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ND oil industry missed October's flaring target, revised numbers show

BISMARCK-Revised natural gas numbers released this week show North Dakota's oil industry failed to meet the state gas capture target in October.The latest numbers from the Department of Mineral Resources show the industry flared slightly more tha...

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North Dakota natural gas flaring scene. Submitted photo

BISMARCK-Revised natural gas numbers released this week show North Dakota's oil industry failed to meet the state gas capture target in October.

The latest numbers from the Department of Mineral Resources show the industry flared slightly more than 16 percent of Bakken natural gas produced in October, not 15 percent as the agency reported from preliminary figures.

That means the industry did not meet the targets set by the North Dakota Industrial Commission, which requires companies to capture 85 percent of Bakken gas, or flare no more than 15 percent.

Overall, the industry flared an average of 347 million cubic feet per day of natural gas in October, the revised numbers show, up from the 320 million cubic feet per day initially reported.

The Industrial Commission policy allows regulators to limit oil production for companies that fail to meet gas capture targets. However, the policy also includes many exceptions, making those oil production restrictions rare. For example, regulators do not limit production from wells that already produce less than 100 barrels per day.

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In October, 11 companies flared more than 15 percent of the natural gas they produced, but none of the companies were ordered to limit oil production because they met one of the conditions in the policy, said Alison Ritter, spokeswoman for the Department of Mineral Resources.

The state releases preliminary oil and gas numbers two months after it is produced, then releases revised numbers three months later based on amendments submitted by companies. Gas capture goals are evaluated based upon the preliminary numbers, according to the policy.

In September, the state initially reported the industry missed the gas capture target, but revised figures later showed that companies met the goal.

In November, natural gas flaring decreased to 282 million cubic feet per day, according to the preliminary figures released this week. The industry flared 13 percent of Bakken natural gas in November, meeting the state's target.

The gas capture policy is based on flaring from Bakken and Three Forks wells, which represent the majority of production. Overall flaring in November was 14 percent.

The state's gas capture targets are set to become even more aggressive later this year, at 88 percent in November.

Director of Mineral Resources Lynn Helms said this week it will take serious investment in natural gas gathering and processing to meet that target.

Helms and Justin Kringstad, director of the North Dakota Pipeline Authority, are meeting with the North Dakota Petroleum Council board of directors next week to talk about the need for more infrastructure.

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Kringstad said the state's natural gas production, more than 2 billion cubic feet per day, will soon exceed the capacity of natural gas processing plants.

To help meet that demand, Oneok has filed an application to the Public Service Commission to expand its Bear Creek natural gas processing plant north of Killdeer. The company proposes to expand the plant from a capacity of 80 million cubic feet per day up to 175 million cubic feet per day.

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