State May Revisit Gas Flaring Rules
The volume of natural gas associated with North Dakota oil production is increasing so rapidly, construction of pipeline and processing capacity is unable to keep up, prompting state officials to look for alternative methods to address the problem.
Regulations currently require producers to capture 85 percent of the natural gas, a target which will increase to 88 percent on November 1. Justin Kringstad, director of the ND Pipeline Authority told members of the North Dakota Industrial Commission yesterday it’s going to be tough to achieve the goal. He said improved drilling techniques and the fact most activity is in the “Bakken core” where gas-to-oil ratios are higher, has caused the state’s natural gas production to soar.
Midstream companies added about 1 billion cubic feet of processing capacity during the slowdown between 2014 and 2016, which helped the industry catch up, but Kringstad said the situation changed in early 2017.
Actual gas production started “ramping up considerably, must faster than anyone had anticipated,” Kringstad said, “and it blew past not only our high case scenario, but all the plant capacity that had been added.”
Lynn Helms, Director of the Department of Mineral Resources, said as drilling continues in areas where gas-to-oil ratios are higher, natural gas production will continue to climb, making it difficult for midstream companies to keep up.
“It’s not a race where we’re just going faster than the drilling and catch up, we’re actually going to have to accelerate investment in order to move ahead of this curve,” Helms said.
The discussion prompted Governor Doug Burgum to suggest state officials get together with the industry to brainstorm a solution.
“We should probably have a lens on whatever we do from a regulatory standpoint. The first thing it ought to be is, does it attract capital or push capital out of the state,” Burgum said. “The reason why we’re capturing a record amount of gas today is because the private sector stepped in and invested. It’s not because of an arbitrary rule in 2014, it’s because of the billions of dollars invested. If we do stuff that pushes capital away, the problem will get worse.”
The NDIC took no action at the meeting, but urged state regulators to meet with the ND Petroleum Council’s industry flaring task force, and include the Department of Commerce to consider value-added opportunities for energy development.
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Gas Capture on WDEA Annual Meeting Agenda
Guests attending the annual meeting of the Western Dakota Energy Association will hear about the latest efforts by midstream companies to process and transport North Dakota’s growing natural gas production.
The WDEA annual meeting will be held Wednesday and Thursday, November 7-8, at 4 Bears Casino and Lodge in New Town. The Wednesday afternoon agenda features a panel discussion moderated by ND Pipeline Authority Director Justin Kringstad, who will kick off the session with an overview of current production, and processing and pipeline capacity. Guests will then hear from speakers representing three midstream companies – Diaco Aviki with Crestwood Midstream Partners, Will McCuistian with ONEOK Rockies Midstream, and Jason Swaren representing Oasis Petroleum – who will describe their companies’ recent and planned investments in North Dakota.
The agenda also includes a presentation by Kayla Danks, BIA Superintendent for the Ft. Berthold Agency, who will provide an overview of the permitting situation on the reservation. Guests will also hear from Travis Hallam, pipeline director for the MHA Nation, as well as Brent Lohnes, manager of ND operations for Hess Corporation, who will review the latest research efforts into pipeline leak detection and prevention technology.
Online
registration is now open with an early registration fee of just $75.00. Discounted lodging is also available by mentioning the Western Dakota Energy meeting. Call (800) 294-5454 to book a room.
Click
here to see the full agenda.
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Measure One Opposition Continues to Grow
Opponents of Measure 1 held a news conference at the Capitol this week to announce growing opposition to the ballot measure which would force ordinary citizens and private charities to report details of their political involvement to the state.
It is absolutely essential that North Dakota voters understand the implications of passage of this measure,” said WDEA Executive Director Geoff Simon, who chairs North Dakotans for Sound Government, the coalition opposing the measure. “The disclosure provisions are extraordinarily broad, compelling anyone spending more than $200 ‘in any medium’ to influence an election or ‘state government action’ to report their ‘ultimate and true source of funds.’”
That language would required detailed reports from individuals, charities, trade unions, news media, bloggers, and even churches and religious groups that provide adoption or foster care services in partnership with the state, according to Simon.
“This is a self-executing measure, a directive to the state if you will, and the legislature has no choice but to implement this mandate,” he said. “The measure contains no exemptions, and because it’s a Constitutional measure, the legislature can't create any exceptions contrary to what its proponents claim.”
More than 40 organizations have stepped up to publicly oppose the measure. Among the latest to join are the ND Association of Realtors, the ND Implement Dealers Association, the State Association of Nonpublic Schools and the North Dakota Chapter of the NRA. Click
here to learn more.
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ND Rural Co-ops Urge NO Vote on Measure One
The North Dakota Association of Rural Electric Cooperatives (NDAREC) is urging a ‘NO’ vote on Initiated Constitutional Measure No. 1, which appears on the November general election ballot.
NDAREC Executive Vice President Josh Kramer, in an interview this week on the radio program
What’s On Your Mind, said the association’s board voted to oppose Measure 1 because of concerns it would limit the co-ops’ ability to advocate on behalf of their members.
Click
here to listen to Kramer’s comments.
NDAREC is the statewide trade association for 16 electric distribution cooperatives and five generation and transmission cooperatives operating in North Dakota. The distribution cooperatives provide electricity to nearly 250,000 North Dakotans via 196,000 meters.
Click
here to read the NDAREC news release.
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Coal Counties Choose Board Members
Leaders Plan to be Active in 2019 Legislature
Members of North Dakota Association of Coal Conversion Counties held their annual meeting Wednesday evening in Washburn to elect board members and discuss issues likely to arise in the 2019 legislative session.
Members in attendance re-elected the current slate of officers, led by chairman John Phillips, who represents the city of Beulah, and vice-chair Brad Rinas, superintendent of the Washburn Public School District. The CCC Association is part of the Western Dakota Energy Association, and Phillips and Rinas are its representatives on the WDEA Executive Committee. Click
here
to see other members of the board.
Guests at the meeting heard an overview of federal regulatory policy affecting the coal industry from Lignite Energy Council President Jason Bohrer. The LEC’s Director of Research and Development Mike Holmes also provided an overview of the latest power plant technology, and research aimed at developing new uses for lignite coal.
Senator Howard Anderson, R-Turtle Lake, was also on hand to share his views on the upcoming legislative session. WDEA Executive Director Geoff Simon reviewed likely legislation, including an overview of the infrastructure bill known as “
Operation Prairie Dog.
” He also discussed legislation that would give the state a share of wind tax revenue, all of which now stays in the county where a wind farm is located.
During the board discussion that followed the annual meeting, members talked about the need to be more actively engaged in the legislative process because of ongoing threats to the coal industry, and declining tax revenue impacts in the three coal-producing counties.
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Workforce Recommendations go to Gov. Burgum
The state Workforce Development Council gave Governor Doug Burgum an extensive list of recommendations this week to help shape the state's workforce policy to meet current and future needs.
The report contains recommendations, as well as endorsements of other initiatives already in progress. It's the culmination of 11 months of study coordinated by Michelle Kommer, Labor Commissioner and Executive Director of Job Service North Dakota.
A key theme of the report is the need to address the technical skills gap by developing a stronger connection between education and industry. It's hoped that connection will ensure earlier career exposure for students:
- aligning skills and credentials with employers’ needs
- developing more work-based learning opportunities for students, and
- expanding technical education opportunities.
Click
here to get the report.
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November is Job Fair Month in Williston
Job Fairs are filling the November Calendar in Williston. Job Service North Dakota
lists UPS with the first job fair on November 1.
"Job fairs are a successful and important tool Kinder Morgan uses to recruit top talent," said Mary Gorton, Kinder-Morgan's human resource representative in the Bakken Region.
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Billings County Parent Survey
Shows Support for 4-Day School Week
Parents of school children in Billings County School District are mailing back a questionnaire about their feelings and the impact a 4-day school week could have on their family.
District Assistant Principal Danielle O'Brien said this morning, "We haven't gotten all the surveys back, but there's enough interest to move forward with a community forum."
O'Brien said the idea of a 4-day school week can be a balancing act with the needs and desires of families, students, faculty and staff.
"We don't want people to lose hours or wages and benefits," she said.
If the surveys from parents continue to show interest in exploring the idea, a community forum with business leaders and anyone else in the community will be scheduled.
Click
here for more from KX News.
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Fundraising for Oilfield Journalist Jason Spiess
Friends and colleagues of Jason Spiess, best known for his work as producer of The Crude Life Media Network, have organized a fundraising effort to support the multimedia journalist who was diagnosed with colon cancer earlier this year.
Throughout his arduous journey, Jason has maintained his love and investment in his 12-year-old son, Otis. But his cancer treatment and complications have sapped Jason’s energy. He is host of three radio programs, Building the Bakken, MonDak OilField Review and Coffee & Capitalism, that are broadcast in five states and three Canadian provinces.
Jason's career has taken a backseat (and rightfully so) as he battles back to full health. It's a slow-going battle and bills are piling up. Friends of Jason have set up three ways in which the public can help:
1. Donate! Your donation will be increased by 20% by Lend A Hand Up. Click
here to donate.
2. Come to the benefit Friday, Nov. 9, at 7:00 pm in Fargo. For additional details or tickets, click
here.
3. Donate a silent action item for the benefit on November 9. If you have an item, contact
Erik Hatch.
The goal of the fundraising effort is $50,000. You can read more about Jason, where he's been, and how he’s doing on his
Facebook page.
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Seat Belt Enforcement Period to Begin in November
Law enforcement across the state will have extra patrols from November 1 through December 13 for the Click It or Ticket campaign enforcing the state seat belt law.
In 2017, one unbelted vehicle occupant died every seven days in North Dakota.
“You never know when a crash could happen,” said Lt. Steven Fischer of the North Dakota Highway Patrol. “That’s why it’s so important you choose to always buckle up.”
The seat belt campaign is part of the Vision Zero strategy to eliminate motor vehicle crash fatalities and serious injuries on North Dakota roads.
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Quick Connect
- Dickinson High School dealing with overcrowding -- KFYR-TV
- Minnesota eco-activists push GRE to close Coal Creek -- Energy News
- Investigators continue tracking leads at well site vandalism -- KFYR-TV
- ONEOK talks about July fire at Stateline processing plant in North Dakota -- Williston Herald
- Tribal members file lawsuit over highway shutdown during DAPL protest -- A.P.
- Candidates say "North Dakotans are fed up" with high property taxes - Minot Daily News
- New Mexico man sentenced to 16 months in Dakota Access pipeline protest -- A.P.
- U.S. energy production up, oil at 11 million bbl/day, emissions down -- Breaking Energy
- North Dakota among states seeing the most growth in Heartland study -- Dickinson Press
- Trucking fatalities reach highest level in 29 years, up 9% in 2017 -- Trucks
- Artists paint murals on Dickinson Highway 22 underpass -- KX News
- ONEOK continues financial support for McKenzie County Health System-- Roundup
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Factoid of the Week
Approximately 88,300 or 60% of the people working in the oil and gas extraction industry are non-supervisory. Their average hourly wage is $36.14. Their average workweek is 41 hours, earning about $1,500/week. Petroleum engineers received the highest average annual earnings in 2017 at $154,840.
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October 29
Williston
November 7-8
4 Bears - New Town
November 8
Bismarck
November 14
Mandan
November 14-15
Bismarck
November 15
Bismarck
November 20
Bismarck
December 3-5
Bismarck
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Oil prices and rig count
October 26, 2018
WTI Crude: $67.55
Brent Crude: $77.68
Natural Gas: $3.19
North Dakota Active Rigs: 67 (dn 4)
10/26/2017 -- 53 rigs
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Geoff Simon
Editor/Executive Director
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