Senate approves amended bill directing study of rare earth elements in North Dakota lignite

Senator Behm, chair of the Senate Energy and Natural Resources Committee, told colleagues the committee replaced the original House language in House Bill 1459 with a narrower amendment that declares state policy on rare earth elements, mandates a formal study, and clarifies ownership on state lands.

The amendment was presented as a step to position North Dakota to develop domestic supplies of critical and rare earth minerals found in lignite coal seams. "North Dakota is well positioned to be that source," Behm said, adding that research led by the Lignite Energy Research Council and the EERC is "paving the way to extract these resources efficiently and responsibly." The amendment also removes an initial provision addressing post-combustion byproducts that counsel advised was too complex to resolve in this bill.

The nut graf: The amendment narrows the bill to three discrete tasks: (1) a public policy declaration that the state will evaluate and responsibly manage rare earth minerals, (2) a mandated study to provide data and recommendations for future legislative or regulatory action, and (3) a clarification that rare earth elements found on state lands are part of the state's mineral estate. Those changes moved HB 1459 from a broader, investor-certainty bill to a study-and-policy framework.

In debate, senators asked whether private landowner interests were engaged in the drafting. Senator Bain asked, "Were the land owners associations or the land, mineral rights owners part of your negotiation?" Behm answered, "Yes, they were." The sponsor also described an estimate that North Dakota lignite seams contain an "estimated 800 year supply of lignite, rich in valuable rare earth elements." The amendment record notes collaboration with the attorney general's office, the Department of Mineral Resources, the Office of State Lands, the State Geological Survey, and the governor's office.

The Senate adopted the amendment and then gave final passage to House Bill 1459 as amended. The secretary recorded a final tally of 46 yeas, 0 nays and 1 absent. The Senate also passed the emergency clause.

Background and details: Sponsors said the original House bill left open questions about ownership of minerals in coal contracts (pre‑combustion versus post‑combustion) and lacked a compensation framework for mineral rights; the amendment was developed to address those legal and policy concerns before pursuing substantive statutory changes. The study directive is intended to gather technical and legal information to inform any future code changes.

Next steps: With final passage and emergency status, the bill as amended is placed on the legislative calendar for the next order and the mandated study will be carried out as directed by the enacted language.