Frequently Asked Questions

Yes, our leases have a primary term of 5 years. Additionally, before the end of the primary term a lessee may submit an Extension Form if production has not occurred but drilling operations have begun. A request for the first extension must include a $10.00/acre payment and the rate for the second request is $20.00/acre. Each extension could extend the primary term and additional 180 days (360 cumulative).

It is mandatory that an Assignment Form from our website be submitted to the DTL along with a $10.00 payment per each North Dakota State lease. Assignments are subject to approval by the Commissioner of University and School Lands.

Lands granted at statehood covering the beds of navigable lakes and rivers within the State.

The Rules are formal policies approved by the Board of University and School Lands. The rules are effective on the date adopted and are not retroactive. The statutory authority is 38-09-20.

During the life of the lease there are bonus and delay rentals. There may also be payments for extension of the primary term, royalty payments should the lease become producing and shut-in payments depending upon the circumstances.

The leases issued by the Department of Trust Lands may be pooled into spacing units. As a result of leases being pooled, “… production of pooled substances shall be allocated to the separate tracts in the proportion that the number of surface acres in each tract bears to the total number of surface acres comprising said unit …”.

Lease bonuses are on a per-acre basis. A bid of $1,000 for a 40 acre tract requires a total bonus payment of $40,000. Bids for bonus are accepted through oral auction four times a year.

Go to the Minerals Management page, Oil and Gas Leasing and go to Search Oil and Gas Lease Status by Legal Description. Enter the Township and Range of the area of interest. If a tract is available for nomination, there will be an “Available” in the Nominate column. To nominate multiple tracts, simply check off all of the tracts before you select the Nominate button.


1707 North 9th Street | PO Box 5523 | Bismarck, ND 58506-5523 | Telephone: (701)328-2800 | Fax: (701)328-3650

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