The commissioner of school and public lands may, upon his own motion or upon petition by an interested person assign, specific state - owned minerals to oil and gas royalty increment status. The assignment shall be made pursuant to the contested case requirements of chapter 1-26 and shall include a legal description of the state mineral lands assigned the status and a specific term, under ten years, during which the lands may be leased as on an oil and gas royalty increment status. The assignment may be made only upon a finding by the commissioner that:
(1)There has been no oil or gas production on the state - owned mineral land proposed to be assigned royalty increment status, and on private or federal minerals within the immediate area;
(2)There has been no oil or gas lease issue
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The commissioner of school and public lands may, upon his own motion or upon petition by an interested person assign, specific state - owned minerals to oil and gas royalty increment status. The assignment shall be made pursuant to the contested case requirements of chapter 1-26 and shall include a legal description of the state mineral lands assigned the status and a specific term, under ten years, during which the lands may be leased as on an oil and gas royalty increment status. The assignment may be made only upon a finding by the commissioner that: (1) There has been no oil or gas production on the state - owned mineral land proposed to be assigned royalty increment status, and on private or federal minerals within the immediate area; (2) There has been no oil or gas lease issued on the state - owned mineral land proposed to be assigned royalty increment status within the last ten years; (3) There has been no oil or gas prospecting permit issued for the state - owned mineral land proposed to be assigned royalty increment status within the last five years; (4) There has been no exploration permit for oil or gas issued by the Department of Agriculture and Natural Resources in the immediate area of the state - owned mineral land proposed to be assigned royalty increment status within the last five years; (5) The assignment of oil and gas royalty increment status to the state - owned minerals may encourage the development of oil or gas reserves on those lands; and (6) The assignment will not have a substantial impact on privately owned minerals within the immediate area surrounding the state - owned mineral land proposed to be assigned royalty increment status.