The House Finance and Taxation Committee of the North Dakota Legislature convened on April 15, 2025, to discuss critical issues surrounding the state's oil industry and proposed amendments to development incentive wells. The meeting focused on the need for financial incentives to support the viability of the oil sector, particularly in light of recent financial forecasts.

The session began with a comment highlighting the urgency of addressing the oil industry's challenges. A representative noted that the committee meets only every two years, emphasizing the importance of taking action to incentivize oil production. The discussion centered on a proposed incentive that would allow companies to invest in new wells without the state losing revenue, as the incentive would not be a tax credit but rather a deferral of tax collection.

Representative Olson supported this view, pointing out that the benefits would be temporary and aimed at new wells and enhanced oil recovery (EOR) upgrades. He stressed that without these incentives, there would be no motivation for companies to invest, suggesting that the state would not incur losses by implementing the proposal.

Nathan Anderson from the Department of Mineral Resources raised concerns regarding the amendment's language, particularly about the burden of proof for operators to demonstrate that a well qualifies for the development incentive. He requested clarification on whether the responsibility lies with the operators or the Industrial Commission. Anderson also noted that the number of wells applying for EOR status since the last session has been minimal, indicating a need for further investigation into the reasons behind this trend.

The committee discussed the importance of streamlining the application process for these incentives to ensure that both the state and oil producers benefit. Will Hauser from Continental Resources confirmed that the intent was for the burden of proof to rest with the applicant, and he expressed willingness to clarify this in the amendment.

As the meeting progressed, the committee faced time constraints and considered moving the bill forward with the understanding that necessary language adjustments could be made in a conference committee. Representative Green Knight suggested that the committee should proceed with the bill as it stands, allowing for further refinements later.

The meeting concluded with the committee agreeing to pause for a brief period to allow for the drafting of the proposed language changes, with the aim of reconvening before the session's end. The discussions underscored the committee's commitment to supporting North Dakota's oil industry while ensuring that the legislative process remains efficient and effective.