Ron Ness and North Dakota Oil News

Reminder of the Legislative oil field tour on Thursday, August 26 leaving Minot Holiday Inn at 10:30 a.m. We will consider providing hotel room expenses Thursday night for those traveling from eastern ND (contact me for info). Call 223-6380 to rsvp or email Marsha at above address.




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From: North Dakota Petroleum Council [mailto:ndpc@ndoil.org]
Sent: Wednesday, July 21, 2010 11:07 AM
To: NDPC Members
Subject: July 2010 Petroleum Council E-News



Attached, and below, is this month’s Petroleum Council E-News.



North Dakota Petroleum Council E-News

July 2010







New Members – Thanks to the new Petroleum Council members Ameri-Tech Industries, LLC; Quintana Capital Group, Ltd; Stallion Oilfield Services; and Wells Fargo–Denver.



ND Oil Activity – There are 136 rigs running as of July 21, 2010. In May, there were 4,893 wells producing 296,422 barrels of oil per day. The number of wells and number of barrels produced are both all-time record highs.



Join Us for the Oil Can! Bakken Rocks CookFest – We hope to see you at the Petroleum Council’s 2nd annual Bakken Rocks CookFest. This year’s events will be held in Tioga on July 27 and in New Town on July 29 from 5:00-8:00 p.m. CDT. The Tioga CookFest will take place at the Farm Festival Building, 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 Corporation –
Wyoming Casing/Missouri Basin Well Service
Marathon Oil Corporation – Bear Paw Energy

Hess – Nabors Drilling
Slawson Exploration – Key Energy

Continental Resources – Hamm & Phillips
Whiting Petroleum Corporation – 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 Corporation – Halliburton
EOG Resources – S&S Sales/EnerMAX

Hunt Oil – Ward Williston
Peak North Dakota

SM Energy Company – Bayou Well Service
Enerplus – Red Rock Transportation

Enbridge Pipelines (ND)
Spotted Hawk – Power Fuels

American Oil & Gas – Power Fuels
XTO – Penkota Wireline


Denbury Resources – Wilson Supply




Petroleum Council Annual Meeting – The Petroleum Council’s 2010 Annual Meeting will be held at the Holiday Inn Riverside in Minot, ND, September 21–23. Online registration will open in August at www.ndoil.org. Annual Meeting events include industry presentations, social and networking opportunities including golf, sporting clays, a banquet and luncheon. Agenda, registration and sponsorship information will be available on the Petroleum Council website soon. Be sure to reserve your hotel rooms as soon as possible.



Petroleum Council Comments at EPA Hydraulic Fracturing Hearing – 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 Petroleum Council has also been working with the ND congressional delegation and other trade associations to prevent congressional action that would negatively impact the Bakken. Visit www.epa.gov/safewater/uic/wells_hydrofrac.html for more information. Petroleum Council Chairman Rick Ross provided comments on behalf of the association at the July 13 hearing in Denver.



We encourage industry members to submit written comments to the EPA by emailing hydraulic.fracturing@epa.gov or writing Jill Dean, 1200 Pennsylvania Ave. NW, Mailcode 4606M, Washington, DC 20460. The Petroleum Council thanks Representative Pomeroy, Governor Hoeven and all others who are engaged in this important issue.



EPA may halt oil activity: Pomeroy asks to turn down regulations – Rep. Earl Pomeroy, D-N.D., is asking House leadership to turn down any new regulations on hydraulic fracturing. A state minerals expert also says any new regulations on hydraulic fracturing would have a catastrophic impact on the oil development in North Dakota. Read the full story on the Minot Daily News website.



Pomeroy’s Comments to EPA – “The Deepwater Horizon oil spill is a terrible tragedy. I support the efforts currently underway to get to the bottom of what went wrong on that oil rig to ensure that a similar disaster is never allowed to happen again. As the House puts together its response to the oil spill in the Gulf of Mexico, I strongly encourage you to keep the House's focus on responding to this tragedy and not on placing additional regulations on onshore development, especially on the process known as hydraulic fracturing.” Read Rep. Pomeroy’s full comments.



Hoeven’s Comments to EPA – “Thank you for this opportunity to once again present my views on the regulation of hydraulic fracturing during your public comment period regarding a planned study of the practice. As you know, I have made my position on the regulation of fracturing clear on a number of previous occasions, including a meeting in Washington, D.C. with officials at your office, and also in a telephone conversation you and I had this past spring. I believe that the states are best suited to regulate hydraulic fracturing. In North Dakota we work hard to make sure hydraulic fracturing is well and properly regulated.” Read Gov. Hoeven’s full comments.



Town Hall Meetings – A series of town hall meetings to discuss oil-related activity in the western portion of North Dakota is in the works. These meetings will give local citizens an opportunity to hear from and ask questions of 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 will be available at a later date.



Gas Tax Rate Notice – In keeping with the provisions of North Dakota Century Code § 57-51-02.2, the Tax Commissioner has determined that the gas tax rate for the fiscal year beginning July 1, 2010, through June 30, 2011, is $0.0914 per mcf. The gross production tax on gas produced during this time period must be calculated by taking the taxable production in mcf times the $0.0914 gas tax rate. The gas tax rate is also published on the Office of State Tax Commissioner’s website at www.nd.gov/tax.



Statement from Chairman Marcus Levings Regarding the 2010 Elections for Tribal Chairman – “After much thought and discussion with family and friends, I am announcing I will not seek a second term as Three Affiliated Tribes Chairman in the 2010 Tribal Elections. …



I will remain in the community and continue to work for the people, but not as Tribal Chairman. I haven’t made any definite plans for the future – only that I will not seek another term as Chairman of the Three Affiliated Tribes. I want to extend a special thank to you all of our Tribal members, my family, friends, and relatives. It has been a tremendous opportunity and honor for me to serve in the capacity of Chairman, and I will diligently continue out my duties to term. Mad-zi-gi-datz…Thank you…”



“Chairman Levings has played an integral part in forwarding oil and gas exploration of Three Affiliated Tribes’ land. His hard work is greatly appreciated,” said Ron Ness, Petroleum Council President. Read the full press release online.



WSI All States Coverage – Employers are being sent information on two important changes about their workers’ compensation coverage with Workforce Safety & Insurance (WSI). These changes became effective July 1, 2010:



· 50% Premium Dividend Credit – WSI will be issuing a premium dividend to North Dakota policyholders. Eligible policyholders will receive a premium dividend credit in the amount of 50% of the policyholder’s 2009-10 premium. The credit will be applied towards the employer’s 2010-11 policy renewal. The premium dividend credit cannot reduce the policyholder’s premium below the $250 minimum premium. Accounts not in good standing status as determined by WSI are not eligible.

· Newly Expanded Temporary and Incidental All States Coverage – In partnership with the Accident Fund of America, WSI has extended its temporary/incidental coverage product to all North Dakota policyholders. This product provides coverage for North Dakota policyholders with employees working outside the state for 30 consecutive days or less or where there are no other significant contacts which would require securing coverage in another state. It is the policyholder's responsibility to verify coverage requirements with other states before conducting business operations in that state.



To learn more about the Premium Dividend Credit or the Temporary and Incidental All States Coverage, visit the WSI website at www.WorkforceSafety.com or call 1-800-777-5033.



$2 Million Available for Oil and Gas Research – The Industrial Commission, at a recent meeting, identified two specific areas for research to further enhance oil and gas development in North Dakota and identified funding that could be made available for this research.



The first prioritized area of research is for simul-frac projects located throughout the Williston Basin. The identification of this type of project was a result of a grant proposal from Peak North Dakota. In their application, they proposed to drill and then simultaneously fracture stimulate (simul-frac) two short lateral horizontal Middle Bakken wells on the Fort Berthold Indian Reservation (FBIR). Peak intends to compare the results of the proposed 2010 simul-frac with a previous simul-frac completed in 2009, other stimulation designs, and well data from other willing operators on the FBIR to determine which combination of factors leads to the best economics and highest recoveries of Original Oil in Place. The Commission authorized $250,000 for the Peak North Dakota project and directed that additional funding be set aside for this type of work to be conducted in other parts of the Williston Basin.

The second prioritized area for research is the performance of vertical micro seismic techniques to evaluate fracture height of Middle Bakken and Three Forks-Sanish stimulations.



The funds available for these solicitations total $2,000,000 representing half of the biennium budget. The proposals must be submitted by November 1, 2010 and be in compliance with Oil and Gas Research Council policies. Several contingencies will be stipulated if an applicant is successful in getting approval of the Oil and Gas Research Council and the Commission.



The Oil and Gas Research Council was established by the Legislature in 2003. Its mission is to promote the growth of the oil and gas industry through research and education. For more information about the Oil and Gas Research Council, visit www.oilresearch.nd.gov. For further information, contact Brent Brannan at 701-425-1237.



IOGCC Stewardship Awards: The 4 R’s of Resource Conservation – The Interstate Oil and Gas Compact Commission (IOGCC) is seeking nominations for the 2010 Chairman’s Stewardship Awards to honor outstanding environmental and educational stewards of the oil and natural gas industry. The Chairman’s Stewardship Awards honor the achievements and efforts of companies or organizations that serve as examples for others in the industry, government, and public. These awards represent the IOGCC’s highest honor for exemplary efforts by the oil and natural gas industry in environmental and educational stewardship. Nominations will be accepted in four different categories: Energy Education, Environmental Partnership, Large Company and Small Company. For more information, visit the IOGCC website. Submissions must be received by September 13.



United Energy Trading LLC Announces Start of Unit Train Railing of Bakken Crude Oil from Mountrail County, ND, to St. James, LA – United Energy Trading LLC (UET) announced July 15 that the August 1, 2010 commencement of unit train transportation of crude oil from the Williston Basin of North Dakota to the St James, Louisiana market center. St. James is the primary light sweet market center in North America with over 1 million barrels of crude traded each day typically at a significant premium to WTI Cushing. Read the full press release online.



NOVA Chemicals Announces Agreement to Purchase and Transport Ethane Supply from Williston Basin for its Joffre Petrochemical Complex – NOVA Chemicals announced July 15 that it signed a memorandum of understanding (MOU) with Hess Corporation (Hess) and Mistral Energy Inc. (Mistral) to purchase and transport ethane production from Hess’ Tioga Gas Plant in North Dakota via a proposed pipeline to Alberta, Canada. NOVA Chemicals will purchase 100 percent of the ethane produced at the Tioga Gas Plant under a long-term arrangement. Read the full press release online.



Mark Your Calendars!

July 27 Bakken Rocks CookFest – Tioga, ND

July 29 Bakken Rocks CookFest – New Town, ND

Aug. 26 Legislative Tour Day – Stanley, ND

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

Oct. 5 Town Hall Meetings: Westhope, Bowbells, Crosby

Oct. 6 Town Hall Meetings: Williston, Watford City, Dickinson















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.







North Dakota Petroleum Council

PO Box 1395

Bismarck ND 58502

701.223.6380

701.222.0006 fax

www.ndoil.org

ndpc@ndoil.org



"Only people who do things get criticized."