I've read this story several times, but I must be missing something.
The lede:
For the first time in North Dakota history, tracts of state-owned mineral acres will be leased with a special footnote that says an oil well may not be allowed there.So, if I understand this correctly, you should feel free to bid to lease state land for the purpose of drilling for oil, but understand that the state probably won't issue you a permit for a well (even with a state lease) without a long, drawn-out, involved process with no guarantee that a permit will ever be issued.
That footnote intended to protect essential wildlife habitat will appear on about 1,800 acres that will go on the auction block May 1. That’s when the Department of Trust Lands will hold a quarterly sale of mineral acres nominated by companies interested in leasing them.
Why not just take the affected land off the table?
This seems a bit like a lottery with regard to obtaining a permit: you pay your money for a winning lease bid, and then learn later whether it's any good.
Like I said, I must be missing something.
But, it is fair warning, and it helps folks understand the process.
Even if one has a lease, it doesn't mean the state will issue a permit. (This reminds me of the Seinfeld episode in which Jerry had a rental car reservation but when he showed up at the rental desk, no car was available.)
I am not sure how this is any different than what the federal government has done with offshore drilling.
If the state later on denies a permit to drill, does the leaseholder get the bid money back (with interest + loss opportunity costs)?
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