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New oil wells will need gas capture plans effective June 1

Dave Thompson
/
Prairie Public

The percentage of natural gas being flared in North Dakota’s Williston Basin dropped a bit in March.

It was reduced to 33 percent – from a high of 36 percent in the previous winter months.

State mineral resources director Lynn Helms says the Hess natural gas processing plant – which had been down for repair and expansion – was back on line by the end of March – and that helped. But Helms says he expects to see flaring further reduced this summer, because new rules that take effect June first will require new wells to have gas capture plans.

"We have issued a letter to all the operators, identifying the six pieces required in a gas capture plan when a drilling permit shows up June first," said Helms during his monthly "Director's Cut" briefing. "In the absence of a complete plan, the permits will be put on hold, and they won't move through the system without that gas capture plan."

Helms says he does expect flaring to be down to 25 percent or less in the April report, because of the Hess plant back on line. And he says that is in line with industry goals.

"They're targeted on achieving 76 percent plus on capture by year end," said Helms. "I really think we'll be in the low to mid 20s."

Helms says the industry is a little nervous about what might happen on June first.

"There are companies that are going to be in really good shape," said Helms. "There are other companies that aren't."

Helms says the Industrial Commission is also considering rules that may force companies to scale back production temporarily, while new gas capture systems are put in place.

Helms also released the production figures from March. They show the state increasing production from February's 952,055 barrels a day to 977,051 barrels a day -- a new all time high.

"We are back to setting records," said Helms. "Just barely."

Helms says the state had three tough winter months – December, January and February, where production stayed about even or declined a little. He says there were also challenges in March -- including below zero weather at the beginning of the month, several very windy days when crews couldn't work, and ending with an 8 inch snowfall.

"The larger surge in production anticipated in March didn't happen," said Helms.

The number of drilling rigs operating in the state remains around 190.

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