House Bill No. 1467 Summary

• Amends North Dakota oil extraction tax exemptions and creates two separate regulatory frameworks effective before and after June 30, 2013.

• For taxable events through June 30, 2012, maintains existing exemptions for vertical wells (15 months), horizontal wells (24 months), stripper wells, and secondary/tertiary recovery projects with trigger provisions tied to crude oil prices.

• For taxable events after June 30, 2013, modifies exemption for horizontal wells in the Bakken formation drilled after June 30, 2007 to provide a reduced 2% tax rate on first 75,000 barrels produced during the first 18 months.

• Implements price-triggered exemption provisions that become ineffective when average crude oil price exceeds the trigger price for five consecutive months, then reinstate if prices fall below trigger price for five consecutive months.

• Bill becomes effective for taxable events after June 30, 2011 and expires June 30, 2013.