Section 85-06-01-09 - Disputed title royalty escrow accountAny payor that proposes to withhold royalty payments based upon an ownership dispute shall establish an escrow deposit account and shall deposit the disputed payments into this account.
1. The account must be established at the Bank of North Dakota, or other state or national chartered insured financial institution approved by the commissioner, with the board as a party to the escrow agreement.2. Prior to a final resolution of the dispute, a partial release of the disputed payments may be made upon written approval by the commissioner and the payor. Upon approval, the disputed payments must be distributed back to the payor for proper distribution to the rightful owner.3. Upon final resolution of the ownership dispute, and with consent of the commissioner, the escrow agent is authorized to release all disputed payments held in the account to the payor for proper distribution to the rightful owner. The board is entitled to any interest income earned on the account attributable to North Dakota's ownership interest.4. This section applies to matters where the amount of the disputed payments is twenty-five thousand dollars or more over a twelve-month period. The commissioner and the payor may agree this section applies to oil and gas leases executed prior to the effective date of this section.N.D. Admin Code 85-06-01-09
Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.General Authority: NDCC 15-05-09, 15-05-10, 15-07-20, 15-08.1-06, 61-33-06
Law Implemented: NDCC 15-05-09, 15-05-10