Nathan Henderson, director of the North Dakota Department of Mineral Resources (DMR), and Ed Murphy, state geologist, presented the DMR’s latest oil and gas statistics, mapping work and a state survey of critical minerals in lignite at a joint Natural Resources and Energy Committee meeting on Jan. 22.

Production and capture: Henderson told the committee that North Dakota oil production in 2024 is expected to finish near 1.1–1.2 million barrels per year and that gas capture across the state has remained strong—about 95% capture in recent years, he said. He described the current rig count as stable and indicated he expects rig and frac‑crew levels to hold roughly steady in the near term. Henderson said industry production decisions are increasingly driven by investor expectations (shareholder returns) rather than only by production growth targets.

Bakken inventory and well technology: The DMR updated lawmakers on inventory in the Bakken/Three Forks: the agency estimates tens of thousands of remaining locations across three tiers of development (Tier 1 core acreage largely developed, Tier 2 more prospective acreage and Tier 3 fringe acreage). Henderson said recent trends toward longer laterals—3‑mile and now 4‑mile wells—are being used to access more distant reserves; the committee heard that the first four‑mile lateral in the state has been completed and is being put on production. Committee members discussed unconventional horizontal well shapes (U‑shaped laterals) and drilling technology; Henderson and members described agitators and mud systems as part of controls that make extended reaches possible.

Enhanced oil recovery (EOR) and pilot tests: Henderson summarized several state‑level EOR pilot projects and tests—some completed, some in testing phases—that are testing CO2, waterflood and other huff‑and‑puff techniques to improve recovery. He said that, if successful, EOR approaches could extend the productive inventory of the Bakken and bolster supply and jobs.

IIJA orphan‑well plugging grants: Henderson reported on two Infrastructure Investment and Jobs Act (IIJA) grants administered by the DMR. The agency used an earlier IIJA award (presented to the state in 2022) to plug 73 wells and reclaim 114 sites. A separate formula grant recently awarded to the agency (described in the presentation as requiring extended federal compliance conditions) will provide additional funds, but Henderson told the committee that federal historic‑preservation and endangered‑species requirements tied to the formula grant impose significant procedural work and may require additional staff or contractor capacity to administer effectively.

Geologic survey, landslide mapping and critical minerals in lignite: Ed Murphy presented work by the North Dakota Geological Survey. He said the survey has completed statewide landslide mapping in multiple phases and is now using two lidar passes to identify active movement; the team identified roughly 12,000 active landslides in the latest comparison in the energy‑area lidar coverage. Murphy also summarized the state’s critical‑minerals sampling program in lignite. He said the survey has collected more than 2,200 rock samples and that analyses have returned loci with rare‑earth element concentrations far above typical North American coal baselines. Murphy cited individual samples and cores with rare‑earth totals up to about 4,000 parts per million in discrete horizons; he said the U.S. Department of Energy uses a rough economic screening benchmark around 300 parts per million (DOE figure referenced in the presentation). Murphy said many of the enriched intervals are thin (often a few inches to a few feet) and that additional core drilling is planned to better map the enriched horizons and evaluate recovery options; he said the survey will seek additional funding to continue drilling and laboratory analysis.

Next steps and funding asks: Murphy said the geological survey will request additional appropriations to finish targeted drilling and analysis; Henderson and Murphy both encouraged continued support for research and for IIJA grant administration resources. Henderson also said the department will continue to monitor industry consolidation, capital‑allocation dynamics and potential policy or regulatory shifts that might affect state production and employment.

Ending: Committee members asked technical and policy questions about u‑shaped laterals, radiation and processing requirements for rare‑earths, and the DMR committed to provide follow‑up technical details and to coordinate with EERC and industry on pilot efforts. No formal committee votes or policy actions were taken at the session.