Marketing Non-op interests (operator's obligations)

[PatrickM]

Does anyone know the obligations an Operator (specifically in North Dakota, has to market a non-Operator’s interest. The non-Ops volumes are too low for any midstream company to even consider and trucking is cost prohibitive. The Operator owned the midstream company and refuses an audit of expenses which seem excessive almost $4/mcf.

The only thing I’ve found is North Dakota Code Chapter 49-19 COMMON PIPELINE CARRIERS: 49-19-11. Pipeline carrier must agree to carry without discrimination. A common pipeline carrier, in the acceptance of the provisions of this chapter, shall agree expressly that it, without discrimination, will accept, carry, or purchase, the oil, coal, gas, or carbon dioxide of the state or of any person not the owner of any pipeline, operating a lease or purchasing oil, coal, gas, or carbon dioxide at prices and under regulations to be prescribed by the commission.

[Bob77]

The operator has 0 obligations to “market a non-op interest”. Question seems to be loaded since you bring up auditing the midstream company, so hard to tell what you are trying to get at/your end game is?

[TennisDaze]

This is a question for an oil and gas attorney familiar with North Dakota law. Did you or prior WI owner sign the JOA (joint operating agreement) and does it discuss this? Are you an unleased mineral owner and so may have rights under state law? Keep in mind that your situation is governed by more than just statutes as the may be court decisions on this issue.