North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2335

Introduced
1/20/25  
Refer
1/20/25  
Report Pass
2/20/25  
Engrossed
2/24/25  
Refer
2/25/25  
Report Pass
3/21/25  
Enrolled
4/4/25  

Caption

The recovery of attorney's fees in an action relating to oil and gas production.

Impact

The bill not only introduces a process for appraisals but also amends existing legal frameworks regarding attorney's fees in compensation disputes. Specifically, it ensures that if a surface owner rejects a developer's compensation offer and subsequently receives a higher award in court, they are entitled to recover reasonable attorney's fees and associated costs. This change could potentially influence how mineral developers negotiate and settle offers with surface owners, encouraging them to resolve disputes amicably before resorting to litigation.

Summary

Senate Bill No. 2335 aims to establish a requirement for a pretrial appraisal before legal actions can be initiated to recover compensation related to oil and gas production in North Dakota. The bill mandates that any individual or entity entitled to compensation must first obtain a written appraisal valuing affected parcels before pursuing legal recourse. This is intended to ensure that both surface owners and mineral developers have a clear understanding of the property values involved in disputes over compensation for drilling operations.

Sentiment

General sentiment around SB2335 appears to be positive, as evidenced by the unanimous support reflected in the voting records from the Senate and House. Both legislative chambers voted in favor of the bill, indicating strong bipartisan agreement on the necessity of establishing clearer guidelines for compensation processes in oil and gas dealings. However, the requirement for pretrial appraisals may raise concerns among some stakeholders regarding accessibility and timeliness of the required assessments.

Contention

Notable points of contention surrounding SB2335 include discussions on the adequacy and impartiality of the appraisal process. Some critics express that the requirement for an appraisal might impose additional financial burdens on surface owners who may already be negotiating from a position of disadvantage against larger mineral corporations. Furthermore, while the provision for attorney's fees is seen as a protective measure for landowners, it raises questions about the balance of power in negotiations between individual landowners and corporations, potentially leading to further debate on equitable outcomes in the mineral rights arena.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1510

Legal fees and costs a surface owner may be awarded in cases relating to the development of minerals.

ND HB1191

Auctioneers' and clerks' licenses; and to provide an effective date.

ND HB1107

The regulation of real estate appraisers; and to provide a penalty.

ND HB1272

The jurisdiction of the industrial commission and reviewing the enhanced oil recovery potential status of a well.

ND SB2194

The abandoned oil and gas well plugging and site reclamation fund; and to provide a report.

ND HB1224

The possession of handguns and use of dogs in the recovery of big game animals.

ND SB2012

The autism voucher; to provide a statement of legislative intent; to provide for a legislative management study; to provide for a report; to provide an effective date; and to declare an emergency.

ND SB2058

The jurisdiction of commission and adding wellhead and equipment located at or on oil or gas well sites.

ND HB1014

Fuel production facility loan guarantee reserve funding, the housing incentive fund, the powers of the North Dakota pipeline authority, definitions for the clean sustainable energy authority, a clean sustainable energy authority line of credit, and an appropriation from the state fiscal recovery fund; to provide a contingent appropriation; to provide for a transfer; to provide an exemption; to provide for a study; to provide for a report; to provide a statement of legislative intent; to provide an effective date; and to declare an emergency.

ND HB1371

Agricultural definitions, ownership exceptions for beekeeping, agriculture support services, livestock backgrounding and feedlot operations, raising or producing of livestock by persons that have limited landholdings, and required reporting for corporate farming; to provide a penalty; and to declare an emergency.

Similar Bills

No similar bills found.