State Shields Its Royalties, Not Yours

Updated: 2025.09.15 1M ago 1 sources
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.

Sources

We Investigated How Oil Companies Take Millions From Mineral Owners. Now, Some Lawmakers Push for Change.
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.
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