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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.
  April 4, 2014
 

The Bakken continues to garner national attention. 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.

Have a great weekend!
Developing Unconventionals (DUG) Bakken & Niobrara Conference Held in Denver

Harold Hamm, Chairman and CEO of Continental Resources, said the oil and gas industry has "changed the world".

 

Harold Hamm and Vicky
Continental Resources Chairman and CEO Harold Hamm and NDAOGPC Executive Director Vicky Steiner reminisce about Hamm's early days during the Red River play in Bowman County.

Speaking at the DUG oil conference in Denver this week, Hamm said Continental Resources is implementing its strategy to grow production while focusing on improving margins and efficiencies.

 

Hamm said a knot in the chain means free markets don't work. He said we can help other countries with the sale of oil.  Hamm had testified to a federal congressional committee about allowing the export of oil and said he thought it was somewhat well-received by the chairman.  He said the situation in Ukraine shows the importance of energy to Europe.

 

The country is undergoing an "American Energy Renaissance," Hamm said.

 

Taylor Reid, Oasis Petroleum Inc., answers questions following his presentation to the DUG Conference in Denver.

Taylor Reid, Oasis Petroleum Inc. President and COO, echoed Hamm's comments about finding efficiencies in their Bakken oil drilling operations in North Dakota and Montana.  Reid said by investing in their own fracturing sand division, he estimates Oasis saves $700,000 per well.  He said they are looking at other opportunities where they can cut costs.  Oasis has partnered with Highland and have pipe that goes to main pipelines and rail facilities so they can market their oil to best-price markets.

 

Brady and guy
Brady Pelton, NDAOGPC Deputy Executive Director, fields questions from 2014 DUG Conference attendees on the Association's Uniform County Truck Permit System.
Reid said he's encouraged by their tests in lower levels of the Bakken.Oasis will invest $1.4 billion in their Williston Basin play.  "We'll be drilling more 2nd and 3rd bench. We're excited about what we're seeing."  He ended his talk by saying, "We've got the organizational structure in place to execute the play."

Another speaker, Subash Chandra, Jeffries LLC, said Wall Street believes the Williston Basin to be a mature basin while the oil industry believes it to be a younger play.

Chandra said his research shows that there is "not a magic bullet for enhanced oil recovery completions".  Other research shows that negative press is having an impact on people's impressions of fracturing oil wells in Pennsylvania.  He said that coal is losing sharehold.  On a finishing note he said, "We're gas bulls."
Laura Atkins
Laura Atkins, Hart Energy, describes the research and modeling her company has done into to the longevity and valuation of mineral resources within in the Williston Basin.
Hart Energy Research and Consulting Executive Director Laura Atkins said their research shows a conservative ultimate Williston Basin Bakken well count of 70,450, including wells located in Montana.

 

In North Dakota, the Bakken break-even price ranges from $42 a barrel in the "sweet" Bakken spots to $89 on the outlying areas.  By 2020, Hart Energy's research estimates half of the Bakken will be drilled out.

 

In the DJ Basin in Colorado, the sweet spots break even at $23 a barrel, $17 a barrel for sweet spots in the Powder River Basin in Wyoming.

 

"There is enormous space for additional drilling in Bakken" of Williston Basin and Niobrara of north east Colorado, Atkins said at the close of her speech to the DUG conferees.  It's estimated that about 3,500 attendees participated in the three-day event.

NDAOGPC Executive Committee Members Meet with Governor, Discuss Impacts
Several members of the NDAOGPC's Executive Committee met this week, April 2, with Governor Dalrymple to discuss the funding shortfalls being faced in western North Dakota. They discussed possible future funding alternatives and if a special legislative session is needed at this time.
City Energy Impact Grant Round Now Underway

The ND Energy Infrastructure and Impact Office is now accepting grant applications from cities experiencing infrastructure needs as a direct result of oil and gas development.  This round of city construction grant requests is in advance of the 2015 fiscal year, which starts on July 1, 2014. 

 

During the 2014 fiscal year, in addition to awarding $14 million to hub-cities and $47.7 million to other cities, the Land Board pledged $31.2 million of the $40 million set aside for other cities for the 2015 fiscal year allowing the cities to plan their projects.  $8.8 million remains available for this grant round for consideration.

 

This grant round will focus on city infrastructure projects that are ready to construct, which could include water treatment facilities, waste water facilities, trunk lines and other city projects intended to support population growth. Counties, townships and other political subdivisions will be encouraged to participate in grant opportunities during the upcoming fiscal year.

 

Applications will be reviewed based on need, readiness and impact, with grant recommendations formulated by an advisory committee. The Land Board will make award commitments in late May or early June, dependent upon completion of grant round activities. Grant requests for one-time projects related to building or improving physical assets will receive preferential consideration. A lower priority will be given to applications seeking funds for ongoing costs and projects that are less directly related to oil and gas development.

 

The Energy Impact Office will be accepting grant applications from cities through April 30, 2014. Application forms and additional information are on the North Dakota Energy Impact web site: www.nd.gov/energyimpact. This internet site contains both a PDF form or a MS Word version of the application form. Completed applications and supporting materials can be mailed to Department of Trust Lands office or e-mailed to [email protected] .

 

Please contact Energy Impact Office Administrator Gerry Fisher by phone at (701) 328-2800 or via e-mail at [email protected].

Report: 2014 Bakken oil output 1.1M barrels a day
   - Josh Wood, Associated Press
Oil production in North Dakota and Montana's Bakken and Three Forks formations will average 1.1 million barrels per day this year, according to estimates announced Wednesday by a research firm.

Wood Mackenzie anticipates that oil production in the North Dakota and Montana sections of the Bakken and Three Forks formations will grow to 1.7 million barrels per day in 2020.

 

"We're very confident on the future of the Bakken," said Jonathan Garrett, an analyst at Wood Mackenzie. He added that the expected lifetime of a Bakken well is 25 years to 30 years.

 

Wood Mackenzie projects that $15 billion will be spent on drilling and completion of wells by Bakken participants in 2014.

 

The research firm also said there is close to $118 billion in remaining value in the American portions of the Bakken and Three Forks formations, which stretch into Canada's Saskatchewan and Manitoba provinces.

 

Last year, North Dakota produced a daily average just shy of 860,000 barrels per day, according to statistics from the North Dakota Industrial Commission's Oil and Gas Division. The North Dakota Petroleum Council, a group that provides governmental relations support to oil companies, expects the state's oil production to surpass 1 million barrels per day in June.

 

For more information 

Hearing Set on Gas Flaring Policy

Natural Gas Flare The Oil & Gas Division of the Department of Mineral Resources has scheduled a special hearing to address the North Dakota Industrial Commission's newly-adopted policy on reducing gas flaring.


The hearing will be held at 9am, Tuesday, April 22, at the department's offices, 1000 E. Calgary Ave. in Bismarck.


The commission will consider amending field rules relating to the Bakken and Three Forks pool that restrict oil production and consider any additional steps to reduce gas flaring.


Persons interested in testifying should be prepared to supply testimony of a technical nature.


The commission is seeking input on the following:
1.   Length of time wells should be allowed to produce at maximum while flaring?
2.   What production rate restrictions are appropriate for wells connected to gas gathering or beneficial uses?
3.   What types of administrative approval of exemptions from production restrictions are appropriate?
4.   What consideration should be given to ambient air quality regarding production rates or restrictions?
5.   Should production rates and restrictions be adjusted for well economics and percentage of gas captured by well site, field-pool, region or operator?
6.   Should production rates for wells not connected to gas gathering or beneficial uses be reduced in stages or set at a low rate after payout?
 
Written comments may be submitted to [email protected] no later than 5 pm, Monday, April 21.


Action items from the commission's new flaring policy can be found on the Oil & Gas Division website: www.dmr.nd.gov/oilgas/presentations/NDIC030314_100.pdf  

NDAOGPC Accepting Applications for 2014 Scholarship Awards
ATTENTION ND STUDENTS!!
Tscholarshiphe NDAOGPC is again sponsoring a scholarship program for students in North Dakota focusing on energy-related degrees. Students who have completed 12 credit hours or more are welcome to apply for one of six scholarships that will be awarded in August 2014. Applicants should be pursuing degrees in engineering, chemistry, geology, petroleum sciences or other studies directly related to the oil and gas industry. Invitations to apply for the Association's 2014 scholarships were recently sent to all North Dakota colleges, universities, and vocational schools. We strongly encourage all readers to share this opportunity with anyone they believe may qualify. The application can be downloaded HERE.

Last year, the Association awarded a total of $10,000 to six deserving students. Don't miss this great opportunity to gain financial assistance for an industry related education! The deadline for application submission is June 15, 2014.
Upcoming Events

April 8-10, 2014

The Western North Dakota Energy Project is hosting an updated webinar series entitled the "Shale Projection Webinar Series" April 8-10. You are invited to participate in this webinar series that will provide updated population, workforce, and housing projections for three regions of western ND. Each of the three webinars listed below will take place beginning at 2:00pm MDT, 3:00pm CDT.

 

Dr. Dick Gardner, Center for Rural Entrepreneurship, will be presenting research, analysis, and projections gathered from contributors including ND Dept. of Mineral Resources Director Lynn Helms and North Dakota State University's Dean Bangsund and Nancy Hodur.

 

The three webinars and the areas they will focus on are listed below:

- Tuesday, April 8 - Dickinson Region (Adams, Billings, Bowman, Dunn, Golden Valley, Hettinger, Slope & Stark Counties)
- Wednesday, April 9 - Williston Region (Divide, McKenzie & Williams Counties)
- Thursday, April 10 - Minot Region (Bottineau, Burke, McHenry, Mountrail, Renville & Ward Counties)

Sessions are presented in a webinar format. To participate in the Webinar, click on http://energizingentrepreneurs.adobeconnect.com/vision-west/. Enter as a "Guest", then type in your name and click "Enter Room". Each session will be recorded for later viewing at: www.visionwestnd.com or www.ndwebinars.com.  

 

April 10, 2014

The NDAOGPC Executive Committee will meet on Thursday, April 10, 2014 beginning at 11:00am Central Time. Executive Committee members will meet in the Prairie Rose Suite of Outlaw's Bar & Grill in Watford City, ND. 

 

April 16, 2014 

Financing, Developing & Constructing Public Infrastructure in the Bakken

 

You have a desired project in mind . . . perhaps a much needed new school, a hospital, a wastewater treatment facility, civic center or affordable housing. How do you get from this "idea" to a finished building? Where do you get financing? Are there innovative financing strategies to consider? What is involved in the construction process? How will you manage the procurement process and the construction process? How will you deal with claims?

 

All of these questions and more will be addressed by experts in these areas in a full day program focusing on transforming your "idea" into a finished facility.  

 

This conference, designed for city and county staff, engineers, elected officials, economic development professionals, construction industry professionals, and other executives involved with project development and financing in North Dakota, will take place on Wednesday, April 16 at the Ramkota Hotel in Bismarck. The event will begin at 8:00am CDT and end by 3:00pm. Click here to view an agenda of the event. 

 

Registration to the conference is complimentary, but required before Wednesday, April 9, 2014. Click here to register.

 

April 22-23, 2014

The MHA Nation's Annual Bakken Oil & Gas Expo will be held April 22 through 23 at the 4 Bears Event Center in New Town, ND. The Expo will feature a list of speakers including MHA Nation Chairman Tex Hall, U.S. Congressman Kevin Cramer, U.S. Senator Heidi Heitkamp, and ND State DOT Director Grant Levi. Major topics in the agenda, available here, include TERO, environmental protection, transportation, right of way, tribal flaring, and MHA Nation 'Peoples Fund' issues. More information on the Expo is available at www.mhabakkenexpo.com/.

 

May 20-22, 2014 

The 2014 Williston Basin Petroleum Conference will be held May 20-22, 2014 in Bismarck, ND. Booth space is sold out, but limited sponsorships are still available. The full agenda can be found here.

 

Registration costs will increase on April 16, so we encourage you to take advantage of the early-bird discount and register now. You can do so here.

 

Limited hotel rooms remain in Bismarck, so please book your hotels as soon as possible. Hotel reservations can be made immediately here.

 

For more information regarding the conference, please visit www.wbpcnd.org or contact event coordinators at 701.223.6380 and [email protected].

 

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: $101.00

Brent Crude: $106.59

Natural Gas: $4.42

ND Rig Count: 190

 

From the ND Petroleum Council's News Clips
for April 4, 2014.
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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Suite 304
Bismarck, ND 58501

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