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. Specifically, it requires individuals entitled to compensation to obtain a written appraisal from a certified appraiser for all parcels affected by drilling. 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 appraisal costs or paying the appraiser directly. The appraisal itself is inadmissible in court unless presented by the surface owner.

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 start of drilling. The amendment specifies that the interest rate awarded will be the prime rate set 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