HB 1387 Summary

• Amends Section 38-11.1-04 to require mineral developers to pay surface owners for damages sustained by drilling operations, including loss of agricultural production and income, lost land value, lost use and access, and lost improvement value.

• Allows damage and disruption payments to be determined by mutual agreement between surface owner and mineral developer, with consideration given to the period of time during which loss occurs.

• Creates a new section requiring mineral developers to pay surface owners annually for loss of agricultural production and income caused by drilling operations, unless the surface owner elects to receive a single lump sum payment.

• Prohibits reservation or assignment of compensation apart from the surface estate, except to a tenant of the surface estate, and allows tenants to recover their proportional share of damages in the absence of an agreement with the surface owner.

• Limits compensation payments under both sections to land directly affected by drilling operations.