Latest news with #NorthDakotaPetroleumCouncil
Yahoo
24-03-2025
- Business
- Yahoo
Oil company, landowner attorney collaborate on bill to avoid court battles in North Dakota
Landowners are compensated for the area needed for oil well pads, but there are sometimes disputes about the amount of compensation. (Kyle Martin/For the North Dakota Monitor) Bismarck attorney Derrick Braaten says clients have paid him millions of dollars for court battles against oil and gas company Continental Resources over surface damages in North Dakota. But a conversation between Braaten and a lawyer representing Continental Resources could lead to fewer court battles, something Braaten says benefits the company and his clients. A result of that conversation is Senate Bill 2335, which would add a mediation step in negotiations between mineral resource developers and landowners in an effort to resolve disputes without a lawsuit. The bill has received support from Continental Resources, the North Dakota Petroleum Council and the Northwest Landowners Association, which Braaten represents. Litigation only benefits the lawyers, Braaten said during a hearing before the House Energy and Natural Resources Committee earlier this month. In these disputes, the developer has already leased the minerals. But, under North Dakota law, developers must pay the landowners reasonable compensation for damage to the land, such as putting in a well pad. 'Neither the landowners nor the developers are benefiting from litigating over every darn well pad,' Braaten said. 'I've got better things to do.' Under the bill, if a landowner rejects a compensation offer from an oil and gas developer, the landowner can choose an appraiser to determine the value of the land being affected and present it to the developer. The developer pays for the appraisal, and after receiving it, has 30 days to make a new offer. Braaten said the appraisal provides a third-party number that at least provides a starting point for negotiations. 'The best thing that can happen here is we figure out how to make landowners and operators come together and come to private agreements,' Braaten said. William Hauser, an attorney for Continental Resources, said the value of the property is at the heart of the disputes. 'The appraisal helps both sides see the realistic value sooner in the process,' Hauser testified. If there is no agreement, the case can still end up in court, though the appraisal is not admissible. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Ron Ness, president of the North Dakota Petroleum Council, said currently, talks stagnate after the initial offer. 'The landowner is just unhappy and there's no communication,' Ness said. Troy Coons, chair of the Northwest Landowners Association, called the bill an 'excellent compromise.' The bill received unanimous approval in the Senate, and the House committee gave it a unanimous do pass recommendation last week. Two other landowner rights bills went before the House Energy and Natural Resources Committee. Senate Bill 2321 would require that companies developing infrastructure projects such as pipelines reimburse legal fees for landowners, even if the company abandons or changes the project so that the landowner is no longer involved. It is awaiting committee action. Senate Bill 2379 originally required that land surveyors get written permission from landowners before stepping onto a property. This bill has received pushback from some water resource development groups, saying it would add to water pipeline costs and slow the projects down. The bill was amended to require providing written notice. The committee voted 9-4 Friday to give it a do-pass recommendation. The North Dakota Supreme Court last year ruled against landowners in a survey access case involving carbon dioxide pipeline developer Summit Carbon Solutions. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
05-02-2025
- Business
- Yahoo
Bill seeks to expand North Dakota's oil footprint with tax breaks
A workover rig is shown at an oil production site on Sept. 21, 2024, in Williams County, N.D. (Kyle Martin/For the North Dakota Monitor) A bill seeks to encourage drilling for oil outside of North Dakota's highly productive Bakken Formation and take advantage of the Trump administration's desire for U.S. energy dominance. 'Drill, baby, drill is real,' Ron Ness, president of the North Dakota Petroleum Council said Tuesday, repeating a Republican mantra for oil and gas development. Ness was testifying in support of House Bill 1483, which would expand an oil extraction tax exemption outside the Bakken and Three Forks formations. The Bakken has produced more than 5 billion barrels of oil, mostly since 2007, Ness said. But he said North Dakota has 10 other oil production zones that have potential. While the Bakken is dominated by large, publicly traded companies, Ness said the tax break would encourage more drilling by smaller operators, or wildcatters, 'trying to to find the next big thing.' North Dakota has a 5% oil extraction tax and a 5% oil production tax. The law already allows a 2% oil extraction rate for some oil produced outside of the Bakken and Three Forks formations. Former North Dakota Gov. Doug Burgum confirmed as Interior secretary The bill would expand the area of the tax break and increase the amount of oil that would be taxed at the lower rate from 75,000 barrels to 90,000 barrels, though there was some sentiment among the committee that the 90,000 barrel figure should be higher to increase the incentive. The lower tax rate would cut off after 18 months if the production figure is not reached. Ness said North Dakota should be trying to attract drilling outside the Bakken to compete with the Permian Basin of Texas and New Mexico, which has been successful in attracting drilling outside of its core production area. 'We've put all of our eggs in this basket of the Bakken,' Ness said. The state Tax Department estimated that the bill would cost the state $2.2 million in revenue over the next two fiscal years and just over $2 million in the two years after that. North Dakota Department of Mineral Resources Director Nathan Anderson agreed that there should be more activity outside the Bakken. 'Right now, these wells aren't getting drilled, so the tax base on these wells is zero,' he said. There was no opposition testimony filed or presented to the House Finance and Taxation Committee, which took no action on the bill. North Dakota, which ranks third in the nation in oil production, produced an average of nearly 1.2 million barrels of oil per day in November. About 3%, or just over 31,000 barrels per day, came from oil wells outside of the Bakken and Three Forks formations, according to the Department of Mineral Resources. Ness said the timing is right for these incentives to take advantage of the 'Trump effect' with Doug Burgum, North Dakota's former governor, now leading the Department of the Interior. Burgum on Monday signed orders addressing what President Donald Trump declared as a national energy emergency and another calling for a review of all agency actions that could hinder development of domestic energy. Rep. Craig Headland, R-Montpelier, sponsored the North Dakota bill, which he said is aimed at 'feeding our golden goose.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
04-02-2025
- Business
- Yahoo
Bill seeks to expand North Dakota's oil footprint with tax breaks
A workover rig is shown at an oil production site on Sept. 21, 2024, in Williams County, N.D. (Kyle Martin/For the North Dakota Monitor) A bill seeks to encourage drilling for oil outside of North Dakota's highly productive Bakken Formation and take advantage of the Trump administration's desire for U.S. energy dominance. 'Drill, baby, drill is real,' Ron Ness, president of the North Dakota Petroleum Council said Tuesday, repeating a Republican mantra for oil and gas development. Ness was testifying in support of House Bill 1483, which would expand an oil extraction tax exemption outside the Bakken and Three Forks formations. The Bakken has produced more than 5 billion barrels of oil, mostly since 2007, Ness said. But he said North Dakota has 10 other oil production zones that have potential. While the Bakken is dominated by large, publicly traded companies, Ness said the tax break would encourage more drilling by smaller operators, or wildcatters, 'trying to to find the next big thing.' North Dakota has a 5% oil extraction tax and a 5% oil production tax. The law already allows a 2% oil extraction rate for some oil produced outside of the Bakken and Three Forks formations. Former North Dakota Gov. Doug Burgum confirmed as Interior secretary The bill would expand the area of the tax break and increase the amount of oil that would be taxed at the lower rate from 75,000 barrels to 90,000 barrels, though there was some sentiment among the committee that the 90,000 barrel figure should be higher to increase the incentive. The lower tax rate would cut off after 18 months if the production figure is not reached. Ness said North Dakota should be trying to attract drilling outside the Bakken to compete with the Permian Basin of Texas and New Mexico, which has been successful in attracting drilling outside of its core production area. 'We've put all of our eggs in this basket of the Bakken,' Ness said. The state Tax Department estimated that the bill would cost the state $2.2 million in revenue over the next two fiscal years and just over $2 million in the two years after that. North Dakota Department of Mineral Resources Director Nathan Anderson agreed that there should be more activity outside the Bakken. 'Right now, these wells aren't getting drilled, so the tax base on these wells is zero,' he said. There was no opposition testimony filed or presented to the House Finance and Taxation Committee, which took no action on the bill. North Dakota, which ranks third in the nation in oil production, produced an average of nearly 1.2 million barrels of oil per day in November. About 3%, or just over 31,000 barrels per day, came from oil wells outside of the Bakken and Three Forks formations, according to the Department of Mineral Resources. Ness said the timing is right for these incentives to take advantage of the 'Trump effect' with Doug Burgum, North Dakota's former governor, now leading the Department of the Interior. Burgum on Monday signed orders addressing what President Donald Trump declared as a national energy emergency and another calling for a review of all agency actions that could hinder development of domestic energy. Rep. Craig Headland, R-Montpelier, sponsored the North Dakota bill, which he said is aimed at 'feeding our golden goose.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
