"The Three Affiliated Tribes
and the state of North Dakota announced on Friday the signing of an oil and gas tax agreement that should pull the tribe from its current lull in oil production.
“This agreement should help open the doors to oil and gas exploration on the Fort Berthold Reservation,” said North Dakota Gov. John Hoeven. “The additional activity will provide economic development, jobs and revenue for the Three Affiliated Tribe and its members, while recognizing and maintaining tribal sovereignty. It's a win for the tribes, a win for the state's oil industry and a win for the state of North Dakota.”
TAT Chairman Marcus Wells said the agreement allows the tribe and state “to work together to provide more stability in the taxation of oil and gas in western North Dakota.”
The lack of a state-tribe tax agreement - and bureaucratic delays within the Interior Department - has paralyzed oil production and extraction on the Fort Berthold Reservation. Production activity should eventually match that on private lands, considering more than $70 million in oil lease bonuses have been paid to individual trust land owners since last November.
The tax agreement has been under negotiation for the last 18 months.
“It's good for development on the reservation and reverses some uncertainty, for a time period,” said Gray Powers, a spokesman for Simray Production Co. in Richardson, Texas. “The economics of development won't be suffering because of unequal taxation on the reservation or off the reservation.”"
Get the Story:
Jodi Rave: Tax agreement expected to boost tribal oil production
(The Missoulian 6/1)
Hoeven, Industry Officials Optimistic About Oil Tax Agreement
Jodi Rave - http://www.missoulian.com/jodirave