To avoid legal battles between royalty owners and mineral companies, North Dakota's Agriculture Department has launched a unique program. This initiative emerges after the rejection of a bill advocating greater transparency in how royalty payments are determined.
Under this program, the state will employ independent ombudsmen, specialists from companies familiar with mineral leases, to help out when a royalty owner registers a complaint. Two such companies joining the program are Diamond Resources and Aurora Energy Solutions. Both companies assist in brokering discussions between mineral companies and royalty owners.
Northwest Landowners Association's Troy Coons acknowledges the program's potential and calls for an unbiased ombudsman to understand both sides of the debate. Some sectors express skepticism about its ability to address complex issues, particularly post-production cost deductions.
Agriculture Commissioner Doug Goehring emphasizes the program's intent to clarify payment schedules and resolve differences. He believes that even if all disputes can't be settled through this avenue, gaining a clearer understanding of royalty contracts will be a significant step forward.
For more information or assistance, royalty owners can visit www.ndda.nd.gov/royalty-oversight-program.
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Categories: North Dakota, General