BISMARCK, N.D. (AP) — A state agency is trying to collect millions of dollars in oil and gas royalty payments it says are owed to the state. The North Dakota Petroleum Council is promising litigation.
The dispute began after North Dakota’s Board of University and School Lands discovered during a recent audit that some oil companies allegedly took improper deductions for transportation, processing and other costs on royalties owed to the state.
The Petroleum Council disagrees with the department’s interpretation of the leases, which date to 1979.
The amount of money allegedly owed to the state is still being determined, but state Land Commissioner Lance Gaebe says it’s in the millions.