BISMARCK, N.D. (AP) – Oil operators in North Dakota will be required to provide more details to mineral owners about deductions taken from their royalty checks.
The state Industrial Commission approved the rules Monday to address frustration among royalty owners who struggle to get answers from oil companies about the purpose of the charges.
The new rule will require standardized royalty statements that identify the amount and purpose of each deduction. The deductions also will be identified under the categories of transportation, processing, compression and administrative costs.
The North Dakota Petroleum Council industry group testified against the rule change, saying it will require expensive software upgrades.
The rule changes need to be reviewed by the Attorney General’s Office and the Legislature’s Administrative Rules Committee before they can go into effect in July 2019.