Vote Smart's Synopsis:

Vote to pass a bill that restructures the oil extraction tax rate.

Highlights:

• Reduces the oil extraction tax rate from 6.5 percent to 4.5 percent for wells completed after December 31, 2016, or for all wells if the average statewide daily production of oil exceeds 1 million barrels daily for 3 consecutive months (Sec. 5).

• Reduces the oil extraction tax rate by 2 percent on the first 75,000 barrels of oil produced during the first 18 months of production, except for wells within the Bakken and Three Forks formation (Sec. 7). 

• Specifies that a "stripper well" in the Bakken or Three Forks formation drilled and completed after June 30, 2011, is not exempt from the oil extraction tax (Sec. 6).

• Amends the definition of a “stripper well property” as a property with average daily production of oil that does not exceed 30 barrels per day, or 40 barrels per day in the Bakken and Three Forks formation (Sec. 3).

• Requires a well drilled and completed in the Bakken or Three Forks formation to annually certify to the tax commissioner the depth and daily oil production of the property (Sec. 1). 

Full Bill Text