Chapter 02-03. Oil and Gas Conservation

The terms used throughout this chapter have the same meaning as in North Dakota Century Code chapter 38-08 except: 1. "Adjusted allowable" means the allowable production a proration unit receives after all adjustments are applied. 2. "Allocated pool" is one in which the total oil…

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 crude …

Repealed effective January 1, 1983. 7

Repealed effective January 1, 1983.

and gas. 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 conservation of oil and gas. However, it shall be the responsibility of all the owners, operators, and …

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 drilling, equipping, operating, producing, plugging, and site reclamation of oil and ga…

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 …

Repealed effective January 1, 1983.

Forms required by the commission will be furnished upon request. The commission will provide electronic submission for most requests and reports. History: Amended effective April 1, 2022. General Authority: NDCC 38-08-04 Law Implemented: NDCC 38-08-04 8…

The commission may from time to time enter agreements with state and federal government agencies, tribal governments, industry committees, and individuals with respect to special projects, services, and studies relating to conservation of oil and gas. History: Amended effective A…

Repealed effective January 1, 1983.

In a matter pending before the commission, all prehearing motions must be served by the moving party upon all parties affected by the motion. Service must be upon a party unless a party is represented by an attorney, in which case service must be upon the attorney. Service must b…

Every person acting as principal or agent for another or independently engaged in the drilling of oil or gas wells, or in the production, storage, transportation, refining, reclaiming, treating, marketing, or processing of crude oil or natural gas, engaged in the disposal of prod…

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

The director shall maintain a record of official well names, to be known as the well-name register, in which shall be entered: (1) the name and location of each well; (2) the well file number; (3) the name of the operator, or the operator's agent; and (4) any subsequent name or n…

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

Repealed effective July 1, 1996.

1. This section is applicable to all allocation and custody transfer metering stations measuring production from oil and gas wells within the state of North Dakota, including private, state, and federal wells. If these rules differ from federal requirements on measurement of prod…

1. Bond requirements. Prior to commencing construction of a site or appurtenance or road access thereto, any person who proposes to drill a well for oil, gas, injection, or source well for use in enhanced recovery operations, shall submit to the director and obtain the approval o…

1. Before any person may begin any well-site preparation for the drilling of any well other than surveying and staking, such person shall obtain approval from the director. An application for permit to drill must be filed with the director, together with a permit fee of one hundr…

The principal on the bond covering a well, treating plant, or facility is the operator. The operator is responsible for compliance with all applicable laws. A dispute over designation of the operator may be addressed by the commission. In doing so, the factors the commission may …

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 following govern the recovery of the risk penalty pursuant to subsection 3 of North Dakota Century Code section 38-08-08 and subsection 3 of North Dakota Century Code section 38-08-09.4: 1. An owner may recover the risk penalty under the provisions of subsection 3 of North Da…

Every well and facility associated with the production, transportation, purchasing, storage, treating, or processing of oil, gas, and water except plugged wells shall be identified by a sign. The sign shall be of durable construction and the lettering thereon shall be kept in a l…

In the absence of an order by the commission setting spacing units for a pool: 1. a. Vertical or directional oil wells projected to a depth not deeper than the Mission Canyon formation must be drilled upon a governmental quarter-quarter section or equivalent lot, located not less…

If upon application for an exception location, the commission finds that a well drilled at the location prescribed by any applicable rule or order of the commission would not produce in paying quantities, that surface conditions would substantially add to the burden or hazard of …

1. In the construction of a well site, saltwater handling facility, treating plant, access road, and all associated facilities, the topsoil must be removed, stockpiled, and stabilized or otherwise reserved for use when the area is reclaimed. "Topsoil" means the suitable plant gro…

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 oil and gas must be properly disposed of in an authorized facility in accordance with all applicable local, state, and federal laws and regulations. All waste material recovered from spills, leaks, and other such eve…

Except as otherwise provided in this section and sections 43-02-03-19.4, 43-02-03-19.5, and 43-02-03-51.3, no saltwater, drilling mud, crude oil, waste oil, or other waste may be stored in earthen pits or open receptacles except in an emergency and upon approval by the director. …

A pit may be utilized to bury drill cuttings and solids generated during well drilling 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 d…

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 of any well, all oil, gas, and water strata must be sealed or separated where necessary in order to prevent their contents from passing into other strata. All freshwaters and waters of present or probable value for domestic, commercial, or stock purposes must …

1. All wells drilled must be constructed with strings of casing which must be properly cemented at sufficient depths to adequately protect and isolate all formations containing water, oil, or gas or any combination of these; protect the pipe through salt sections encountered; and…

1. In any well that appears to have defective casing or cementing, the operator shall report the defect to the director verbally and file a well sundry notice if required by the director. To properly evaluate the condition of the well, the operator shall diligently conduct tests …

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…

In pulling strings of casing from any well, the space above the casing stub must 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 any strata bearing oil or gas not p…

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 …

Multiple zone completions in any pool may be permitted by the director. An application for a multiple zone completion shall be accompanied by an exhibit showing the location of all wells on the applicant's lease and all offset wells on offset leases and shall set forth all materi…

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

1. Prior to performing any hydraulic fracture stimulation, including refracs, through a frac string run inside the casing string: a. Remedial work must be performed on all casing strings deemed defective pursuant to section 43-02-03-22 prior to performance at the discretion of th…

1. During drilling operations all oil wells must be cleaned into a pit or tank, not less than forty feet [12.19 meters] from the derrick floor and one hundred fifty feet [45.72 meters] from any fire hazard. 36 2. All flowing oil wells must be produced through an approved oil and …

1. Wellhead and lease equipment with a working pressure at least equivalent to the calculated or known pressure to which the equipment may be subjected must be installed and maintained. Equipment on producing wells must be installed to facilitate gas-oil ratio tests, and static b…

1. Application of section. This section is applicable to all underground gathering pipelines designed for or capable of transporting crude oil or produced water from an oil and gas production facility for the purpose of disposal, storage, or for sale purposes. If these rules diff…

All persons controlling or operating any well, pipeline and associated aboveground equipment, receiving tank, storage tank, facility, treating plant, or any other receptacle or production facility associated with oil, gas, or water production, injection, processing, or well servi…

At no time shall any spill or leak be allowed to flow over, pool, or rest on the surface of the land or infiltrate the soil. Discharged fluids must be properly removed and may not be allowed to remain standing within or outside of diked areas, although the remediation of such flu…

1. After the plugging of a well, a well plugging report must be filed with the director. After the completion of a well, recompletion of a well in a different pool, or drilling horizontally in an existing pool, a well completion report must be filed with the director. The operato…

Stratigraphic test and core holes shall be permitted the same as oil and gas wells, although no setback from a drilling unit shall be required. History: Amended effective April 30, 1981; January 1, 1983; July 1, 2002. General Authority: NDCC 38-08-04 Law Implemented: NDCC 38-08-0…

The operator or the operator's agent shall file a notice of intention (form 4) to plug with the director, 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, the name of …

All wells shall be plugged in a manner which will confine permanently all 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 combination as may be approved…