North Dakota Administrative Code › Title 85 - University and School Lands, Board of › Article 85-06 - Minerals Management › Chapter 85-06-01 - Oil and Gas › Section 85-06-01-06 - Assignment, amendment, or extension

Current through Supplement No. 393, July, 2024
A lessee shall submit a written request to the department for
				  an assignment, amendment, or extension of an oil and gas lease, or a portion of
				  the oil and gas leased premises, utilizing the form available on the
				  department's website. A request must include any documents requested by the
				  department. The lessee shall submit a fee, in an amount set by the board, to
				  the department with the request.
1.
				Assignments. All oil and gas lease obligations must be current at the time the
				assignment is approved. The lessee remains bound by the terms and conditions of
				the oil and gas lease, board rules and policies, and applicable laws until the
				assignment is approved by the department. Upon approval of the assignment, the
				assignee is bound by all the terms and conditions of the oil and gas lease,
				board rules and policies, and applicable laws. The assignor shall provide the
				department with a copy of the fully executed assignment within thirty days from
				the approval.
2. Extensions. If, at
				the expiration of the primary term, production of oil or gas or both has not
				been obtained in commercial quantities on the leased premises but drilling,
				testing, completion, recompletion, reworking, deepening, plugging back, or
				repairing operations are being conducted thereon in good faith, the lessee may,
				on or before the expiration of the primary term, file a written application
				with the department for a one hundred eighty day extension of this oil and gas
				lease, such application to be accompanied by a payment of ten dollars per acre,
				and the commissioner, in writing, shall extend this oil and gas lease for a
				period of one hundred eighty days beyond the expiration of the primary term and
				as long as oil or gas or both is produced in commercial quantities; the lessee
				may, as long as such drilling, testing, or completion operations are being
				conducted in good faith, make written application to the commissioner, on or
				before the expiration of the initial extended period of one hundred eighty days
				for an additional extension of one hundred eighty days, such application to be
				accompanied by a payment of twenty dollars per acre, and the commissioner, in
				writing, shall extend this oil and gas lease for an additional one hundred
				eighty day period from and after the expiration of the initial extended period
				of one hundred eighty days, and as long as oil or gas or both is produced in
				commercial quantities; this oil and gas lease must not be extended for more
				than a total of three hundred sixty days from and after the expiration of the
				primary term unless production in commercial quantities has been obtained or
				unless extended by some other provision hereof.
3. Amendments. A lessee may request an
				amendment to an oil and gas lease for a specific purpose. A request for an
				amendment must state the specific grounds for the request. Approval of a
				request is at the discretion of the commissioner and the department shall
				notify the lessee in writing whether or not the request is approved.
General Authority:
NDCC 15-05-09, 15-07-20,
					 15-08.1-06, 61-33-06
Law Implemented:
NDCC 15-05-09,
					 15-05-15