This text of North Dakota § 47-16-39.2 (Inspection of production and royalty payment records - Penalty) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.A royalty owner, a royalty owner's assignee, or a designated representative, upon
written notice, is entitled to inspect and copy the oil and gas production and royalty
payment records for the lease of the person obligated to pay royalties under the lease
or division order. The person obligated to pay royalties under the lease shall make that
person's oil and gas royalty payment and production records available for inspection
and copying at that person's usual and customary place of business within the United
States. A royalty owner may bring an action to compel the person obligated to pay
royalties to allow inspection and copying of oil and gas production royalty payment
records. In order for the royalty owner to prevail in such an action, the royalty owner
must establish that:
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1. A royalty owner, a royalty owner's assignee, or a designated representative, upon
written notice, is entitled to inspect and copy the oil and gas production and royalty
payment records for the lease of the person obligated to pay royalties under the lease
or division order. The person obligated to pay royalties under the lease shall make that
person's oil and gas royalty payment and production records available for inspection
and copying at that person's usual and customary place of business within the United
States. A royalty owner may bring an action to compel the person obligated to pay
royalties to allow inspection and copying of oil and gas production royalty payment
records. In order for the royalty owner to prevail in such an action, the royalty owner
must establish that:
a. The royalty owner or the royalty owner's assignee complied with notice
requirements of this section;
b. The notice specified the lease involved, the time period under review and the
records requested;
c. The royalty owner notified the person obligated to pay royalties at the address
printed on the information statement as prescribed by rules adopted by the
industrial commission pursuant to section 38-08-06.3; and
d. The person obligated to pay royalties denied inspection of the records or failed to
respond within thirty days of service of notice.
2. The district court for the county in which the oil or gas well is located has jurisdiction
over all proceedings brought pursuant to this section. If the royalty owner or the royalty
owner's assignee is successful in any proceeding brought pursuant to this section, the
district court shall allow the royalty owner or the royalty owner's assignee to recover
court costs; reasonable costs, fees, disbursements, and expenses incurred by the
royalty owner or the royalty owner's assignee or a designated representative in
inspecting and copying the oil and gas production and royalty payment records of the
person obligated to pay royalties under the lease; and reasonable attorney's fees.
3. If a royalty owner, a royalty owner's assignee, or a designated representative is the
board of university and school lands:
a. The records in subsection 1 must be sent electronically, or in a manner
acceptable to the board, to a location designated by the board.
b. Notwithstanding subsection 2, at the discretion of the board, a proceeding
brought under this section may be brought in the district court of Burleigh County
or in the county in which the oil or gas well is located.
4. If the board of university and school lands is successful in any proceeding brought
under this section, the district court shall allow the board to recover court costs;
reasonable costs, fees, disbursements, and expenses incurred by the board in
inspecting the copying the oil and gas production and royalty payment records of the
person obligated to pay royalties under the lease; and reasonable attorney's fees.
a. The district court also shall assess a civil penalty of two thousand dollars per day
for each day the person obligated to pay royalties under the lease failed to send
the oil and gas royalty payment and production records to the board in
accordance with subsection 1.
b. The civil penalty under subdivision a ceases to accrue on the date the
proceedings are initiated under subsection 1.