Chapter 02-02. Subsurface Mineral Exploration and Development

The terms used throughout this chapter have the same meaning as in North Dakota Century Code chapter 38-12, except: 1. "Barrel" means forty-two United States gallons [158.99 liters] measured at sixty degrees Fahrenheit [15.56 degrees Celsius] and fourteen and seventy-three hundre…

This chapter contains general rules of statewide application which have been adopted by the industrial commission to conserve the natural resources of North Dakota, to prevent waste, and to provide for operation in a manner as to protect correlative rights of all owners of subsur…

Repealed effective July 1, 2013.

Repealed effective July 1, 2013.

development, and production of subsurface minerals. The commission, its agents, representatives, and employees are charged with the duty and obligation of enforcing all rules and statutes of North Dakota relating to the exploration, development, and production of subsurface miner…

All operators, contractors, drillers, carriers, gas distributors, service companies, pipe pulling and salvaging contractors, or other persons shall at all times conduct their operations in the mining, drilling, equipping, operating, producing, plugging, and site reclamation of su…

The commission recognizes that all persons drilling and producing on United States government land shall comply with the United States government regulations. Such persons shall also comply with all applicable state rules and regulations. Copies of the sundry notices, reports on …

Forms for written notices, requests, and reports required by the commission will be furnished upon request. These forms shall be of such nature as prescribed by the commission to cover proposed work and to report the results of completed work. General Authority: NDCC 38-12-02 Law…

The commission may from time to time enter into arrangements with state and federal government agencies, industry committees, and individuals with respect to special projects, services, and studies relating to subsurface minerals. History: Amended effective July 1, 2013. General …

Every person acting as principal or agent for another or independently engaged in the drilling for, or in the production, storage, transportation, refining, reclaiming, treating, marketing, or processing of subsurface minerals in North Dakota shall immediately file with the state…

By special order of the commission, periodic surveys may be made of the reservoirs in the state containing subsurface minerals. These surveys will be thorough and complete and shall be made using methods approved by the director. The condition of the reservoirs containing subsurf…

The state geologist shall maintain an official permit list and a record of official well names. 1. The official permit list must include: a. The name of the permitholder; b. The permit number; c. The date the permit was issued; and d. The location of the permit. 2. The record of …

The commission, director, and their representatives shall have access to all well records wherever located. All owners, operators, drilling contractors, drillers, service companies, or other persons engaged in drilling, completing, producing, or servicing wells shall permit the c…

Before any person receives a permit to explore for or produce subsurface minerals, the person shall submit to the commission and obtain its approval of a surety bond or cash bond. An alternate form of security may be approved by the commission after notice and hearing, as provide…

The principal on the bond covering a well is the operator of the well. The operator is responsible for compliance with all laws relating to the well and well site. A dispute over designation of the operator of a well may be addressed by the commission. In doing so, the factors th…

A permit shall be required prior to commencement of operations for the exploration or evaluation of subsurface minerals. The application for a permit to drill (form 1-sm) shall be filed with the director, together with a permit fee of one hundred dollars. In extenuating circumsta…

1. After notice and hearing, the commission may revoke a drilling, recompletion, or reentry permit or limit its duration. The commission may act upon its own motion or upon the application of an owner in the spacing or drilling unit. In deciding whether to revoke or limit a permi…

The operator shall submit plans and specifications to the director before constructing the following surface facilities: 1. Process or recovery plants and satellite facilities; 2. Ponds and impoundments; 3. Pipelines; 10 4. Well houses or transfer stations; 5. Fuel storage areas;…

1. The operator shall develop, for the department's approval, a construction quality assurance plan that addresses all aspects of constructing surface facilities. The plan must include the following: a. A description of the responsibilities and authorities of key personnel, inclu…

1. Topsoil must be removed before the installation of underground pipelines and replaced after pipelines are installed. 2. Pipeline systems must be constructed with materials that have the strength, thickness, and chemical properties that prevent failure due to pressure gradients…

All liquid waste streams must be: 1. Disposed of in a permitted class I or V underground injection control disposal well under a state department of health underground injection control program permit in accordance with chapter 33-25-01; 2. Land applied under a solid waste permit…

All well locations must be approved by the commission, after notification and hearing. No well drilled for solution mining of subsurface minerals shall be located closer than five hundred feet [152.4 meters] from the boundary line of property owned or leased by the operator excep…

An operator may apply for an exception to drill at a distance less than five hundred feet [152.4 meters] from the boundary line of a property owned or leased by the operator if the operator submits geological and other technical data to the commission which indicates that waste w…

When any well is drilled or deepened, tests to determine the deviation from the vertical shall be taken at least every one thousand feet [304.8 meters]. The director is authorized to waive the deviation test for a shallow gas well if the necessity therefor can be demonstrated to …

Every well associated with the exploration or mining of subsurface minerals shall be identified by a sign posted on the derrick or not more than twenty feet [6.10 meters] from the well. The sign shall be of durable construction and the lettering thereon shall be kept in a legible…

In the construction of a drill site, access road, and all associated facilities, topsoil shall be removed, stockpiled, and stabilized or otherwise reserved for use when the area is reclaimed. "Topsoil" means the suitable plant growth material on the surface; however, in no event …

Repealed effective July 1, 2013.

All open pits and ponds which contain saltwater must be fenced. All pits and ponds which contain oil must be fenced, screened, and netted. This is not to be construed as requiring the fencing, screening, or netting of a drilling pit or reserve pit used solely for drilling, comple…

All waste material associated with exploration or production of a subsurface mineral through deep wells must be properly disposed of in an authorized facility. All waste material recovered from spills, leaks, and undesirable events shall immediately be disposed of in an authorize…

Except as otherwise provided in sections 43-02-02-15.4 and 43-02-02-15.5, no saltwater, drilling mud, crude oil, waste oil, or other waste shall be stored in earthen pits or open receptacles except in an emergency and upon approval by the director. A lined earthen pit or open rec…

A pit may be utilized to bury drill cuttings and solids generated during well and completion operations, providing the pit can be constructed, used, and reclaimed in a manner that will prevent pollution of the land surface and freshwaters. In special circumstances, the director m…

For wells drilled to a strata or formation, including lignite or coal strata or seam, located above the depth of five thousand feet [1524 meters] below the surface, or located more than five thousand feet [1524 meters] below the surface but above the top of the Rierdon formation,…

During the drilling and operation of any well for subsurface minerals, all mineral-bearing and water strata above the producing horizon shall be sealed or separated where necessary in order to prevent their contents from passing into other strata. All freshwaters and waters of pr…

All wells drilled for subsurface minerals below the base of the Fox Hills formation shall be completed with strings of casing which shall be properly cemented at sufficient depths to adequately protect and isolate all formations containing water, subsurface minerals, oil, or gas …

In any well that appears to have defective casing or cementing, the operator shall report the defect to the state geologist on a sundry notice (form 4-sm). Prior to attempting remedial work on any casing, the operator must obtain approval from the director and proceed with dilige…

During treatment operations, the director may prescribe pretreatment casing pressure testing as well as other operational requirements designed to protect wellhead and casing strings. If damage results to the casing or the casing seat from perforating, fracturing, or chemically t…

In all drilling operations, proper and necessary precautions shall be taken for keeping the well under control, including the use of a blowout preventer and high-pressure fittings attached to properly cemented casing strings adequate to withstand anticipated pressures. During the…

Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least one hundred fifty feet [45.72 meters] from the vicinity of wells and tanks. All waste shall be burned or disposed of in such manner as to avoid creating a fire hazard. All vegetat…

When removing casing strings from any subsurface mineral or injection well, the space above the casing stub shall be kept and left full of fluid with adequate gel strength and specific gravity, cement, or combination thereof, to seal off all freshwater and saltwater strata and an…

Wellhead and lease equipment with a working pressure at least equivalent to the calculated or known pressure to which the equipment may be subjected shall be installed and maintained. Valves shall be installed and maintained in good working order to permit pressure readings to be…

All persons controlling or operating any well, pipeline, receiving tank, storage tank, or production facility into which subsurface minerals or water is produced, received, stored, processed, or through which subsurface minerals or water is injected, piped, or transported, shall …

At no time shall any spill or leak be allowed to flow over, pool, or rest on the surface of the land or infiltrate soil. Discharge fluids must be properly removed and may not be allowed to remain standing within or outside of diked areas. Operators must respond with appropriate r…

After the plugging of a well, a plugging records (form 7-sm) shall be filed with the state geologist. After the completion of a well, recompletion of a well in a different pool, or drilling horizontally in an existing pool, a completion report (form 6-sm) shall be filed with the …

Repealed effective July 1, 2013.

The operator shall conduct a subsurface pressure test on the discovery well of any new pool discovered and shall report the results to the director within thirty days after the completion of such discovery well. Drill stem test pressures are acceptable. After the discovery of a n…

Except as directed by the commission after notice and hearing, each pool shall be produced as a single common reservoir without commingling in the well bore of fluids from different pools. After fluids from different pools have been brought to the surface, such fluids may be comm…

The operator or the operator's agent shall file a notice of intention (form 4-sm) to plug with the state geologist, and obtain the approval of the director, prior to the commencement of plugging or plug-back operations. The notice shall state the name and location of the well, th…

All wells shall be plugged in a manner which will confine permanently all subsurface minerals, oil, gas, and water in the separate strata originally containing them. This operation shall be accomplished by the use of mud-laden fluid, cement, and plugs, used singly or in combinati…

1. The removal of production equipment or the failure to produce subsurface minerals, or the failure to produce water from the source well, for one year constitutes abandonment of the well. The removal of injection equipment or the failure to use an injection well for one year co…

1. Within a reasonable time, but not more than one year, after a well is plugged, or if a permit expires, has been canceled or revoked, the well site, access road, and other associated facilities constructed for the well shall be reclaimed as closely as practicable to original co…