Why is North Dakota doing so well?

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1. Q: What is the current severance tax rate for oil and gas produced in North Dakota?

   A: The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2008 is $.1428 per mcf. The rate through June 30, 2009 is $.1476 per mcf. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 6.5% of the gross value; 4% if the well qualifies for a reduced rate; 2% from qualifying wells in the Bakken formation; and 0% if the well qualifies for an exemption.

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   1. You’re such a geek sometimes. lol

      But this is an incredible find, ND is producing an astonishing amount of energy. We’ve read those stories about people moving to ND and not being able to rent a place at any price, because there are simply none available.

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2. I realize state banks could increase competition potentially hurting private bankers, is this the problem? Was North Dakota doing badly before 2005 spike in production and price? How did they do in 2002?

   North Dakota has oil that the state is willing to develop with near zero interest loans (?) with profits being funneled into state coffers?

   Arizona could develop its sun resources?

   Why should a state need the Federal Government to decide to make the loan with interest payments going to the Federal Government?

   Arizona gets solar jobs in Obama solar plan

   http://www.azcentral.com/news/articles/2010/07/03/20100703obama-arizona-solar-funding-jobs-ON.html

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3. That’s interesting. Never really thought about it, but I guess energy exporting US states like North Dakota and Alaska have a negative beta to the (energy importing) US economy as a whole.

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4. http://www.webofdebt.com/articles/pottersville.php

   http://www.huffingtonpost.com/ellen-brown/escape-from-pottersville_b_409813.html

   Hi, what about the fact that ND has a state bank?

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