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North Dakota Association of Oil and Gas Producing Counties
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Stay Connected
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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.
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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.
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 Thank you for your continued interest in the activity of the ND Association of Oil and Gas Producing Counties.
We offer insight on the energy issues of the state and their effects on the communities in western North Dakota.
We hope that you will find this week's News From the NDAOGPC as a valuable source of information.
Enjoy your weekend!
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ND Industrial Commission Discusses Extraordinary Places, Rapid Growth Loans, and Flaring Task Force Results
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The North Dakota Industrial Commission, made up of the state's Governor Jack Dalrymple, Attorney General Wayne Stenehjem, and Agriculture Commissioner Doug Goehring, met Wednesday, January 29.
Several key items were on the agenda, including discussion of a drilling permit policy related to "places of extraordinary significance", sharing of a flaring task force report, and consideration of a Bank of ND loan program for critical needs in rapid growth communities. More details on these items are shared below.
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Places of Extraordinary Significance Draft Policy | |
ND Industrial Commission members (from left to right), Agriculture Commissioner Doug Goehring, Governor Jack Dalrymple, and Attorney General Wayne Stenehjem, discuss the proposed policy on drilling permits. Photo courtesy of Dale Wetzel, Great Plains Examiner.
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One of the major NDIC discussion items of the day focused on a policy that was proposed by Attorney General Stenehjem related to permitting near "places of extraordinary significance". Originally proposed as an administrative rule, the Commission agreed at a separate meeting on January 22 to turn it into an internal NDIC policy.
The most current policy draft, available on the NDIC website or directly by clicking this link, gives special protections to some areas in western ND for reasons that include historical and cultural value. Governor Dalrymple opened discussion on the policy draft by noting that his office has received hundreds of comments since the proposal was first released. Because of the many changes the proposal has gone through since its inception, Commission members noted that the public needs to understand what the current policy draft means. To that end, the Commission voted unanimously for an "open comment period" on the proposed policy draft that will allow comments to be submitted until prior to the Commission's next meeting tentatively set for March 3. Included in that motion was the creation of a "Frequently Asked Questions" sheet that will outline just what the policy does and does not do. That FAQ sheet is expected to be made available shortly. Instructions for commenting on the proposed policy are listed on the Industrial Commission website at http://www.nd.gov/ndic/DMR.htm. For more information
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Rapid Growth Communities Loan Program
Another item discussed at the NDIC meeting was consideration of a "Critical Needs for Rapid Growth Communities Loan Program". The loan program, which was approved unanimously by the Commission, will be used to provide a direct loan to rapidly growing political subdivisions that are receiving gross production tax revenue and experiencing critical financial needs. According to a memo to the Industrial Commission from Band of ND President Eric Hardmeyer, accessible here, political subdivision facing rapid growth will be "encouraged to pursue all other available State financing alternatives prior to approaching BND." The maximum loan amount to political subdivisions applying for these low interest loans was proposed to not exceed the available revenue sources that can be pledged over a 10 year period, minus the estimated interest costs. The details of this loan program will be worked out by the BND in the next month and a half, according to Hardmeyer.
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Flaring Task Force Results
 Results of the ND Petroleum Council's Flaring Task Force were also shared with Industrial Commission members during their Wednesday meeting. The task force, which began its work in September of 2013, identified that the industry can potentially increase natural gas capture to 85% within two years, 90% in six years, and could capture up to 95% of gas with full engagement from the NDIC, state agencies, the Legislature, Three Affiliated Tribes, landowners and oil and gas companies.
 The task force outlined how these capture targets can be met and presented self-prescribed practices the industry will implement to increase transparency and accountability when developing the state's natural resources. These reductions are forecasted primarily to come from a combination of enhanced construction of both gathering pipelines and natural gas processing plants along w ith implementation of the operational recommendations from the task force.
"Individual companies have come together to present a comprehensive plan that will help reduce flaring from current levels even as oil and gas production significantly increases," said NDPC President Ron Ness.
Recommendations presented by the Task Force include:
Gas Capture Plans (GCP) submitted by upstream (producers) and midstream companies (natural gas processors and gatherers) that will regulate currently flaring wells and future new wells. This directive will require operators to create a plan prior to filing for a drilling permit, rather than providing this information after a year of production. Each GCP will include a location of the well and closest pipeline and processing plant; the system capacity of gathering and transport gas lines; the volume of gas flowing from multi-well pads; and, a time period for connection.
Regulatory consequences for failure to comply. A failure to submit a GCP as prescribed by the industry may result in a denial or suspension of new drilling permits, while existing wells may be required to restrict production until under compliance. If goals are not met for a well as prescribed by a GCP, companies may need to restrict production or flowback to meet available gas gathering capacity. Extensions will be available for circumstances beyond control, including inclement weather, plant construction, power outages, and right of way disputes. Currently, wells may flare for one year from production date before a producer must begin to pay royalties and taxes, cap the well, or connect it to a gathering line, electrical generator or other equipment with value-added purposes. Companies may apply for extensions under current regulations, but there are no requirements to develop plans to capture.
Policies and legislation to enhance Right of Way (ROW) access. Pipeline infrastructure is crucial in capturing natural gas, and inability to obtain right of ways is a primary cause of natural gas flaring. Easements may take 180 days or more to obtain, which is the period that a well is producing at its highest rate. In some cases, landowners will not grant easements at all. The industry recommends that a ROW Task Force be formed to review potential legislation to improve ROW access to reduce flaring. The task force would include the North Dakota Pipeline Authority (NDPA), the State Energy Impact Coordinator, county leaders, landowner groups and industry members, and would be headed up by the Attorney General. Capturing 90 percent of natural gas or more would be incumbent upon meaningful solutions to resolve ROW issues and challenges on the Fort Berthold Indian Reservation.
Support infrastructure and technology. The industry recommends that the state assist and support new technologies and the rapid build out of pipeline and electrical transmission infrastructure by providing property tax credits, production tax credits and low interest loans for pipelines and electric transmission; incentives for value-added ventures, such as LNG, CNG, petrochemicals, and fertilizers; and, increased funding for the Oil & Gas Research Council to focus on remote capture technology and value-added markets.
Pipeline Hotline. The industry recommends the NDIC develop and manage a pipeline "hotline" for reporting issues related to pipeline reclamation. The hotline would provide landowners with an easy notification system for problems and concerns and would include follow-up with the company and landowner to ensure quality control. The hotline would complement rules recently passed by the NDIC to map all gas and liquid gathering lines, establish a $75 million fund for cleanup or reclamation of gathering lines, and extend mediation services to include disputes between the landowner and energy companies to include pipelines.Midstream Planning and Tracking. Midstream companies (natural gas processors and gatherers) will meet regularly with the NDIC to give the status of operations and updates. For More Information: Plan outlined to reduce flaring - Nick Smith, Bismarck Tribune Flaring task force recommends capture plans before drilling, further look at right of ways - Katherine Lymn, Dickinson Press Right-of-way access may pose biggest delay in capturing gas - Patrick Springer, Dickinson Press Industry in North Dakota to Cut Flared Natural Gas - Clifford Krauss, New York Times Much Of North Dakota's Natural Gas Is Going Up In Flames - Jeff Brady, NPR
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Energy Impact Grants Awarded to Western Law Enforcement Agencies
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 The Board of University and School Lands (Land Board) met Thursday, January 30, 2014. The Land Board considered award recommendations for sheriff offices in oil and gas producing counties and other law enforcement agencies realizing impacts from oil and gas development.
The Drug and Violent Crime Policy Board acted as an advisory committee for this grant round. It evaluated the applications received and assisted the Bureau of Criminal Investigation of the Attorney General's Office and the Energy Infrastructure and Impact Office in the development of award recommendations.
The Land Board reviewed all applications, considered the award recommendations and made awards to sheriffs' offices from the energy impact grant fund. The state legislature earmarked a total of $7 million in the energy impact grant fund to be allocated to county sheriffs' offices in oil and gas counties during the 2013-2015 biennium. About $1.8 million of that amount was awarded on Thursday. Awards provided to other law enforcement agencies were made from the $9.6 million appropriated to the Attorney General's Office to assist those agencies in addressing crime-related activities affecting oil and gas producing development areas of the state.
The law enforcement grants will help pay for patrol vehicles, mobile fingerprint scans that provide immediate identification, portable scales for weight enforcement, funding for housing allowances, funding to hire additional officers and other public safety personnel as well as training, police safety gear and other equipment.
A full list of the awards made on Thursday can be found using the following link.
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Mercer County to See Relief From Coal Truck Traffic
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 State Highway 200A between Beulah and the Missouri River should be less congested starting yesterday. For most of January, a fleet of 50 dump trucks owned by Northern Improvement has been hauling lignite coal to Basin Electric Power Cooperative's LeLand Olds stations near Stanton.
Curt Person, spokesman for Basin Electric, said the 250 loads of coal a day for the past month helped the plant stockpile 300,000 tons of lignite. He said the trucks would stop rolling Thursday.
The need to truck the coal some 35 miles from the Coteau Mine north of Beulah was brought about, in part, by a busier BNSF Railway. Person said Basin had a short two-hour window to fill two 60-car coal trains needed to make electricity when it is burned at the plant.
A new oil transloading station near Zap meant BNSF didn't have enough crews available to move the coal at times.
For more information
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Dakota Pipeline Planned to Move ND Natural Gas, Help Reduce Flaring
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Governor Jack Dalrymple joined MDU Resources and WBI Energy yesterday in announcing the companies are moving forward with plans to build a natural gas pipeline that would increase North Dakota's take-away capacity and further reduce flaring.
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Governor Jack Dalrymple speaks during a press conference Thursday announcing planning for the 375-mile Dakota Pipeline that will move ND natural gas to market.
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WBI Energy Inc., a subsidiary of MDU Resources Group, Inc., plans to build a 375-mile pipeline that would transport Bakken-produced natural gas from western North Dakota to industrial, commercial, and residential customers in eastern North Dakota as well as markets throughout the Midwest.
"We are committed to working with WBI Energy and the entire energy industry so that we continue to reduce flaring, add value to our energy resources and help meet the nation's energy needs," Dalrymple said. "This pipeline is part of the solution and I commend MDU Resources and WBI Energy for their commitment to North Dakota and to the responsible development of our energy resources."
The Dakota Pipeline has been designed to transport about 400 million cubic feet of natural gas per day, but could be expanded based on shipper demand to move about 500 million cubic feet per day. WBI Energy plans to invest $650 million to build the 24-inch Dakota Pipeline.
WBI Energy originally proposed running the pipeline through central North Dakota to an interconnection near Moorhead, Minn. Following market feedback, company officials revised the route and moved the eastern endpoint farther north to access interconnections with three pipelines: Great Lakes Gas Transmission Company, Viking Gas Transmission Company and, potentially,TransCanada. The pipelines would connect in northwestern Minnesota, near the natural gas trading hub known as Emerson.
WBI Energy officials have begun accepting long-term service commitments from natural gas producers. Provided that sufficient long-term commitments are received and regulatory and environmental permits are secured, construction on the pipeline could begin in late 2016 and be completed the following year.
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Upcoming Events
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February 6, 2014
There will be a Vision West ND Consortium Meeting on February 6, 2014. The meeting is scheduled from 9:00 AM to 4:00 PM, CST at the Sleep Inn in Minot, located at 2400 10th Street SW next to the Dakota Square Mall. The agenda's primary focus will be on the Consortium's discussion, editing and eventual approval of the Vision West ND Regional Plan. The annual election of officers for 2014 will also be held.
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. The conference and expo is the nation's only shale oil conference with a comprehensive agenda focused on the innovations shaping the Bakken and Three Forks shale oil play. NDAOGPC Executive Director Vicky Steiner is slated to present to conference attendees on issues surrounding oil tax distribution. More information on the conference is available through this link.
February 15, 2014
The 17th Annual A.P. I. Gumbo Cookoff will be held Saturday, February 15, at the Quality Inn & Suites in Dickinson, ND. Eighteen teams will compete against each other for a first place trophy and $300, a second place trophy and $200 and a third place trophy and $100. Trophies will also be awarded for the Best Cajun Costume and the People's Choice Award for the Gumbo.
The American Petroleum Industry and area businesses will be hosting this winter bayou event that will include public taste testing, door prizes and an evening dance for $6 per person. All proceeds go toward local charities and college scholarships.
Cooking begins at 11:00 am with teams preparing their ingredients. The public is welcome to view the preparations early in the day and the taste testing begins at 6:30 pm. The dance begins at 8:30 pm until 12 am.
February 25, 2014
The ND Local Technical Assistance Program (NDLTAP) is hosting a roundtable discussion meeting for oil and gas producing county officials on Tuesday, February 25 at the Buckskin Bar and Grill in Killdeer, ND. The meeting will begin at 10:00 AM CT and go until 3:00 PM. This is an informal meeting where the challenges and successes of road issues in the oil producing counties will be discussed. Participants are asked to register for the meeting in order to ensure an accurate meal count. Please contact NDLTAP Training Coordinator Denise Brown at (701) 328-9856 for more information.
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 opened this week, with every available event exhibition booth being booked within four minutes of registration going live. More information on the Williston Basin Petroleum Conference is available here.
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.
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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 |
400 East Broadway Avenue Suite 304 Bismarck, ND 58501
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