Tuesday, November 25 - North Dakota Petroleum Council

The North Dakota Petroleum Council will once again hold Legislative Briefings in Jamestown, Fargo, Grand Forks, and Minot. Attached is the notice for those briefings. Please RSVP to the Petroleum Council at ndpc@ndoil.org, call 701.223.6380, or fax the form back to us at 701.222.0006, to let us know if you will be attending the briefing and in which city. Thank you.





Also attached, and below, is the NDPC November E-News. Have a great Thanksgiving!





North Dakota Petroleum Council E-News

November 2008







New Members – Thanks to the new Petroleum Council members Northern Oil & Gas and Fulbright & Jaworski, LLP.



Sales Tax Refund on Gas Connections from Oil Wells – Oil and gas producers and gas processors are eligible for a sales tax refund on sales tax paid for the connection costs of gas infrastructure from July 1, 2007 to present, and in the future. The 2007 Legislature passed HB 1462, in which the Petroleum Council had included the sales tax incentive to help discourage the flaring of gas. The Tax Department initially thought the exemption only applied to wells primarily producing gas. However, after further review, the Tax Department has determined the law and intent was designed to encourage the connection of gas on all new wells, not just wells producing gas. Therefore, companies who have connected a gas or oil well, or constructed or made improvements to a gas processing plant since July 1, 2007, can apply for a sales tax refund for the materials used to compress, process, and gather, or refine gas from an oil and gas well.



To claim the refund, send a letter of request, along with copies of invoices, to Blaine Braunberger, Sales Tax Division, State Tax Dept, 600 East Boulevard Ave, Bismarck, ND 58505. Add “N.D.C.C. 57-39.2-04.5” in the Subject line of the letter. For more information, visit http://www.nd.gov/tax/.



Petroleum Council Legislative Briefings – North Dakota’s Legislature convenes on January 6, 2009. To keep legislators informed, briefings have been scheduled to provide a look at pipeline capacity issues, oil and gas activity update, workforce needs, economic impact results, refining and marketing issues, and future oil and gas legislation. For more information, contact us at (701) 223-6380 or ndpc@ndoil.org.



December 15 – Jamestown, Buffalo City Grille, 11:30-1:30 p.m. (lunch)

December 15 – Fargo, Best Western Doublewood Inn, 5:30 – 7:30 p.m. (dinner)

December 16 – Grand Forks, Canad Inn, 11:30 – 1:30 p.m. (lunch)

December 16 – Minot, Holiday Inn Riverside, 5:30 – 7:30 p.m. (dinner)



IPAMS State Legislative Preview – IPAMS is holding a 2009 State Legislative Preview on December 9 at the Westin Tabor Center Hotel in Denver. The North Dakota Petroleum Council will be presenting at this meeting, along with Ryan Bernstein from the Governor’s Office, Senator Rich Wardner, and Senator Connie Triplett. This is part of an all-day conference, with panels for each state. This event will also include a national legislative preview component. Speakers will look to provide a perspective on national energy policy.



Oil Tax Trigger – The Tax Commissioner has determined that the preliminary oil trigger price for the 2009 calendar year will be $47.66. Keep in mind, this trigger is the price of West Texas Intermediate Cushing crude oil minus $2.50. Therefore, the preliminary price used for the trigger would be $50.16. The average price of a barrel of crude oil would need to be below this trigger price each month for a five-month period in order for certain exemptions and rate reductions to become effective. The exemptions and rate reductions are subsequently removed if the average price is higher than the trigger price for each month in any consecutive five-month period.



The trigger price adjustment is published on the State Tax Commissioner’s web site at http://www.nd.gov/tax/oilgas/pubs/. If you have any questions regarding this notification, please contact the Oil and Gas Tax Section at 701.328.3657 or email oiltax@nd.gov.



Protection of North Dakota’s Migratory Birds – The U.S. Fish and Wildlife Service (Service) recently conducted a cursory field review for migratory bird deaths in North Dakota’s oil patch. While the Service appreciates those companies who are being environmentally conscience and are netting reserve pits, there are a few companies within the oil patch that continue to flag or leave open reserve pits which are killing migratory birds by exposing them to oil. The Service wants oil producers to know that the unauthorized taking of migratory birds at oil production facilities can be prevented with a minimum of expense and effort. For further information, readers may contact the Service at (701) 255-0593.



The Service recommends the following measures:



· Keep Oil off Open Pits or Ponds. Immediate clean-up of oil in open pits is critical to prevent wildlife mortalities.

· Place Covers on Drip Buckets/Barrels Located Under Valves and Spigots. Placing a wire mesh or grate over the top of these barrels is a very practical way of preventing access for wildlife.

· Use Effective and Proven Exclusionary Devices. Netting is the most effective method of keeping birds from entering open pits; flagging does not work!

· Use Mesh Covers over Heater-Treater Exhaust Pipes. The Service suggests the placement of a mesh or metal screen and anti-perching devices over the end of each heater-treater stack, and covering any openings large enough to allow a bird to enter into the heater-treater equipment.



“Oil Can!” Provides Latest Round of Town Hall Meetings – Approximately 450 local citizens attended the series of Town Hall Meetings held in Bowbells, Powers Lake, Parshall, Stanley and Killdeer. These Town Hall Meetings were organized with the intent of expanding the public's understanding of North Dakota’s oil and gas industry. Established as part of the "Oil Can!" program developed by the North Dakota Petroleum Council, these meetings are a part of an effort intended to open channels of communication among the oil and gas industry, the general public, and public officials. Presentations from the Town Hall Meetings will be available at www.ndoil.org after Monday, November 24.



New Programs Available Through Petroleum Safety and Technology Center – A $442,000 Workforce Enhancement Grant will match a like investment by private industry to start four more oil field training courses at Williston's Petroleum Safety and Technology Center at Williston State College. The course offerings are already garnering interest from out-of-state.



The new courses include a S.M.A.R.T. school program (Safety Management And Rig up Training), a lease operator program, a derrick hand program, and an introduction to oil and gas operations for office personnel. Complete details and class schedules may be obtained by contacting Deanette Piesik at 701-774-4246 or 1-866-938-6963. Details are also available online at www.trainND.com.



Registering New Businesses in North Dakota – As a reminder, new businesses and out-of-state businesses working in the state of North Dakota must be registered with the Secretary of State’s office. The Secretary of State’s office has received several reports of out-of-state companies doing business in North Dakota without first being registered, as required by state law, with the Secretary of State’s office.



Extensive information about business registration requirements is available in the Business Services Section of the Secretary of State’s web site at www.nd.gov/sos under the Business Registrations link. Companies with questions or concerns about registration requirements, or wondering whether a company is properly registered, should visit the Secretary of State’s web site or contact the Business Information/Registration Division at (701) 328-4284 or e-mail sosbir@nd.gov.







For more information on any of these issues, or to be removed from the mailing list, contact the North Dakota Petroleum Council at

(701) 223-6380, ndpc@ndoil.org, or see www.ndoil.org.







Marsha Reimnitz

North Dakota Petroleum Council

PO Box 1395

Bismarck ND 58502

701.223.6380

701.222.0006 fax

www.ndoil.org

ndpc@ndoil.org



What is a home without children? Too quiet.