North Dakota has prohibited postproduction deductions on state oil leases since 1979, but private mineral owners—bound by legacy contracts—routinely see companies dock their royalties, averaging about 20%. After an investigation, lawmakers are floating reforms, from banning deductions unless explicitly allowed to fixing an oversight program that hasn’t resolved cases.
— It exposes a conflict‑of‑interest style asymmetry where the state protects its own revenue while leaving citizens’ parallel claims vulnerable, a pattern likely present in other resource jurisdictions.
by Jacob Orledge, North Dakota Monitor
2025.09.15
100% relevant
The article notes state leases bar deductions since 1979 while private owners’ deductions totaled roughly $1B in 2023 and the 2023 oversight program has resolved no deduction cases.
← Back to All Ideas