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Inside: - Crosby Journal - Tioga Tribune
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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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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 />
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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 />
SHELDON WELDING &<br />
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701-664-2516<br />
Roger Baker • Hwy 40 S., Tioga ND<br />
13
Latest Oil And<br />
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14
Ronald C. Koehler<br />
President<br />
Lorraine A. Koehler<br />
Vice President<br />
CONDOR<br />
PETROLEUM, INC.<br />
Exploration • Production<br />
417 2nd St. N.E. • P.O. Box 339<br />
Tioga, ND 58852<br />
Phone 701-664-2870<br />
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15
The latest wireline tools for cased<br />
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17<br />
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18
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19
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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
Premier Drilling Contractor Serving the Bakken Region<br />
Precision Drilling consists of High Performance, High Value Top Drive Drilling Rigs.<br />
At Precision, we have the BEST people, the BEST equipment and a company culture<br />
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YOU HAVE THE COMMITMENT AND SUPPORT FROM MANAGEMENT<br />
Please let us know how we can Support you in achieving Target Zero!<br />
23