ND SB2319

Industrial Commission must certify on-reservation acreage ratios (trust lands and nontrust lands) to the Tax Commissioner by August 1, 2021, and annually by April 30, effective for taxable production beginning July 1 of each fiscal year.

Tax Commissioner publishes on-reservation acreage ratios by June 1 each year and certifies oil and gas gross production and extraction taxes from straddle wells to the State Treasurer, distinguishing between wells drilled before July 1, 2019 and those drilled on or after that date.

State Treasurer allocates monthly payments to tribal governing bodies for straddle wells (oil and gas wells outside reservation boundaries with laterals penetrating reservation boundaries) based on acreage ratios: 50% of taxes for pre-July 1, 2019 wells and 80% for post-July 1, 2019 wells on trust lands; 50% and 20% respectively on nontrust lands.

Tribes that accept payments forfeit the right to assess taxes, fees, or regulations on straddle wells or additional taxes on wells under chapter 57-51.2 agreements, which becomes void, and the State Treasurer ceases all distributions to the tribe.

Act applies to oil and gas tax revenue collections allocated by the State Treasurer after September 1, 2021.