HB 1032 Summary

• Amends Section 57-51-15 of the North Dakota Century Code to modify gross production tax allocation for oil and gas revenues, effective through two different time periods with different allocation formulas.

• Increases the abandoned oil and gas well plugging and site reclamation fund cap from $75 million to $100 million in fund balance, while maintaining the annual cap at $7.5 million per fiscal year.

• Creates two separate tax allocation schemes: one effective through June 30, 2015 (allocating 4% of available revenues to the plugging fund), and another effective after June 30, 2015 (also allocating 4% but with adjusted fund caps).

• Restructures county revenue distributions after July 1, 2015 to include tiered percentages based on revenue thresholds and creates a new county infrastructure fund for township and school district impacts from oil and gas development.

• Makes the post-June 30, 2015 provisions contingent on the exemption under Section 57-51.1-03 becoming ineffective for new horizontal wells completed between July 1 and December 31, 2015.