North Dakota Supreme Court reverses decision in Houston-based energy company case regarding oil royalties

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The North Dakota Supreme Court reversed a decision made in a lower court in a dispute involving oil and natural gas royalties with a Houston-based energy company.

North Dakota’s Supreme Court has reversed a lower court decision that sided with aThe case stems from a lawsuit Newfield Exploration filed against the state after the Department of Trust Lands conducted an audit in 2016 that claimed the company was underpaying royalties to the agency that manages several state trust funds, including one that benefits public schools.

Northwest District Court Judge Robin Schmidt’s ruled last year that the state’s claim of a breach of contract could not be proven because the state failed to provide "any contract or lease ... that allows this court to meaningfully review the contract obligations and whether a breach has occurred.

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