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

a Statement of Claim is recorded by the mineral interest owner
prior to the end of the 20 year period.
A mineral interest is “used” during the 20 year period if during the
period:
o
o
o
o
o
o
Minerals are produced.
Mineral operations are being conducted.
The mineral interest is subject to a recorded lease,
mortgage, assignment or conveyance, including a lease
given by a trustee.
The mineral interest is subject to a recorded pool or
unitization order or agreement.
Taxes are paid on the mineral interest by the owner.
A proper Statement of Claim is recorded.
However, the payment of royalties, bonus payments or other
payment to an account on behalf of someone who cannot be
located doesnot satisfy the requirements of the mineral interests
being “used.”
2. The legal action to perfect title in the surface owner after the mineral
interests are deemed abandoned is much like a quiet title action. See
N.D.C.C. § 38-18.1-06.1.
C. North Dakota Real Property –in general.
1. North Dakota property tax statements include a “true and full value.” The
County Assessor is responsible for valuing all taxable property by its
value on February 1 of each year. For residential and commercial
property, the “true and full value” is supposed to equal market value. For
agricultural property, the “true and full value” equals its productivity value
as defined by N.D.C.C. § 57-02-27.2, which is the capitalized average
annual gross return. Therefore, the “true and full” value on residential and
commercial property is fairly accurate to fair market value and, for
example, the tax statement value may be used for Medicaid valuing
purposes. However, the agricultural “true and full” value is nowhere near
fair market value, and for Medicaid valuing purposes, an appraisal is
usually required.
2. North Dakota property tax is paid in arrearage. Therefore, your 2013
property tax payment is for property tax incurred in 2012. Therefore,
Minnesota and North Dakota real property purchase agreements will
usually differ. Minnesota sales commonly prorate property taxes to date
of closing between seller and buyer. North Dakota sales commonly
dictate the seller pays all of the property tax incurred in the previous year.
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