Does the oil company determine you have met the risk penalty amount owed or is it up to the non-participating mineral rights owner to request a determination by North Dakota Oil & Gas Division? Thank you for discussing.
My understanding is that a non participating mineral owner receives the statutory royalty until 1.5x costs have been recovered by the operator, in their determination then it reverts into a working interest. I think that if you do not agree with the assessment of the risk penalty, you can bring it before the NDIC.
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Thank you. That is what our attorney has explained. Just wondering if anyone has gone through the process.