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State and Tribal oil taxes discussed

Amendments to a 2008 oil tax revenue agreement are being discussed between Three Affiliated Tribe officials and state legislators. Under the 2008 agreement, any drilling on the Fort Berthold Reservation trust lands would follow the same tax structure as drilling on the rest of the state with the state and tribe equally dividing the revenue. For fee lands (privately owned lands on the reservation),
the state receives 80 percent and the tribes 20 percent. The 2008 agreement also included an exemption in which the state would receive 100 percent of the oil tax revenue after five years, which, because of the age of the agreement, is now being enacted. The new proposal would eliminate the exemption and equally split the oil tax revenues, a proposal supported by major oil companies that are operating on the reservation. Prior to 2008, no drilling took place on the reservation due to unstable and unpredictable tax and regulatory structure, according to the North Dakota Petroleum Council. See the article in the Grand Forks Herald. (may require registration)

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