BASIN BITS | Spring 2017 7
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Spring 2017 BASINThe Official Publication of the Western BITS Dakota Energy Association A New President. A New Energy Policy. A New Frontier. Calling All Cultivators: Can We Keep Coal Viable? On the Hunt for Gold A New Sense of Optimism COMPLIMENTARY PLEASE TAKE ONE! Table of Spring 2017 Contents BASIN BITS Basin Bits is Printed for: The Western Dakota Energy Association OPENING REMARKS 29 Producing the Bakken: A Cost Association Office Analysis 1661 Capitol Way 9 From the Desk of the Western Bismarck, ND 58501 Dakota Energy Association’s 31 IOGCC Honors Lynn Helms with www.ndenergy.org President Prestigious Award Geoff Simon, Executive Director 11 From the Desk of the Western 32 On the Hunt for Gold Tel: (701) 527-1832 (cell) Email: [email protected] Dakota Energy Association’s 34 Legislative Line: Mixed Results for Printed by: Executive Director WDEA’s 2017 Legislative Agenda Matrix Group Publishing Inc. Please return undeliverable addresses to: 15 From the Desk of the Petroleum 35 Powering the Pursuit of Excellence 5605 Riggins Court, Second Floor Technology Research Centre PO Box 41270 Reno, NV 89504 Toll-free: (866) 999-1299 IN THE SPOTLIGHT Toll-free fax: (866) 244-2544 SPECIAL SECTION www.matrixgroupinc.net 36 ONEOK: Dedicated to Creating 17 Celebrating 25 Years of the Value President & CEO Jack Andress Williston Basin Petroleum Conference Operations Manager WDEA NEWS Shoshana Weinberg [email protected] 37 Regional Roundup A CLOSER LOOK Publishers 38 Tools of the Trade Peter Schulz 18 A New President. A New Energy Jessica Potter Policy. A New Frontier. 39 The Bakken Top 20 Editor-in-Chief Shannon Savory [email protected] FEATURES 41 BUYERS’ DIRECTORY Senior Editor Alexandra Walld 21 Welcome to Office, Governor [email protected] 23 Calling All Cultivators: Can We Finance/Administration Keep Coal Viable? Pat Andress, Nathan Redekop, Lloyd Weinberg [email protected] 24 When Life Gives You Lemons: Director of Circulation & Distribution How Innovative Operators are Lloyd Weinberg Making Lemonade [email protected] 26 Access Approved! An Update on Sales Manager Neil Gottfred the Controversial Dakota Access Pipeline Sales Team Leaders Matt Potts & Kevin Harris Account Executives Andrew Lee, Ashley Jenkins, Bonnie Petrovsky, Brian MacIntyre, Cheryl Klassen, Chris Smith, Colleen Bell, Dan Brennan, David MacDonald, Devyn Taylor, Frank Kenyeres, Jeff Cash, Jeff Perrin, Spring 2017 BASINThe Official Publication of the Western BITSDakota Energy Association Jim Hamilton, Kallie Herod, Krystal Miller, Renée Kent, Rob ANew President. Gibson, Roxanne LaForme, Sandra Kirby A New Energy Policy. Advertising Design A New Frontier. James Robinson On the cover: This issue’s cover features Richard Layout & Design Angus Ranch (formerly Beaver Creek Ranch), which Cody Chomiak lays upon almost 22,000 contiguous acres just north Calling All Cultivators: The articles presented in this publication represent the opinions of the authors and the interviewees. Their inclusion does not directly or implicitly denote concurrence or support the concurrence by inclusion does not directly or implicitly denote Their the opinions of authors and interviewees. represent in this publication articlesThe presented ©2017 Matrix Group Publishing Inc. All rights reserved. Can We Keep Coal of Beach, ND. The state’s scenic Badlands can be Viable? Contents may not be reproduced by any means, in On the Hunt for Gold A New Sense of whole or in part, without prior written permission of the seen in the background. Photo credit: Mike Kopp, Optimism COMPLIMENTARY publisher. The opinions expressed in this publication are http://about.me/koppmike. Printed with permission. PLEASE TAKE ONE! Disclaimer: in our industry. to professionals issues of interest represent WDEA staff and selectedfor inclusion as they by reviewed Articles Association. were Energy Dakota Western not necessarily those of Matrix Group Publishing Inc. BASIN BITS | Spring 2017 7 Opening Remarks From the Desk of the Western Dakota Energy Association’s President Recipe for Success economy, provide safety to our communities core counties, the scope of activity has grown and residents, improve health care and pro- and will continue to benefit the entire state. vide quality education for our children and Everyone in North Dakota gains from the their children.” income the industry produces and the goods Will they find broken pavement in the and services the state requires, which are of- Daryl Dukart road along the way, windows that need wash- ten supplied from other areas of the state. President ing, bridges that are functionally obsolete? Have a great spring! Western Dakota Energy Association That much is certain, as is the fact that they will encounter those of us who disagree on ABOUT THE WESTERN his season, we entered a very certain issues, who will say the recipe is miss- DAKOTA ENERGY challenging winter and it ing something. But we will find a new direc- ASSOCIATION seemed to last a little longer tion to address these diverse challenges as tax- The Western Dakota Energy Associa- than most of us county com- payers, students, senior citizens and everyday tion (WDEA) is the trusted and unified missioners would have liked citizens. The state will find its way back to voice for the betterment of the citizens Tto see. The periodic breaks in the weather in the path of greater success, and the recipe will of North Dakota and the membership of January and February were very welcome. I be near-perfect once again. WDEA. am sure the energy industry feels the same, as Some of this new recipe is percolating al- they too are faced with the many challenges ready and, yes, some of its ingredients have THANK YOU TO THE of removing snow, keeping the operation’s been in the making for some time. History WDEA 2017 EXECUTIVE equipment running and preventing accidents tells us that improvements tend to happen COMMITTEE FOR SERVING to employees during busy days of work. after a major change in local or national gov- WESTERN NORTH DAKOTA! In many ways, we have started 2017 off ernment. Completion of the Dakota Access President: Daryl Dukart, Dunn County with even more challenges than those created pipeline, along with improving prospects for Vice-President: Shawn Kessel, City of by weather. Earlier in the year, we all wanted the Keystone XL line, provide a cheaper way Dickinson to learn more about our new governor and to transport oil and make life on our high- the many new freshman legislative represen- ways much safer. Past President: Supt. Steve Holen, tatives leading us into the 2017 session. Hav- Major investments outside of the energy McKenzie County Public School District ing an abundance of oil tax revenue to ad- sector will also have a big impact. There is a Dan Brosz, City of Bowman dress North Dakota’s needs is no longer the new soybean processing plant planned in Spir- Doug Nordby, McKenzie County story, as it had been during the past couple itwood, ND, there is a urea fertilizer plant be- John Phillips, Coal Conversion of sessions. ing built in association with the Dakota Gas- Counties, Beulah Instead, discussions now center around ification plant in Beulah, ND, and Northland Trudy Ruland, Mountrail County shortfalls and the belt-tightening adjustment Community Health Center has significantly that is needed to sustain this state and the cit- expanded its operations. There are so many Ken Callahan, City of Williston ies and rural communities in North Dakota. positive things happening and so many things Supt. Brad Rinas, Coal Conversion Toss an unknown ingredient into the mix— that are soon to happen. Mix the proper ingre- Counties, Washburn newly-elected President Trump and his new dients, people and leadership into the recipe Supt. Gary Wilz, Killdeer Public School cabinet—and it looks like a recipe for success. and we once again find success! District If only it were this simple. As I write this column, we are seeing a Supt. Jason Kersten, Bottineau Public I like Gov. Burgum’s main street aware- very slow but steady increase in the number School District ness and his encouragement that North Da- of rigs in the Bakken and fracking operations kotans should look for ways to be creative are starting to make their way back into the Association Office and use technology to modernize our great area. With growth come people to work jobs, 1661 Capitol Way state. His comments are positive and I expect students into our school systems, and dollars Bismarck, ND 58501 possible achievements if we stay focused and to be spent in rural towns and major cities for www.ndenergy.org keep moving forward. lunch, gas, clothing, entertainment, housing, The message from elected / appointed of- etc., adding more sales tax pennies into our Geoff Simon, Executive Director ficials at the national level seems to have a bit state and local coffers. Tel: (701) 527-1832 (cell) of a different approach, but overall it is near- We need to remember that even if activity Email: [email protected] ly the same: “Create jobs, build a stronger in the oil and gas industry is centered in four BASIN BITS | Spring 2017 9 Opening Remarks From the Desk of the Western Dakota Energy Association’s Executive Director Please Allow Me to Introduce Myself Geoff Simon Executive Director Western Dakota Energy Association n August 24, 2016, I took a 5. I’m tech-savvy. I understand social me- trip to Watford City, ND. dia, I’ve created and maintained websites, It’s a day I’ll never forget. I and I’ve used technology to get people met with the board of the engaged in policy matters. North Dakota Association My response to that interview question is Oof Oil & Gas Producing Counties (now the a good way to introduce myself to the readers Western Dakota Energy Association), hoping of Basin Bits.