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Sell Oil & Gas Royalties in Montana

Buckhead Energy buys Montana royalty interests, ORRIs, and NPRIs with our own capital — Williston Basin Bakken and Red River production, Cedar Creek Anticline conventional, and Sweetgrass Arch gas. Free written offer, zero fees or commissions, closing in 30–45 days.

19 years buying royalties · A+ BBB · funds wired at closing

Get Your Free Montana Royalty Offer

Quick Answer To sell oil and gas royalties in Montana: gather your division orders and recent check stubs, request a written offer from a direct buyer, and close by notarized conveyance recorded in the county where the minerals sit. Montana has one feature every royalty owner should know before modeling anything: the entire production-tax incentive structure applies only to working interests. Royalty owners pay a flat 15.10% in every category — no new-well holiday, no stripper relief, no horizontal incentive. Offsetting that, Montana charges no separate county property tax on producing minerals, and has no dormant mineral statute.

What to look for in a Montana royalty buyer

There is no single "best" royalty buyer for every Montana owner, but four filters separate a serious buyer from an intermediary. Is the buyer using its own capital? Will they put the offer and its reasoning in writing? Who pays title and closing costs? And does the buyer model your tax correctly? This matters more in Montana than anywhere: a buyer who assumes your new horizontal well carries the 0.80% incentive rate is modeling the working interest, not your royalty, which pays 15.10% from day one. Getting that wrong in either direction produces a wrong number. Buckhead Energy is a direct buyer, buys with its own funds, and pays the title costs.

How to compare mineral and royalty buyers →

Every Type of Montana Royalty Interest, Purchased Directly

Royalty Interests (RI)

The classic royalty under a lease on your Montana minerals — monthly checks from operator production, free of drilling and operating costs.

Overriding Royalties (ORRI)

Carved out of the working interest — common for landmen, geologists, and dealmakers. ORRIs expire with their lease, which makes timing a real consideration. ORRI guide →

Non-Participating (NPRI)

Royalty without executive rights or bonus — often inherited and misunderstood. Fully sellable. NPRI guide →

Producing or recently shut-in, whole or fractional, one well or many counties — including inherited interests still in an estate (we handle heirship).

What makes a Montana royalty different

What royalty do you get in Montana?

In almost every state, your oil & gas royalty is set by your lease — not by statute. There is no government-set royalty rate for privately negotiated leases.

If you don't lease (force-pooling floor) 1/8 (12.5%)

A refusing owner is deemed to own a 1/8 (12.5%) landowner royalty on their proportionate production until the drillers recover costs, after which they become a full working-interest owner.

Source: Mont. Code Ann. § 82-11-202(2)(c)

Typical negotiated lease royalty (market convention, not law): Across the U.S., negotiated oil & gas leases have historically run from 1/8 (12.5%) at the low end to 1/4 (25%) in the most competitive plays, with 3/16 (18.75%) and 1/5 (20%) common in active basins. Your actual rate depends on the play, the operator, the competition for your acreage, and when you signed — not on any state rate.

Montana royalty owners get none of the incentive rates

Montana taxes by well type, vintage, production type, incentive period, and price trigger — but every one of those levers applies only to the <strong>working interest</strong>. The nonworking (royalty) column is flat across every category of both the oil and gas tables:

Crude oil — royalty (nonworking) interest 15.10%, all categories

Source: Montana Dept. of Revenue — Oil and Natural Gas Production Tax

Natural gas — royalty (nonworking) interest 15.10%, all categories

Source: Montana Dept. of Revenue — Oil and Natural Gas Production Tax

For contrast, a working interest in the first twelve months of primary recovery — or the first eighteen months of a post-1999 horizontal — pays 0.80%. A royalty owner on that same brand-new well pays 15.10%. Model Montana royalty net revenue at roughly 15% off the top and do not assume a new-well tax holiday flows through. Interests owned by the state or a local government are exempt. Confirm your own position with a CPA — this is published reference, not tax advice.

No separate county property tax on producing minerals

Montana consolidated three levies — the state severance tax, the oil and gas net proceeds property tax, and the local government severance tax — into a single production tax in 1996. The production tax is the local tax: the Department of Revenue collects it and distributes the majority to the producing county. A Montana royalty owner does not receive a separate county mineral property tax bill and will not see a separate ad valorem deduction on the check stub.

Montana has no dormant mineral statute

Severed Montana minerals do not lapse for non-use. This is worth stating plainly because several sources cite Montana dormancy provisions to "MCA Title 70, chapter 30" — that chapter is Eminent Domain. Montana's legislature considered and rejected the Uniform Dormant Mineral Interests Act in 1987, 2005, and 2007. What Montana does have is a trust mechanism allowing production proceeds to be held for owners who cannot be located — a custodial arrangement, not a divestiture of title.

See which states do have a dormancy deadline →

Section-township-range

Montana is a rectangular-survey state surveyed off the Principal Meridian, Montana. Note that reservation lands — Fort Peck, Blackfeet, Crow, Fort Belknap — are also described in section-township-range but carry trust and allotted ownership that changes who leases and who is paid.

Not sure what you own? Use the ownership flowchart →

Montana Board of Oil and Gas Conservation (BOGC)

The BOGC permits Montana wells and publishes the production records we check on every Montana evaluation.

Montana Board of Oil and Gas Conservation →

Where we buy royalties in Montana

Williston Basin

Eastern Montana and the dominant oil province — unconventional Bakken and Three Forks development anchored by Elm Coulee in Richland County.

Cedar Creek Anticline

Within the Williston — Fallon County production is largely vertical Silurian and Ordovician, a long-lived conventional decline profile very different from the Bakken horizontals.

Powder River Basin

Southeastern Montana — coalbed methane plus conventional oil, including the historic Bell Creek field.

Sweetgrass Arch

North-central Montana along the northern tier — the source of most Montana natural gas.

We also buy Big Snowy Uplift and Central Montana Trough interests and northern Bighorn Basin production in Carbon and Stillwater counties.

Active Montana royalty counties include:

RichlandFallonRooseveltPowder RiverSheridanDawsonWibauxCarbonPhillipsBlaineHillToole

All Montana counties we buy in →

Why Montana royalty owners sell

A flat 15.10% off the top: Montana royalty owners receive none of the incentive rates that working interests enjoy. That structural disadvantage compounds over the life of the interest and is fully priced into what the stream is worth.

Bakken decline is steep: Montana Williston horizontals pay most of their royalties in the first few years. A strong current check is not an annuity.

Two very different well populations: Cedar Creek Anticline verticals decline slowly over decades while Bakken horizontals decline fast. Owners frequently hold both without a clear view of either.

Distance and fragmentation: Many Montana mineral owners live out of state and hold small decimals across several counties, making the interest hard to monitor.

How selling your Montana royalties works

1
Send the basics. Division orders, 3–12 months of check stubs, and your lease if handy — the five documents that sharpen any offer. Missing some? We research county and BOGC records on every Montana evaluation.
2
Get a written offer. We model each well's production and decline, verify your decimal, apply current prices, and explain the reasoning — never a take-it-or-leave-it number.
3
Review the agreement. The purchase and sale agreement states exactly what's conveyed, the effective date, and who pays costs (we do).
4
Close and get paid. Notarized conveyance recorded in the Montana county where the minerals sit, funds wired at closing — typically 30–45 days from acceptance.

Know what your checks are telling you

Before you sell — or decide not to — read your own income stream like a buyer would: your royalty statement line by line, the full royalty calculation chain, and your trend over the last year. Run your own numbers with our royalty calculator, ground-truth prices against live WTI & Henry Hub benchmarks, and see who operates around you on the top Montana operators leaderboard. The more you know, the better our conversation.

Frequently asked questions

How do I sell oil and gas royalties in Montana?

Gather your division orders, three to twelve months of check stubs, and your lease if you have it. Request a written offer from a direct buyer, review the purchase and sale agreement, then close by notarized conveyance recorded in the county where the minerals sit. Buckhead Energy handles and pays for the Montana title work and typically closes within 30 to 45 days.

How much production tax do Montana royalty owners pay?

A flat 15.10% on both oil and gas, in every production category. Montana's incentive structure — the twelve-month new-well holiday, the eighteen-month horizontal holiday, stripper relief, tertiary and secondary rates, and price triggers — applies exclusively to working interests. A royalty owner on a brand-new horizontal well pays 15.10% while the working interest pays 0.80%. Model Montana royalty income accordingly.

Do I pay county property tax on Montana minerals?

No. Montana folded the old net proceeds property tax and local government severance tax into the single production tax in 1996, and distributes most of the proceeds to the producing county. You will not get a separate county mineral tax bill or see a separate ad valorem deduction on your stub.

Can I lose my Montana mineral rights if I do nothing?

No. Montana has no dormant mineral act — the legislature rejected the uniform act in 1987, 2005, and 2007. Be aware that some sources cite Montana dormancy to "MCA Title 70, chapter 30," which is actually the Eminent Domain chapter. Montana does have a trust mechanism to hold proceeds for unlocatable owners, but that is custodial and does not take title.

Can I sell just part of my royalties?

Yes. Partial conveyances are routine — many owners sell a fraction for liquidity and keep the rest. The deed simply describes the portion conveyed.

What is the difference between selling royalties and selling mineral rights?

A royalty interest is the income stream only; mineral rights include the underlying ownership with leasing (executive) rights. Both are sellable. ORRIs (carved from leases, expiring with them) and NPRIs (royalty without bonus or executive rights) are royalty-type interests Buckhead purchases regularly.

Are small royalty checks worth selling?

Often, yes. Small persistent checks — especially from long-lived stripper wells — carry real present value, and administrative burden frequently outweighs modest income for scattered or inherited interests. A written offer prices the whole remaining stream at once.

This page is educational and is not legal, tax, or financial advice. Statutory rates are quoted from the linked issuing agency as of 2026-07-21 and can change by legislative action. Consult a qualified attorney and CPA about your own interest before selling.

Sell royalties — national overview · Compare Montana to another state · Montana mineral rights · Sell minerals in Montana

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