The residents of Minot mobile home parks turned out for a townhall meeting at John Hoeven Elementary on June 21 for an explainer on recent legislation that stat
Bill takes aim at disputes between North Dakota royalty owners and oil companies
The companies say they re allowed to deduct from royalty checks the costs of removing impurities and transporting oil and gas, but mineral owners argue they never agreed to that practice in the contracts they signed to lease their land. Written By: Jeremy Turley | ×
An oil well pumps at sunrise in western North Dakota s Bakken Formation. Forum News Service file photo
BISMARCK A group of North Dakota Republicans has proposed a bill that would force oil companies to pony up millions of dollars to royalty owners who believe they ve been hoodwinked.
Some North Dakota mineral owners report they have seen as much as two-thirds of the oil and gas royalties they expect to receive in a given month disappear as Bakken producers take deductions to move the products down the processing chain, and theyâre asking for lawmakers to help stop the practice.
The oil industry is pushing back, saying that such change might cause oil development to dry up and would discourage companies from investing in pipelines and other infrastructure needed to accommodate gas produced alongside oil in the Bakken.
The issue is complex and garnered numerous questions Monday from legislators on the Senate Finance and Taxation Committee when they heard from supporters and opponents of Senate Bill 2217, whose lead sponsor is Rep. Brad Bekkedahl, R-Williston.
Bill takes aim at disputes between North Dakota royalty owners, oil companies
The companies say they re allowed to deduct from royalty checks the costs of removing impurities and transporting oil and gas, but mineral owners argue they never agreed to that practice in the contracts they signed to lease their land. Written By: Jeremy Turley | ×
An oil well pumps at sunrise in western North Dakota s Bakken Formation. Forum News Service file photo
BISMARCK A group of North Dakota Republicans has proposed a bill that would force oil companies to pony up millions of dollars to royalty owners who believe they ve been hoodwinked.
North Dakota regulators want greater authority to go after corporate leaders who flagrantly disregard spills and other environmental problems in the oil patch.
The proposal was among several significant bills related to energy and the environment heard during the first week of the legislative session. Lawmakers also are considering measures tied to storing natural gas underground and cleaning up contaminated property.
Senate Bill 2064 would allow the state to penalize corporate officers deemed responsible for oil- and gas-related violations.
Two serious environmental problems recently occurred in the oil fields, prompting the legislation after the state spent hundreds of thousands of dollars to clean up the sites, State Mineral Resources Director Lynn Helms told the Senate Energy and Natural Resources Committee during a hearing Thursday. The state tried to get the companies to act, but they shirked their responsibilities, he said.