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SDPB Radio Coverage of the South Dakota Legislature. See all coverage and find links to audio and video streams live from the Capitol at www.sdpb.org/statehouse

Bill Aims to Enhance Oil and Gas Industry

Members of the House Commerce and Energy Committee passed a bill they hope will enhance South Dakota’s oil and gas industry. House Bill 1154 authorizes the commissioner of School and Public Lands to grant easements that provide access to natural resources. Ryan Brunner is the Deputy Commissioner for School and Public Lands. He says sometimes the federal government leases mineral rights on federal land but will not allow wells on the surface. The bill allows his office to grant easements so companies can build wells on adjacent lands owned by the state and drill horizontally.

 
“It doesn’t steal any minerals,” Brunner says. “Whoever owns the minerals receives the royalties and has the rights to those minerals. We’re only granting access using our surface land to access those minerals. So we will not receive royalties, we will not be taking minerals from those other either public or private entities.”
 
Opponents raise a few environmental concerns, but proponents say the bill is good for the environment because it allows for more than one well on each site. They say that minimizes surface damage. The bill heads to the house floor for further debate.