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Published February 05, 2014, 08:19 PM

North Dakota losing nearly $1 million in natural gas tax revenue

North Dakota Tax Department records show that the state is losing nearly $1 million monthly in natural gas tax revenue because about a third of it is being burned as a byproduct of oil production.

North Dakota Tax Department records show that the state is losing nearly $1 million monthly in natural gas tax revenue because about a third of it is being burned as a byproduct of oil production.

State data shows that about half of more than 10,000 producing wells in western North Dakota's oil patch flared natural gas in November. Oil and gas tax collections for November were $252 million, with natural gas collections representing just $2 million.

Oil producers can flare natural gas for a year without paying taxes or royalties on it. Companies can then ask for an extension.

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