Severance and sales and use tax exemptions for coal used in a coal processing facility that utilizes coal as a feedstock
N.D. Cent. Code § 57-61-01.9
in effect57-61-01.9. Severance and sales and use tax exemptions for coal used in a coal
processing facility that utilizes coal as a feedstock.
1. Severance tax may not be imposed on the first one million tons [907,184.74 metric
tons] of coal per year used as a feedstock by a coal processing facility that utilizes coal
as a feedstock in this state as defined in section 57-39.2-04.21.
2. The owner or operator of a coal processing facility that utilizes coal as a feedstock
shall certify to the coal mine owner or operator the amount of coal measured in tons:
a. Purchased for use as a feedstock by the facility.
b. Used as a feedstock by the facility for extraction of critical minerals or rare earth
elements from lignite coal.
c. Used as a feedstock by the facility to create tangible personal property other than
electricity, water, gas, or steam from lignite coal, including lignite coal from which
critical minerals or rare earth elements have been extracted.
d. Resold or used in any manner other than as a feedstock at the facility, including
use in an electrical generating plant or coal gasification facility.
3. The coal mine owner or operator shall report the amounts certified under subsection 2.
The amount of coal certified under subdivision d of subsection 2 is not eligible for the
exemption in this section. The coal mine owner or operator shall report the amount of
coal certified under subdivision d of subsection 2 on its return for the month following
the month of certification and shall remit the severance tax due with the return. The tax
commissioner shall waive penalty and interest under section 57-61-05 for severance
tax remitted in accordance with this subsection.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t57c61.pdf#nameddest=57-61-01p9Fetched: 10/16/2026