SB 2397: AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, relating to a limited exemption for development incentive wells; to amend and reenact sections 57-51-02.6, 57-51-05, and 57-51.1-01 of the North Dakota Century Code, relating to the temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.
SB 2397 status: Introduced — Filed with Secretary Of State 05/06 (updated Jun 11, 2025).
What this bill does
Overall score
Bill summary
OfficialRelating to a limited exemption for development incentive wells; to amend and reenact sections 57‑51‑02.6, 57‑51‑05, and 57‑51.1‑01 of the North Dakota Century Code, relating to the temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced fro...
Key analysis
Impact analysis
Environment
Benefits
- Incentivizes technology to reduce gas flaring
- Encourages efficient resource capture
Risks
- Promotes continued fossil fuel extraction
- Potential environmental costs of enhanced oil recovery
Economy
Benefits
- Encourages development of marginal oil/gas wells
- Provides tax clarity for energy investment
Risks
- Reduces state gross production tax collections
- Opportunity cost for public infrastructure funding
Society
Benefits
- Supports state economic stability via industry growth
Risks
- Decreased tax revenue may limit public service funding
How trustworthy & consequential it is
Source
OpenStates
Confidence
lowlow
Analysis status
OpenStates summary
Potential fiscal exposure due to tax exemptions
Analysis based solely on abstract; full legislative text not provided
Where it stands
Introduced
CurrentFiled with Secretary Of State 05/06
Committee
UpcomingFloor
UpcomingGovernor
UpcomingEnacted
UpcomingHow it affects your district
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