North Dakota regulators to discuss possible extension to gas flaring reduction

The oil industry agreed to the goals set forth in the gas flaring policy and should be held accountable to meeting them.

North Dakota used to flare more than one-third of the natural gas coming from oil production.

North Dakota produces more oil than any other state in the nation with the exception of Texas. “We’re not moving the goalposts”.

In exchange for the delay, the Industrial Commission voted to stiffen the long-term goal for natural gas capture. “A few more months is critical”.

That means flaring would have to be down to 15 percent.

The previous deadline had been January 1, 2016.

Attorney General Wayne Stenehjem, who sits on the commission with Governor Jack Dalrymple and Agriculture Commissioner Doug Goehring said, “I’m interested in the end game – where do we wind up”.

Two ONEOK gas processing plants slated to come online later this year and in the third quarter of 2016 are expected to help producers meet the goals.

“They are going to include shutting in wells, reducing production, laying people off, lost revenue to political subdivisions – a whole lot of things that really aren’t acceptable”, he said.

With any compromise both industry and environmentalists have opposite reactions to the motion.

The fall in individual income tax revenues highlights the toll the idled rigs are taking on oil field workers, with CNN Money noting the number of mining and logging jobs in the state have fallen by 3,700 (down 12 percent) since March.

Sales tax collections were $52 million, or 21 percent, short of projections during the first two months of the biennium that began July 1 and $44 million short in August alone, Office of Management and Budget Director Pam Sharp said.

“Slow the production until infrastructure catches up”.

“Well, we certainly didn’t get everything we ask for”, said Ron Ness, president of the North Dakota Petroleum Council. About 20 percent is now burned off in North Dakota because the infrastructure isn’t there to move it to market.

“No progress was made today”, Linda Weiss of Belfield said.

“We are still committed to capturing 90 percent of gas by 2020”, he said. Right now, about 82 percent is being captured.