Montana needs to follow North Dakota's example

We have the opportunity to dramatically increase tax collections for the state of Montana while at the same time using some of the funds to lower property taxes. We need to follow the North Dakota example.

North Dakota is drilling for oil and gas in the Bakken oil field. This large puddle of oil covers much of northwest North Dakota, northeastern Montana and southern Saskatchewan. At this time I understand there are upwards of 300 drilling rigs operating in North Dakota and only about 10 drilling rigs in Montana.

It is my understanding that the additional tax revenue for North Dakota from this additional oil and gas revenue is about $780 million. There is also about $400 million in additional income tax revenue. That amounts to maybe $l.2 billion in additional taxes for the state of North Dakota last year. Think what that could do for our state.

I understand that there are three main reasons that oil companies are doing most of their work in North Dakota: Workmen’s compensation rates, 3 percent business equipment tax rates and two weeks to permit a new well in North Dakota and up to 10 months in Montana. We also need to have permission for the crude oil to enter the transcontinental pipe line, which Gov. Brian Schweitzer is working on.

We need this oil and gas activity and the resulting tax revenue in Montana to help keep our state solvent and to have Montana workers work in Montana instead of North Dakota.

Our Flathead delegation is working hard on these issues. Please contact them and offer your support. Solving these issues also will help our timber and mining industries to become more active once again in western Montana.

Bob DePratu lives in Whitefish.