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protect the public from harm, but they will
have public input on new rules this spring
and summer.
Laws and rules are made to level the playing
field for everyone working in the Bakken.
A good example was the illegal dumping of
filter socks near Noonan, ND. Filter socks
pose a risk to human health if their concentration
is above natural limits. We are exposed
to naturally occurring radiation every
day, but certain concentrations can be toxic,
so rules will be created to curb this illegal
activity. Hopefully, the fine can recover the
clean-up costs.
Some of our members from the communities
of Williston, Watford City, Dickinson
and Minot, ND outlined their issues, along
with oil county commissioners, this February
at “A Western Conversation” meeting
hosted in Bismarck, ND by the North
Dakota Association of Oil & Gas Producing
Counties and Vision West ND. After
looking to increase their infrastructure capacity,
they discovered the “sunset” provision
put on last legislative session in a new
funding formula from House Bill 1358
meant they would miss the construction
season of 2015. Those cities have taken on
debt at a time when the state’s coffers are
building surpluses.
The “sunset” is a legislative term meaning
that the new law ends and the old law
takes effect. The new funding from 2013
session ends June 30, 2015. The challenge
for these communities is to provide necessary
housing for a workforce expected to
top at 65,000 people, as the Bakken and
Three Forks is “mined” or produced over
the next 30 years. Williston Mayor Ward
Koeser says the cities cannot afford to miss
a construction season.
Oil companies pressure for more housing
to retain their employees; the state
keeps inviting workers to come. If the
energy companies have adequate housing,
they will retain employees and, ultimately,
lower their costs. It is a challenge and we
are looking for solutions. The governor
and the Legislature’s budget section approved
some stop-gap measures, but the
real solution has yet to be implemented.
The Williams County sheriff’s department
truck regulatory staff used to work
8:00 a.m. to 5:00 p.m. On March 14,
2014, their department went to a 24-hour
schedule, looking for overweight, unpermitted
trucks running illegally on county
roads. They were suspicious that some
trucks were running at night to evade
the scales, so they changed their enforcement
hours. Trucking companies that run
Bakken
Full Speed Ahead
legal weights said, “Good.” They bid jobs
against the companies that try to take the
illegal shortcuts, and this move to weigh
more trucks at night levels the playing
field.
The train derailment and fire near Casselton,
ND, and others across the country
brought federal attention to the safety of
the railcars transporting Bakken crude.
With 70 percent of Bakken oil being
transported by rail, it is a challenge to the
Pipelines & Hazardous Materials Safety
Administration and the United States
Department of Transportation to develop
tank car requirements that improve public
safety. They had considered new rules since
2012 but recent accidents brought the
rulemaking to the forefront. The North
Dakota Petroleum Council said, “Good;
get out.” And BNSF also announced a
track improvement for its line from Minot,
ND to Glasgow, MT, and promises to
be more responsive to farm contracts.
“We expect pipeline operators in North
Dakota to use best practices, and that may
mean going above and beyond existing requirements
to monitor and control pipeline
flows,” said Gov. Dalrymple, following
a major pipeline spill.
Pipelines from the Williston Basin have
the capacity to ship 583,000 barrels of oil
per day. Three major pipeline projects,
scheduled to be completed by late 2014,
are expected to increase shipping capacity
by 200,000 barrels of oil per day. Other
pipeline projects, including the proposed
Enbridge Sandpiper pipeline, which would
transfer as much as 225,000 barrels of oil
per day to eastern United States markets,
are in various stages of development.
Pipelines will fail at times; but as a
state, we can work to ensure more success
with pipeline regulation and reclamation.
Special places in western North Dakota
drew some attention as new rules were
discussed. The North Dakota Industrial
Commission decided to limit comment to
public lands, leaving private lands alone.
Wildlife habitat and view-shed issues will
likely challenge all of us as the Bakken
moves into our rural landscape.
Flaring. So much is written on flaring, I
dare not step into it. It seems the challenge
of flaring creates business opportunity for
those who can find solutions. According to
the Prairie Business Magazine, “The North
Dakota Industrial Commission in March
adopted several steps aimed at curbing
natural gas flaring as recommended by the
Department of Mineral Resources Director
Lynn Helms. Commission members voted
to begin requiring gas capture plans for all
drilling permit applications after June 1.
Operators also will have to provide an affidavit
stating they have provided the plan
to all natural gas gathering companies in
the area. Helms says companies are more
likely to invest in gas gathering projects if
they know the operator’s plans a year or
two in advance.”
All the challenges here create lessons
learned. Coming up in this edition of Basin
Bits, the knowledge of the Bakken and
Three Forks formations in North Dakota
are being applied in other states. In this issue,
look for news from Texas on the Eagle
Ford formation and how Mexico wants in
on the action. Read about how water will
be managed in North Dakota, about research
from the Energy and Environmental
Research Center in Grand Forks, ND,
and about emergency ambulance services
rising to the challenge with grants from the
state’s oil impact fund. And how can you
go wrong with a story on how oilfields are
hiring dogs that can detect pipeline leaks?
The summer of 2014 will certainly be
brighter and warmer than the winter “Polar
Vortex” of 2014, and the Bakken will
continue to be a challenge as it grows and
blossoms this summer. If I can find another
used car-with a working gas gauge, maybe
summer will be a little less challenging
for me. That is the perfect summer.
BASIN BITS | Spring 2014 23