Wednesday, March 6, 2019

Law Defining Mineral Ownership Under Lake Sakakawea Constitutional -- Dickinson Press -- March 6, 2019

Link here. Data points:
  • this was a "new" North Dakota law
  • the law was supposed to better define oil and gas ownership under Lake Sakakwea
  • the law was found to be constitutional -- East Central Judicial District judge
  • lawsuit brought by Rep Marvin Nelson, D-Rolla, former governor candidate Paul Sorum and others
  • taxpayers argued that they were seeking to prevent the state from "giving away" $2 billion in oil and gas mineral rights in coming years," challenging the law as unconstitutional
  • lawyers said it was not a giveaway but rather a process to define the boundary of the state's mineral rights
  • the law ought to clarify ownership of minerals under Lake Sakakawea through a review of the historic ordinary high water mark of the Missouri River as it existed before the Garrison Dam
  • the state of North Dakota prevailed
  • the law is constitutional
However:
  • the second portion of the ruling fell in favor of the taxpayers
  • the law would reduce state revenues by $205 million by refunding oil royalty, rent and bonus payments
  • the judge said that applying the law retroactively to oil and gas revenues earned from wells drilled since 2006 is unconstitutional
  • the statute of limitations: three years
  • the court preserved $205 million for the state taxpayers
Unclear
  • whether the ruling meant that the state would have to be refund payments from the past three years

2 comments:

  1. Leave it to the lawyers to come up with a split decision that, at best, remains-
    UNCLEAR.
    Hope they got all their billable hours out of this one

    ReplyDelete
    Replies
    1. Ah, yes, billable hours. I'm sure the lawyers will do just fine. On both sides.

      Delete