Senate adopts bill defining rare earths in coal, sets 2.5% minimum royalty amid heated debate

The North Dakota Senate on a floor vote passed House Bill 1459, a measure that declares rare earth elements and critical minerals chemically bound to coal part of the coal estate, sets a minimum 2.5% gross‑revenue royalty for minerals extracted during mining, and provides retroactive application intended to protect mineral owners.

Supporters said the bill gives legal clarity needed for private investment and for the state to remain a leader in domestic rare‑earth production. "House Bill 14 59 deals with rare earth elements and critical minerals," Senate Bill carrier Senator Patton said, adding the measure "establishes that fly ash that is produced is a product of a coal conversion facility, belong to the operator of that facility" and that the bill "sets a minimum royalty of 2 and a half percent of gross revenue, if refined during the mining process." He urged senators to vote aye.

Opponents warned the measure reaches into private contracts and that retroactive application could be unconstitutional. "This is not the same bill that we I voted on this bill when it was over here, and this isn't the same bill,"…