§ 38-09-15.1 — Sale of private mineral interests at public offerings for state mineral leases

North Dakota § 38-09-15.1

• Jurisdiction: North Dakota
• Title 38: Mining and Gas and Oil Production
• Ch. 38-09: Exploration and Production on Publicly Owned Lands

Text

leases.
The state or any of its departments and agencies when making a public offering for lease of
state-owned mineral interests may allow private owners of mineral interests common to the
state's mineral interests to offer their mineral interests at the public offering to be conducted by
the state. The state-owned and privately owned mineral interests must be offered separately at
the public offering. Privately owned mineral interests may only be offered when the common
state-owned mineral interest is being offered. The private mineral owners shall submit a signed
and notarized lease form to the state at the time they submit their minerals for inclusion in a
public offering together with a current title opinion for the mineral interests certified by an
attorney licensed to practice law in the state of North Dakota. The lease to be used by the

private mineral owners must be on a form prescribed by the board of university and school
lands in which the lease term, royalty rate, and rental rate are consistent with the state-owned
mineral lease term and rates. The executed lease must be submitted to the leasing agency prior
to the cutoff date for the public offering as established by the leasing agency. The private
mineral interests must be advertised in the same manner as provided for in section 38-09-15.
No bid may be accepted unless the bidder, at the time of the leasing, tenders or pays to the
leasing official an amount equal to the bonus offered for the lease. The payment must be in the
form of a thirty-day sight draft payable upon approval of title. The leasing official, in exchange for
tender of the bonus, shall deliver to the successful bidder the executed lease. The leasing
agency shall, as soon as practical after the sale, forward the thirty-day draft to the private
mineral owners. The person must agree to warrant and defend title to the mineral interest being
offered for lease before being allowed to offer the mineral interest for sale under this section.
When a person agrees to offer a mineral interest at a public offering that interest may not be
withdrawn from the offering. A person offering a mineral interest at a public offering under this
section shall agree to pay prior to sale an equitable share of the costs incurred by the state in
making that public offering. Nothing in this section may be construed or interpreted to impose
any liability or obligation upon the state or any of its departments, agencies, agents, or
employees by reason of any acts or omissions done under this section.