Flaring exemption

The connection of a well to a natural gas gathering line is "economically infeasible" under North Dakota Century Code section 38-08-06.4, if the direct costs of connecting the well to the line and the direct costs of operating the facilities connecting the well to the line during the life of the well, are greater than the amount of money the operator is likely to receive for the gas, less production taxes and royalties, should the well be connected. In making this calculation, the applicant may add ten percent to the amount of the cost of connecting the well and of operating the connection facilities used to determine whether a connection is economically infeasible. This ten percent may be added in consideration of the cost of money and other overhead costs that are not figured in the direct costs of connecting the well and operating the connecting facilities. An applicant for an exemption under North Dakota Century Code section 38-08-06.4 must, at the minimum, present evidence covering the following areas: 1. Basis for the gas price used to determine whether it is economically infeasible to connect the well to a natural gas gathering line; 2. Cost of connecting the well to the line and operating the facilities connecting the well to the line; 3. Current daily rate of the amount of gas flared; 4. The amount of gas reserves and the amount of gas available for sale; 5. Documentation that it is economically infeasible to equip the well with an electrical generator to produce electricity from gas; and 6. Documentation that it is economically infeasible to equip the well with a system that intakes seventy-five percent of the gas and natural gas liquids volume from the well for beneficial consumption by means of compression to liquid for use as fuel, transport to a processing facility, production of petrochemicals or fertilizer, conversion to liquid fuels, and separating and collecting over fifty percent of the propane and heavier hydrocarbons.