North Dakota Orders Gas Capture Plan For Wells Drilled In The Bakken And Three-Forks


On Thursday, May 16, 2014, the North Dakota Industrial Commission released a notice announcing new requirements for applications to drill additional wells in the Bakken and Three-Forks. The NDIC is now requiring that all applicants include a Gas Capture Plan (referred to as the GCP) as an exhibit. This new policy marks a significant change and will directly impact drilling in North Dakota. The GCP plan must contain the following information:

  • A statement made by a company representative indicating:
    • The name of the gas gatherer(s) the company met with.
    • That the company supplied the gas gatherer(s) with the following information:
      • Anticipated completion date of well(s).
      • Anticipated production rates of well(s).
  • A detailed gas gathering pipeline system location map which depicts the following information.
    • Name and location of the destination processing plant.
    • Name of gas gatherer and location of lines for each gas gatherer in the map vicinity.
    • The proposed route and tie-in point to connect the subject well to an existing gas line.
  • Information on the existing line, to which operator proposes to connect to, including:
    • Maximum current daily capacity of the existing gas line.
    • Current throughput of the existing gas line.
    • Anticipated daily capacity of existing gas line at date of first gas sales.
    • Anticipated throughput of existing gas line at date of first gas sales.
    • Gas gatherer issues or expansion plans for the area (if known).
  • A detailed flowback strategy including:
    • Anticipated date of first production.
    • Anticipated oil and gas rates and duration. If well is on a multi-well pad, include total for all wells being completed.
  • Amount of gas applicant is currently flaring:
    • Statewide percentage of gas flared (total gas flared/total gas produced) for existing wells producing from the Bakken petroleum system. Note: Industry target goals are to reduce flaring to 26% by 9-1-14, 23% by 1-1-15, 15% by 1-1-16, and 10% by 9-1-20.
    • Fieldwide percentage of gas flared.
  • Alternatives to flaring.
    • Explain specific alternate systems available for consideration.
    • Detail expected flaring reductions if such plans are implemented.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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