NDAOGPC
North Dakota Association of Oil and Gas Producing Counties
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Basin Bits Magazine

This semiannual magazine, published in the spring and fall, is the official publication of the ND Association of Oil and Gas Producing Counties.

To sign up to receive a copy of the magazine, please click here.

To read the latest Basin Bits edition via PDF, click this link.  
Uniform County Truck Permit System

This is a county road permit system for over-weight or over-width vehicles on county roads. Since 1986, the NDAOGPC has operated the Uniform County Truck Permit program as a service to counties and the petroleum industry.

For more information or to get permits, click here.

For the latest information on County Road Restrictions, click this link.
December 13, 2013
 

Well, it appears that the cold wind chill temps may be temporarily on hold...at least for a few days! We hope you enjoy the latest edition of News from the NDAOGPC. Your feedback is always appreciated!
Legislative Update: Interim Committee Info Points to Continued Economic Strength
Two North Dakota interim committees met this week in Bismarck. Some of their discussions centered on the financial outlook of the state and how the status of the 2013-2015 budget is looking five months into the two year stretch.

Budget Section Meeting 12-11-13
Pam Sharp, State OMB Director, shares an update on the status of the state's General Fund with Budget Section members.
At the December 11 meeting of the Budget Section, Office of Management and Budget Director Pam Sharp gave an update on the status of the General Fund. As of October 31, 2013, General Fund revenues and transfers are 10.8% ahead of projections made in the legislative forecast. The balance of the Legacy Fund at the end of October was nearly $1.5 billion. Oil and gas Gross Production Tax collections for the beginning of the 2013-15 biennium to October 31, 2013 were $96.9 million, although Director Sharp did not have any details for the Budget Section on how that money was allocated.

More details on those allocations were made during the interim Government Finance Committee meeting held yesterday. Legislative Council staff shared a packet of memorandums on oil and gas tax collections and distributions. Those memos, available at http://www.legis.nd.gov/related-publications
, include spreadsheets detailing the actual collections and distributions of oil and gas taxes compared to the forecasted collections/distributions. Also included in the memos is a breakdown of how much oil and gas Gross Production Tax distribution money political subdivisions have received, though it is not detailed for every political subdivision. Legislative Council staff said that the memos would be updated on a monthly basis.

ND Dept. of Mineral Resources Director Lynn Helms
Also sharing information with the Government Finance Committee was ND Dept. of Mineral Resources Director Lynn Helms. Helms gave an update on the status of oil and gas development in the state. As a point of reference to the state's development progress, Helms said, "We're at mile 50 of the Daytona 500." At the end of October, there were 5,939 unconventional wells in the state. In 2013, there were approximately 2,700 new well permits issued.
Many of those wells will be located on existing drilling pads, leading to a reduction in the footprint made on the landscape.

In terms of 2014 oil and gas industry activity, there have been 1,552 permits to drill approved by the ND Industrial Commission. This, according to Helms, is "plenty of inventory" to keep industry members drilling with 185-195 rigs for nine to twelve months into the future. Helms also noted that there are currently about 460 wells that are drilled but waiting for hydraulic fracturing. Over the next five years, Helms said that 1,012 orders have been approved for 5,247 additional wells.

In terms of how oil will affect the ND economy in the future, Helms said
the price of ND's light sweet Bakken crude is about 5% below the forecasted level used by the state legislature in the state budgeting process. However, the state's oil production is currently about 10% above the forecasted level, leading to an increased amount of oil and gas tax revenue received and distributed by the state.

For more information:
Oil drilling expected to stay strong - Nick Smith, Bismarck Tribune
Regulator: North Dakota oil rail shipments expected to spike -
James MacPherson, Associated Press
Webinar Explores Idea of Regional Trust Fund for Western ND
Last week Thursday, December 5, a webinar was held that focused on providing information on a potential regional trust fund for western North Dakota. Dr. Dick Gardner presented to webinar attendees on how similar funds have worked in places like Norway and Minnesota. Gardner talked about how such a regional trust could act as an "insurance policy" to manage the regions risk of developing its various infrastructure pieces so rapidly. The regional trust fund, Gardner said, could be used by local western ND governments to finance the many development projects needed in the region to accommodate a growing population base for the long term. "Costs are lumpy", he said, in reference to the locally incurred expenses of infrastructure growth and enhancement. The costs to add development up to existing capacity are often not significant. However, when expansion of that capacity is needed, as is the case throughout western North Dakota, the costs can be quite high.

Much of the webinar described ways that a Western North Dakota Regional Legacy Trust might be established and govern itself. The ideas that were presented were not definitive, but offered as a starting point for discussion. Gardner referenced a draft white paper that was made available at the November Vision West ND Federal Partners Roundtable in Dickinson. That white paper provides details for policy consideration on the recommendation to develop a regional trust fund for western ND counties and is available by clicking this link.

The webinar closed with discussion on how North Dakota might fund such a regional legacy trust and how those funds could flow through the trust to the various stakeholders to address strategic purposes for sustaining the region. You may view the webinar presented by Gardner by clicking the link or the webinar's title picture above. Bryan Horwath with the Dickinson Press also wrote a story on the webinar and Dr. Gardner's recommendations for a regional trust fund. You can view that coverage here.
Potential Gas Drilling Planned in Emmons and McIntosh Counties

"A multinational energy company has acquired four permits to drill for shallow gas in Emmons and McIntosh counties southeast of Bismarck.

 

Strata-X Energy says it will sink wells into the Niobrara Formation in North Dakota in an area it's calling "Sleeping Giant Gas Project."

 

"The Niobrara Formation in this area has been overlooked despite gas shows and small flares being reported," the company said on its website.

 

Lynn Helms, director of the Department of Natural Resources Oil and Gas Division, made a special announcement of the permits Wednesday because he said it's rare to see permits issued so far east of the Highway 83 division."

 

For more information, check out the story by the Bismarck Tribune's Lauren Donovan.  

Four Oil Patch Cities Rank Within Top 10 of Best Communities for Young Families
The western ND cities of Watford City, Stanley, Bottineau and Beulah were among the top ten cities in the state identified by finance company Nerdwallet as the best communities for young families looking for a place to live. The next five top cities included the cities of Dickinson, Bowman and Hazen. Congratulations to the Association member cities for their recognition on being great places for young families to live, work and play!

For more information, check out Lauren Donovan's story in the Bismarck Tribune.
Upcoming Events

January 14, 2014

The January meeting of the ND Association of Oil and Gas Producing Counties Executive Committee will be held at 10:00am CST on Tuesday, January 14, 2013 in Bismarck, ND.

 

February 10-12, 2014

The Bakken-Three Forks Shale Oil Innovation Conference & Expo will be held February 10-12 at the Alerus Center in Grand Forks, ND. More information on the event is available through this link

 

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.

September 18, 2014
Be sure to mark your calendars for the 2014 Annual Meeting of the ND Association of Oil and Gas Producing Counties to be held Thursday, September 18, 2014 at the Grand Williston Hotel in Williston, ND. Information on hotel room blocks, the registration process, and sponsorship opportunities will be shared as we get closer to the event.
Oil and Gas Stats

 

ND Petroleum Council Logo

WTI Crude: $97.06

Brent Crude: $108.42

Natural Gas: $4.38

 

From the ND Petroleum Council's News Clips
for December 13, 2013.
Please take your time to review all materials and links provided for your convenience. We at the ND Association of Oil and Gas Producing Counties 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,

Vicky Steiner
Executive Director

Brady Pelton
Deputy Executive Director

ND Association of Oil & Gas Producing Counties 
NDAOGPC | 701-751-3597 | www.ndenergy.org

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Bismarck, ND 58501

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