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ND SB2309
Bill
Status
Introduced
1/24/2013
Primary Sponsor
Stanley Lyson
Click for details
AI Summary
- Creates a temporary exemption from North Dakota's oil extraction tax for oil extracted before January 1, 2026, if transported from production point to refinery by truck or gathering line
- Exemption applies only in months when the "trigger crack spread" ($11) exceeds the "average crack spread" (the difference between refined oil input costs and refined product values)
- Defines "average crack spread" calculation using West Texas Intermediate prices at Cushing, Oklahoma, adjusted for Bakken crude differentials and a $4 per barrel transportation cost
- Specifies valuation formulas for refined products including atmospheric tower bottoms ($16.50/barrel transport cost), diesel (blended price at Minot/Mandan, North Dakota and Glendive, Montana), and naphtha (WTI price plus $8)
- Effective for taxable events after June 30, 2013
Legislative Description
An exemption from the oil extraction tax; and to provide an effective date.
Last Action
Second reading, failed to pass, yeas 2 nays 45
2/26/2013
Committee Referrals
Finance and Taxation1/24/2013
Full Bill Text
No bill text available