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<blockquote data-quote="Allen" data-source="post: 135004" data-attributes="member: 389">lunker, In reality, every ND taxpayer benefits.&nbsp; ND crude oil sells at a significant discount to West Texas Intermediate because of transportation costs.&nbsp; Right around $10-15 per barrel based on the average difference in price.&nbsp; Let's say a pipeline causes a $5 rise in what ND oil sells for on the open market because of lower transport costs.&nbsp; That's $5 x $1,000,000 that is now taxable at the rate of 10% for Production and Extraction taxes, or a nice cool $500,000 a day for the coffers of ND, or $182,500,000 a year.&nbsp; Add onto that the income taxes paid at a rate of ~3% on the remaining 4.5 million in extra income a day for the royalty owners, and you get another $135,000 a day, or $49,275,000 a year.&nbsp; So basically, that's $237.8 million extra dollars a year the State doesn't need to ask you for your support to raise.Make no mistake, this is an important economic engine for not only continued oil and gas development, but for tax revenue paid by the few so you don't have to.&nbsp; Of course, someone could always argue a bit with my numbers, so take them with a large grain of salt because oil produced on the reservation owned by a tribal member is exempt from these taxes, I think.&nbsp; So that would lower this a fair amount because of production on Fort Berthold.&nbsp; Maybe 20%, or so?</blockquote>

[QUOTE="Allen, post: 135004, member: 389"] lunker, In reality, every ND taxpayer benefits. ND crude oil sells at a significant discount to West Texas Intermediate because of transportation costs. Right around $10-15 per barrel based on the average difference in price. Let's say a pipeline causes a $5 rise in what ND oil sells for on the open market because of lower transport costs. That's $5 x $1,000,000 that is now taxable at the rate of 10% for Production and Extraction taxes, or a nice cool $500,000 a day for the coffers of ND, or $182,500,000 a year. Add onto that the income taxes paid at a rate of ~3% on the remaining 4.5 million in extra income a day for the royalty owners, and you get another $135,000 a day, or $49,275,000 a year. So basically, that's $237.8 million extra dollars a year the State doesn't need to ask you for your support to raise. Make no mistake, this is an important economic engine for not only continued oil and gas development, but for tax revenue paid by the few so you don't have to. Of course, someone could always argue a bit with my numbers, so take them with a large grain of salt because oil produced on the reservation owned by a tribal member is exempt from these taxes, I think. So that would lower this a fair amount because of production on Fort Berthold. Maybe 20%, or so? [/QUOTE]

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