Senate Bill No. 2348 Summary

• Amends Section 57-51.2-02 of the North Dakota Century Code to establish requirements for oil and gas tax agreements between the state and the Three Affiliated Tribes on the Fort Berthold Indian Reservation.

• State oil and gas gross production tax applies to all wells on the reservation, while oil extraction tax on trust lands may not exceed the total state tax rate but can be reduced through negotiation with the tribes.

• Revenue from trust lands is divided with the tribe receiving 80 percent and the state receiving 20 percent; the tribe receives 20 percent of taxes from nontrust lands in lieu of tribal taxes and fees.

• Wells drilled during an agreement term are subject to agreement terms for the life of the well, and the tribes must agree not to impose additional tribal taxes or fees during the agreement term unless otherwise specified.

• The federal district court for the western division of North Dakota has venue for disputes arising from revenue-sharing agreements; the act is effective for taxable events occurring after June 30, 2011.