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ND SB2397

Bill

Status

Passed

5/17/2025

Primary Sponsor

Mark Enget

Click for details

Origin

Senate

69th Legislative Assembly

AI Summary

  • Gas produced from enhanced oil recovery projects established after June 30, 2025 is exempt from gross production tax until all injected gas has been recovered from the reservoir

  • Creates a new "development incentive well" category for wells spud after June 30, 2025 that use innovative drilling or completion techniques to develop previously underdeveloped reserves

  • Exempts the first 250,000 barrels of oil produced during the first 36 months from development incentive wells drilled before July 1, 2028 from the oil extraction tax

  • Limits the number of certified development incentive wells per operator based on their well count: 4 wells for operators with 40-99 wells, 8 wells for operators with 100-149 wells, and 12 wells for operators with 150+ wells in the Bakken or Three Forks formations

  • Development incentive well provisions expire June 30, 2031; the act takes effect for taxable events after June 30, 2025

Legislative Description

The temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.

Last Action

Filed with Secretary Of State 05/06

6/11/2025

Committee Referrals

Finance and Taxation2/18/2025
Finance and Taxation1/27/2025

Full Bill Text

No bill text available