Section 38-09-19 - Lease void if not let as provided herein - ExceptionsNo lease of public land for exploration or development of oil and gas production is valid unless advertised and let as hereinbefore provided, except:
1. Where the acreage or mineral rights owned by the state or its departments and agencies or political subdivisions is less than the minimum drilling unit under well spacing regulations, nonoperative oil and gas leases may be executed through private negotiation upon the same terms as provided in section 38-09-18, except that the state, or its departments and agencies or political subdivisions may prescribe any period or term of such lease it deems advisable, plus a reasonable bonus payment and a sum sufficient to pay all costs involved.2. The state or its departments and agencies or its political subdivisions shall have power to ratify all oil and gas leases executed by the purchaser of state lands under a contract for deed or other land purchase contract. In such instances, if all taxes upon the property and contract payments are current, all bonus, delayed rental or other lease payments under such leases must be paid to the purchaser under the land purchase contract. Where such purchaser has delinquent payments upon the land purchase contract or where there are delinquent taxes upon the property, all delinquent payments and taxes must be paid prior to the ratification of the oil and gas lease upon the premises.3. All unexpired nonoperative oil and gas leases heretofore executed by the state, or its departments or agencies or political subdivisions are hereby ratified.