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ND HB1520
Bill
Status
1/18/2023
Primary Sponsor
Bert Anderson
Click for details
AI Summary
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Creates Industrial Commission jurisdiction to prevent it from determining legal relationships between lessors and lessees or enforcing lease terms and division orders.
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Requires detailed royalty payment statements including 100% corrected volume sold, weighted average prices, taxes, deductions itemized by type (transportation, processing, compression, administrative), and owner's decimal interest.
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Prohibits royalty owners from being charged for capital costs downstream of wells, overhead, risk capital, interest charges, cost of money, or rate of return; prevents negative royalty payments with exceptions for verifiable calculation mistakes recoupable within 180 days.
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Mandates operators provide mineral owners with spacing unit information, decimal interest calculations, and recorded document references within 120 days of first production or interest changes, with $500 per day penalties plus $500 per additional month for non-compliance.
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Establishes 18% annual interest on unpaid royalties due 150 days after marketing (18% continues accruing until paid), allows prevailing royalty owners to recover attorney's fees and court costs, and provides $2,000 per day civil penalties for wrongfully withheld production records.
Legislative Description
Royalties; and to provide a penalty.
Last Action
Second reading, failed to pass, yeas 10 nays 80
2/13/2023