Burgum signs bill to share tax revenue with MHA Nation from oil wells straddling reservation boundary

State News

Gov. Doug Burgum signs SB 2319 | Courtesy: Gov. Doug Burgum

Gov. Doug Burgum on Wednesday signed a bill to allow the state and MHA Nation to share tax revenue from oil wells that straddle the boundary of the Fort Berthold Reservation.

Senate Bill 2319 shares tax revenue from wells that are located outside of the reservation but horizontally drill into the reservation, commonly known as straddle wells, according to a press release.

Tax revenue from the portion of the well that produces from inside the reservation will be split 50/50 for all existing wells.

Wells drilled after July 1, 2019, will split their on-reservation tax revenues 80 percent to the tribe and 20 percent to the state, depending on whether the minerals are tribal trust or fee, which is consistent with the existing tax agreement.

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