North Dakota Supreme Court sides with Oil Patch landowners in dispute over ‘pore space’ law

BISMARCK — The North Dakota Supreme Courtroom has dominated in favor of a bunch of landowners in a fancy dispute over the oil and fuel {industry}’s use of underground rock cavities.

The unanimous ruling launched Thursday, Aug. 4, upheld crucial components of

a decrease court docket’s resolution

to strike down a state legislation that prevented some landowners from receiving compensation for using underground cavities on their property.

The Republican-held state Legislature and Gov. Doug Burgum accepted the industry-backed laws in 2019,

setting the stage for a lawsuit

introduced by the Northwest Landowners Affiliation.

The cavities, referred to as “pore house,” can be utilized by oil producers for the disposal of salt water or for the injection of carbon dioxide to spice up manufacturing from declining oil wells.

The landowners argued the 2019 legislation illegally stripped away their property rights. The state contended the legislation fell inside the state’s authority to coerce property for the general public good. Continental Sources, a significant oil producer, intervened within the case and joined the state’s facet.

A district court docket decide

struck down the entire legislation

in a 2021 ruling, however the Supreme Courtroom’s resolution Thursday restored some items of the legislation that Northwest Landowners’ lawyer Derrick Braaten stated weren’t of a lot consequence to his shoppers.

The Supreme Courtroom concurred with the decrease court docket that the disputed part of the legislation permitting oil producers to make use of pore areas with out paying landowners

violated clauses within the U.S. and state constitutions

that prohibit the general public “taking” of personal land with out providing truthful compensation.

Braaten stated the landowners felt “vindicated and elated” after the excessive court docket’s ruling.

A joint assertion from the state Industrial Fee, which was a defendant within the case, stated, “Though the Supreme Courtroom ruling struck down parts of Senate Invoice 2344, the remaining parts of the invoice that the court docket upheld are a victory for each landowners and {industry}.”

The Industrial Fee consists of Gov. Doug Burgum, Legal professional Basic Drew Wrigley and Agriculture Commissioner Doug Goehring.

An lawyer for Continental Sources didn’t instantly reply for touch upon the ruling.