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. The legislation introduces new definitions and policies aimed at minimizing unnecessary drilling, preventing waste, and protecting correlative rights. Notably, it allows for the commercial development of gas resources in state wilderness areas without surface disturbance and removes previous requirements for demonstrating control of the extraction area prior to obtaining a permit. The bill also outlines specific requirements for gas production permits, including a preproduction report and annual reporting on production and reclamation activities.

Additionally, the bill introduces regulations for gas well construction and sealing, requiring contractors to notify the commissioner before beginning construction and prohibiting certain practices like hydraulic fracturing until rules are established. It mandates that operators provide monthly statements to nonconsenting owners regarding costs and production, and it establishes a gas resource administration account to fund monitoring and enforcement. The bill also modifies tax provisions related to mining and production activities, ensuring proper tax compliance and reporting while allocating tax proceeds from mining activities to local municipalities and educational institutions. Overall, the legislation aims to balance resource development with environmental protection and regulatory oversight, ensuring equitable and efficient management of Minnesota's gas resources.

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