New rules require more transparency for royalty statements
BISMARCK (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.