North Dakota-owned oil, gas mineral rights valued at $2.8B

Nov 16, 2022, 9:03 PM | Updated: Nov 17, 2022, 12:07 pm

BISMARCK, N.D. (AP) — An estimate of oil and gas mineral rights owned by North Dakota pegs their value at $2.8 billion, an 18% increase from last year, according to an appraisal released Thursday to the state Land Board.

The increase comes largely from strong oil and natural gas prices and sustained production over the past year, according to Watford City-based MineralTracker, part of First International Bank & Trust. Joel Brown, the company’s mineral service manager, said about 9,000 wells in which the state holds an interest were examined — or about half of those operating in the state.

In the fiscal year that ended in June, North Dakota received a record $464 million in royalties from state-owned minerals, including a high of $55 million in July, the report said.

Brown said the state’s mineral rights asset is estimated to bring in more than $10 billion in royalties over the next several decades.

The new valuation considers a variety of components, including oil and gas prices and the decline expected in a well’s production over the next several decades.

MineralTracker, which does the assessment under contract with the state, produced a 35,000-page report this year, which was summarized in a 40-page document presented to the Land Board. The analysis Thursday was the third produced by the company.

The Land Board, led by Gov. Doug Burgum, oversees the state Land Department, an agency that leases rights to state-owned land and it manages a number of state funds.

Burgum said in an interview that the appraisal is valuable “for future planning and it helps for making financial decisions about the best way to manage all these all the assets that we have.”

The company’s appraisal last year came in about $1 billion more than a similar estimate in 2020 when the coronavirus created uncertainty and low prices, and demand for oil declined.

Oil prices have rebounded since the 2020 downturn and natural gas production is growing at a faster rate than oil production, though oil still accounts for about 90% of the royalty revenue from leases on 2.6 million acres of state-owned land.

The state’s four biggest oil-producing counties — Mountrail, Williams, Dunn and McKenzie — account for the highest portion of the valuation.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


moore redmond washington...

Associated Press

U.S. Supreme Court rules against Redmond couple challenging foreign income tax

The court ruled in the case of Charles and Kathleen Moore, of Redmond, Washington after they previously challenged a $15,000 tax bill.

2 days ago

Image:The New York Giants' Willie Mays poses for a photo during baseball spring training in 1972. M...

Associated Press

Willie Mays, Giants’ electrifying ‘Say Hey Kid,’ dies at 93

Willie Mays, whose singular combination of talent, drive and exuberance made him one of baseball’s greatest players, has died. He was 93.

4 days ago

Image: This photo provided by the Washington Department of Ecology shows a derailed BNSF train on t...

Associated Press

Judge orders BNSF to pay Washington tribe nearly $400M for trespassing with oil trains

BNSF Railway must pay the sum to a Native American tribe in Washington after it ran 100-car trains with crude oil on the tribe's reservation.

5 days ago

Photo: In this photo provided by Tieanna Joseph Cade, an amusement park ride is shown stuck with 30...

Associated Press

Crews rescue 28 people trapped upside down high on Oregon amusement park ride

Emergency crews in Oregon rescued 28 people after they were stuck dangling upside down high on a ride at a century-old amusement park.

5 days ago

juneteenth shooting texas...

Associated Press

2 killed and 6 wounded in shooting during a Juneteenth celebration in a Texas park

A shooting in a Texas park left two people dead and six wounded, including two children, on Saturday, authorities said.

6 days ago

Photo: Israeli soldiers drive a tank near the Israeli-Gaza border, in southern Israel, Wednesday, J...

Jack Jeffery, The Associated Press

8 Israeli soldiers killed in southern Gaza in deadliest attack on Israeli forces in months

An explosion in Gaza killed eight Israeli soldiers, the military said Saturday, making it the deadliest attack on Israeli forces in months.

7 days ago

North Dakota-owned oil, gas mineral rights valued at $2.8B