Oil And Gas Law Alert: In A Victory For The State's Oil And Gas Industry, North Dakota Senate Defeats Well Setback Rule

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The North Dakota State Senate bill proposing that all oil and gas well setbacks be extended from 500 feet to 750 feet for single-well pads and to 1,000 feet for pads with multiple wells was defeated yesterday, February 6, by a decisive vote of 30-17.

Sen. Stan Lyson (R-Williston), chairman of the Senate's Natural Resources Committee, said a major reason for defeating the bill was that larger setbacks would impact more land. A 500-foot setback creates roughly 18 acres of unrecoverable oil and gas property, which would rise to 72 acres with a setback of double the size. It was also noted that no other state in the U.S. has a setback of more than 500 feet.

 

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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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