BISMARCK – The North Dakota Industrial Commission (NDIC) today approved amendments to the Gas Capture Guidance Policy to provide more transparency into how the gas capture percentage is calculated as well as provide more clarity around requirements within the policy.
The amended policy clarifies how the percentage of gas capture is being calculated specifically where variances are applied in that calculation. Moving forward the formula is outlined directly in the policy. The revisions also expand upon which requests for variances would require a public notice and hearing – adding curtailment due to gas gathering capacity to the list.
“North Dakota’s gas capture policy goals remain unchanged,” stated the Industrial Commission in a joint statement. “The expectation that gas capture reach 91% by Nov. 1, 2020, was not amended. The primary goal of the policy is to increase the volume of captured gas and reduce the percentage of flared gas.”
The new policy version does amend the definition of stranded gas to apply to spacing units which have not seen drilling activity in five years instead of the previous definition of “undrilled government townships.” The intent behind this modification is to see drilling activity increase in areas where the current pricing market has devastated pursuit of new production.
The Industrial Commission consists of Gov. Doug Burgum, as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring. The Commission oversees the Department of Mineral Resources’ Oil and Gas Division.
Attachments: Revised Policy and Redline Version of Revised Policy