South Dakota § 7-31-39 Royalty agreements required in oil and gas leases.

South Dakota Statutes

§ 7-31-39 — Royalty agreements required in oil and gas leases.

South Dakota § 7-31-39

Title 7COUNTIES

Ch. 7-31MANAGEMENT OF TAX DEED AND SCHOOL FUND MORTGAGE LANDS

This text of South Dakota § 7-31-39 (Royalty agreements required in oil and gas leases.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 7-31-39 (2026).

Text

All such leases as described in § 7-31-38 shall provide for the delivery to the said county in the pipeline to which said lessee may connect the wells, of a royalty of one - eighth of the oil or gas produced, saved, and marketed from the leased lands, or the equivalent proportion of the market value of such oil and gas in the field at the time of production, at the option of the said board of county commissioners; provided, however, no royalty shall be payable from oil or gas used in operations on the land for the development of oil or gas therefrom. Provided, further, that of the oil or gas so used, the same shall be in the proportion of seven - eighths belonging to the lessee or assigns, and one - eighth which but for such use would be delivered to the said county lessor.

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All such leases as described in § 7-31-38 shall provide for the delivery to the said county in the pipeline to which said lessee may connect the wells, of a royalty of one - eighth of the oil or gas produced, saved, and marketed from the leased lands, or the equivalent proportion of the market value of such oil and gas in the field at the time of production, at the option of the said board of county commissioners; provided, however, no royalty shall be payable from oil or gas used in operations on the land for the development of oil or gas therefrom. Provided, further, that of the oil or gas so used, the same shall be in the proportion of seven - eighths belonging to the lessee or assigns, and one - eighth which but for such use would be delivered to the said county lessor.