2016 North Dakota Century Code Title 38 Mining and Gas and Oil Production Chapter 38-12 Regulation, Development, and Production of Subsurface Minerals
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CHAPTER 38-12
REGULATION, DEVELOPMENT, AND PRODUCTION OF
SUBSURFACE MINERALS
38-12-01. Definitions.
As used in this chapter, unless the context otherwise requires:
1. "Commission" means the industrial commission of the state of North Dakota.
2. "Extraction facility" means any well or mine or other extractive process operated for
the purpose of recovering subsurface minerals.
3. "Operator" means any person who, duly authorized, is in charge of the development of
a lease or the operation of a producing property.
4. "Owner" means the person who has the right to explore for, develop, and produce
subsurface minerals and to appropriate the subsurface minerals the owner produces
either for the owner or for the owner and others.
5. "Person" means and includes any natural person, corporation, limited liability
company, association, partnership, receiver, trustee, executor, administrator, guardian,
fiduciary, or other representative of any kind, and includes any department, agency, or
instrumentality of the state or of any governmental subdivision thereof; the masculine
gender, in referring to a person, includes the feminine and the neuter genders.
6. "Producer" means the owner of an extraction facility which is or has been capable of
producing subsurface minerals.
7. "Subsurface minerals" means all naturally occurring elements and their compounds,
volcanic ash, precious metals, carbonates, and natural mineral salts of boron,
bromine, calcium, fluorine, iodine, lithium, magnesium, phosphorus, potassium,
sodium, thorium, uranium, and sulfur, and their compounds, but does not include sand
and gravel and rocks crushed for sand and gravel.
38-12-02. Jurisdiction of commission.
The commission has jurisdiction and authority over all persons and property, public and
private, necessary to enforce effectively the provisions of this chapter. Subject to the provisions
of section 38-08-21, the director of mineral resources shall act as a supervisor charged with the
duty of enforcing the regulations and orders of the commission applicable to the subsurface
mineral resources of this state and the provisions of this chapter. The commission has authority
to make such investigations as it deems proper to determine whether facts exist which justify
action by the commission. The commission acting through the director of mineral resources has
the authority:
1. To require:
a. The furnishing of a reasonable bond with good and sufficient surety, conditioned
upon the full compliance with the provisions of this chapter, and the rules and
orders of the commission prescribed to govern the exploration, development, and
production of subsurface minerals on state and private lands within the state of
North Dakota. The person required to furnish the bond may elect to deposit a
collateral bond, self-bond, cash, or any alternative form of security approved by
the commission, or combination thereof, by which a permittee assures faithful
performance of all requirements of this chapter and the rules and orders of the
industrial commission.
b. The delivery, free of charge, to the state geologist of the basic exploration data
collected by the operator, within thirty days of field collection of such data. This
data must include:
(1) Sample cuts, core chips, or whole cores.
(2) Sample logs, radioactivity logs, resistivity logs, or other types of electrical or
mechanical logs.
(3) Elevation and location information on the data collection points.
(4) Other pertinent information as may be requested by the state geologist.
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The data so submitted is confidential for a period of one year when so requested
by the operator and such period may be further extended upon approval by the
commission.
c. The filing of monthly production reports in the manner prescribed by the
commission and any other reports deemed necessary by the commission.
d. The conducting of all exploration, development, and production operations in
such a manner as to prevent pollution of freshwater supplies, to provide for the
protection of the environment and public safety, and to ensure the optimum
recovery of the mineral resource.
e. The reclamation of all land disturbed by operations regulated by this chapter to a
condition consistent with prior land use and productive capacity.
To regulate the drilling and abandonment of exploration test holes and producing wells
and all other exploration, development, production, and reclamation operations.
To promulgate and to enforce rules, regulations, and orders to effectuate the purposes
and the intent of this chapter.
To inspect all exploration, development, and production sites. For the purposes of this
subsection, the director of mineral resources or the director's representative shall have
access to all exploration, development, or production installations for purposes of
inspection and shall have the authority to require the operator's aid if it is necessary
and is requested.
38-12-03. Permit required.
It is unlawful to commence operations for the exploration, development, or production of
subsurface minerals without first obtaining a permit from the director of mineral resources, under
such rules and regulations as may be prescribed by the commission and paying to the
commission a fee for each such permit in an amount to be prescribed by the commission.
38-12-04. Procedure.
The administrative procedure involved in the adopting of any rules or regulations or the
issuance of any orders by the commission under the provisions of this chapter must be in
accordance with the provisions of chapter 38-08 governing the procedure in the administration
of the Oil and Gas Conservation Act; provided, however, that in the event an emergency is
found to exist by the commission which in its judgment requires the making, revoking, changing,
amending, modifying, altering, enlarging, renewal, or extension of a rule, regulation, or order
without first having a hearing, such emergency rule, regulation, or order has the same validity as
if a hearing with respect to the same had been held after due notice. The emergency rule,
regulation, or order permitted by this section may remain in force no longer than fifteen days
from its effective date, and in any event, it expires when the rule, regulation, or order made after
due notice and hearing with respect to the subject matter of such emergency rule, regulation, or
order becomes effective.
38-12-05. Penalty - Injunction - Provisions applicable.
The provisions of sections 38-08-16 and 38-08-17 are applicable to the provisions of this
chapter and to the rules, regulations, and orders of the commission promulgated hereunder.
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