2014 North Dakota Century Code Title 57 Taxation Chapter 57-51.2 Three Affiliated Tribes Oil and Gas Agreement
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CHAPTER 57-51.2
THREE AFFILIATED TRIBES OIL AND GAS AGREEMENT
57-51.2-01. Authority to enter agreements.
The governor, in consultation with the tax commissioner, may enter agreements with the
Three Affiliated Tribes relating to taxation and regulation of oil and gas exploration and
production within the boundaries of the Fort Berthold Reservation.
57-51.2-02. Agreement requirements.
An agreement under this chapter is subject to the following:
1. The only taxes subject to agreement are the state's oil and gas gross production and
oil extraction taxes attributable to production from wells located within the exterior
boundaries of the Fort Berthold Reservation.
2. The state's oil and gas gross production tax under chapter 57-51 must apply to all
wells located within the Fort Berthold Reservation.
3. The state's oil extraction tax under chapter 57-51.1 as applied to oil and gas
production attributable to trust lands on the Fort Berthold Reservation may not exceed
six and one-half percent but may be reduced through negotiation between the
governor and the Three Affiliated Tribes.
4. Any exemptions for oil and gas production from trust lands under chapters 57-51 and
57-51.1 do not apply to production within the boundaries of the Fort Berthold
Reservation except as otherwise provided in the agreement.
5. The allocation of revenue from oil and gas gross production and oil extraction taxes on
the Fort Berthold Reservation must be as follows:
a. Production attributable to trust lands. All revenues and exemptions from all oil and
gas gross production and oil extraction taxes attributable to production from trust
lands on the Fort Berthold Reservation must be evenly divided between the tribe
and the state.
b. All other production. The tribe must receive fifty percent of the total oil and gas
gross production and oil extraction taxes collected from all production attributable
to nontrust lands on the Fort Berthold Reservation in lieu of the application of the
Three Affiliated Tribes' fees and taxes related to production on such lands. The
state must receive the remainder.
c. The state's share of the oil and gas gross production tax revenue as divided in
subdivisions a and b is subject to distribution among political subdivisions as
provided in chapter 57-51.
6. An oil or gas well that is drilled and completed during the time of an agreement under
this chapter must be subject to the terms of the agreement for the life of the well.
7. The Three Affiliated Tribes must agree not to impose a tribal tax or any fee on future
exploration and production of oil and gas on the Fort Berthold Reservation during the
term of the agreement.
8. To address situations in which the tax commissioner refunds taxes to a taxpayer, the
agreement must allow the tax commissioner to offset future distributions to the tribe.
9. The tax commissioner must retain authority to administer and enforce chapters 57-51
and 57-51.1 as applied to wells subject to any agreement authorized by this chapter.
10. An oil or gas well that is drilled and completed during the time an agreement under this
chapter is in effect is subject to state regulatory provisions for the life of the well in
addition to any other applicable regulatory provisions.
11. The federal district court for the western division of North Dakota is the venue for any
dispute arising from a revenue-sharing agreement between the state and the Three
Affiliated Tribes.
12. The agreement must require that the Three Affiliated Tribes report annually to the
budget section of the legislative management and that the report:
a. Identifies projects totaling investment of at least ten percent of tribal oil and gas
gross production and oil extraction tax receipts of the tribe for that year in
essential infrastructure.
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b.
At a minimum, informs the budget section of tribal investments in essential
infrastructure and fees, expenses, and charges the tribe imposes on the oil
industry.
57-51.2-03. Statutory inconsistencies superseded.
This chapter supersedes any inconsistent provisions of chapters 57-51 and 57-51.1 and any
inconsistent provisions of state law relating to regulatory provisions and state law relating to oil
and gas exploration and production and administration of those provisions.
57-51.2-04. Reports.
After entering an agreement under this chapter, the governor shall file a report with the
legislative council describing the agreement's negotiations and terms and thereafter shall file
biennial reports with the legislative council describing the agreement's implementation and any
difficulties in its implementation.
57-51.2-05. Inapplicability of chapter 54-40.2.
Chapter 54-40.2 does not apply to any agreement entered under chapter 57-51.2.
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