HF5350 Summary

• Authorizes the Commissioner of Natural Resources to issue leases for gas and oil exploration and production on state-owned lands with Executive Council approval, with primary terms not exceeding 5 years plus the unexpired calendar year.

• Establishes minimum lease terms including a $15 per acre bonus, $5 per acre annual rental rates, and 18.75 percent production royalties on gross sales prices.

• Requires permits from the Commissioner of Natural Resources for all gas and oil production, with a moratorium on permit issuance until rules are adopted under section 93.514.

• Directs five state agencies (Pollution Control, Health, Environmental Quality Board, Natural Resources, and Labor and Industry) to adopt rules governing gas and oil exploration and production within 24 months.

• Creates a Minnesota Gas and Oil Resources Technical Advisory Committee to develop recommendations for a temporary regulatory framework and submit statutory and policy recommendations to the legislature by January 15, 2025, with $768,000 and $2,406,000 appropriated for implementation through June 30, 2027.