House passes bill to define critical minerals in coal, sets 2.5% minimum royalty amid legal disputes

The North Dakota House of Representatives passed House Bill 14-59, a measure the Legislature’s conference committee says would define critical minerals and rare earth elements found in coal seams and set a minimum royalty for mineral interest owners, after a floor debate that centered on retroactive application to existing coal leases and legal clarity.

Supporters said the bill provides a statutory framework that would pay mineral interest owners when critical minerals are recovered from coal before the coal is consumed; opponents said the measure improperly alters existing contracts and risks litigation. Representative D Anderson, the bill carrier, told the House that “the bill ensures that the mineral owners receive a minimum royalty of at least 2 and a half percent.” Representative Novak, a member of the conference committee, added that “If we are not going to pass a law that determines policy, it will be up to the court to determine policy,” and said the bill seeks…