North Dakota Oil News from Ron Ness

New Members – Thanks to the new Petroleum Council members Trihydro Corp., NuStar Energy, Cornerstone Natural Resources, EnerCrest, Inc., and Wilson & Company, Inc.



North Dakota Oil Numbers – North Dakota set a new annual oil production record in 2009 producing about 80 million barrels of oil, up from 63 million in 2008. Production in November exceeded 245,000 barrels per day and December production likely approached 250,000 barrels per day. There are currently 85 rigs running in the state with 4,700 producing wells.



Bakken VOC Emission Control Solutions Session – The Bakken VOC Task Force, in partnership with the North Dakota Department of Health, is conducting an important informational meeting on March 23 concerning the venting of Bakken gases from crude oil production storage tanks. The gases contain potentially harmful VOCs (volatile organic compounds) which contribute to ground level ozone. This informational meeting will define unacceptable VOC levels and discuss measurement techniques and options for controlling these emissions. Industry is working collaboratively with the ND Health Department on this issue. The session will run from 10:00 a.m. – 2:00 p.m. The cost is $35, with lunch included.



To register, complete the PDF “Bakken VOC Meeting form” on the Petroleum Council website at www.ndoil.org and click “Submit Form.” If paying by check, mail $35/person to:

NDPC - Bakken VOC

PO Box 1395

Bismarck, ND 58502



2010 Williston Basin Petroleum Conference – The 18th Annual Williston Basin Petroleum Conference is quickly approaching and we would like you to be part of the excitement. A tentative Conference agenda, which is packed with more than 70 outstanding presenters on key topics, will be available on the Conference website later this week.



Indoor expo booths and outdoor exhibit spaces won’t be available for long. There are 85 indoor and 10 outdoor spaces remaining out of nearly 300. Don’t wait! Reserve your spot today! Sponsorships are also available online. General registration opens February 17 on the Conference website. Be sure to reserve your hotel room and flight soon. A list of hotels with Conference rates is available on the Conference website. When making reservations, state you are with the Williston Basin Petroleum Conference room block. Flight schedules are available on the Bismarck Airport website.



Petroleum Council Social in Denver on March 16 – Denver-based Petroleum Council members will host a social at the Brown Palace on March 16 from 5:00 -7:00 p.m. Industry members with an interest in North Dakota are invited to attend. RSVP to Tricia_Pastrana@eogresources.com.



Herman Appointed to the BLM Resource Advisory Council – Jeff Herman, Regional Land Manager for Petro-Hunt, and Petroleum Council Secretary/Treasurer, has been appointed by Secretary of the Interior Ken Salazar to serve a three-year term on the Dakota’s Bureau of Land Management’s Resource Advisory Council (RAC). Jeff will represent mineral interests in the Dakotas on the RAC. Congratulations to Jeff on this important appointment for our industry!



Standing Committee Participation Growing – Thank you to all who have volunteered to be a member of one or more Petroleum Council standing committees. We appreciate your interest in issues facing the oil and gas industry.



Business for five committees is already in full swing. The Bakken VOC Task Force met January 12 in Denver. The Split Estate/Surface Owner Task Force met January 21 and the Water Task Force is meeting January 28. The Workforce/Housing Committee is meeting January 29 and the Tribal Lands Committee has its first meeting February 1. We are still accepting volunteers. If you are interested in any of these, or other committees, visit the Petroleum Council website and complete the Standing Committee Sign-Up Form.



Committee Chairs Appointed – Petroleum Council Chairman Rick Ross has appointed the following members as committee chairs:

Bob Mau, Eagle Operating – Transportation; Terry Kovacevich, Marathon - Oil Can!; Brent Miller, Whiting Petroleum Corporation – Bakken VOC Task Force; Eric Dillé, EOG Resources –Split Estate/Surface Owner Task Force; Wayne Biberdorf, Hess – Water Task Force; Ryan Leininger, S & S Sales – Workforce Committee; Mike Smith, Questar Exploration and Production Company – Tribal Lands Committee; Jim Arthaud, Missouri Basin Well Service – Roads Task Force; John Morrison, Crowley Fleck Law Firm – Regulatory; Don Kessel, Murex Petroleum – Membership; and, Collis Chandler, G3 Operating – Royalty Owners Task Force.



Hoeven and Levings Sign Tax Extension Agreement – On January 13, ND Governor John Hoeven and Three Affiliated Tribes Chairman Marcus D. Levings signed a continuation of the State-Tribal Oil and Gas Tax Agreement. The signing ceremony was held at the Three Affiliated Tribes administrative headquarters in New Town, ND. The initial agreement was signed in June 2008 to streamline the current two-tax system into one and stimulate business activity for the tribes. View the agreement.



From left: Fred Fox, TAT Tribal Energy Director; Ron Ness, Petroleum Council President; Damon Williams, TAT Attorney; Chairman Levings; Gov. Hoeven; Scott Davis, ND Indian Affairs Commission Executive Director; Lynn Helms, Department of Mineral Resources Director; and Ryan Bernstein, Legal Counsel and Advisor to the Governor.



Photo courtesy Doreen Yellow Bird, TAT Press Secretary








Continental Resources Donates $1.8 million to ND Heritage Center Expansion Project – Oklahoma-based Continental Resources, Inc. has donated $1.8 million to sponsor the North Dakota Inspiration Gallery for the expansion of the North Dakota Heritage Center in Bismarck. The new gallery will interpret North Dakota’s innovators, opportunities, and inspirations. Visit the State Historical Society website for more information on the expansion project.



Oil and Gas Research Council Holds Special Grant Round – Applications for a special grant round ends February 15, 2010. Projects focusing on Bakken or Three Forks frac technology are encouraged. For more information, visit the Oil & Gas Research Council website.



Oil and Gas Research Council Approves Projects – The Oil and Gas Research Council held a meeting January 20 to review ongoing projects. During the meeting, a status report on the "Determination of Middle Bakken & Three Forks Sanish Zones" Project was given by Gene Carlson of Continental Resources. James Cron of Ward Williston also gave a report on the “Purpose-Fit Portable Multi-Phase Production Measurement System" Project. Several project grant requests were also reviewed and approved by the Council. These projects included a Bakken core surfactant study project, commercial driver license training program, flare gas capture project, and Phase II of the Bakken Water Optimization Study. View meeting reports online.



Annual Oil Tax Trigger Set – The North Dakota State Tax Commissioner has determined the oil trigger price for the calendar year January 1 through December 31, 2010, is $46.79. In accordance with NDCC § 57-51.1, if the average price of a barrel of crude oil (i.e., monthly average daily closing price for a barrel of West Texas Intermediate Cushing crude oil minus two dollars and fifty cents) exceeds the trigger price for each month in any consecutive five-month period, certain exemptions and rate reductions become ineffective. Therefore, the monthly average price of WTI oil would need to be less than $49.29 for five consecutive months in 2010 for the major oil tax incentives to trigger back on. View the published adjustment.



Professional Crane Operators Training Program – The Associated General Contractors of North Dakota is sponsoring a program designed to increase the participant’s knowledge of safe and efficient crane operations. The training will increase the overall quality and skills of the industry’s crane operators and provide assistance to employers in complying with regulatory obligations. Candidates for this course include any individual managing crane safety and crane operators. This program will also prepare crane operators to take the National Commission for Certification of Crane Operators (NCCCO) written core exam and any of its four written specialty exams.



Class Location: Radisson Hotel Bismarck, 605 E Broadway, Bismarck, ND 58501

Class Schedule: March 2-4, 2010, 8:00 a.m. to 5:00 p.m. each day

March 5, 2010 - NCCCO Written Exam (Optional)



Topics covered include:

Rules and Regulations – OSHA 1926.550, ANSI B30.5 & ANSI B30.23 (including new rules on management & signal person responsibilities)
Site Review and Set-up – Covers the different types of conditions encountered on construction sites.
Operations – Covers the tasks performed each day allowing you to pre-plan and carry out safe operations
Basic Rigging and Wire Rope – Covers the types of rigging equipment, classification along with safe wire rope practices and procedures.
Maintenance and Inspections – Provides an overview of the requirements for inspection and maintenance.
Load Charts – Reviews how to use load charts to determine safe crane capacity. Load chart manuals and exercises will simulate real job situations in which safe capacities must be determined.
Crane Types – Covers basic types of cranes and the operations encountered for each type of crane.


How to Register:

· For the Crane Operators Class - Complete the AGC of ND registration form and include appropriate payment.

· To sit for the NCCCO Written Test complete the candidate application and include appropriate payment.

· If you are certified and need to recertify, complete the candidate recertification application and include appropriate payment.

· Register your operators by February 15, 2010, to allow for paperwork submittal to NCCCO and avoid a $50 late registration fee. If you have any questions please contact Mark at 701-223-2770.



Note: This program covers the written test only. To complete the NCCCO certification process a practical test for each crane type must be completed. The additional cost of the practical testing would be $300 to $500 per crane type. AGC of North Dakota will be sponsoring a practical exam opportunity March 22-24, 2010. The practical exam will likely be held in Fargo due to crane and approved test site availability.





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