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CHAPTER 38-10SALES AND LEASES BY PERSONAL REPRESENTATIVES38-10-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.&quot;District court&quot; means the district court having jurisdiction of the estate of which the<br>personal representative involved is administrator, executor, or guardian, as the case<br>may be.2.&quot;Estate&quot; means the estate of a person who died testate or intestate and the estate of<br>a minor or of an incompetent, spendthrift, or habitual drunkard under guardianship.3.&quot;Lease for production&quot; means any lease of property of an estate for the purpose of<br>mining or of drilling and operating for oil, including the laying of pipelines and the<br>building of tanks, power stations, and other structures upon the lands described in<br>such lease for the purpose of producing, saving, and taking care of products of the<br>mine or well.4.&quot;Personal representative&quot; means an executor of the last will or the administrator of<br>the estate of a deceased person, or a guardian of the estate of a minor or of an<br>incompetent, spendthrift, or habitual drunkard.38-10-02. Personal representative may lease for production or sell mineral or oilrights in lands of estate. A personal representative, upon compliance with the provisions of this<br>chapter, may give a lease for production covering real property in the estate or may sell the oil,<br>gas, or minerals in or under such real property separately from the surface rights.38-10-03. Term of lease for production - Conditions and limitations in lease. Alease for production made by a personal representative may be made subject to the confirmation<br>of the district court, for a period of not more than ten years, and it may be extended thereafter as<br>long as oil or gas is produced from such land by the lessee or the lessee's assigns or the lessee<br>or the lessee's assigns are engaged in continuous drilling or reworking operations. Such a lease<br>must be made upon such terms and in consideration of such bonuses, royalties, rentals, and<br>payments as may be agreed upon except that in no case may the royalty be:1.Less than equal to a one-eighth part of all oil produced and saved from the leased<br>premises;2.Less than equal to a one-eighth part of the gross proceeds at the prevailing market<br>rate at the well for all gas used off the premises, when gas only is found on the<br>leased premises; nor3.Less than one-eighth of the gross proceeds at the prevailing market rate at the well<br>for gas, during all times that such gas is used, when gas is produced from any oil<br>well and used off the premises or for the manufacture of casinghead gasoline or dry<br>commercial gas.No lease for production is effective for a period of more than two years from its date unless<br>mining or a well is commenced on such land within such time, except that the lease may provide<br>that the lessee may pay a delay rental in an amount that may be specified in the lease. Such<br>payment operates as a rental and covers the privilege of deferring the commencement of mining<br>or of a well for one year. A lease may provide for the payment of successive delay rentals which<br>defers the commencement of mining or of a well for like successive periods. Any lease made by<br>a personal representative under the authority of this section may provide for the pooling or<br>unitization of the lease land, or any part or parts thereof, and of any mineral or royalty interest<br>therein, with land adjoining or in the vicinity of the leased land, or any mineral or royalty interest<br>therein, so as to form a unit for development and purpose of operation. Operations or productionPage No. 1on any such unitized area shall have the same effect as operations or production on the leased<br>land. The lease may provide for payment of a proportionate part of the royalties on production<br>from any such unitized area to the personal representative in lieu of the royalties provided in the<br>lease as to the area so unitized. A personal representative, upon compliance with the provisions<br>of this chapter, may also enter into agreements pooling or unitizing existing leases. Upon the<br>execution, approval, and delivery of a production lease, all persons interested in the estate are<br>bound thereby during the entire period thereof.38-10-04. Lease for production made by personal representative to be approved bycounty court - Notice - Recording. Repealed by S.L. 1973, ch. 257,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of <!-- -->Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of <!-- -->Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of <!-- -->Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of <!-- -->Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of <!-- -->California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of <!-- -->Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of <!-- -->Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of <!-- 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t38/pdf/t38c10.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 38-10SALES AND LEASES BY PERSONAL REPRESENTATIVES38-10-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.\u0026quot;District court\u0026quot; means the district court having jurisdiction of the estate of which the\u003cbr\u003epersonal representative involved is administrator, executor, or guardian, as the case\u003cbr\u003emay be.2.\u0026quot;Estate\u0026quot; means the estate of a person who died testate or intestate and the estate of\u003cbr\u003ea minor or of an incompetent, spendthrift, or habitual drunkard under guardianship.3.\u0026quot;Lease for production\u0026quot; means any lease of property of an estate for the purpose of\u003cbr\u003emining or of drilling and operating for oil, including the laying of pipelines and the\u003cbr\u003ebuilding of tanks, power stations, and other structures upon the lands described in\u003cbr\u003esuch lease for the purpose of producing, saving, and taking care of products of the\u003cbr\u003emine or well.4.\u0026quot;Personal representative\u0026quot; means an executor of the last will or the administrator of\u003cbr\u003ethe estate of a deceased person, or a guardian of the estate of a minor or of an\u003cbr\u003eincompetent, spendthrift, or habitual drunkard.38-10-02. Personal representative may lease for production or sell mineral or oilrights in lands of estate. A personal representative, upon compliance with the provisions of this\u003cbr\u003echapter, may give a lease for production covering real property in the estate or may sell the oil,\u003cbr\u003egas, or minerals in or under such real property separately from the surface rights.38-10-03. Term of lease for production - Conditions and limitations in lease. Alease for production made by a personal representative may be made subject to the confirmation\u003cbr\u003eof the district court, for a period of not more than ten years, and it may be extended thereafter as\u003cbr\u003elong as oil or gas is produced from such land by the lessee or the lessee's assigns or the lessee\u003cbr\u003eor the lessee's assigns are engaged in continuous drilling or reworking operations. Such a lease\u003cbr\u003emust be made upon such terms and in consideration of such bonuses, royalties, rentals, and\u003cbr\u003epayments as may be agreed upon except that in no case may the royalty be:1.Less than equal to a one-eighth part of all oil produced and saved from the leased\u003cbr\u003epremises;2.Less than equal to a one-eighth part of the gross proceeds at the prevailing market\u003cbr\u003erate at the well for all gas used off the premises, when gas only is found on the\u003cbr\u003eleased premises; nor3.Less than one-eighth of the gross proceeds at the prevailing market rate at the well\u003cbr\u003efor gas, during all times that such gas is used, when gas is produced from any oil\u003cbr\u003ewell and used off the premises or for the manufacture of casinghead gasoline or dry\u003cbr\u003ecommercial gas.No lease for production is effective for a period of more than two years from its date unless\u003cbr\u003emining or a well is commenced on such land within such time, except that the lease may provide\u003cbr\u003ethat the lessee may pay a delay rental in an amount that may be specified in the lease. Such\u003cbr\u003epayment operates as a rental and covers the privilege of deferring the commencement of mining\u003cbr\u003eor of a well for one year. A lease may provide for the payment of successive delay rentals which\u003cbr\u003edefers the commencement of mining or of a well for like successive periods. Any lease made by\u003cbr\u003ea personal representative under the authority of this section may provide for the pooling or\u003cbr\u003eunitization of the lease land, or any part or parts thereof, and of any mineral or royalty interest\u003cbr\u003etherein, with land adjoining or in the vicinity of the leased land, or any mineral or royalty interest\u003cbr\u003etherein, so as to form a unit for development and purpose of operation. Operations or productionPage No. 1on any such unitized area shall have the same effect as operations or production on the leased\u003cbr\u003eland. The lease may provide for payment of a proportionate part of the royalties on production\u003cbr\u003efrom any such unitized area to the personal representative in lieu of the royalties provided in the\u003cbr\u003elease as to the area so unitized. A personal representative, upon compliance with the provisions\u003cbr\u003eof this chapter, may also enter into agreements pooling or unitizing existing leases. Upon the\u003cbr\u003eexecution, approval, and delivery of a production lease, all persons interested in the estate are\u003cbr\u003ebound thereby during the entire period thereof.38-10-04. Lease for production made by personal representative to be approved bycounty court - Notice - Recording. Repealed by S.L. 1973, ch. 257,"])</script><script>self.__next_f.push([1,"3c:[\"$\",\"article\",null,{\"className\":\"article-content\",\"children\":[[\"$\",\"header\",null,{\"className\":\"article-header\",\"children\":[[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"className\":\"article-category\",\"children\":[\"North Dakota\",\" Statutes\"]}],[\"$\",\"h1\",null,{\"className\":\"article-title\",\"children\":\"38-10 Sales and Leases by Personal Representatives\"}]]}],[\"$\",\"div\",null,{\"className\":\"article-body statute-content\",\"dangerouslySetInnerHTML\":{\"__html\":\"$3e\"}}],false]}]\n"])</script><script>self.__next_f.push([1,"3d:[\"$\",\"aside\",null,{\"className\":\"right-sidebar\",\"children\":[\"$\",\"div\",null,{\"className\":\"related-sidebar\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"⚖️\"}],\" State 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