Purpose of the Bill

This bill aims to regulate the exploration and development of gas resources in Minnesota to ensure it happens in an environmentally responsible and orderly manner. It involves updating and creating statutes on permitting and managing gas wells, which include exploration, production, and associated facilities.

Main Provisions

• Permit Requirements: Individuals or companies must acquire permits for gas resource development. This involves providing plans for exploration, production, and reclamation activities.
• Rulemaking and Regulations: Various state agencies are tasked with creating rules that regulate aspects like air and water quality, public health, environmental review, and worker safety in gas resource development.
• Financial Assurance: Permittees must provide financial assurance to cover the costs of reclamation and potential damages, thus ensuring funds are available for cleanup and restoration.
• Spacing and Pooling: Establishes protocols for spacing and pooling of gas wells to prevent resource waste, over-drilling, and to protect equitable rights of resource owners.
• Well Construction and Safety: Sets standards for the construction, operation, and sealing of gas wells, including the requirement for licensed contractors and notification procedures.
• Application and Renewal Fees: Includes fees for applications, permits, and activities related to gas resource development, supporting the monitoring and regulatory responsibilities of state departments.
• Contested Cases: Provides a framework for stakeholders to request contested case hearings in disputes over permit issuance or operations.

Significant Changes to Existing Law

• Creation of New Regulatory Framework: Introduces new statutes and repeals certain outdated provisions to streamline the regulation of gas resources.
• Establishment of Criminal Penalties: Introduces penalties for violations of the new rules and conditions, including fines and potential criminal charges for noncompliance.
• Appropriation of Funds: Allocates specific funds to support the development and monitoring of gas exploration and production activities within the state.

Relevant Terms

gas resource development, exploration, permits, financial assurance, spacing unit, pooling, gas wells, rulemaking, environmental protection, reclamation, contested case, public health, temporary regulatory framework, criminal penalties.