North Dakota Lawmakers Push for Reform to Shield Mineral Owners from Oil and Gas Company Withholding

North Dakota Lawmakers Reconsider Royalty Protection Amid Growing Concerns A growing number of North Dakota lawmakers are calling for changes to protect mineral owners from oil and gas companies withholding their earnings. The issue has been a contentious one, with some lawmakers previously rejecting proposals aimed at safeguarding the rights of royalty owners. According to data from the North Dakota Department of Mineral Resources, in 2024 alone, oil and gas companies deducted an estimated $1.3 billion from mineral owners' share of income from production. This represents a significant portion of the state's total revenue from oil and gas extraction, which reached $5.6 billion that year. The controversy centers on the practice of deducting various costs from royalty payments, including expenses for operating wells, transporting oil, and other overheads. Mineral owners claim these deductions are often excessive or unjustified, leaving them with significantly reduced earnings. Companies like Continental Resources, one of the largest operators in North Dakota, have been accused of engaging in this practice. In a statement, a company spokesperson acknowledged that deductions are made to cover legitimate costs but emphasized the importance of maintaining a fair and transparent process. Market experts note that the issue is not unique to North Dakota, as similar concerns have arisen in other states with significant oil and gas production. However, some lawmakers argue that the state's unique geology and industry dynamics require tailored solutions. State Representative Kathy Hogan (D-Fargo) has been a vocal advocate for reform, citing the need to protect mineral owners from exploitation. "We've heard the stories of families struggling to make ends meet due to these deductions," she said in an interview. "It's time we take action to ensure fairness and transparency in our oil and gas industry." On the other hand, some lawmakers argue that any changes could have unintended consequences on the state's economy. Representative Mike Lefor (R-New England) expressed concerns about potential job losses and decreased investment if companies are forced to pay more to royalty owners. As the debate continues, stakeholders are closely watching for any developments. Industry experts predict that changes to the current system will likely be incremental, with a focus on strengthening regulations and oversight rather than radical reform. In the coming months, lawmakers will convene to discuss potential legislation aimed at addressing these concerns. While no consensus has been reached, one thing is clear: the fate of North Dakota's oil and gas industry hangs in the balance as policymakers weigh competing interests and priorities. *Financial data compiled from Propublica reporting.*