Legislative Assembly HOUSE BILL NO. 1358
of North Dakota
Representatives Kempenich, Christensen, Mock, Steiner, Trottier
Senators Bekkedahl, Dwyer, Schaible
1 A BILL for an Act to amend and reenact section 54-44-16 of the North Dakota Century Code,
2 relating to oil and gas tax revenue hedging.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 54-44-16 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 54-44-16. Oil and gas tax revenue put optionshedging.
7 Upon request of the director of the office of management and budget and upon approval by
8 the industrial commission, the state investment boardBank of North Dakota may purchase oil
9 put options and enter swap agreements or any other hedging strategies with designated
10 counterparts approved by the industrial commission for the office of management and budget.
11 The purchase of put optionsexecution of any hedging strategies must be designed to offset
12 reduced state general fund oil and gas tax revenues due to oil and gas prices falling below
13 selected levels included in the legislative revenue forecast at the conclusion of the most
14 recently adjourned regular or special session of the legislative assembly. Put options may be
15 purchased only at such times that the purchase assures that oil tax revenues plus the revenues
16 from the sale of put options will be in excess of the oil tax revenues estimated for that level of
17 production by the most recently adjourned legislative assembly. The office of management and
18 budget shall report any purchases of put optionsexecution of hedging strategies to the budget
19 section of the legislative management.
Page No. 1 21.0851.01000Statutes affected: