ND SB2315

Gas produced from oil wells may be flared during a one-year period from the date of first production; thereafter flaring must cease and the well must be capped, connected to a gas gathering line, or equipped with an electrical generator consuming at least 75 percent of the gas.

Well operators in violation must pay royalties to royalty owners on the value of flared gas and pay gross production tax on flared gas at the rate under section 57-51-02.2.

The Industrial Commission may enforce this section, determine the value of flared gas for royalty payment purposes (with final determination), and grant exemptions upon application showing that gas line connection or electrical generator installation is economically infeasible or that no market for the gas is available.

Electrical generators and their attachment units used to produce electricity from gas are classified as personal property for all purposes.