This bill introduces a new section to chapter 38-11.1 of the North Dakota Century Code, which mandates a pretrial appraisal before any legal action can be initiated to recover compensation related to oil and gas production. Specifically, it requires individuals entitled to compensation to obtain a written appraisal from a certified appraiser for all parcels affected by drilling operations. The bill stipulates that the mineral developer must receive a copy of this appraisal before a court can take jurisdiction over the case. Additionally, the mineral developer is responsible for reimbursing the surface owner for the reasonable costs of obtaining the appraisal.

Furthermore, the bill amends section 38-11.1-09, clarifying that if a person seeking compensation rejects an offer from the mineral developer and subsequently wins a greater amount in court, they are entitled to reasonable attorney's fees and costs, as well as interest on the awarded compensation from the date drilling commenced. The amendment specifies that the interest rate awarded will be the prime rate charged by the Bank of North Dakota on the judgment date.

Statutes affected:
INTRODUCED: 38-11.1-09
Prepared by the Legislative Council staff for Senator Boehm: 38-11.1-09
FIRST ENGROSSMENT: 38-11.1-09
Prepared by the Legislative Council staff for Representative Porter: 38-11.1-09
Enrollment: 38-11.1-09