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?

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.