§ 38-09-19 — Lease void if not let as provided herein - Exceptions

No lease of public land for exploration or development of oil and gas production is valid
unless advertised and let as hereinbefore provided, except:
1. Where the acreage or mineral rights owned by the state or its departments and
agencies or political subdivisions is less than the minimum drilling unit under well
spacing regulations, nonoperative oil and gas leases may be executed through private
negotiation upon the same terms as provided in section 38-09-18, except that the
state, or its departments and agencies or political subdivisions may prescribe any
period or term of such lease it deems advisable, plus a reasonable bonus payment
and a sum sufficient to pay all costs involved.
2. The state or its departments and agencies or its political subdivisions shall have power
to ratify all oil and gas leases executed by the purchaser of state lands under a
contract for deed or other land purchase contract. In such instances, if all taxes upon
the property and contract payments are current, all bonus, delayed rental or other
lease payments under such leases must be paid to the purchaser under the land
purchase contract. Where such purchaser has delinquent payments upon the land
purchase contract or where there are delinquent taxes upon the property, all
delinquent payments and taxes must be paid prior to the ratification of the oil and gas
lease upon the premises.
3. All unexpired nonoperative oil and gas leases heretofore executed by the state, or its
departments or agencies or political subdivisions are hereby ratified.