Potential development of a commercial helium operation from a major helium discovery in northeastern Minnesota, has taken a meaningful step forward.
A 45-day Minnesota Department of Natural Resources (DNR) public comment period is open on draft rules that would regulate gas resource development projects within the state, according to the DNR.
Without any state rules governing gas extraction in the state, northeastern Minnesota legislators have pushed for the adoption of rules and authored bills seeking the establishment of rules.
A finalization of rules would provide a foundation for potential development of a Pulsar Helium Inc. discovery of high-quality helium near Babbitt.
“The passage of this legislation and the opening of the DNR rulemaking process are meaningful steps forward for the Topaz Helium Project,” Thomas Abraham-James, Pulsar Helium president and chief executive officer said. “Minnesota is taking helium seriously as a strategic resource and is building the framework needed to evaluate responsible development. We believe Topaz can be part of a secure helium supply chain while also creating economic opportunity for northeastern Minnesota.”
Pulsar Helium struck helium in an appraisal well it drilled on private land near Babbitt.
The well was drilled about 50 feet away from a Duluth Metals hole that in 2011 hit helium while conducting exploratory drilling for copper and nickel.
Pulsar Helium has since drilled six additional appraisal wells at the site.
All of the wells are on private land and all have struck high quality helium, including helium -3, helium-4 and carbon dioxide, according to Pulsar Helium.
Pulsar Helium has said laboratory analysis shows the helium quality to be among the finest in the world.
Pulsar Helium hopes to develop a commercial helium operation from the site.
If developed, it would be Minnesota’s first commercial helium operation.
The company announced Thursday that all wells drilled to date have encountered gas under high pressure. Pulsar has concluded its exploration and appraisal program and is now obtaining quotes for the drilling of up to four new production wells to supplement the two existing production-ready wells already drilled.
Northeastern Minnesota legislators who represent the area of the helium finding, say the publication of draft gas resource rules and the public comment period are a major step forward.
“This is an exciting step forward as we work to get Minnesota’s helium industry up and running,” Sen. Grant Hauschild, DFL-Hermantown said. “Northern Minnesota is once again on the cusp of helping provide a critical resource used in MRIs, semiconductor chips, and other advanced technologies, while creating new economic opportunities here in the Northland.”
“I’m thankful the legislature took up helium,” Rep. Roger Skraba, R-Ely said. “We wanted hydrogen too, but the Democrats didn’t want to deal with it now. We wanted it because we have people exploring our district for hydrogen and all over the state as well.”
Skraba said he’s pleased that the rulemaking process is moving ahead.
“We’re moving forward as fast as we can,” Skraba said. “We have buy-in from all the groups. Pulsar wants to build a plant but they need to know the rules before they can start building a plant.”
Minnesota in 2024 prohibited gas production in the state without a permit from the DNR, according to the DNR.
At the same time, the DNR and other state agencies were authorized to establish rules to regulate gas resource production in the state, according to the DNR.
The draft rules include several gas production regulatory topics including permitting, reclamation, financial assurance, siting and setbacks, and pooling and spacing, according to the DNR.
Written comments on the draft rules can be submitted up until 4:30 p.m. July 2 to Gas-RulesDNR @state.mn.us Pulsar Helium has offices in British Columbia and Portugal.
Meanwhile, the DNR, like Skraba, says there’s also interest in hydrogen resource development within the state.
A geologic formation known as the Midcontinent Rift System that extends from Lake Superior to the Iowa border, is of interest for potential hydrogen resource development, the DNR said.
