Small Town News

Local Government

Oil Tax incentive expired on June 30

The Billings County Pioneer of Medora, North Dakota

- Advertisement -

BISMARCK — Tax Commissioner Ryan Rauschenberger on June 25 reminded North Dakota oil producers and purchasers that the oil tax incentive that became effective on Feb. 1 was to expire on June 30.

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,'" said 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 Jan. 1.2016 for all wells.

"As of Tuesday, June 23, 586 wells were completed under the incentive," Rauschenberger said.

Copyright 2015 The Billings County Pioneer, Medora, North Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

Original Publication Date: July 2, 2015

More from The Billings County Pioneer