ND HB1277

Industrial commission must automatically place wells that have not produced oil or natural gas in paying quantities for one year on abandoned-well status.

"In paying quantities" is defined as whether a reasonably prudent operator would continue operating the well to make a profit of at least twenty percent under all relevant circumstances.

Placement of a well on abandoned-well status after the lease's primary term expires automatically terminates the lease.

Wells in abandoned-well status must be returned to production, approved for temporary abandonment, or plugged and reclaimed within six months or be placed on a single-well bond equal to plugging and reclamation costs.

After one year in abandoned-well status, well equipment, well-related equipment, salable oil, and any bonds covering the well are subject to forfeiture by the commission; this act applies retroactively.