October 5, 2011

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In This Issue
Crew Camps
Oil boom boosts labor claims
Oil patch communities want to slow the pace of development
ND regulators support Keystone XL pipeline
Fee increase upsets Dickinson RV residents
Bakken Natural Gas Flaring
P&Z OK's well site in city limits
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Crew camps -more to ponder

 

If you ever want to have an interesting discussion just come to almost any western ND city and ask members of a any coffee clutch "What do you think about crew camps?".  With space for over 9,000 people in permitted crew camps two northern counties have issued moratoriums on new crew camps construction to slow down lightning fast growth.  Why all the controversy?  To answer that you must understand that not all crew camps are created equal.  There are a variety of operators offering a variety of services with varying degrees of quality.  Services can include varying levels security, transportation, on-site opportunities for recreation, meals choices, etc.  Some camps are open and accept people from multiple employers and others are closed and only allow employees of one company.  The type of housing can be a collection of mobile homes, renovated and previously abandoned school buildings, or purpose built structures.  Some are located within city limits with access to city services including water and sewer services and others are in the county.

 

They do offer a place to stay for desperate employees who otherwise cannot find housing.  They offer a badly needed supply of dwellings for housing markets that cannot keep pace with demand.  Since demand far exceeds supply, rental rates of existing housing skyrocket.  Crew camps, by their nature, are temporary.  The drilling portion of oil extraction is very labor intensive but when the drilling is complete and a well moves to the production side this takes approximately 50% to 70% less staff.  Crew camps serve to house that population of staff that is here for the drilling side but may not be here for the production side.  In some communities they may benefit from having the infrastructure that the operators of the crew camps built repurposed when the crew camps are no longer in operation.

Crew camps - What do you think?

 

 

Oil boom boosts labor claims 

 

The oil boom in western North Dakota has led to a significant increase in wage and labor claims filed with the state, Labor Commissioner Tony Weiler said today, and that's likely to continue to grow with the industry.

 

 

Oil patch communities want to slow the pace of development

 

A century ago, towns were hammered up house by house and store by store.

Today, what could become the 16th largest community in North Dakota will shoot up practically over night on crop land west of Tioga.

ND regulators support Keystone XL pipeline 

 

State regulators in North Dakota say they support a controversial

pipeline that would carry tar sands oil from Canada to the Gulf of Mexico, though they want it constructed in a responsible manner.

TransCanada Corp.'s proposed 1,700-mile Keystone XL pipeline could carry oil from the Williston Basin in western North Dakota and eastern Montana to downstream markets, the Industrial Commission said in endorsing the project Tuesday.

 

Source: Bismarck Tribune

Fee increase upsets Dickinson RV residents
  

Tenants of Heartland Village in Dickinson were frustrated after finding out lot fees for RVs will increase by more than 30 percent for the winter. Residents received a letter stating that the lot rental fee will increase to $635 per month beginning in November and that the fee won't be reduced until April. Multiple residents said they are currently paying $475 for their spot. The fee includes water, sewage, garbage and electricity. The letter cites "higher cost of maintenance and utilities for the winter months" as the reason for the bump in price. Resident Matt Smith said he was upset about the increase, but he would continue to pay because of a lack of available housing. "Basically you have to pay because rent is so high everywhere," he said. "They will get whatever they ask for." Heartland Office Manager Sue Emmil said the RV community has grown from a handful of units to more than 100 in the last two years, and the increase in units has increased the Heartland's energy consumption. "We have never had an influx of RVs like we have had and we learned from last year," she said. "It was a huge increase on us and we did not include it in the rent for extra usage. Learning from that, this year we decided to share the cost with them (tenants)." The higher fee would carry through April and after that the fees will be returned to the previous rate, Emmil said. After reading the letter, residents Roger Phillips and his son, Jeff, said the $160 increase was not justified. "There is no way we are using that much power," Jeff Phillips said. "It is price gouging." Roger Phillips said he was not going to be able to stay in the RV park. "Some people come for a few months, but I don't. I am trying to build a home and live here with my wife and family, but because of the housing situation, it makes it really hard to get ahead," he said. Tylor Kelly, a resident at Heartland, said that rent is just another addition to the list of the commodities that have risen in price. "I don't know if they understand there is food and other necessities," he said. "The people who work the rigs, it won't affect them, but others are going to have it hard."

 

Source:  The Dickinson Press

Bakken natural gas flaring: A giant step backward or an opportunity in disguise?

 

In North Dakota, the Bakken oil shale field has created tens of thousands of jobs, a resulting housing shortage-driven boom, the lowest state unemployment in the country and sorely needed tax revenue.

 

But it also created something else, a problem that has nothing to do with oil. It's all due to a process known as natural gas flaring...

 

Source:  Posted: Friday, September 30, 2011 - David Fessler, Investment U Senior Analyst

 

P&Z OK's well site in city limits
 
At a special Williston Planning and Zoning Commission meeting held on Monday a special permit use was passed allowing Oasis Petroleum to move forward with a oil well site within city limits.
 
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