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. 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 amends the gross production tax regulations, allowing for a temporary exemption from this tax for the first 250,000 barrels of oil produced from a certified development incentive well within the first 36 months of completion.

Additionally, the bill outlines the criteria for operators to qualify for this exemption, including the number of wells they operate within specific formations and the time frame in which these wells were drilled or acquired. It specifies that the tax exemption does not apply to wells located on certain tribal lands unless a tribe opts in. The effective date for the provisions of this bill is set for taxable events occurring after June 30, 2025, with an expiration date for specific sections set for 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