§ 38-17-04 — Use of sight draft - Cancellation of lease authorized

North Dakota § 38-17-04

• Jurisdiction: North Dakota
• Title 38: Mining and Gas and Oil Production
• Ch. 38-17: Coal Leasing Practices Act

Text

1. Any trust or escrow document relating to a coal lease, or any sight draft or other
negotiable or non-negotiable instrument given as full or partial consideration for a coal
lease, may authorize the first party to the document or instrument to reject the lease or
refuse to honor the draft or other instrument at the time it is due and payable because
of a bona fide failure of title.
2. Either party to a coal lease may cancel the coal lease until midnight of the fifteenth
business day after the day on which the lessor executed the coal lease. Cancellation
occurs and is effective when the party desiring to cancel sends written notice of the
cancellation of the lease to the other party by registered mail, return receipt requested,
if mailed within the specified amount of time. Notice of cancellation given by either
party is effective if it indicates that party's intention not to be bound by the lease.