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Home » US Law » 2022 South Dakota Codified Laws » Title 45 - Mining, Oil and Gas » Chapter 05A - Compensation For Damages From Mining, Oil And Gas Development

Section 45-5A-1 – Legislative findings.

45-5A-1. Legislative findings. The Legislature finds the following: (1)It is necessary for the state to protect the public welfare of South Dakota which is largely dependent on agriculture, and to protect the economic well-being of individuals engaged in agricultural production; (2)Exploration for and development of mineral and oil and gas reserves in this state may […]

Section 45-5A-2 – Purpose of chapter.

45-5A-2. Purpose of chapter. It is the purpose of this chapter to provide the maximum amount of constitutionally permissible protection to surface owners from the undesirable effects of mineral development. This chapter is to be interpreted to benefit surface owners, regardless of when the mineral estate was separated from the surface estate. Source: SL 1982, […]

Section 45-5A-3 – Definition of terms.

45-5A-3. Definition of terms. Terms used in this chapter, unless the context otherwise clearly requires, mean: (1)”Agricultural production,” the production of any growing grass or crop attached to the surface of the land, whether or not the grass or crop is to be sold commercially, and the production of any farm animals, whether or not […]

Section 45-5A-4 – Compensation to surface owner for losses–Determining damages–Payment.

45-5A-4. Compensation to surface owner for losses–Determining damages–Payment. The mineral developer shall pay the surface owner a sum of money equal to the amount of damages sustained by the surface owner for loss of agricultural production, lost land value, and lost value of improvements caused by mineral development. The amount of damages may be determined […]

Section 45-5A-4.1 – Treble damages for failure to negotiate in good faith.

45-5A-4.1. Treble damages for failure to negotiate in good faith. If any mineral developer fails or refuses to conduct good faith negotiations with the surface owner to determine damages pursuant to §45-5A-4, whether or not arising out of an existing contract or lease, the court, in any subsequent litigation arising out of the mineral developer’s […]

Section 45-5A-5 – Notice to surface owner of proposed surface disturbing development activities.

45-5A-5. Notice to surface owner of proposed surface disturbing development activities. The mineral developer shall give the surface owner written notice of proposed surface disturbing mineral development activities at least thirty days before the date operations are commenced. Surface disturbing activities include well site construction, road building, grading, excavation, demolition, and related activities. This notice […]

Section 45-5A-5.2 – Damages for failure to provide notice.

45-5A-5.2. Damages for failure to provide notice. The surface owner, and surface lessee, if any, may seek actual and punitive damages in the court of proper jurisdiction if the mineral developer fails to provide the notice required by §45-5A-5 or the notice required by §45-5A-5.1. Source: SL 2013, ch 226, §2; SL 2014, ch 213, […]

Section 45-5A-5.3 – Exception to notice requirement.

45-5A-5.3. Exception to notice requirement. The provisions of §§45-5A-5 to 45-5A-5.2, inclusive, do not apply if the mineral developer and surface owner or surface lessee have an existing use agreement or contract regarding the property at issue. Source: SL 2013, ch 226, §3.

Section 45-5A-6 – Responsibilities of developer.

45-5A-6. Responsibilities of developer. The mineral developer is responsible for all damages to property, real or personal, resulting from the lack of ordinary care by the mineral developer. The mineral developer is also responsible for all damages to property, real or personal, resulting from an interference caused by mineral development. Source: SL 1982, ch 304, […]

Section 45-5A-7 – Time for notice of damages to developer.

45-5A-7. Time for notice of damages to developer. The affected surface owner, to receive compensation, pursuant to §§45-5A-8 and 45-5A-9, shall notify the mineral developer, in writing, of the damages sustained by the affected surface owner within two years after the injury becomes apparent or should have become apparent to a reasonable person. Source: SL […]

Section 45-5A-8 – Offer of settlement by developer.

45-5A-8. Offer of settlement by developer. Unless both parties provide otherwise by written agreement, within sixty days after the mineral developer receives notice of damages the mineral developer shall make a written offer of settlement to the person seeking compensation for the damages. The person seeking compensation may accept or reject any offer so made […]

Section 45-5A-9 – Action for compensation.

45-5A-9. Action for compensation. If the person seeking compensation receives a written rejection, rejects the offer of the mineral developer, or receives no reply, that person may bring an action for compensation in the court of proper jurisdiction. Source: SL 1982, ch 304, §9.