Department of Health
Agency background
Minnesota Statutes, chapter 103I, authorizes the Commissioner of Health to license persons wanting to explore or prospect for natural gas, receive exploratory borings notifications, and regulate the construction of temporary sealing, and permanent sealing of exploratory borings. Minnesota Rules, chapter 4727, provides requirements under the described authorization for the regulation of exploratory borings and persons conducting regulated work. The Minnesota Department of Health (MDH or Department) collects applicable fees for the described work, which supports the inspection of exploratory borings and the protection of public health and groundwater.
February of 2024, a licensed explorer submitted an exploratory boring notification to MDH under the requirements of Minnesota Statutes, chapter 103I, and Minnesota Rules, chapter 4727, communicating the boring was for exploring and prospecting for helium gas. Minnesota Rules, chapter 4727, has no provisions for production of gas from an exploratory boring, nor for the construction of a gas well for production of gas. It is the Department’s understanding that boreholes drilled and cased by the gas development industry are not typically for exploration or prospecting but also for gas production. Currently, Minnesota Statutes, chapter 103I, define that exploratory borings are for exploration and prospecting and not for production of gas.
As a direction of the 2024 Minnesota Legislature, MDH became a member of the Minnesota Gas and Oil Technical Advisory Committee (GTAC) because of the Department’s regulatory authority over exploration of natural gas and was provided expansive authority for oversight of exploratory boring construction to Minnesota Rules, chapter 4727.
The following recommendations outline the requirements necessary to ensure the safe construction and sealing of gas wells providing protection of public health and groundwater. Included in these recommendations is creating a new rule chapter to regulate gas wells. Most of the recommended requirements are like those in effect for other types of regulated wells and borings.
Recommendation
Repeal Commissioner of Health’s existing authority to explore and prospect for natural gas and oil under exploratory boring definition within Minnesota Statutes, section 103I.005, subdivision 9, and section 93.514, paragraph a, clause 2.
Draft statutory language: Minnesota Statutes, section 103I.005, subdivision 9; Minnesota Statutes, section 93.514, paragraph a, clause 2.Rationale
Other states regulating the extraction and production of natural gas generally use the term “well” rather than “boring”. To remain consistent with industry terminology, MDH is recommending repealing the authority to explore and prospect for gas through an exploratory boring. When a well is constructed to explore and prospect for gas, the same well is used to extract natural gas for production. Exploratory borings, regulated by Minnesota Rules, chapter 4727, do not authorize the extraction or mining of materials and minerals from the subsurface. Thus, extracting gas from an exploratory boring is prohibited under current regulation.
The GTAC authority to submit a recommendation to the legislature (Laws of Minnesota 2024, chapter 116, article 3, section 55) on boring monitoring and inspection is proposed to be repealed. MDH recommends using new rulemaking authority for gas wells to regulate inspections for gas wells.
MDH does not have any indications that there are crude oil resources in the state, and MDH is not aware of any industry interest in drilling for oil in Minnesota. If crude oil resources are discovered, or there is future interest in oil exploration in the state, the statutes and rules for gas production could be amended to include oil.
Recommendation
Repeal natural gas from the well definition within Minnesota Statutes, section 103I.005, subdivision 21. Grant new rulemaking and fee authority to the Commissioner of Health for regulation of gas wells.
Draft statutory language: Minnesota Statutes, section 103I.005, subdivision 21; Minnesota Statutes, section 103I.706, subdivision 1; Minnesota Statutes, section 103I.706, subdivision 2.Rationale
MDH is recommending clarification of the exemption in the “well” definition (Minnesota Statutes, section 103I.005, subdivision 21) that a well does not include an excavation made to obtain or prospect for gas. This clarifies the current definition of “well” to refer only to a well accessing groundwater. A new definition for a “gas well” would be created to specifically define a well used for the purposes of prospecting and extracting gas. MDH is recommending newly granted rulemaking and fee authority to clarify and provide comprehensive authority to regulate the construction and sealing of gas wells. Creating a new rule chapter specifically to address the exploration and extraction of gas will allow for distinction between the regulation of gas wells and wells accessing groundwater. Current rulemaking authority for wells and borings under Minnesota Statutes, chapter 103I, do not provide for the construction and sealing of gas wells, nor the extraction of gas from a well.
Recommendation
Ensure a person or company has a license issued by the Commissioner of Health to conduct regulated work on gas wells including, construction and sealing.
Draft statutory language: Minnesota Statutes, section 103I.706, subdivision 4.Rationale
Existing Minnesota Rules, chapters 4725 and 4727, regulate persons constructing and sealing wells or borings, but not gas wells. MDH is recommending to model licensure and certification requirements for regulated work on gas well after existing rule requirements. A person constructing or sealing gas wells would be licensed and certified in a manner like an explorer is under existing rule chapter 4727. Ensuring a licensed and certified person conducts regulated work on gas wells is protective of public health and groundwater. This person would be required to meet similar professional experience as an explorer to be licensed and certified.
Recommendation
A person must submit a gas well construction notification and fee for each proposed gas well to the Commissioner of Health. A gas well construction notification and fee cannot be submitted to the Commissioner of Health until the person has a valid a gas resource development permit from the commissioner of natural resources.
Draft statutory language: Minnesota Statutes, section 103I.706, subdivision 2; Minnesota Statutes, section 103I.707, subdivision 3; Minnesota Statutes, section 103I.706, subdivision 5.Rationale
Prior to a person beginning to drill a gas well, the person must obtain a gas resource development permit from the Commissioner of Natural Resources and must submit a well construction notification to the Commissioner of Health. This allows for Department of Natural Resources review of the gas development project, including environmental review, and provides a mechanism for MDH to be informed of the intent to construct the proposed gas well. The gas well construction notification allows for the Department to plan for and inspect gas well construction to ensure compliance and the protection of public health and groundwater. The construction notification fee will financially support the processing of the received notifications and inspections of gas wells. The proposed gas well notification is like existing notification requirements in Minnesota Rules, chapter 4725, for other well construction.
Recommendation
A person must grant the Commissioner of health access to a gas well site to inspect the constructing and sealing of a gas well.
Draft statutory language: Minnesota Statutes, section 103I.706, subdivision 6.Rationale
MDH has authority to enter a site to inspect a gas well, including the construction and sealing of gas wells. The Department must be able enter gas well sites and inspect gas wells to ensure compliance with Minnesota Statutes to protect public health and groundwater
Recommendation
A person must notify Commissioners of Health, Natural resources, and the Pollution Control Agency of an occurrence during a construction or sealing of a gas well that has a potential for significant adverse public health or environmental effect.
Draft statutory language: Minnesota Statutes, section 103I.706, subdivision 7.Rationale
The Minnesota Department of Health, Minnesota Department of Natural Resources, and Minnesota Pollution Control Agency must be made aware of situations that have potential to significantly affect public health or the environment. Upon notification of a situation, these agencies will provide information about required mitigation actions to protect public health and the environment.
Recommendation
A person must not use a gas well to inject or dispose surface water, groundwater, or any other liquid, gas, or chemical. MDH is recommending that this does not prohibit the injection of approved drilling fluids and allows for injection and disposal under a Class 2 injection well1 permit, authorized by the Environmental Protection Agency (EPA).
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 4.Rationale
The injection or disposal of liquids, gases, and chemicals may cause significant contamination to groundwater and risk to public health. Injection or disposal increases the likelihood of introducing contaminants to a drinking water source, adversely impacting water quality and public health. The prohibition on injection or disposal of unapproved liquids, gases, or chemicals is consistent with existing requirements in Minnesota Rules, chapters 4725 and 4727.
1 https://www.epa.gov/uic/class-ii-oil-and-gas-related-injection-wells
Rationale
Helium gas currently being pursued in Minnesota has been identified in the same geologic formation used for supplying drinking water. Hydraulic fracturing a gas well could connect fractures in the gas well with fractures supplying water to drinking water wells.
Recommendation
A person must ensure that drilling fluids, cuttings, treatment chemicals, and discharge water are containerized and disposed of off-site according to federal, state, and local requirements. However, an approved Class 2 injection well permit, authorized by the EPA, may be used.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 6.Rationale
Improper collection and disposal of drilling fluid, cuttings, treatment chemicals, and discharge water could contaminate soil, groundwater, and surface water. These materials and fluids may contain contaminants that may adversely impact public health or the environment.
Recommendation
Drilling fluids used during the construction of a gas well must be water or air based and additives must meet the requirements of ANSI/NSF standard 60.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 7.Rationale
Drilling fluids allowed for other wells and borings regulated by MDH under Minnesota Statutes, chapter 103I, and Minnesota Rules, chapters 4725 and 4727, must be potable water with a free chlorine residual or air. Any drilling fluid additives must meet the requirements of American National Standard Institute (ANSI)/National Sanitary Foundation (NSF) standard 60. ANSI/NSF standard 60 establishes the minimum health-effects requirements for chemicals added to drinking and includes well drilling additives. Limiting drilling fluid additives to ANSI/NSF standard 60 approved products reduces the threat to public health and groundwater.
Recommendation
A person must meet gas well casing and grout requirements to ensure protection of groundwater from surface contaminants entering the well and spread of contaminants across multiple aquifers.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 8.Rationale
A person must ensure a gas well is constructed in a manner to protect public health and groundwater. Proper installation of casing and grout materials protects against interconnecting aquifers or allow surface contaminants to enter the well. This requirement is consistent with existing requirements in Minnesota Rules, chapters 4725 and 4727, which protect against contaminants entering a well or spread across multiple aquifers.
Recommendation
A person must meet isolation distances to provide physical separation of a gas well for the protection of public health and groundwater.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 9.Rationale
MDH is recommending physical separation of a gas well from residential buildings, water supply wells, schools, and childcare centers to provide the necessary time to identify and mitigate a potential contamination event. Providing physical separation of a gas well from nearby people and water supply wells protects against adverse effects to public health and groundwater.
Recommendation
A person must protect groundwater during the construction and sealing of a gas well. A gas well must not be constructed to interconnect aquifers or allow surface contaminants to enter the well.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 10.Rationale
During construction of a gas well surface contaminants must be excluded from the well and interconnection of aquifers is prohibited. If surface materials or fluids are allowed to enter the well during construction activities, contaminants may distribute into and through the groundwater. Interconnected aquifers may allow for contamination to spread and increase the risk to public health or the environment.
Recommendation
A person must seal a well to prevent contamination of groundwater and escape of gas to the environment.
Draft statutory language: Minnesota Statutes, section 103I.707, subdivision 11.Rationale
Proper sealing of a gas well is needed to ensure contaminants do not enter groundwater through the well, which may be a drinking water source. Proper sealing ensures protection of public health, groundwater, and the environment.
Recommendation
A person must submit a gas well sealing notification and fee for each proposed gas well to be sealed.
Draft statutory language: Minnesota Statutes, section 103I.706, subdivision 8; Minnesota Statutes, section 103I.706, subdivision 2; Minnesota Statutes, section 103I.707, subdivision 11.Rationale
Prior to a person beginning to seal a gas well, the Department must be informed of the intent to seal the proposed gas well. This allows for the Department to plan for and inspect gas well sealing to ensure compliance and the protection of public health and groundwater. The sealing notification fee will financially support the processing of the received notification and inspection of gas wells. The proposed gas well notification is like existing notification requirements in Minnesota Rules, chapter 4725, for other well sealing.