38-09-03. Provisions may be inserted in lease for consolidation of adjoining lands - Royalty - How shared

38-09-03. Provisions may be inserted in lease for consolidation of adjoining lands - Royalty - How shared. Any oil or gas lease made by any of the political subdivisions mentioned in section 38-09-02 may provide that the lessee may consolidate the land covered by such lease with other adjoining lands for the purpose of joint development and operation of the entire consolidated premises as a unit. In such a case, the lessor shall share in the royalty on oil and gas produced from the consolidated tract in the proportion that the area of the land covered by such lease bears to the total area of such consolidated tract.