The Minnesota State Legislature authorized the DNR to lease state-owned mineral interests for gas exploration and development in 2024 (Sec. 93.516 MN Statutes).
Focus on non-hydrocarbon gases
The enabling legislation allows DNR to “enter into leases for gas or oil exploration and production,” with the term “gas” including both hydrocarbon and non-hydrocarbon gases. Private exploration companies are currently focusing on Minnesota’s potential helium and natural hydrogen resources. Minnesota’s geology is unfavorable for crude oil accumulations and there is currently no interest in exploring for crude oil resources in the state. In addition, the DNR and other applicable state agencies are focusing only on creating a regulatory framework for the development of gas resources and the moratorium on oil production will remain.
Lease terms and conditions
The DNR is authorized to issue gas leases on a case-by-case basis, taking into account the unique geological and environmental aspects of each proposal, applicant control of adjacent lands or mineral interests, and the best interests of the State. Lease terms will be negotiated with each applicant and reflect statutory standards for the length of each lease and minimum bonus considerations, rental payments, and royalty payments.
Executive Council approval
All DNR-issued gas leases must be approved by the Minnesota Executive Council.
No active state gas leases
There are currently no active state-issued gas leases in Minnesota. Private exploration companies are targeting both helium and natural hydrogen and gathering geological and geophysical data on state lands under Regional Geological Reconnaissance Authorizations (RGRAs).
For more information, please contact:
Don Elsenheimer
Gas Production Regulatory Manager
651 259-5433, [email protected]