NORTH DAKOTA ASSOCIATION OF OIL AND GAS PRODUCING COUNTIES
NDAOGPC Newsletter
September 20, 2013 |
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|  The North Dakota Association of Oil and Gas Producing Counties (NDAOGPC) is the trusted and unified voice for the betterment of the citizens of North Dakota and the membership of the North Dakota Association of Oil and Gas Producing Counties. Through this newsletter we strive to provide accurate, up-to-date information surrounding the energy activities throughout the North Dakota energy producing counties. |
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Reminder: Uniform County Truck Permit Committee to Meet in October
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NDAOGPC County Commissioners, County Sheriffs, Road Superintendents/Engineers:
The fall meeting of the NDAOGPC Uniform County Truck Permit Committee will be held in conjunction with the ND Association of Counties' Annual Conference on Monday, October 7, 2013 from 5:30 p.m. to 6:15 p.m. Central Time. The meeting will be held in the Heart Room of the Ramkota Hotel in Bismarck, ND.
Also making a report at the Uniform County Truck Permit Committee meeting will be Bill Anderson with NDLTAP who will talk about county road best practices he's identified. Anderson's work was part of a contract negotiated between LTAP and the NDAOGPC to bring value to county road departments in the west.
If you have a topic you would like added to the agenda, please let Permit System Operator Janet Sanford know. She may be reached via email at janet@ndteamworks.com.
Hope to see you there!
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ND Petroleum Council Annual Meeting Takes Bakken to the East
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Whitney Page, one of the NDAOGPC's 2013 scholarship winners and pictured right, visited the NDAOGPC exhibition booth during the NDPC Annual Meeting in Grand Forks. NDAOGPC Deputy Executive Director Brady Pelton congratulated her on her successful progress toward a degree in petroleum engineering.
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Oil and gas industry leaders from across the nation gathered in Grand Forks this week for the 32nd Annual Meeting of the ND Petroleum Council. The three-day event was held at the Alerus Center, which offered a large venue for the many attendees. This is the first year the NDPC's Annual Meeting has been held in the east. Bakken education sessions were held in the afternoon of the first day, with NDPC President Ron Ness, Kathy Neset of Neset Consulting Service, and ND Dept. of Mineral Resources Director Lynn Helms sharing information with the public on North Dakota's unprecedented energy industry growth.
Monday's Members Only Showcase allowed local students, public officials, and citizens to enjoy the many exhibits displayed by oil and gas-related organizations. Over 125 organizations exhibited at the Monday event, which was offered to the public free of charge. Attendees also enjoyed a community BBQ, courtesy of industry sponsors. An estimated 2,500 people visited the free event.
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ND Representative Todd Porter accepts his NDPC Outstanding Service Award at the NDPC Annual Meeting while NDPC President Ron Ness and NDPC Chairman Terry Kovacevich look on.
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On Tuesday, September 17, the meeting section of the event kicked off with welcoming addresses from U.S. Congressman Kevin Cramer and Grand Forks City Councilman Hal Gershman. Cramer pointed out that certain groups are currently engaged in overusing the Endangered Species Act, a fact that he said needs to be fought head on. Defense, he said, will only lead to defeat in the end.
Lynn Helms, Director of the ND Dept. of Mineral Resources, also presented information on what his office is seeing in terms of oil play activity throughout the state. He said that North Dakota has reached its "cruising altitude" in terms of the number of drilling rigs operating, with at least 20 years of drilling left if the pace continues. Helms also talked about the goals that his office and the ND Industrial Commission have regarding flaring of natural gas: Reduce flaring volume, reduce the number of wells flaring, and reduce the duration of flaring from wells. He asked for help from the industry to accomplish those goals. The state, he said, has seen a decrease in the total percentage of flaring, which is currently at about 28%. The volume, though, is still high.
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Marathon Oil's Terry Kovacevich and company employees present their contribution to the Housing Incentive Fund to Acting Housing Finance Agency Director Jolene Kline.
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MBI Energy Services President and CEO Jim Arthaud presents his company's contribution to the Housing Incentive Fund.
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Also speaking at the NDPC Annual Meeting was ND Governor Jack Dalrymple, who talked about how far our state has come in terms of addressing the impacts of oil and gas development and how the challenges of such large growth will need to continue to be addressed. Dalrymple noted impacts on EMS services and public safety, water supply, state and local roads, housing, and education and training of the state's workforce as "common challenges". He also spoke on how the industry is helping with those challenges, specifically through industry participation in the Housing Incentive Fund program. The Housing Incentive Fund, or HIF, works in part as an income tax credit where an entity may donate money to the fund and receive a dollar for dollar income tax credit for that amount. Dalrymple cited two recent industry contributions to the fund, a $250,000 contribution from MBI Energy Services and a $500,000 contribution from Marathon Oil. You can check out the full stories of both MBI Energy Services and Marathon Oil by clicking the links.
Annual meeting attendees were also treated to a keynote address by legendary former Notre Dame football coach Lou Holtz, who spoke on success and its simplicity. Holtz applauded the oil and gas industry's actions toward making the United States more energy independent and economically successful. Click here to view the WDAZ news story on Holtz and the NDPC Annual Meeting.
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Alaska Oil and Gas Congress Shares Information
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Alaska's political leaders told conferees at the 9th Annual Oil and Gas Congress in Anchorage, AK that Alaskans yearn for lower energy prices in their own state but are conflicted on which gas pipeline project to put their support behind.
A legislative scandal in 2008 damaged public trust in the oil industry and the state. The Alaska state legislators narrowly passed an oil tax incentive with hopes that oil tax revenues would rise over the long term. The legislation has been referred to the voters and creates uncertainty until August 2014 when the people will vote on it.
The original plan was to bring Alaska's oil production back to 1 million barrels a day in five years. The State of Alaska and the federal government own the minerals, but permits must go through a lengthy process compared to North Dakota.
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Pictured from left to right are John Coghill, Alaska State Senate Majority Leader; NDAOGPC Executive Director Vicky Steiner; Charlotte Bower, Mayor of North Slope Borough; and Alaska State House of Representatives Speaker of the House Mike Chenaualt.
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Governor Sean Parnell said natural gas, along with oil, is critical to Alaska's economic future.
U.S. Senator Mark Begich (D-AK) told the group that he's waiting for Alaskans to make up their mind on a pipeline project so that he can get it moved forward in Congress. He pointedly advised to pick a project and quit debating it.
Dave Harbour, Northern Gas Pipelines, said the tension in the state over energy pipeline projects is "palpable" because of the obvious decline in Alaska's production. Rising oil prices have sustained a higher revenue stream, but production is declining each year. North Dakota Bakken production from four counties has outpaced the entire state of Alaska. Alaska is twice the size of Texas with tremendous natural resources. Residents of Fairbanks are seeing increasing costs for natural gas, so their legislators are actively working to include that city in plans for new gas pipelines in hopes it will be more affordable.
Japanese consular Akira Iwanade said after the Tsunami and nuclear incident, the Japanese people's public demand is to move away from nuclear and move to natural gas. "I hope the relationship will be strengthened," between Japan and Alaska, he said to Alaska's oil industry. Russia is currently drilling off-shore oil and gas wells about 50 miles from the U.S. ocean border, but there are none in the water on the U.S. Alaska side. Natural gas and oil resources remain untapped off shore and inland Alaska as other states develop their resources.
Dru Pearce, Senior Policy Advisor for Crowell & Moring LLP, said lack of access is Alaska's problem. Vicky Steiner, NDAOGPC Executive Director, talked about the success of the ND Bakken, the rapid change, the volume of investment in infrastructure and the counties' challenges moving forward.
A former Executive Director of the Texas Railroad Commission and geologist, John Tintera, advised Alaska to have clear regulation for the industry, transparency and fairness in compliance. Tintera said the one "do over" from his work ten years ago was not recognizing the surface owner vs. mineral estate issue. He said he wishes that the surface owner in Texas could have shared in the value of the well beyond surface damages because the wells are on their land for 30 years. There are all kinds of workers coming and going off their land for many years beyond the surface payment.
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NDAOGPC Annual Meeting Agenda
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 Annual Meeting
Thursday, September 26, 2013
8:00 a.m. - 4:30 p.m. MDT
Ramada Grand Dakota - Dickinson, ND
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Agenda
7:00-9:00 a.m. Annual Meeting Registration
7:00-8:00 a.m. Breakfast
8:00 a.m. Welcome
Brad Bekkedahl, Williston City Commission - Emcee
Dennis Johnson, Dickinson City Commission President - Invited
Senator Rich Wardner, District 37 Senator and Senate Majority Leader
Guest Speakers
8:30 a.m. Regional Emergency Services Coverage Study Results
Joel Quanbeck and Mike Schnetzer
9:00 a.m. ND Oil and Gas Update - Via video
Lynn Helms, Director of ND Department of Mineral Resources
9:30 a.m. Distribution of the 5% Oil and Gas Gross Production Tax
Kelly Schmidt, North Dakota State Treasurer
10:20 a.m. Break
11:00 a.m. Outlook from the Industry
Jim Arthaud - Moderator
Jack Ekstrom, Whiting Petroleum
Terry Kovacevich, Marathon Oil
Blu Hulsey, Continental Resources
Noon Lunch Program
Distinguished Service Awards
Reflections of President Dan Brosz
Guest Speakers (Cont'd)
1:00 p.m. Opportunities for Affordable Housing
Jolene Kline, Acting Director of the ND Housing Finance Agency
2:00 p.m. ND Department of Transportation Update
Wayde Swenson, ND Dept. of Transportation Director of Operations
2:30 p.m. Uniform County Truck Permit System Update
Janet Sanford, Truck Permit System Administrator
3:00 p.m. Business Meeting
Approval of Last Meeting's Minutes
Treasurer's Report
Consideration of Resolutions
Consideration of Bylaws Amendment
Nominations and Election of Committees
Committee Roundtable Discussions
Executive Committee Elections
4:30 p.m. Adjournment
The Executive Committee will meet immediately following adjournment for a brief orientation.
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NDAOGPC Annual Meeting Online Registration Available
| Registration for the ND Association of Oil and Gas Producing Counties' 2013 Annual Meeting is still available online at the Association website, http://www.ndenergy.org/AnnualMeeting.aspx.
This year's Annual Meeting will take place next week on Thursday, September 26, 2013 at the Ramada Grand Dakota Lodge in Dickinson, ND.
Speaking this year will be State Treasurer Kelly Schmidt who will give an overview of oil and gas Gross Production Tax distributions and Joel Quanbeck and Mike Schnetzer who will share what was found in the NDAOGPC-commissioned study of emergency service coverage in western North Dakota.
Additionally, we'll hear from Dept. of Mineral Resources Director Lynn Helms, and owner/CEO of MBI Energy Services Jim Arthaud will lead a panel of several oil and gas industry representatives in discussions on the current trends in oil and gas recovery. Terry Kovacevich, Marathon Oil; Jack Ekstrom, Whiting Petroleum; and Blu Hulsey, Continental Resources, have agreed to participate on the panel.
Members will also have the opportunity to elect county, city, and school district committee members as well as the representatives on the Executive Committee. Current Executive Committee members up for reelection are Mountrail County Commissioner Greg Boschee and City Engineer for the City of Bowman, Dan Brosz. Bowman County School District Superintendent Tony Duletski will be leaving the Executive Committee after nine years of service. Over his years with the Association, Tony has served as President, and we would like to thank him for his contribution to the members of the ND Association of Oil and Gas Producing Counties. His replacement on the Executive Committee will also be elected.
We look forward to seeing you at this year's Annual Meeting in Dickinson!
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Planning Webinar to Offer Learning Opportunity on Zoning Enforcement
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 Vision West ND Zoning Enforcement Webinar
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Upcoming Events
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September 25, 2013
The September meeting of the Vision West ND Consortium will be held on Wednesday, September 25. The meeting will begin at 11:00 AM MDT and end no later than 3:00 PM MDT.
During this meeting, Consortium members and all people interested in participating in the direction of the Vision West ND regional plan will do so at this meeting. This is the last time we will have the opportunity to provide that direction before the draft plan is completed and presented in late October. Here, we will refine the issues, help prioritize recommendations for the selected strategies, determine the overall message to the Legislature, and set the overall tone for the plan.
We believe that this may be the most important meeting of our regional effort. If you have not already done so, please notify Deb Nelson at deb@dlnconsulting.com no later than the end of business today if you will plan to attend the meeting . Consortium members, if you cannot attend, it will be important to name a proxy.
September 26, 2013
Be sure to register for the 2013 NDAOGPC Annual Meeting set for Thursday, September 26, 2013 at the Ramada Grand Dakota in Dickinson, ND. Online registration is still available at http://www.ndenergy.org/AnnualMeeting.aspx. Don't miss this exciting opportunity to hear from some of the top authorities on issues like housing, oil and gas Gross Production Tax distribution, western ND EMS coverage, regional state road projects, and updates from the oil and gas industry! The meeting is scheduled to begin with breakfast at 7:00 AM MDT with the meeting itself starting at 8:00 AM MDT. We look forward to seeing you next Thursday! September 30, 2013 EMS and fire protection district Energy Impact Grant applications are due in to the ND Energy Infrastructure and Impact Office. Requests for funding to improve readiness, quality, and responsiveness of EMS and fire response teams being impacted by oil and gas development will be considered. Applications should be for projects to improve equipment; facilities; safety; planning efforts to develop or formalize county/regional mutual aid/joint powers agreements; oil industry specific training; leadership development; and obtaining assets to improve emergency response.
The application forms and lists of required supporting documentation are on the energy impact office web page: www.nd.gov/energyimpact. This Internet site contains both a PDF and MS Word application form that can be completed on-screen. Please seek the assistance of a library, school or extension office if you do not have computer and Internet access to retrieve this information. Completed applications and supporting materials may be e-mailed to energyimpact@nd.gov. They may also be sent to the following address: 1707 North 9th Street PO Box 5523 Bismarck, ND 58506-5523 Grant applications must be postmarked by September 30, 2013. Applications submitted by e-mail will be accepted until 11:59 p.m. Central Time on September 30, 2013.
October 6-8, 2013Online registration is open for the ND Association of Counties Annual Conference, scheduled for October 6-8 at the Ramkota Hotel in Bismarck. Visit the NDACo website at www.ndaco.org for more information and to register.
May 20-22, 2014
The 22nd Annual Williston Basin Petroleum Conference will be held May 20-22, 2014 at the Bismarck Civic Center in Bismarck, ND. There have already been over 200 hotel rooms reserved for this conference. We recommend booking the hotel rooms that you need now. Conference registration opens on January 29, 2014.
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Please take your time to review all materials and links provided for your convenience. We will continue to provide you up-to-date information on upcoming events and news happening in North Dakota's oil and gas producing counties!
Sincerely,
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Vicky Steiner
Executive Director
Brady Pelton
Deputy Executive Director
ND Assoc. of Oil & Gas Producing Counties
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