with no operator activity is harder to price.
McCone, Valley, Dawson counties: More marginal basin-margin positions; values depend heavily on whether a specific section has active wells or nearby development activity. Historical production from older conventional wells adds modest value.
Montana mineral interests are recorded at the county clerk and recorder's office in the county where the minerals are located. Retrieve your warranty deed or mineral deed and confirm the Section, Township, Range (STR) and any formation-specific or depth limitations noted in prior conveyances.
Your royalty check stubs (from ConocoPhillips, XTO, Chord, or other operators) show the well names, production volumes, and your decimal interest. Division orders from operators also confirm your decimal. This information lets a buyer quote quickly and accurately.
Montana Bakken buyers track MBOGC records, active operator programs, and section-by-section well productivity. A buyer with specific Montana Bakken expertise can provide a written offer within days of receiving your STR legal description and royalty production data.
The PSA identifies the interest, confirms the legal description by STR, and specifies any depth or formation limitations. Montana mineral deeds are recorded at the county clerk and recorder — no MBOGC approval is required for a private sale. Buyers typically obtain title insurance through a Montana-licensed title company.
Montana transactions close remotely. The buyer sends the mineral deed for notarized execution, records at the county clerk, and funds by wire. Non-resident sellers should budget for filing a Montana non-resident income tax return for the year of sale.
Federal capital gains tax: Long-term rate applies if held over one year (0%, 15%, or 20% depending on income level).
Montana state income tax: Montana has a graduated state income tax with a top marginal rate of 6.75%. Capital gains from mineral rights sales are treated as ordinary income for Montana state tax purposes. Non-resident sellers who sell Montana mineral rights must file a Montana Form 2 non-resident return for the year of sale and pay Montana income tax on the gain attributable to the Montana sale. Montana does not require mandatory withholding from the buyer at closing (unlike California's Form 593), but the non-resident return is required.
Montana severance tax on production: Montana imposes a severance tax on oil production, with rates that vary by well age and production level but effectively run approximately 9% on most Bakken production. This tax is withheld by operators from royalty payments during the production period — it is a cost against royalty income during the period you own the royalty, NOT a tax on the sale of the mineral interest. When you sell, you receive the gross sale price without a Montana severance tax deduction.
Montana Board of Equalization property tax: Montana assesses producing mineral interests for county property tax purposes on an annual basis. The obligation ends when you sell the interest.
Stepped-up basis and 1031 exchange: Inherited Montana mineral rights receive a stepped-up basis to fair market value at date of inheritance. A 1031 exchange can defer both federal and Montana state tax. Consult a CPA for your specific situation.
Free written valuation — Richland, Roosevelt, Sheridan, and all Montana Bakken counties. No commissions.
Request Your Free Montana ValuationLocate your deed (recorded at the county clerk and recorder), identify your county and section-township-range, gather your royalty check stubs, and request a written offer from a buyer with Montana Bakken expertise. The transaction closes remotely with no on-site requirement. Non-residents must file a Montana Form 2 non-resident return for the sale year.
Montana Bakken sits on the western margin of the Williston Basin, where average well productivity is generally lower than ND's core four counties (McKenzie, Mountrail, Williams, Dunn). Richland County MT is the Montana analog to ND outer basin counties — active development, real production, but a 20–35% discount to ND core pricing. This discount reflects basin geology, not the quality of your title or royalty terms.
Yes. The Montana Board of Oil and Gas Conservation (MBOGC) issues pooling orders for horizontal Bakken drilling units, similar to North Dakota NDIC spacing unit orders. Non-consenting owners may elect a working interest with risk penalty or receive a minimum royalty interest. A pooling order signals imminent development and is often followed by active well permitting.
Montana's severance tax (~9% on oil) is deducted from royalty payments during the period you own the royalty — it reduces your monthly check, not your sale price. When you sell the mineral interest, you receive the full purchase price without a severance tax deduction. The buyer assumes all future production-period tax obligations. Only the Montana income tax on the gain (up to 6.75%) is relevant to the sale transaction.
ConocoPhillips has historically been the largest Montana Bakken operator, with significant Richland County acreage including the Elm Coulee Field legacy position. XTO Energy (ExxonMobil) operates wells in Richland and Roosevelt counties. Chord Energy (formed by the Oasis/Whiting merger) has positions spanning the MT-ND border. Several smaller independent operators work eastern Montana Bakken acreage.
Yes. Montana mineral transactions close entirely remotely — documents by mail, notarization wherever you live, payment by wire. You must file a Montana Form 2 non-resident return for the sale year. Montana does not require withholding at closing (unlike California), so you receive the full sale price at closing and settle the Montana tax obligation when you file your return.
Disclaimer: This information is for educational purposes only and is not legal, tax, or financial advice. Consult qualified Montana professionals for advice specific to your situation.
Join mineral rights owners across 33 states who chose a direct, BBB-accredited company to sell mineral rights to — purchasing directly since 2007.
Get My Offer Now