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Penalty Interest Formula in ND

Is anyone familiar with the ND law about the 150 day late penalty payment formula? Lets say $1000.00 x 18% = 180 divided by 365 days = 0.49 x 179 days late = $88.27. Is this how it is calculated?

Keywords: Interest, Penalty

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Permalink Reply by r w kennedy on July 21, 2011 at 11:05pm

Good question. I'd like my suspicions confirmed on how this is calculated.

Permalink Reply by DeeAnn Solberg on July 22, 2011 at 3:40pm

Another formula I have seen is,

Date Due - # of days owed

# of days owed/ 365x net$$ summed x 18%

This one is very confusing.

Permalink Reply by r w kennedy on July 23, 2011 at 10:52am

It may be that the NDIC O&G Division can answer the question. I searched for an hour online and couldn't find the answer to it.

Permalink Reply by Eric on July 26, 2011 at 1:04pm

A somewhat related question - when does the clock start on the 150 day time period? For example, if the NDIC O&G Division reports production began in March, would the clock start on March 1st?

Permalink Reply by r w kennedy on July 26, 2011 at 9:54pm

Eric, in ND the clock starts from date of first sales.
Eric said:

A somewhat related question - when does the clock start on the 150 day time period? For example, if the NDIC O&G Division reports production began in March, would the clock start on March 1st?

Permalink Reply by Eric on July 27, 2011 at 9:42am

Thank you r w. Is there any way to determine when the first sales were made?

Permalink Reply by r w kennedy on July 27, 2011 at 12:35pm

Eric, I believe that you can inquire with NDIC O&G Division, if you have the location legal description or the API# of the well. Detailed production numbers probably won't be available until the well is off confidential status but they ought to tell you if a sale has been made and when.

Permalink Reply by Eric on July 27, 2011 at 12:44pm

Great, thanks for the lead r w. I appreciate your help.

Permalink Reply by ardis jackson on October 26, 2011 at 3:56pm

Hi, I have solved this mystery finally. I had tried to get an answer from North Plains on this subject as my siblings and I were owed interest on a well in McKenzie county, North Dakota. We tried to get this answered for 2 weeks, FINALLY today I was told this is how to figure your interest owed. You take the amount of check that was late in payment X the amount of days late, divide that figure by 365 days (days in a yr)--then multiply that amount by .18% There is the interest amount owed you. 18% is the amount of interest owed when payment is late in North Dakota. Hope this helps

Permalink Reply by Eric on December 5, 2011 at 10:10am

Hi Ardis,

Did you have any luck getting North Plains to pay the interest due? I am due interest from Continental for four months of production and can't get them to return e-mails/phone calls. I'm wondering if I may need to get an attorney involved. Thanks in advance!