North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1483 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	HOUSE BILL NO. 1483
4		-	(Representatives Headland, D. Anderson, Koppelman, Vollmer, J. Olson, Hagert)
5		-	(Senators Kessel, Meyer, Rummel, Thomas)
6		-	AN ACT to amend and reenact subsection 4 of section 57-51.1-03 of the North Dakota Century Code,
7		-	relating to the oil extraction tax rate reduction for oil produced from a new well drilled and
8		-	completed outside the Bakken and Three Forks formations; to provide for a legislative
9		-	management study; and to provide an effective date.
	1	+	25.1080.03000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Representatives Headland, D. Anderson, Koppelman, Vollmer, J. Olson, Hagert
	7	+	Senators Kessel, Meyer, Rummel, Thomas
	8	+	A BILL for an Act to amend and reenact subsection 4 of section 57-51.1-03 of the North Dakota
	9	+	Century Code, relating to the oil extraction tax rate reduction for oil produced from a new well
	10	+	drilled and completed outside the Bakken and Three Forks formations; to provide for a
	11	+	legislative management study; and to provide an effective date.
10	12		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
11		-	SECTION 1. AMENDMENT. Subsection 4 of section 57-51.1-03 of the North Dakota Century Code
12		-	is amended and reenacted as follows:
13		-	4.The first seventy-five thousandthree hundred thousand barrels of oil produced during the first
14		-	eighteenthirty - six months after completion, from a well drilled and completed outside the
15		-	Bakken and Three Forks formations, and ten miles [16.10 kilometers] or more outside an
16		-	established field in which the industrial commission has defined the pool to include the Bakken
17		-	or Three Forks formation, is subject to a reduced tax rate of two percent of the gross value at
18		-	the well of the oil extracted under this chapter. The tax rate reduction under this subsection
19		-	does not apply to a well located within the exterior boundaries of a reservation, a well located
20		-	on trust properties outside reservation boundaries as defined in section 57 - 51.2 - 02, or a
21		-	straddle well as defined in section 57 - 51.1 - 07.10 located on reservation trust land, unless a
22		-	tribe makes an irrevocable election to opt - in to the tax rate reduction by providing written
23		-	notice to the tax commissioner. If a tribe provides notice of its election to opt - in to the tax rate
24		-	reduction, the tax commissioner shall apply the tax rate reduction beginning in the month of
25		-	production after the notice is received by the tax commissioner.
26		-	SECTION 2. LEGISLATIVE MANAGEMENT STUDY - OIL EXTRACTION TAX EXEMPTION FOR
27		-	PRODUCTION FROM STRIPPER WELLS. During the 2025-26 interim, the legislative management
28		-	shall consider studying the oil extraction tax exemption for production from a stripper well property or an
29		-	individual stripper well. The study must include consideration of the number of oil wells and amount of
30		-	oil production qualifying for the exemption, the estimated fiscal impact of the exemption, and alternative
31		-	tax policies for stripper well properties or stripper wells. The study may include input from the tax
32		-	commissioner, the director of the department of mineral resources, and representatives of the oil and
33		-	gas industry. The legislative management shall report its findings and recommendations, together with
34		-	any legislation required to implement the recommendations, to the seventieth legislative assembly.
35		-	SECTION 3. EFFECTIVE DATE. Section 1 of this Act is effective for taxable production beginning
36		-	after June 30, 2025. H. B. NO. 1483 - PAGE 2
37		-	____________________________ ____________________________
38		-	Speaker of the House President of the Senate
39		-	____________________________ ____________________________
40		-	Chief Clerk of the House Secretary of the Senate
41		-	This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
42		-	Assembly of North Dakota and is known on the records of that body as House Bill No. 1483.
43		-	House Vote: Yeas 80 Nays 8 Absent 6
44		-	Senate Vote:Yeas 42 Nays 3 Absent 2
45		-	____________________________
46		-	Chief Clerk of the House
47		-	Received by the Governor at ________M. on _____________________________________, 2025.
48		-	Approved at ________M. on __________________________________________________, 2025.
49		-	____________________________
50		-	Governor
51		-	Filed in this office this ___________day of _______________________________________, 2025,
52		-	at ________ o’clock ________M.
53		-	____________________________
54		-	Secretary of State
	13	+	SECTION 1. AMENDMENT. Subsection 4 of section 57-51.1-03 of the North Dakota
	14	+	Century Code is amended and reenacted as follows:
	15	+	4.The first seventy-five thousandthree hundred thousand barrels of oil produced during
	16	+	the first eighteenthirty - six months after completion, from a well drilled and completed
	17	+	outside the Bakken and Three Forks formations, and ten miles [16.10 kilometers] or
	18	+	more outside an established field in which the industrial commission has defined the
	19	+	pool to include the Bakken or Three Forks formation, is subject to a reduced tax rate of
	20	+	two percent of the gross value at the well of the oil extracted under this chapter. The
	21	+	tax rate reduction under this subsection does not apply to a well located within the
	22	+	exterior boundaries of a reservation, a well located on trust properties outside
	23	+	reservation boundaries as defined in section 57 - 51.2 - 02, or a straddle well as defined
	24	+	in section 57 - 51.1 - 07.10 located on reservation trust land, unless a tribe makes an
	25	+	irrevocable election to opt - in to the tax rate reduction by providing written notice to the
	26	+	tax commissioner. If a tribe provides notice of its election to opt - in to the tax rate
	27	+	reduction, the tax commissioner shall apply the tax rate reduction beginning in the
	28	+	month of production after the notice is received by the tax commissioner.
	29	+	Page No. 1 25.1080.03000
	30	+	ENGROSSED HOUSE BILL NO. 1483
	31	+	FIRST ENGROSSMENT
	32	+	with Senate Amendments
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	53	+	21 Sixty-ninth
	54	+	Legislative Assembly
	55	+	SECTION 2. LEGISLATIVE MANAGEMENT STUDY - OIL EXTRACTION TAX
	56	+	EXEMPTION FOR PRODUCTION FROM STRIPPER WELLS . During the 2025-26 interim, the
	57	+	legislative management shall consider studying the oil extraction tax exemption for production
	58	+	from a stripper well property or an individual stripper well. The study must include consideration
	59	+	of the number of oil wells and amount of oil production qualifying for the exemption, the
	60	+	estimated fiscal impact of the exemption, and alternative tax policies for stripper well properties
	61	+	or stripper wells. The study may include input from the tax commissioner, the director of the
	62	+	department of mineral resources, and representatives of the oil and gas industry. The legislative
	63	+	management shall report its findings and recommendations, together with any legislation
	64	+	required to implement the recommendations, to the seventieth legislative assembly.
	65	+	SECTION 3. EFFECTIVE DATE. Section 1 of this Act is effective for taxable production
	66	+	beginning after June 30, 2025.
	67	+	Page No. 2 25.1080.03000
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