HB 1054 Summary

• Amends North Dakota Century Code section 38-08-04 to modify bond requirements and enforcement procedures for oil and gas well operators.

• Changes language from "may" to "shall" requiring the Industrial Commission to immediately place wells in abandoned-well status on a single-well bond equal to plugging and reclamation costs if not returned to production, temporarily abandoned, or plugged within six months.

• Expands bond options to allow operators to deposit collateral bonds, self-bonds, cash, or alternative forms of security approved by the commission instead of traditional surety bonds, including for underground gathering pipelines transferring oil or produced water.

• Adds authority for the commission to consider safety and road access when regulating saltwater disposal well operations and associated facilities.

• Maintains existing provisions requiring well identification, logging, filing, proper drilling and plugging practices, production measurement, and record-keeping to prevent waste and environmental contamination.