Underground gathering pipelines used to transfer crude oil or produced water must be bonded pursuant to Subsection 8 of Section 43-02-03-15 of the North Dakota Administrative Code (NDAC).

Submit GIS shapefiles for all underground gathering pipelines to be bonded at pipelines@nd.gov

1) Attach : GIS shape files showing the location of all associated above ground equipment and all underground gathering pipelines on the bond. Download shapefile template Pipeline Attribute Descriptions Pipeline Nomenclature

Forms with Description

Form 3PL : Gathering pipelines that are less than 1 mile - bond amount to be approved by the Director
Form 3PL1 : Single Gathering System - $50,000 Bond
Form 3PL2 : Multiple Gathering Systems (two or more underground gathering systems) - $100,000 Blanket Bond
Form 3PL3 : Underground Gathering Pipeline Cash Bond - Application to deposit cash or property in lieu of a surety bond
Form 15PL : Notice of Transfer of Underground Gathering Pipelines

Note: Bond Forms must be mailed to the Oil and Gas Division. The original, signed Form must be mailed to:

North Dakota Industrial Commission
Oil and Gas Division
600 East Boulevard Dept 405
Bismarck ND 58505-0840

Pipeline Bonding Requirements

North Dakota Administrative Code Section 43-02-03-15 Subsection 8:

Crude oil and produced water underground gathering pipeline bond. The bonding requirements for crude oil and produced water underground gathering pipelines are not to be construed to be required on flow lines, injection pipelines, pipelines operated by an enhanced recovery unit for enhanced recovery unit operations, or on piping utilized to connect wells, tanks, treaters, flares, or other equipment on the production facility.

1. Any owner of an underground gathering pipeline transferring crude oil or produced water, after April 19, 2015, shall submit to the commission and obtain its approval of a surety bond or cash bond prior to July 1, 2017. Any owner of a proposed underground gathering pipeline to transfer crude oil or produced water shall submit to the commission and obtain its approval of a surety bond or cash bond prior to placing into service. An alternative form of security may be approved by the commission after notice and hearing, as provided by law. The person responsible for the operation of the crude oil or produced water underground gathering pipeline must be the principal on the bond. Each surety bond must be executed by a responsible surety company authorized to transact business in North Dakota. The bond must be in the amount of fifty thousand dollars when applicable to one crude oil or produced water underground gathering pipeline system only. Such underground gathering pipelines that are less than one mile [1609.34 meters] in length may be bonded in a lesser amount if approved by the director. When the principal on the bond is operating multiple gathering pipeline systems within the state or proposes to do so, the principal may submit a blanket bond conditioned as provided by law. A blanket bond covering one or more underground gathering pipeline systems must be in the amount of one hundred thousand dollars. The owner shall file with the director, as prescribed by the director, a geographical information system layer utilizing North American datum 83 geographic coordinate system (GCS) and in an environmental systems research institute (Esri) shape file format showing the location of all associated above ground equipment and the pipeline centerline from the point of origin to the termination point of all underground gathering pipelines on the bond. Each layer must include at least the following information:

   1. The name of the pipeline gathering system and other separately named portions thereof;
   2. The type of fluid transported;
   3. The pipeline composition;
   4. Burial depth; and
   5. Approximate in-service date.

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