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1 04/2018 SECTION I NORTH DAKOTA CENTURY CODE .. TAN Environmental Audits Violations .. Control of Gas and Oil Resources .. 38-08 Geophysical Exploration Requirements .. Oil and Gas Production Damage Compensation .. Subsurface Exploration Damages .. Carbon Dioxide Underground Storage .. 38-22 SECTION II GENERAL RULES .. GREEN Chapter 43-02-03 SECTION III NATURAL GAS WELL STATUS DETERMINATIONS (Repealed effective July 1, 1996) .. CHERRY Chapter 43-02-04 SECTION IV UNDERGROUND INJECTION CONTROL.

2 YELLOW Chapter 43-02-05 SECTION V ROYALTY STATEMENTS .. SALMON Chapter 43-02-06 SECTION VI STRIPPER WELL AND STRIPPER WELL PROPERTY DETERMINATION .. GRAY Chapter 43-02-08 SECTION VII WORKOVER PROJECTS .. PINK (Repealed effective April 1, 2018) Chapter 43-02-09 SECTION VIII CERTIFICATION OF SECONDARY AND TERTIARY RECOVERY PROJECTS - DETERMINATION OF INCREMENTAL PRODUCTION.

3 BLUE Chapter 43-02-10 SECTION IX CERTIFICATION OF SHALLOW GAS WELLS .. LAVENDER Chapter 43-02-11 SECTION X GEOPHYSICAL EXPLORATION REQUIREMENTS .. RED Chapter 43-02-12 SECTION XI GEOLOGIC STORAGE OF CARBON DIOXIDE .. GOLD Chapter 43-05-01 Oil and Gas Forms Geophysical Exploration Forms this PAGE INTENTIONALLY left BLANK i 08/2017 CONTROL OF GAS AND OIL RESOURCES CHAPTER 38-08 Section 38-08-01 Declaration of policy.

4 I-3 38-08-02 I-3 38-08-03 Waste prohibited .. I-5 38-08-04 Jurisdiction of commission .. I-5 Commission may employ examiners .. I-8 Director of mineral resources - Director of oil and gas Delegation to director of oil and gas .. I-8 State geologist to assist commission .. I-9 Commission authorized to enter into contracts .. I-9 Abandoned oil and gas well plugging and site reclamation Fund Continuing appropriation - Budget section report .. I-9 Oil and gas reservoir data fund - Appropriation .. I-11 Right of entry .. I-11 Recovery for costs of plugging .. I-11 Confiscation of equipment and salable oil to cover plugging costs.

5 I-12 Penalties and other relief .. I-12 Cash bond fund for plugging oil and gas wells and reclamation of oil and gas well sites - Appropriation .. I-12 Reclamation of land disturbed by oil and gas activity .. I-13 38-08-05 Drilling permit required .. I-13 38-08-06 Commission shall determine market demand and regulate the amount of production .. I-14 Natural gas well status determinations and findings .. I-15 Discrimination in the processing and purchasing of gas prohibited .. I-15 Information statement to accompany payment to royalty owner - Penalty .. I-15 Flaring of gas restricted - Imposition of tax - Payment of royalties - Industrial commission authority .. I-15 38-08-07 Commission shall set spacing units .. I-16 38-08-08 Integration of fractional tracts.

6 I-17 38-08-09 Voluntary agreements for unit operation valid .. I-18 Legislative finding .. I-19 Power and authority of commission .. I-19 Matters to be found by commission - Requisites of petition .. I-19 Order - Units and unit areas - Plan of unitization .. I-20 Ratification or approval of plan by lessees and owners .. I-22 Unlawful operation .. I-23 Status and powers of unit - Liability for expenses - Liens .. I-23 Modification of property rights, leases, and contracts - Title to property - Distribution of proceeds - Effect of operations .. I-24 ii 08/2017 Enlargement of area - Creation of new units - Amendment of I-25 Reasonableness of plan.

7 I-26 Participating by public lands .. I-26 Receipts as income .. I-26 I-27 Severability of provisions [Repealed] .. I-27 Agreement not violative of laws governing monopolies or restraint of trade .. I-27 Appeals .. I-27 Unit of more than one pool - Unit source of supply .. I-28 38-08-10 Development and operating costs of integrated fractional tracts .. I-28 38-08-11 Rules covering practice before commission .. I-28 38-08-12 Commission has power to summon witnesses, administer oaths, and to require production of records .. I-29 38-08-13 Party adversely affected may apply for reconsideration .. I-30 38-08-14 Party adversely affected may appeal to district court.

8 I-30 38-08-15 Acquisition and handling illegal oil and gas prohibited - Seizure of illegal oil and gas and sale thereof .. I-30 38-08-16 Civil and criminal penalties .. I-32 38-08-17 Action to restrain violation or threatened violation .. I-33 38-08-18 Existing regulations still in force [Omitted] .. I-33 38-08-19 Common purchasers - Discrimination in purchasing prohibited .. I-33 38-08-20 Commingling of production - Central production facility - Metering of production - Testing of meters .. I-34 Testing upon request of a royalty owner .. I-35 38-08-21 Regulation of carbon dioxide and nitrogen gas .. I-35 38-08-22 Regulation of welders by oil and gas division of industrial commission - Continuing appropriation [Repealed].

9 I-35 38-08-23 Plats .. I-35 38-08-24 Carbon sequestration and storage projects - Priority [Repealed] .. I-35 38-08-25 Hydraulic fracturing - designated as acceptable recovery process .. I-36 38-08-26 Submission of geographic information system data on oil and gas underground gathering pipelines required .. I-36 38-08-27 Controls, inspections, and engineering design on crude oil and produced water underground gathering pipelines .. I-37 iii 07/2015 GEOPHYSICAL EXPLORATION REQUIREMENTS CHAPTER Section I-38 Enforcement by commission - Persons required to comply with I-38 Deemed doing business within state - Resident agent.

10 I-38 Surety bond - Certificate - Release .. I-39 Application for permit to engage in geophysical exploration .. I-40 Exploration permit .. I-41 Notification of issuance of permit - Revocation - Suspension .. I-41 Duty to file record showing where work performed .. I-42 Duty to plug drill holes - Penalty .. I-42 Plugging requirements - Rules - Liability for damage .. I-43 Civil and Criminal Penalties .. I-43 Commission to adopt I-43 iv08/2013 OIL AND GAS PRODUCTION DAMAGE COMPENSATION CHAPTER Section Legislative findings.