Purpose of the Bill

The bill is designed to facilitate the orderly and environmentally responsible development of Minnesota's gas resources. It aims to create a legal and regulatory framework for gas exploration and production, ensuring that activities related to gas resource development are conducted in a manner that protects natural resources and public health while providing economic benefits.

Main Provisions

• Gas Resource Development Permitting: The bill establishes a permitting system for the exploration and production of gas. It requires entities to obtain permits before engaging in gas extraction activities and outlines the application process, including necessary documentation and fees.
• Regulatory Framework and Rulemaking: It mandates the development of rules governing various aspects of gas extraction, including environmental protection, well construction, and worker safety. Agencies like the Department of Natural Resources and the Pollution Control Agency are tasked with creating these rules using an expedited rulemaking process.
• Financial Assurance and Reclamation: The bill requires applicants to provide financial assurances to cover potential environmental impacts and reclamation activities. It also specifies the standards for reclamation to ensure gas development sites are restored after use.
• Pooling and Spacing Requirements: The bill outlines procedures for pooling different landowners' mineral rights to create efficient drilling units and prevent unnecessary wells. It allows both voluntary and involuntary pooling, ensuring equitable resource sharing.
• Fees and Appropriations: It introduces various fees for permits, applications, and monitoring to fund the regulatory activities. Appropriations are also made to support the administration of the gas exploration and development program.

Significant Changes to Existing Law

• Creation of New Regulatory Chapters: The bill proposes new sections within the Minnesota Statutes to establish a comprehensive framework for gas resource management, including definitions, policies, permit requirements, and penalties.
• Repeal of Existing Sections: An existing section related to the gas production permit requirement is repealed and replaced with updated provisions.
• Criminal and Civil Penalties: It introduces penalties for non-compliance with the gas resource regulations, including both civil fines and criminal charges for willful violations.

Relevant Terms

• Gas Resource Development, Gas Well, Hydrocarbon and Nonhydrocarbon Gases, Environmental Protection, Rulemaking, Financial Assurance, Reclamation, Pooling, Spacing Units, Permit Fee, Criminal and Civil Penalties, Contested Case Hearing.