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Flaring gas wastes natural gas

Work goes on to reduce flaring in N.D.

August 22, 2013

By ELOISE OGDEN Regional Editor eogden @minotdailynew....

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(9)

EarlyBird

Aug-23-13 9:25 AM

The State legislated a plan several years ago concerning flaring gas, the state has been back pedaling ever since.

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Marvin51

Aug-24-13 2:37 PM

The governor's goal is to flare way more than other states do. When you set a goal that's basically a failure you are giving the message to the companies that ND doesn't care. The message was received loud and clear, they make their big effort in states that do care. The technology to capture that gas isn't rocket science. You need a compressor a tank and a truck. You only get to produce as much oil as you can handle the gas. There problem solved. Ypu'd be amazed how fast those pipes they can't get in now would be put in.

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Worldview

Aug-25-13 10:16 AM

Love the headline also...

It is a waste of energy however, and that is energy that takes millions of years to create. As such would rather see a requirement to, if not force at least encourage them to stop or limit flaring to a limited time to so they could get the equipment and infrastructure in place to handle.

I know flaring has been around forever but we could do better. Seems a No brainer but I doubt it could be legislated in ND, and Enbridge or any other company will not do more than they have to, as that would be against their profitability, but regulation would take care of it more fairly so they could still compete accordingly. Doubt they would pack up and leave either.

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EarlyBird

Aug-25-13 11:46 AM

On April 26, 2013, North Dakota Governor Jack Dalrymple signed House Bill No. 1134 (HB 1134) into law, amending the state's flaring and oil and gas production tax statutes to promote reduction of natural gas flaring at the state's oil and gas wells.

While earlier proposed versions of HB 1134 included a reduction in the flaring grace period from one year to six months, the final legislation maintains the one-year grace period.

Upon the end of this grace period, a well operator's options are currently limited under statute to either: 1) capping the well, 2) connecting the well to a gas gathering line or 3) equipping the well site with an electric generator consuming 75% of the gas from the well, all subject to an "economic infeasibility" exception.

The final version of HB 1134, which becomes effective July 1, 2013, expands the state's list of permitted activities for an operator to undertake at the end of the grace period to include:

A. Equipping the well site with a

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EarlyBird

Aug-25-13 11:47 AM

A. Equipping the well site with a collection system that intakes at least 75% of the gas and natural gas liquids volume from the well for beneficial consumption by means of:

Compression to liquid for use as fuel. Transport to a processing facility. Production of petrochemicals or fertilizer. Conversion to liquid fuels. Separating and collecting over 50% of the propane and heavier hydrocarbons. B. Other value-added processes as approved by the North Dakota Industrial Commission that reduce the volume or intensity of the flare by more than 60%.

HB 1134 further creates an oil and gas production tax exemption under N.D.C.C. § 57-51-02.2 for a period of two years plus 30 days for all gas that is: 1) collected and used at the well site to power an electric generator that consumes at least 75% of the gas from the well; 2) collected at the well by a collection system; or 3) collected by other value-added processes. The two year plus 30 days exemption will also apply to oil

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EarlyBird

Aug-25-13 11:48 AM

The two year plus 30 days exemption will also apply to oil extraction taxes assessed under the Century Code against liquids produced from a collection system that utilizes absorption, adsorption or refrigeration.

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Worldview

Aug-25-13 12:08 PM

Appreciate your thoughtful response and info. tks

The 75% marker seems to be intact though and that means 25% is up in smoke which took several million years to create. Not that good of legislation in my opinion but better than before.

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muleskinner

Aug-25-13 12:49 PM

Natural gas is always 'oozing' from the floor of the Gulf of Mexico into sea water the all of the time. Artesian wells have natural gas infused into the water. Natural gas exists in sand deposits in North Dakota.

It can't be stopped. It's natural.

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EarlyBird

Aug-25-13 1:24 PM

They need to make and pass legislation that makes it a felony for government people to take money from the oil companies. But then there would be a mass exodus of people out of the halls of state government I imagine. It seems it doesn't matter anymore and everyone has a price fixed to everything from morals to life itself.

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