North Dakota Code § 40-33-14

Contract to supply surplus water or electricity outside of municipal limits
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If the governing body decides to furnish electricity or water outside the municipal limits, it 
shall be done by a contract authorized by the governing body and executed on its part by the 
executive officer and the city auditor and by the customer or customers to be supplied. No such 
contract shall be authorized or entered into at any rate or price for electricity or water which shall 
discriminate against the inhabitants of the municipality, or which shall impose any direct tax 
burden upon the taxable property in the municipality, or in such amount as will interfere with the 
ability of the municipality to provide adequate electricity or water for its own use and the use of 
the inhabitants thereof.

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