North Dakota oil and gas royalties for your 1031 exchange.
Where the North Dakota royalties Peregrine sources for 1031 investors come from — the basins, the operators, the cap-gains math, and what makes North Dakota royalties distinct.
North Dakota basins where Peregrine has acquired interests.
Each basin has its own decline-curve profile, operator mix, and valuation comp set. Run the eligibility check or the calculator to see how your specific basin affects the math.
Bakken / Three Forks
The largest North American oil play. Tight oil. Wells produce for 30+ years with steep early decline.
Mid-Bakken
The sweet spot. Highest-producing acreage in the state. Royalty sales here command the highest per-acre prices.
Three Forks (Lower)
Second pay zone in the same wellbore. Many royalties cover both formations.
The operators behind the North Dakota royalties we source.
The 10 operators across North Dakota that show up most often in the royalty portfolios Peregrine sources. Operator credit and well productivity factor into how we underwrite each portfolio.
Four North Dakota-specific things that affect your exchange.
The rules that apply uniquely to North Dakota royalty and mineral owners. Peregrine’s landmen handle each so you don’t have to.
- 01
Long-term gains exclusion.
ND allows a 40% exclusion on long-term capital gains, effectively reducing the top state rate from 2.9% to roughly 1.74%. The lowest non-zero state cap-gains burden of any major mineral-producing state.
- 02
DMR confidential well data.
North Dakota DMR keeps initial well production data confidential for six months. Comp sales lag accordingly. Peregrine works around this with operator-direct data.
- 03
Bakken decline curves are deceptive.
Wells produce for 30+ years but decline 70%+ in year one. Long-tail income is real but the first-year check is not representative.
- 04
Severance + extraction taxes.
ND levies a 5% Oil & Gas Gross Production Tax and a separate Oil Extraction Tax (5%). These come off the royalty owner’s check at source, not at sale — but they affect valuation comps.
What a North Dakota exchange looks like, end to end.
Every interest is different — so the clearest picture is your own.
Tell us your exchange timeline and target equity, and a partner maps a royalty portfolio to your numbers with the full 1031 timeline — no obligation. Prefer to model it yourself first? Run the calculator below.
North Dakota-specific questions, answered.
The questions we hear most often from Bakken and DJ-adjacent mineral owners. Fifteen more on the full FAQ page.
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Does Peregrine buy mineral rights in North Dakota?
Yes. North Dakota is a core focus for our Denver office. We have acquired interests across the Bakken and Three Forks formations in Williston Basin counties since 2004, working with both inherited and long-held mineral owners. -
Which North Dakota counties do you focus on?
Most heavily McKenzie, Mountrail, Williams, Dunn, and Divide counties — the core Bakken counties — with selective interest in Stark, Billings, and Burke when production and operator quality support it. -
How does North Dakota's extraction tax affect my exchange?
North Dakota's oil extraction tax and gross production tax are paid by the operator before your royalty check, so they do not directly affect the 1031 mechanics. They do affect the valuation: when we model your interest, we use the net royalty (after severance) as the baseline cash flow, which is what gets capitalized into your offer. -
How long does a North Dakota mineral rights 1031 take?
From first call to a signed purchase agreement: typically 5–10 business days. After signing, the 1031 clock begins: 45 days to identify replacement property and 180 days total to close.