DNR and GTAC present draft temporary permitting framework for helium and geologic hydrogen; tribes, environmental groups raise concerns

The Minnesota Department of Natural Resources presented the Gas Resources Technical Advisory Committee (GTAC) report and draft legislative language for a temporary regulatory framework for permitting gas-resource development, including helium and geologic hydrogen. The report would allow permitting under a temporary framework while agencies complete permanent rules; without legislative action, last year’s moratorium on gas production would remain in place until final rules are adopted.

Mike Liljegren, assistant division director for DNR Lands and Minerals, summarized GTAC’s work: the advisory committee produced recommendations covering permitting procedures, financial assurance, environmental review, well construction standards, pooling and spacing, and taxation. GTAC members included DNR, the Environmental Quality Board (EQB), the Minnesota Department of Health (MDH), the Minnesota Pollution Control Agency (MPCA) and the Department of Revenue. Liljegren said the committee held public input sessions in February and December, solicited tribal government comments, and submitted a report and draft language to the legislature in January.

Among GTAC recommendations cited in the report: DNR permitting with siting and setback standards, financial assurance and reclamation requirements modeled in part on nonferrous mining practices; EQB recommended mandatory Environmental Assessment Worksheets (EAWs) for gas-resource projects under the temporary framework with DNR as the responsible governmental unit; MDH recommended licensing, drill rig registration and new rulemaking authority for construction and sealing of gas wells; MPCA said its current rules can regulate gas-resource development but urged meaningful tribal consultation; Department of Revenue recommended folding gas and oil into existing mining tax administration with the option for differentiated rates.

Public commenters and tribal counsel raised three recurring concerns: permits issued under the temporary framework lacked a fixed temporal term and the draft language would allow such permits to remain valid after permanent rules are adopted; environmental groups and counsel recommended requiring fixed permit terms (for example 5–10 years) and an expiration window after final rules to avoid “grandfathering” less stringent temporary permits; and several tribal representatives urged meaningful government-to-government consultation and inclusion of tribes in any revenue distribution formula. Reid Labeaux, counsel for the Bois Forte Band, said the band “takes no position at the current time concerning the environmental aspects of helium extraction” but seeks inclusion in any revenue formula. Aaron Clemens of the Minnesota Center for Environmental Advocacy recommended (1) permits include a fixed term, (2) temporary permits expire within a limited window after permanent rules are adopted, and (3) the state engage in government-to-government consultation with affected tribal governments.

Committee members questioned permitting timing, the EAW requirement and the fee structure GTAC proposed. EQB executive director Katherine Neuschler said a mandatory EAW for each project under the temporary framework is justified because the industry is new to Minnesota; she estimated an EAW would take four to eight months. Liljegren estimated permitting under the temporary framework could allow companies to begin activities sooner — perhaps within a year — versus waiting for final rules projected after May 2026. Liljegren and other agency witnesses emphasized that GTAC’s draft language is intended to be revised by the legislature and that the report compiled public comments and a consultant’s best-practices study.

No bill vote occurred; the hearing served as a presentation and Q&A. Key next steps identified by agencies and commenters included refining permit-term language, clarifying tribal consultation processes and finalizing language on financial assurance amounts and vehicles.