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HB 1483

AN ACT to amend and reenact subsection 4 of section 57-51.1-03 of the North Dakota Century Code, relating to the oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; to provide for a legislative management study; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Dick Anderson and 9 co-sponsors

North Dakota reduces oil extraction taxes for newly drilled wells outside major formations to incentivize drilling diversification while commissioning a study on fiscal outcomes.

Filed with Secretary Of State 04/17
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Bill Summary · HB 1483

Legislative bill overview

HB 1483 modifies North Dakota's oil extraction tax rate for newly drilled wells outside the Bakken and Three Forks formations. The bill reduces the tax burden on these "non-Bakken" wells and establishes a legislative management study to evaluate the policy's effects.

Why is this important

Oil extraction taxes are a major revenue source for North Dakota's state budget. Tax rate adjustments directly impact both state funding for schools, infrastructure, and services, and the profitability of oil producers operating in the state. This incentive structure influences where companies choose to invest in drilling.

Potential points of contention

  • Revenue impact: Reducing extraction taxes lowers state revenue unless offset by increased production volume or other sources, affecting budget availability for public services
  • Bakken favoritism debate: The exemption for Bakken and Three Forks wells (the state's primary formations) may appear to disadvantage already-established major production areas or favor marginal wells
  • Subsidy concerns: Tax reductions function as indirect subsidies; critics may question whether government should incentivize specific drilling locations versus letting market forces determine investment

Compiled from official sources — confirm details with the bill’s official record.

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