(The Center Square) - The estimated value of North Dakota's oil and gas mineral rights increased 18 percent this year to $2.8 billion.

As the state's largest mineral owner, the North Dakota Board of University and School Lands, known as the Land Board, said the updated state mineral valuation estimate projects long-lasting production and showcases the great abundance of natural resources within the state.

"The valuation indicates a bright future for oil and gas development and underscores the incredible opportunity for the state to continue producing the oil and gas resources necessary for national security and energy independence well into the future," Brad Pelton, vice president and general counsel of North Dakota Petroleum Council, told The Center Square. "The revised number allows the state to produce more accurate forecasts for future planning and a way to best determine the management of that wealth that will directly affect the residents of the state."

The Land Board was appraised last year at about $1 billion more than in 2020, showing that demand for oil has clearly rebounded and prices are starting to be consistent.

The return of mineral rights will be used to further education efforts throughout the state.

"Royalty revenue received by the state for production of its mineral assets is a significant tool for North Dakota, most importantly in funding K-12 education through the Common Schools Trust Fund managed by the Board," Pelton said. "North Dakota's oil and gas industry is proud to be a partner with the state in producing its resources and sustaining the high-quality education its students deserve."