North Dakota's "Oil Tax Fund" Tops $1 Billion -- With A "B"

Updates

April 17, 2013: a reader sent me this article suggesting the Legacy Fund advisory board is recommending some of the money be invested. 

Original Post

The Bismarck Tribune is reporting.

Some of these data points were provided at the linked article:

• the Legacy Fund gets 30 percent of the state's oil tax collections
• none of the Legacy Fund money can be spent until 2017; will require 2/3rds vote of legislature to spend it
• the money is stashed under a mattress; it is not invested
• April deposits were $80.5 million.
• the fund was begun in September, 2011 -- about 18 months ago, I guess
• the fund is slightly ahead of projections: original projections -- $620 million by June 30, 2013

Any safe utility pays 3%. Three percent of $1 billion = $30 million per year. Otter Tail pays 3.8%; MDU pays 2.8%.

So, not investing this money is costing the state $30 million per year.

Flaring is costing the state $26 million in tax and royalties per year.

And so it goes.

Disclaimer: my math could be wrong.