North Dakota Administrative Code
Title 43 - Industrial Commission
Article 43-02 - Mineral Exploration and Development
Chapter 43-02-06 - Royalty Statements
Section 43-02-06-01 - Royalty owner information statement

Current through Supplement No. 392, April, 2024

Whenever payment is made for oil or gas production to an interest owner, whether pursuant to a division order, lease, servitude, or other agreement, all of the following information must be included on the check stub or on an attachment to the form of payment, unless the information is otherwise provided on a regular monthly basis:

1. The lease, property, or well name or any lease, property, or well identification number used to identify the lease, property, or well; provided, that if a lease, property, or well identification number is used, the royalty owner must initially be provided the lease, property, or well name to which the lease, property, or well name refers.

2. The month and year during which sales occurred for which payment is being made.

3. One hundred percent of the corrected volume of oil, regardless of ownership, which is sold measured in barrels, and one hundred percent of the volume of either wet or dry gas, regardless of ownership, which is sold or removed from the premises for the purpose of sale, or sale of its contents and residue, measured in thousand cubic feet.

4. Price.

a. Oil. Weighted average price per barrel received by the producer for all oil sold during the period for which payment is made. The price must be the net price received by the producer after all deductions.

b. Gas and natural gas liquids. Weighted average price per thousand cubic feet [28.32 cubic meters] received by the producer for all gas sold and weighted average price per gallon received by the producer for all natural gas liquids sold during the period for which payment is made. The price must be the net price received by the producer after all deductions.

5. Total amount of state severance and other production taxes.

6. Producer's net value of total sales after taxes and deductions.

7. The amount and purpose of each owner deduction made, identified as transportation, processing, compression, or administrative costs.

8. The amount and purpose of each owner adjustment or correction made.

9. Owner's interest in sales from the lease, property, or well expressed as a decimal.

10. Owner's share of the total value of sales prior to removing any taxes. The value can be calculated before or after removing owner's deductions if it is clearly noted on the royalty statement or included on an attachment to the royalty statement.

11. Owner's share of sales value less taxes and deductions.

12. An address where additional information may be obtained and any questions answered. If information is requested by certified mail, the answer must be mailed by certified mail within thirty days of receipt of the request.

General Authority: NDCC 38-08-06.3

Law Implemented: NDCC 38-08-06.3

Disclaimer: These regulations may not be the most recent version. North Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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