Judge sides with company in royalties dispute with state

BISMARCK, N.D. – A judge has sided with a Houston-based energy company in a dispute with North Dakota involving oil and natural gas royalties.

Northwest District Court Judge Robin Schmidt’s ruling could affect several other drillers that allegedly owe the state millions of dollars in payments, the biggest portion of which is meant to support public education.

The ruling 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.

Schmidt’s ruling follows a trial last week in Watford City.