SB 2065 Summary

• Creates new Chapter 38-25 of North Dakota Century Code establishing Industrial Commission jurisdiction over underground storage permits and amalgamation of oil and gas storage facilities.

• Requires public hearings and notice to surface owners, mineral lessees, and pore space owners before issuing storage permits for oil and gas reservoirs, salt caverns, and saline formations.

• Sets consent thresholds for storage facilities: 55% for oil and gas reservoirs, 60% for saline reservoirs and salt caverns, with nonconsenting owners entitled to equitable compensation.

• Allows commission to require storage operators to provide financial assurance bonds and permits commission continuing jurisdiction to amend or revoke permits after notice and hearing.

• Modifies oil and gas lease provisions to allow reduced royalties for stripper well properties and secondary/tertiary recovery projects, and specifies royalties on injected gas are due only when gas is withdrawn and sold.