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Bill would let land board cancel trust leases that block intended mineral development; department and industry support amendments
Summary
Senate Bill 2302 would give the state land board authority to cancel trust‑land leases if the board finds a party is holding a lease in bad faith to block development; the Department of Trust Lands and petroleum interests supported the measure and an amendment that clarifies board-level review.
Senate Bill 2302, as amended, would authorize the State Land Board to review and, where warranted after an open hearing, cancel a lease of state trust land when the board finds evidence the lessee is acting in bad faith — for example by leasing parcels to block mineral development rather than to develop minerals.
Chris Selsley (Minerals Director, Department of Trust Lands) outlined the department’s rationale and described the amendment that routes contested cases to the Land Board for an open hearing and vote. "We would bring it to the board, in an open hearing, and give them the power to exercise that authority if they wanted to," Selsley said, describing the board as the governor, attorney general and other appointed officials who comprise that body.
Ron Ness, president of the North Dakota Petroleum Council, told the committee the council supports the bill with the department’s amendments. Ness said the measure provides the state a statutory tool to respond to attempts to use leases to thwart development and noted similar actions in other states.
No opposition testimony was offered at the hearing. The committee closed the record after receiving the department’s explanation and industry support.
