This bill seeks to enhance the regulatory framework for gas resource development in Minnesota by amending various sections of the Minnesota Statutes. It establishes a financial assurance account for gas resource development permits, allowing the State Board of Investment to manage funds collected under these permits. Key provisions include new definitions and policies aimed at preventing waste, protecting correlative rights, and ensuring site reclamation. The bill also introduces a requirement for gas extraction permits, which must include detailed operational plans and a substantial application fee. Notably, it allows for the commercial development of gas resources in state wilderness areas without surface disturbance and removes previous requirements for demonstrating control over extraction areas prior to permit issuance.

Additionally, the bill outlines the establishment and management of spacing units for gas wells, requiring operators to propose a spacing unit for each well with specific documentation and fees. It includes provisions for both voluntary and involuntary pooling of mineral interests, ensuring protections for nonconsenting owners. The legislation mandates that operators provide monthly statements to nonconsenting owners and grants the commissioner authority for inspections and investigations. Furthermore, it introduces new requirements for gas well construction and sealing, including notification protocols and restrictions on hydraulic fracturing. The bill also modifies the tax structure for mining and production activities, establishing a gross proceeds tax on gas and oil extraction, with effective dates set for taxable years beginning after December 31, 2024. Overall, the bill aims to balance resource development with environmental protection and regulatory oversight.

Statutes affected:
Introduction: 93.513, 11A.236, 86A.05, 93.514, 93.516, 93.55, 103I.001, 103I.005, 103I.601, 272.02, 272.03, 273.12, 289A.02, 289A.12, 289A.19, 290.0134, 290.0135, 290.09, 290.05, 290.923, 297A.68, 297A.71, 298.001, 298.01, 298.015, 298.016, 298.018, 298.17