North Dakota Rule Changes Update (See article in the 2018 first quarter magazine)
Also added to Chapter 43-02-06, was Section 43-02- 06-01.1 regarding the Ownership Interest Information Statement. This new section also becomes effective July 1, 2019 and requires that: Within one hundred twenty days after the end of the month of the first sale of production from a well or change in the spacing unit of a well, the operator or payor shall provide the mineral owner with a statement identifying the spacing unit for the well (and the effective date of the spacing unit change if applicable), the net mineral acres owned by the mineral owner, the gross mineral acres in the spacing unit, and the mineral owner’s decimal interest that will be applied to the well. For a complete copy of all of the rule amendments, please See North Dakota Industrial Commission Order No. 28537, in Case No. 26062 at https://www.dmr.nd.gov/oilgas/.”
The Administrative Rules Committee approved the new rules in March 2018 and the rules that were to take effect April 1, 2018 are now in effect. The rules regarding Royalty Statements and the Ownership Interest Information Statement will become effective July 1, 2019: “Of note are the amendments made to Chapter 43-02- 06 regarding Royalty Statements, which become effective July 1, 2019. In addition to the existing requirements, the amendments to chapter 43-02-06 require that the Royalty Information Statement also include: a. The weighted average price for all oil, gas and natural gas liquids. The price must be the net price received by the producer after all deductions. b. The amount and purpose of any deduction made, identified as transportation, processing, compression, or administrative costs. c. The amount and purpose of each adjustment or correction made.
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G r o w t h T h r o u g h E d u c a t i o n - A p r i l / M a y / J u n e 2 0 1 8
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