magazine

A Message from Ryan Rauschenberger, North
Dakota Tax Commissioner
Opening Remarks
Ryan Rauschenberger
North Dakota Tax Commissioner
“If oil production levels and oil prices continue
to be strong, the balance of this fund will
be a likely funding source for additional
infrastructure in western North Dakota.
Governor Dalrymple appointed
me as tax commissioner effective
January 1, 2014. I have
been fortunate to serve the
people of North Dakota for
the past four-and-a-half years as the deputy tax
commissioner. This valuable experience will
help me to be an effective commissioner and to
“hit the ground running” in this new role.
Prior to becoming the deputy tax commissioner,
I was the manager of energy development
at the North Dakota Department
of Commerce and worked on recruiting
energy-related businesses to the state. I also
staffed the state’s Energy Policy Commission,
EmPower North Dakota. Before my work for
the Department of Commerce, I was an auditor
with PriceWaterhouseCoopers, providing
auditing services for the energy, manufacturing
and financial services industries.
In my current role as tax commissioner—
just as in my past roles as deputy commissioner
and manager of energy development—
I expect to work closely with the western oil
producing counties (and other political subdivisions)
on many initiatives. One example
is in the area of oil and gas gross production
tax distribution formulas and revenue forecasts.
This tax is shared between the state and
the counties, cities, schools and townships.
The tax department is responsible for forecasting
oil tax revenue and quantifying the
fiscal impact of various legislative proposals.
So far this biennium, actual oil tax collections
are well above what was forecasted,
primarily due to higher than anticipated
production. Late January 2014 oil prices
were hovering around $78 per barrel for
North Dakota light sweet crude, compared
to a forecasted price of $75 per barrel; North
Dakota production as of November 2013 was
a record 973,280 barrels per day, compared
to forecasted production of 850,000 barrels.
It is likely production will reach one million
barrels of oil per day in this calendar year. If
this trend continues, there will be a sizeable
balance in the state’s “Strategic Investment
and Improvements Fund,” which is to be
used for one-time strategic expenditures. If
oil production levels and oil prices continue
to be strong, the balance of this fund will be
a likely funding source for additional infrastructure
in western North Dakota.
It has been my pleasure to work closely with
the oil producing counties on issues important
to western North Dakota. I look forward to
continuing our progress as the tax department
works with the oil producing counties, the legislature
and the governor’s office during the upcoming
2015 legislative session.
BASIN BITS | Spring 2014 31