Property Ownership
In North Dakota, oil and gas leases give the lessee the right to:
AOwn the mineral rights permanently
BExplore and produce oil and gas from the leased acreage for the lease term in exchange for royalty payments to the mineral owner✓ Correct
CUse the surface for any purpose including residential development
DSell the mineral rights to third parties
Explanation
An oil and gas lease grants the lessee (typically an oil company) the right to explore and produce from the specified acreage for a primary term (and as long as production continues). In exchange, the mineral owner receives a signing bonus and ongoing royalty payments based on production.
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