Flaring Legislation

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Flaring Legislation

Posted:

By Donnell Preskey, Assistant News Director - email

The North Dakota House passes a plan to give incentives to oil companies to reduce flaring of natural gas.

The bill gives a two year tax exemption to companies who use non-traditional ways to process natural gas at oil sites.

Currently 30% of the natural gas being produced in the state is being wasted because gas pipelines and facilities can't keep up with production.

Units that capture 75% of the natural gas and process it for alternative uses will be eligible for the tax break.

The natural gas can be captured and turned into anhydrous ammonia, diesel fuel or be used to power a nearby drilling rig.

Oil and Gas experts say units could reduce 1/3 of the flaring problem in western North Dakota.

House Bill 1134 now goes to the Senate for approval.

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