MN SF2530

Establishes a comprehensive regulatory framework for natural gas development in Minnesota, requiring permits from the Commissioner of Natural Resources before any gas extraction operations can begin, with a $10,000 application fee and $25,000 annual permit fee

Creates spacing unit and pooling requirements to prevent drilling unnecessary wells and protect mineral rights owners, including provisions allowing involuntary pooling when an operator controls at least 50% of mineral interests, with nonconsenting owners entitled to 18.75% royalty

Prohibits gas development in protected areas including the Boundary Waters Canoe Area Wilderness, Voyageurs National Park, state wilderness areas, scientific and natural areas, and requires minimum 500-foot setbacks from dwellings, water wells, and 2,000 feet from schools

Requires gas well contractors to obtain licenses from the Commissioner of Health, bans hydraulic fracturing, prohibits oil well exploration and construction entirely, and mandates specific construction standards including steel casing meeting API specifications

Appropriates $660,000 annually in FY2026-2027 from the general fund plus $330,000 annually from the minerals management account to DNR for gas resource permitting, and $863,000 in FY2026 plus $395,000 annually to the Department of Health for gas well oversight programs