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NEWS
FOR IMMEDIATE RELEASE
January 13, 2010
Contact: Don Canton or Ryan Bernstein
701.328.2200
Vonnie Alberts
701.421.0601
HOEVEN, LEVINGS SIGN CONTINUANCE OF
STATE-TRIBAL OIL/GAS TAX AGREEMENT
BISMARCK, N.D. – Gov. John Hoeven and Three Affiliated Tribes Chairman Marcus D. Levings today signed a continuation of the State-Tribal Oil and Gas
Tax Agreement created to spur the production of oil and gas on the Fort Berthold Reservation. The signing took place during a ceremony held at the Three Affiliated Tribes administrative headquarters in New Town.
The initial agreement was signed by the Governor and Chairman in June 2008 to streamline the current two-tax system into one and stimulate business
activity for the tribes. After two years of increased oil and gas exploration and development on the reservation, the agreement will be continued indefinitely as a result of today’s signing.
“This agreement has helped open the doors to oil and gas exploration on the Fort Berthold Reservation, resulting in increased activity and revenue for
the state and the tribes,” said Hoeven. “This increased activity will help provide economic development, jobs, and revenue for the Three Affiliated Tribes and its members. Thank you to Chairman Levings, the Tribal Council, state legislators and everyone who
helped make this historic agreement and its continuation possible.”
Before the agreement, only one well existed on trust land. Since the agreement, 160 new wells have been established on the Fort Berthold Reservation,
with 40 of those new wells located on trust lands. The new wells have produced more than 1.4 million barrels of oil, averaging about 6,200 barrels per day. The agreement has generated more than $18 million for the tribes and the state.
“Through this present agreement, both the tribe and the state are able to work together to provide more stability in the taxation of oil and gas in
western North Dakota,” said Levings. “The revenue from this particular tax agreement has assisted with funding the improvement of the Three Affiliated Tribes roads system, health care and law enforcement programs.”
More drilling is expected in the future, with the approval of 32 drilling permits and more than 200 drilling and spacing units on trust lands. The wells
are expected to produce oil for up to 35-40 years. The tax is paid by oil production companies and allocated between the state, the tribes and political subdivisions, including counties.
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