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ND HB1520

Bill

Status

Introduced

1/18/2023

Primary Sponsor

Bert Anderson

Click for details

Origin

House of Representatives

68th Legislative Assembly

AI Summary

  • Creates Industrial Commission jurisdiction to prevent it from determining legal relationships between lessors and lessees or enforcing lease terms and division orders.

  • 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.

  • 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.

  • 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.

  • 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

Committee Referrals

Energy and Natural Resources1/18/2023

Full Bill Text

No bill text available