State should get full value for mineral
The mineral rights owned by the state of North Dakota belong to its citizens. When royalties from oil produced from state mineral rights are less than that from surrounding private holdings, it’s the people of the state who are shortchanged.
And because those royalties go into a trust fund for education, it’s the children of the state who pay the price.
The royalties are set by the state Board of University and School Lands. Before the next quarterly state-lease auction on Feb. 7, the board should adopt a royalty pricing structure that obtains revenues closer to private royalties and more in line with fair market returns.
That means, in general, a 2 percent increase.
The trust, established at statehood, is truly a legacy for the people of the state. Since 1889, the fund has grown to nearly $2 billion and paid out $98 million in revenue for education in this biennium.
Charging fair value for the royalties on crude oil, when the state has a large revenue surplus, isn’t greed by any stretch of the imagination. It is a non-renewable resource that belongs to the people.
And to give it away or charge less than it’s worth would be foolish and irresponsible when seen against the timeline of history.
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