The imposition of a pore space utilization tax and creation of a North Dakota disaster fund; and to provide an effective date.
The revenue generated from this tax will be allocated to the newly created North Dakota disaster fund, with the first five hundred million dollars credited specifically to it. The disaster fund will finance expenses associated with potential damages from pipelined substances, equipment for hazard response, and training related to pipeline safety, effectively bolstering the state's preparedness for potential disasters associated with such storage practices. This financial structure aims to ensure that the state is equipped to mitigate risks associated with underground storage and transport while fostering accountability among those responsible for such activities.
House Bill 1573 establishes a pore space utilization tax for substances transported for injection and permanent underground storage in North Dakota. Specifically, it imposes a tax of five dollars per ton on substances that are transported via a pipeline exceeding twenty-five miles in length, aimed at generating revenue from the underground storage practices. The tax is due monthly and requires detailed reporting and accountability from those subjected to the tax. Additionally, the bill empowers the tax commissioner with the authority to collect necessary information and enforce compliance through hearings and investigations.
The bill may face scrutiny regarding its implications for both the oil and gas industries and environmental safety regulations. Critics may argue that the tax could increase operational costs for companies engaged in substance transport and affect the economic viability of such operations. Furthermore, there are concerns about the adequacy of safety measures and regulatory frameworks surrounding the subterranean storage of potentially hazardous substances. As such, extensive discussions are expected to emerge around balancing economic interests with environmental safeguards.