# Title 61 — Waters

## Chapter 61-11 — Dissolution of Irrigation Districts

### § 61-11-01. Petition to board of directors for dissolution of district - Requirements -

Adoption of resolution calling special election.
Whenever the electors of an irrigation district owning a majority of the number of acres
[hectares] of irrigable land therein shall petition the board to submit to the electors of the district
at a special election, or at the next regular election of the district, the question of the dissolution
or discontinuance of such irrigation district, and the sale of its property, the board, if the district
has no outstanding or unpaid bonds or district improvement warrants, or if the holders of district
bonds or district improvement warrants consent thereto in writing, shall adopt a resolution
calling a special election or providing for the submission of such question to the electors at the
next regular district election.
### § 61-11-02. Notice of election for dissolution of district - Publication.

Notice that the question of the dissolution of the district and the sale of the district property
as provided in section 61-11-01 will be submitted to the vote of the electors at a special election
or at the next general district election, as the case may be, shall be given in the manner
provided for a regular election of the district.
### § 61-11-03. Ballots to be provided - Form.

The board shall provide printed ballots for an election held pursuant to the provisions of this
chapter. Such ballots shall be substantially in the following form:
The irrigation district of _________ County, North Dakota, shall be dissolved and its
property sold:
Yes ☐
No ☐
The board shall cause such ballots to be prepared at least fifteen days before the election and
shall place the ballots in the hands of the election officers of the district prior to the opening of
the polls on the day of such election.
### § 61-11-04. Conduct of election - Canvassing and reporting result of election.

An election on the question of dissolution in all respects must be conducted, and the votes
canvassed, in the same manner as provided for a regular election of the district. A certified copy
of the statement of the election result by the district's board of directors and all ballots, lists, tally
sheets, and other documents pertaining to the election must be forwarded to the department of
water resources by registered or certified mail or express.
### § 61-11-05. Procedure when election favors dissolution - Notice to file claims against

district - What claims barred.
If a majority of the votes cast at the election are in favor of dissolving the district, the board
shall cause to be published in the newspaper or newspapers of general circulation where the
district is located, and in the official newspaper of each county in which the district is located, a
notice to the creditors of the district, except holders of district bonds or district improvement
warrants, requiring any person having a claim against the district to submit and file such claim
with the secretary of the board within one year after the first publication of the notice, at the
place specified in such notice. The notice shall be published as many times as the board shall
direct, but not less than once each week for three consecutive weeks. The secretary of the
district shall mail, or cause to be mailed, by registered or certified mail, a copy of such notice to
each creditor, except any holder of district bonds or district improvement warrants, known to the
secretary or of record in the secretary's office. After such notice is given, a copy thereof with the
affidavit of publication and affidavit of mailing shall be filed in the office of the secretary of the
district. Any claim not thus presented, except any claim of a holder of district bonds or warrants,
shall be barred forever against such district and against all officers thereof or property therein.

None of the provisions of this chapter shall be construed to limit or impair the rights of owners or
holders of district bonds or district improvement warrants.
### § 61-11-06. Vote against dissolution of district - Subsequent election for dissolution not

to be held for one year.
If a majority of the votes cast at the election are against dissolving the district and selling the
property thereof, no subsequent election upon the question of dissolution of the district shall be
held until after the expiration of at least one year.
### § 61-11-07. Resolution of dissolution when election favors dissolution - Officers and

board to act until obligations settled.
If a majority of the votes cast at the election are in favor of dissolving the district, the board,
in its resolution declaring the result of the election, shall declare that the district will be dissolved
when the obligations of the district have been paid fully. The board and other officers of the
district shall continue to act and function until the property and assets of the district have been
disposed of in conformity with the provisions of this chapter and until all obligations of the district
have been settled and paid.
### § 61-11-08. Sale of district property authorized - Appraisers appointed - Oath -

Compensation.
If a majority of the votes cast at an election for dissolution of a district favor dissolution and
sale, the irrigation works, franchises, and other property of the district may be sold at not less
than a valuation determined by a board of three appraisers. One member of the board of
appraisers must be appointed by the board of directors of the district, one must be appointed by
the director of the department of water resources, and the two appointed appraisers shall
choose the third appraiser. The board of appraisers must be sworn by an officer who is
authorized to administer oaths and who has an official seal. The board shall appraise the
irrigation works, franchises, and all other property of the district at their cash value, and, with the
consent of the board of directors of the district, may employ engineers, accountants, and other
expert assistance as necessary. The board of directors shall fix the compensation of the
appraisers, engineers, accountants, and others.
### § 61-11-09. Appraisal of property by appraisers - Report to board - Advertising property

for sale - Opening of bids.
The board of appraisers shall appraise all the property of the district and make a report of
the appraisal to the board of directors. A copy of the report must be filed by the secretary of the
district with the department of water resources. The board of directors shall advertise for sale all
the property of the district and publish a notice once each week for two consecutive weeks
specifying that sealed bids will be received, opened, and considered by the board at the time
and place specified in the notice, and describing the property. At the time and place designated
in the notice, or as soon after the time as the board can meet, the board shall open and
consider all bids received for the purchase of the property, and the board may reject bids which
do not, in the judgment of the board, offer a fair and just consideration.
### § 61-11-10. Private sale of property of district - When permitted - Terms - Proceeds of

sale.
If all bids are rejected, the board, by private negotiation, may sell and convey the property
or any part thereof for cash at not less than the appraised value thereof, or may agree to sell
and convey the property at not less than the appraised value for part cash and part in deferred
payments bearing interest at such rate as shall be agreed to mutually between the board and
the purchaser. The title to any property so sold shall remain in the district until the purchase
price thereof has been fully paid. All moneys realized from the sale of the property shall be
deposited with the county treasurer designated as the custodian of district funds, and such
moneys shall be paid out only upon warrants duly authorized by the board and signed by the
chairman and secretary thereof.

### § 61-11-11. Sale or transfer of property authorized.

In carrying out the provisions of this chapter, for the discontinuance of an irrigation district
and the sale of its property and assets, the board may sell, transfer, and convey all of the
irrigation works, franchises, and other property owned by the district to the purchaser thereof.
### § 61-11-12. Liquidation of district indebtedness.

After the sale of the property and franchises of an irrigation district, the board, with the
moneys realized from such sale together with such other funds as such district may have, shall
make settlement, payment, and redemption of all outstanding bonded or other indebtedness of
the district, but in no case shall such board pay more than the par value of outstanding bonds or
warrants, as the case may be, with interest up to the time of payment. If the amount realized
from the sale of such district property, together with other moneys of the district, shall be
insufficient for the payment of all the indebtedness of the district, such district shall not be
dissolved or discontinued until such indebtedness is fully paid, and assessments shall continue
to be made against the lands in the district in the manner provided by law for the levy of
assessments to pay bonds and other indebtedness of irrigation districts until a sufficient amount
is raised to pay in full all obligations of such district.
### § 61-11-13. Sale does not affect vested water rights.

The sale of the irrigation works, franchises, and property of an irrigation district shall not
affect or impair vested water rights, and the right to the use of water acquired under the laws of
this state shall be assigned to the purchaser of the irrigation works of the district or to the
individual electors of the district in accordance with section 61-04-15. Chapter 61-04 governs all
water permits and water rights acquired by an irrigation district, including any water permits or
water rights which may be assigned by an irrigation district.
### § 61-11-14. Sale does not affect or release assessment liens - Duty of county treasurer.

The sale of the property and franchises of an irrigation district shall not affect or release the
lien of any assessment made by the district upon the lands therein, and such lien shall not be
removed until such assessment is paid or the property sold for the payment thereof. The county
treasurer shall collect any such assessment in the manner provided by law for the collection of
the assessments of an irrigation district, and the laws of the state for the collection and sale of
land for taxes shall continue to be applicable to the collection of any such assessments.
### § 61-11-15. Report of dissolution when - Where filed - Contents - Recording of in office

of recorder.
After all the property of an irrigation district is disposed of upon dissolution and all the
obligations of the district are paid, the directors of the district shall file in the office of the county
auditor of each county in which the district is situated, and in the department of water resources,
a report signed by the chairman of the board and attested by the secretary, and bearing the seal
of the district, stating the district has disposed of its property and franchises, all of the
obligations of the district have been paid fully, and the district has been disorganized and
dissolved. The report must be recorded in the miscellaneous records of the recorder in each of
the counties in which the district is located, and from and after the filing and recording, the
irrigation district is deemed dissolved.
### § 61-11-16. Surplus moneys of district - Disposal.

If a disorganized irrigation district shall have moneys in its treasury after the payment of all
the debts and obligations of the district, such moneys shall be apportioned and paid to each
landowner, who has paid fully all assessments against that landowner's land in the proportion
which the last assessment of such owner's land bears to the total of all assessments last made,
levied, and assessed against all lands in the district.
