North Dakota Century Code Title 38. Mining and Gas and Oil Production § 38-11.2-04. Damage and disruption payments--Statute of limitations

1. The mineral developer shall pay the surface owner a sum of money equal to the amount of damages sustained by the surface owner and the surface owner's tenant, if any, for loss of agricultural production and income, lost land value, lost use of and access to the surface owner's land, and lost value of improvements caused by drilling operations. The amount of damages may be determined by any formula agreeable between the surface owner and the mineral developer. When determining damages, consideration must be given to the period of time during which the loss occurs.

2. The surface owner may elect to be paid damages in annual installments over a period of time.

3. The surface owner must be compensated for harm caused by subsurface mineral exploration only by a single sum payment.

4. The payments contemplated by this section only cover land directly affected by drilling operations.

5. Payments under this section are intended to compensate the surface owner for damage and disruption. Any reservation or assignment of such compensation apart from the surface estate except to a tenant of the surface estate is prohibited. In the absence of an agreement between the surface owner and a tenant as to the division of compensation payable under this section, the tenant is entitled to recover from the surface owner that portion of the compensation attributable to the tenant's share of the damages sustained.

6. To receive compensation under this section, any person shall notify the mineral developer of the damages sustained by the person within two years after the injury occurs or would become apparent to a reasonable person.