ND SB2274

Amends North Dakota Century Code section 38-08-08 to modify risk penalty provisions for nonparticipating owners in oil and gas spacing units.

Sets risk penalty at 200 percent of drilling and completion costs (including fracking and refracking) for nonparticipating owners whose interests derive from a lease or development contract.

Sets risk penalty at 50 percent of drilling and completion costs for nonparticipating owners whose interests are not subject to a lease or development contract.

Requires the paying owner to make unsuccessful, good-faith attempts to have unleased owners execute a lease or have leased owners participate before imposing a risk penalty.

Mandates the paying owner notify the nonparticipating owner with proof of service of intent to impose a risk penalty and allow the owner to object through a petition or hearing request with the industrial commission.