North Dakota 2023-2024 Regular Session

North Dakota Senate Bill SB2374

Introduced
1/23/23  
Refer
1/23/23  
Refer
1/26/23  
Report Pass
2/17/23  
Engrossed
2/21/23  
Refer
2/22/23  

Caption

A postproduction royalty oversight program; and to provide a report to the energy development and transmission committee.

Impact

Should SB2374 become law, it will significantly alter the way royalty payment issues are managed in North Dakota. With the commissioner mandated to provide technical support through contracted ombudsmen, it is anticipated that this oversight will create a more transparent and user-friendly process for mineral and lease owners. Additionally, the requirement for bi-annual reporting to the energy development and transmission committee will ensure accountability and continuous evaluation of the program’s effectiveness, which may reshape interactions between the state and mineral asset holders.

Summary

Senate Bill 2374 aims to establish a postproduction royalty oversight program within the North Dakota Century Code. The bill mandates the creation of an ombudsman program to provide technical assistance and support to mineral owners, lease owners, and mineral companies regarding issues related to royalty payments. This initiative is designed to facilitate better communication and resolution of disputes concerning royalty payments, ensuring that stakeholders in the mineral industry have access to necessary resources to address their concerns effectively.

Sentiment

The general sentiment around SB2374 appears to be supportive, particularly among stakeholders in the mineral industry who see the value in having a dedicated program to address royalty payment concerns. Nevertheless, the potential costs associated with funding the ombudsman program and the implementation challenges pose some concerns. The bill reflects a proactive approach to resolving issues that have long caused friction between mineral owners and companies, which may lead to improved relationships and operational efficiencies.

Contention

Noteworthy points of contention surrounding SB2374 stem from the implications of state oversight into what some may view as private contractual agreements. Critics might argue that the bill could lead to an overreach of state authority into the management of mineral resources, potentially increasing bureaucratic hurdles rather than alleviating them. Furthermore, funding for the program and its operational structure may draw scrutiny regarding its long-term viability and effectiveness in genuinely resolving disputes rather than simply creating more administrative layers.

Companion Bills

No companion bills found.

Previously Filed As

ND SB2194

The abandoned oil and gas well plugging and site reclamation fund; and to provide a report.

ND SB2009

The salary of the agriculture commissioner, the federal environmental law impact review committee, the environmental impact mitigation fund, and mitigating environmental impacts; to provide for a transfer; to provide an exemption; and to provide for a legislative management study.

ND HB1520

Royalties; and to provide a penalty.

ND SB2289

The energy development and transmission committee.

ND HB1018

The legacy investment for technology program, the North Dakota development fund, the workforce enhancement council, the administration of uncrewed aircraft system programs, workforce development grants to tribally controlled community colleges, and a North Dakota development fund grant program; to provide a transfer; to provide an exemption; to provide for a report; and to declare an emergency.

ND SB2308

Occupational and professional boards, the midwest interstate passenger rail compact, prison industry advisory committee, energy policy commission, medical marijuana advisory committee, onsite wastewater recycling technical committee, state board of water well contractors, committee on aging, brain injury advisory council, early childhood council, unemployment insurance advisory council, commission on the status of women, health information technology advisory committee, poet laureate nominating board, rural development council, America 250 commission, atmospheric resource board, and Devils Lake outlet management advisory committee; to provide for a legislative management report; to provide an effective date; and to provide an expiration date.

ND HB590

Provides for the payment of royalties for a nonparticipating owner's lessor royalty owner and overriding royalty owner

ND HB1009

The salary of the agriculture commissioner; to provide for a transfer; to provide for a report; to provide an exemption; and to declare an emergency.

ND SB1032

State Energy Resources Conservation and Development Commission: electrical transmission grid development and expansion: study.

ND HB1014

Fuel production facility loan guarantee reserve funding, the housing incentive fund, the powers of the North Dakota pipeline authority, definitions for the clean sustainable energy authority, a clean sustainable energy authority line of credit, and an appropriation from the state fiscal recovery fund; to provide a contingent appropriation; to provide for a transfer; to provide an exemption; to provide for a study; to provide for a report; to provide a statement of legislative intent; to provide an effective date; and to declare an emergency.

Similar Bills

No similar bills found.