(North Dakota) Industrial Commission Order 24665
By Order, the Commission established the following capturing targets of the share of associated gas for oil and gas operators in certain areas:
- 74% October 1, 2014 through December 31, 2014
- 77% January 1, 2015 through March 31, 2016
- 80% April 1, 2016 through October 31, 2016
- 85% November 1, 2016 through October 31, 2018
- 88% November 1, 2018 through October 31, 2020
- 91% beginning November 1, 2020
Operators are required to submit a Gas Production Forecast data to midstream gas gathering companies and developed a Gas Capture Plan. In the event that an operator has failed to meet gas capture goal, the operator is required to apply for permits to drill in addition to other penalties.
The Order includes a list of ways operators could beneficially use the gas on-site (e.g., electric rather than diesel generators; local compression of the gas for use as transportation fuel or chemical feedstock). In addition, operators are also able to accumulate variance credits for LNG and CNG utilisation, and extra gas capture beyond the set target.
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