This bill amends several sections of the North Dakota Century Code to introduce a limited exemption for development incentive wells and to clarify existing provisions related to oil and gas production. Notably, it establishes a new definition for "development incentive well," which refers to wells spud after June 30, 2025, that utilize innovative drilling techniques and demonstrate the potential to enhance oil and gas recovery. The bill also provides a temporary exemption from gross production tax for the first 250,000 barrels of oil produced from these wells within the first 36 months of completion, contingent upon certification by the industrial commission.

Additionally, the bill modifies existing tax provisions, including the gross production tax payment schedule and exemptions for gas produced from enhanced oil recovery projects. It specifies that gas used for fuel in drilling operations is exempt from being considered as gas produced and saved. The effective date for the new provisions is set for taxable events occurring after June 30, 2025, with an expiration date for certain sections established as June 30, 2031.

Statutes affected:
INTRODUCED: 24-02-37.3, 54-27-19.4, 57-51.1-07.7, 57-51.1-07.8
Prepared by the Legislative Council staff for Representative Dockter: 57-51-02.6, 57-51-05, 57-51.1-01
Adopted by the Conference Committee: 57-51-02.6, 57-51-05, 57-51.1-01
Enrollment: 57-51-02.6, 57-51-05, 57-51.1-01