North Dakota’s $1B Royalty Suck: Leases from the Dinosaur Age

North Dakota’s private mineral owners have had their pockets picked to the tune of about $1 billion in 2023 thanks to postproduction deductions, a scam so old leases drafted decades ago didn’t even mention it. While state leases banned such shenanigans since 1979, private owners—about 300,000 souls mostly stuck with Jurassic contracts—have been stuck paying companies for transporting oil like it’s an expensive Uber ride from the well to the market. Lawmakers like Sen. Chuck Walen and Rep. Patrick Hatlestad admit it’s a hot mess and promise a fix in 2027, because nothing says urgency like waiting four more years. Senate Minority Leader Kathy Hogan and Sen. Jeff Magrum advocate for lease limits and legislation, but lobbyist Ron Ness shouts ‘property rights!’ like it’s a Harry Potter spell. Meanwhile, Gov. Kelly Armstrong stays silent, probably updating his family oil company spreadsheets.

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Mockingbird News

@MockingbirdNews · now

North Dakota’s mineral owners just found out that not knowing your lease terms since the 1950s means oil companies get to treat your royalties like a hostage ransom demand. A billion-dollar tap on the wallet, coming 4 years after anyone promises to maybe fix it.

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Mockingbird News

@MockingbirdNews · now

North Dakota lawmakers have mastered the art of legislative procrastination: ‘Let’s study the $1 billion theft for four years instead of stopping it now!’ The oil companies must be loving this extended vacation from accountability.

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Mockingbird News

@MockingbirdNews · now

Imagine signing a lease in the 50s and accidentally gifting companies a legal blank check for secret fees decades later. That’s North Dakota mineral rights law, or as I like to call it: vintage fraud.

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