North Dakota Administrative Code

1. Before accessing trust lands to conduct any surveys, including general surveys, metes-and- bounds, centerline, cadastral, ocular reconnaissance cultural resource surveys, and habitat or wetland delineations, the following criteria must be met: a. An application for an encumbra…

In reviewing an application for an encumbrance, the following may be considered: 1. Financial benefit to the trusts; 2. Availability of alternate encumbrance site or route; 3. The least environmentally damaging site or route regardless of property ownership; 4. Physical stability…

1. The commissioner may approve and issue an encumbrance on the board's behalf in accordance with this chapter. 2. An encumbrance may not be approved or issued until all required payments and information are received by the department. 3. An encumbrance must be issued prior to si…

The department may enter the land at any time without notification for the purpose of inspecting the land, activity, or construction. History: Effective January 1, 2020; amended effective April 1, 2026. General Authority: NDCC 15-01-02, 28-32-02 Law Implemented: NDCC 15-01-02, 15…

1. Unless otherwise stated in the encumbrance, the encumbrance expires two years from the date of issuance if the activity or construction is not fully completed on trust lands in accordance with the terms of the encumbrance. 2. An encumbrance automatically terminates without not…

1. An encumbrance may not be assigned unless specifically authorized by the terms of the encumbrance or upon written consent of the commissioner. 2. If specifically authorized by the terms of the encumbrance: a. The assignor is responsible for compliance with all terms of the enc…

The board may approve an exchange of trust lands which it determines is in the best interests of the trusts and complies with current law. Under North Dakota Century Code section 15-06-01, any land received under an exchange of original grant land maintains its status as "origina…

The department shall consider the criteria listed below in any land exchange. Land exchanges are not required to satisfy all criteria outlined below. Criteria must be considered in a cumulative manner. Meeting certain criteria may not guarantee approval. 1. A land exchange must r…

An applicant shall submit a written letter of application to the commissioner to request a land exchange. The application must include: 1. Legal description of the trust lands to be exchanged; 2. Legal description of the proposed exchange land; 3. Applicant's estimated valuation …

The department shall evaluate the application and may request the applicant provide additional information. After the department's evaluation: 1. The commissioner may reject an application if the application: a. Does not meet the requirements of subsections 1 and 2 of section 85-…

1. If the board determines the application covers a tract of land the board is willing to exchange, the department shall: a. Post on the department's website a notice of the application for land exchange, any supporting documentation, and instructions for submitting public commen…

Following the department's application evaluation, the board's determination that the application covers a tract the board is willing to exchange, and expiration of the public comment period, the department shall prepare an exchange report to be presented to the board, which will…

The board shall review the exchange report, department recommendations, and public comments and determine whether to proceed with the exchange. The commissioner is authorized to complete all documents for the exchange on the board's behalf if the board approves the exchange. If t…

The board shall retain and manage original grant lands to produce revenue consistent with the long-term maintenance of the original grant lands' income producing potential and ecological health. The commissioner may propose the sale of original grant lands after the original gran…

A sale of original grant lands, excluding sale of of tracts listed in subsection 1, 2, or 3 of section 85-04-07-01 is subject to the following: 1. The proposed sale must result in no net loss of leasable original grant lands; and 2. The land provided as consideration must provide…

1. The department may recommend a tract of land that meets the criteria of section 85-04-07-02 to the commissioner for consideration for a no net loss sale. 2. If the commissioner determines to proceed with the sale, the commissioner shall present to the board the proposed no net…

The purchaser is responsible for payment of costs, including appraisals, title examinations, and other costs as may be necessary to complete the sale. History: Effective January 1, 2021; amended effective April 1. 2026. General Authority: N.D. Constitution article IX, § 6; NDCC 1…

Within thirty days of a decision under these rules, an aggrieved party may request the commissioner review the decision. The aggrieved party seeking review shall submit any information required by the commissioner as part of this request. Within thirty days of the commissioner's …

The board shall retain and manage acquired lands to produce revenue consistent with the long-term maintenance of the acquired lands' income producing potential and ecological health until sold. The commissioner may propose the sale of acquired lands if the lands have been evaluat…

A sale of acquired lands, with the exception of tracts provided in subsections 1, 2, 3, and 4 of section 85-04-08-01, is subject to the following: 1. The proposed sale must result in no net loss of leasable acquired lands; and 2. The land provided as consideration must provide ac…

1. The department may recommend a tract of land that meets the criteria of section 85-04-08-02 to the commissioner for consideration for a no net loss sale. 2. If the commissioner determines to proceed with the sale, the commissioner shall present to the board the proposed no net…

The purchaser is responsible for payment of costs, including appraisals, title examinations, and other costs as may be necessary to complete the sale. History: Effective January 1, 2021; amended effective April 1, 2026. General Authority: N.D. Constitution article IX, § 6; NDCC 1…

Within thirty days of a decision under these rules, an aggrieved party may request the commissioner review the decision. The aggrieved party seeking review shall submit any information required by the commissioner as part of this request. Within thirty days of the commissioner's …

The department shall consider the following criteria when reviewing an application for sale under North Dakota Century Code chapter 15-09: 1. The tract is required for the purposes stated in the application and issuance of the patent or deed must not have a significant negative i…

1. The commissioner may accept an application to purchase land in accordance with North Dakota Century Code chapter 15-09. 2. An application must be submitted on a form prescribed by the department upon request. 3. The application must: a. Be completed and signed by authorized pe…

The purchaser is responsible for payment of all costs, including appraisals, title examinations, and other costs as may be necessary to complete the sale. History: Effective January 1, 2021. General Authority: N.D. Constitution article IX, § 6; NDCC 28-32-02 Law Implemented: NDCC…

A no-fencing clause may be added to the conveyance to keep trust lands from being severed. History: Effective January 1, 2021. General Authority: N.D. Constitution article IX, § 6; NDCC 28-32-02 Law Implemented: NDCC 15-09

Any conveyance must contain a reversion clause stipulating that if the property is at any time not used for its stated purpose at the time of purchase, the board may terminate the estate created by the conveyance and repossess the property. The power of termination and re-entry m…

Within thirty days of a decision under these rules, an aggrieved party may request the commissioner review the decision. The aggrieved party seeking review shall submit any information required by the commissioner as part of this request. Within thirty days of the commissioner's …

The board shall invest the financial assets under its control in accordance with the prudent investor rule as defined in North Dakota Century Code section 21-10-07. History: Effective January 1, 2020. General Authority: NDCC 28-32-02 Law Implemented: NDCC 15-03-04 1…

1. The department may accept an oil and gas lease nomination for a tract not already under an oil and gas lease as reflected in department records and may accept a nomination for a tract under an oil and gas lease which will expire prior to the date of the oil and gas lease sale.…

The department shall publish notice of an oil and gas lease auction on the department's website. The notice must be published at least ten days prior to the day of the auction. The advertisement must 1 specify the date, time, and place of the auction, and how an interested person…

1. The board may issue an oil and gas lease by public auction. Public auctions may be hosted live or online at the discretion of the commissioner. Bidding is based on a bonus of not less than one dollar per acre, and an annual delay rental of not less than one dollar per acre per…

The commissioner, in the best interests of the trusts, may reject a nomination or a bid any time prior to the issuance of an oil and gas lease. History: Effective January 1, 2020. General Authority: NDCC 15-05-09, 15-07-20, 15-08.1-06, 61-33-06 Law Implemented: NDCC 15-05-09

An oil and gas lease must be issued on a form approved by the board. An oil and gas lease must be made for a term of not less than five years and continue in effect under such term and for as long as oil or gas may be produced from the oil and gas leased premises in commercial qu…

1. A lessee shall submit an application to the department for an assignment, amendment, or extension of an oil and gas lease, or a portion of the oil and gas leased premises, utilizing the form available on the department's website. The lessee shall provide any documents requeste…

To request a voluntary release of an oil and gas lease, a lessee shall submit a written request to the department for the voluntary release of an oil and gas lease, or portion of an oil and gas leased premises, and shall provide all other documents requested by the department. Ap…

If a sale of gas, carbon black, sulfur, or any other products produced or manufactured from gas produced and marketed from the oil and gas leased premises, including liquid hydrocarbons recovered from such gas processed in a plant, does not constitute an arm's length transaction,…

Any payor that proposes to withhold royalty payments based upon an ownership dispute shall establish an escrow deposit account and shall deposit the disputed payments into this account. 1. The account must be established at the Bank of North Dakota, or other state or national cha…

1. Other than as provided in subsection 7, an oil and gas lease may be canceled for: a. Nonpayment of any sum due under the oil and gas lease; b. Breach of any oil and gas lease terms or conditions; or c. A violation of applicable laws, rules, or board policies. 2. Before an oil …

Within thirty days of a decision under these rules, an aggrieved party may request the commissioner review the decision. The aggrieved party seeking review shall submit any information required by the commissioner as part of this request. Within thirty days of the commissioner's …

Royalty payment and reporting are due on forms prescribed by the department as follows: 1. For gas: 6 a. Within one hundred twenty-three days of the last day of the month in which initial production occurs, royalty payment and reporting are due for the first, second, and third mo…

1. The department may audit and examine any records, including: a. Books, accounts, and receipts; and b. Contracts and other records pertaining to the production, transportation, sale, and marketing of the oil or gas or other products produced from the oil and gas leased premises…

1. A lessee requesting shut-in status of an oil or gas well, without canceling the lease, shall submit a written application to the department utilizing the form available on the department's website. The application must contain the following information: a. The name and well fi…

1. If a vertical oil and gas well has been drilled and is producing in commercial quantities from mineral acreage owned by another or from adjacent trust lands leased at a lesser royalty, which vertical oil and gas well is within one thousand feet [304.8 meters] of the trust land…

A request for a prospecting permit is issued in accordance with chapter 85-04-04. History: Effective January 1, 2020. General Authority: NDCC 15-05-05, 15-05-09, 15-07-20, 15-08.1-06, 61-33-06 Law Implemented: NDCC 15-05-01, 15-05-08, 15-05-09

A coal lease may be issued upon acreage not already under a coal lease as reflected in department records. A coal lease is limited to a maximum of one quarter section, unless otherwise authorized by the board. History: Effective January 1, 2020. General Authority: NDCC 15-05-05, …

A written application for a coal lease must include: 1. Legal description of the lands to be leased; 2. Proposed terms for the coal lease, including the bonus, length, delay rental, and royalty; 3. Documentation showing that the bonus, term, delay rental, and royalty being offere…

1. Upon receipt of an application for a coal lease and a determination by the board that the application covers a tract the board is willing to lease, the department shall post on the department's website a notice of the application for coal lease, any supporting documentation, a…

The department may negotiate with the applicant the terms and conditions of a coal lease the department deems to be in the best interests of the trusts. If the board owns the surface estate of a coal leased premises, compensation for the surface damage must be negotiated separate…