North Dakota OIl News -- Ron Ness

FYI – The Petroleum Council is hosting an oil field tour on Thursday, August 26 in Stanley. Invites will be sent in the next ten days to all legislators and spouses. We will meet at 10:30 am at the Minot Holiday Inn and take buses to Stanley to tour a drilling rig, well site, frac, rail facility, and crew camp. That evening in Minot for those who want to spend the evening we will host a social and dinner (with no program). A room block at the Holiday Inn is available. RSVP required to me or Marsha Reimnitz at ndpc@ndoil.org or 701-223-6380 by Aug 13.




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From: North Dakota Petroleum Council [mailto:ndpc@ndoil.org]
Sent: Friday, June 25, 2010 12:22 PM
To: NDPC Members
Subject: NDPC June E-News



Below, and attached, is the North Dakota Petroleum Council’s June E-News. Have a nice weekend!



North Dakota Petroleum Council E-News

June 2010







New Members – Thanks to the new Petroleum Council members Badger Daylighting Corp., Balon Valves, Bayou Well Services, Brigham Oil and Gas, Hamm & Phillips Service Co., Olsson Associates, Otter Tail Corporation, and University of North Dakota – GGE.



US Williston Basin Oil Production – Charts courtesy of North Dakota Pipeline Authority. More information is available on the NDPA website.



2009 US Williston Basin Oil Production, BOPD 2010 US Williston Basin Oil Production, BOPD



MONTH
ND
E. MT*
SD
TOTAL

Jan
187,821
73,598
4,978
266,397

Feb
192,272
74,201
4,805
271,278

March
195,798
73,042
4,664
273,504

April
196,701
71,664
4,611
272,976

May
206,078
70,681
4,407
281,166

June
215,074
69,407
4,607
289,088

July
227,879
67,488
4,334
299,701

Aug
232,367
65,573
4,305
302,245

Sep
238,173
65,622
4,471
308,266

Oct
240,042
64,540
4,542
309,123

Nov
245,854
63,091
4,666
313,611

Dec
242,107
61,919
4,247
308,273

MONTH
ND
E. MT*
SD
TOTAL

Jan
236,114
59,304
3,679
299,097

Feb
261,179
62,147
4,580
327,906

March
277,332


--

April
284,345


--

















* Eastern Montana production composed of the following Counties: Carter, Daniels, Dawson, Fallon, McCone, Prairie, Richland, Roosevelt, Sheridan, and Wibaux.















Workforce Needs Study to Address Oil Industry Issues – In an effort to address infrastructure issues resulting from North Dakota’s expanding oil industry, the North Dakota Petroleum Council and the North Dakota Department of Commerce are co-sponsoring an oil industry workforce needs study.



The Oil and Natural Gas Workforce/Skill Needs Assessment is aimed at identifying projected workforce needs for all sectors of the oil industry. The results will then be used to approximate the number of new industry employees needed over the next several years, as well as determine areas where infrastructure expansion and development are necessary. Once the identified workforce related challenges are prioritized, partnerships can be formed to address and resolve the issues.



The study will be based on a sample size of approximately 75 oil industry companies. Ted Renner, president of Electronic Media, has been contracted to conduct the study on behalf of the Petroleum Council and Department of Commerce.



Results of the last study, which was conducted in 2006, showed that nearly 12,000 new oil and gas industry employees would be needed by 2010. This information was critical for policymakers and industry to assess the need for training and housing.



Join Us For The Oil Can! Bakken Rocks CookFests – Plans are underway for the Petroleum Council’s 2nd annual Bakken Rocks CookFests. This year’s events will be held from 5-8 p.m. CDT in Tioga on July 27 and in New Town on July 29. The Tioga CookFest will take place at Odegaard Park, and the New Town CookFest will take place at the Four Bears Casino – Little Shell Amphitheatre. This year, a Bakken Basics general education session has been added to the events. The session will be held from 2:30-4:30 p.m. CDT at both locations.



A dozen locally active operators will partner with service companies for a chance at claiming the rights to the “Best Oil Field BBQ Experience” at each location. Lots of food, fun and entertainment for the whole family will accompany educational booths and a chance to visit with industry professionals. We’re expecting a large crowd, and we hope to see you there! Please RSVP online.



GRILL TEAMS

TIOGA – JULY 27
NEW TOWN – JULY 29

Murex Petroleum – Wyoming Casing/Missouri Basin Well Service
Marathon Oil Corporation – Bear Paw

Hess Corp. – Nabors Drilling
Slawson Exploration – Key Energy

Continental Resources – Hamm & Phillips
Whiting Petroleum Corp. – Halliburton

Petro-Hunt – Nabors Wells Service
Petro-Hunt – Nabors Wells Service

XTO – Penkota Wireline
Kodiak Oil and Gas – Wyoming Casing/Missouri Basin Well Service

Brigham Exploration – S&S Sales/EnerMAX
Questar – Balon Valves

Whiting Petroleum Corp. – Halliburton
EOG Resources – S&S Sales/EnerMAX

Oasis Petroleum – Ward Williston
Peak North Dakota

SM Energy Co. – Bayou Well Service
Enerplus – Red Rock Transportation

Enbridge Pipelines (ND)
Spotted Hawk – Power Fuels


XTO – Penkota Wireline


Denbury Resources




Gov. Hoeven Advances Studies and Initiatives to Assist Oil and Gas Counties in Planning for Infrastructure Needs for the Upcoming Legislative Session – "Our Department of Commerce is working with a full range of key partners to assess and meet infrastructure needs in the oil patch,” said Gov. Hoeven. "As part of our overall planning efforts, we are looking at transportation, housing, workforce and other issues critical to meeting the needs of the oil and gas producing counties.”



1. A transportation study by the Great Plains Transportation Institute, in cooperation with the Oil and Gas Producing Counties and the Commerce Department. This study will be completed in November.

2. A housing study, in cooperation with the Housing Finance Agency, BND, Commerce Department, Minot State University and affected communities.

3. Technical Assistant Matching Grant program available from the Department of Commerce to help cities and counties develop plans for their water, sewer and other infrastructure needs.

4. Workforce Needs Assessment, in cooperation with the ND Petroleum Council and the Commerce Department, to identify what will be needed in terms of labor numbers and skills to sustain and grow the petroleum industry in western North Dakota.



Oil Industry Alert: If Constructing Communications Towers, You Must Follow Federal Requirements – The Federal Communications Commission's Federal Preservation Officer, Steve DelSordo, will present information on the agency's compliance process for communications towers. The construction of communications towers for the use of licensed spectrum is subject to review under Section 106 of the National Historic Preservation Act. Mr. DelSordo will explain the Section 106 process as it applies to communications towers. He will discuss tribal consultation and the role of the State Historic Preservation Office in the review of communications towers and will be available to answer questions. The presentation will take place on Tuesday, June 29 at 10:00 a.m. CDT at the 4 Bears Casino and Lodge in New Town, ND.





Seminar participants toured a drilling rig near Stanley, ND.

2010 Teacher Education Seminar a Success – More than 40 teachers and new industry members gathered for the 2010 Teacher Education Seminar in Bismarck, June 7-10. With all of the oil activity taking place in North Dakota, this year’s attending teachers were very interested, engaged and ready to learn. In addition to learning from a number of industry professionals regarding various aspects of the industry, teachers had the opportunity to tour a well site, drilling rig, producing well, rail facility, reclaimed site in the Stanley area, the Mandan Tesoro Refinery, and the North Dakota Heritage Center.



Seminar Reviews:

“I came to this seminar looking for guidance to the growing oil production process and was blown away with all the possibilities, technology and opportunities that are available in western North Dakota.”



- Doug Margerum, Richland High School, Colfax, ND



“The seminar presented a wealth of information and resources for students and classroom use. I will definitely be utilizing this information and materials. Thank you for the opportunity to attend this seminar. I will be sharing the whole experience with colleagues, students and friends.”



- Dianne Sonstelie, Fosston High School, Fosston, MN



Thank you to all those involved in making the Teacher Education Seminar a success! Special thanks to Larry Dokken, Lynn Helms and Kent Ellis for their extra efforts in coordinating and teaching at the seminar. We also want to thank the companies who provided tours, prizes, and sponsored the oil field lunch.



The seminar is funded by the Petroleum Council and a grant from the Oil & Gas Research Council.





Town Hall Meetings – A series of town hall meetings to discuss oil related activity in the western portion of North Dakota are in the works. These meetings will give local citizens an opportunity to hear from and question industry professionals regarding issues of concern. The town hall meetings are scheduled for October 5 in Westhope, Bowbells and Crosby, and October 6 in Williston, Watford City and Dickinson. More information to follow.



Hazardous Materials Training – DOT Hazardous Material training is required by the Federal Department of Transportation. It must be renewed every three years. A state issued CDL with a hazmat endorsement does NOT meet this requirement. There are penalties up to $500,000 per violation.



The North Dakota Propane Gas Association has a Hazardous Materials class scheduled for July 20 at the Holiday Inn, Minot, ND. Go to http://ndpropane.org/training/trainingschedule.asp for a registration form. Call Mary at 701-223-3370 if you have questions.



Pipeline Proposed to Connect Basin with Eastern Montana – On June 9, Quintana Capital Group filed a letter of intent with the North Dakota Public Service Commission for a new crude oil pipeline project that would connect the major producing regions of the Williston Basin with the Keystone XL Pipeline in Eastern Montana. Quintana is currently meeting with producers/shippers in the basin to gain the necessary support to move forward.



Project Details

Capacity: 100,000 BOPD initially; expandable to 120,000 BOPD

Header size: 110 miles of 10” pipe and 55 miles of 12” pipe

Truckline size: 145 miles of 16” pipe

Estimated cost: $250 million

Origin: Williams, Mountrail and McKenzie counties

Terminates: Interconnect with the Keystone XL Pipeline near Baker, MT

Timeline: If adequate support is obtained during an upcoming open season, pipeline could be in service March 2013.



EPA Announces a Schedule of Public Meetings on Hydraulic Fracturing Research Study – The U.S. Environmental Protection Agency (EPA) is hosting four public information meetings on the proposed study of the relationship between hydraulic fracturing and its potential impacts on drinking water. The meetings will provide public information about the proposed study scope and design. EPA will solicit public comments on the draft study plan.



The public meetings will be held on:

· July 8 from 6:00 - 10:00 p.m. CDT at the Hilton Fort Worth in Fort Worth, TX

· July 13 from 6:00 - 10:00 p.m. MDT at the Marriot Tech Center’s Rocky Mountain Events Center in Denver, CC.

· July 22 from 6:00 - 10:00 p.m. EDT at the Hilton Garden Inn in Canonsburg, PA.

· August 12 at the Anderson Performing Arts Center at Binghamton University in Binghamton, NY for 3 sessions: 8:00 a.m. - 12:00 p.m., 1:00 - 5:00 p.m., and 6:00 - 10:00 p.m. EDT



Natural gas plays a key role in our nation’s clean energy future and hydraulic fracturing is one way of accessing this vital resource. However, serious concerns have been raised about hydraulic fracturing’s potential impact on drinking water, human health and the environment. To address these concerns, EPA announced in March that it will study the potential adverse impact that hydraulic fracturing may have on drinking water.



To support the initial planning phase and guide the development of the study plan, the agency sought suggestions and comments from the EPA Science Advisory Board (SAB)—an independent, external federal advisory committee. The agency will use this advice and extensive stakeholder input to guide the design of the study. Stakeholders are requested to pre-register for the meetings at least 72 hours before each meeting.

More information on the meetings: http://www.epa.gov/safewater/uic/wells_hydrofrac.html



US Chemical Safety Board - Free Downloadable Safety Video for E&P Sites – The Chemical Safety Board (CSB), in response to the recent surge of accidents at oil and gas production sites across the U.S., has undertaken a national campaign to teach young people about the dangers of being in close proximity to unsecured sites. An educational video called "No Place to Hang Out" was produced as part of that effort and chronicles the tragic story of two Mississippi teenagers who were killed in October 2009 in an oil tank explosion. Teachers can download the video and lesson plan online or contact the U.S. CSB for a free copy.

The CSB has produced many safety videos for industry on a variety of topics. One recent video, "Seven Lessons to Prevent Worker Deaths During Hot Work in and Around Tanks," is an excellent resource for employees that perform welding, cutting, and other hot work around tanks that contain flammable liquids.



Petroleum Council Facts & Figures Available – The Petroleum Council’s annual collection of agency data related to the oil and gas industry in North Dakota is now available online and for distribution. North Dakota is now the 4th largest oil producing state in the nation. The state’s annual oil production grew by more than 26% in 2009, reaching nearly 80 million barrels, and the drilling rig count averaged 52 rigs per day. All-time oil tax revenues to the state are nearly $3 billion.



ND Oil PAC Seeking Contributions – Established in 1981, the North Dakota Oil PAC aids political candidates in North Dakota who support the oil and gas industry and work to promote good government and maintain a positive business climate for the industry in North Dakota. In North Dakota, only contributions in excess of $200 are reportable. Sorry, but corporate contributions are not allowed. Only personal checks are accepted. For a donation application, or more information, see the Petroleum Council’s website.



Mark Your Calendars!

July 27 Bakken Rocks CookFest – Tioga, ND

July 29 Bakken Rocks CookFest – New Town, ND

August 26 Legislative Tour Day – Stanley, ND

Sept. 21-23 Petroleum Council Annual Meeting – Holiday Inn (Riverside), Minot, ND



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

http://www.ndoil.org

ndpc@ndoil.org



"Only people who do things get criticized."