The Editors:
The current operator-friendly scheme is subject to debate because the cases interpreting the Suspense Statute have only been considered at the federal trial court level. They are thus of little precedential value. As the SunBehm Gas court noted, there is still no North Dakota Supreme Court case specifically addressing the application of the Suspense Statute to overriding royalty interests and/or working interests. Until the Supreme Court steps in or the legislature amends the Suspense Statute, these federal trial court cases are the sole authority on the matter. One current concern is that the SunBehm Gas line of cases could lead to a form of legal forum shopping to influence an outcome. It would behoove an operator sued for late overriding royalty or working interest payments to remove the lawsuit to federal district court as long as the court remains committed to its narrow interpretation of the Suspense Statute. Next time a similar case does land in the federal courts, perhaps a certified question to the North Dakota Supreme Court would be appropriate. State courts may find that there is some merit to the “tortured construction” that executing a lease “assigns” a mineral owner’s developmental rights to the lessee, and any carveout from that point forward could fall within the definition of a “mineral owner’s assignee.” What is evident for now is that the phrase “mineral owner’s assignee” in the Suspense Statute is ambiguous at best and will ultimately require Supreme Court or legislative clarification. In the meantime, Sunbehm Gas and its federal progeny support the argument that the slightly unusual phrasing of “mineral owner and mineral owner’s assignee” in the North Dakota Suspense Statute limits the recovery of statutory interest to mineral royalty (and nonparticipating royalty) owners only. When it comes to statutory interest, suspended overriding royalty and working interest owners may continue to be subjugated to the whims of the operators – the Kings in the North!
Rohit Raghavan Senior Attorney, Oliva Gibbs
rraghavan@oglawyers.com 773/960-4997
Rohit provides strategic legal counsel to oil and gas companies, focusing on mineral title, exploration, and production across the Williston, Uinta, and Permian Basins. He has experience navigating BLM regulations, litigating mining claims, and advising clients through federal investigations. Rohit has also represented corporate and municipal clients in complex litigation and negotiations involving procurement, real estate, insurance, and commercial contracts. Education • J.D., University of Illinois College of Law • B.A. in International Finance and Economics, The Catholic University of America Bar Admissions • Illinois • New York • Utah
Brad McCamy Senior Attorney, Oliva Gibbs
bmccamy@oglawyers.com 701/581-5447
Brad has over 12 years of experience preparing title opinions across North Dakota, with additional work in Montana, Colorado, and Texas. He advises on complex mineral title issues involving federal, state, tribal, and private ownership, as well as renewable energy projects and carbon sequestration facilities. Brad also counsels clients on curative title work, dormant mineral claims, and acquisitions involving Native American trust lands. Education • J.D., The University of North Dakota School of Law • B.S., Bachelor of Science, North Dakota State University Bar Admissions
• Colorado • Montana • North Dakota • Texas
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G rowth T hrough E ducat i on - A pr i l / M ay / J une 2025
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