A Re-Look At The New North Dakota Law On Flaring

North Dakota amended state law on flaring:

House Bill No. 1134 maintains North Dakota's one year flaring grace period, but upon the expiration of the grace period, increased the permitted activities to include a compression collection system that intakes at least seventy-five percent (75.00%) of the gas and natural gas liquids volume for beneficial consumption by various means.  This provision also includes any well equipped with other value-added processes as approved by the North Dakota Industrial Commission, which reduces the volume or intensity of the flair by more than sixty percent (60.00%).  Additionally, if the gas is collected and/or used by one of these optional systems, the gas is granted an exemption from gross production taxation for a period of two (2) years and thirty (30) days from the time of first production.

I mention this because of this observation regarding the October NDIC hearing dockets: there were only two cases in which an operator asked for permission to continue flaring at max crude oil production. Generally, there are many, many more cases. For example, on the June, 2013, agenda, there were 34 cases in which operators asked flaring be allowed past the "grace period."  There have been other months in which there were few or no cases regarding flaring, but with all the activity in the Bakken this past summer, one would think there would be more requests for flaring.

There are four possibilities:

a) the amended North Dakota on flaring, especially the "60%" rule really made a difference;
b) takeaway capacity for natural gas has improved significantly;
c) operators are choking back oil production for a number of reason; or
d) a combination of all three.

I doubt takeaway capacity has increased that much in the past two months, or even since the law was amended.

I have some hunches but would be interested if anyone has any insight on this. Thank you.