Energy (Oil & Gas)

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.

Relating to standards for well drilling and installation of water well pumps, pitless units, and monitoring wells, a boards review task force, a water well contractors advisory board, and requirements for firms engaged in water well work, installation of water well pump and pitless units, monitoring well work, and drilling of geothermal systems; to amend and reenact section 6‑09‑43, subdivision j of subsection 2 of section 15.1‑01‑04, sections 15.1‑07‑33 and 23‑35‑02.2, subsection 1 of section 50‑06‑01.4, sections 52‑02‑02 and 52‑02‑08, subsection 1 of section 54‑07‑01.2, sections 54‑54‑05, 54‑59‑26, 54‑59‑27, 54‑59‑34, 54‑59‑36, 54‑59‑37, 54‑59‑39, 61‑03‑01.3, 61‑04.1‑03, 61‑04.1‑08, 61‑04.1‑09, 61‑04.1‑12, 61‑04.1‑14, 61‑04.1‑15, 61‑04.1‑16, 61-04.1‑17, 61‑04.1‑18, 61‑04.1‑19, 61‑04.1‑20, 61‑04.1‑21, 61‑04.1‑33, 61‑04.1‑34, 61‑04.1‑37, 61‑04.1‑38, and 61‑04.1‑39, and subdivision a of subsection 2 of section 65‑02‑03.1 of the North Dakota Century Code, relating to the wastewater recycling treatment guide, boards and commissions, the unemployment insurance advisory council, gubernatorial appointments, the committee on aging, health information technology advisory committee, statewide longitudinal data system committee, atmospheric resource board, the department of health and human services, the council on the arts, the state engineer, the superintendent of public instruction, job service North Dakota, and workforce safety and insurance coordinating committee; to repeal chapter 8‑11.1, sections 12‑48‑06.1, 15.1‑37‑05, 15.1‑37‑06, and 15.1‑37‑08, chapter 17‑07, sections 19‑24.1‑38, 19‑24.1‑39, and 23‑35‑02.3, chapters 34‑16 and 43‑35, sections 50‑06‑05.6, 50‑06.4‑10, 50‑11.1‑25, 50‑11.1‑26, 50‑11.1‑27, 52‑02‑07, 54‑34.3‑10, 54‑54‑10, 54‑59‑25, 54‑59‑33, 54‑59‑35, 54‑59‑38, 54‑60‑25, 55‑01‑13, 55‑01‑14, 61‑04.1‑04, 61‑04.1‑05, 61‑04.1‑06, 61‑04.1‑07, and 61‑04.1‑10, and chapter 61‑36 of the North Dakota Century Code, relating to occupational and professional boards, the midwest interstate passenger rail compact, prison industry advisory committee, energy policy commission, medical marijuana advisory committee, onsite wastewater recycling technical committee, state board of water well contractors, committee on aging, brain injury advisory council, early childhood council, unemployment insurance advisory council, commission on the status of women, health information technology advisory committee, poet laureate nominating board, rural development council, America 250 commission, atmospheric resource board, and Devils Lake outlet management advisory committee; to provide for a legislative management report; to provide an effective date; and to provide an expiration date.

Relating to a rail revolving loan fund and uses of the abandoned oil and gas well plugging and site reclamation fund; to amend and reenact subsection 7 of section 6‑08.1‑02 and sections 6‑09‑35, 6‑09‑46.2, 6‑09.7‑05, 6‑09.14‑04, and 49‑17.1‑02.1, subsection 1 of section 54‑17‑40, and subdivision a of subsection 4 of section 54‑17.7‑04 of the North Dakota Century Code, and section 15 of chapter 14 of the 2023 Session Laws, relating to confidential and exempt records of the Bank of North Dakota, the rebuilders loan program, loan guarantees through the strategic investment and improvements fund, interest rate buydown limits for the partnership in assisting community expansion fund, department of transportation review and approval of rail projects, uses of the housing incentive fund, North Dakota pipeline borrowing authority, and a salt cavern underground energy storage research project; to repeal section 3 of Senate Bill No. 2188, as approved by the sixty-ninth legislative assembly, relating to a transfer from the strategic investment and improvements fund to the clean sustainable energy fund; to provide a deficiency appropriation; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide for a legislative management report; to provide for a report; to provide an effective date; and to declare an emergency.

Relating to the evaluation of economic development tax incentives, the carbon dioxide capture and injection use tax exemption, and the ad valorem property tax exemption for carbon dioxide capture equipment used for enhanced oil recovery and secure geologic storage; to repeal sections 57‑06‑17.1, 57‑06‑17.2, and 57‑39.2‑04.14 of the North Dakota Century Code, relating to the carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.

HB 1292 would remove carbon dioxide pipelines from being classified as "common pipeline carriers" under North Dakota law. This change directly affects owners and operators of CO2 pipelines by exempting them from requirements to transport any customer's CO2 without discrimination at set rates. The bill amends sections 49-19-01, 49-19-11, and 49-19-19 of the North Dakota Century Code to exclude CO2 pipelines from the definition and rules governing common carriers. This policy shift modifies how CO2 pipeline operations are regulated, separating them from traditional oil/gas pipeline common carrier obligations.

Relating to the oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; to provide for a legislative management study; and to provide an effective date.

Relating to the state share of oil and gas tax revenue allocations, the municipal infrastructure fund, and the county and township infrastructure fund.

HB 1275 proposes a one-time $5 million appropriation from North Dakota's strategic investment fund to create a natural gas infrastructure grant program administered by the Industrial Commission. The program would provide grants exclusively to cities with populations under 10,000 for installing natural gas pipelines and related infrastructure. Funds are limited to the 2025-2027 biennium and cannot be used for other purposes, with the Industrial Commission responsible for setting eligibility rules and maximum grant amounts. The bill does not affect individuals or larger municipalities outside the specified population threshold.

SB 2360 directs North Dakota's legislature to conduct a study during the 2025-26 interim on developing geothermal energy within the state. The study must evaluate North Dakota's geology for geothermal potential, support startup companies in the sector, explore using geothermal energy in existing oil and gas wells, and identify other opportunities for geothermal development. It does not create new laws but requires the legislature to report findings and any needed legislation to the next legislative assembly. This study directly affects state lawmakers and future energy policy decisions, focusing on assessing feasibility before potential policy action.

HCR 3016 is a non-binding resolution passed by North Dakota's legislature urging state and federal officials to maintain policies supporting carbon capture technology and CO₂ utilization for enhanced oil recovery. It highlights that CO₂ from energy and agriculture facilities can unlock additional oil production in the Bakken Formation - potentially adding billions of barrels - and supports North Dakota's oil industry (which contributes $8 million daily in tax revenue) and coal sector (12,000 jobs). The resolution specifically asks the federal government to incentivize CO₂ use in oil recovery and partner with North Dakota to advance these technologies. It does not create new laws but encourages existing policy continuity to boost energy security and economic benefits.