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Oil Patch Hotline Reveals Dispute Over Water Mineral Ownership

At the stake are millions of dollars in royalties, according to the twice-monthly publication that covers the oil and gas industry in the upper Rocky Mountain states.

In the article, the Oil Patch Hotline discloses that the ND Board of University and School lands met in secret Sept. 30 on the advice of Atty. Gen. Wayne Stenehjem, a member of the five-man board headed by Gov. John Hoeven, to weigh the potential for lawsuits, even ones initiated by the state.

Stenejhem said he recommended the executive session. "The dispute is over who owns the minerals under navigable waters," the attorney general said in the article. "We are trying to decide what legal position the state should take. As a member of the land board, we have a duty to attempt to maximize the income for the state."

The state has paid out over $250,000 to consultants Bartlett & West to determine the "high water mark" along the waterways.

Some mineral owners, such as retired businessman Stan Reep, argue the state is claiming ownership it does not have. "I believe that the state has been reckless in offering this property for lease," Reep said after the state asked for bids on 114 acres he owns along the Missouri River at public oil and gas lease auction in May.

For more information email: oil@hotlineprinting.com or call 407 463-2237

Oil Patch Hotline
Dennis Blank, 407-463-2237
oil@hotlineprinting.com