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 drilling operations. It defines a "certified appraiser" and requires that a written appraisal be obtained for all parcels affected by drilling. The appraisal must be conducted by a certified appraiser or individuals with specific permits. Additionally, the bill stipulates that 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. If requested, the mineral developer is also required to reimburse the surface owner for reasonable appraisal costs.

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 and costs, as well as interest on the awarded compensation from the start of drilling. 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