North Dakota -- Oil News - Ron Ness

New Members – Thanks to the new Petroleum Council members Nexen Marketing, Looper, Reed & McGraw, International Western Company, and Oasis Petroleum, LLC.

North Dakota Oil Production Continues to Grow – Oil production for October 2009 broke another record with production reaching nearly 240,000 barrels of oil per day. There were 4,606 wells producing and the rig count has risen to 79 in December. The Department of Mineral Resources predicts the rig count may grow to110 by May 2010.

Gas Flaring Drops by 14% – With estimates of investment in gas infrastructure of nearly $400 million over the past 18 months to capture natural gas, North Dakota is seeing significant reductions in gas flaring and another gas pipeline in Mountrail County will reduce the flaring even more when it comes online in early 2010. Mountrail County has reduced flaring by 16 million cubic feet per day and has increased natural gas sales by 33 million cubic feet per day in recent months. Producers, pipelines and gas processors should be commended for their efforts to capture this valuable resource.

Get Involved – Sign-up for a Committee – The Petroleum Council has formed standing committees and is looking for members to participate. This is your chance to have a voice on key issues and make a difference in the oil industry. Get involved by becoming a member of one or more Petroleum Council standing committees and task forces today!

Voting members of the Petroleum Council can sign up to be committee members with a few simple clicks by visiting our website, www.ndoil.org, and completing the form on the bottom of the Standing Committee Sign-Up page. If you are interested in following a committee, but do not wish to be a member of the committee, check the “correspondence only” boxes and you’ll receive up-to-date information on committee action. Once your information has been submitted, you will receive notification and committee information shortly thereafter. Committee and task force descriptions are listed below.

• Transportation Committee
o Road Infrastructure Task Force
o Water Task Force
• Regulatory/Legal Committee
o Royalty Owners Task Force
o Bakken VOC Task Force
o Legal Issues Task Force
o Split Estate/Surface Owners Task Force
• Communication Committee
• Oil Can! Committee
• Membership Committee
• Workforce Committee
• Tribal Lands Committee

Refinery Task Force Selects Consultant – The Refinery Task Force, that was funded by Senator Dorgan and is being managed by the Association of Rural Cooperatives, has selected the Corval Group, in partnership with Purvin & Gertz and Mustang Engineering, to conduct the feasibility study of a new refinery in North Dakota. The Petroleum Council, along with Tesoro, Murex Petroleum, Cenex, and the Petroleum Marketers, is involved in the steering and advisory committee. The results of phase one will be presented at the Williston Basin Petroleum Conference in May.
Water Development Meeting Information Available Online – On December 10, the Governor’s Office, with support from the Petroleum Council, held an informational meeting about water resource opportunities in western North Dakota. PowerPoint presentations and PDF versions of information shared at the meeting are available on the Presentations page of the Petroleum Council website. The Petroleum Council has established a Water Resources Task Force. (See story above.)
2010 WBPC Information Online – Information regarding the 2010 Williston Basin Petroleum Conference is now available on the Petroleum Council website. Additional information will continually be posted as the event draws near. Registration for exhibit booths and sponsorships will be open January 13, 2010. Registration for conference attendees will be open February 17.
Enbridge’s Pipeline Capacity to Increase by 60,000 barrels per day on January 1 – See the full story on this great news and more pipeline news in the North Dakota Pipeline Authority’s Pipeline Publication. We applaud Enbridge for doubling their pipeline over the past four years. Keep the increases coming, we need more export capacity.
North Dakotans Receive Tax Relief – North Dakotans will save an average of $650 on their taxes as a result of the property tax relief bill passed by the 2009 legislature and signed by Governor Hoeven. Taxpayers will save an average of 15-19% on their property taxes, depending upon valuation and local taxes, and approximately 12% on state income taxes. The corporate income tax reduction is minimal. Revenues from the Oi1 Tax Trust Fund were used to fund a majority of this tax relief package. Revenues are also set aside for property tax relief through 2012.
The comprehensive 2009 tax relief package includes:
Property tax relief and reform: $295 million
Homestead tax credit: $5 million
Individual income tax relief: $90 million
Business income tax relief $10 million
Total $400 million


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.