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 the criteria for exemptions related to gas produced from enhanced oil recovery projects. It specifies that the tax exemption does not apply to wells located on certain tribal lands unless a tribe opts in by providing written notice. The effective date for the provisions is set for taxable events occurring after June 30, 2025, with certain sections expiring on 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