Serving The Bakken And Beyond

ND Commission Sets Nov. 15 Hearing On Gas Gathering Regs.

The North Dakota Industrial Commission has scheduled a public hearing on Nov. 15 in Bismarck, for new regulations of natural gas gathering contracts. The purpose of the regulations is to avoid fewer service interruptions on gathering lines.

The hearing gets underway at 9 am. at the ND Oil and Gas Division hearing room at 1000 E. Calgary Ave.

“In order to maximize gas capture and make full use of North Dakota’s oil and gas production, the commission should review areas of regulatory uncertainty,” said Lynn Helms, director of the ND Dept. of Mineral Resources. He wants the commission to look at the law which applies to non-discrimination for gas gathering pipelines.

The most common contractual arrangement is one with where the shipper has no right to move gas on a system leading to unreliable gathering capacity, increased well shut-ins, and increased flaring.

The current regulatory framework is not clear on whether providing firm capacity to producers would be in violation of existing non-discrimination statutes, or how “discrimination” is defined.

“Reviewing the application of this existing statute is a step in the right direction that could clear a path forward for more gas gathering infrastructure which can be used safely and efficiently to its fullest extent,” Helms said.