On Thursday, May 16, 2014, the North Dakota Industrial Commission released a notice announcing new requirements for applications to drill additional wells in the Bakken and Three-Forks. The NDIC is now requiring that all applicants include a Gas Capture Plan (referred to as the GCP) as an exhibit. This new policy marks a significant change and will directly impact drilling in North Dakota. The GCP plan must contain the following information:

• A statement made by a company representative indicating:
  • The name of the gas gatherer(s) the company met with.
  • That the company supplied the gas gatherer(s) with the following information:
    • Anticipated completion date of well(s).
    • Anticipated production rates of well(s).
• A detailed gas gathering pipeline system location map which depicts the following information.
  • Name and location of the destination processing plant.
  • Name of gas gatherer and location of lines for each gas gatherer in the map vicinity.
  • The proposed route and tie-in point to connect the subject well to an existing gas line.
• Information on the existing line, to which operator proposes to connect to, including:
  • Maximum current daily capacity of the existing gas line.
  • Current throughput of the existing gas line.
  • Anticipated daily capacity of existing gas line at date of first gas sales.
  • Anticipated throughput of existing gas line at date of first gas sales.
  • Gas gatherer issues or expansion plans for the area (if known).
• A detailed flowback strategy including:
  • Anticipated date of first production.
  • Anticipated oil and gas rates and duration. If well is on a multi-well pad, include total for all wells being completed.
• Amount of gas applicant is currently flaring:
  • Statewide percentage of gas flared (total gas flared/total gas produced) for existing wells producing from the Bakken petroleum system. Note: Industry target goals are to reduce flaring to 26% by 9-1-14, 23% by 1-1-15, 15% by 1-1-16, and 10% by 9-1-20.
  • Fieldwide percentage of gas flared.
• Alternatives to flaring.
  • Explain specific alternate systems available for consideration.
  • Detail expected flaring reductions if such plans are implemented.