NEW TOWN: The three affiliated tribes on the Fort Berthold Reservation – Mandan, Hidatsa and Arikara (MHA) will be holding a meeting in the Tribal Chambers in New Town on October 9th to discuss the MHA Gas Capture Plan - a plan that supports cleaner energy and cleaner air.
Per the MHA Gas Capture Plan Concept, the U.S. Bureau of Land Management (BLM) has had "a foundation of a Gas Capture Plan (GCP) in place that has existed for decades," however they question how effective the plan has been managed and are recommending additional documentation and oversight in addition to royalty payments on flared gas. The GCP states "The Tribal Goal of No Flaring is based on motivating operators by effecting a mandated royalty system, rather than a NDIC penalty program..." and "A part of the Tribe's GCP includes operators paying a percentage of gas royalties due on a stair step time schedule. The Tribe's approach would not burden operators with additional oversight."
In reference to Bakken production, Alison Ritter of the Department of Mineral Resources states, "About one-third of production occurs within the boundaries of the Fort Berthold Indian Reservation (FBIR)" and of that percentage, "lands within the FBIR capture about seventy percent of flared gas, whereas lands outside of the FBIR capture seventy-five percent. The state wide average for flaring capture is seventy-four percent."
The state of North Dakota currently allocates a percentage of taxes collected on oil and gas production on the Reservation to the Tribe. A new agreement was signed between the Tribes and the State on June 21, 2013 following the 2013 legislative session that makes it a 50/50 split of the production and extraction taxes on both trust and fee lands.
The GCP addresses the fact that some operators may curtail their Tribal production due to NDIC Gas Capture curtailment rules and in such a case, the Tribe has a plan in place to bill the operators gas royalty amounts based on "estimated and projected royalty gas produced and flared rates."
The North Dakota Petroleum Council Government Affairs Manager, Alexis Brinkman-Baxley states, "They have invited industry to the meeting to discuss the proposed plan and any technical issues it presents. It is my understanding the goal is to work together to find an agreeable plan, but it is unclear if the Tribe plans to approve the plan at the close of this meeting or at a later date."
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