# North Dakota SB 2397: AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, 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.

North Dakota SB 2397, AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, 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., is a 2025 Regular Session Senate bill sponsored by Mark Enget (Republican); status signed, last action 2025-06-11 (Filed with Secretary Of State 05/06) (as of 2026-10-19).

- Canonical: https://policyrisk.com/state-bill/ND-SB2397-202501
- As of: 2026-10-19
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: North Dakota SB 2397
- State: North Dakota
- Session: 2025 Regular Session
- Title: AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, 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.
- Status: signed
- Chamber: Senate
- Introduced: 2025-01-27
- Last action: 2025-06-11, Filed with Secretary Of State 05/06
- Sponsor: Mark Enget (Republican)
- Cosponsors: 3
- Touches household money: no
- Roll calls: 4 (262 yes, 14 no in all)
- Economic provisions PRIA read: 3

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Gas operators get recovery project tax breaks: benefit, low. Beginning July 1, 2025, North Dakota exempts gas from qualifying enhanced oil recovery projects from gross production tax. The Industrial Commission must establish the project after June 30, 2025. Projects must use gas, alone or with other fluids, for temporary recovery tests or extended fieldwide…
- Oil operators get innovative well tax breaks: benefit, low. Beginning July 1, 2025, certified North Dakota development incentive wells receive an oil extraction tax exemption. It covers the first 250,000 barrels produced during the first 36 months after completion. Drilling must start after June 30, 2025, and drilling and completion must finish before July…
- Operators pay less tax on generator gas: benefit, low. Beginning July 1, 2025, North Dakota exempts gas collected and used to power an electrical generator at a well site. The gas tax exemption lasts two years and 30 days from the well's first production. There is no minimum share of the well's gas that the generator must consume. A separate qualifying…

## Sponsors and cosponsors

- Sponsor: Mark Enget (Republican), Senate
- Cosponsor: Keith Kempenich (Republican), House
- Cosponsor: Jonathan Sickler (Republican), Senate
- Cosponsor: Ronald Sorvaag (Republican), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2025-05-01 | Senate | Second reading, passed, yeas 42 nays 4 | pass | 42 | 4 |   |
| 2025-05-01 | House | Second reading, passed as amended, yeas 85 nays 5 | pass | 85 | 5 |   |
| 2025-04-21 | House | Second reading, passed as amended, yeas 89 nays 5 | pass | 89 | 5 |   |
| 2025-02-04 | Senate | Second reading, passed, yeas 46 nays 0, Emergency clause carried | pass | 46 | 0 |   |

## Actions (25)

- 2025-06-11: Filed with Secretary Of State 05/06 (House)
- 2025-05-17: Signed by Governor 05/05 (Senate)
- 2025-05-02: Sent to Governor (Senate)
- 2025-05-02: Signed by President (Senate)
- 2025-05-02: Signed by Speaker (House)
- 2025-05-01: Second reading, passed as amended, yeas 85 nays 5 (House)
- 2025-05-01: Conference committee report adopted (House)
- 2025-05-01: Reported back from conference committee, in place of, placed on calendar (House)
- 2025-05-01: Second reading, passed, yeas 42 nays 4 (Senate)
- 2025-05-01: Conference committee report adopted (Senate)
- 2025-04-29: Reported back from conference committee, in place of, placed on calendar (Senate)
- 2025-04-25: Conference committee appointed Dockter Porter J. Olson (House)
- 2025-04-24: Conference committee appointed Patten Rummel Sickler (Senate)
- 2025-04-24: Refused to concur (Senate)
- 2025-04-22: Returned to Senate (12) (Senate)
- 2025-04-21: Second reading, passed as amended, yeas 89 nays 5 (House)
- 2025-04-18: Amendment adopted, placed on calendar (House)
- 2025-04-17: Reported back amended, do pass, amendment placed on calendar 14 0 0 (House)
- 2025-03-11: Committee Hearing 10:30 (House)
- 2025-02-18: Introduced, first reading, (emergency), referred Finance and Taxation Committee (House)
- 2025-02-05: Received from Senate (House)
- 2025-02-04: Second reading, passed, yeas 46 nays 0, Emergency clause carried (Senate)
- 2025-02-03: Reported back, do pass, place on calendar 5 0 1 (Senate)
- 2025-02-03: Committee Hearing 10:30 (Senate)
- 2025-01-27: Introduced, first reading, (emergency), referred Finance and Taxation Committee (Senate)

## Bill text

- Adopted by the Conference Committee: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01008m.pdf)
- Enrollment: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-04000.pdf)
- INTRODUCED: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01000.pdf)
- Prepared by the Legislative Council staff for Representative Dockter: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01005m.pdf)
- SENATE BILL NO. 2397 with Conference Committee Amendments: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-03000.pdf)
- SENATE BILL NO. 2397 with House Amendments: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-02000.pdf)

## Related bills

- HB 1229: AN ACT to create and enact a new subdivision to subsection 2 of section 39-06.1-06 and section 39-10-71.1 of the North Dakota Century Code, relating to statuto… (signed)
- SB 2390: AN ACT to create and enact three new sections to chapter 54-40.1 of the North Dakota Century Code, relating to a rural catalyst committee, grant program, and f… (signed)
- HB 1298: AN ACT to amend and reenact sections 39-06.1-06, 39-09-02, 39-09-04, and 39-09-07.1, and subsection 2 of section 40-05-06 of the North Dakota Century Code, rel… (signed)
- SB 2113: AN ACT to create and enact two new sections to chapter 50-06 of the North Dakota Century Code, relating to certified community behavioral health clinics and th… (signed)
- SB 2147: AN ACT to create and enact a new subsection to section 15-10-38.4, a new subsection to section 15-62.4-03, a new section to chapter 15-62.4, and a new subsecti… (signed)
- SB 2018: AN ACT to provide an appropriation for defraying the expenses of the department of commerce; to provide an appropriation to the attorney general; to provide an… (signed)

## Sources
- [Adopted by the Conference Committee (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01008m.pdf)
- [Enrollment (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-04000.pdf)
- [INTRODUCED (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01000.pdf)
- [Prepared by the Legislative Council staff for Representative Dockter (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-01005m.pdf)
- [SENATE BILL NO. 2397 with Conference Committee Amendments (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-03000.pdf)
- [SENATE BILL NO. 2397 with House Amendments (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1360-02000.pdf)

## Related
- [HB 1229: AN ACT to create and enact a new subdivision to subsection 2 of section 39-06.1…](https://policyrisk.com/state-bill/ND-HB1229-202501)
- [SB 2390: AN ACT to create and enact three new sections to chapter 54-40.1 of the North D…](https://policyrisk.com/state-bill/ND-SB2390-202501)
- [HB 1298: AN ACT to amend and reenact sections 39-06.1-06, 39-09-02, 39-09-04, and 39-09-…](https://policyrisk.com/state-bill/ND-HB1298-202501)
- [SB 2113: AN ACT to create and enact two new sections to chapter 50-06 of the North Dakot…](https://policyrisk.com/state-bill/ND-SB2113-202501)
- [SB 2147: AN ACT to create and enact a new subsection to section 15-10-38.4, a new subsec…](https://policyrisk.com/state-bill/ND-SB2147-202501)
- [SB 2018: AN ACT to provide an appropriation for defraying the expenses of the department…](https://policyrisk.com/state-bill/ND-SB2018-202501)
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Source: PRIA, https://policyrisk.com/state-bill/ND-SB2397-202501 (as of 2026-10-19).