Project background
The accidental discovery of helium gas in the northeastern part of the state in 2011 and the result of an exploratory boring in February 2024 by a helium exploration company that showed they could start commercial exploration of helium within the next 12-18 months necessitated the regulatory framework. In May of 2024, legislation was enacted that requires the creation of a regulatory framework for developing gas resources in Minnesota. This legislation gives expedited rulemaking authority to state agencies to amend and adopt certain rules pertaining to oil and gas production. Rulemaking must be completed by May 2026 under expedited procedures.
There is a moratorium on oil and gas production in the state without a permit, and permits can't be issued until rules are adopted, unless a temporary regulatory framework for permitting has been approved by the legislature. With the exception of recommendations from the Minnesota Department of Revenue related to tax structure, GTAC recommendations focus on gas development only and no rules are being prepared for oil production.
The Minnesota Department of Natural Resources (DNR) was directed to create a multi-agency committee to make recommendations that would guide the creation of this temporary regulatory framework. Under the enacted legislation, the Gas Resources Technical Advisory Committee (GTAC) was charged with submitting its recommendations and draft statutory language to the DNR commissioner. The DNR must then submit recommendations and draft statutory language for a temporary framework to the State Legislature by January 15, 2025. GTAC committee membership is drawn from state agencies with rulemaking authority to create or amend rules for the creation of a regulatory framework. In parallel, these state agencies will work with the legislature to develop their own rules and policies under expedited rulemaking processes.
The DNR will incorporate GTAC's recommendations and proposed statutory language into a legislative report that will also include a narrative of GTAC activities and a document identifying best practices for gas regulations prepared by external regulatory experts. This additional information will provide context for the recommendations and proposed statutory language that will be submitted to the state legislature by January 15, 2025.
Helium discovery site maps: aerial photo on the left, bedrock geology map on the right. The site is between Babbitt and Isabella and is located within a part of the Duluth Complex known as the Bald Eagle Intrusion