38-10 Sales and Leases by Personal Representatives
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<![CDATA[CHAPTER 38-10SALES AND LEASES BY PERSONAL REPRESENTATIVES38-10-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."District court" means the district court having jurisdiction of the estate of which the<br>personal representative involved is administrator, executor, or guardian, as the case<br>may be.2."Estate" means the estate of a person who died testate or intestate and the estate of<br>a minor or of an incompetent, spendthrift, or habitual drunkard under guardianship.3."Lease for production" means any lease of property of an estate for the purpose of<br>mining or of drilling and operating for oil, including the laying of pipelines and the<br>building of tanks, power stations, and other structures upon the lands described in<br>such lease for the purpose of producing, saving, and taking care of products of the<br>mine or well.4."Personal representative" means an executor of the last will or the administrator of<br>the estate of a deceased person, or a guardian of the estate of a minor or of an<br>incompetent, spendthrift, or habitual drunkard.38-10-02. Personal representative may lease for production or sell mineral or oilrights in lands of estate. A personal representative, upon compliance with the provisions of this<br>chapter, may give a lease for production covering real property in the estate or may sell the oil,<br>gas, or minerals in or under such real property separately from the surface rights.38-10-03. Term of lease for production - Conditions and limitations in lease. Alease for production made by a personal representative may be made subject to the confirmation<br>of the district court, for a period of not more than ten years, and it may be extended thereafter as<br>long as oil or gas is produced from such land by the lessee or the lessee's assigns or the lessee<br>or the lessee's assigns are engaged in continuous drilling or reworking operations. Such a lease<br>must be made upon such terms and in consideration of such bonuses, royalties, rentals, and<br>payments as may be agreed upon except that in no case may the royalty be:1.Less than equal to a one-eighth part of all oil produced and saved from the leased<br>premises;2.Less than equal to a one-eighth part of the gross proceeds at the prevailing market<br>rate at the well for all gas used off the premises, when gas only is found on the<br>leased premises; nor3.Less than one-eighth of the gross proceeds at the prevailing market rate at the well<br>for gas, during all times that such gas is used, when gas is produced from any oil<br>well and used off the premises or for the manufacture of casinghead gasoline or dry<br>commercial gas.No lease for production is effective for a period of more than two years from its date unless<br>mining or a well is commenced on such land within such time, except that the lease may provide<br>that the lessee may pay a delay rental in an amount that may be specified in the lease. Such<br>payment operates as a rental and covers the privilege of deferring the commencement of mining<br>or of a well for one year. A lease may provide for the payment of successive delay rentals which<br>defers the commencement of mining or of a well for like successive periods. Any lease made by<br>a personal representative under the authority of this section may provide for the pooling or<br>unitization of the lease land, or any part or parts thereof, and of any mineral or royalty interest<br>therein, with land adjoining or in the vicinity of the leased land, or any mineral or royalty interest<br>therein, so as to form a unit for development and purpose of operation. Operations or productionPage No. 1on any such unitized area shall have the same effect as operations or production on the leased<br>land. The lease may provide for payment of a proportionate part of the royalties on production<br>from any such unitized area to the personal representative in lieu of the royalties provided in the<br>lease as to the area so unitized. A personal representative, upon compliance with the provisions<br>of this chapter, may also enter into agreements pooling or unitizing existing leases. Upon the<br>execution, approval, and delivery of a production lease, all persons interested in the estate are<br>bound thereby during the entire period thereof.38-10-04. Lease for production made by personal representative to be approved bycounty court - Notice - Recording. Repealed by S.L. 1973, ch. 257, </p>
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