ND SB2363

The Industrial Commission must annually certify to the tax commissioner which wells qualify as stripper wells on an individual well basis, rather than on a property basis.

Stripper well status is based on average daily oil production during the preceding calendar year: 10 barrels per day for wells 6,000 feet or less in depth, 15 barrels per day for wells deeper than 6,000 feet but not more than 10,000 feet, and 30 barrels per day for wells deeper than 10,000 feet.

Wells that do not actually produce oil during the qualifying period, including disposal wells, dry wells, spent wells, and shut-in wells, do not qualify for stripper well property exemption.

The Industrial Commission's certification of qualifying stripper wells must be submitted to the tax commissioner within 18 months after the end of the stripper well property's qualification period.

The Act is effective for taxable events occurring after June 30, 2011.