Title 38, Mining and Gas and Oil Production

If upon the filing of a petition therefor and after notice and hearing, all in the form and manner and in accordance with the procedure and requirements hereinafter provided, the commission shall find: 1. That the unitized management, operation, and further development of a commo…

The order of the commission must define the area of the common source of supply or portion thereof to be included within the unit area and prescribe with reasonable detail the plan of unitization applicable thereto. Each unit and unit area must be limited to all or a portion of a…

At the time of filing of the petition for the approval of a unit agreement and the filing of the unit agreement, the commission shall schedule a hearing. At least forty-five days prior to the hearing, the applicant shall give notice of the hearing and shall mail, postage prepaid,…

From and after the effective date of an order of the commission creating a unit and prescribing the plan of unitization applicable thereto, the operation of any well producing from the common source of supply or portion thereof within the unit area defined in the order by persons…

Each unit created under the provisions of sections 38-08-09.1 through 38-08-09.16 is a body politic and corporate, capable of suing, being sued, and contracting as such in its own name. Each such unit is authorized on behalf and for the account of all the owners of the oil and ga…

Property rights, leases, contracts, and all other rights and obligations must be regarded as amended and modified to the extent necessary to conform to the provisions and requirements of sections 38-08-09.1 through 38-08-09.16 and to any valid and applicable plan of unitization o…

The unit area of a unit may be enlarged at any time by the commission, subject to the limitations provided in this chapter to include adjoining portions of the same common source of supply, including the unit area of another unit, and a new unit created for the unitized managemen…

A person to whom another is indebted for expenses incurred in drilling and operating a well on a drilling unit required to be formed as provided for in section 38-08-08, may, in order to secure payment of the amount due, fix a lien upon the interest of the debtor in the productio…

1. The commission may adopt rules governing the practice and procedure before the commission, which rules must be adopted pursuant to the provisions of chapter 28-32. 2. When an emergency requiring immediate action is found to exist, the commission may issue an emergency order wi…

1. The commission has the power to summon witnesses, to administer oaths, and to require the production of records, books, and documents for examination at any hearing or investigation conducted by it. No person may be excused from attending and testifying, or from producing book…

Any party adversely affected by any order of the commission may file a written petition for reconsideration in accordance with section 28-32-40. The commission shall grant or deny any such petition in whole or in part in accordance with the provisions of section 28-32-40 and rule…

1. Any party adversely affected by an order entered by the commission may appeal, pursuant to chapter 28-32, from the order to the district court for the county in which the oil or gas well or the affected property is located. However, if the oil or gas well or the property affec…

1. The sale, purchase, acquisition, transportation, refining, processing, or handling of illegal oil, illegal gas, or illegal product is hereby prohibited. However, no penalty by way of fine may be imposed upon a person who sells, purchases, acquires, transports, refines, process…

1. Any person who violates any provision of this chapter, or any rule, regulation, or order of the commission is subject to a civil penalty to be imposed by the commission not to exceed twelve thousand five hundred dollars for each offense, and each day's violation is a separate …

1. Whenever it appears that any person is violating or threatening to violate any provision of this chapter, or any rule, regulation, or order of the commission, the commission shall bring suit against such person in the district court of any county where the violation occurs or …

1. Every person, association of persons, corporation, or limited liability company now engaged or hereafter engaging in the business of purchasing crude petroleum in this state shall be a common purchaser thereof. 2. Every common purchaser of crude petroleum shall, without discri…

A producer may not commingle production from two or more oil or gas wells with diverse ownership in a storage facility without prior approval of the commission after notice and opportunity for hearing. If the commingling of production is for the express purpose of separating, met…

Upon request by a royalty owner to test an oil and gas meter or measuring device, the commission shall test the meter or measuring device or contract for the testing by a qualified meter tester who is independent of any operator or purchaser of production from the metered well.

The commission is vested with the authority and duty to regulate the exploration, development, and production of carbon dioxide, coal bed methane gas, helium gas, and nitrogen gas within the state, in the same manner, insofar as is practicable, as it regulates oil or gas as defin…

Any person reclaiming a drilling pit or reserve pit after the completion of oil and gas drilling operations shall record an accurate plat certified by a registered surveyor showing the location of the well and notice that an abandoned drilling pit or reserve pit may be on the loc…

1. Notwithstanding any other provision of law, the legislative assembly designates hydraulic fracturing, a mechanical method of increasing the permeability of rock to increase the amount of oil and gas produced from the rock; and the use of carbon dioxide for enhanced recovery of…

1. The commission shall create a geographic information system database for collecting pipeline shape files as submitted by each underground gathering pipeline owner or operator. The shape files and the resulting geographic information system database are exempt from any disclosu…

The application of this section is limited to an underground gathering pipeline that is designed or intended to transfer crude oil or produced water from a production facility for disposal, storage, or sale purposes and which was placed into service after August 1, 2015. Upon req…

In every transfer of land, whether by deed, contract, lease, or otherwise, by the state of North Dakota, or by any department thereof, fifty percent of all oil, natural gas, or minerals which may be found on or underlying such land shall be reserved to the state of North Dakota. …

Whenever the United States of America or any of its agencies or agents shall desire or be required to acquire or approve title to lands owned by the state of North Dakota, or any of its agencies, the officers, boards, or commissions having power to convey such lands have power to…

Whenever the state of North Dakota, or any of its agencies, has conveyed lands to any person and has reserved oil, gas, or minerals or rights therein or archaeological materials and the United States of America or any of its agencies or agents shall desire or be required to acqui…

Whenever the state or any of its departments sell lands to any person, from whom the state derived the title to such lands, or to the person's spouse or lineal descendants in the first degree, the lands must be sold free of any reservation of minerals provided for in section 38-0…

When the purchase price of such lands has been fully paid to the state or its departments, an instrument evidencing such release must be furnished on application and payment of fees under rules to be prescribed by the state and its departments, but in no case may the fee therefor…

Pending application and payment of fee under section 38-09-01.5, the state and its departments may continue to lease reserved minerals and to collect rentals and other income from such leases, and where lands have been sold on contract for deed, such rentals and other income must…

The governing body of any township, city, school district, or park district in this state may lease the grounds or lands of such political subdivision, or any part thereof, for oil and gas development for a primary term of not more than ten years, and may renew or extend any such…

Any oil or gas lease made by any of the political subdivisions mentioned in section 38-09-02 may provide that the lessee may consolidate the land covered by such lease with other adjoining lands for the purpose of joint development and operation of the entire consolidated premise…

A lease made by a political subdivision under the provisions of section 38-09-02 and the occupancy of the lands under such lease may not interfere materially with the purposes for which such lands are used and occupied by the political subdivision. No oil or gas well may be drill…

Any oil and gas lease on lands which are subject to delinquent tax charges may be confirmed, approved, and adopted by the board of county commissioners on behalf of the county if such lease is executed by the owner or owners of: 1. The right of redemption to the land described in…

The confirmation, approval, and adoption of an oil and gas lease under the provisions of section 38-09-05 must be by a proper resolution duly and regularly passed by the board of county commissioners at a regular or special meeting thereof. The board may insert in such resolution…

A copy of a resolution of the board of county commissioners confirming, approving, or adopting oil and gas leases, when certified by the county auditor of the county, may be recorded in the office of the recorder of such county. Upon the recording of a certified copy of any such …

If any land which is affected by a resolution adopted by the board of county commissioners pursuant to the provisions of section 38-09-07 and subject to delinquent tax charges or tax charges which have been adjusted by contract is forfeited to the county under tax proceedings by …

The lessee, or the lessee's assigns and successors in interest, may pay all bonuses, rentals, and royalties due under any oil and gas lease on lands subject to delinquent taxes or to taxes adjusted by contract, to the lessor, or the lessor's assigns or successors in interest, unt…

All bonuses, rents, and royalties becoming due and payable to any county under any provision of this chapter under an oil and gas lease must be paid to the lessor, or to the lessor's assigns or successors in interest, in accordance with and pursuant to the terms of the original l…

Real and personal property which a county may have acquired through purchase or forfeiture or by operation of law may be demised, leased, or let by the board of county commissioners for the purpose of: 1. Mining thereon; 2. Operating thereon for gas and oil; 3. Laying pipelines t…

The provisions of section 38-09-11 authorize the board of county commissioners to include in the lease and to carry out any provision which any individual owner could include or carry out except that the board of county commissioners may not: 1. Enter into any of the lines of bus…

All moneys received by any county from mining, oil, or gas lease and from royalties on any such lease must be paid to the county treasurer. Such amounts must be allocated to the state and county, and to any city, township, school district, or other taxing subdivision which has le…

No lands, owned in whole or in part, or on which a reservation of oil and gas rights has been made in a conveyance thereof, by the state of North Dakota or by any department or agency thereof or by any county or other political subdivision of this state, may be leased for oil and…

Before leasing any land or interest therein or any mineral rights reserved therein, the state of North Dakota or any of its departments or agencies shall first give notice in accordance with the rules of the board of university and school lands. The leasing must be held at the ti…

The state or any of its departments and agencies when making a public offering for lease of state-owned mineral interests may allow private owners of mineral interests common to the state's mineral interests to offer their mineral interests at the public offering to be conducted …

Before leasing any lands or interest therein or any mineral rights reserved in any conveyance thereof, any county or other political subdivisions thereof shall advertise the same in like manner as provided in section 38-09-15 and with like content of such notice and the leasing m…

Offers for leasing may be made in writing and such bids must be opened at the time of the leasing and bids may be offered orally at the time of the leasing. Such bids must be made upon the basis of acceptance of a lease upon the rental basis herein provided, plus such bonus as th…

All leases for the purposes as hereinbefore provided shall be made by the state of North Dakota and all agencies and departments and political subdivisions thereof for not less than twenty-five cents per acre [.40 hectare] per year for deferred drilling and shall be made with a r…

No lease of public land for exploration or development of oil and gas production is valid unless advertised and let as hereinbefore provided, except: 1. Where the acreage or mineral rights owned by the state or its departments and agencies or political subdivisions is less than t…

The state of North Dakota and its departments and agencies, the board of county commissioners of each county, and the governing body of any political subdivisions are hereby authorized to establish rules and regulations for the leasing of lands for the purposes set forth in secti…

All oil and gas mining leases made and executed prior to March 13, 1951, by the Bank of North Dakota, through its president, as agent for the state treasurer, as trustee for the state of North Dakota on lands or mineral interests acquired by the state treasurer, as trustee for th…