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Committee refers helium-exploration framework to taxes after hearing on regulatory oversight
Summary
Senate File 2530, which would create a regulatory framework for helium (natural gas) exploration and authorize the Department of Health to develop program rules, was recommended to pass and referred to the Committee on Taxes following testimony by industry and committee discussion about expedited rulemaking and interagency responsibilities.
Senate File 2530 was recommended to pass by the Senate Health and Human Services Committee and sent to the Committee on Taxes after testimony about primary helium resources in northern Minnesota and proposals to establish state oversight for gas (helium) exploration.
Sen. Andrew Hauschild outlined the bill's purpose: to give the Department of Health authority and funding to stand up a gas-well program to oversee exploratory boreholes and wells, ensure proper sealing, develop rules, inspect and enforce a gas-well code, license contractors and credential certified gas representatives, and manage reports of work. He said prior interim work by a Gas Technical Advisory Committee (GTAC) recommended expedited rulemaking to avoid losing resource opportunity while a regulatory framework was developed.
Michael Sturdy, general manager of operations for Pulsar Helium, testified that the Topaz project in Lake County yielded helium concentrations "approximately 10 and a half percent," among the highest measured globally, and described helium's industrial uses including MRI machines, space launch, and semiconductor production.
Committee members asked about the Department of Health's capacity to take on licensing and oversight typically outside its traditional role. Members discussed multiagency coordination and noted GTAC's interim role in assembling recommendations. Senator Kupak moved the bill; the committee approved the motion by voice vote and referred Senate File 2530 to the Committee on Taxes for further action.
The committee record indicates expedited rulemaking language was previously adopted and that the bill seeks general-fund appropriations to staff and operate a state gas-well program.
