BISMARCK — The North Dakota Board of University and School Lands (Land Board) issued the following statement after Thursday’s meeting during which the Land Board voted unanimously to continue to appeal a judge’s ruling in a lawsuit over disputed oil and gas royalty payments owed to the state. The Land Board also voted unanimously to not pursue a challenge to the constitutionality of House Bill 1080, which set the statute of limitations for pursuing payments at Aug. 1, 2013.
“The Land Board respects the 2021 legislative process that set the statute of limitations in House Bill 1080, and we have decided not to challenge the constitutionality of that legislation, which means disputed payments originating prior to Aug. 1, 2013, will not be pursued,” said Gov. Doug Burgum, who chairs the Land Board. “The board has a fiduciary responsibility to drive investment in, and maximize returns on, state-owned land and minerals for the benefit of North Dakota citizens. The Land Board recognized that the 67th Legislative Assembly determined that pursuing disputed, decades-old royalty payments was counterproductive to that goal when they passed HB 1080. Furthermore, pursuing these old, disputed royalty payments would continue to discourage needed investment in our oil and gas industry, risking significant tax revenues that support North Dakota schools, cities, counties, water infrastructure, research, outdoor recreation and the Legacy Fund.”
The five-member Land Board consists of Burgum, State Superintendent Kirsten Baesler, State Treasurer Thomas Beadle, Secretary of State Al Jaeger, and Attorney General Drew Wrigley.
After an executive session Thursday, the Land Board voted in open session to appeal a district court judge’s ruling in Newfield Exploration Co. v. State of North Dakota, et al. The Land Board decided not to appeal the portion of the ruling that upheld the statute of limitations in House Bill 1080. Thursday’s action allows settlement negotiations to move forward on royalties owed since Aug. 1, 2013.
