North Dakota § 57-51.1-02 Imposition of oil extraction tax

North Dakota Statutes

§ 57-51.1-02 — Imposition of oil extraction tax

North Dakota § 57-51.1-02

Title 57Taxation

Ch. 57-51.1Oil Extraction Tax

This text of North Dakota § 57-51.1-02 (Imposition of oil extraction tax) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 57-51.1-02 (2026).

Text

1.There is hereby imposed an excise tax, to be known as the "oil extraction tax", upon the activity in this state of extracting oil from the earth, and every owner, including any royalty owner, of any part of the oil extracted is deemed for the purposes of this chapter to be engaged in the activity of extracting that oil. The rate of tax is five percent of the gross value at the well of the oil extracted.

2.Subject to subsection 3, for a well located within the exterior boundaries of a reservation, a well located on trust properties outside reservation boundaries as defined in section 57-51.2-02, or a straddle well located on reservation trust land as defined in section 57-51.1-07.10, if the average price of a barrel of crude oil exceeds the trigger price of ninety dollars for each month

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1. There is hereby imposed an excise tax, to be known as the "oil extraction tax", upon
the activity in this state of extracting oil from the earth, and every owner, including any
royalty owner, of any part of the oil extracted is deemed for the purposes of this
chapter to be engaged in the activity of extracting that oil. The rate of tax is five
percent of the gross value at the well of the oil extracted.
2. Subject to subsection 3, for a well located within the exterior boundaries of a
reservation, a well located on trust properties outside reservation boundaries as
defined in section 57-51.2-02, or a straddle well located on reservation trust land as
defined in section 57-51.1-07.10, if the average price of a barrel of crude oil exceeds
the trigger price of ninety dollars for each month in any consecutive three-month
period, then the rate of tax on oil extracted from all taxable wells is six percent of the
gross value at the well of the oil extracted until the average price of a barrel of crude
oil is less than the trigger price of ninety dollars for each month in any consecutive
three-month period, in which case the rate of tax reverts to five percent of the gross
value at the well of the oil extracted. By December thirty-first of each year, the tax
commissioner shall determine an indexed trigger price under this section by applying
to the current trigger price an adjustment equal to the percentage rate of change of the
producer price index for industrial commodities as calculated and published by the
United States department of labor, bureau of labor statistics, for the twelve months
ending June thirtieth of that year and the indexed trigger price so determined is the
trigger price for the following calendar year. For purposes of this subsection, "average
price" of a barrel of crude oil means the monthly average of the daily closing price for a
barrel of west Texas intermediate cushing crude oil, as those prices appear in the Wall
Street Journal, midwest edition. When computing the monthly average price, the most
recent previous daily closing price must be considered the daily closing price for the
days on which the market is closed.
3. A tribe may make an irrevocable election to opt-out of the increased rate of tax
provided in subsection 2 by providing written notice to the tax commissioner. If a tribe
provides notice under this subsection, the rate of tax on oil extracted from taxable
wells is equal to the rate of tax provided in subsection 1, beginning in the month of
production after notice under this subsection is received by the tax commissioner.