Water tax for oil companies fails

A water use tax on oil companies, which would have generated millions for the Oil and Gas Impact Grant Fund, failed to pass the House 36-57.

Sponsored by Rep. George Keiser, R-Bismarck, House Bill 1398 was introduced to assess a fee for commercial use. Keiser said the citizens of North Dakota own the water and have to obtain a water permit from the State Water Commission, so oil companies should, too.

Rep. Glen Froseth, R-Kenmare, said this is the worst time for the state to place a fee on water use as Gov. Jack Dalrymple is currently trying to stop the Army Corps of Engineers from imposing a fee on farmers and businesses for access to Missouri River water.

Rep. Todd Porter, R-Mandan, said a key component to the bill is that all revenues are put into the oil impact fund distributed to areas impacted by industry.

“If you want to assist western North Dakota with the number one complaint, which is damage to roads and infrastructure, this is the bill,” he said.

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