August Data Reflects Progress in Reducing Bakken Flaring | Russell T. Rudy Energy LLC
Excessive flaring has been a persistent problem for the state of North Dakota and operators in the Bakken Shale. While everyone is working together toward a solution, success has seemed elusive. Lack of gas gathering, processing and transportation infrastructure has been a significant factor. Further, as gas processing capacity comes on line, so do additional wells, which means even more gas to deal with.
Flaring causes negative economic, environmental and health impacts. Royalty owners and taxing authorities are denied payments on gas which is burned rather than sold. Flaring produces large amounts of carbon dioxide which has negative environmental, and possibly health, implications.
However, “Rigzone” reports that based on August production data, state mandated limits for flaring have been met. New regulations provide for continued reductions in flaring as a percentage of produced gas each quarter. Failure to meet these goals will result in production cutbacks for operators, which will mean reduced oil revenues. Further, the North Dakota Department of Health can enforce a flaring ban if it determines that there is a health risk. Fortunately, both operators and regulators are working together and are confident of ultimate success.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/135603/Natural .
