Vote Smart's Synopsis:

Vote to adopt a conference report that reduces the oil extraction tax rate.

Highlights:

• Reduces the oil extraction tax rate, which is equal to a percentage of the gross value of extracted oil, for wells drilled and completed after June 30, 2013 from 6.5 percent to 6 percent (Sec. 5).

• Exempts extractions from individual stripper wells from the oil extraction tax (Sec. 6).

• Defines “stripper well” as a horizontal well completed after June 30, 2013 with average daily production not exceeding the following (Sec. 4):
• 10 barrels per day for wells up to 6,000 feet in depth;
• 15 barrels per day for wells between 6,000 and 10,000 feet in depth;
• 30 barrels per day for wells over 10,000 feet in depth and located outside the Bakken and Three Forks formations; or
• 35 barrels per day for wells over 10,000 feet in depth and located inside the Bakken and Three Forks formations.

• Requires all revenues and exemptions from oil and gas production and oil extraction taxes from nontrust lands on the Fort Berthold Reservation to be divided evenly between the tribe and the state (Sec. 8).

• Requires the Three Affiliated Tribes to submit an annual report to the budget section of the legislative management in order to report tribal investments in essential infrastructure and any fees, expenses, and charges that the tribe imposes on the oil industry (Sec. 8).

Full Bill Text