E. CO, exactly half way between NE and OK | Fellers Ranch - 3/13/2024 01:50
North Dakota has an oil and gas gross production tax that is imposed instead of property taxes on oil and gas producing properties. A 5% rate is applied to gross value of the oil/gas produced at the well level.
If nothing is produced, then there is no tax to pay.
And, if there is oil or gas that is drawn from property, the tax is paid by the company extracting the resource, not the owners of the mineral rights. (Often the mineral rights are divided between dozens if not hundreds of owners.)
Thus . . . the OP is not going to lose his mineral rights by not paying taxes on them.
I think you are correct, if the mineral rites are producing , the oil company will see that the taxes on the minerals are payed. We have to pay taxes on minerals that we own that we don't own the land. I would suggest the owner that gets the small oil checks to file the income tax himself. See how he filed last year and do it himself. A small well like that in my area are called "little pissers". |
Mineral rights in Williams and Divide County ND
