North Dakota bill aims to reduce oil dispute litigation

An attorney in North Dakota, Derrick Braaten, is working with oil company Continental Resources to create a new bill. The aim is to reduce the number of court battles over compensation for land used for oil wells. Currently, landowners often dispute the amount they receive for damages caused by these developments. The proposed Senate Bill 2335 introduces a mediation step for negotiations between landowners and oil developers. Both sides support this bill, including the North Dakota Petroleum Council and the Northwest Landowners Association. Braaten argues that lawsuits mainly benefit lawyers and that both landowners and developers would fare better through private agreements. If a landowner rejects a developer's compensation offer, they can appoint an appraiser to assess the land's value. The developer covers the cost of the appraisal and must make a new offer within 30 days based on its findings. This process is designed to provide a fair starting point for negotiations. William Hauser, a lawyer for Continental Resources, emphasized that understanding the property's value is essential for both parties. Although the appraisal cannot be used in court if an agreement cannot be reached, it aims to facilitate better communication and agreement. Ron Ness, president of the North Dakota Petroleum Council, observed that negotiations often stall after initial offers, leaving landowners frustrated. The bill, which received unanimous support in the Senate, is seen as a positive compromise. Two other related bills are also under consideration. One would require companies to reimburse landowners for legal fees if projects are abandoned. Another bill, amended recently, requires developers to provide written notice before surveying land, addressing concerns about potential delays and costs.