Pipeline Research Capturing National Attention
Growing Out-of-State Interest in ND Leak Prevention Effort
Earlier this year the North Dakota Industrial Commission approved a research grant to iPIPE, an industry-led effort to identify and reduce pipeline leaks, and already the program is attracting interest from companies around the country.
“We have growing out-of-state interest,” said Jay Almlie, Principal Engineer for the Energy and Environmental Research Center at the University of North Dakota. “It’s saying, ‘North Dakota has set up a program that the rest of the nation really likes.’”
Almlie provided an update this week to the ND Oil and Gas Research Council about iPIPE, which stands for Intelligent Pipeline Integrity Program. He said the research effort began with six industry partners, but has now grown to eight and more are interested. One of the new members is DCP Midstream, a subsidiary of Phillips 66, which Almlie says has no operations in North Dakota.
“They came to us and asked if they could be members, we didn’t go solicit them,” Almlie said. “And for every DCP, there are three others in the wings now in discussions with us talking about, ‘can we join?’”
EERC serves as coordinator of the research project. Industry partners provide matching funds to support research into cutting-edge leak detection and prevention technology. The effort was launched in response to a challenge to the industry by Governor Doug Burgum to achieve zero pipeline leaks. While eliminating every leak may not be possible, Almlie said iPIPE will get the industry very close.
“I think the goal is to take four 9’s -- 99.99% reliable pipeline operation -- and make it five or six 9’s,” Almlie said.
Click
here to see Almlie’s slide presentation.
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WDEA Forms Education Subcommittee
The Executive Committee of the Western Dakota Energy Associated voted this week to form a subcommittee to look for ways to help school districts challenged with coming up with funds to pay for additional classroom space.
Increasing enrollment numbers related to growth in the oil sector are forcing many western districts to develop expansion plans. WDEA President Gary Wilz, the superintendent of the Killdeer School District, said classrooms in his district start to get crowded with 500 students. This fall, counting pre-schoolers, he said the student count is 617. Wilz said the district is working with an architect and is conducting public meetings to develop a solution to its building needs.
Click
here to listen to Wilz’ comments.
Similar growth challenges are happening in school districts all across the Bakken. Leslie McDonald, the school superintendent in Alexander, says her district’s expansion plans are on hold for now, but her school board will take another look as the community’s population continues to grow. McDonald said the public needs to understand the important role that good schools play in attracting workforce.
Click
here to listen to McDonald’s comments.
Several possible solutions to address school building needs will be discussed by the education subcommittee for possible consideration by the 2019 North Dakota Legislature. Districts interested in participating in the discussion should
email WDEA Executive Director Geoff Simon.
Superintendents Wilz and McDonald were interviewed by Simon during a recent edition of the radio program,
Energy Matters. Click
here and advance to the 1:05 mark to hear the interview with Gary Wilz. Click
here and advance to the 30:02 mark to hear the interview with Leslie McDonald.
Energy Matters airs every Tuesday from 3:00–5:00 CST on KFYR and KLTC Radio, and is rebroadcast Saturday on WZFG and KTGO Radio.
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2019 Bill Pre-Filing is Underway
Operation Prairie Dog is House Bill 1066
More than 200 pieces of legislation to be considered by North Dakota’s 66th Legislative Assembly have already been pre-filed for the public’s review.
To date the ND Legislative
website shows 97 House bills and 116 Senate bills are already in the hopper. Among them is the Operation Prairie Dog bill, legislation that provides funding for the hub cities of Dickinson, Minot and Williston, and tweaks the formula for distributing gross production tax revenue to oil-impacted political subdivisions. The measure, which would also create infrastructure funding “buckets” for non-oil cities, counties and townships, is
House Bill 1066.
About 60 of the pre-filed bills are appropriations measures that would provide funding to various state agencies in the upcoming 2019-21 biennium. Other bills of interest already in the hopper include
HB 1097 related to Sunday closing laws,
SB 2044 related to tampering with or damaging a critical infrastructure facility or a public service, and
SB 2061 which would establish road use fees for electric vehicles.
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Lignite Industry to Promote EOR Legislation
Members of the Lignite Energy Council plan to pursue legislation in 2019 that would promote the use of carbon dioxide captured from coal facilities for use in enhanced oil recovery operations.
LEC President Jason Bohrer explained the proposal to members of the ND Empower Commission at a meeting last week. Bohrer said the draft legislation would provide a 20-year exemption from the state’s oil extraction tax for incremental production from a well using carbon dioxide mainly derived from coal facilities.
Bohrer said the legislation would provide a dual incentive for the state’s oil industry to pursue CO2 enhanced recovery, as well as creating a new revenue stream for the lignite industry as it works to insulate itself from potential CO2 regulations.
Click
here to read the Lignite Council's white paper on the topic.
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Davis Refinery Work Underway Off-Site
Just because equipment is idle at the site of the Davis Refinery near Belfield doesn’t mean there's no work going on. Components are being fabricated in Houston, while at the site a crew is maintaining environmental control, limiting the erosive qualities of North Dakota’s wind and water runoff.
“Ponds, ditches, erosion control are built to stabilize the site," said Adam Williams, Director of Communications for Meridian Energy Group, owner of the refinery. "If there’s a spring runoff of snow, it will flow into the pond."
Millions of cubic yards of dirt have been moved, preparing the site for construction with more on-site work to begin in the spring. The entire site, including buffer areas, is 600 acres. The initial dirt work covers about 150 acres where the plant will be situated. Williams said the city of Belfield and southwestern North Dakota will see more people and more activity in the spring.
“We’re looking forward to becoming a greater part of the community," Williams said.
Meridian Energy CEO William Prentice said the community has been outspoken in its support for the refinery. In an interview with Jason Spiess and the Crude Life Network, Prentice
said he anticipates even more excitement when spring arrives. That’s when steel will start rolling into the site, and more people will be added to the project.
Prentice
said the “state-of-the-art” research that went into designing the Davis Refinery could be used to build other refineries.
Click
here to listen to Spiess' 16-minute Crude Life interview with William Prentice.
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Tioga's Micro Retail Leads to Big Opportunities
Elaborate sheds on Tioga's Main Street are a different kind of retail district. They’re called micro retail -- small buildings in downtown Tioga giving retail businesses an opportunity to sell to the public without the overhead expense of a full-size store.
“We want to encourage growth,” said Dennis Lindahl, Community Development Coordinator for Tioga. “It’s difficult to attract small retail business, so we purchased two small 200-square-foot sheds, dressed them up and rent them to people who want to start a business in Tioga.”
The first two buildings have been rented to a dress shop and a bakery. Each pays $200-a-month rent which includes electricity. Lindahl said more businesses are interested in starting on a micro level.
Click
here to read the full story with photos on the coming growth in Tioga.
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Roughneck Coffee Catching on in the Bakken
Company Planning Roastery Facility in Williston
“Fueling the People, Fueling America” is a catchy slogan that perfectly describes a recent Bakken business start-up quickly gaining popularity among coffee drinkers working for and with the oil industry.
Roughneck Coffee was born out of research into a redevelopment project, according to company founder Jeff Zarling. He said he started looking into the coffee market and its supply chain, and became enamored with the idea of roasting and selling ground and whole bean coffee. Zarling, whose core business DAWA Solutions Group works with the oil and gas industry, said it was obvious that would also be the coffee company’s target market and Roughneck emerged as the best option for its name. He enjoys hearing customer responses to names given to some of Roughneck’s coffee blends.
“I get a kick out of people’s reaction when we say ‘Roughneck Coffee’ and ‘Frac Fuel’ or ‘Shale Shaker,’” Zarling said. “They just smile or chuckle because it just really connects with them.”
Promotion began earlier this year serving Roughneck Coffee at oil and gas job fairs, the Williston API golf tournament, Oasis’s gas plant opening and similar industry events. Zarling said the company has also donated sample packs and gift baskets to the Dickinson API golf tournament and numerous charity events for auction. The company started small, but as he learns more about market opportunities, Zarling is making plans to grow the company. Roughneck received support last week from the Williston Star Fund to acquire and renovate property at 820 2nd St West in Williston. Plans call for the new roastery and production facility to be up and running in the third quarter of 2019.
“Our mission truly revolves around the people of the oil and gas industry,” Zarling says, “And we are having a blast fueling the people, fueling America.”
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“Save Our Signs” Calendar Produced
North Dakota’s Local Technical Assistance Program has produced a "Sign Warrior" calendar featuring the artwork of the state’s 4th graders to highlight the danger to the public caused by people who vandalize traffic signs.
The cover of the calendar features the artwork of Adela Heberlie, the daughter of Mountrail County Highway Engineer Jana Heberlie. Adela’s drawing shows a car crash near a street sign that's been vandalized so a girl calling 9-1-1 doesn’t know where she is.
The calendar is the result of LTAP's Sign Warrior poster contest, part of its effort to educate the public not only about the cost of replacing signs that have been vandalized, but also the potential danger it causes for the traveling public. LTAP Director Dale Heglund says missing or damaged signs can lead to traffic accidents resulting in property damage, injury and death. He points out even the best driver can miss a corner or zoom through an intersection if signs are damaged or missing.
A limited supply of the calendars has been distributed to county highway shops in the state. Click
here to see an online version of the calendar.
Click
here for a KX News story about the calendar.
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Quick Connect
- Hess adds Bakken value with plug-and-perf completions -- Hart Energy
- Williston Economic Development gains accreditation -- Williston EDC
- Burke County wind farm could bring new residents to Divide County -- Tioga Tribune
- Minnesota man sentenced to 12 years for Bakken oil patch stock scheme -- KNSI Radio
- Corrections Dept. justifies prison closing, says female inmates "isolated" -- Dickinson Press
- Op-ed: Ward County’s plan for use of brine on roads is safe, cost effective -- Minot Daily News
- Surgical services return to Tioga under new UND program -- Tioga Tribune
- North Dakota residents’ reported income dropped 13 percent in 2017 -- Associated Press
- Williams County emergency manager earns certification -- KFYR-TV
- Vern Whitten aerial photography of oil industry activity around the Bakken -- Vern Whitten
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Factoid of the Week
The winter solstice arrived at 4:22 pm today in Bismarck. The time between sunrise and sunset was 8 hours, 32 minutes and 11 seconds.
That's 7 hours, 20 minutes shorter than the summer solstice in June. The winter solstice is particularly special this year with a full moon (known as the Cold Moon) along with the Ursid meteor shower.
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January 3
Bismarck
January 6
Williston
January 17
Dickinson
January 28
Capitol
January 29-31
Grand Forks
February 25-26
Dickinson
July 16-17
Bismarck
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Oil prices and rig count
December 21, 2018
WTI Crude: $45.59
Brent Crude: $53.50
Natural Gas: $3.72
North Dakota Active Rigs: 69 (up 2)
12/21
/20
17 -- 52 rigs
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Geoff Simon
Editor/Executive Director
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