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ND SB2309

Bill

Status

Introduced

1/24/2013

Primary Sponsor

Stanley Lyson

Click for details

Origin

Senate

63rd Legislative Assembly

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