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<strong>Inside</strong>:<br />

Cookfest Schedule<br />

Page 2<br />

ND Petroleum Council reaches out<br />

Page 3<br />

Baytex works around the weather<br />

Page 4 - 5<br />

Progress Zone<br />

Page 12<br />

Supplement to The Journal, Crosby, ND<br />

Wednesday, July 20, 2011<br />

On the cover: Driller Paul Royer and Derrick Hand Pete<br />

Williams at the controls of the Ensign 67 rig, drilling on the<br />

Colby 23-14-160-99H, in Garnet Township, Divide County.<br />

1


Cookfest Schedule<br />

CookFest is a big community BBQ that provides an opportunity for industry<br />

members to get better acquainted with the folks living in the communities<br />

where they live and work every day.<br />

There is lots of fantastic food and fun to be had!<br />

2:30-4:30 p.m. CDT – Bakken Basics Education Session<br />

Speakers<br />

n Kathy Neset, Neset Consulting Service, Tioga<br />

n Lynn Helms, Director, Department of Mineral Reources<br />

n Justin Kringstad, Director, ND Pipeline Authority<br />

n Mick Urban, ONEOK<br />

n Vicky Steiner, Executive Director, ND Oil and Gas Producing Counties<br />

n Ron Ness, President, ND Petroleum Council<br />

n Hess Royalties/Landman<br />

5 p.m. - 8 p.m. CDT – food<br />

Educational booths<br />

n ND Petroleum Council<br />

n Department of Mineral Resources<br />

n Geology<br />

n ND Pipeline Authority<br />

n ONEOK<br />

n Alliance/Aux Sable<br />

n Enbridge<br />

n Energy Careers<br />

n Oil and Gas Research Council<br />

n ND Association of Oil and Gas Producing Counties – Vicky Steiner<br />

n City of Crosby<br />

Local entertainment<br />

n Bob & Laurie Enerson<br />

n Peterson Family<br />

Kids’ entertainment<br />

n Face Painting<br />

n Rock climbing wall<br />

8 grill teams:<br />

n Hess & Penkota Wireline<br />

n Murex & Superior Well Service<br />

n Baytex & Go Wireline<br />

n Continental Resources & Jericho Services<br />

n Newfield, Missouri Basin Well Service, and Wyoming Casing<br />

n Samson and Halliburton<br />

n SM Energy Company & Power Fuels<br />

n XTO and S&S Sales/EnerMAX<br />

Joel Heitkamp Show:<br />

n Radio personality Joel Heitkamp will present a live, statewide radio broacast<br />

from 3 p.m. to 5 p.m.<br />

Full Service<br />

Water Transportation &<br />

Trucking Services<br />

Office: 701-965-6031<br />

Fax 701-965-6033<br />

E-mail: trtransport@nccray.net<br />

Web: www.tnrtransport.com<br />

2


ND Petroleum Council reaches out<br />

By Cecile Wehrman<br />

It’s a simple message.<br />

Oil Can!<br />

And it’s the name of the<br />

North Dakota Petroleum<br />

Council’s effort to “engage<br />

and educate” the public<br />

about the oil industry.<br />

The petroleum council<br />

seeks to do that in a number<br />

of ways, said Ron Ness,<br />

executive director.<br />

“There are three guiding<br />

principles,” he said.<br />

Listen First<br />

The first thing the organization<br />

aims to do is to be a<br />

good listener.<br />

They’ve strived to do that,<br />

Ness said, through 25 town<br />

hall meetings across the oil<br />

patch in the past few years.<br />

Similarly, they conducted<br />

a survey last fall to try to<br />

identify hot topics as well as<br />

the public’s general perception<br />

of the oil industry.<br />

Develop partnerships<br />

Second, the council determined<br />

partnerships should<br />

be developed, particularly<br />

on issues relating to roads.<br />

Ness said the development<br />

of a county road<br />

task force is a case in<br />

point.<br />

“We’re going to sit<br />

down and create a<br />

regular dialog with<br />

the counties,” he said,<br />

especially given the<br />

extreme road situations<br />

that developed<br />

with record moisture<br />

this spring and summer.<br />

Ness would like to<br />

see the council facilitate<br />

relationships between<br />

companies and<br />

local governments to<br />

work on road repairs.<br />

Further, he wants to<br />

see a one-stop shop<br />

for truckers to access<br />

road closure information.<br />

A focus on best<br />

practices, including<br />

reducing speed to<br />

reduce damage and<br />

zero tolerance for infractions<br />

are other aspects being<br />

looked at.<br />

Respect others<br />

The third principle is to<br />

respect others. Ness said the<br />

council does that by offering<br />

education and reaching out<br />

to the communities impacted<br />

by oil.<br />

The Bakken Rocks Cookfests<br />

is a way to draw<br />

people out to access<br />

some of the information<br />

the council has<br />

to offer.<br />

“We hold our ‘Bakken<br />

Basics’ education<br />

sessions and they’ve<br />

been wildly popular,”<br />

Ness said.<br />

The sessions,<br />

which will run from<br />

2:30 p.m. to 4:30 p.m.<br />

on Tuesday, July 26,<br />

will feature a number<br />

of oil industry professionals<br />

talking about<br />

everything from geology<br />

to pipelines.<br />

“We have found<br />

that there is an<br />

incredible curiosity,”<br />

Ness said, among<br />

people who want to<br />

know what the oil<br />

industry is all about.<br />

That’s partly because<br />

many people<br />

have a mineral interest in the<br />

area, but also because everyone<br />

is impacted in some way<br />

or another by the work going<br />

on in the oil patch.<br />

Ness encourages everyone<br />

in the community to take<br />

part in the cookfest, which<br />

includes free food and fun<br />

for all.<br />

“When we do these cookfests<br />

it’s a chance for the<br />

companies to ‘put a face on’<br />

to the community,” he said.<br />

“Everyone is welcome to<br />

attend.”<br />

A number of teams will<br />

partner an oil field explorer<br />

with service industry partner<br />

to produce different<br />

types of food.<br />

In addition, many will offer<br />

merchandise give-aways or<br />

activities for kids, including<br />

face painting and a rock<br />

climbing wall.<br />

“It really is kind of a carnival,”<br />

he said, with a family<br />

friendly atmosphere. “We’re<br />

very strict on these that<br />

they’re alcohol-free events.”<br />

As well, “Each operator<br />

provides an ‘experience’ at<br />

their booth. We judge them<br />

on the experience,” Ness<br />

said, and the winners among<br />

the operators also receive<br />

prizes.<br />

3 rd Annual Bakken Rocks<br />

COOKFEST<br />

Good food - Good fun -<br />

Lots to learn for everyone!<br />

No alcohol permitted<br />

N O R T H D A K O T A<br />

PETROLEUM<br />

C O U N C I L<br />

July 26<br />

5:00 - 8:00 p.m. CDT<br />

July 28<br />

5:00 - 8:00 p.m. CDT<br />

Crosby<br />

Pioneer Village<br />

Watford City<br />

McKenzie Co. Fairgrounds<br />

Bakken Basics Education Sessions will be held at both locations<br />

from 2:30 - 4:30 p.m. CDT.<br />

Crosby - Pioneer Village<br />

Watford City - McKenzie Co. Fairgrounds (4H/Gymnastics Building)<br />

More info available at<br />

WWW.NDOIL.ORG<br />

Minot<br />

Tioga<br />

Stanley<br />

Williston<br />

Dickinson<br />

Beach<br />

Watford City<br />

www.powerfuels.com<br />

3


Baytex works around the weather . . .<br />

By Cecile Wehrman<br />

Exploration companies<br />

working in the Divide County<br />

area have been from extreme<br />

to extreme this year -- from<br />

blowing snow and record<br />

snowfall to a deluge of rain the<br />

likes of which have rarely been<br />

recorded.<br />

But the oil field never stops,<br />

and neither does Baytex Energy,<br />

USA.<br />

“We don’t ever halt, we just<br />

have to work through it,” said<br />

Donn Campbell, area supervisor<br />

for Baytex in Divide<br />

County.<br />

The company currently<br />

operates 27 wells in Divide<br />

County and has the potential<br />

to drill another 150 wells over<br />

the next five years.<br />

“Thirty wells a year, weather<br />

permitting,” Campbell said.<br />

Working in the winter is hard<br />

enough.<br />

“It’s very tough due to blowing<br />

snow, ground blizzards is<br />

what you guys call it. Snow<br />

removal off the township roads<br />

to keep production going. Drifting<br />

-- it was tough this winter,<br />

cold to operate. It’s hard to<br />

start,” said Campbell.<br />

Everyone was looking<br />

forward to getting caught up<br />

this spring, and being able to<br />

work in a little more forgiving<br />

environment, but that was not<br />

to be.<br />

“Last year the thaw was a lot<br />

slower,” and they could work<br />

around soft spots.<br />

“(There was) so much rain,<br />

then it froze, then it snowed,”<br />

Campbell said, and then it<br />

rained some more.<br />

Record rainfall created new<br />

bodies of water and connected<br />

existing ones, inundating as<br />

many as 200 roads -- many of<br />

which the oil companies rely<br />

on to service existing wells.<br />

“We’re back to producing 65<br />

percent of our wells,” Campbell<br />

said just after the July 4th<br />

holiday, and with no more significant<br />

moisture, that number<br />

will be improving.<br />

But it’s still not easy and it<br />

won’t be for some time.<br />

“We have several wells that<br />

we still don’t have access to<br />

due to road closures. There’s<br />

really no way around it. You<br />

just have to wait ‘til the water<br />

subsides. If we can’t, we’ve<br />

even built up roads, county<br />

and township roads, ourselves,”<br />

said Campbell.<br />

What Baytex is doing and<br />

what more and more oil companies<br />

are doing all the time,<br />

is to try to work with local<br />

officials to set some priorities<br />

and work cooperatively.<br />

Said Campbell, “We get with<br />

the county guys, of course,<br />

“We have several<br />

wells that we still<br />

don’t have access<br />

to due to road<br />

closures.”<br />

-- Donn Campbell<br />

Area Supervisor<br />

Baytex Energy USA<br />

county personnel, and township,<br />

and decide what we can<br />

do to access and get in and<br />

out – and the farmers, landowners.<br />

So far we’ve had great<br />

cooperation from landowners,<br />

township and county people.”<br />

The company is very flexible,<br />

he said, and willing to<br />

remedy what ever problems<br />

present themselves. In one<br />

case, that meant loaning a<br />

four-wheel drive vehicle to a<br />

landowner whose road was<br />

torn up.<br />

“If we move something and<br />

we tear it up and we make<br />

tracks, we fix it,” he said.<br />

If a landowner has too<br />

much water, the company has<br />

even sought temporary water<br />

permits to use slough water<br />

for fracing -- helping to alleviate<br />

the wear and tear and<br />

roads, as well as helping to<br />

open some roads inundated by<br />

water.<br />

“It has to be a health and<br />

The Ensign 67, drilling on the Colby 23-14-160-99H, in<br />

Garnet Township.<br />

Baytex Area<br />

Supervisor<br />

in Divide<br />

County<br />

Donn<br />

Campbell<br />

looks over a<br />

spread sheet<br />

with Julie<br />

Haugland at<br />

the Baytex<br />

field office<br />

south of<br />

Ambrose.<br />

Trainee John Fitzgerald (left) gets a hand with the slips from floor hand Scott<br />

Bradley, on the Ensign 67 rig.<br />

4


. . . in the Bakken oil patch<br />

safety issue for us to pump it out of a<br />

slough,” Campbell said.<br />

While the company might save a little by<br />

not paying for treated water that is trucked<br />

in, using slough water requires the company<br />

to either create a staging area near the<br />

well where the water can be treated or to<br />

pump it to an area where it can be treated.<br />

One thing Campbell is sure of, he’s not in<br />

Oklahoma anymore.<br />

The veteran oil man is more accustomed<br />

to conditions in that southern state, where<br />

you don’t have to scratch down very far to<br />

hit rock.<br />

“The difference is that there’s no ground<br />

bottom here. We have to do an extensive<br />

amount of location work compared to anywhere<br />

else,” he said, in order to construct a<br />

location that is workable.<br />

They’ve used a type of material called<br />

a geopad, which comes in perforated rolls<br />

that are laid over a location to help fix a<br />

foundation.Then they cover it with gravel<br />

before moving a rig onsite.<br />

Other companies are using various mattype<br />

systems to keep well sites accessible<br />

in muddy conditions.<br />

With two rigs currently under contract<br />

in Divide County, Campbell said Baytex is<br />

responsible for keeping about 70 people<br />

employed. Beyond that, he said, there are<br />

about 13 people in Divide County who work<br />

on the production side. Some, if not all of<br />

those jobs will remain as long as wells are<br />

producing.<br />

Ensign 67 Derrick Hand Pete Williams prepares to ascend the tower<br />

under the gaze of motorhand Chad Olheiser. The Ensign 67 is<br />

one of two rigs under contract to Baytex Energy USA. According<br />

to the Baytex corporate website, they participated in the drilling of<br />

12 wells in Divide and Williams counties during the first quarter of<br />

2011. One of those wells, the corporation reported, had a 30-day<br />

average peak rate of 775 barrels of oil per day. They expect to drill<br />

up to 300 wells in the area, with an average initial production rate<br />

of about 420 barrels of oil per day for each well.<br />

Photos by Cecile Wehrman<br />

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5


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6


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7


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• On campus, online and IVN options<br />

• Eighty-six percent of enrolled WSC students and nearly every degree-seeking<br />

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• Science addition groundbreaking July 20, 2011<br />

• Western Star Career and Technical Center grand opening August 18, 2011<br />

• Frontier Hall (new residence hall) grand opening August 25, 2011<br />

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8


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9


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10


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11


‘Progress Zone’ will encourage traffic safety<br />

By Cecile Wehrman<br />

The North Dakota Petroleum<br />

Council and the North<br />

Dakota Department of Transportation<br />

this summer are<br />

rolling out a new public<br />

awareness campaign aimed<br />

at making all drivers more<br />

safe on the road.<br />

“The biggest thing is addressing<br />

the concern with the<br />

increased amount of traffic,”<br />

said the DOT’s Mark Nelson,<br />

safety director.<br />

Though the project is expected<br />

to launch yet this summer,<br />

it’s taken many months<br />

to determine what the focus<br />

of the program should be.<br />

It all started last fall, said<br />

Kelly Wald, communications<br />

manager with the NDPC.<br />

“We were really focusing<br />

on safety,” she said, so they<br />

formed a safety committee<br />

to look at three keys: wellsite<br />

safety, ground disturbance<br />

and public safety.<br />

As well, she said, her<br />

agency conducted a public<br />

perception survey last fall,<br />

which identified housing and<br />

roads/traffic safety as the top<br />

two concerns among people<br />

polled.<br />

The DOT, in turn, received<br />

a grant of $20,000 from the<br />

National Highway Transportation<br />

Safety Administration<br />

to conduct a safety campaign.<br />

That money was supplemented<br />

with funds from an oil and<br />

gas research program grant.<br />

The goal -- to focus on creating<br />

driver awareness of increased<br />

traffic and to encourage<br />

safe driving habits.<br />

The name “Progress Zone”<br />

was coined and a logo developed<br />

to identify the messages.<br />

Wald said the title seems to<br />

fit what’s going on in the area<br />

these days.<br />

“Western North Dakota is<br />

really a ‘progress zone’ right<br />

now. There’s a lot of growth<br />

and development,” she said,<br />

and with that development<br />

comes added traffic.<br />

If there’s one overall message<br />

she hopes people will<br />

get from the campaign it is<br />

“be patient.”<br />

That message will be delivered<br />

through billboards,<br />

bumper stickers and giveaways<br />

at events like the Oil<br />

Can! Cookfest.<br />

Key components of the<br />

program, which will include<br />

a number of secondary messages,<br />

are still being developed,<br />

but Wald said reminders<br />

to pass with caution and<br />

to buckle up are sure to be<br />

among them.<br />

But Nelson said the campaign<br />

is not just aimed at the<br />

general public. Though longtime<br />

residents of North Dakota<br />

are greatly impacted by<br />

the change in trafic patterns,<br />

the messages about patience<br />

and safety are just as important<br />

for the truck drivers to<br />

receive.<br />

That said, Nelson believes<br />

the perception that an increase<br />

in fatalities or accidents<br />

involving semis is unfounded.<br />

Though the number of<br />

crashes and fatalities is definitely<br />

up in recent years, “It<br />

has not been disproportionate,”<br />

he said.<br />

He attributes the increased<br />

danger on North Dakota<br />

roads to “a lot of impatient<br />

type of driving,” including<br />

following too close for safety<br />

and passing at times when it<br />

isn’t safe.<br />

“Our priority is safety for<br />

everyone out there,” he said.<br />

Coming as he does from a<br />

law enforcement background,<br />

Nelson believes enforcement<br />

is important, “but I truly believe<br />

our educational campaign<br />

is necessary. It brings<br />

the message to the public that<br />

these are the issues we’re seeing<br />

out there. If we don’t get<br />

that message out there we’re<br />

not doing our jobs.”<br />

One thing is certain: Now<br />

that traffic has increased, it’s<br />

not going to go away any time<br />

soon.<br />

“Everybody has to get<br />

How dangerous<br />

are ND roads?<br />

The North Dakota Department<br />

of Transportation was<br />

happy to partner with the<br />

North Dakota Petroleum<br />

Council on a program to create<br />

awareness of the need for<br />

more patience among driers.<br />

Traffic accidents and fatalities<br />

are up.<br />

For instance, in 2010, there<br />

were 105 fatalities during<br />

the whole year, but already<br />

in 2011, there have been 37<br />

fatalities in the 17 oil and gas<br />

producing counties alone.<br />

“I think that number is telling,”<br />

said Mark Nelson, safety<br />

director for the ND DOT.<br />

In fact, the number of<br />

fatalities this year is up statewide,<br />

so it’s not just the oil<br />

patch.<br />

The number of fatalities<br />

statewide this year so far is<br />

140 -- the highest since 1982.<br />

along,” Nelson said, and that<br />

means a change in driving<br />

habits for everyone.<br />

NORTHWEST<br />

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Inc.<br />

Potable Water Transportation.<br />

Well Watching.<br />

Portable Toilets.<br />

Jeff Greaves, Owner<br />

Crosby, ND 58730-0510<br />

Call 701-965-6543<br />

Cell 701-641-8614<br />

Cell 701-240-6282<br />

greaves@nccray.net<br />

12


North Dakota Daily Oil Produced and Price<br />

450,000<br />

$450<br />

400,000<br />

$400<br />

350,000<br />

$350<br />

BOPD<br />

300,000<br />

250,000<br />

200,000<br />

150,000<br />

100,000<br />

$300<br />

$250<br />

$200<br />

$150<br />

$100<br />

ND Sweet $/BO<br />

50,000<br />

$50<br />

0<br />

$0<br />

1970<br />

1975<br />

1980<br />

1985<br />

1990<br />

1995<br />

2000<br />

2005<br />

2010<br />

2015<br />

BOPD<br />

$/BO<br />

15<br />

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13


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15


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18


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20


MONTHLY OIL PRODUCTION FOR LOCAL COUNTIES<br />

300,000<br />

250,000<br />

200,000<br />

150,000<br />

100,000<br />

50,000<br />

0<br />

1977 1982 1988 1993 1999 2004 2010 2015<br />

BURKE<br />

MONTHLY OIL PRODUCTION FOR LOCAL COUNTIES<br />

800,000<br />

700,000<br />

600,000<br />

500,000<br />

400,000<br />

300,000<br />

200,000<br />

100,000<br />

0<br />

1977 1982 1988 1993 1999 2004 2010 2015<br />

21<br />

DIVIDE


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23

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