MINOT -- With North Dakota's oil industry producing billions of dollars each year for private mineral owners, a group that aims to educate those royalty owners is growing in numbers.
The North Dakota chapter of the National Association of Royalty Owners expects more than 100 people will attend its annual conference this week in Minot, with about half coming from out of state.
Chapter president Dean Zaderaka said the conference has grown each year since the North Dakota chapter formed three years ago to represent private mineral owners. The group now has between 200 and 300 members, he estimates.
"It's mainly about education of mineral owners so they can understand how to negotiate a lease and the things to be aware of so they have a fair lease with the oil company," Zaderaka said.
Private royalties from North Dakota oil and gas production were estimated to be more than $4 billion in 2013, according to a North Dakota State University economic impact study.
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About 40 percent of private mineral owners live in North Dakota, according to the study.
With so many mineral owners living out of state, that makes it extra challenging for royalty owners to stay up to date on factors in the oil industry that will affect their royalty checks, Zaderaka said.
First International Bank and Trust, where Zaderaka works as a senior trust officer, works with North Dakota mineral owners who live in 25 different states.
Mineral owners who are North Dakota residents also have a lot of questions about negotiating leases and other issues, said Sue Satterthwaite of New Town, who is chapter secretary.
Satterthwaite and her husband, Gary, the chapter treasurer, own minerals and have found the organization to be a good educational resource.
"There's not a standard lease ever, everything is negotiable, and a lot of people misunderstand that," Satterthwaite said.
The conference, Thursday and Friday at the Grand Hotel in Minot, covers topics including rail safety, a North Dakota legislative update, state tax policy, mineral appraisals, pipelines and legal issues. A bus tour of the Bakken is scheduled for Thursday morning. Lisa Westberg Peters, author of "Fractured Land: The Price of Inheriting Oil," is the keynote speaker on Friday.
Registration is $125 for members and $150 for non-members. For more information about the conference, visit naro-us.org/NorthDakota or call toll-free (855) 622-7126.
