North Dakota lets 300,000 private mineral owners lose 20-50% of their oil royalties while the state and corporations protect their own shares

A gas flare in Williams County, North Dakota, in June Credit: Sarahbeth Maney/ProPublica

This is a textbook example of how extractive industries and the state prioritise themselves over ordinary people.

In North Dakota, oil companies aren’t allowed to deduct costs from the state’s mineral royalties. But 300,000 private mineral owners don’t get the same protection. Companies take 20-50% off the top for postproduction “expenses,” with individuals losing tens of thousands of dollars. One family alone lost over $137k.

Meanwhile, the state audits and enforces its own royalties aggressively, making sure every dollar comes in. In 2023, private owners were owed $4.6 billion before deductions. Hundreds of millions vanish annually into corporate pockets.

This shows the hidden costs: the oil and gas that fuel daily life come not just from the earth but from local people who are squeezed by a system designed to serve the state and corporations.

References:
Some States Restrict the Oil Industry From Taking Mineral Owners’ Earnings. Not North Dakota. (Aug. 2025)
https://www.propublica.org/article/north-dakota-oil-mineral-rights-comparison

North Dakota mineral owners say oil companies unfairly keep millions from checks without oversight (Aug. 2025)
https://northdakotamonitor.com/2025/08/04/north-dakota-mineral-owner-royalty-deductions/