North Dakota Oil Royalties Based on Well Value, Court Says (1)

Royalties for a number of oil and gas leases in dispute in multiple federal class action suits are based on the value of oil at the well and not the value of some other place downstream, North Dakota’s highest court said Thursday.

The response to the certified question from the U.S. District Court for the District of North Dakota affects at least six separate class action suits by trustees of the Blasi Living Trust, which argues it was underpaid royalties.

Bruin E&P Partners LLC and Bruin E&P Operating LLC said royalty from oil is valued at the well, which allows ...