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69th Legislature 2025 SB 339
- 1 - Authorized Print Version – SB 339
ENROLLED BILL
AN ACT REVISING DISTRIBUTION OF CERTAIN OIL AND NATURAL GAS PRODUCTION TAXES;
REVISING DEPOSITS TO THE OIL AND GAS PRODUCTION DAMAGE MITIGATION ACCOUNT;
AMENDING SECTIONS 15-36-331 AND 82-11-161, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-36-331, MCA, is amended to read:
"15-36-331. Distribution of taxes. (1) (a) For each calendar quarter, the department shall determine
the amount of tax, late payment interest, and penalties collected under this part.
(b) For the purposes of distribution of oil and natural gas production taxes to county and school
district taxing units under 15-36-332 and to the state, the department shall determine the amount of oil and
natural gas production taxes paid on production in the taxing unit.
(2) (a) The amount of oil and natural gas production taxes collected for the percentage of privilege
and license tax established by the board pursuant to 82-11-131 must be deposited, in accordance with the
provisions of 17-2-124, in the account in the state special revenue fund for the purpose of paying expenses of
the board, as provided in 82-11-135.
(b) After the allocation provided for in subsection (2)(a), up to 0.08% of the tax collected pursuant
to 15-36-304(7) must be deposited in the oil and gas natural resource distribution account established in 90-6-
1001(1) for distribution pursuant to 15-36-332(7).
(c) (i) Any Except as provided in subsection (2)(c)(ii), any funds remaining after the allocations
provided for in subsections (2)(a) and (2)(b) must be deposited in the oil and gas production damage mitigation
account as provided in 82-11-161.
(ii) If the unobligated cash balance in the oil and gas production damage mitigation account equals
or exceeds $10 million, then there is no deposit to the oil and gas production damage mitigation account, and
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ENROLLED BILL
the funds must remain in the board's expense account provided for in 82-11-135 as reserves for the board or
for legislative transfer for purposes related to the impacts of oil and gas production.
(3) (a) For each tax year, the amount of oil and natural gas production taxes determined under
subsection (1)(b) is allocated to each county according to the following schedule:
Big Horn 45.05%
Blaine 58.39%
Carbon 48.27%
Chouteau 58.14%
Custer 69.53%
Daniels 50.81%
Dawson 47.79%
Fallon 41.78%
Fergus 69.18%
Garfield 45.96%
Glacier 58.83%
Golden Valley 58.37%
Hill 64.51%
Liberty 57.94%
McCone 49.92%
Musselshell 48.64%
Petroleum 48.04%
Phillips 54.02%
Pondera 54.26%
Powder River 60.9%
Prairie 40.38%
Richland 47.47%
Roosevelt 45.71%
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69th Legislature 2025 SB 339
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ENROLLED BILL
Rosebud 39.33%
Sheridan 47.99%
Stillwater 53.51%
Sweet Grass 61.24%
Teton 46.1%
Toole 57.61%
Valley 51.43%
Wibaux 49.16%
Yellowstone 46.74%
All other counties 50.15%
(b) The oil and natural gas production taxes allocated to each county must be deposited in the
state special revenue fund and transferred to each county for distribution, as provided in 15-36-332.
(4) The department shall, in accordance with the provisions of 17-2-124, distribute the state portion
of oil and natural gas production taxes remaining after the distributions pursuant to subsections (2) and (3) as
follows:
(a) 2.16% to the natural resources projects state special revenue account established in 15-38-
302;
(b) 2.02% to the natural resources operations state special revenue account established in 15-38-
301;
(c) 2.95% to the orphan share account established in 75-10-743;
(d) 2.65% to the state special revenue fund to be appropriated to the Montana university system
for the purposes of the state tax levy as provided in 15-10-109; and
(e) all remaining proceeds to the state general fund.
(5) A payment required pursuant to this section may be withheld if, for more than 90 days, a local
government fails to:
(a) file a financial report required by 15-1-504;
(b) remit any amounts collected on behalf of the state as required by 15-1-504; or
(c) remit any other amounts owed to the state or another taxing jurisdiction."
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ENROLLED BILL
Section 2. Section 82-11-161, MCA, is amended to read:
"82-11-161. (Temporary) Oil and gas production damage mitigation account -- statutory
appropriation. (1) There is an oil and gas production damage mitigation account within the state special
revenue fund established in 17-2-102. The oil and gas production damage mitigation account is controlled by
the board.
(2) (a) At the beginning of each biennium, there must be allocated to the oil and gas production
damage mitigation account $650,000 from the interest income of the resource indemnity trust fund, except that
if at the beginning of a biennium the unobligated cash balance in the oil and gas production damage mitigation
account:
(i) equals or exceeds $1 million, no allocation will be made; or
(ii) is less than $1 million, then an amount less than or equal to the difference between the
unobligated cash balance and $1 million, but not more than $650,000, must be allocated to the oil and gas
production damage mitigation account from the interest income of the resource indemnity trust fund.
(b) If $650,000 is not allocated pursuant to subsection (2)(a), the remainder must be deposited in
the natural resources projects state special revenue account established in 15-38-302 for the purpose of
making grants.
(3) In addition to the allocation provided in subsection (2), there must be deposited in the oil and
gas production damage mitigation account all funds received by the board pursuant to 15-36-331(2)(c) and 82-
11-136.
(4) If a sufficient balance exists in the account, funds are statutorily appropriated, as provided in
17-7-502, from the oil and gas production damage mitigation account, upon the authorization of the board, to
pay the reasonable costs of properly plugging a well and either reclaiming or restoring, or both, a drill site or
other drilling or producing area damaged by oil and gas operations if the board determines that the well, sump,
hole, drill site, or drilling or producing area has been abandoned and the responsible person cannot be
identified or located or if the responsible person fails or refuses to properly plug, reclaim, or restore the well,
sump, hole, drill site, or drilling or producing area within a reasonable time after demand by the board. The
responsible person shall, however, pay costs to the extent of that person's available resources and is
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subsequently liable to fully reimburse the account or is subject to a lien on property as provided in 82-11-164 for
costs expended from the account to properly plug, reclaim, or restore the well, sump, hole, drill site, or drilling or
producing area and to mitigate any damage for which the person is responsible.
(5) Interest from funds in the oil and gas production damage mitigation account accrues to that
account.
82-11-161. (Effective on occurrence of contingency) Oil and gas production damage mitigation
account -- statutory appropriation. (1) There is an oil and gas production damage mitigation account within
the state special revenue fund established in 17-2-102. The oil and gas production damage mitigation account
is controlled by the board.
(2) (a) At the beginning of each biennium, there must be allocated to the oil and gas production
damage mitigation account $650,000 from the interest income of the resource indemnity trust fund, except that
if at the beginning of a biennium the unobligated cash balance in the oil and gas production damage mitigation
account:
(i) equals or exceeds $1 million, no allocation will be made; or
(ii) is less than $1 million, then an amount less than or equal to the difference between the
unobligated cash balance and $1 million, but not more than $650,000, must be allocated to the oil and gas
production damage mitigation account from the interest income of the resource indemnity trust fund.
(b) If $650,000 is not allocated pursuant to subsection (2)(a), the remainder must be deposited in
the natural resources projects state special revenue account established in 15-38-302 for the purpose of
making grants.
(3) In addition to the allocation provided in subsection (2), there must be deposited in the oil and
gas production damage mitigation account all funds received by the board pursuant to 15-36-331(2)(c) and 82-
11-136(1).
(4) If a sufficient balance exists in the account, funds are statutorily appropriated, as provided in
17-7-502, from the oil and gas production damage mitigation account, upon the authorization of the board, to
pay the reasonable costs of properly plugging a well and either reclaiming or restoring, or both, a drill site or
other drilling or producing area damaged by oil and gas operations if the board determines that the well, sump,
hole, drill site, or drilling or producing area has been abandoned and the responsible person cannot be
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identified or located or if the responsible person fails or refuses to properly plug, reclaim, or restore the well,
sump, hole, drill site, or drilling or producing area within a reasonable time after demand by the board.
However, the responsible person shall pay costs to the extent of that person's available resources and is
subsequently liable to fully reimburse the account or is subject to a lien on property as provided in 82-11-164 for
costs expended from the account to properly plug, reclaim, or restore the well, sump, hole, drill site, or drilling or
producing area and to mitigate any damage for which the person is responsible.
(5) Interest from funds in the oil and gas production damage mitigation account accrues to that
account."
Section 3. Effective date. [This act] is effective July 1, 2025.
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I hereby certify that the within bill,
SB 339, originated in the Senate.
___________________________________________
Secretary of the Senate
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
SENATE BILL NO. 339
INTRODUCED BY D. ZOLNIKOV
AN ACT REVISING DISTRIBUTION OF CERTAIN OIL AND NATURAL GAS PRODUCTION TAXES; REVISING
DEPOSITS TO THE OIL AND GAS PRODUCTION DAMAGE MITIGATION ACCOUNT; AMENDING SECTIONS
15-36-331 AND 82-11-161, MCA; AND PROVIDING AN EFFECTIVE DATE.