A lease for production made by a personal representative may be made subject to the confirmation of the district court, for a period of not more than ten years, and it may be extended thereafter as long as oil or gas is produced from such land by the lessee or the lessee's assigns or the lessee or the lessee's assigns are engaged in continuous drilling or reworking operations. Such a lease must be made upon such terms and in consideration of such bonuses, royalties, rentals, and payments as may be agreed upon except that in no case may the royalty be: 1. Less than equal to a one-eighth part of all oil produced and saved from the leased premises; 2. Less than equal to a one-eighth part of the gross proceeds at the prevailing market rate at the well for all gas used off the premises, when gas only is found on the leased premises; nor 3. Less than one-eighth of the gross proceeds at the prevailing market rate at the well for gas, during all times that such gas is used, when gas is produced from any oil well and used off the premises or for the manufacture of casinghead gasoline or dry commercial gas. No lease for production is effective for a period of more than two years from its date unless mining or a well is commenced on such land within such time, except that the lease may provide that the lessee may pay a delay rental in an amount that may be specified in the lease. Such payment operates as a rental and covers the privilege of deferring the commencement of mining or of a well for one year. A lease may provide for the payment of successive delay rentals which defers the commencement of mining or of a well for like successive periods. Any lease made by a personal representative under the authority of this section may provide for the pooling or unitization of the lease land, or any part or parts thereof, and of any mineral or royalty interest therein, with land adjoining or in the vicinity of the leased land, or any mineral or royalty interest therein, so as to form a unit for development and purpose of operation. Operations or production on any such unitized area shall have the same effect as operations or production on the leased land. The lease may provide for payment of a proportionate part of the royalties on production from any such unitized area to the personal representative in lieu of the royalties provided in the lease as to the area so unitized. A personal representative, upon compliance with the provisions
of this chapter, may also enter into agreements pooling or unitizing existing leases. Upon the execution, approval, and delivery of a production lease, all persons interested in the estate are bound thereby during the entire period thereof.
38-10-04. Lease for production made by personal representative to be approved by county court - Notice - Recording. Repealed by S.L. 1973, ch. 257, § 82.
38-10-05. Personal representative may sell mineral, oil, and gas rights separately from surface rights. Whenever it appears to the satisfaction of the district court that it is necessary for the payment of the family allowance or of claims, expenses of administration, or legacies, or that it is for the advantage, benefit, or best interests of the estate of a decedent, minor, or incompetent, and of the persons interested therein, that the whole or some undivided fractional part of the oil, gas, or other minerals in or under, or that may be produced from, land belonging to the estate should be sold separately from the surface rights, the personal representative may sell the same, upon order of the district court.
38-10-06. Petition required to obtain order of license - Contents of petition - Citation issued on petition. To obtain an order of the district court for the sale of oil, gas, or other mineral rights, a verified petition must be presented to and filed with the court setting forth the matters required by law to be contained in a petition for the sale of real estate and in addition thereto setting forth the quantity of the interest in the oil, gas, or other minerals desired to be sold and the probable amount to be realized on the sale thereof. A citation must be issued on the petition and served in the manner provided by law for the service of citations in district court. If all persons interested in the estate join in the petition or signify in writing their assent thereto or waive service of notice thereof, the hearing may be had at any time.
38-10-07. Objections to petition for confirmation of lease or for order of license to sell. Any person interested in the estate may file written objections to a petition for the approval and confirmation of a lease for production or to a petition for an order of license to sell oil, gas, or mineral rights. The petition and the objections thereto must be heard, the hearings thereon conducted, and the witnesses examined in the manner provided in title 30 for hearings on petitions for the sale of real property belonging to an estate.