N.D. Admin. Code 43-02-02.3-21

Current through Supplement No. 395, January, 2025

Section 43-02-02.3-21 - Revocation and limitation of permits

1. After notice and hearing, the commission may revoke a mining permit or limit its duration. The commission may act upon its own motion or upon the application of an owner in the permit area. In deciding whether to revoke or limit a permit, the factors that the commission may consider include:

a. The technical ability of the operator and other owners to conduct mining operations.

b. The experience of the operator and other owners in similar mining operations.

c. Contractual obligations, such as an expiring lease.

d. The amount of ownership the operator and other owners hold in the lease. If the operator is the majority owner or if its interest when combined with that of its supporters is a majority of the ownership, it is presumed that the operator should retain the permit. The presumption, even if not rebutted, does not prohibit the commission from limiting the duration of the permit. However, if the amount of the interest owned by the owner seeking revocation or limitation and its supporters are a majority of the ownership, the commission will presume that the permit should be revoked.

2. The commission may suspend a permit that is the subject of a revocation or limitation proceeding. A permit will not be suspended or revoked after operations have commenced.

3. If the commission revokes a permit upon the application of an owner and issues a permit to that owner or to another owner who supported revocation, the commission may limit the duration of such permit. The commission may also, if the parties fail to agree, order the owner acquiring the permit to pay reasonable costs incurred by the former operator and the conditions under which payment is to be made. The costs for which reimbursement may be ordered may include those involving survey of the well site, title search of surface and mineral title, and preparation of an opinion of mineral ownership.

4. If the commission declines to revoke a permit or limit the time within which it must be exercised, it may include a term in its order restricting the ability of the operator to renew the permit or to acquire another permit within the same spacing or drilling unit.

N.D. Admin Code 43-02-02.3-21

Effective July 1, 2013.

General Authority: NDCC 38-12-02

Law Implemented: NDCC 38-12-02