This bill establishes a legal and regulatory framework for the development of Minnesota’s gas resources. It defines rules for issuing permits for gas exploration and production, introduces financial assurance requirements, and sets penalties for violations. Key provisions include:

1. Permit Requirements:

   • Individuals or entities must obtain a gas resource development permit from the Department of Natural Resources (DNR) before engaging in gas exploration or production.
   • The application process includes fees, proof of liability insurance, site maps, and development plans.
   • Annual reporting is required for all permit holders.

2. Regulatory Authority:

   • The DNR is responsible for managing gas resource development and ensuring compliance with environmental protections.
   • Other agencies such as the Minnesota Pollution Control Agency, the Department of Health, and the Environmental Quality Board may establish additional regulations.

3. Environmental and Land Use Protections:

   • Limits gas resource development in specific sensitive areas, such as state parks, scientific and natural areas, and areas near water sources or residential zones.
   • Requires setbacks from dwellings, schools, and water supplies.
   • Bans hydraulic fracturing ("fracking") until state rules are established.

4. Spacing and Pooling Rules:

   • Operators must propose and receive approval for spacing units that define drilling locations.
   • If voluntary agreements cannot be reached among mineral rights owners, the DNR can mandate compulsory pooling to allow fair distribution of resources.

5. Financial Assurance and Reclamation:

   • Operators must provide financial assurances, such as bonds or escrow accounts, to ensure funding is available for land reclamation and environmental restoration after gas extraction.
   • A contingency reclamation plan must be submitted and updated regularly.

6. Penalties and Enforcement:

   • Violations of permit conditions or environmental rules can result in civil penalties of up to $10,000 per day.
   • Criminal penalties apply for willful violations.
   • The attorney general may seek court injunctions to prevent unapproved operations.

7. Gas Well Construction and Licensing:

   • Requires licensing of contractors and registration of drilling equipment.
   • Establishes strict casing, drilling, and sealing requirements to protect groundwater.
   • Prohibits conversion of gas wells to other types of wells.

8. Funding and Appropriations:

   • Allocates state funds to develop a permitting, licensing, and inspection system.
   • Provides resources for hiring staff to enforce gas exploration regulations.

9. Rulemaking:

   • Requires the adoption of comprehensive rules on gas exploration, well construction, spacing, pooling, and financial assurance through an expedited rulemaking process.

Overall, this bill ensures the orderly and environmentally responsible extraction of natural gas in Minnesota while protecting public health, land use, and water resources.