Several states have implemented programs to help operators address flaring and venting issues and accelerate the adoption of sustainable technologies. One such example is North Dakota.
The routine flaring of natural gas at production sites is both an environmental issue and a waste of natural resources.
As oil and gas producers come under increasing pressure from stakeholders to invest in flaring elimination and emissions reduction, they’re garnering support from one particularly vested group – the states in which they operate.
Several states have implemented programs to help operators address flaring and venting issues and accelerate the adoption of sustainable technologies.
One such example is North Dakota.
Legislators in Bismarck passed HB 2328 earlier this year, which provides for a production tax credit of up to $6,000 per well, per month, to offset the cost of gas capture systems. The credit can last up to one year.
HB 2328 has a two-year life, but could be renewed or extended if the funds are used and the program is found to be effective.
The primary target of this program is stranded gas, produced at sites where there is no gas gathering pipeline and where new take-away capacity is unlikely to be built in the foreseeable future.
Technologies that burn the gas for a beneficial purpose, such as power generation, and those that strip out natural gas liquids to reduce flaring will be direct beneficiaries of the new law.
The North Dakota Industrial Commission currently requires operators to capture 91% of their produced gas, companywide. Bruce Hicks, Deputy Director of the NDIC, estimates the actual overall gas capture rate today is 94%.
This estimate suggests that operators in North Dakota have already made significant headway on reducing routine flaring.
The state is also funding research for new energy technologies through several state agencies, including the Energy and Environmental Research Center (EERC) at the University of North Dakota, the Oil and Gas Research Council, and the Clean Sustainable Energy Program, which was also approved this year and is in the process of being staffed.
For operators with sites that have the ability to sell their gas, EcoVapor’s patented technology can benefit operators by capturing all of the low-pressure site vapor – eliminating low pressure flaring and earning additional revenue from the high-BTU gas.
While it’s too soon to evaluate the impact of these programs, it is encouraging to see state governments providing oil and gas producers an incentive-based approach, instead of reflexively turning to regulation.
Hopefully, the North Dakota experiment will prove a success and serve as a model for other states seeking to reduce the industry’s overall emissions footprint.
EcoVapor is committed to helping oil and gas operators take steps toward a zero emissions wellsite. Our well site vapor capture and treatment technologies help put produced gas into the sales pipeline where it belongs, eliminating routine flaring and venting and greatly reducing greenhouse gas emissions. Contact us at info@ecovaporrs.com for more information and to discuss how we can help you on your journey to zero emissions.
Please contact us at info@ecovaporrs.com for more information.
About EcoVapor
EcoVapor Recovery Systems provides solutions to pressing oil and natural gas production problems. EcoVapor’s technical team has extensive expertise in vapor recovery processes, and includes world-class engineers with an innovative approach to industry challenges. In over 120 installations in all major US basins, our patented ZerO2 solution helps oil and gas producers meet their air emissions and regulatory compliance goals. EcoVapor is headquartered in Denver, Colorado and has field locations in Greeley, Colorado and Midland, Texas.
Contact
EcoVapor Recovery Systems
700 17th St., Suite 950
Denver, CO 80202
Email: Info@EcoVaporRS.com
Phone: 844-NOFLARE (844-663-5273)