Purpose of the Bill

The purpose of this bill is to facilitate the orderly and environmentally responsible development of Minnesota's gas resources. It establishes rules and regulations for gas exploration and production, amends existing statutes to facilitate these processes, and sets out procedures for permitting and administering gas resource development. It also includes provisions for financial assurance and penalties related to gas production operations.

Main Provisions

• Rulemaking and Permitting: The bill requires rulemaking for gas resource development and specifies that permits are needed before engaging in gas extraction activities. It outlines what must be included in permit applications, such as maps, plans for gas production operations, and safety provisions.

• Environmental Protection: Establishes regulations to minimize environmental impact, including spacing units, pooling of mineral interests, and reclamation of production sites to control adverse effects on natural resources.

• Financial Assurance: Operators must provide financial assurance to cover potential damages and reclamation costs associated with gas resource development.

• Fees and Revenues: The bill establishes permit fees and annual fees for gas resource development operations, directing revenue to cover administrative costs and enforcement.

• Criminal and Civil Penalties: Provides for criminal and civil penalties for violations of gas resource development laws and regulations. Civil penalties could be up to $10,000 per day per violation.

• Administration and Oversight: The bill assigns duties to the Minnesota Commissioner of Natural Resources and the Pollution Control Agency for oversight and enforcement. It includes provisions for the inspection of gas wells and other related facilities.

• Rulemaking for Gas Wells: The Commissioner of Health is authorized to adopt expedited rules for gas well construction, maintenance, and sealing.

• Appropriations and Funding: Specifies appropriations for implementing the gas exploration and production permitting program.

Significant Changes

• Repeal of Existing Laws: Repeals some sections of Minnesota statutes related to mineral resource management to be incorporated into the new framework set out by this bill.

• Addition of New Definitions and Regulatory Authorities: Introduces new subdivisions and definitions into existing statutes to provide clarity on gas resource development and the roles of involved parties.

Relevant Terms

• Gas resources
• Rulemaking
• Permitting
• Environmental impact
• Financial assurance
• Spacing units
• Pooling orders
• Reclamation
• Civil penalties
• Commissioner of Natural Resources
• Commissioner of Health
• Gas well contractor