North Dakota signs oil deal with tribes
A contract between the state of North Dakota and three local Indian tribes has been renewed. Governor John Hoeven was
in New Town for the ceremony to sign the extension.
The deal between the state and the Mandan, Hidatsa, and Arikira Tribes sets one tax system for oil extraction from
tribal land. Before the deal, there had been separate taxes at the state and tribal level.
Officials say there was only one oil well on tribal land before the deal was first signed in 2008. Now, there are 160
wells. Governor John Hoeven says the deal unleashed the potential of oil drilling by streamlining the system.
"Because instead of having two sets of laws and regulations, one for the tribes, one for the state, one set of
regulations for the state, one for the tribes, potentially being taxed twice. Because we were able to come together,
create this agreement and have a reasonable framework, they were able to come here and do business."
The original deal, signed 18 months ago, has generated an estimated $ 18 mm in revenue for the tribes and the
state.
The new deal is open-ended.
