December 20, 2019 -- Frozen Little Mo

"Sunny Slope" is the newest Wise Roads weather station in southwestern Bowman County.

The station's camera has a view of the Little Missouri River crossing. Click here for the data.

WDEA Will Consider TENORM Study

Counties Looking for Regional Solution

The Western Dakota Energy Association will consider formalizing a proposal next month aimed at developing a regional strategy for western counties to deal with low-level radioactive waste from oilfield drilling operations.

WDEA hosted an informational session this week at the request of Williams County to provide other oil-producing counties details of a waste disposal site proposed about 15 miles north of Williston.

The Williams County facility was proposed by Secure Energy Services to handle TENORM - technically-enhanced naturally occuring radioactive material. Its application has been put on hold by the county commission pending the outcome of the regional review. Secure's General Manager Kurt Rhea provided an overview of the issue during the informational session. Rhea said TENORM is found in filter socks that are used at saltwater disposal wells, and it is also concentrated in pipes and tank bottoms in processing facilities.

Click here to listen to Rhea's comments.

Rhea pointed out many manmade materials also contain low amounts of radioactivity including kitty litter and Coleman lanterns.

Click here to listen to Rhea's comments.

Rhea said low level amounts of radioactivity can be found literally everywhere, "in the water and the tanks on your farm, uranium in your meat and potatoes, Potassium-40 in bananas and in your body." He said the largest exposure comes from medical facilities, noting that "half of our exposure comes from going to the doctor and the hospital."

At its meeting following the TENORM session, WDEA's Executive Committee heard a proposal from Brent Bogar, the association's long-time consultant now working for AE2S. Bogar proposed gathering information about where and how much TENORM is being produced in western North Dakota, to develop a "heat map" that shows its location. He said he would want to have a commissioner from each of the four major oil-producing counties, and work cooperatively with the Department of Mineral Resources and Department of Environmental Quality to develop guidelines and recommendations for handling TENORM waste. The proposed scope of work, to be considered at the WDEA's next board meeting on January 22, would also include recommendations for public education. 

Click here to read Renée Jean's story about the meeting in the Williston Herald.

Production Risk Explained at Roundtable

Well Shut Downs Can Cost Industry Millions

About 125 individuals representing western North Dakota counties and Bakken oil producers gathered this week for a roundtable to explain their operations and seek ways they can improve oilfield productivity.

The event held at the new McKenzie County Public Works facility began with presentations by Guy Aman, drilling construction supervisor for Continental Resources, and Toby Romo, construction supervisor for Whiting Petroleum. Aman walked through the process of developing an oil well, detailing the numerous critical steps in the drilling process, many of which depend on the delivery of supplies and equipment to complete the well.

"Build the facility, hook it up, turn it on," Aman said. "That sounds all great, wonderful and simple, but there's all sorts of things that can happen that can speed up or slow down that process."

Aman pointed out one of the biggest challenges are the state's natural gas capture targets and availability of facilities to capture the natural gas associated with oil wells.

"When we plan our drilling schedule, we really are more focused on the gas pipelines because if I have 'X millions of dollars' tied up in completing a well and I can't produce it because it would be beyond my gas capture targets, it hasn't done me any good," Aman said.

Romo said he's seen a big change in transportation infrastructure since he's been working in the Bakken, noting that many county roads have been paved in the years since the shale boom began. He said it's made truck movement much more efficient, but the "monsoon" in September was a different story.

"A one-day deal, 24 hours, is really not too big of a deal for us," Romo said. "But this year we saw that extended, there were certainly times when we were shut down four or five days in a row."

Romo said the road restrictions were understandable, but caused interruptions in Whiting's operations. He said drilling rigs need fuel, and if weight restrictions limit traffic to 12,000 pounds gross vehicle weight, the rig is not going to get the fuel it needs. Romo said rigs also need fresh water during the drilling operation, which is typically trucked to the site. And he said the 12,000 GVW limit also prevented the movement of roustabout trucks so crews were unable to service wells.

When trucks are unable to get to a well pad to empty tanks or deliver essential supplies or equipment, companies can be forced to shut a well down, which can cost the company millions of dollars in lost production. And Aman said it's not easy to get a well re-started, and they may not deliver the same amount of oil after a shutdown.

"Oil wells are a lot like dairy cows," Aman said. "If you don't milk the cow every day, not only is it hard on the cow, but you can't milk it twice as hard the next day to make up for what you lost."

"Some of our wells that are flowing, if they get shut in they may or may not come back," Aman added. "And typically when they come, they don't come back quite as strong as when they were flowing initially."

McKenzie County Commission Chairman Tom McCabe announced near the end of the presentation that the county has adjusted its weight limits during rain events, raising the limit to 20,000 pounds rather than the traditional 12,000 GVW.

"We increased it from 12 to 20,000 because we figured out that service trucks, they could still get on locations when roads were closed, so the limit was raised because it probably helps," McCabe said.

Click here to read additional coverage of the producer session from Renée Jean in the Williston Herald.

NDIC Tries to Promote Gas Capture

Rule Aimed at Promoting Gas Processing

The North Dakota Industrial Commission approved a proposal this week that it hopes will encourage more timely investment in natural gas capture and processing facilities.

The new policy will allow owners of natural gas processing plants to offer preferential treatment to gas producers willing to enter agreements to guarantee delivery of their gas to the plant or pay the processor if they don't. Currently when plants lack adequate capacity to process incoming gas, all producers that deliver gas to the plant have to find an alternative method to handle the extra gas, which often results in flaring, according to Lynn Helms, director of the Department of Mineral Resources.

"Everybody takes a hit," Helms said, whether the producers deliver a large amount of natural gas on a regular basis or only a small amount of gas now and then. He said the new proposal allows processors to lock in a firm supply of gas, lessening the risk of investing millions in new processing capacity.

Click here to listen to Helms' comments.

Helms said allowing processors to enter contracts for firm delivery from producers and guaranteeing they will have the capacity to process the gas, should help the state catch up on processing infrastructure.

Click here to listen to Helms' comments.

The new policy will, in effect, allow gas processors to discriminate against producers unwilling to commit to delivering a specific volume of gas to the plant. But for those processors that opt to take advantage of the non-discrimination policy, they will be required to build capacity that is 10 percent above the volume provided in its firm processing contracts.

NDIC Okays Enhanced Oil Recovery Project

Proposal Will Also Test Natural Gas Storage

The ND Industrial Commission gave its blessing this week to a project proposed by XTO Energy aimed at coaxing additional crude oil out of nine existing wells by injecting produced natural gas from the surrounding formation.

The project is in the Bear Creek Field in northern Dunn County. DMR Director Lynn Helms said it's similar to an unsuccessful Liberty Resources enhanced oil recovery project in Williams County that failed to develop pressure in the formation. But Helms said the XTO project may have a better chance of success because it will have plenty of gas to inject.

Click here to listen to Helms' comments.

Helms said because the project is using produced natural gas, it will also be monitored as part of research into the prospect of storing the gas underground rather than flaring it.

Click here to listen to Helms comments.

Helms called the project a "win-win-win" that will test temporary storage, develop enhanced oil recovery and reduce flaring of produced natural gas.

Lignite Disappointed with Wind Tax Break

PTC Extended Despite Promise of Phase Out

The Lignite Energy Council expressed its frustration this week with US Senate passage of a package of tax extenders that includes a one-year extension of the production tax credit (PTC) for wind energy.

“It was our understanding that the tax credit for new wind facilities was to expire in 2019 and would not be renewed," said LEC President Jason Bohrer. "We know the lignite industry can compete against other generation sources when the playing field is level, but when the federal government continues to tilt the field in favor of renewables and against traditional sources, our industry and the 15,000 direct and indirect employees suffer.”

The PTC provides a credit for each kilowatt hour of energy production for qualified renewable energy facilities. The PTC was reduced to 40% for wind facilities that started construction in 2019, and was to expire for years 2020 and beyond. But the Senate's extender package actually increased the credit to 60% for projects that begin construction in 2020. That leaves wind developers in a bind if they already took steps to begin construction in 2019 to take advantage of the 40% credit in anticipation of its expiration.

Bohrer said the lignite industry will continue to push for a level playing field for coal.

“We will work on new legislation and incentives such as 48A tax reform (tax incentive for investment in capturing carbon dioxide) which will strengthen the industry,” Bohrer said. "But with a changing market and the now continued uneven playing field, thousands of our mine and plant workers along with those countless thousands who support the industry see the extension of the wind PTC as making an uphill climb even harder.”

The tax extenders package does not affect the credit for solar which is is scheduled to phase down from a 30% credit for construction beginning in 2019, to a 26% credit for construction in 2020, a 22% credit for construction in 2021, and a 10% credit for construction started in 2022.

Reclamation Conference Coming to Dickinson

Registration is now open for the 8th Annual ND Reclamation Conference scheduled for February 25-26 at the Ramada Grand Dakota Hotel and Conference Center in Dickinson. Participants can expect a robust discussion of the technologies and practices that can be used to move reclamation forward. 

The opening night of the conference will feature a keynote address and a trade show mixer with more than 20 vendors. Click here to view the conference website. 

Dr. Thomas DeSutter will be the keynote speaker addressing current and potential remediation strategies for brine spills. Dr. DeSutter is an environmental soil scientist at North Dakota State University.

Click here for conference information including participant registration and booth reservation and sponsorship opportunities. Click here for a conference poster.

A Census Question: Where Do I Live?

(From Williams County Complete Count Committee)

It doesn't matter from where you obtained your driver's license or from what country you are a citizen, the Census counts you where you live and sleep most of the time.

I work in Williston for two weeks and then go back home for two weeks. Where do I live?

Complete the Census using the address where you live and sleep most of the time. If you are in Williams County for 6 months and 1 day, use your local address as your primary residence when completing the Census. Don't forget to count your roommates!

I work in Williston for two weeks and then go back home for one week. Where do I live?

For the purpose of the Census, your primary residence is Williston, and you should fill out the Census accordingly. Normally live in a hotel? That's okay! Just use the location (e.g. Williston) of the hotel you stay in most often or are in on Census Day, April 1st.

I work and live in Tioga for 10 months out of the year, but my spouse and kids live back home. Where do I live?

For the purpose of the Census, your primary residence is Tioga, and you should fill out the Census accordingly. Your spouse and kids should complete the Census for where they live those 10 months out of the year.

If I have a Minnesota driver's license, hunting license, and fishing license, will filling out the Census with an address in Williston make me lose those?

Nope! Remember, the Census is about where you live and sleep most of the time and Census results can only be used to produce statistics.

I live in an apartment with 10 other people, but our landlord only thinks four people live here. Should I still fill out the Census for all of us?

Yes! Complete the Census for all 11 individuals living in the residence. Census results are confidential and are kept confidential for 72 years (until 2092). Census results can only be used to produce statistics, they cannot be provided to your landlord to get you in trouble.

I live in a college dorm in Williston, but my parents live in Montana. Should they fill out the Census for me?

If you live in your dorm in Williston for at least 6 months and 1 day a year, you will be counted as a Williston resident and your parents should not include you in their Census count. Since you live in a college dorm, you will automatically be counted as part of the "Group Quarters" Census Operation.

I attend college in Williston, but live off campus. My parents live in Nebraska. Should they fill out the Census for me?

If you attend college and live off campus in Williston for at least 6 months and 1 day a year, you should complete the Census yourself (and include any roommates) online, by phone, or by mail and your parents should not include you in their Census count.

Click here to download this information as a printable poster.

Engaging the Workforce

GNDC Hosts CEO Roundtable

The Greater North Dakota Chamber is hosting its first 2020 CEO Roundtable on Wednesday, January 15, at the Hess Corporation office in Minot. Held four times a year, the CEO Roundtable brings CEOs, presidents and company owners together for an exchange of information, ideas and insights. 

The theme of this roundtable, Engaging Workforce, impacts all companies no matter their size, industry or location. This event will feature MBI Energy Services VP of Human Resources Patrick Bertagnolli along with Katie Ralston, the manager of workforce projects and programs at the ND Department of Commerce. Organizational Development Specialist from Gate City Bank, Heather Ostrowski, will be presenting with a panel of representatives from Generation Z. 

The event runs from 10:00 a.m. to 3:00 p.m. and is open to CEO/C-Suite leadership as well as company owners, managers, supervisors, and other company leaders to come together to exchange information, spark ideas, and network. 

Click here to see the full agenda and registration information.

REGISTRATION NOW OPEN 

Williston Basin Petroleum Conference 

After a long, cold winter it will be nice to see springtime and the 2020 Williston Basin Petroleum Conference scheduled for Bismarck. Along with green grass and spring temperatures, expect to see another excellent line-up of speakers plus a sold-out trade show. 

The new conference website features opportunities to enhance the participant experience and increase exposure. Registration is now open for the event scheduled for May 19-21. Click here to register.

The website also features new information and features for exhibitors including an interactive map to allow vendors to select specific booths. Space will fill quickly so conference organizers suggest making plans now. 

Energy Impact Grants Available

The Board of University and School Lands is accepting applications for grants available to oil and gas development-impacted political subdivisions including cities, counties, school districts, and other taxing districts.

The grants are targeted to offset costs incurred for an emergency or unanticipated incident where the damage is directly related to, or impacted by, current oil and gas development. An advisory committee will review the eligible applications and make recommendations to the Land Board, which will make the final decision to award the grants.

The Energy Infrastructure and Impact Office will accept applications from eligible political subdivisions through 5:00 p.m. CST on January 31, 2020. Late applications will not be considered.

Click here for additional information or email energyimpact@nd.gov.

Annual Meeting Presentations On Line

Links to slide presentations shared during the WDEA 2019 Annual Meeting have been uploaded to the WDEA web site. Presentations are available at this  link.

Quick Connect

Factoid of the Week

Americans have traditionally relied on a variety of sources for their electricity. In 2018, power plants in the U.S. generated about 4,178 billion kilowatt hours of utility-scale electricity. About 35 percent of that generation came from natural gas, 27 percent from coal; 19 percent from nuclear energy; 7 percent from hydroelectricity; 6.6 percent from wind; and 1.6 percent from solar.

Source: Institute for Energy Research

Upcoming Events

January 7

Interim Education Policy Committee

Bismarck

January 8

Education Funding Formula Review Committee

Bismarck

January 14

Interim Employee Benefits Programs Committee

Bismarck

January 15

GNDC CEO Roundtable

Minot

January 15

Interim Commerce Committee

Bismarck

January 29 - 31

NDACE County Roads Conference

Fargo

February 4  

Interim Judiciary Committee

Bismarck

February 24 - 27

NDSC 47th Annual Safety & Health Conference 

Bismarck

February 25 - 26

8th Annual ND Reclamation Conference

Dickinson 

May 19 - 21

Williston Basin Petroleum Conference

Bismarck