News Releases for June 2008
June 10, 2008
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Hoeven, Wells Sign Historic State-Tribal Tax Agreement
BISMARCK, N.D. – Gov. John Hoeven and Chairman Marcus Wells, Jr. today signed a state and tribal tax agreement to spur the production of oil and gas on the Fort Berthold Reservation. The signing took place during a ceremony held at the Three Affiliated Tribes Administrative Headquarters in New Town. The historic agreement will streamline the current two-tax system into one, stimulating business activity through oil and gas exploration and development for the tribes.
Hoeven and Wells were also joined by Malcolm Wolf, Three Affiliated Tribes vice chairman, and Fred Fox, Oil and Gas Department administrator for the tribes.
"The signing of this agreement will help open the doors to oil and gas exploration on the Fort Berthold Reservation," Hoeven said. "The increased activity will help provide economic development, jobs, and revenue for the Three Affiliated Tribes and its members. Thank you to Chairman Wells, the Tribal Council, state legislators and everyone who helped make this historic agreement possible for the tribes, the state's energy industry, and the state of North Dakota."
"The Three Affiliated Tribes and the state of North Dakota have reached an agreement that we can make work, providing more stability in the taxation of oil and gas in western North Dakota," Wells said. "I want to extend a thank you to Governor Hoeven and to everyone who was involved with the tax agreement, specifically the Tribal Business Council, Tribal Attorney Damon Williams, Marcus Wells, Sr. in our Tribal Tax Department, Fred Fox of the Three Affiliated Tribes Energy Department, and Dewey Hosie, the Tribal Employment Rights Office director."
The tax will be paid by oil production companies and allocated between the state and tribes. The state will collect all taxes and distribute the revenue to the Three Affiliated Tribes. According to Wells, the Tribal Business Council plans to utilize the revenue from this tax agreement to fund the improvement of tribal roads, health care and law enforcement.
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