Probate & Trust Law Section Conference Manual ... - Minnesota CLE

I. North Dakota Real Property
A. North Dakota Mineral Interests – in general.
1. North Dakota Century Code Chapter 47-10 governs real property
transfers.
2. North Dakota Century Code § 47-10-24 provides that:
All conveyances of mineral rights or royalties in North Dakota real
property, excluding leases, are construed to convey to the grantee
ALL minerals (including compounds and by-products) of any
nature, except those specifically excluded by name, but shall not
convey interest in gravel, clay or scoria unless specifically
included.
A lease of mineral rights is construed to pass interests only in
minerals specifically named in the lease. However, oil and gas
leases include all associated hydrocarbons provided in a liquid or
gaseous form so named and are deemed to be included in the
mineral named.
3. North Dakota Century Code § 47-10-25 provides that any mineral
reservation or exception in a deed executed on or after July 1, 1983,
includes ALL minerals of any nature, except those specifically excluded
by name. Gravel, clay and scoria are transferred with the surface rights
unless specifically reserved in the deed.
4. Gas and oil production laws are at North Dakota Century Code Chapter
38-01.
5. Mineral interests are the ownership rights in title to minerals under the
surface, and the rights to reasonable use of the surface above to allow for
the exploration and production of the minerals. Mineral interests may be
created by grant or reservation.
6. Surface interests are all rights not included in the mineral interests.
7. Royalty interests may be created by grant or reservation too, but a royalty
interest does not enjoy the full right of a mineral interest because there is
no right to the use of the surface for exploration with royalty interests.
Therefore, royalty interests are just a share in the ultimate production, free
of the costs of exploration and production.
1