RULES AND REGULATIONS
What laws apply to oil and gas development in South Dakota?
The Oil and Gas Conservation Act, SDCL 45-9, contains the laws that apply to oil and gas development in the state. The Board of Minerals and Environment (board) and the department implement the requirements of the Act.
What requirements apply to me if I want to drill for oil and gas?
Drilling for oil and gas is regulated under SDCL 45-9 and the Administrative Rules of South Dakota (ARSD) Article 74:12. Underground injection for the purpose of enhanced oil recovery or the disposal of exploration and production wastes is regulated by the same statute and rules. The requirements of ARSD 74:09, which pertain to board hearings and petitions, also apply to oil and gas operations.
Revisions to Oil and Gas Conservation Rules Adopted on January 17, 2013
The effect of the rules will be to require reporting of hydraulic fracturing details to a nationwide hydraulic fracturing database, specify final well site reclamation requirements, and add requirements for interim well site reclamation.
During the January 17, 2013 hearing, the board amended the proposed rules prior to adoption. Amendments to the hydraulic fracturing reporting rule (§ 74:12:02:19) clarify that companies hydraulically fracturing oil and gas wells are only required to disclose ingredients intentionally included in their hydraulic fracturing fluid, and that they are not required to disclose trade secrets or proprietary information. Amendments to the well site reclamation rules ( §§ 74:12:03:06 and 74:12:03:07) involve changes to what constitutes adequate surface reclamation. The original proposed rules described adequate reclamation as returning disturbed areas back to original condition or a condition acceptable to the surface landowner. The amended rules describe adequate reclamation as returning disturbed areas to a condition suitable for pre-drilling land use, with an option to reclaim disturbed areas to an alternate land use if acceptable to the surface landowner. The amended rules were adopted by the board on January 17, 2013. The amended rules were presented before the Legislative Interim Rules Review Committee on April 2, 2013. The revised rules became provisionally effective on April 22, 2013, and finally effective on July 1, 2013.