ND HB1257

Reduces the approval threshold for royalty owners to ratify unit agreements from 80 percent to 60 percent for units established after August 1, 2001, and establishes a single standard based on the percentage required at initial commission approval.

Lowers the cost-sharing and royalty interest approval requirements for unit creation from 60 percent to more than 55 percent, and requires at least two nonaffiliated cost-paying persons and two royalty interest owners as voluntary parties.

Requires six-month deadline for lessees and royalty owners to sign, ratify, or approve unitization plans; if not achieved within this timeframe, the commission's order creating the unit is revoked.

Allows unit area enlargements and plan amendments without existing royalty owner approval if the commission finds the change is reasonably necessary for joint operations and prevents waste, provided new parties ratify the plan and existing owners receive 30-40 days' notice.

Specifies that if 10 percent of royalty or working interests in existing unit areas object to enlargement plans, approval then requires more than 55 percent of all royalty and working interests in both existing and proposed areas.