Is anyone familiar with the ND law about the 150 day late penalty payment formula? Let’s say $1000.00 x 18% = 180 divided by 365 days = 0.49 x 179 days late = $88.27. Is this how it is calculated?
Good question. I’d like my suspicions confirmed on how this is calculated.
Another formula I have seen is, Date Due - # of days owed
of days owed/ 365x net$$ summed x 18%
This one is very confusing.
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.
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?
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?
Thank you r w. Is there any way to determine when the first sales were made?
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.
Great, thanks for the lead r w. I appreciate your help.
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 times the amount of days late, divide that figure by 365 days (days in a year), then multiply that amount by 0.18%. There is the interest amount owed to you. 18% is the amount of interest owed when payment is late in North Dakota. Hope this helps.
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!