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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 This week featured a large number of interesting events, from the Governor's Pipeline Summit to unveiling of the Upper Great Plains Transportation Institute's local road and bridge study. We hope that you will find this week's News From the NDAOGPC as a valuable source of information.
Have a great weekend!
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UGPTI Local Road Needs Study Results Shared
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Major transportation system updates were shared this week in two interim committee meetings held June 25 at the ND State Capitol. The Economic Impact Committee and the Budget Section both heard from representatives of the Upper Great Plains Transportation Institute (UGPTI), who explained the results of a statewide study on the infrastructure needs of the state's county, township, and tribal roads and bridges.
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Upper Great Plains Transportation Institute Director Denver Tolliver explains the methodology used in the UGPTI's study on local road and bridge infrastructure needs.
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UGPTI Director Denver Tolliver explained that the current study, authorized by the 2013 Legislature, expands on a 2010 study commissioned by the NDAOGPC and a 2012 update study by using more comprehensive data to assess the needed road investments. Changes over time on factors like higher roadway costs, increased agriculture production, and an additional 60,000 new oil wells were used to justify the study in order to give state policymakers the information they need to make appropriate budgeting decisions.
The UGPTI study focused on a 20-year time frame and assesses the traffic and investment needs for local paved and unpaved roads over an annual basis. The results were summarized by biennium and by region - oil and non-oil producing counties. More detailed results by county and jurisdiction are expected to be shared with the Energy Development and Transmission Committee in the group's July 8 meeting. Key factors used in the study centered on the oil/gas and agriculture industries. Variables like the number of projected new wells, well locations, petroleum and agriculture production/yield rates, gathering pipelines, and elevator networks were all taken into account in anticipating the amount of traffic and weights on the state's local road network. Tolliver said, "We have the best county road inventory database in the nation," in regards to the information that was collected during the course of the study. Road conditions were measured on local roads throughout the state, factoring into the costs of maintenance/repair of those roads over time.
Another issue the study took into consideration was whether it was cost effective to pave local gravel roads. Tolliver pointed out that conversion of gravel roads to hot mix asphalt wasn't directly considered except for the highest traffic roads, many of which are in western ND. At some times, he said, the costs to continue with gravel are more expensive over time than paving the road. Unpaved road investment needs in oil patch counties for the 2015-2016 biennium totaled $299.4 million. Non-oil county needs for the same biennium are at $248.6 million. Total 20-year investment needs for unpaved roads in oil counties is over $2.909 BILLION.
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Paved local roads saw similar high needs. Maintenance and improvement features like overlay, mine and blending, and total reconstruction were all considered in this aspect of the study. Oil county paved road investment needs for the 2015-2016 biennium stand at $186 million, with a total 20-year need of $1.162 billion. Tolliver added that an additional $58 million would be needed if local road authorities were to convert unpaved gravel roads to paved.
Local bridges were also analyzed within the study. Recently replaced or minimum maintenance road bridges were not considered. Tolliver noted a backlog of over 480 bridges, the costs of which to replace/rehabilitate would amount to about $70 million per biennium over a five-biennia time span.
Tolliver explained that the UGPTI is working to gather feedback from the legislature, the NDDOT, and county governments. This feedback will be used to further refine the study report before it is presented to the Energy Development and Transmission Committee in early July. Detailed maps and data tables will also be posted on the UGPTI website, www.ugpti.org/, on July 8.
Click here to view the full UGPTI presentation made to the Budget Section and Economic Impact Committee.
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Governor's Pipeline Summit Sheds Light on Future of Pipeline Development
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Governor Jack Dalrymple welcomes attendees to the second Governor's Pipeline Summit in Bismarck.
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"Things are going quite well" were the words of Governor Jack Dalrymple as he opened his second Governor's Pipeline Summit held this week at the National Energy Center of Excellence at Bismarck State College. The half-day event, held Tuesday, June 24, offered members of the pipeline and petroleum industries as well as state regulators and policy makers the opportunity to gather and share information on expanding the state's pipeline capacity in the right way. "We want to do everything we can as a state to encourage the pipeline industry development," Dalrymple said. It's expected that by 2016, pipelines in North Dakota could have a 1.4 million barrel/day transport capacity. According to the Governor, about $9.5 billion in pipeline infrastructure and oil and gas processing plant investments will allow for a capacity of 783,000 barrels/day by the end of 2014.
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ND Pipeline Authority Director Justin Kringstad shares how oil production in the state is expected to increase and then maintain levels over time. Such continued high oil production will require additional transportation vehicles in order to get the commodity to market, he said.
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Justin Kringstad, Director of the ND Pipeline Authority, shared that a price spread between West Texas Intermediate and Brent Crude oils has caused a shift from pipe transportation to rail. Transporting oil by rail, he said, offers more flexibility in getting that oil to the refining market. Because of a lack of access to east and west coast refineries, the light sweet crude produced in the state is not able to get as high a price as it would otherwise. Kringstad also spoke about the ND Industrial Commission's aggressive natural gas capture targets. Currently, about 71% of produced natural gas is captured and sold. A natural gas flaring task force, led by the ND Petroleum Council, set the ambitious goal of reducing flaring to 10% within six years. New rules approved by the ND Industrial Commission that mandate a gas capture plan prior to well permit approval are expected to help reduce the amount of natural gas that's flared.
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Gene Veeder, McKenzie County JDA Director, speaks about the challenges being faced in the western ND region amidst unprecedented economic activity. Regarding industry development, Veeder said that local officials must be aware of where the line is between what's good for the community and what's right for individuals in that community.
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Several issues regarding pipeline development were touched on by state officials and regulators. Agriculture Commissioner Doug Goehring talked about the struggle many pipeline developers are facing in terms of acquiring rights of way for their projects. Some landowners, he said, have had enough in terms of the numbers of easements that are requested on their lands. Proper reclamation is also important to landowners.
Pipeline safety continues to be of top priority. Linda Daugherty, a representative of the national Pipeline and Hazardous Materials Safety Administration (PHMSA), said, "You know what works and what doesn't work" in terms of pipeline regulation. Regulators as well as the industry, she said, have a wealth of knowledge built up in pipeline operation. Daugherty alluded to her support of state regulation. "Who knows the area and conditions better than the people who live here? You want to do this right," she said. All three levels of government -- federal, state, and local -- play important roles in ensuring the nation's pipeline system stays reliable and safe, she added.
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Linda Daugherty, PHMSA Deputy Associate Administrator for Pipeline Safety, speaks to summit attendees on the importance of intergovernmental collaboration in properly regulating pipelines.
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Industry representatives from companies including Alliance Pipeline, ONEOK, WBI Energy, KLJ, Enterprise Products Partners, and Enbridge also spoke about the large potential for pipeline development in the state. Enterprise VP Brent Secrest said, "The supply is there, and there to stay. We'll be there to get it out." Enterprise plans to build a 1,200-mile pipeline stretching from Stanley, ND to refineries in Cushing, OK. The large-diameter pipe will be first of its kind, creating a direct link between the Bakken oil fields in ND to a critical refining base. Another major pipeline development, approved this week by the ND Public Service Commission, was the Sandpiper pipeline, developed by Enbridge. Enbridge VP Paul Fisher shared that the $2.6 billion, 610-mile project will have a capacity of 225,000 barrels per day. Once completed, it would begin south of Tioga and run to an existing terminal in Superior, WI. You can read more on the PSC's approval of the Sandpiper pipeline project by checking out Nick Smith's Bismarck Tribune story here or by viewing Mary Cate Mannion's KFYR-TV video segment here.
Finally, Niles Hushka, CEO of KLJ, said, "We have new challenges [regarding pipeline development], and we're coming up with new innovations to deal with them daily." Hushka talked about how typically risk-averse capital is coming for pipeline developments as more people are buying in to the long-term nature of the Bakken oil play. Field innovations like improved pipeline materials, monitoring techniques, and reclamation techniques are all helping to maintain the state's pipeline system integrity while elevating environmental safety standards, he said.
For more information:
Dalrymple Hosts Second Governor's Pipeline Summit - Posted June 24, 2014
Governor's Office Press Release
Pipeline summit upbeat - Posted June 24, 2014
Nick Smith, Bismarck Tribune
North Dakota to Double Pipeline Capacity - Posted June 24, 2014
Ben Smith, KX News
North Dakota aims to double pipeline capacity; Enterprise proposal helps - Posted June 24, 2014
Reuters Media
Pipeline Summit Addresses Expansions - Posted June 24, 2014
Mary Cate Mannion, KFYR-TV
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Water plan to address growth in North Dakota
- Posted June 23, 2014. Nick Smith, Bismarck Tribune
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An interim committee and the State Water Commission held a joint meeting Monday to discuss proposed changes to the state's water plan for the 2015-17 biennium.
 State Engineer Todd Sando provided the commission and the Water Topic Overview Committee on the funding and status of projects underway across the state. He said the number of applications received for 2015-17 funding is higher than those being funded in the current biennium.
Sando said a total of $515 million for statewide water projects was approved in House Bill 1020, the water commission budget.
"Our plan's gone from $515 million to $546 million," Sando said.
A total of $20.6 million of the increase came from emergency approval in the spring of funds for water projects in Dickinson, Williston and Watford City. The rest of the increase came from other water management projects that were approved.
"It's a very dynamic situation," Sando said. "They're the three fastest growing cities in the country."
The water commission has approved action on $304 million in project costs so far this biennium.
Click here to continue reading.
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Vision West ND Consortium Meets in Tioga
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 The Vision West ND Consortium met this week in Tioga, ND following the event celebrating North Dakota crossing the one million barrel per day production threshold.
Consortium members heard from NDAOGPC Deputy Executive Director Brady Pelton on recent Association activity. Pelton explained that the NDAOGPC Executive Committee had formally adopted the group's support for a two-pronged funding approach for western ND political subdivisions in the next legislative session. The first is one-time "surge" infrastructure funding to be appropriated directly to western political subdivisions early in the 2015 legislative session. This early funding "surge" is meant to provide critical funding for major infrastructure projects in order for counties, cities, and school districts to bid out those projects in the 2015 construction season.
The second funding mechanism supported by the Executive Committee is a change in the current oil and gas Gross Production Tax (GPT) distribution formula from the current 75%-state, 25%-local split to a split of 40%-state, 60%-local. This formula change, Pelton explained, would essentially double the amount of GPT revenue to each political subdivision in counties that receive more than $5 million in GPT revenue.
On behalf of the NDAOGPC, Pelton requested Vision West ND Consortium support of the NDAOGPC's policy proposals. Consortium members identified with the need to get one-time surge funding to political subdivisions early in 2015 and passed a motion in support of the NDAOGPC's proposal. The Consortium also passed a motion supporting NDAOGPC efforts in changing the GPT distribution formula to provide increased ongoing funding to western ND political subdivisions.
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Bill Vanderwall, Minnesota Housing Partnership, shares information with the Vision West ND Consortium on the Fair Housing Equity Assessment.
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The Consortium also heard from Bill Vanderwall, Minnesota Housing Partnership, on the Fair Housing Equity Assessment (FHEA) that is required by the Dept. of HUD as a part of the Vision West ND HUD grant. Vandewall explained that his group is working on putting the pieces of Vision West ND's FHEA together and is expected to have its work completed by November 2014. He said that the data needed has already been gathered and it simply needs to be repackaged in a way that is meaningful to the region. The FHEA, he said, attempts to answer the question "Are there people in the region that are not doing so well in terms of housing?".
Ray Ann Kilen, Regional Director for the Small Business Development Center, also presented an update on the 'One-Stop Child Care Portal' that her group has been establishing. The portal will be web-based and offer information critical to those seeking to start a child care facility. Resources like license requirements, links to county social service offices, zoning approval information, fire and health/safety requirements, and training opportunities will all be shared in a simple, easy to navigate website. Making it easier for potential child care providers to access the information they need is important for increasing the availability of child care in the region and the state, she said. The site is expected to be ready for use in the middle of July 2014.
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2014 Williston Basin Petroleum Conference Presentations Now Available
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 The 2014 Williston Basin Petroleum Conference was held on May 20-22, 2014 in Bismarck, ND. Over 4,250 people attended from 48 states and Washington, D.C., six Canadian provinces, Australia, Cameroon, China, France, Nigeria, Norway, Singapore and the Virgin Islands.
The presentations made during the conference have been made available. To view the presentations from the 2014 WBPC speakers, please click here. Presentations will be added as they are made available.
The 2015 Williston Basin Petroleum Conference will be held April 28-30, 2015 in Regina, Saskatchewan. For more information, please visit www.wbpc.ca.
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State Celebrates Million Barrel Per Day Production Milestone
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A million thanks: Oil industry celebrates million-barrel milestone for North Dakota
- Amy Dalrymple, Forum News Service
The oil industry said "thanks a million" Wednesday to North Dakota.
More than 2,000 people gathered in Tioga to celebrate the state's recent oil milestone of hitting 1 million barrels a day, not far from where the state produced its first barrel.
The One Million Barrels - One Million Thanks celebration by the North Dakota Petroleum Council featured a free Southern barbecue, an air show by the Texas Flying Legends and historical oil exhibits.
Petroleum Council President Ron Ness said they wanted to hold the celebration where the state's oil legacy began in 1951 with the first discovery well south of Tioga, the Clarence Iverson No. 1.
"There's really no place other than Tioga," Ness said. "This is where it all started."
Click here to read more.
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Celebrating a Million Barrels
- Mary Cate Mannion, KFYR-TV
Reaching the milestone took months of drilling and preparation. And yesterday the oil and gas industry celebrated a production level that not many states or countries can match.
"All the way from barrel number one to one million barrels each day," says Gov. Jack Dalrymple.
North Dakota is now producing one million barrels of crude every day, and leaders from the energy industry as well as the state celebrated that milestone in Tioga.
"This is as much about history as it is at is to come," says Ron Ness of the North Dakota Petroleum Council.
And that history has family roots.
"We never really thought this would happen but it did," says Jim Iverson.
This is where it all started. This well struck oil in 1951, sparking a frenzy that is still pumping today.
Click here to watch the video.
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North Dakota celebrates 1 million barrel a day oil production level
- Lauren Donovan, Bismarck Tribune
Jim Iverson says he has a hard time remembering when oil was discovered on the family farm near Tioga back in 1951.
He was awfully preoccupied back then. "We'd had dry holes before and I was chasing a woman that I didn't want to lose," he said, a twinkle still showing in eyes behind thick glasses.
As it turned out, he got the girl and his dad got the oil. That Clarence Iverson No. 1 well was the beginning of a long, colorful history of oil production in North Dakota. It was celebrated Wednesday in Tioga at a grand party to commemorate daily production of 1 million barrels of oil.
It took 63 long years to get from that lonely well out on the Iverson place to this new frenetic world of more than 10,000 wells and 1 million barrels a day, with most coming on in the past seven years, thanks to hydraulic fracturing technology.
Click here to read more.
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Upcoming Events
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July 4, 2014
The Bismarck office of the NDAOGPC will be closed Friday, July 4, 2014 for Independence Day. Have a safe and enjoyable holiday weekend!
July 15 & 17, 2014
The NDPC will host its 6th Annual Bakken Rocks! CookFest on July 15th in Kenmare, ND and July 17th in Dunn Center, ND. CookFest is a community outreach event that is held in two communities impacted by oil and gas development and is an opportunity for the industry to give back while residents learn more about the industry and the companies operating in their area. CookFest includes a Bakken Basics Education session, live entertainment and BBQ served by industry CookTeams.
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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