July 19, 2019 - Cookfest Time!
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Hundreds of people lined Main Street in Bowman this week for one of the ND Petroleum Council's annual Cookfests to celebrate the industry. The other event was held in Van Hook.
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ND Seeks to Overturn Washington State Rail Law
Attorney General Wayne Stenehjem announced this week that North Dakota has filed a petition with the Pipeline and Hazardous Materials Safety Administration (PHMSA) seeking to overturn a recently passed Washington State law.
Federal law authorizes PHMSA to establish a uniform set of national regulations ensuring the safe transportation of hazardous materials, including those transported by rail. It includes express preemption language, which means PHMSA has the authority to declare a state law is in conflict with federal standards.
The new Washington state law, scheduled to go into effect on July 28, prohibits oil from being unloaded in the state from rail cars that have a vapor pressure greater than 9 psi, which is significantly lower than accepted national standards. This new standard would make it uneconomical for oil from the Bakken region in North Dakota and Montana to be unloaded at Washington state refineries.
North Dakota maintains that Washington’s attempt to re-classify crude oil based on its vapor pressure is inconsistent with federal standards. Moreover, it sets the precedent that one state with access to particular transportation routes can restrict another state’s ability to move its own natural resources across state borders.
Stenehjem said coastal states should not be able to dictate what goods can move from one state to the next or be exported.
"While oil is the issue in this case, it's reasonable to expect that other commodities could be next – like soybeans, GMO crops, meat from animals that are not free range – you name it,” he said.
The state of Montana has joined North Dakota’s petition.
Click
here to read the petition.
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North Dakota Crude Held Steady in May
Gas Contraints Limiting Production Numbers
North Dakota's oil industry maintained a steady pace in the month of May, with producers pumping an average of just under 1.4 million barrels per day.
At a news conference this week, Department of Mineral Resources Director Lynn Helms said several factors are limiting production growth, particularly the lack of capacity to capture natural gas associated with oil production.
Click
here to listen to Helms' comments.
For the first time in several months, natural gas production did not set a new record although producers did set an all-time high mark for gas capture. Helms said producers captured an average of 2.29 billion cubic feet of gas per day, edging out the previous mark set in April. That amounts to an 81 percent capture rate, falling well short of the current 88% target.
Helms said $4 billion in new gas capture and processing infrastructure will come on line this fall, which should bring producers back into compliance with the capture target. He said the most significant project is ONEOK's Elk Creek Pipeline, that will transport up to 240,000 barrels per day of natural gas liquids.
Click
here to listen to Helms' comments.
Helms said several other companies are investing in expanding gas processing capacity.
Click
here to listen to Helms' comments.
May production totaled 43,191,793 barrels, or 1,393,284 bbl/day. Click
here to read the full Director's Cut.
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Denbury Discusses State's EOR Potential
Officials from Denbury Resources were in Bowman County this week to visit with local residents about the company's plans for a CO2 enhanced oil recovery project in the region.
Greg Schnacke, Denbury's director of government relations, provided an update on the company's plans during an information session that preceded the ND Petroleum Council's Cookfest in the community this week. Schnacke said there have been delays in the project, but plans are in place to begin piping carbon dioxide to the county within 18 months.
Click
here to listen to Schnacke's comments.
Schnacke said it's estimated the entire Cedar Creek Anticline, most of which is in southeastern Montana, could produce an additional 400 million barrels of oil using enhanced recovery techniques. He said that represents a lot of economic opportunity not just for his company, but for other businesses in the region.
Click
here to listen to Schnacke's comments.
Click
here to read a 2018 Denbury Resources news release outlining its plans for the formation.
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Work Set to Begin on Williams Co. Wind Farm
With its final easements in place, Tradewind Energy plans to begin construction in September of its 300-megawatt Aurora Wind Farm in northeastern Williams County.
The state Land Board granted its approval this week for the placement of three to six wind turbines on school trust lands in the project area. In all, the project will have up to 121 turbines spanning 44,000 acres in an area centered five miles northwest of Tioga. Turbines will range in size from 2.0 to 4.8 MW.
The project also includes construction of a 20-mile 345 KV transmission line to connect the wind farm to the grid. The line will terminate at Basin Electric Power Cooperative's Tande Substation east of Tioga in Mountrail County. The estimated cost of the entire project is $385 million.
The wind farm's siting permit was approved by the Public Service Commission at a meeting on May 7. In her remarks during the meeting, PSC Chair Julie Fedorchak said unlike the Burke County wind farm the PSC recently rejected, the Aurora project developers tried to avoid areas that would disturb wildlife.
Click
here to listen to Fedorchak's comments.
PSC Commissioner Randy Christmann voted to approve the wind farm, but did object to the fact the wind farm covers such a large area.
Click
here to listen to Christmann's comments.
Tradwind Energy's application said it expects the wind farm will be operational by the end of 2020. Click
here to see a detailed map of the project area. Click
here to read the PSC's Findings of Fact and Conclusions of Law.
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Gov Tours Tornado Damage in Mott
Gov. Doug Burgum surveyed tornado damage in Mott this week, and commended local leaders and the community for their preparation and response.
An EF-1 tornado with wind speeds of up to 105 mph touched down north of Mott at 9:24 p.m. last Friday, cutting a path about 2.8 miles long and stretching up to 200 yards wide, according to National Weather Service estimates. The twister flung debris into homes and peeled off roofs, flipped campers, uprooted trees and leveled the 4-H building at the Hettinger County Fairgrounds, with over 400 exhibits inside for the Hettinger County Fair.
Burgum said warning sirens were sounded at 9:00 p.m., and local emergency responders did a remarkable job providing ample warning to the community.
Click
here to listen to Burgum's comments.
Burgum toured the tornado-damaged areas with ND Homeland Security Director Cody Schulz, Mott Mayor and Fire Chief Troy Mosbrucker, Hettinger County Emergency Manager Tracy Kruger, Hettinger County Sheriff Sarah Warner and District 31 legislators Sen. Don Schaible, Rep. Karen Rohr and Rep. Jim Schmidt, among others.
The ND Highway Patrol and ND Department of Transportation both assisted with traffic control and cleanup after the storm. Burgum was also told that people at the fairgrounds couldn’t hear the tornado sirens in town, and he said the state will work with the city to extend siren coverage.
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Taxable Sales & Purchases Up Nearly 10%
Williston Leading the Pack Among Large Cities
Garrison, Stanley and Watford City Also Saw Big Jumps
North Dakota Tax Commissioner Ryan Rauschenberger reported the state's taxable sales for the first quarter of 2019 totaled $4.453 billion, a 9.67% increase over the same three months in 2018.
Three of the state’s six largest cities saw an increase in taxable sales and purchases for the first quarter, all of which are the western part of the state. Percent changes for the first quarter of 2019 (compared to the first quarter of 2018) for the top six largest cities in North Dakota were:
- Williston – Increase of 14.79%
- Dickinson – Increase of 11.69%
- Minot – Increase of 6.10%
- Bismarck – Decrease of 0.48%
- Fargo – Decrease of 0.61%
- Grand Forks – Decrease of 1.86%
Among the 50 largest cities in North Dakota, the highest percent increases for the first quarter of 2019 (compared to the first quarter of 2018) were:
- Garrison – Increase of 39.96%
- Stanley – Increase of 35.24%
- Wishek – Increase of 32.55%
- Watford City – Increase of 24.91%
- Grafton – Increase of 21.40%
Click
here to read the news release from the North Dakota Tax Department.
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Work on New Long X Bridge Begins Monday
Construction of the new Long X Bridge on Highway 85 south of Watford City will begin on Monday, July 22.
Construction consists of bridge replacement, wildlife crossing structure, grading, guardrail and incidentals. Motorists will continue to use the current Long X Bridge while the new bridge is being built.
During construction, speed limits will be reduced, and flaggers and a pilot car will be used during milling and paving operations. The project has an anticipated completion date in the summer of 2021.
For more information about construction projects and road conditions throughout North Dakota, call 511 from any type of phone or visit the
Travel Information Map on the NDDOT website.
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Innovative Education Summit Planned
The 2019 Governor's Summit on Innovative Education will be held August 14-15 at Jamestown High School.
The event provides an opportunity to listen, learn and grow along with teachers, students, administrators and community leaders in a discussion of the importance of innovation and the future of North Dakota's schools.
The two day agenda will continue the Innovative Education Summit's focus on innovative instruction, best practices to personalize learning, and other community-derived solutions to better prepare young people for life after high school. The agenda will also deliver a specific focus on behavioral health in an educational setting and opportunities for the behavioral health system and the education system to collaborate in a meaningful way.
Click
here to learn more or to register.
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Williston Airport Works Through Delays
XWA Still on Track for October Opening
Shipment issues with a cement supplier threatened to delay construction of Williston’s new airport, but support of city and state leadership resulted in an agreement to bring in 3,000 tons of cement per week which should keep the project on schedule.
Gov. Doug Burgum signed an executive order this week granting a waiver of hours of service requirements for drivers of commercial vehicles transporting cement to assist in the timely completion of infrastructure projects including the airport construction. The 30-day waiver will remain in effect through August 14.
”Even though there has been that delay, we are still tracking on schedule and all of our other projects are tracking on schedule,” said Ryan O’Rear, assistant airport director. “So, we should meet that October 10th opening date. The cement is still a challenge, but overall I think we are in good shape.”
Since the weekly shipments began, O’Rear said they have made progress and are now only about two lanes away from being finished with the runway.
Click
here for more information on the airport construction.
Click
here for an article from the Bismarck Tribune regarding Gov. Burgum's executive order.
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“Fill the Bus” Event Set for Dickinson
It’s hard to think about but we see it all over. “Back to school” preparations have already begun.
Whiting Oil and Gas and iHeart Media are asking the public's help to send local students back to school with the supplies they need. The second annual
“Fill the Bus” event is scheduled for Dickinson on Tuesday, July 23.
People who have school supplies to donate are asked to bring them to the Whiting Oil and Gas parking lot located at 528 21st St. W., Dickinson from 7:00 a.m. to 7:00 p.m. iHeart media will be doing live radio broadcasts from the location throughout the day.
Suggested school supplies include backpacks, notebooks, pencils, folders, scissors, Kleenex tissues, disinfectant wipes, crayons/markers, pencil box, glue/glue sticks and hand sanitizer. Monetary donations to purchase school supplies will also be accepted.
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UMary Offers "Work Smarter" Training
The University of Mary’s Workforce Development Program is offering a series of training sessions that will begin this month in Watford City.
Called “Work Smarter,” the three-part series focuses on creating smarter work habits that develop better organizational outcomes and greater personal satisfaction. The training will be offered in a bi-weekly format designed for employees at any career stage. The three sessions will engage participants in interactive experiences designed to improve communication, manage change and conflict, and develop effective writing and messaging strategies.
Cost per session is $350 and can be taken individually or as a series of three for $900. Lunch is included with each session.
Dates for the sessions:
- Session 1: Communicating at Work – Tuesday, July 30
- Session 2: Managing Change and Conflict While Building a Team – Tuesday, August 13
- Session 3: Effective Writing and Messaging Strategies – Tuesday, August 27
All sessions will be held at the University of Mary campus facilities at Watford City High School, located at 2209 Wolves Den Parkway, Suite 129A.
For more information or to register, click
here.
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ND Oil PAC Sporting Clays Event
The public is invited to join oil and gas industry professionals for the 2019 ND Oil PAC Sporting Clays event scheduled for Thursday, August 8, at Capital City Sporting Clays near Bismarck.
The event is limited to 150 people and is open to North Dakota Petroleum Council members and non-members. The event begins at 2:00 p.m. with a legislative review featuring highlights of the just-finished North Dakota legislative session. A rules meeting follows at 2:30 p.m. with the Sporting Clay shoot beginning at 3:00 p.m. The event concludes with a social from 5:00 to 6:00 p.m.
The entry fee is $100/person for NDPC members and $150/person for non-members. The fee includes ammunition. Click
here for detailed information about the event. Click
here to register and
here if you are interested in a sponsorship. For directions to Capital City Sporting Clays, click
here.
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WDEA Offering Energy Scholarships
The Western Dakota Energy Association will award five $1,000 scholarships this fall to students in an energy-related field at a North Dakota college, university or technical school.
WDEA President Gary Wilz said the association is offering the scholarships to help the industry and western communities meet the workforce challenges now being experienced with the surge in oil industry activity.
“We recognize that North Dakota will see benefits from higher oil prices only if the industry is able to attract the workforce it needs,” said Wilz, who is Superintendent of the Killdeer Public School District. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy industry.”
Funding for the scholarship program is generated by sponsorships of WDEA’s annual meeting, as well as royalties from advertising in Basin Bits magazine.
Click
here to learn more about the selection criteria and how to apply.
Click
here to view or download an application form.
The application deadline is August 31, 2019. Scholarships will be awarded in September.
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Quick Connect
- Persistent heavy rain, oilfield truck traffic beat down county roads -- KX News
- Killdeer School Board still reviewing options for new school -- Dickinson Press
- Belfield school to do nearly $1M worth of improvements to fix aging facility -- Dickinson Press
- North Dakota Supreme Court sides with state in mineral royalty dispute -- Bismarck Tribune
- Mineral owners urged to unite in new group to share info and collaborate -- Tioga Tribune
- Update on Minot area flood protection plan: Some parts behind schedule -- KFYR-TV
- Groups appeal decision over refinery near Theodore Roosevelt National Park -- Fargo Forum
- Navajo man sues ND law enforcement over alleged pipeline protest injuries -- Bismarck Tribune
- Legislator who backed bill now says law limiting state auditor was ‘mistake’ -- Associated Press
- As Legacy Fund grows, some wish North Dakota's income tax would go away -- Fargo Forum
- Oil patch grapples with how to address lightning strikes at saltwater sites -- Bismarck Tribune
- Technical Air Reserve unit comes to spray for mosquitoes in western North Dakota -- KFYR-TV
- District 8 board selects member to replace woman after theft accusation -- Williston Herald
- Residents doubtful about richness but have best chance at 'American Dream' -- Fargo Forum
- NDDES holds Missouri River chemical spill training scenario with other agencies -- KFYR-TV
- Williams County pipeline leak spills saltwater into Missouri River tributary -- Bismarck Tribune
- Gas capture issues continue to prevent ND from setting oil production records -- S&P Global
- Natural gas leads clean electricity production with emissions now at mid-1980s levels -- The Hill
- Fracking for oil and natural gas in California is about to get a lot more difficult -- Oil Price.com
- Cost of transitioning to 100-percent renewable energy in the trillions of dollars -- IER
- Opinion: EPA's new Affordable Clean Energy rule a wind for common sense -- RealClearEnergy
- Group demands NASA remove false 97 percent consensus global warming claim -- PJ Media
- Watford City voted the nicest place in North Dakota by Reader's Digest editors -- KXMB-TV
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Factoid of the Week
The state of North Dakota is projected to collect about $4.85 billion in oil tax revenue in the coming biennium. Doing the math in round numbers, that's $200 million per month, about $7 million per day, $300,000 per hour, $5,000 per minute or about $80.00 per second!
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July 22
Bismarck
July 23
Bismarck
July 26
Bismarck
July 30
Bismarck
July 30
Bismarck
July 31
Bismarck
August 1
Bismarck
August 14
Bismarck
August 14-15
Jamestown
August 25-27
Medora
August 28
Medora
September 11
Williston
September 17-19
Watford City
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Oil prices and rig count
July 19, 2019
WTI Crude: $55.63
Brent Crude: $62.47
Natural Gas: $2.25
North Dakota Active Rigs: 55 (down 1)
7/19/2018
-- 68 rigs
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Geoff Simon
Editor/Executive Director
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