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Committee adopts cross‑industry amendment requiring appraisals before surface‑damage lawsuits, clarifies fee recovery
Summary
An amended version of Senate Bill 2335 won committee approval after industry and landowner negotiators agreed language requiring pre‑litigation appraisals and clarifying attorney‑fee recovery under state law.
The Senate Energy and Natural Resources Committee on Thursday approved an amended version of Senate Bill 2335 that includes a pre‑litigation appraisal requirement for surface‑damage claims and clarifies fee‑recovery provisions under state law.
Industry and landowner representatives told the committee they negotiated the amendment over several weeks. Will Hauser of Continental Resources said the settlement language requires that “landowners will have to obtain an independent appraisal before litigation” and clarifies fee recovery rights under chapter 28‑26. He described several benefits for surface owners, including mandatory reimbursement for required appraisals and protection of appraisal confidentiality unless the appraisal is voluntarily introduced at trial.
Troy, counsel for a landowner group, said he and the industry representative agreed the amendment “was a fair settlement for both sides.” The amendment also provides a structured negotiation process: mineral owners get a 30‑day window to respond to appraisals with new settlement offers, reducing the likelihood of protracted litigation.
Committee members voted to adopt the amendment and later recommended a due pass on the amended bill. Roll calls recorded 7 ayes, 0 nays on the amendment and the amended bill in committee.
Key amendment provisions listed in testimony include mandatory appraisal reimbursement, confidentiality protections for appraisals, guaranteed recovery of attorney and expert witness fees when court awards exceed offers, and interest awards when applicable. Testimony also said the amended language maintains existing constitutional protections under North Dakota Century Code section 38‑11.1‑02.
The committee assigned a carrier to carry the bill forward. No formal opposition testimony was entered during the hearing; supporters described the package as intended to reduce unnecessary litigation while protecting surface owners’ rights.
