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ND SB2397
Bill
Status
5/17/2025
Primary Sponsor
Mark Enget
Click for details
AI Summary
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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
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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
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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
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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
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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