The recommendations include:
- After June 1, 2014, before filing an application for a drilling permit, upstream (producers) and midstream companies (natural gas processors and gatherers) would be required to create a Gas Capture Plan (GCP). Each GCP would include a location of the well and closest pipeline and processing plant; the system capacity of gathering and transport gas lines; the volume of gas flowing from multi-well pads; and a time period for connection. The companies must attach an affidavit that the GCP was provided to gathering companies in the area.
- A GCP is required for all future increased density, temporary spacing and proper spacing cases.
- A failure to submit a GCP may result in a denial or suspension of new drilling permits, while existing wells may be required to restrict production pending compliance.
- A web-based pipeline incident report form should be developed to provide landowners with an easy notification system for problems and concerns.
- There should be semi-annual meetings with gathering companies to determine the effect of the GCPs, production curtailments, contracts, and service interruptions.
- There should be a docket for hearing a motion to review and revise all Bakken and Three Forks field rules governing production curtailment.
This post was written by Barclay Nicholson (firstname.lastname@example.org or 713.651.3662) from Norton Rose Fulbright's Energy Practice Group.