ND HB1264

Establishes that royalty payment obligations under oil and gas leases are essential contract terms, with breach potentially grounds for lease cancellation when court determines equities warrant it

Requires operators to pay interest at eighteen percent per annum on unpaid royalties if payment is not made within one hundred fifty days after oil or gas is marketed, with no requirement for mineral owners to request interest

Allows the commissioner of university and school lands to negotiate interest rates between the prime rate plus four percent and eighteen percent per annum for unpaid royalties on state-owned minerals

Permits operators to remit royalties semiannually if the aggregate amount is less than fifty dollars

Grants district courts jurisdiction over royalty disputes and entitles prevailing parties to recover court costs and reasonable attorney's fees, with exceptions for in-kind production elections, title disputes, or missing mineral owners