This article was prepared for the local propublica reporting network in partnership with Northern Dakota monitor. Sign up for sending To get our stories in the mailbox every week.
Over the years, the owners of Northern Dakota minerals have stated that government officials have ignored their requests for help when companies are counting money from their share of oil and gas revenue.
Now some state legislators agree that the action should take. By answering on A recent Northern Dakota monitor and a propublica investigationMore than a half dozen said that the committee should study the issue and propose decisions before the next session of the legislation in 2027. Others have proposed changes to state legislation, including one proposal to ban the deductions if the rental does not give them to another, which will require Royalti companies and owners to retell their contracts every few decades.
The legislation is found every second year. Northern Dakota’s legislators rejected proposals for the protection of private mineral owners in 2021 and 2023 and did not resolve this issue during the session this year.
“It will certainly appear in 2027,” said Senator Chuck Wallen, a Republican from the new city. “I don’t know what the result will be, but it will definitely be suitable.”
Northern Dakota’s representatives took measures to protect state fees. Since 1979, all state rental with oil and gas companies have been banned by deductions. But this protection does not apply to rent, which is agreed by 300,000 Northern Dakota mineral owners.
“I certainly think that something needs to be done, especially since the state has defended itself,” said representative Patrick Hatlestad, Republican from Willistan. “I think something like this needs to be done for my citizens.”
Some legislators also suggested that they may need to make changes to the state -owned royalty, established in 2023 to resolve the owners of minerals for post -production – cash companies that contain to cover the cost of processing and transporting minerals after they are obtained. This program did not mitigate concern about post -production expulsion and, as of August, did not resolve any cases on this issue News organizations found.
Why is it important
Mineral owners have oil and gas rights underground. They can rent these rights to companies in exchange for revenue reduction when oil is called Royalti.
But while the rent remained the same for decades, the industry has changed. Oil and gas are now being sold away from the well, and companies carry large transportation and other costs to get products before sale. Companies transmit part of these costs to the owners of minerals that determined the Northern Dakota courts, usually legitimate if the rental does not say another.
Most of the rent, signed decades ago, do not mention the deductions after the sellers, and the rent does not end if the oil production does not order.
The deductions began to grow in Northern Dakota about ten years ago. About 20% of the fees are calculated on average, two estimates, as well as interviews with Royalti owners. This would be about $ 1 billion in 2023.
The estimates represented by the Northern Dakoto oil Council believe that companies that contain at least hundreds of millions of dollars in Northern Dakota each year.
Why do some legislators push up for change
Several legislators, including the Republican representative Don Longmur, said that since the state’s legislative season is relatively short 80 days, it is important to hold an intermediate legislative committee and propose a decision before the 2027 session.
“We can’t wait until the session begins,” Longmur said Stanley in the oil region. “This is what you know really should happen before they can come up with something.”
The appointment of a new study by the Provisional Committee will require directives from the leader of most Senate David Hog, the chairman of the committee on legislation. Hog, Republican from Miny, said he “considers it” and probably decide next month.
“I really need to do more self-education now,” Hog said. The last series has raised “the realization that there is a problem,” he said.
Senator Dale Paten, who held the post of chairman of the Senate Energy and Natural Resources Committee and will probably have an impact on any legislation, stated that he was open to official legislative research, but stated that it should be initiated only with the full legislative body.
“It would be comfortable for me to look at it and see if there is a way to solve it,” said the Paten, Republican from Watford -City.
Some legislators already think about ways to solve the problem at the next session.
One of the legislators said it could impose a legislation that limits the lease of up to 30 years. Senator -Republican Jeff Magrim, who represents Haislton and support the owners of landowners on other issues, said he hoped that the rental restriction would give the future generations of minerals the opportunity to revise contracts and encourage companies to be more memorable as they relate to the northern Dakotans.
“I don’t think it’s right for who was not even born to honor the contract I signed today. It’s just not fair for them,” Magrim said. “See how the times have changed. Everything has changed and they were stuck in the contract that was written in the 1950s.”
Over the past two legislative sessions, Magrim has introduced 13 bills related to property rights. All but one failed.
The Republican, Republican from Willistan, a spokesman David Richter, said that he believes that the legislative body would be difficult to change existing leases in this way, but it may limit the length of the future.
“Going forward, I think this may be a very difficult option,” Richter said. “But it does nothing to facilitate the situation that already exists.”
For those who exist, Richter said that it was often “unclear” whether the deductions were allowed, and some legislators said they should adopt the law on the issue.
Richter said he prefers that companies and owners of minerals would talk contracts to determine whether the deductions were allowed. But if this does not happen, he said he was open to the legislation that “clarifies” as renting that does not mention the expulsion should interpret the courts.
The minority leader in Katie Hogan Senate, a Democrat from Farga, said the lawmakers should pass a law saying that companies could not accept post -production deductions if the rent is clearly not allowed to do so. Senator Brad Bekkedal, Republican from Willistan, who supports oil development but also tried to help the owners of minerals, suggested such a measure in 2021.
“We could write a legislation that easily clarifies it,” Hogan said. “But we could never do it.”
Industry, government officials respond
Ron Non -Dako, President of the Northern Dakota Oil Council, organizing on behalf of more than 550 oil and gas companies, said many of the proposals would be a “significant violation” on the rights of mineral owners.
“We believe that the direct participation in the state/interference with the contract agreements of hundreds of thousands of private leasing is the wrong approach,” he wrote in an e -mail. “The proposed actions similar to this will have a detrimental impact on the development of minerals in Northern Dakota.”
Governor Kelly Armstrong, a Republican, who worked in the private oil company of his family earlier in his career, did not respond to a request for a commentary on this article.
But during a speech on August 18, the governor stated at the KFGO radio program that the Royalti Supervision Settings were open to create the settings. The program was created by legislators in 2023 and was provided in the way to mediation disputes about deductions between the owners of minerals and companies, but this did not happen.
“If this does not work, we need to find out why not find out if we can customize it and make it better,” Armstrong said.
Some legislators said they see no need to take any action.
Senator Kent Weston, a Republican Sarle, said he discussed the issue with his colleagues in the legislative body and the staff of the Northern Dakota Oil Council in recent weeks. He said that the status is “fair” and necessary for the oil and gas industry to continue investing in the state.
Most House leader Mike Lephale and REP. Todd Porter, the long -standing chairman of the committee who oversees the energy industry in the ward, will not be able to comment.
