The proposed 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, individuals entitled to compensation must obtain a written appraisal valuing all parcels affected by drilling operations, conducted by a certified appraiser or individuals with specific permits. The bill also stipulates that before a court can take jurisdiction over such actions, the person seeking compensation must provide a copy of the appraisal to the mineral developer, who then has 30 days to make a new settlement offer based on the appraisal. Additionally, the mineral developer is required to reimburse the reasonable costs of the appraisal incurred by the surface owner.

Furthermore, the bill amends section 38-11.1-09, clarifying that if a person seeking compensation rejects the mineral developer's offer and subsequently wins a greater amount in court, they are entitled to reasonable attorney's fees, costs, and interest on the awarded compensation. The interest rate is specified as the prime rate charged by the Bank of North Dakota at the time of judgment. This amendment aims to ensure that individuals who pursue legal action are fairly compensated for their legal expenses when they receive a favorable judgment.

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