ND SB2370

Natural gas gathering pipelines and collection systems placed in service between January 1, 2013, and December 31, 2017, are exempt from property taxes in the first year of operation, with declining valuations in subsequent years: 75% reduction year two, 50% reduction year three, and 25% reduction year four.

After the fourth taxable year of operation, gathering and collection systems are subject to full property taxes with no exemption.

"Natural gas gathering pipeline" is defined as an underground pipeline designed to transport natural gas produced with oil and not subject to public service commission jurisdiction, and includes new construction or substantial expansion (20% or greater capacity increase).

Operators collecting natural gas at well sites using gathering lines, electrical generators, or specified collection systems receive a one-year exemption from oil and gas gross production taxes beginning from the day natural gas is first collected.

Section 1 is effective for taxable years beginning after December 31, 2012; Section 2 is effective for taxable events occurring after June 30, 2013.