North DakotaCoal leases include minerals in coal unless they exclude them
Coal leases include critical minerals and rare earth minerals contained in coal unless excluded, and operators must pay owners royalties when those minerals are extracted and sold.
What it does
Critical minerals and rare earth minerals linked to coal are part of the coal estate for ownership, leasing, taxes, and development, unless a recorded conveyance separates them.
A coal lease includes critical minerals and rare earth minerals contained in coal unless the lease excludes them. Neither party has to mine or sell those minerals.
When an operator extracts and sells covered minerals from coal, the operator must pay mineral owners at least 2.5 percent of gross proceeds.
Argument forCoal owners may earn royalties when minerals are extracted and sold, since operators must pay at least 2.5 percent of qualifying sale proceeds.
Argument againstThe minimum royalty may reduce what operators keep from mineral sales, which could make some coal mineral projects harder to carry out.
More detail
Critical minerals and rare earth minerals within or associated with coal formations, seams, or coal combustion leftovers are part of the coal estate unless a recorded conveyance expressly separates them. This rule covers ownership, leasing, taxation, and development. A recorded conveyance must expressly sever the minerals for them to be outside the coal estate.
A coal lease includes critical minerals and rare earth minerals contained within a coal seam or deposit unless the lease specifically excludes them. This covers minerals chemically bound, embedded, mixed with, included in, or contained within coal. A party is not required to mine, remove, or sell these minerals. The rule applies to coal leases whenever granted.
An operator must pay mineral owners a royalty of at least 2.5 percent of gross proceeds from covered minerals mined, removed, and sold during extraction. This applies to operators and mineral owners for critical minerals and rare earth minerals extracted from coal. The royalty is divided according to each owner's share of coal mined in the applicable permit area during that calendar year. Gross proceeds means receipts from an arms-length sale. The operator must pay at least annually by March 31 for sales from the prior calendar year.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Jun 11Filed with Secretary Of State 05/06Latest
- May 17Signed by Governor Kelly Armstrong 05/05Became Law
- May 3
- Vote recorded Motion for Final Passage on HB 1459. Result: pass.Upper
- Vote recorded Motion for Final Passage on HB 1459. Result: pass.Lower
- May 2Sent to GovernorTo Governor
- May 2Signed by Speaker
- May 2Signed by President
- May 2Emergency clause failed
- May 2Second reading, passed as amended, yeas 27 nays 19Major
- May 2Conference committee report adopted
- May 2Reported back from conference committee, in place of, placed on calendarMinor
- May 2Second reading, passed, yeas 63 nays 26, Emergency clause carriedMajor
- May 2Conference committee report adopted
- May 2Reported back from conference committee, in place of, placed on calendarMinor
- May 1Conference committee report rejected
- May 1Reported back from conference committee, in place of, placed on calendarMinor
- Apr 25Conference committee appointed Patten Kessel Boehm
- Apr 24Conference committee appointed D. Anderson Dockter Porter
- Apr 24Refused to concur
- Apr 21Returned to House (12)
- Vote recorded Motion for Final Passage on HB 1459. Result: pass.Upper
- Apr 21Second reading, passed as amended, yeas 46 nays 0Passed Senate
- Apr 21Amendment adopted, placed on calendar
- Apr 18Reported back amended, do pass, amendment placed on calendar 7 0 0Minor
- Apr 3Committee Hearing 09:00
- Mar 27Committee Hearing 10:00
- Feb 13Introduced, first reading, (emergency), referred Energy and Natural Resources CommitteeMinor
- Feb 12Received from House
- Vote recorded Motion for Final Passage on HB 1459. Result: pass.Lower
- Feb 11Second reading, passed, yeas 85 nays 2, Emergency clause carriedPassed House
- Feb 10Amendment adopted, placed on calendar
- Feb 7Reported back amended, do pass, amendment placed on calendar 11 0 2Minor
- Feb 6Committee Hearing 09:00
- Jan 16Introduced, first reading, referred Energy and Natural Resources CommitteeIntroduced
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