ND HB1080

Changes oil lease royalty minimum from "shall be" to "may not be less than" 12.5% of gross oil output, allowing flexibility for stripper wells and secondary/tertiary recovery projects.

Establishes 3/4 of 1% monthly interest (not to exceed 9% annually) on unpaid oil and gas royalties owed to the board of university and school lands, with commissioner authority to waive interest for good cause.

Imposes 1/2 of 1% monthly penalty (not to exceed 6% annually) if lessees fail to respond within 90 days to written underpayment notices or refuse to file amended royalty statements.

Allows lessees to tender full disputed payment under protest to stop interest and penalty accrual, with refund plus interest at section 28-20-34 rate if overpayment is determined.

Limits board actions to cancel leases or recover unpaid royalties and penalties to within seven years of production, with no actions allowed for production occurring before August 1, 2013.