Title 38, Mining and Gas and Oil Production

As used in this chapter: 1. "Commission" means the industrial commission. 2. "Nonhydrocarbons" include compressed air, nitrogen, and other gases and liquids not otherwise regulated by title 38. 3. "Underground storage and retrieval facility" means a drilled, bored, or excavated d…

The commission has jurisdiction and authority over any person or property, public or private, necessary to enforce this chapter. The commission acting through the office of the state geologist may: 1. Require: a. Identification of ownership of all facilities and equipment used fo…

A person may not commence operations for the testing, exploration, excavating, drilling, boring, or construction of an underground storage and retrieval facility or the conversion of an existing facility for use in an activity regulated by this chapter, without obtaining a permit…

1. Following a hearing, the commission may deny an application if the commission determines the facility or activity poses a threat to ground or surface waters or the environment. A person denied a permit may appeal the denial in accordance with chapter 28-32. 2. All fees collect…

The commission may bring action against a person violating or threatening to violate a provision of this chapter, or a rule, regulation, or order of the commission. The action must commence in the district court of the county where the violation occurred or is threatened. Without…

1. A person that violates this chapter, or a rule, regulation, or order of the commission adopted under this chapter is subject to a civil penalty of not more than twelve thousand five hundred dollars for each violation and for each day the violation occurred. 2. It is a class C …

A proceeding under this chapter for the issuance or modification of rules, including emergency orders relating to underground storage and retrieval and determining compliance with rules of the commission, must be conducted in accordance with chapter 28-32. If the commission deter…

As used in this chapter: 1. "Commission" mean the industrial commission. 2. "Gas" includes all natural gas, including hydrogen, and all other fluid hydrocarbons not defined as oil. 3. "Geological storage" means the underground storage of oil or gas in a storage reservoir or salt …

The commission has authority: 1. Over all persons and property necessary to administer and enforce this chapter when necessary to prevent waste, to protect correlative rights of the mineral and surface estate, or to effect greater ultimate storage and recovery of oil and gas. 2. …

Geologic storage is allowed if permitted by the commission. A permit may be transferred if the commission consents.

1. The commission shall hold a public hearing before issuing any storage permit. 2. Notice of the hearing must be published for two consecutive weeks in the official newspaper of the county or counties where the storage reservoir or salt cavern is proposed to be located and in an…

Before issuing a permit for storage in an oil and gas reservoir, the commission shall find: 1. The storage operator has or will obtain the consent by lease, purchase, or other agreement from all surface owners where surface disturbance activities are necessary and surface facilit…

Before issuing a permit for storage in a saline reservoir or aquifer, the commission shall find: 1. The storage operator has or will obtain the consent by lease, purchase, or other agreement from all surface owners where surface disturbance activities are necessary and surface fa…

Before issuing a permit for storage in a salt cavern, the commission shall find: 1. The storage operator has or will obtain the consent by lease, purchase, or other agreement from all surface owners where surface disturbance activities are necessary and surface facilities will be…

If a storage operator does not obtain the consent of all persons owning a pore space and of mineral interest owners when required by this chapter, the commission may require the interest owned by the nonconsenting owners be included in an approved storage facility and subject to …

All oil or gas previously reduced to possession and subsequently injected into underground storage facilities must be deemed the property of the storage operator subject to the obligation to pay royalties as set forth in section 38-25-10.

1. Unless otherwise expressly agreed by the storage operator, mineral owners, and lease owners, royalties on gas produced but not sold and which is injected into a storage facility instead of flaring or for lack of market, are not due on the produced and stored gas until gas volu…

This chapter does not apply to applications filed with the commission which propose to use produced gas for an enhanced oil or gas recovery project. Those applications must be processed under chapter 38-08.

As used in this chapter, unless the context requires otherwise: 1. "Commission" means the industrial commission. 2. "Geophysical exploration" means any method of obtaining petroleum-related geophysical surveys. 3. "Operator of the land" means the surface owner or the surface owne…

Notwithstanding any other provision of this chapter, the commission is the primary enforcement agency governing geophysical exploration in this state. Any person in this state engaged in geophysical exploration or engaged as a subcontractor of a person engaged in geophysical expl…

A person must be deemed doing business within this state when engaged in geophysical exploration within the boundaries of this state, and shall, if not already qualified to do business within the state under chapter 10-19.1, 10-32.1, 45-10.2, 45-22, or 45-23 prior to such explora…

1. A geophysical exploration contractor desiring to engage in geophysical exploration in this state shall file with the commission a good and sufficient surety bond in the amount of fifty thousand dollars if the contractor intends to conduct shot hole operations or in the amount …

Any person desiring to engage in geophysical exploration before actually engaging in the exploration shall file an application for a permit to engage in geophysical exploration with the commission. The application for a permit for geophysical exploration must include the followin…

1. Upon filing a complete application for permit to explore pursuant to section 38-08.1-04, the commission may issue to any person desiring to engage in geophysical exploration a "geophysical exploration permit". A person may not engage in geophysical exploration activities in th…

The commission shall immediately forward notice of the issuance of a permit to the board of county commissioners of the county in which the lands are located. The commission may revoke the permit of any person engaging in geophysical exploration upon a showing that that person ha…

Within thirty days following any calendar month in which geophysical exploration is begun by any person within this state, such person shall file with the commission and shall send to the owner or occupier of any land upon which work is begun, a record showing the township, range…

1. Drill holes must be plugged and abandoned as required by this section. 2. The seismic company responsible for the plugging and abandonment of seismic shot holes shall notify the commission in writing that it intends to plug and abandon the drill hole. The required notice must …

All seismic holes must be plugged in accordance with rules adopted by the commission. The commission shall review and revise its rules governing plugging requirements as technology in the field evolves. The seismic company is liable for all damages resulting from failure to compl…

1. A person who violates any provision of this chapter or commission rule or order is subject to a civil penalty imposed by the commission not to exceed one thousand dollars for each offense, and each day's violation is a separate offense. A penalty imposed under this section, if…

The commission may adopt and enforce rules to implement this chapter.

The legislative assembly finds the following: 1. It is incumbent on the state to protect the public welfare of North Dakota which is largely dependent on agriculture and to protect the economic well-being of individuals engaged in agricultural production, while at the same time p…

It is the purpose of this chapter to provide the maximum amount of constitutionally permissible protection to surface owners and other persons from the undesirable effects of development of minerals. This chapter is to be interpreted in light of the legislative intent expressed h…

In this chapter, unless the context or subject matter otherwise requires: 1. "Agricultural production" means the production of any growing grass or crop attached to the surface of the land, whether or not the grass or crop is to be sold commercially, and the production of any far…

Upon request of the surface owner or adjacent landowner, the department of environmental quality shall inspect and monitor the well site on the surface owner's land for the presence of hydrogen sulfide. If the presence of hydrogen sulfide is indicated, the department of environme…

The mineral developer shall pay the surface owner a sum of money equal to the amount of damages sustained by the surface owner and the surface owner's tenant, if any, for lost land value, lost use of and access to the surface owner's land, and lost value of improvements caused by…

1. Before the initial entry upon the land for activities that do not disturb the surface, including inspections, staking, surveys, measurements, and general evaluation of proposed routes and sites for oil and gas drilling operations, the mineral developer shall provide at least s…

If the domestic, livestock, or irrigation water supply of any person who owns an interest in real property within one-half mile [804.67 meters] of where geophysical or seismograph activities are or have been conducted or within one mile [1.61 kilometers] of an oil or gas well sit…

Any person, to receive compensation, under sections 38-11.1-08 and 38-11.1-09, shall notify the mineral developer of the damages sustained by the person within two years after the injury occurs or would become apparent to a reasonable person. Any claim for relief for compensation…

1. As used in this section, "certified appraiser" has the same meaning as in section 43-23.3-01. 2. Before commencing a legal action to recover compensation, a person entitled to compensation shall obtain a written appraisal valuing all parcels affected or foreseeably affected by…

Unless both parties provide otherwise by written agreement, at the time the notice required by subsection 2 of section 38-11.1-04.1 is given, the mineral developer shall make a written offer of settlement to the person seeking compensation for damages when the notice required by …

The mineral developer shall pay the surface owner a sum of money equal to the amount of damages sustained by the surface owner and the surface owner's tenant, if any, for loss of agricultural production and income caused by oil and gas production and completion operations. The am…

If the person seeking compensation rejects the offer of the mineral developer, that person may bring an action for compensation in the court of proper jurisdiction. If the amount of compensation awarded by the court is greater than the amount offered by the mineral developer, the…

Within one year after a compensation offer made under section 38-11.1-08 is rejected, either the mineral developer or surface owner may involve the North Dakota mediation service or other civil mediator. Involvement of a mediator may comply with Rule 8.8 of the North Dakota Rules…

The North Dakota mediation service may mediate disputes related to easements for oil and gas-related pipelines and associated facilities.

The remedies provided by this chapter do not preclude any person from seeking other remedies allowed by law. This chapter does not apply to the operation, maintenance, or use of a motor vehicle upon the highways of this state as these terms are defined in section 39-01-01.

In this chapter, unless the context or subject matter otherwise requires: 1. "Agricultural production" means the production of any grass or crop attached to the surface of the land, whether or not the grass or crop is to be sold commercially, and the production of any farm animal…

Upon request of another state agency, the surface owner, or an adjacent landowner, the department of environmental quality shall conduct a site visit and evaluate site-specific environmental data as necessary to ensure compliance with applicable environmental protection laws and …

1. The mineral developer shall give the surface owner written notice of the drilling operations contemplated at least twenty days prior to the commencement of the operations, unless waived by agreement of both parties. 2. This notice must be given to the record surface owner at t…

1. The mineral developer shall pay the surface owner a sum of money equal to the amount of damages sustained by the surface owner and the surface owner's tenant, if any, for loss of agricultural production and income, lost land value, lost use of and access to the surface owner's…

Unless both parties provide otherwise by written agreement, the mineral developer shall make a written offer of settlement to the person seeking compensation for damages when the notice required by section 38-11.2-03 is presented. The person seeking compensation may accept or rej…