American Oil and Gas Reporter - October 2015 - 24

IndustryDigest
initiatives four times, Chadsey remarks,
"(The Supreme Court's ruling) simply
will add to the $50,000 the city has
paid already to put this issue on the
ballot."
He notes that The Ohio Supreme
Court in Morrison, as well as the
Cuyahoga County Court of Common
Pleas in Bass Energy Inc. v. City of
Broadview Heights, have made it clear
that cities and communities may not
prohibit drilling and that authority
resides with the state. Oil and gas
development in the state of Ohio is a
matter of statewide interest, Chadsey
notes, adding that OOGA believes it
should be managed by industry
professionals with the expertise to
adequately regulate and oversee the
industry.
But, perhaps most important, is the
broad support by the local communities
and businesses the issue has received,
Chadsey says. He notes that OOGA,
American Petroleum Institute, the Ohio
Gas Association (OGA), Ohio County
Commissioners Association, the Ohio

Farm Bureau, Affiliated Construction
Trades of Ohio and the Ohio Chamber
of Commerce filed briefs supporting
Secretary Husted's position.
"In the case involving Youngstown,
OOGA, API, OGA, Ohio Chamber of
Commerce, Youngstown-Warren
Regional Chamber of Commerce, and
the Affiliated Construction Trades of
Ohio, along with 17 local labor unions,
all filed briefs to oppose the charter
amendment being on the ballot,"
Chadsey adds.
"CELDF ordinances have been
defeated seven times in Ohio, which is
a positive thing for all Ohioans," he
points out. r

North Dakota Regulator
Pushes Back Deadline
For Gas Capture Target

BISMARCK, N.D.-The North
Dakota Industrial Commission has
granted the oil and gas industry an extra

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24 THE AMERICAN OIL & GAS REPORTER

10 months to meet the next target in the
state's effort to reduce natural gas
flaring, but accelerated the following
timeline and raised the ultimate goal in
exchange.
On Sept. 24, the North Dakota
Petroleum Council reports, the NDIC
voted unanimously to push back a
deadline of Jan. 1, 2016, to capture 85
percent of associated natural gas to
Nov. 1, 2016. The commission also
established a new interim goal of 88
percent capture by Nov. 1, 2018, and set
a new goal of capturing 91-93 percent
of associated natural gas by Nov. 1,
2020, NDPC says.
The association adds that the NDIC
instructed its Department of Mineral
Resources to do an engineering study
on the industry's capability to reach a
93 percent capture rate, as well as to
develop a plan to allow producers to
accumulate credits for exceeding gascapture targets on a 90-day rolling
basis.
According to press accounts of the
meeting, NDIC also is "leaning toward"
granting some not-yet-completed oil
wells extended temporarily abandoned
status. Under NDIC rules, wells that
have not produced for 12 months are
considered abandoned and must be
plugged.
In an effort to reduce the amount of
associated natural gas flared in North
Dakota, on July 1, 2014, NDIC formally
adopted the following gas-capture goals
(AOGR, August 2014, pg. 44):
* 74 percent by Oct. 1, 2014;
* 77 percent by Jan. 1, 2015;
* 85 percent by Jan. 1, 2016; and
* 90 percent by Oct. 1, 2020.
President Ron Ness says when it
became apparent that after meeting the
first two goals, the industry was
unlikely to meet the 2106 target, NDPC
asked the NDIC to grant companies
"another construction season or two."
"We have spent $11 billion on
natural gas infrastructure and have
another $2 billion under construction,"
Ness noted prior to the NDIC meeting.
But he said the rapid fall in crude oil
prices "has pushed rigs to the best areas,
which has resulted in more gas
production in concentrated areas. This,
coupled with a handful of major
problems in obtaining easements, has
made the Jan. 1, 2016, flaring target of
85 percent capture impossible to reach."
r



American Oil and Gas Reporter - October 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2015

Contents
American Oil and Gas Reporter - October 2015 - Cover1
American Oil and Gas Reporter - October 2015 - Cover2
American Oil and Gas Reporter - October 2015 - 3
American Oil and Gas Reporter - October 2015 - 4
American Oil and Gas Reporter - October 2015 - Contents
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American Oil and Gas Reporter - October 2015 - Cover3
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