Mineral Royalty Division Overview
The Mineral Royalty division is fully funded by the federal government and operates within the North Dakota State Auditor’s Office. This division uses audits and compliance reviews to verify that the federal government received the correct lease royalty money from energy companies that extract minerals (such as gas, oil, and coal) from federal leases within North Dakota.
Benefits to North Dakota
Federal lease royalty money is divided between the federal government, the State of North Dakota, and counties. The percentage of dollars returned to the State of North Dakota and counties depends on the lease type. The royalty payments are a percentage of the revenue from the sale of the extracted minerals.
A portion of the money goes to the Office of Natural Resources Revenue (ONRR), and then is distributed to federal programs across the country. The percentage of money that is allocated to ONRR is: Acquired Lease 25%, Flood Control Lease 75%, Public Domain Lease 52%.
After the federal government receives their portion of the money, the rest is allocated to 16 counties and the General Fund in the State of North Dakota through the following methods:
