Bakken oil producers now consider the oilfield to be "mature," which reflects the fact that wells have been drilled in most of the prime oil-producing formations, and that most producers do not have a drilling inventory beyond five or ten years.

Lynn Helms, director of the Department of Mineral Resources, said that was his main takeaway after attending NAPE week (North American Prospect Expo) in Houston where he spoke with CEOs of major oil and midstream companies. Helms said the Bakken remains profitable, but said he expects companies will be investing their profits in other developing oil plays, primarily the Permian Basin in Texas and New Mexico.

Click here to listen to Helms' comments.

Helms said the ESG Movement, which discourages investment in fossil fuels, has also taken a toll on oil production. He said pressure from the financial community has forced producers to focus on reducing emissions at the expense of oil production.

Click here to listen to Helms' comments.

Helms, who held his monthly Director's Cut news conference this week, said production in the month of December was down slightly from the previous month, which he attributed to the onset of winter. Crude oil output averaged 1.137 million barrels per day in December, down about 21,000 bbl/day from November. 

Natural gas production also dropped in December, averaging 2.99 billion cubic feet per day, which was about 84 million cubic feet per day less than November.

Click here to read or download Helms' Director's Cut.

The Lignite Research Council voted unanimously today to recommend approval of a $5.4 million grant request for a Construction-Ready Engineering, Scheduling and Pricing Terms (CREST) study on Project Tundra.

The project at Milton R. Young Station near Center is designed to capture 90 percent of the carbon dioxide produced at the lignite-fired power plant. It would amount to about 4 million metric tons per year, which is the equivalent to taking 800,000 gasoline-fueled vehicles off the road.

The CREST study is aimed at helping pave the way for financing and the potential start of construction by the end of 2022. The grant recommended today by the LRC would cover half of the estimated $10.8 million cost of the study. Final approval will be considered next week at a meeting of the ND Industrial Commission. 

Minnkota Power Cooperative is leading the project, along with research support from the Energy & Environmental Research Center at the University of North Dakota. The study is the final step needed to produce construction-ready engineering, scheduling, and pricing for a commercial CO2 capture system retrofitted to a power plant. The CREST work will include (a) steam turbine modeling for steam supply for CO2 capture, (b) designing the systems, piping, and structures needed for steam integration, (c) engineering for other impacts of an extraction steam supply strategy, (d) design integration of optimization opportunities that are aimed at reducing the projected cost of CO2 capture, and (e) a more detailed emissions analysis, icing studies and dispersion modeling.

The goal of Project Tundra is to demonstrate post combustion CO2 capture (PCCC) and storage in North Dakota, preserving the use of lignite and the associated jobs, ensuring enough reliable and dispatchable power is on our grid and moving North Dakota closer to its carbon neutral goal. The study will serve as a template for other PCCC projects under consideration in North Dakota. 

Click here to download the 48-page grant application. Click here to learn more about Project Tundra.

Gov. Doug Burgum challenged policymakers to work toward a goal of making North Dakota the top state in the nation in per capita gross domestic product (GDP) during this annual State of the State Address in Fargo.

Burgum said the Commerce Department is engaged in more than $30 billion of identified projects where companies have indicated an interest in coming to the state to invest in value-added energy or value-added ag projects.

"During the last year alone, companies announced plans for a $350 million soybean crushing plant in Spiritwood, a $350 million wet corn mill in Grand Forks, a $2.8 billion gas-to-liquids complex in Williams County, a hydrogen hub near Beulah, a $1.9 billion data center near Williston and a $4.5 billion carbon capture pipeline and storage project," Burgum said. “This massive investment in our state didn’t happen by accident. It’s the culmination of years, even decades, of intentional effort to build one of the nation’s most stable and business-friendly tax and regulatory environments."

Last year North Dakota ranked fourth in the nation in GDP. Burgum said the state trails only Washington, Massachusetts and New York, and encouraged state leaders to work toward taking over the top spot.

"We have an advantage. Small number of people, huge number of resources," Burgum said. "With all of these projects that are in this development pipeline, we have a shot at doing it. Let's put that as a goal. Let's go make it happen."

Burgum said since announcing his goal of making North Dakota carbon neutral by 2030, the state has seen a "massive increase in the flow of capital."

"They're coming here because of our business friendly environment," Burgum said. "They're coming because of our geologic storage capacity. They're coming here because of the energy that we have that they can use to run their plants. And they're coming here because we're the first state in the nation that actually can permit a Class VI well and store it and pay the landowners for that CO2."

Burgum encouraged state leaders to continue efforts to build on the momentum to develop a carbon dioxide storage industry in North Dakota.

Click here to listen to Burgum's comments.

Burgum said North Dakota is growing stronger every day, but pointed out with 30,000 open jobs, state leaders need to tackle workforce challenges that will make the state more attractive to workers and their families.

"We must direct our focus and resources to infrastructure that supports strong families and strong communities,” Burgum said. “Our people need support to increase flexibility and workforce mobility. Our citizens deserve high-quality education for all ages, from early childhood education to higher education. Our families need affordable and reliable child care. Our communities need behavioral health resources and amenities for all generations.”

Click here to watch a video of Burgum's speech. Click here to read a transcript of his remarks.

Wyoming Governor Mark Gordon used his State-of-the-State message this week to criticize Biden administration energy policies, which he said "hit Wyoming squarely in our breadbasket."

Gordon said Biden's actions regarding public lands and energy are deeply flawed, and serve no purpose other than driving up the price of energy.

Click here to listen to Gordon's comments.

The Petroleum Association of Wyoming estimates that having no oil and gas lease sales has deprived the State of Wyoming of about $47 million in revenue since January 2021.

Gordon, similar to ND Governor Doug Burgum, touted innovation, not regulation, as the way to deliver the energy the world needs and simultaneously address climate concerns.

"We have a plethora of opportunities coming our way: advanced nuclear; carbon capture and utilization and sequestration; bio-energy; hydrogen; better, cleaner ways to burn and use coal," Gordon said. "We must seize these opportunities. And we will, by fighting ridiculous regulation, promoting sensible development, and embracing new opportunities."

Click here to read or download a transcript of Gordon's remarks.

The ND Department of Environmental Quality has scheduled a public hearing February 23 in Williston on the application of Secure Energy to dispose of TENORM waste at its landfill north of Williston.

TENORM - technologically-enhanced, naturally-occurring radioactive material - is generated through various oil production operations. It is typically found in filter socks used in produced-water disposal wells, and in pipe scale and tank bottoms. 

The DEQ hearing notice states that staff review of Secure Energy's application for a radioactive materials license indicates that the facility will comply with all applicable radiological health rules and there will be no significant detrimental effects to members of the public or the environment. The company previously received approval of a conditional use permit from the Williams County Commission (see article in July 2, 2021 WDEA newsletter).

In addition to the hearing, which is set for 6:00 p.m. Wednesday at the Williams County Commission Room, DEQ has opened a 30-day public comment period. The deadline to submit comments on Secure's application is March 7. Written comments should be directed to DEQ's Division of Waste Management, 4201 Normandy Street in Bismarck, or emailed to ram@nd.gov.

Click here to read the meeting notice.

The ND Board of University and School Lands (Land Board) voted this week to offer the position of Commissioner of the Department of Trust Lands to Bismarck attorney and investment manager Joseph Heringer.

Heringer is a licensed attorney with 14 years of experience in the trust and investment industry. He currently serves as a senior wealth manager for Bravera Wealth in Bismarck, a position that has provided experience managing land, mineral rights and investments and working with oil and gas companies. Heringer also serves on the company’s Investment Committee, overseeing all trust investments, managing investment portfolios and establishing investment policies and procedures.

North Dakota Chief Operating Officer Tammy Miller, who coordinated a search committee that recommended Heringer for the position, said he was a clear favorite among the candidates who were interviewed.

Click here to listen to Miller's comments.

The five-member Land Board, which consists of Gov. Doug Burgum, State Superintendent Kirsten Baesler, State Treasurer Thomas Beadle, Secretary of State Al Jaeger and Attorney General Drew Wrigley, spent about 45 minutes asking Heringer questions about his interest and qualifications. Burgum, who joked that the board should be renamed the "Minerals Litigation Board" because of the extensive number of legal actions in which the department is engaged, asked Heringer if he was up to speed on the litigation and how his legal background would contribute to his performance.

Click here to listen to Heringer's response.

Following the group interview with Heringer in open session, the Land Board voted 5-0 to offer him the position. Heringer officially accepted the position Thursday afternoon.

“Joseph Heringer brings highly applicable experience in managing land, mineral rights, trusts and investments, as well as a legal background that will greatly benefit the Department of Trust Lands and serve the citizens of North Dakota well,” Burgum said.

Land Board members voted in October to open a search for land commissioner after former Commissioner Jodi Smith resigned to take a position with the Metro Flood Diversion Authority in Fargo. The department is responsible for management and oversight of educational trust funds, mineral acres and other assets for the benefit of public schools and institutions in North Dakota. It administers about $7 billion in financial assets, the largest of which is the Common Schools Trust Fund. 

The Federal Energy Regulatory Commission (FERC) released two policy statements this week that will require companies to assess the potential impact of  climate change in applications to construct natural gas pipelines.

Members of the Congressional Western Caucus assailed the new regulations as another attack from the Biden administration on American energy producers.

“Instead of recognizing the need for affordable, safe, and reliable domestic energy development, FERC has decided to prioritize an unnecessarily political agenda," said Congressional Western Caucus Chairman Dan Newhouse, R-WA. "These priorities will only delay much-needed current and future projects, disadvantage communities who rely on natural gas infrastructure, and lead to continued rising energy costs across the country.”

The FERC policy will add additional criteria to the interstate natural gas pipeline permitting process, including an analysis of greenhouse gas emissions. FERC also issued an interim policy statement that sets a threshold of 100,000 metric tons/year of GHG emissions. Projects under consideration with emissions above that level would be required to prepare an environmental impact statement. The policy was adopted on a 3-2 vote, with the three Democrat members supporting it, and the two Republican members voting against it.

ND Congressman Kelly Armstrong joined colleagues in lambasting the policy changes. 

“The Biden administration has been waging a war on American energy from the very beginning. They have consistently worked to cripple domestic production while simultaneously begging foreign governments to increase supplies,” said Armstrong. “FERC's new policy doubles down on putting our country’s interests last, and will make it even harder to build critical infrastructure needed to provide reliable and affordable energy for North Dakotans and all Americans.”

Click here to learn more about the FERC policy statements.

Senators John Hoeven and Kevin Cramer joined Senate colleagues this week in pressing for Department of Energy Secretary Jennifer Granholm to release the Keystone XL Pipeline jobs loss report that was due to Congress on February 13.

On his first day in office, Joe Biden unilaterally revoked the permit for construction of the Keystone XL pipeline, which was expected to provide some 11,000 direct high-paying jobs and up to 60,000 indirect jobs.

“At the time of its closure, the Keystone XL Pipeline project was already under construction and employed more than 1,500 workers. By the end of 2021, the Keystone XL pipeline was projected to provide approximately 11,000 jobs," the senators wrote. "The closure erased thousands of real, high-paying jobs and approximately $800 million in wages."  

“Knowing the full impact of the President’s actions is important to the American people. We urge you to complete your obligation under the law and release your report to Congress immediately.” 

In addition to Hoeven and Cramer, the letter was signed by nine other Republican senators. Click here for the full text of the letter.

The North Dakota Department of Transportation, in partnership with the Upper Great Plains Transportation Institute, has announced plans for the 2022 ND Transportation Conference to be held at the Bismarck Event Center March 1-2, to be followed March 2-3 by the ND Asphalt Conference in Mandan.

The conference theme is One Team, One Network, One Goal. The two-day event will feature three tracks of presentations, an exhibit hall and sponsorship opportunities. Public or private sector individuals who work within the transportation network are welcome to attend. The standard registration rate is $100 for individuals, $50 for employees of public agencies, and students are free. Click here to see the preliminary agenda.

The event kicks off Tuesday, March 1, with opening remarks from the ND Department of Transportation, followed by a keynote address on workforce issues. Other breakout sessions during the event will cover engineering, safety, data collection, project partnerships and new technology.

The conference concludes at noon on Wednesday, March 2, to be followed by the ND Asphalt Conference, which kicks off at 2:00 p.m. at the Baymont Inn and Suites in Mandan. Click here to see the agenda.

Click here for more details or to register for the Transportation Conference. Click here for more information about the Asphalt Conference.

The Lignite Energy Council is accepting applications from educators across the region for the LEC's 36th annual teacher's seminar, to be held June 13–16 at the National Energy Center of Excellence on the campus of Bismarck State College. 

Attendance is limited to 60 teachers. The educational seminar is open to elementary and secondary teachers from Minnesota, Montana, South Dakota and North Dakota. It was revamped in 2009 and made into a two-credit class which lasts for four days. Participants can receive credit from UND, NDSU or Minot State. Educators who have taken the course in the past are eligible to apply and attend again, although some restrictions apply. 

The seminar will provide teachers with the information and educational materials they need to teach their students about how lignite is mined and used to produce electricity for homes, farms and businesses in the Upper Midwest. In addition, the seminar covers lignite’s economic impact on the region, as well as important environmental issues affecting the lignite industry. One day is devoted to touring mining operations, reclamation sites and coal conversion facilities.

Since 1986, more than 3,400 teachers have attended the seminar. Free lodging is provided in a Bismarck State College residence hall (two people per room), and meals will also be provided.

Click here to see a video about the seminar. Click here to apply.

The ND Department of Career and Technical Education plans to roll out a new work-based learning module for RUReady.ND (RUReady.ND.gov), a career readiness application produced by XAP Corporation.

North Dakota-based Golden Path Solutions, which provides a workforce platform that matches employers with students, is partnering with XAP to deliver the solution for North Dakota.

“We are very excited to develop this innovative work-based learning module to serve the students, school administrators and employers of North Dakota,” said Eddie Monnier, CEO of XAP Corporation. “This module will enhance RUReady.ND to help students find their best-fit career choice, while also supporting workforce development needs in the state.”

Work-based learning offers students the opportunity to experience careers first-hand, where they gain better understanding of their aptitudes, interests and skills, leading to higher graduation rates, better academic outcomes and increased engagement. Work-based learning experiences also give students the opportunity to strengthen key employability skills, including critical thinking, collaboration, communication and taking initiative.

“North Dakota Career and Technical Education is a key player in the delivery of work-based learning programs,” said Wayde Sick, director of the ND Department of Career and Technical Education. “We are eager to continue enhancing and growing opportunities for work-based learning for our students, and by integrating a work-based learning module into RUReady.ND, we believe we can better connect students to employers while streamlining program overhead for educators.” 

When launched later in 2022, the new RUReady.ND Work-Based Learning Module will allow students to explore and match with work-based learning opportunities, then document their successful experiences. Educators will gain efficiencies in managing work-based learning opportunities’ data and processes related to student applications and reviews. Employers will be able to independently enter and manage their own work-based learning opportunities for students, expanding on the scope of opportunities available for North Dakota schools.

Click here for ND Career and Tech Ed's Career Resources page.

The Badlands Advisory Group (BAG) has scheduled meetings on consecutive days in early March to discuss natural resource development in western North Dakota and methods to minimize and mitigate impacts on the environment. 

The meetings will be held March 7 at the Mountrail County South Complex in Stanley, and March 8 at the Killdeer Community Center. The events will begin at 10:00 a.m. local time with presentations from Jesse Beckers, energy program manager with the ND Natural Resources Trust, and Cody Vanderbusch from the Department of Mineral Resources who will describe DMR's reclamation projects.

The noonhour features a presentation from Kevin Sedivec, NDSU Rangeland Specialist, who will discuss recent reclamation efforts and lessons that have been learned.

Ag Commissioner Doug Goehring will lead the afternoon session with a description of pipeline and wind reclamation efforts and landowner mediation programs.

The meetings are sponsored by BAG and the Vision West Consortium. Interested individuals are asked to pre-register by sending an email to VisionWest@dlnconsulting.com. 

The Badlands Advisory Group was formed in August 2016 after Covenant Consulting Group released a stakeholder assessment detailing the opinion and perceptions of western North Dakotans on oil development in the Badlands. Recommendations from the assessment included the development of an advisory committee to identify and work out the practical details of the assessment’s recommendations. 

BAG’s objectives were: 1) to think big picture at a landscape scale; 2) to prioritize the key issues that are most important and achievable; and 3) to identify practical, achievable action steps that would promote land stewardship.