North Dakota Petroleum Council News

New Members – Thanks to the new Petroleum Council members: Pioneer Drilling Company; BNC National Bank; FMC Technologies, Inc.; Falco Energy Transportation, LLC; Spotted Hawk Development, LLC; Pure Energy Services (USA); Dorchester Minerals Operating, LP; and, Slawson Exploration Company.

Energy Citizens’ Rally August 27 - With the recent Waxman-Markey Bill (a.k.a. Cap n Trade) passing through the U.S. House of Representatives, the issue of federal energy policy has been brought to the forefront. In addition, Congress is considering new taxes and regulations on the energy industry that will potentially have significant impacts on North Dakota’s economy, create job losses, and increase energy prices. In an effort to create awareness about the impacts of proposed energy legislation on North Dakotans, the North Dakota Petroleum Council, along with other trade associations, businesses, and citizens, is organizing an Energy Citizens’ Rally. The rally is intended to generate a call to action by North Dakota citizens to oppose the current bills in Congress and encourage a common sense approach to energy legislation. The rally is open to the public. Bring your family and enjoy hot dogs, brats, live music, and ice cream while learning how federal energy policy affects the people of North Dakota. For more information, visit the Energy Citizens’ Rally page on the Petroleum Council website. Hope to see you there!

For those who cannot attend, we urge you to send an email to the North Dakota Congressional Delegation in support for their current opposition to these federal energy policies. Congress needs to start over on an energy policy and use common sense and develop a bill that will encourage domestic energy production which will create jobs, wealth, and stimulate the economy in our state. For a draft letter and mailing information to send to North Dakota’s congressmen, please visit the draft letter and congressmen contact information page.

Royalty Owner Information Center Now Available Through Oil Can! - Mineral rights and royalty payments are difficult to understand and comprehend. The Petroleum Council, through the Oil Can! program, is taking steps to improve communications and provide royalty and mineral owners with more information to provide a better understanding of how the process works and to provide direct contacts to North Dakota oil operators with their questions and concerns. The site also includes frequently asked questions that should be helpful to mineral owners. This is a work in progress and we hope to continue to enhance and improve the site. Royalty Owner Information Center

State Land Departmentt Proposes Rule Establishing Royalty Escrow Account -- The State Land Board is holding a public hearing for comments on Thursday, August 27 at 3:00 p.m. at the State Land Department office to take comments on a new administrative rule governing state oil and gas leases. Written comments may also be submitted to the North Dakota Land Department by September 15, 2009. The proposed rule would require any operator, lessee, or purchaser that intends to suspend royalties resulting from a title dispute to establish an escrow account with the Bank of North Dakota and to deposit the disputed royalties in this account. The Petroleum Council has concerns about this proposed rule because there are always two sides in a royalty dispute and both may want funds set aside. In addition, title disputes are not the problem of the operator, but a responsibility of the owners to resolve their title problems either by agreement or judicial action. We urge you to provide comments to the Land Department on this rule. Notice of Intent.

Register Now for the Petroleum Council Annual Meeting – The Petroleum Council’s Annual Meeting will be held in Medora, ND September 1–3, 2009. Early-bird registration ends August 21. Chuck VanAllen, Vice-President for Hess, will provide the keynote luncheon address on September 3. Take advantage of Medora’s activities and don’t miss the Medora Musical on September 1. Reserve your hotel room now and remember to say you’re with the North Dakota Petroleum Council Annual Meeting. North Dakota legislators Rick Berg and David O’Connell will be recognized for their “Outstanding Public Service” during the event and the next inductee into the Petroleum Council Hall of Fame will be announced during the banquet on September 2. Register soon for the ND Oil PAC Golf Event. The 144 slots are filling fast. Registration, agenda, golf, and sponsorship information is available on the Annual Meeting page of the Petroleum Council website. Please contact us with any questions at 701.223.6380 or email ndpc@ndoil.org.

Navigating Oil Development on Tribal Lands Meeting in Medora – AGENDA Following the Petroleum Council Annual Meeting on September 3, there will be a meeting from 2:00–4:30 p.m. MST that will focus on key issues related to oil development on tribal lands. Speakers are from, and include, the North Dakota Governor’s Office, Tribal officials, the North Dakota Tax Commissioner, Senator Dorgan’s Office, BIA officials including Mike Black, Regional Director for BIA, along with other BIA officials, Tribal regulatory and legal officials, and BLM. Any operator or service company operating on the Fort Berthold Indian Reservation should attend this meeting to get a better understanding of the activity and the permitting process along with other tips and tricks. This meeting is not a part of the Petroleum Council Annual Meeting. However, if you would like to attend the Petroleum Council Annual Meeting, please register online on the Annual Meeting home page . If you would like to attend the Thursday luncheon only, the cost is $30. Again, for planning purposes, please let us know at ndpc@ndoil.org or by calling 701.223.6380 if you plan to attend the luncheon.

Petroleum Council Awards Four $500 Scholarships - A key component of sustaining North Dakota’s oil production is encouraging North Dakota students to pursue degrees related to the oil and gas industry. For this reason, the North Dakota Petroleum Council established a scholarship program in 2008 to encourage and support students with an interest in working in North Dakota’s energy industry. This year’s recipients are Adam Ries and Seth Trobec. In addition, Roy Neset Jr. and Micheal Totenhagen will receive a $500 scholarship again this year. Ries is a junior majoring in geological engineering at the University of North Dakota (UND). He has experience in the oil fields as a mudlogger for Neset Consulting and plans to continue his career in the oil fields of North Dakota. Trobec is also a junior majoring in geological engineering at UND. He hasn’t had experience in the oil field, but says that he hopes to in the near future and is intrigued by the processes involved in oil exploration. Neset is a junior majoring in geology at Minot State. He has extensive experience working in the oil and gas industry as a rig hand, welder, relief consultant, and a mudlogger. Totenhagen is a senior majoring in geology at North Dakota State University. Totenhagen has previously interned as a mine geologist with Hibbing Taconite Company out of Minnesota and as a field engineer with Baker Hughes-Inteq.

Oil Can! Safety Alert – In an effort to ensure safety around oil industry-related facilities, the Petroleum Council, through the Oil Can! program, has developed a safety alert flyer that is posted on the Petroleum Council website, will be distributed to schools in western North Dakota, will be available for industry members to post and use as desired, and will be used in school presentations through the Energy Career Awareness Partnership. The flyer emphasizes that oil well facilities are private property and should not be used by anyone other than trained industry personnel.

Oil Can! Bakken Rocks CookFest - On July 29 and 30, the North Dakota Petroleum Council hosted a two-day event in the heart of North Dakota oil country - Killdeer and Stanley - to bring together the oil operators of the state with the communities they are involved in. The event brought together over 1,800 people from the area (approximately 600 in Killdeer and 1,200 in Stanley), where they ate the oil field’s best barbecue, met face to face with the people of the oil industry, and learned a little about what is going on in the Bakken. At each location, ballots were collected and counted, and the team that provided the best experience was awarded a plaque. To see more information and photos from the event, visit the CookFest page on the Petroleum Council website. Thank you to everyone involved in the planning and execution of the CookFest to make it a successful event.


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.