Tax Credit Would Reduce Flaring
Friday, March 12, 2021

A bill that would create a tax credit for companies using onsite natural gas flare mitigation technology easily passed the Senate in early February and is now under consideration in the House. 

Watford City Senator Dale Patten told members of the House Finance and Taxation Committee that SB 2328 encourages investment in facilities to make beneficial use of natural gas that might otherwise be flared. The bill provides a tax credit on $6,000 per well per month for up to 12 months, and only applies to wells which are either not connected to a pipeline, or to a pipeline that doesn't have capacity to handle all the gas being produced.

Click here to listen to Patten's comments.

Patten said the tax credit would ultimately provide tax revenue because a well could be brought online earlier with the flaring issue resolved.

Click here to listen to Patten's comments.

In prepared testimony, Ron Ness, President of the ND Petroleum Council, said the bill is a "strong message from the State of North Dakota in support of continued efforts to reduce flaring with innovation and technology."

The House committee gave the measure a unanimous "do pass" recommendation and it will be considered on the House floor next week.

Click here to read this article in the WDEA Weekly Newsletter