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We Investigated How Oil Companies Take Millions From Mineral Owners. Now, Some Lawmakers Push for Change.
North Dakota mineral owners have long sought help regarding deductions from their oil and gas income. State lawmakers are now acknowledging the issue and considering action. Several legislators believe a committee should study the problem and propose solutions before the 2027 legislative session. Some are advocating for changes to state law, such as prohibiting deductions unless explicitly stated in a lease or requiring periodic contract renegotiations. Previous legislative attempts in 2021 and 2023 to protect mineral owners were unsuccessful. Unlike private mineral owners, state leases have prohibited deductions since 1979. The existing postproduction royalty oversight program, established in 2023, has not resolved any cases related to these deductions. Industry representatives argue that legislative intervention would infringe on property rights and harm mineral development. Governor Kelly Armstrong has expressed openness to refining the existing oversight program if it's not functioning effectively. While some lawmakers see no need for action, others are pushing for legislative solutions to address the mounting concerns of mineral owners.