November 15, 2019 -- The Marathon Begins
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The Public Service Commission's hearing into the DAPL Optimization project gets underway at the Emmons County Courthouse Auditorium. The session went on for more than 15 hours.
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PSC Hears DAPL Expansion Plan
Hundreds Turn Out for Meeting in Linton
Around 300 people representing pipeline interests, labor unions, environmental groups and tribal government attended a hearing of the ND Public Service Commission this week in Linton on the application of Dakota Access LLC to add pumps to expand the oil pipeline's capacity.
The application has been challenged by the Standing Rock Sioux Tribe, which was granted intervention in the case. The initial portion of the hearing was much like a courtroom trial with the company and tribe presenting witnesses who were subject to cross examination by the opposition. The formal part of the hearing, which got underway at 9:00 a.m., was followed by a public comment period that continued past midnight, finally wrapping up around 12:30 a.m.
The pipeline company wants to add pumping capacity to the Dakota Access Pipeline that will allow DAPL to move up to 1.1 million barrels of crude per day. The planned 30,000 horsepower pump station will be located about five miles west of Linton.
The Standing Rock Tribe contends the expansion increases the risk of a catastrophic oil spill, but witnesses for the company said the volume and velocity of oil in a pipeline have no impact on the chance that a spill will occur. Tim Purdon, attorney for the Tribe, argued that "surge," a rapid change in pipeline pressure caused by a change in flow, was more likely if the expansion is approved. But Charles Frey, VP of Liquids Engineering for Energy Transfer Partners, said the pipeline is designed to address it.
Click
here to listen to the exchange between Purdon and Frey.
The PSC decision in the case is likely several months away. PSC Chairman Brian Kroshus said he expects the commission will have several work sessions before acting on the application. Its obligation is to ensure the project will produce minimal adverse effects on the environment and the welfare of the citizens of North Dakota; that the facilities are compatible with environmental preservation and the efficient use of resources; and its location minimizes adverse human and environmental impact.
Click
here to view or download the list of documents that have been filed in the case. Click a link below for additional news media coverage of the PSC hearing:
Hundreds turn out for the ND PSC DAPL hearing in Linton --
KXMB-TV
Security enhanced at PSC hearing; metal detectors and extra patrols added --
KFYR-TV
Dakota Access Pipeline expansion also needs approvals in other states --
Bismarck Tribune
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WDEA Endorses DAPL Application
The Western Dakota Energy Association held a news conference Monday to declare its support for the Dakota Access Pipeline optimization project.
Executive Director Geoff Simon said WDEA's Executive Committee believes the project is a "win-win-win" for North Dakota. Simon said because pipelines are the safest and most efficient method of transporting crude oil, it makes sense that we try to move as much of it as possible by that method.
Simon added that because pipelines are the most most efficient way to ship crude, DAPL reduces the transportation differential so the state’s producers get a higher price for their oil.
Click
here to listen to Simon's comments.
Simon said the optimization project will also benefit property tax payers. Pipeline valuation is based on a combination of the actual value of the infrastructure itself, as well as the income that it generates. So if the DAPL pipeline is moving more oil, its centrally-assessed valuation will go up, meaning additional property tax revenue in the counties the pipeline crosses.
Also participating in the news conference was Preston Page, who spoke on behalf of North Dakota royalty owners. Page said the lower transportation rate through the pipeline has delivered huge value to the state, and pointed out it has also freed up rail capacity to move the state's agricultural commodities.
Click
here to listen to Page's comments.
Click
here to see WDEA comments submitted to the Public Service Commission in support of the DAPL optimization project. Click
here to see comments of the North Dakota Petroleum Council.
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Helms: September Not As Bad As We Expected
The preliminary oil production numbers for the month of September will be released early next week and the state's top oil regulator says they will not be down as much as earlier predictions. (See
Nov. 1 WDEA newsletter)
Lynn Helms, director of the Department of Mineral Resources, told a legislative committee this week that the wet weather in September did cause a drop in production, but it will only be about two percent lower than the August numbers.
Click
here to listen to Helms' comments.
Helms said production technology continues to improve, especially in the Bakken which he said is the "absolute best place in the country to put a drilling rig." He said the Bakken continues to out-perform the Permian, the Eagle Ford, the Niobrara and other shale plays around the United States. And he said the improvements are happening quickly.
"A new well coming on in 2019 will produce 50-to-70 percent more in the first 18 months than a well that was completed just a year ago using the new technologies," Helms said.
The downside to the story is that associated natural gas production continues to outpace oil production, and the absence of adequate infrastructure to handle it has constrained industry growth.
"You can see the gas curve is much steeper than the oil curve and that's what really is our struggle as we go forward over the next five to 10 years is, the oil curve is where the money's at, the gas curve has got to be managed."
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ONEOK Processing Capacity Coming Online
Company Planning Another Plant in Near Future
By January 2020, ONEOK Corporation will have constructed enough natural gas processing capacity that it will be able to handle nearly half of North Dakota's total production.
The state topped 3 billion cubic of natural gas production per day in August, but ONEOK will soon have the capacity to process 1.4 BCF per day.
Dick Vande Bossche, VP for Commercial Gas Supply with ONEOK Rockies Midstream, told members of the legislature's interim Energy Development and Transmission Committee this week that the company brought in service in October its Demicks Lake I plant in McKenzie County. The plant has the capacity to process 200 million cubic feet of gas per day.
Vande Bossche said ONEOK is also on schedule to bring Demicks Lake II, a second plant capable of processing 200 MMcf/d, in service sometime in January 2020. A third plant - Bear Creek II with 200 MMcf/d capacity - is under construction in Dunn County and will be in service the first quarter of 2021. And Vande Bossche also told legislators that ONEOK has plans for yet another 200 MMcf/d capacity on the drawing board.
"We filed certification with the PSC for another 200 million per day processing plant in McKenzie County, so that's working its way through the approval processes," Vande Bossche said. "We have interim funding to do some long lead item purchases as it relates to that 200 million a day processing facility."
He said final execution of plans for the additional gas processing plant are contingent on board approval of the project. ONEOK is also nearing completion of its Elk Creek Pipeline that will move up to 240,000 barrels per day of natural gas liquids to processing facilities in Kansas and points south. It's expected to be fully operational by the end of 2019.
Click
here to see Vande Bossche's slide presentation to the EDT Committee.
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Company Moves "Energy Through the Air"
In the digital age computing can happen anywhere, so why pay Silicon Valley prices for electricity, when that same activity can be done much more cheaply in North Dakota?
That's the concept behind "digital flare mitigation,' an innovative method to reduce the flaring of excess natural gas production occurring in North Dakota and other basins. Cully Cavness, President and Co-Founder of Crusoe Energy
Systems, explained the idea to the legislature's interim Energy Development and Transmission Committee this week.
"We can come to a site that's already flaring and basically mitigate or eliminate that flare," Cavness said.
The company sets up on-site generators that use raw gas to produce electricity that powers a bank of computers housed in a box that resembles a shipping container. He said the technology is "scalable from tens of thousands of cubic feet per day to multiple millions of cubic feet per day."
Committee Chairman Rich Wardner said he liked the concept.
"So what we have are these computers no matter where they're at they're energy hogs, and you can put them anywhere because you can transmit data through the cloud," Wardner said. "So you set them up out in the oilfield, you're using the energy, instead of taking it off of the grid you're taking it right out of the pipeline, and these little energy hogs are working in this building, collecting and transmitting data and everybody's happy."
Cavness said the technology has numerous applications to address flaring challenges.
"Topography can create hydraulic issues with pipelines that make it difficult to build a pipe ever to some stranded sites, so with this we're effectively transmitting the energy through the air," he said. "There can be surface owner challenges which make pipeline construction very difficult. This doesn't require any kinds of physical infrastructure installation, so it's a way to work around that challenge."
Cavness said his company currently has two installations in North Dakota. Click
here to see his slide presentation to the interim committee.
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Watford City Airport Project Approved
Runway Work Split into Two-Year Project
Plans were approved this week to begin construction work next spring on a longer, re-aligned runway at the Watford City Airport. But instead of attempting to finish the work in a single construction season (see
Aug. 23 WDEA newsletter), the work will be spread over two years to minimize downtime at the airport.
The Watford City Airport Authority approved design work for a 5,800 foot concrete runway, which carries an estimated price tag of $26.4 million. The city expects to bid the first phase of the project in February.
Construction of the new runway will eventually require the current 4,400 foot runway to be shut down, but airport officials decided to spread the work over two years to shorten the time the airport will be out of service. Next summer the city will complete grading and other dirt work that won't affect existing airport operations, and complete work on the concrete runway in 2021. The second phase of the project which will require shutting down all air traffic is expected to require about six months to complete.
There are 35 aircraft based at the airport, ranging from business jets to smaller single engine aircraft. The airport is also important to aerial applicators and regional healthcare systems. Click
here for additional project details, including a conceptual drawing of the realigned runway.
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Wise Roads Nominated for API Award
WDEA's Wise Roads project is one of the finalists nominated for an award in the category of Industry Innovation by the Williston API Chapter. Award winners will be announced at the 8th annual Williston Petroleum Banquet tonight at the Grand Williston Hotel & Convention Center.
The
Wise Roads project (Weather Information System to Effectively Reduce Oilfield Delays and Disruption) was launched this past summer. The project is a response to industry complaints that county-imposed weights restrictions on gravel roads during and after rain events have been overly broad, unnecessarily disrupting oilfield trucking operations. The county road managers’ actions are understandable. Lacking information about the extent of rain events, they err on the side of caution to protect county roads from excessive damage caused by heavy trucks. The gist of the Wise Roads project is to place additional scientific-grade weather stations in areas with the heaviest oilfield traffic to provide counties additional information, especially precipitation data, to guide their road management decisions.
Other finalists for Innovation Award are SkySkopes and Liberty Resources. The Williston API Chapter will also present awards for Community Service and Outstanding Achievement. Click
here for additional information about the API award categories.
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Roads Roundtable Set for December 18
Counties & Industry to Discuss Road Policies
The Western Dakota Energy Association and the Upper Great Plains Transportation Institute/NDLTAP will co-host a western roads roundtable December 18 to bring county road managers and oilfield trucking interests together to discuss common issues and concerns.
The gathering will be held at the new McKenzie County Public Works Facility, 1300 12th St SE, in Watford City.
A similar event held last year attracted more than 70 individuals representing counties, townships, oil producers and oilfield trucking companies. The key portion of the meeting will be a roundtable discussion of local road restriction policies facilitated by NDLTAP Program Director Dale Heglund.
The
draft agenda includes legislative and regional community updates, an update on WDEA's Wise Roads project, and updates from MHA Nation and federal highway officials.
There will be NO fee to attend the event, but registration will be required. Click
here for additional details of the meeting. Click
here to register.
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Annual Meeting Presentations On Line
Links to slide presentations shared during the WDEA 2019 Annual Meeting have been uploaded to the WDEA web site. Presentations are available at this
link.
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NDDOT Releases 2020-23 Transportation Plan
The North Dakota Department of Transportation 2020-2023 Final Statewide Transportation Improvement Program is now available.
The STIP is a four-year program of transportation improvements to be funded with federal highway and transit monies. Improvements include state and county highways, urban streets, roadway safety features, bikeways and busing programs.
Click
here to download an electronic copy of the 103-page document. Copies will also be available for viewing at district offices, or may be obtained from the NDDOT Programming Division upon request.
NDDOT is also seeking public comments as it prepares the 2021-2024 STIP.
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Auditors Launch “I Voted” Sticker Contest
North Dakota 4th Graders Asked to Submit Ideas
The North Dakota County Auditors Association has launched a contest for fourth grade students to design a new “I Voted” sticker for use in the 2020 Election and into the future.
The project is intended to raise awareness of the importance of elections and the role counties play in elections. In addition, it provides a new updated sticker for voters to receive on Election Day.
North Dakota County Auditors will be reaching out to schools across the state in an effort to engage 4th grade classrooms and encourage student participation. The student can create a color design using the form distributed to schools or found directly
here. The design must include the words: “I Voted” and the design must fit in the oval on the form.
Entries can be provided to the county auditor or emailed directly to
contest@ndaco.org by December 20. County Auditors will select one submission from their county to forward onto the statewide competition. The winning design will be announced in April 2020 during County Government month. The “I Voted Sticker” will be used starting in the June 2020 election.
Soliciting the help of fourth graders is a perfect fit for the project. Fourth graders across the state have a North Dakota Studies unit, which includes the right and responsibility of citizens over the age of 18 to vote in elections. The contest provides an opportunity for county auditors and teachers to work together to get kids interested in voting and educated on the election process.
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Quick Connect
- Keystone Pipeline back in service after October spill -- Fargo Forum
- TC Energy logs nearly 40,000 hours in clean-up at oil spill site -- Fargo Forum
- Glen Ullin Wind Farm produces enough power for 55,000 homes -- KFYR-TV
- What to do with used wind turbine blades, "26 million tons of fiberglass waste" -- Prairie Public
- Long X Bridge work continues, but rest of 4-lane project has landed in limbo -- Williston Herald
- Sanford opens ND Energy Conference, talks about challenges, opportunities -- GF Herald
- ND Ethics Commission turns down 2nd complaint, approaches rulemaking -- Bismarck Tribune
- North Dakota ethics study broaches subject of 'dark money' in elections -- Bismarck Tribune
- TR Presidential Library Foundation takes steps toward building concept -- Bismarck Tribune
- Williston options for unexpectedly high soil removal costs at Sloulin Field -- Williston Herald
- Williston's Sloulin Field closer to redevelopment as city accepts bid -- Williston Herald
- The ND Legacy Fund tops $6 billion; ideas pour in for spending the wealth -- Fargo Forum
- Socialist hecklers disrupt pro-business speaker at ND Legacy Fund meeting -- Fargo Forum
- Equinor seeks high-energy K-12 teachers for STEM fellowships -- Williston Herald
- School study kicks off with timeline and question about possible conflicts -- Williston Herald
- Minot-area farmers share crop insurance needs with USDA administrator -- Minot Daily News
- Western North Dakota’s first rural addiction center in Beulah expands -- KXMB-TV
- U.S. shale is estimated to produce more oil than all of Russia by 2025 -- OilPrice.com
- U.S. natural gas production, consumption, and exports set new records in 2018 -- EIA
- Elizabeth Warren's plan to toss out the 1st Amendment to eliminate oil/gas -- Energy in Depth
- Toomey presses for a bulwark against a future presidential fracking ban -- Associated Press
- DAPL operators: Climate change 'undefined, vague, and ambiguous' in filing -- Washington Post
- Declining Saudi imports shows shale production critical for energy security -- Energy In Depth
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Factoid of the Week
The Dakota Access Pipeline paid $11.2 million in ND sales taxes and $12.7 million in ND property taxes from 2015-2018. Owner Energy Transfer Partners has donated $5.3 million to 11 state organizations, plus $15 million to help the state pay for costs associated with the DAPL protest. Construction generated 3,000 to 4,000 jobs which further benefited communities through goods and services purchased by construction personnel.
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November 19
Bismarck
November 21
Grand Forks
November 25
Bismarck
November 26
Bismarck
December 3
Bismarck
December 3 - 4
Fargo
December 10
Bismarck
December 10
Bismarck
December 18
Watford City
January 15
Minot
January 29 - 31
Fargo
February 24 - 27
Bismarck
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Oil prices and rig count
November 15, 2019
WTI Crude: $57.72
Brent Crude: $63.30
Natural Gas: $2.69
North Dakota Active Rigs: 57 (up 2)
11/15/2018
-- 62 rigs
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Geoff Simon
Editor/Executive Director
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