AGO 81-067.

• Case Date: July 06, 1981
• Court: North Dakota

North Dakota Attorney General Opinions 1981. AGO 81-067. OPINION 81-67Date Issued: July 6, 1981 (AGO 81-67) Requested by: Representative Jack Murphy- QUESTION PRESENTED - Whether the duty of an oil and gas lease operator to pay interest on unpaid royalties commences on July 1, 1981, for royalties on oil and gas marketed at least 150 days prior to that date.- ATTORNEY GENERAL'S OPINION - It is my opinion that the duty of an oil and gas operator to pay interest on unpaid royalties will commence on July 1, 1981, for royalties on oil and gas marketed at least 150 days prior to that date. - ANALYSIS - Section 47-16-39.1 of the North Dakota Century Code was amended during the 1981 Legislative Assembly by the addition of language which reads, in part, as follows:

In the event the operator under an oil and gas lease fails to pay oil or gas royalties to the mineral owner or his assignee within one hundred fifty days after oil or gas produced under the lease is marketed and cancellation of the lease is not sought, the unpaid royalties shall thereafter bear interest at the rate of eighteen percent per annum until paid.

As we understand the question, it is whether the duty to pay interest on royalties begins on July 1, 1981, if the necessary 1 50-day period has run prior to that date, or whether an additional 150-day period is to be allowed after the effective date of the amendment before the duty to pay interest commences. Section 1-02-1 0, N.D.C.C., states:

No part of this code is retroactive unless it is expressly declared to be so.

The North Dakota Supreme Court has said on several occasions that a legislative act is presumed to be prospective unless the Legislature clearly manifests a contrary intent. See, for example, In Interest of W. M. V., 268 N.W.2d. 781 (N.D. 1978), and Monson v. Nelson, 145 N.W.2d. 892 (N.D. 1966). In this case, however, it...