ND SB2312

Governor may enter separate tax agreements with Three Affiliated Tribes, Standing Rock Sioux Tribe, and Turtle Mountain Band of Chippewa Indians regarding oil and gas exploration and production on their reservations and trust properties, with each agreement requiring legislative confirmation and expiring no later than 16 years after its effective date on March 31 of an odd-numbered year.

Tribes receive 80 percent of oil and gas gross production and oil extraction tax revenues from trust lands, with remaining exemptions divided evenly between tribe and state; tribes receive 20 percent of revenues from nontrust lands on reservations in lieu of tribal fees and taxes.

A 10-member tribal taxation issues committee is created during the 2019-20 interim, composed of the governor, lieutenant governor, tax commissioner, Indian affairs executive director, legislative leadership, and finance committee chairs to study tax agreements, tribal sovereignty issues, and revenue sharing models.

Amendments apply to all new oil and gas wells on which drilling commences after June 30, 2019, or the first day of the next month after an agreement is executed, whichever occurs later.

Section suspending the tribal and state relations committee remains effective through July 31, 2021.