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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 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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ED&T Committee Hears Study Updates, Regulatory Issues
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Study updates and energy industry regulation topped the agenda of the interim Energy Development and Transmission Committee, which met this week, Tuesday, July 8, in Bismarck. KLJ Chief Executive Officer Niles Hushka provided an update on the study his company is doing on the future of the industry and the associated needs for infrastructure. At this phase in KLJ's study, the third of four, information that was gathered in the first two phases was assembled and used to create a model to make predictions. The study, Hushka said, is based on the next five years.
 Hushka went on to show a map that indicated which areas of the state have the highest potential for economic gains at recent oil prices. As can be expected, most of the "red" zones lie within the four largest producing counties. Areas surrounding those zones have a lower potential for sound economic returns. He also shared a graph that showed how sensitive the "payback timeline" is to the price of oil. A well with initial production (IP) of 750 bbl/day will take about eighteen months to reach its payback threshold at a price of $100/barrel. At $70/barrel, the same well would take about 60 months to reach payback.
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Energy Development and Transmission Committee Chairman, Senator Rich Wardner (pictured center), takes notes as KLJ CEO Niles Hushka presents an update on Phase III of his company's study on oil and gas impacts in the state.
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Water, Hushka said, is also important to consider when looking at the stability of the industry over time. He spoke about the water to oil ratio in the Bakken region and how producers have higher operation costs where the ratio of water to oil is higher. This, he said, could influence where wells will be drilled in the short term. As one moves out to the "outer fields" of the Bakken play, the water/oil ratio is higher. A higher ratio creates the need for more disposal wells, production water pipelines, and more trucks to haul production water, he said.
Hushka also talked about forecasted change in Williston Basin employment, saying that the three regions of the Basin - Williston Region, Minot Region, and Dickinson Region - show a combined 22.2% five-year growth potential. He reiterated the fact that, though temporary development jobs will continue to rise sharply, long-term permanent jobs are forecasted to continue their upward trend as well. Forecasted population growth was also discussed, with the
Williston Basin seeing a potential 29.2% growth through 2019. The forecasts made for permanent population, Hushka said, were predicated on the region's ability to supply permanent housing. Thus, that 29.2% growth is potential growth and not actual projections.
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This map, presented by Hushka, shows Bakken production profitability. The areas in red, yellow, and orange have the highest potential for economic gains at recent oil prices. Blue zones have a lower potential for sound economic returns.
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Finally, wildcards were mentioned that may skew the models KLJ has developed. An increase in the price of oil spurred by global tensions could significantly affect the state's oil and gas industry. Continued developments of other shale plays in the United States could also potentially create competition for oil producers in the Bakken, many of whom may find higher profit margins elsewhere. Finally, the potential for an increased ability to develop resources on federal lands and tribal lands could also spur new production.
The committee also heard from ND Dept. of Health's Environmental Health Section Chief Dave Glatt on state and federal rules related to emissions controls, industry spills, and remediation. Regarding the recent federal EPA 111(d) proposed emissions standards, Glatt questioned what the "end game" was for the policy. The proposed standards (referred to commonly as the Clean Power Plan), more information on which is available here, provides a level of uncertainty, he said, in whether industry players in the state could meet its expectations. Glatt stressed that affordability, reliability, and accessibility of power within the nation are important. ND emissions, he said, are down 11% since 2005.
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ND Dept. of Health Environmental Health Section Chief Dave Glatt talks about remediation methods used in the event of a brine spill. (Photo courtesy of Rep. Ben Hanson)
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Glatt also spoke about industry related spills. He said that brine spills, which are ten times saltier than seawater, are beginning to become a larger issue. Remediation of brine spill sites can be extremely costly. Those reclaiming a site can either dig up the soil that's been affected or use chemical applications to drive the saltwater down further into subsoil. Nick Smith with the Bismarck Tribune covered the environmental portion of the committee meeting. His report is available here.
Two bill drafts were also introduced during this committee meeting. The first would create another pool of money out of the first 1% of GPT to be used to credit the state highway fund up to $75 million/biennium. That money, according to the bill draft, must be used "in any matter to provide for major improvements and construction of highway corridors impacted by energy development with a priority for four lanes for United States highway 85". Additionally, any unused moneys from this "silo" would remain to be used for these purposes and would not be returned to the general fund if unused.
The second bill draft deals with the Abandoned Oil and Gas Well Plugging and Site Reclamation Fund (AOWPSRF). Currently the fund is funded out of the first 1% of GPT to the amount of $5 million/fiscal year up to a $75 million maximum balance. The bill draft simply doubles the amount of money credited to that fund to $10 million/fiscal year and increases the balance allowance to $100 million.
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EmPower ND Commission Works on Policy Recommendations
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 Critical policy components were discussed this week by members of the EmPower ND Commission, which met in Bismarck on July 7. The Commission reviewed and edited its draft 2014-2015 policy document, focusing on five main topic areas: Infrastructure, Workforce, Research & Development, Regulatory Environment, and Incentives.
The need for infrastructure expansion in the state's energy-producing region has been made a top priority of the Commission. Because of its importance to the energy industries, the Commission has made steps to support several actions that will increase financial resources needed for added infrastructure development. The Commission supports legislation within the first 30 days of the 64th Legislative Assembly related to oil and gas impacted area infrastructure funding. This was largely supported in order to ensure the early availability of adequate funding to western political subdivisions for the 2015 construction season. The Commission will also support changes to the oil and gas gross production tax distribution formula to provide increased ongoing funding to those western political subdivisions experiencing infrastructure need.
In addition to policy supporting outside entities' work on accomplishing these goals, members of the Commission are drafting specific pieces of legislation that will help the state's energy sector. In regards to the infrastructure topic area, a bill draft is being developed that will create a trigger mechanism that will transfer additional funds into the Energy Impact Grant Fund from the state share of oil tax revenue when that revenue exceeds certain thresholds. Additionally, it was proposed to establish a new authority within state government that would collect data related to the large scale regional needs in western ND. Such an authority was proposed with the objective of creating synergies among the various planning efforts undertaken within the region.
In the coming weeks, Commission members will continue to review the draft policy document. EmPower ND Commission chairman, Commerce Commissioner Al Anderson, is expected to present the completed policy document to the interim Energy Development and Transmission Committee on August 14, 2014.
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RFP Issued for Hwy 85 4-Laning
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 On June 23, 2014, the ND Dept. of Transportation (NDDOT) issued a Request for Proposal (RFP) to perform preliminary engineering services related to expanding the roadway of US Highway 85 from Watford City, ND south to Interstate 94.
US Hwy 85 has been experiencing an increase in traffic as a result of the increase in oil related activities in western North Dakota. The NDDOT is proceeding with preliminary engineering and environmental studies to develop alternatives to 4-lane the roadway and provide structures to meet the needs of the traveling public.
You may view the full RFP for this project by clicking this link.
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Monthly LTAP Status Report Now Available
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 The NDAOGPC has contracted with the ND Local Technical Assistance Program (LTAP) to provide additional resources to its member counties by way of a Technical Support Representative. Bill Anderson has been communicating with each county road department and providing that assistance. As part of his services, Anderson makes a monthly report available to western county leaders in an effort to pass on information he's learned for the betterment of the region. You can view his May 2014 report by clicking this link. |
Opinion: The benefits of oil flow east
- By Barry Wilfahrt, Grand Forks |
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Barry Wilfahrt is president and CEO of The Chamber Grand Forks/East Grand Forks.
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North Dakota recently celebrated producing 1 million barrels of oil per day and with it, the list of accolades bestowed on North Dakota continues to grow.
As we mark this milestone, let's reflect on what this development means for the Grand Forks area and our state, even far removed from the economic strength of the Bakken.
Strong tax revenues have allowed our state to lower the burden of property and income taxes and increase funding for education, including significant funds for programs and buildings at the University of North Dakota, like the medical and law schools.
However, the benefit goes much farther.
Surveys of the more than 100 business in the Grand Forks area doing business in the Bakken discovered over two-thirds of these businesses credit Bakken oil development with increasing their business and almost a quarter of respondents added staff specifically because of oil's economic impact.
Overall, Grand Forks companies generate over $200 million a year in revenues derived from the Bakken.
Click here to continue reading.
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'Beacon of safety:' Dickinson police, fire break ground on multi-million center
- Nadya Faulx, Dickinson Press
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The golden prop shovels didn't actually break any ground at Wednesday's "groundbreaking" ceremony for Dickinson's public safety center, but construction on the multi-million dollar facility is set to begin next week.
Law enforcement, fire and city officials gathered at State Avenue and 21st Street West to dedicate the building, which will serve as the new headquarters of both the Dickinson Police Department and the Dickinson Fire Department.
Calls for service have increased tremendously since the start of the oil boom, city administrator Shawn Kessel said, putting a strain on police and fire staff who have to respond to more calls at farther distances as the city's boundaries expand north and west.
The 42,000 square-foot building will be the home for the Dickinson Fire Department, which will transition its current downtown offices to a substation. Police dispatch, administration and training will also be transferred to the new building.
Click here to continue reading.
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Upcoming Events
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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. More details on the CookFests as well as the schedules for the events are available by clicking here.
July 16, 2014
The Executive Committee of the NDAOGPC will meet beginning at 1:30pm MDT on Wednesday, July 16 at the Killdeer City Hall in Killdeer for its regular July monthly meeting.
July 17, 2014
Vision West ND will host a meet and greet with a delegation from the U.S. Dept. of Housing and Urban Development on July 17 in Killdeer. The group will meet at the banquet hall of the Buckskin Bar & Grill beginning at Noon MDT.
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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