Powell v. Statoil Oil & Gas

Citations

• 2023 ND 235

Syllabus

The obligation to pay royalties under an oil and gas lease is a contract contained in a conveyance or instrument affecting title to real property within the meaning of N.D.C.C. § 28-01-15(2). This ten-year statute of limitations applies to a claim for untimely payment of royalties under an oil and gas lease. If an operator fails to notify a mineral owner of a title dispute affecting the owner's distribution of royalties and fails to pay royalties within 150 days after oil or gas produced under the lease is marketed, and cancellation of the lease is not sought, the operator must pay interest on the unpaid royalties at 18% per annum until paid.