A legislative committee has endorsed a compromise between the oil industry and state officials ironing out how the state can collect unpaid oil and gas royalties.
The Land Board wants to work with the oil industry and lawmakers to find "a plausible solution" to a bill that would limit interest and penalties for late royalty payments.
Oil industry pushing bill to slash penalties on overdue royalty payments to North Dakota
The issue of oil and gas royalty payments has become contentious over the last year as the Department of Trust Lands began a more aggressive attempt to collect old payments, interest and penalties it believes are owed to the state. Written By: Jeremy Turley | ×
Rep. Jason Dockter, R-Bismarck, presents a bill to the North Dakota House Finance and Taxation Committee on Jan. 6. Jeremy Turley / Forum News Service
BISMARCK The powerful North Dakota oil lobby has thrown its weight behind a bill in the House of Representatives that would cut down on the maximum interest and penalties the state can charge oil and gas companies for overdue royalty payments.
2. Oil industry pushing bill to slash penalties on overdue royalty payments to North Dakota
Rep. Jason Dockter, R-Bismarck, presents a bill to the House Finance and Taxation Committee on Wednesday, Jan. 6. Jeremy Turley / Forum News Service
The powerful North Dakota oil lobby has thrown its weight behind a bill in the House of Representatives that would cut down on the maximum interest and penalties the state can charge oil and gas companies for overdue royalty payments.
Companies agree to pay royalties and any late fees to the state for the right to extract publicly owned minerals, but bill sponsor Rep. Jason Dockter, R-Bismarck, said his legislation would fix an outdated system of imposing excessive charges on firms when they fall behind on the payments. The House Finance and Taxation Committee held its first hearing on House Bill 1080 on Wednesday, Jan. 6.