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.

The oil extraction tax rate reduction now applies to the first 75,000,000 barrels of oil produced from new wells outside the Bakken and Three Forks formations, with specific exclusions for reservation lands and trust properties unless tribes opt-in.

A legislative management study was added to examine the oil extraction tax exemption for stripper wells, including analysis of production numbers, fiscal impact, and alternative tax policies.

The effective date for the tax rate reduction was set for taxable production beginning after June 30, 2025.

New provisions require tribes to provide written notice to the tax commissioner to opt-in to the tax rate reduction, with the reduction applying beginning in the month after notice is received.