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