38-08-04.5. Abandoned oil and gas well plugging and site reclamation fund - Continuing appropriation - Budget section report

38-08-04.5. Abandoned oil and gas well plugging and site reclamation fund - Continuing appropriation - Budget section report. There is created an abandoned oil and gas well plugging and site reclamation fund. 1. Revenue to the fund must include: a. Fees collected by the oil and gas division of the industrial commission for permits or other services. b. Moneys received from the forfeiture of drilling and reclamation bonds. c. Moneys received from any federal agency for the purpose of this section. d. Moneys donated to the commission for the purposes of this section. e. Moneys received from the state's oil and gas impact fund. f. Moneys recovered under the provisions of section 38-08-04.8. g. Moneys recovered from the sale of equipment and oil confiscated under section 38-08-04.9. h. Moneys transferred from the cash bond fund under section 38-08-04.11. i. Such other moneys as may be deposited in the fund for use in carrying out the purposes of plugging or replugging of wells or the restoration of well sites. j. Civil penalties assessed under section 38-08-16. 2. Moneys in the fund may be used for the following purposes: a. Contracting for the plugging of abandoned wells. b. Contracting for the reclamation of abandoned drilling and production sites, saltwater disposal pits, drilling fluid pits, and access roads. c. To pay mineral owners their royalty share in confiscated oil and to defray the expenses of the postproduction royalty oversight program provided under section 4.1-01-26. d. Defraying costs incurred under section 38-08-04.4 in reclamation of saltwater handling facilities, treating plants, and oil and gas-related pipelines and associated facilities and to defray the expenses of the pipeline restoration and reclamation oversight program provided under chapter 4.1-01. e. Reclamation and restoration of land and water resources impacted by oil and gas development, including related pipelines and facilities that were abandoned or were left in an inadequate reclamation status before August 1, 1983, and for which there is not any continuing reclamation responsibility under state law. Land and water degraded by any willful act of the current or any former surface owner are not eligible for reclamation or restoration. The commission may expend up to five million dollars per biennium from the fund in the following priority: (1) For the restoration of eligible land and water that are degraded by the adverse effects of oil and gas development including related pipelines and facilities. (2) For the development of publicly owned land adversely affected by oil and gas development including related pipelines and facilities. (3) For administrative expenses and cost in developing an abandoned site reclamation plan and the program. (4) Demonstration projects for the development of reclamation and water quality control program methods and techniques for oil and gas development, including related pipelines and facilities. f. For transfer by the office of management and budget, upon request of the industrial commission, to the environmental quality restoration fund for use by the department of environmental quality for the purposes provided under chapter 23.1-10, if to address environmental emergencies relating to oil and natural gas development, including the disposal of oilfield waste and oil or natural gas production and transportation by rail, road, or pipeline. If a transfer requested by the industrial commission has been made under this subdivision, the department of environmental quality shall request the office of management and budget to transfer from subsequent deposits in the environmental quality restoration fund an amount sufficient to restore the amount transferred from the abandoned oil and gas well plugging and site reclamation fund. g. Administrative expenses, including salaries and wages and operating expenses, subject to legislative appropriation. 3. This fund must be maintained as a special fund and all moneys transferred into the fund are appropriated and must be used and disbursed solely for the purposes in this section. 4. The commission shall report to the budget section of the legislative management on the balance of the fund and expenditures from the fund each biennium.