Armstrong makes almost all of his income personally from oil and natural gas. If elected, Armstrong will lead the boards that oversee the oil and gas industry in a State with weak financial disclosure laws.

Kelly Armstrong, a Republican who was elected to Congress in 2018 and filed his federal disclosure of financial information, revealed that he had extensive ties with the oil and natural gas industry in North Dakota. The document detailed Armstrong’s income from hundreds oil wells, as well as his financial relationship with the two largest oil producers in North Dakota.

These ties are important if he is elected governor of North Dakota next month, which seems likely. Armstrong will be automatically appointed to two state boards that regulate the energy sector under North Dakota’s system. This means he would have to make decisions that directly affect companies with which he or his family has a financial or familial tie.

Armstrong, as the head of the North Dakota Industrial Commission (NDIC) and Land Board (NDLB), would have an unmatched level control and oversight in comparison to other state leaders. Former state senator Armstrong would be able to help shape policy in a time where North Dakota, the nation’s No. The nation’s No. 3 oil producer is now entering a new stage of energy development. In recent years, the Industrial Commission has been criticized by landowners and lawmakers for its support of corporate interests.

1776 Coalition Sponsored Is Israel’s fate tied to Syria? Syria has fallen, but we are still far from seeing the last of the hostages returned. Our brave soldiers must fight to secure Israel’s borders, rid the region of emboldened attackers all over the Middle East, and adapt to the escalating threats from Syria, but Israel doesn’t have enough supplies to properly win this war. Can you support our IDF sons and daughters as they continue fighting for the Survival of the Promised Land?.

In an email response to questions posed by the North Dakota Monitor, Armstrong stated that the majority of his income comes from the oil and natural gas industry. Armstrong will receive up to $50,000 from Hess Corp. in 2022. This company has been a subject of 14 votes in recent years by one of these bodies and is likely to continue to be discussed in the future by those boards. Armstrong’s oil and gas firm, run by his father, was involved in a multi-company dispute that lasted for years with the Land Board. The Land Board oversees all state-owned minerals and lands. The majority of entities, including Armstrong’s father’s business, have reached settlements through negotiation.

Armstrong wants to succeed Gov. Doug Burgum has voted on about 20 occasions in relation to companies that he is financially connected to, according to an analysis of the minutes of the Industrial Commission. The commission is responsible for energy regulations and overseeing state-owned enterprises. Continental Resources is one of the largest producers in the region.

The ethics rules in North Dakota are much weaker than other states. Board members can decide if they have a potential conflict of interest. The boards effectively self-police on this issue. The Ethics Commission of the state has conflict-of interest rules but can only act if there is a complaint. It also hasn’t implemented any consequences for breaking those rules.

The majority of ethics experts interviewed for this article stated that it is problematic when royalty owners vote on issues involving companies from which they receive income.

Dennis Cooley is the director of North Dakota State University’s Northern Plains Ethics Institute. He said, “That’s more than an apparent conflict, it’s a true conflict.” Even with the best of intentions, as I assume these people, these representatives, have, it is hard to separate oneself from those who pay.

Scott Skokos is the executive director of environmental conservation group Dakota Resource Council. Skokos’ group, which has opposed certain Industrial Commission decisions, said that the mechanics of what we have done in North Dakota do not make much sense ethically. He said that the government “should work for the people and is actually working for corporate interest.”

Armstrong, an attorney whose father is involved in the oil and gas industry since 1979, was interviewed this summer at the GOP state headquarters about his connections to the largest industry of the state. He believes that his financial ties with oil and gas companies won’t cause a conflict when asked to vote about matters involving these companies. In the interview he said, “I would speak to someone,” but “I don’t believe so.”

Armstrong has said that he won’t divest from his oil and natural gas holdings, nor will he put them in a blind-trust. He said that his industry experience will help him in his role as North Dakota’s “promoter in chief” of the energy industry.

It’s the No.1 driver of our economy in North Dakota. I have a wealth of knowledge about what it was like to grow up in western North Dakota and work with oil and gas,” Armstrong said. Armstrong stated that he has a vast knowledge of the oil and natural gas industry in Western North Dakota. “I don’t think this is a conflict.” “I think that’s a benefit.”

There are few guardrails.

Burgum, who was elected as governor in 2016, has cast around 20 votes in the Industrial Commission. These votes involved oil and gas companies leasing minerals from a joint venture that the governor owns with his family and at least one vote benefited a firm in which the wife of the governor holds stock.

These votes covered issues such as experimental production technology and disputes between companies.

Because of North Dakota’s minimal financial disclosure laws, the public was not informed that Burgum’s family had a financial stake in these companies until Burgum ran for President last year.

Burgum’s disclosure report revealed he received up to $51,000 in combined mineral royalties from Continental Resources and Hess – two of the Bakken’s biggest oil producers. Income comes from mineral leases that were signed by the Burgum Farm Partnership. This family venture is owned by Burgum, five of his relatives and other companies.

Mike Nowatzki’s spokesperson, a representative of the governor, stated that the leases were in place long before Burgum was elected and had not been brought before the board.

These federal disclosures revealed also that his wife Kathryn Burgum held shares in nine energy firms, of which more than half do business in the State.

Otter Tail Corporation, one of these, was a client of the Industrial Commission and received a $4.4M grant for grid resilience approved by a 3-0 vote in December. Burgum voted for the grant.

Burgum’s spouse owned Otter Tail stock worth between $1,001 to $15,000. Nowatzki was asked in multiple emails to find out the value of Otter Tail’s stock and Burgum’s spouse. The spokesman failed to provide either.

It is important to know the exact value of these holdings because Industrial Commission ethics policy prohibits members of the board from voting, participating or trying to influence any decisions on a company in which they or their spouses own $5,000 or more equity.