North Dakota Unclaimed Property

North Dakota Unclaimed Property

On July 1, 2021, North Dakota’s version of the Revised Uniform Unclaimed Property Act – which can be found at N.D.C.C. Chapter 47-30.2 – became effective.

In general, the various Unclaimed Property Acts provide statutory rules which are designed to:

• collect, preserve, and deliver unclaimed property to its proper owners,
• when such property has been deemed to be abandoned by its owners.

North Dakota Unclaimed Property

N.D.C.C. Section 47-30.2-01(27) defines the term North Dakota unclaimed property, by providing in part as follows:

As used in this chapter: . . . “Property” means:

• tangible property described in section 47-30.2-08 [held in a safe deposit box] or
• a fixed and certain interest in intangible property held, issued, or owed
• in the course of a holder’s business or
• by a government, governmental subdivision, agency, or instrumentality.

Forms of Property

N.D.C.C. Section 47-30.2-01(27) provides certain examples of North Dakota unclaimed property – including the following:

(1)     All income from or increments to the property; and

(2)     Property referred to as or evidenced by:

(a)     Money, virtual currency, interest, or a dividend, check, draft, deposit, or payroll card;

(b)     A credit balance, customer’s overpayment, stored-value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance; . . .

(i)      Mineral proceeds; . . .

North Dakota Unclaimed Property – Mineral Proceeds

N.D.C.C. Section 47-30.2-01(19) defines the term North Dakota mineral proceeds, by providing in part as follows:

As used in this chapter: . . . “Mineral proceeds” means an obligation:

• to pay resulting from the production and sale of minerals, including net revenue interest, royalties, overriding royalties, production payments, and joint operating agreements; or 
• for the acquisition and retention of a mineral lease, including bonuses, delay rentals, shut-in royalties, and minimum royalties.

North Dakota Unclaimed Property – Presumption of Abandonment

N.D.C.C. Section 47-30.2-04(16) identifies those situations where a presumption of abandonment of North Dakota unclaimed property will arise with respect to mineral rights, by providing in part as follows:

A sum payable as mineral proceeds which has remained unclaimed by the owner for more than three years after it became payable or distributable and the owner’s underlying right to receive those mineral proceeds are deemed abandoned.

Deemed Abandonment – North Dakota Mineral Proceeds

N.D.C.C. Section 47-30.2-04(16) also identifies the effect of any deemed abandonment with respect to North Dakota mineral proceeds – by providing in part as follows:

At the time an owner’s underlying right to receive mineral proceeds is deemed abandoned, any mineral proceeds then owing to the owner and any proceeds accruing after that time are deemed abandoned;

Therefore, there is a presumption that North Dakota mineral proceeds which have not been claimed for more than three years by its rightful owner have been abandoned.

North Dakota Unclaimed Property – Transfer of Property

N.D.C.C. Section 47-30.2-32 identifies that the holder of any North Dakota unclaimed property will be responsible for transferring such property to the appropriate administrative authority by providing in part as follows:

Except as otherwise provided in this section, on filing a report under section 47-30.2-21, the holder shall pay or deliver to the administrator the property described in the report.

North Dakota Unclaimed Property – Uncashed Checks

N.D.C.C. Section 47-30.2-04(1) identifies a presumption of abandonment after two years with respect to any uncashed checks – including checks issued in payment of mineral rights – by providing as follows:

Except as provided in this section, checks held, issued, or owing in the ordinary course of the holder’s business which remain uncashed by the owner two years after becoming payable; . . .

Thereafter, such checks will be deemed to be North Dakota unclaimed property.

North Dakota Mineral Proceeds – State Administrator

N.D.C.C. Section 47-30.2-16 identifies that North Dakota will be entitled to receive delivery of any abandoned mineral proceeds classified as North Dakota unclaimed property if the last known mailing address for the owner of abandoned North Dakota mineral proceeds is a North Dakota mailing address.

North Dakota Mineral Proceeds – Mailing Address in Another State

N.D.C.C. Section 47-30.2-49 identifies that if the last known mailing address for the owner of abandoned North Dakota mineral proceeds is in a state other than North Dakota, or if the North Dakota unclaimed property has become subject to claim by the other state, the North Dakota unclaimed property mineral proceeds must be sent to the State Treasurer or other financial administrator of that state for administration under that state’s Unclaimed Property Act.

North Dakota Unclaimed Property – Delivery of Property

N.D.C.C. Section 47-30.2-32(6) identifies that the holder of North Dakota unclaimed property will be relieved of any further liability with respect to the disposition of such property if it is released to the North Dakota state administrator:

An issuer, holder, or transfer agent acting under this section under instructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered in good faith to the administrator.

North Dakota Unclaimed Property – Property Search

An on-line search for North Dakota unclaimed property can be performed at the following Internet address:

https://unclaimedproperty.nd.gov/app/claim-search

North Dakota Unclaimed Property – Trusts for Unlocatable Mineral Owners

N.D.C.C. Chapter 38-13.1 identifies a special category of North Dakota unclaimed property which can result from the judicial creation of trusts for the benefit of North Dakota mineral rights owners:

• who cannot be located,
• but whose consent is required with respect to certain matters.

Such trusts will be administered:

• for the first three years by the Treasurer of the North Dakota County in which the mineral interest is located, and
• thereafter, by the proper State Treasurer or other financial administrator.

Conclusion – North Dakota Unclaimed Property

If you need assistance with respect to any North Dakota Unclaimed Property mineral proceeds, contact North Dakota attorney Gary C. Dahle, at 763-780-8390, or gary@dahlelaw.com.

Whether you reside in North Dakota, California, Minnesota, or any other state, if you had a relative who died owning mineral rights in North Dakota which have not yet been properly settled, contact Minnesota and North Dakota attorney Gary C. Dahle, at 763-780-8390, or gary@dahlelaw.com.

Even though Minnesota and North Dakota attorney Gary C. Dahle does not maintain an office in North Dakota, he is able to assist persons throughout the United States with their North Dakota probate, real estate, and mineral rights issues which do not require a court appearance – and many such issues do not.

Attorneys not licensed in North Dakota are invited to refer the North Dakota portion of the probate estate they are associated with to Minnesota and North Dakota attorney Gary C. Dahle, at 763-780-8390, or gary@dahlelaw.com.

Gary C. Dahle has represented clients from the countries of Canada, Norway, and Sweden, and the states of Alabama, Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington, and Wisconsin in the United States, with respect to North Dakota mineral rights and probate issues in various North Dakota Counties.

http://www.legis.nd.gov/general-information/north-dakota-century-code

Minnesota and North Dakota attorney Gary C. Dahle does not represent oil companies – only owners of North Dakota mineral and royalty interests, and is currently accepting new clients.

Topics of Interest – North Dakota Ancillary Probate

Topics of Interest – North Dakota Intestate Succession.

Topics of Interest – North Dakota Inheritance Laws

Topics of Interest – North Dakota Intestate Estate

Topics of Interest – North Dakota Foreign Personal Representative

Topics of Interest – North Dakota Subsequent Administration

Topics of Interest – North Dakota Mineral Rights.

Topics of Interest – North Dakota Transfer on Death Deeds

Topics of Interest – North Dakota Affidavits of Heirship

Topics of Interest – North Dakota Informal Probate

Topics of Interest – North Dakota Formal Probate

Topics of Interest – North Dakota Probate Settlements

Topics of Interest – Probating a Will Copy in North Dakota

Topics of Interest – North Dakota Probate Closing

Topics of Interest – Newly Discovered North Dakota Property

Topics of Interest – North Dakota Joint Tenancy

Topics of Interest – North Dakota Mineral Rights Purchase Offers

Related issues – see Minnesota Probate.

For information on Ancillary Probate in Minnesota, see Minnesota Ancillary Probate.

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