ND tax accord nets $40M monthly for tribe, state

Published on NewsOK Modified: December 9, 2013 at 1:51 pm •  Published: December 9, 2013

BISMARCK, N.D. (AP) — A tax agreement that standardized the rules and spurred oil drilling on an American Indian reservation in North Dakota is bringing in more than $40 million monthly for the state and tribal members, up from zero five years ago, state Tax Department records show.

Since the accord between the Three Affiliated Tribes and the state was first signed in 2008, the number horizontal wells on the Fort Berthold Reservation jumped from one to more than 1,000. To date, the state has collected $445.4 million, with the tribe getting $315.3 million, data show.

The reservation, occupied by the Mandan, Hidatsa and Arikara tribes in the heart of North Dakota's booming oil patch, now accounts for nearly a third of all oil production in North Dakota.

"It's big," said Ryan Rauschenberger, North Dakota's deputy tax commissioner. "The reservation accounts for a huge portion of the state's production."

More than dollars, oil drilling has brought hope, jobs and business opportunities to long-impoverished tribal members who have struggled for more than a century on the million-acre reservation, said Fred Fox, vice chairman of the Three Affiliated Tribes.

"God gave us opportunity," Fox said. "We're grateful and thankful and we have to take advantage of what's going on."

The reservation contains portions of six counties, covering more than 1,500 square miles. About 4,500 of the approximately 12,000 tribal members live on the reservation, tribal officials say.

Prior to agreement with the state, little drilling occurred on the reservation due to complex tribal rules and uncertainty about taxes. The accord specifies that North Dakota's Department of Mineral Resources regulates reservation production.

Former Three Affiliated Tribes Chairman Marcus Levings and former Gov. John Hoeven signed the agreement in 2008 and agreed to a permanent extension of the accord in 2010. Under that agreement, North Dakota got 80 percent of tax collections from private land on the reservation and 50 percent of the taxes from tribal trust lands held in trust by the federal government to benefit the tribe and individual tribal members.

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