North Dakota Code 38-17-06 – Acknowledgment of advance royalty provision required
All advance royalty provisions contained in coal leases executed after April 9, 1975, must be specially explained to the lessor before the lessor executes the lease. The lessor shall execute an acknowledgment indicating the lessor’s knowledge of the presence of the advance royalty provision or the advance royalty provision is void. The acknowledgment must be printed on the lease document in print which is larger than any other print on the document, and it must refer the lessor to the exact provision of the lease which permits advance royalty.
Terms Used In North Dakota Code 38-17-06
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
An example of the type of acknowledgment required by this section is as follows: THE LESSOR HEREBY ACKNOWLEDGES THAT THE LESSOR IS AWARE OF SECTION OF THIS LEASE RELATING TO ADVANCE ROYALTIES.