ND HB1198

Establishes withholding requirement for remitters distributing oil and gas royalty payments to nonresidents at the highest marginal income tax rate, with exemptions for federal/state entities, federally recognized Indian tribes, publicly traded partnerships, and tax-exempt organizations.

Exempts remitters producing less than 350,000 barrels of oil or 500 million cubic feet of gas annually from withholding requirements but requires annual reporting of royalty payments exceeding specified dollar amounts.

Modifies oil extraction tax definitions to expand stripper well classifications and horizontal reentry wells, with updated production thresholds effective after June 30, 2013.

Amends Fort Berthold Reservation oil tax agreement to increase the Three Affiliated Tribes' share of nontrust land production taxes from 20 percent to 50 percent while capping the state's oil extraction tax at 6.5 percent for trust lands.

Requires legislative management to study long-term oil industry changes, production advances, and future tax policy with independent consultant assistance, reporting findings to the 64th legislative assembly.