North Dakota extends gas capture targets: UpdateOREANDA-NEWS. September 25, 2015. North Dakota officials voted today to give crude producers more time to meet natural gas capture targets as the collapse in commodity prices has delayed infrastructure projects they say are needed to reach the state-mandated goals.

Under the new regulations, producers must cut flaring to 15pc by November 2016, nearly a year later than in the previous regulation. The new rules also set goals to flare 7-9pc by November 2020.

North Dakota has been phasing in the regulations to cut flaring of gas, beginning in 2014. The plan also limits crude production for producers who do not meet requirements to capture natural gas.

The state's Industrial Commission adopted the new rules in a meeting today. The commission also voted to require an annual review of the gas capture targets and directed the Department of Mineral Resources to complete an engineering study on gas capture.

North Dakota is home to the Bakken formation, the third most productive US shale field. Crude production has grown sharply there from about 150,000 b/d in 2008 to more than 1.2mn b/d, creating a major supply basin which has changed US market dynamics.

Crude production produces large amounts of associated gas.

In July, about 18pc of the gas was flared, as the state continues to grapple with a lack of takeaway capacity, according to the most recent state data.

Department of Mineral Resources director Lynn Helms said last week that reaching the gas-flaring targets in the original regulations would be difficult because infrastructure projects needed to reach those goals are not cost-effective amid the collapse in NGL prices.

North Dakota is also considering allowing drillers to let uncompleted wells sit idle for an extra year in "temporarily abandoned" status because of the low price environment

North Dakota's crude and natural gas output held steady in July, despite falling rig counts.

Crude output in July averaged 1.2mn b/d, down by just 9,400 b/d from the previous month. Natural gas production increased by less than 1pc to 1.66 Bcf/d (47mn m?/d), an all-time high.