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ND SB2123

Bill

Status

Passed

3/7/2019

Primary Sponsor

Dale Patten

Click for details

Origin

Senate

66th Legislative Assembly

AI Summary

  • Authorizes the North Dakota Industrial Commission to enter contracts for plugging/replugging oil and gas wells, reclaiming abandoned well sites, and reclaiming saltwater handling facilities and pipelines without competitive bidding when wells are leaking or pose public health threats.

  • Establishes an abandoned oil and gas well plugging and site reclamation fund receiving revenue from permit fees, forfeited bonds, federal funds, donations, oil and gas impact fund transfers, civil penalties, and recovered equipment sales.

  • Allows the fund to be used for well plugging, site reclamation, paying mineral owners their royalty shares in confiscated oil, reclaiming pipelines and facilities, and transferring up to $5 million per biennium to the environmental quality restoration fund for oil and gas development emergencies.

  • Grants the state a cause of action to recover reasonable plugging and reclamation expenses from well operators and working interest owners at the time of abandonment, with liability proportional to each owner's working interest share.

  • Authorizes the commission to confiscate production-related equipment and salable oil from well sites to offset plugging and reclamation costs, with mineral owners receiving royalty payments for confiscated oil, after notice and hearing.

Legislative Description

The authorization to enter contracts, abandoned oil and gas well plugging and site reclamation fund, and confiscation of equipment and recovery for costs of plugging and reclamation of sites with bonds held by the North Dakota industrial commission.

Last Action

Signed by Governor 03/06

3/7/2019

Committee Referrals

Energy and Natural Resources1/3/2019

Full Bill Text

No bill text available