N.D. Admin. Code 85-06-01-03

Current through Supplement No. 394, October, 2024

Section 85-06-01-03 - Public auction

The board may issue an oil and gas lease by public auction. Public auctions may be hosted either live or online at the discretion of the commissioner. Bidding is based on a bonus of not less than one dollar per acre, and an annual delay rental of not less than one dollar per acre per year based on the acreage shown in the records of the department at the time the oil and gas lease is issued.

1. The successful bidder at an auction shall pay the bonus, the rental payments for the primary term as defined by the oil and gas lease, the advertising fee, the lease auction administration fee, and any processing fees via automated clearing house or wire transfer, by five p.m. central prevailing time, ten days after the date the auction closed.

2. If no bids are received, the nominator is the successful bidder.

3. The board may not issue an oil and gas lease until receipt of the bonus, rental payments, and fees.

N.D. Admin Code 85-06-01-03

Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.

Amended by Administrative Rules Supplement 2024-392, April 2024, effective 4/1/2024.

General Authority: NDCC 15-05-09, 15-07-20, 15-08.1-06, 61-33-06

Law Implemented: N.D. Constitution article IX, § 5; NDCC 15-01-02, 15-02-05, 15-05-09, 15-05-10