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57-51.2 Three Affiliated Tribes Oil and Gas Agreement

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CHAPTER 57-51.2THREE AFFILIATED TRIBES OIL AND GAS AGREEMENT57-51.2-01. Authority to enter agreements. The governor, in consultation with the taxcommissioner, may enter agreements with the Three Affiliated Tribes relating to taxation and<br>regulation of oil and gas exploration and production within the boundaries of the Fort Berthold<br>Reservation.57-51.2-02. Agreement requirements. An agreement under this chapter is subject tothe following:1.The only taxes subject to agreement are the state's oil and gas gross production and<br>oil extraction taxes attributable to production from wells located within the exterior<br>boundaries of the Fort Berthold Reservation.2.The state's oil and gas gross production tax under chapter 57-51 must apply to all<br>wells located within the Fort Berthold Reservation.3.The state's oil extraction tax under chapter 57-51.1 as applied to oil and gas<br>production attributable to trust lands on the Fort Berthold Reservation may not<br>exceed six and one-half percent but may be reduced through negotiation between<br>the governor and the Three Affiliated Tribes.4.Any exemptions for oil and gas production from trust lands under chapters 57-51<br>and 57-51.1 do not apply to production within the boundaries of the Fort Berthold<br>Reservation except as otherwise provided in the agreement.5.The allocation of revenue from oil and gas production taxes on the Fort Berthold<br>Reservation must be as follows:a.Production attributable to trust lands. All revenues and exemptions from all oil<br>and gas gross production and oil extraction taxes attributable to production<br>from trust lands on the Fort Berthold Reservation must be evenly divided<br>between the tribe and the state.b.All other production. The tribe must receive twenty percent of the total oil and<br>gas gross production taxes collected from all production attributable to nontrust<br>lands on the Fort Berthold Reservation in lieu of the application of the Three<br>Affiliated Tribes' fees and taxes related to production on such lands. The state<br>must receive the remainder.c.The state's share of the revenue as divided in subdivisions a and b is subject to<br>distribution among political subdivisions as provided in chapters 57-51 and<br>57-51.1.6.An oil or gas well that is drilled and completed during the time of an agreement<br>under this chapter must be subject to the terms of the agreement for the life of the<br>well.7.The Three Affiliated Tribes must agree not to impose a tribal tax or any fee on future<br>production of oil and gas on the Fort Berthold Reservation during the term of the<br>agreement.8.To address situations in which the tax commissioner refunds taxes to a taxpayer, the<br>agreement must allow the tax commissioner to offset future distributions to the tribe.Page No. 19.The tax commissioner must retain authority to administer and enforce chapters<br>57-51 and 57-51.1 as applied to wells subject to any agreement authorized by this<br>chapter.10.An oil or gas well that is drilled and completed during the time an agreement under<br>this chapter is in effect is subject to state regulatory provisions for the life of the well<br>in addition to any other applicable regulatory provisions.11.The federal district court for the western division of North Dakota is the venue for any<br>dispute arising from a revenue-sharing agreement between the state and the Three<br>Affiliated Tribes.57-51.2-03.Statutory inconsistencies superseded.This chapter supersedes anyinconsistent provisions of chapters 57-51 and 57-51.1 and any inconsistent provisions of state<br>law relating to regulatory provisions and state law relating to oil and gas exploration and<br>production and administration of those provisions.57-51.2-04. Reports. After entering an agreement under this chapter, the governor shallfile a report with the legislative council describing the agreement's negotiations and terms and<br>thereafter shall file biennial reports with the legislative council describing the agreement's<br>implementation and any difficulties in its implementation.57-51.2-05. Inapplicability of chapter 54-40.2. Chapter 54-40.2 does not apply to anyagreement entered under chapter 57-51.2.Page No. 2Document Outlinechapter 57-51.2 three affiliated tribes oil and gas agreement