Various members have inquired as to what can they do to help WBROA move forward. The following suggestions are appropriate whether you are “in state” or “out of state” royalty owners. Every royalty owner is paying North Dakota income tax and the reductions caused by Postproduction Costs are reducing state income tax dollars.
First, spread the word about wbroa.com by any means you have available. Whether it is by word of mouth, email or social media. Letters to the Editor expressing the question of legitimacy are also an option. Legislators need to begin to recognize there is a problem that we want addressed to benefit royalty owners and taxpayers.
Second, communicate your dissatisfaction the practice of Postproduction costs being assessed on mineral royalty owners to North Dakota legislators and statewide elected officials, particularly the members of the North Dakota Industrial Commission. The commission members are the Governor, Attorney General and Ag Commissioner.
Lastly, I am attaching an example of the work I have done to demonstrate to legislators what has happened since 2004 on the royalties paid to Hess Bakken Investments Beaver Lodge royalty owners. This data was taken from the IRS 1099’s provided annually at the end of the year and also available on the Hess Owner Relations website. This is one example of what is transpiring but it would be very useful if other members with royalties from other companies or other areas could build similar documents and forward them for purposes of comparison and collaboration. The numbers reflected on percentages and not a reflection of the dollar amount of royalties received. Merely percentages. The more comprehensive the cross section of companies, the more meaningful it becomes. It would also be useful to have comparisons within companies from various areas of the state.
- Bob Skarphol
Royalties Paid to Hess Bakken Investments Beaver Lodge Royalty Owners Since 2004
Year
|
“Other Deduction” as a % of Gross Royalty
|
Taxes as % of Gross Royalty
|
Total Deductions%
|
Source-IRS
|
2004
|
0
|
|
5.62
|
1099
|
2005
|
0
|
|
5.62
|
1099
|
2006
|
0
|
|
7.19
|
1099
|
2007
|
|
|
9.92
|
1099
|
2008
|
|
|
9.2
|
1099
|
2009
|
5.79
|
3.29
|
9.08
|
1099
|
2010
|
2.666
|
9.054
|
11.72
|
1099
|
2011
|
2.217
|
8.908
|
11.125
|
1099
|
2012
|
1.845
|
10.161
|
12.006
|
1099
|
2013
|
2.451
|
9.463
|
11.915
|
1099
|
2014
|
2.615
|
10.301
|
12.917
|
1099
|
2015
|
20.675
|
7.039
|
27.714
|
1099
|
2016
|
35.533
|
6.533
|
42.066
|
1099
|
2017
|
37.48
|
5.832
|
43.312
|
1099
|
2018
|
29.895
|
6.437
|
36.332
|
1099
|
2019
|
(36.64) to date
|
|
|
1099
|
2020
|
|
|
|
1099
|
2021
|
|
|
|
1099
|