BISMARCK, N.D. (AP) - The North Dakota Industrial Commission endorsed a measure aimed at reducing the wasteful burning of natural gas in the state’s oil patch.
The Bismarck Tribune reports the three-member panel led by Gov. Doug Burgum approved an order Tuesday that lets producers and companies that purchase their gas enter into contracts that allow for “firm service.” A firm commitment guarantees space for the producer’s gas on systems such as pipelines.
State Mineral Resources Director Lynn Helms says such a guarantee lowers the risk for investing in new gas gathering and processing facilities.
Flaring reached an all-time high this summer in North Dakota, and the most recent data show just 82% of gas produced is captured at well sites while the rest is burned off. That falls below the statewide target of 88%, which will jump to 91% next November. If companies don’t meet the goals, the state can impose penalties.
Helms said the order could help accelerate projects by as much as two years. He estimates companies will need to invest $18 billion in natural gas infrastructure over the next 20 years if the state is to meet its flaring goals.
Burgum said it’s important for North Dakota find ways to attract that investment because the state’s oil industry has worldwide competition for it.
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