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Rauschenberger: Oil Tax Incentive for Completed Wells Expires June 30th

Thursday, June 25, 2015

Contact: Jen Raab, Public Information Officer, 701.328.3039

BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger reminds North Dakota oil producers and purchasers that the oil tax incentive that became effective on February 1st will expire on June 30th. This incentive, also known as the "small trigger," lowered the oil extraction tax (OET) rate from 6.5 percent to 2 percent on the first 75,000 barrels or the first $4.5 million of gross value of oil produced.

"The small trigger was in place for five months following one month of low average oil price," stated Rauschenberger. "It statutorily expires on June 30, 2015."

Wells completed during the small trigger timeframe will maintain the 2 percent OET rate through December 2015, or up to the gross value or barrel amounts. The new maximum OET rate of 5 percent, passed by the 2015 Legislature, becomes effective on January 1, 2016 for all wells.

"As of Tuesday, June 23rd, 586 wells were completed under the incentive," Rauschenberger said. "This does not include the last few days in June, so that number will likely increase before the end of the month."

For final small trigger statistics after June 30th, contact the North Dakota Office of State Tax Commissioner at 701.328.3402.

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Ryan Rauschenberger
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News

Sign up to receive new releases via email.  Select the "ND Tax News" list.

 

Rauschenberger: Oil Tax Incentive for Completed Wells Expires June 30th

Thursday, June 25, 2015

Contact: Jen Raab, Public Information Officer, 701.328.3039

BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger reminds North Dakota oil producers and purchasers that the oil tax incentive that became effective on February 1st will expire on June 30th. This incentive, also known as the "small trigger," lowered the oil extraction tax (OET) rate from 6.5 percent to 2 percent on the first 75,000 barrels or the first $4.5 million of gross value of oil produced.

"The small trigger was in place for five months following one month of low average oil price," stated Rauschenberger. "It statutorily expires on June 30, 2015."

Wells completed during the small trigger timeframe will maintain the 2 percent OET rate through December 2015, or up to the gross value or barrel amounts. The new maximum OET rate of 5 percent, passed by the 2015 Legislature, becomes effective on January 1, 2016 for all wells.

"As of Tuesday, June 23rd, 586 wells were completed under the incentive," Rauschenberger said. "This does not include the last few days in June, so that number will likely increase before the end of the month."

For final small trigger statistics after June 30th, contact the North Dakota Office of State Tax Commissioner at 701.328.3402.

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