page Rising Bakken oil production 6 shapes WPX transformation

Vol. 2, No. 24 • www.PetroleumNewsBakken.com A weekly newspaper for industry and government Week of September 29, 2013 • $2.50

ASSOCIATIONS & EVENTS NDPC Year in review NDPC board chair Terry Kovacevich recaps 2013 at 32nd annual meeting

By MIKE ELLERD industry in that brings News Bakken challenges. “This continued growth has brought with it some challenges,

n his opening remarks at the third day PATRICK JUDY making our membership in the Iof the North Dakota Petroleum Petroleum Council more and more Council’s annual meeting in Grand essential as we work with state, local The North Dakota Petroleum Council inducted Bob Mau into its Forks on Sept. 18, not only did the and federal governments to find solu- hall of fame at the organization’s annual meeting in Grand Forks. council’s board Chairman Terry tions to the local impacts, bottlenecks, Kovacevich point out North Dakota’s workforce, housing and regulatory Mau, Sample, Porter recognized by record-breaking oil production in July, TERRY KOVACEVICH issues we and our communities face.” North Dakota Petroleum Council but he also pointed out that the council In addition, he said, the council is itself broke a record with its membership at 501 dealing with a host of other issues including reg- Three individuals received special recognition from the members, up more than fivefold from the 87 ulatory matters, sportsman and conservation North Dakota Petroleum Council during its 32nd annual members the council had in 2008. issues, flaring and the proposed Bureau of Land meeting held earlier in September in Grand Forks. Long-time That increased membership, Kovacevich said, Management hydraulic fracturing rules. industry service provider and MW Industries President Bob is important in the face of a growing oil and gas Mau was inducted into the council’s hall of fame. Kenny see YEAR IN REVIEW page 8 Sample, who is retiring this fall from his regional sales posi- tion at Wyoming Casing Service after a long career in the MERGERS & ACQUISITIONS industry, received one of the council’s two outstanding serv- ice awards. The other outstanding service award went to state representative Todd Porter of Mandan who has been instru- GMX out of options mental in passing key industry-related bills. 2011 oil acquisitions fail to spare pummeling from natural gas price exposure Bob Mau in the hall of fame By STEVE SUTHERLIN The hall of fame was created by the council in 2005, and “The debtors have been unable to raise For Petroleum News Bakken see NDPC AWARDS page 10 sufficient capital to continue operating and developing their assets because of Norstra spuds its first MX Resources Inc. is pressing forward with Ga plan to sell its major assets, subject to a the debtors’ current capital structure and S. well in Montana $338 million stalking horse bid from a group of its the decline in the price of natural gas.” senior lenders. After months of planning and preparation, Norstra Energy —GMX Resources Inc. The subject of a well attended bankruptcy court Inc., the Texas-based exploration company looking to hearing Sept. 10 was a debtors’ motion for an order explore the Southern Alberta Bakken in northern Lewis and establishing bidding procedures in connection with GMX also asked for an order approving the sale Clark County, Mont., reported Sept. 25 that the first well in the sale of substantially all of the debtors’ assets. of the assets free and clear of all liens, claims and that play has been spud and that 850 feet of surface casing GMX asked the court to authorize and approve encumbrances to the winning bidder; and authoriz- have been set. the form of a stalking horse asset purchase agree- ing the assumption and assignment of contracts and According to the company, Norstra Chief Executive ment, to set dates for an auction and sale hearing, unexpired leases. Officer Glen Landry was onsite overseeing the initial drilling and to establish procedures to determine cure It is hoped that the stalking horse bid will attract of the 13-11 Milford Colony well and collected cuttings and amounts related to the assumption and assignment additional bidding and preserve the company’s mud samples. “A notable observation is that there were sev- of contracts and unexpired leases. see GMX MOVES page 15 eral shows of in the Marias formations, which is not necessarily indicative of hydrocarbons in eco- DRILLING & COMPLETION see NORSTRA WELL page 15 Correction: ND pipeline EOG infilling Parshall construction 9-22-13 story 480 infill wells planned on 80 units; incremental gains up to 2.7 mm barrels An article on the pace of pipeline construction in North Dakota that appeared in the Sept. 22 edition of Petroleum By MIKE ELLERD Burke 18-27H. For the 1,280-acre units, EOG News incorrectly reported that 17,540 miles of new pipeline Petroleum News Bakken reports an estimated ultimate recovery of 1.295 were constructed in North Dakota in 2012. The actual num- million barrels of oil for a scenario of two Bakken ber of miles of new pipeline constructed in the state in 2012 OG Resources submitted an application with wells, for an average of 647,500 barrels per well. was 2,470. Those miles brought the total miles of pipeline in the North Dakota Industrial Commission in In the eight-well scenario, EOG reports an EUR North Dakota at the end of 2012 to 17,540. E late September seeking authority to drill, com- of 3.020 million barrels for an average of 377,500 In addition, the Sept. 22 article incorrectly reported that plete and produce six additional wells on 80 sep- barrels per well. Those EURs represent 3.4 and 15,070 miles of pipeline were constructed in the state in arate spacing units in Parshall field in southeast 7.9 percent recoveries of original oil in place for 2011, 12,717 miles in 2010 and 11,707 miles in 2009. Those Mountrail County for a total of 480 infill wells in the two scenarios. The increased density will were not the number of pipeline miles constructed each year, that field. Of the 80 spacing units, 36 are 1,280- result in an estimated incremental gain of 1.725 but instead were the total number of miles of existing acre units and 44 are 1,920-acre units. That appli- million barrels. The six new wells on the 1,280- pipeline in the state in each respective year. cation is on the commission’s Sept. 26 hearing acre units will be split between the Bakken and The 2,470 miles of pipeline that were constructed in docket. Three Forks formations. North Dakota in 2012 was a 5 percent increase over the As a base case for estimated well economics, For the 1,920-acre spacing units, EOG reports see CORRECTION page 14 EOG presented data from three of its Parshall an existing three-well scenario EUR of 1.71 mil- field wells, the Burke 1-34H, Burke 2-35 and see EOG INFILLING page 14 2 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 contents Petroleum News Bakken ON THE COVER 6 Rising Bakken oil production shapes WPX Year in review Company’s oil production surges 30%, operating NDPC board chair Terry Kovacevich efficiencies improve; management hints ’14 recaps 2013 at 32nd annual meeting shift in oil vs. gas production ratio GMX out of options FINANCE & ECONOMY 2011 oil acquisitions fail to spare 4 Pension fund sues Hamm over pipeline pummeling from natural gas price exposure Continental minority shareholder claims oilman, board EOG infilling Parshall members breached their fiduciary duty to protect 480 infill wells planned on 80 units; interests of little guy incremental gains up to 2.7 mm barrels GOVERNMENT Mau, Sample, Porter recognized 3 NDPC opposes second conservation fund by North Dakota Petroleum Council LAND & LEASING Norstra spuds its first 15 Whiting closes $260 million acquisition S. Alberta well in Montana Correction: ND pipeline MOVING HYDROCARBONS construction 9-22-13 story 4 Keystone XL faces its foes 5 Keystone XL decision ‘not imminent’ ASSOCIATIONS & EVENTS 5 Tankers filling Bakken crude delivery gap 14 NDPC elects directors at annual meeting NDPC ’13 WRAP-UP BAKKEN STATS 7 NDPC gathers for 32nd annual meeting 11 Montana well permits and completions, Sept. 13-19 8 Helms updates NDPC on oil production 11 Bakken producers’ stock prices ND oil production could reach 1.6 million barrels 12 North Dakota oil permit activity, Sept. 17-23 per day; 20 years of ‘phase 3’ ahead; NDIC 13 IPs for ND Bakken wells, Sept. 17-23 looking at rule changes SIDEBAR, Page 13: Top 10 Bakken wells by IP rate 14 NDPC elects directors at annual meeting COMPANY UPDATE PEOPLE TALK 3 Nine new wells for Arsenal Energy 6 Hamm, Kaiser rank among richest oilmen At 94% liquids, North Dakota production Energy executives’ substantial Bakken holdings contribute is sweet reward for Calgary-based Arsenal; to assets that place them among world’s Lindahl wells performing ‘typically’ 400 wealthiest businesspeople

page Senate majority leader weighs in on 6 North Dakota oil, gas legislation

Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013 lead them to safety COMPANY UPDATE Crude on rails in for long haul WLL gets bum rap James. T. Brown: Whiting Petroleum is not running out of drilling inventory

ticularly acute when it comes to finding VERN WHITTEN PHOTOGRAPHY By RAY TYSON Petroleum News Bakken new targets in Whiting’s flagship Sanish field in North Dakota’s Williston Basin, enver-based E&P independent which accounts for around 30,000 barrels DWhiting Petroleum Corp. is finding per day, or nearly 40 percent of the compa- it difficult convincing investors that the ny’s roughly 80,000 barrels per day of pro- company is not running out of suitable duction. Plains All American’s Manitou crude oil and NGL rail facility near By the end of 2012, a total of about 300 Ross, west of Stanley in Mountrail County, North Dakota. Photo places to drill. taken this winter by Vern Whitten. See rail story below. “The knock against Whiting is that you production wells had been drilled in the guys don’t have any inventory and in three JAMES T. BROWN Sanish field, with at least another 200 to be years you’re going to be done,” James T. drilled and completed. Rail will survive pipeline additions Brown, Whiting’s president and chief operating offi- “It seems that when we get to the end of every The need for rail to move crude from cer, told industry analysts Feb. 6 at the Credit Suisse year, we have two-and-half to three years of drilling Midcontinent fields will likely persist, 2013 Energy Summit in Vail, Colo. even if plans for expanding pipeline The lack-of-inventory perception seems to be par- see WHITING INVENTORY page 18 links from the Bakken to the Gulf Coast go ahead, EOG Resources Chief LAND & LEASING Executive Officer Mark Papa told a Colorado conference. He said rail will still be used five Riverbed draws top bids years from now to deliver Bakken crude to all three Lower 48 coasts — the Gulf, MARK PAPA East and West — but expects the cur- QEP Energy high bidder on 22 Missouri River leases; shore zone included rent advantage of Louisiana Light Sweet, LLS, crude prices third or 9,900 acres were in in the Houston market will probably change within 18 By MIKE ELLERD For Petroleum News Bakken 106 Missouri riverbed tracts in see RAIL SURVIVAL page 24 Dunn County and those tracts total of 27,370 acres brought in a total $21,227,455, Bakken threatens Alberta upgrader A were leased in 306 tracts a sum that accounted for more in nine western North Dakota than 86 percent of the gross Honeywell can help. The Bakken might be about to register a friendly-fire vic- counties in the Feb. 5 North auction proceeds. tim — a C$11.6 billion upgrader to convert oil Dakota Department of Trust The Dunn County lease sands bitumen into synthetic crude for refining into fuels. Lands oil and gas lease auction activity was, in turn, dominat- Suncor, with France’s Total as a 49 percent partner, expects bringing in a total of LANCE GAEBE DREW COMBS ed by 22 Missouri riverbed to decide no later than March 31 on the immediate fate of its $24,609,206 at an average tracts totaling 1,465 acres that Voyageur project, which has been in a holding pattern for the price of $899 per acre. The auction was dominated by fetched a total of $16,536,197 at an average price of last four years, putting an end to its original startup date of tracts between the former high water marks on the $11,291 per acre, all purchased by Denver-based 2016. two banks of the Missouri River under Lake QEP Energy Co. Since taking control of the giant nine months Sakakawea in Dunn County. Honeywell Safety Products has the broadest portfolio of leading safety solutions ago, Suncor Chief Executive Officer Steve Williams has Of the 27,370 acres leased, slightly less than one- see ND LEASE AUCTION page 21 increasingly hinted that economic challenges could be the undoing of Voyageur. ASSOCIATIONS His explanation has been delivered in clear-cut terms. see ALBERTA UPGRADER page 24 Galt: MPA ever vigilant in the marketplace today. Our core mission is to help safety managers build an Helms slams U.S. Fish & Wildlife Montana Petroleum Association chief keeps tabs on several bills during session Two new slides have appeared in Lynn Helms’ presentation packet — By MIKE ELLERD temporary leasing of water rights, financial slides with information that he thinks For Petroleum News Bakken relief to oil and gas-impacted communities, indicate an attempt by and carbon sequestration and enhanced oil the U.S. Fish & Wildlife umerous oil and gas-related bills recovery using carbon dioxide. Service to take over oil Nhave been introduced thus far in the and gas permitting in 63rd session of the Montana legislature Property rights: surface enduring culture of safety that minimizes injuries and maintains a more protective North Dakota. currently in session in Helena, and while damage compensation One is a map backing up his agency’s Montana Petroleum Association Executive House Bill 431, introduced by Rep. recent analysis that shows 83 percent of Director Dave Galt follows all of them LYNN HELMS Austin Knudsen of Culbertson, is a surface North Dakota’s oil and gas spacing units closely, he recently spoke with Petroleum DAVE GALT damage compensation bill that would add have some federal land ownership, surface and/or minerals. News Bakken and discussed those that he to the existing oil and gas surface damage Helms, director of the North Dakota Industrial thinks are most important to his membership. and disruption compensation statue the definition of Commission’s Department of Minerals, Oil and Gas Division, The key bills Galt identified fall into a variety of “lost land value” as “the value of the highest and best told North Dakota lawmakers in January, “It was really sur- categories. Some deal with compensation for reasonably available use, including the proposed use.” and productive workplace. Partner with Honeywell to discover new ways to lead prising to me when we did this analysis to find out that 83 landowner surface damage, eminent domain and The bill would also require that the surface owner and forced pooling, all of which Galt lumps together into the oil and gas developer or operator attempt “in good see PERMITTING page 10 what he considers to be “property rights” legislation. them to safety. Visit our website today. Other bills that Galt considers key deal with taxation, see ENERGY LEGISLATION page 22

www.honeywellsafety.com/USA/OilandGas ©2013 Honeywell International Inc. GET THE LATEST BAKKEN NEWS SUBSCRIBE TODAY! 907-522-9469 PETROLEUMNEWSBAKKEN.COM PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 3

COMPANY UPDATE GOVERNMENT Nine new wells NDPC opposes second conservation fund The North Dakota Petroleum Council’s board of directors passed a formal res- olution during the council’s annual meeting in Grand Forks on Sept. 17 opposing a ballot initiative that would create a conservation fund for parks or habitat proj- for Arsenal Energy ects. According to the Petroleum Council, the initiative would divert 5 percent of oil and gas extraction taxes from roads, schools and other funding priorities. At 94% liquids, North Dakota production is sweet reward for The proposed fund would be in addition to the Outdoor Heritage Fund that was Calgary-based Arsenal; Lindahl wells performing ‘typically’ passed during the 2013 North Dakota legislative session. The Petroleum Council supported that legislation. “The board wholly believes this initiative is a wrong approach and would take By STEVE SUTHERLIN Alberta away from other critical needs across the state without any legislative prioritiza- For Petroleum News Bakken Alberta accounts for 63 percent of tion and very little oversight in how a significant amount of money is spent,” said Arsenal’s corporate production but Terry Kovacevich, Petroleum Council board chairman in a Sept. 20 press release. algary-based Arsenal Energy Inc., accounts for just 44 percent of corporate “The industry supports conservation efforts and advocated for the creation of the Cwhich operates in the funds from operations due to the high Outdoor Heritage Fund last session. We need to give that fund time to work.” under its wholly owned subsidiary Arsenal natural gas component — 39 percent of Energy USA, drilled or completed nine the company’s production. In Constitutional amendment required new wells in the third quarter, the compa- contrast, U.S. production is 94 percent The initiative would require an amendment to the state’s constitution, and in ny said in a Sept. 9 operational update. oil and natural gas liquids. order to be put on the November 2014 ballot, initiative backers need to get 26,904 Arsenal said it completed four Bakken At Princess the company brought in signatures. According to the Petroleum Council, if the initiative were to pass, the wells at Lindahl in northwest Williams two oil wells and one gas well. The fund could collect from $75 million to $100 million annually and requires that 75 County, North Dakota, drilled four wells fourth well was suspended. percent of the funds collected each year be spent each year. The initiative also at Princess in Alberta, and drilled one well A vertical exploratory well tested a authorizes the funds to be used for land acquisitions. in the Alberta Deep Basin at Chauvin, also half section structural closure identified At the projected funding level, Kovacevich says that at $2,000 per acre, the in Alberta. on seismic. After two weeks the well pro- fund could purchase 150 acres or a nearly quarter section of land each day. “That’s The four completed Bakken wells were duced 90 barrels of oil per day. an average-sized North Dakota farm every 10 days. Clearly this initiative is a fracked and put into production at Lindahl, Arsenal said it had identified six fol- cause for concern on many levels, and we will be working with the agriculture the company said, adding that “the wells low-up locations at Princess. industry and business organizations to educate voters about the possible ramifi- are performing typically of other Bakken At Chauvin, Arsenal completed its cations this measure could have on agriculture, our state’s business climate, and wells in that field.” first Leduc horizontal well, which swab our ability to fund priorities in the future.” Arsenal has begun permitting work on tested at 110 barrels of oil per day. The —MIKE ELLERD two Bakken wells at Stanley in central well is scheduled to be in production by Mountrail County and one Bakken well at the end of September. Rennie Lake in central Burke County. The The company has identified six fol- wells are scheduled for drilling in the first low-up locations at Chauvin. It drilled a quarter of 2014. similar prospect at Edgerton, Alberta, in North Dakota 2012, which continues to produce 30 bpd. Arsenal has 11,509 net mineral acres in In the Alberta Deep Basin at three areas of the Bakken and Three Forks Columbia, Arsenal participated for a 50 Occupational Medicine formations. Stanley is 4,182 acres, Lindahl percent working interest in a horizontal is 743 acres and Rennie Lake is 6,584 exploration test of the Falher formation. a a acres. The well will be completed in the third He lthc re Current production at Stanley is 1,400 quarter and is scheduled to go into pro- barrels of oil equivalent per day from the duction in the fourth quarter. that Works! Bakken and Three Forks formations. At Arsenal said it is maintaining 2013 Lindahl, current production is 200 boe per exit rate guidance at 4,400 boe per day day from the Bakken and Three Forks. At but is increasing cash flow guidance for Rennie Lake the planned 2014 well will Trinity Health offers an experienced, physician-based occupational medicine program 2013 to $44 million due to higher real- for your business including: test the company’s acreage. ized oil prices. In September Arsenal’s At Stanley, horizontal wells into the • Drug & alcohol screenings • Work injury conditioning & current production of 4200 boe per day rehabilitation Bakken cost slightly over $8 million to consisted of 44 percent light oil, 32 per- • Pre-work screenings drill, complete operations, equip and tie-in • Respirator medical clearance cent medium oil and 24 percent natural • DOT & employment physicals — typically drilled on two section spacing gas. units approximately 9,200 feet vertically www.trinityhealth.org/occmed Information: 701-857-7830 and approximately 9,500 feet horizontally, Arsenal said. Wells are completed utiliz- Minot • Williston • Mohall • Westhope • New Town • Garrison • Kenmare • Velva ing multi-stage fracking technology. Fracked wells have initial production rates of approximately 1,000 boe per day but decline within six months to approximate- RIG MATS ly one-third of the initial rate followed by Designed for Durability an extended low-decline profile. Each well is expected to recover a total of approxi- mately 500,000 barrels of light oil, depending on the size of the spacing unit. At Lindahl, Bakken and Three Forks wells drilled from a multi-well pad cost Lister I - Laminated Mat approximately $8 million to drill, com- Lister Arctic Mats plete, equip and tie-in — drilled to a verti- Proven Durability cal depth of 9,800 feet and horizontally Thank you to the Oilpatch for 45 years of 9,200 feet over the two section spacing unit, Arsenal said. Well performance is continued success through the ups & downs. similar to Stanley wells, with total recov- Lister Industries is the longest serving rig mat ery slightly lower at 475,000 barrels of oil. company in North America - blazing the trails where Arsenal said it participated in four wells in which it sports a working interest others are following. We continue to lead the way. of approximately 6.3 percent. These wells were completed and put onstream in first For Sales Inquires Call quarter 2013. Arsenal expects the operator to drill four additional wells (0.025 net) in 780-468-2040 2013. At Rennie Lake/Black Slough, there are no Bakken wells on company lands, Arsenal said, but “competitors have sur- rounded the Company’s acreage with pro- Global Leader since 1968 in “Rig Mat Design & Manufacturing” ducing oil wells.” For Sales Inquiries Contact: [email protected] | PH 780.468.2040 | FX 780.468.3337 | Edmonton, AB. | www.listerindustries.com 4 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

FINANCE & ECONOMY MOVING HYDROCARBONS Keystone XL faces its foes Pension fund sues Opponents of the Keystone XL pipeline have completed a barn raising, but failed to raise much of a storm in Washington, D.C. They have just finished a barn on XL’s planned right of way in Nebraska, which they say TransCanada will either Hamm over pipeline have to destroy or divert around. They have just finished a To drive home their resistance to the barn on XL’s planned right of Continental minority shareholder claims oilman, board members shipment of crude from the Alberta oil sands way in Nebraska, which they and the to Cushing, breached their fiduciary duty to protect interests of little guy Okla., volunteers have provided for solar- say TransCanada will either and wind-power to operate the barn. have to destroy or divert By ROSE RAGSDALE To celebrate completion of the structure around. The Laborers District Council they invited billionaire investor and philan- For Petroleum News Bakken Construction Industry Pension thropist Tom Steyer, who has funded a $2 minority shareholder filed a lawsuit Fund, in a suit filed Sept. 18 in the million campaign to fight XL, to join the ceremonies. in Oklahoma County district court District Court of Oklahoma TransCanada has already shifted the pipeline’s proposed route to bypass A seeking damages from Harold G. Hamm County, claims Hamm unfairly Nebraska’s sensitive Sandhills region and the Ogallala Aquifer. and other executives of Continental benefits from a deal struck on a Turnout light Resources Inc. over a pipeline deal new pipeline from North Dakota between Continental Resources and Meanwhile, there was only a paltry turnout of protestors at Washington’s Hiland Partners LP. to Wyoming because of his ties to Lincoln Park on Sept. 21 in what had been billed as a nationwide day of action The Laborers District Council both companies. against XL. Construction Industry Pension Fund, in a Organizers, who had claimed there would be more than 200 “actions” in cities suit filed Sept. 18 in the District Court of failed to seek an independent, outside and towns across the United States and Canada, attracted only a few dozen Oklahoma County, claims Hamm unfair- review to determine whether the transac- demonstrators for their main event. ly benefits from a deal struck on a new tion was fair before inking the agreement The protests coincided with the fifth anniversary of TransCanada’s initial reg- pipeline from North Dakota to Wyoming with Hiland. Nor did the company ulatory filing for the 1,140 mile, $5.3 billion pipeline. because of his ties to both companies. appoint a special committee of independ- “It’s going to take a lot more Americans for President Obama to say ‘No’ to In addition to Hamm, the suit names ent directors to negotiate the deal with Keystone,” said David Barrows, who wore an anti-Keystone T-shirt. “I had hoped Continental Resources and members of Hiland. there would be more people.” its board of directors, Hiland Partners LP, The latest indication from the White House points to a final decision by Obama Hiland Holdings GP LP and Hiland Crude Charge breach of fiduciary duties early in 2014. LLC. The pension fund charged Hamm and —GARY PARK the other defendants with breaching their Hamm, family, majority owners fiduciary duties to Continental and its Noting that Hamm, Continental’s minority shareholders, and that all profits, founder and CEO and his family own 68 benefits and other compensation obtained percent of the company, the pension fund by Hamm and the other defendants to be observed that Hamm and trusts benefiting surrendered. his family own controlling interests in the “Under Oklahoma law, because M SPACE ® Hiland companies. Hamm also serves as Hamm, Continental’s majority sharehold- chairman of the board of both Hiland er, stands on both sides of the transaction, Single Family, Efficiency & Workforce Housing Commercial & Light Industrial Partners and Hiland Holdings. the heightened ‘intrinsic fairness’ stan- 701.484.1891 877.677.2231 The suit references Continental’s fil- dard of review applies. Under this stan- ings with the Securities and Exchange dard, Hamm has the burden of proving www.mspaceholdings.com Commission that outline an agreement both that the transaction is ‘financially Alexander | Fairview/Dore | Keene | Sidney | Stanley | Watford City | Williston with an “affiliate” (later identified as fair’ to the company and that the process Hiland) for a yet-to-be-built pipeline for employed in negotiating the transaction crude oil transmission. Under the agree- was procedurally fair. Based on the facts ment, Continental committed to pay the alleged herein, Hamm cannot satisfy this www.PetroleumNewsBakken.com affiliate $95.8 million over five years for burden,” the suit said. pipeline capacity of 10,000 barrels of The pension fund also asked the court Kay Cashman PUBLISHER & EXECUTIVE EDITOR ADDRESS crude oil per day for five years, but for damages for the company, with pre- P.O. Box 231647 Mike Ellerd EDITOR-IN-CHIEF planned to use on a fraction of the and post-judgment interest to the compa- Anchorage, AK 99523-1647 pipeline’s capacity to ship oil, while con- ny and for a jury trial. Ray Tyson CONTRIBUTING WRITER tinuing to transport oil by more costly A spokeswoman for Continental Gary Park CONTRIBUTING WRITER (CANADA) NEWS rail. Resources Sept. 25 said the company had Eric Lidji CONTRIBUTING WRITER RAY TYSON The pension fund also claims the not been served with the suit. “We just Rose Ragsdale CONTRIBUTING WRITER 605.343.4031 agreement was entered into despite the would not feel comfortable commenting [email protected] apparent lack of need for a new pipeline on any lawsuit when we have not been Steve Sutherlin CONTRIBUTING WRITER in the area, and despite Hiland’s lack of served,” she told Petroleum News Darryl Flowers CONTRIBUTING WRITER CIRCULATION experience developing and operating an Bakken. Mary Mack CHIEF FINANCIAL OFFICER 907.522.9469 interstate crude-oil pipeline. Clint Lasley GM & CIRCULATION DIRECTOR [email protected] The complaint noted that Continental Raylene Combs BAKKEN ADVERTISING EXECUTIVE ADVERTISING Ashley Lindly RESEARCH ASSOCIATE 907.522.9469 Mark Cashman RESEARCH ASSOCIATE [email protected] Susan Crane ADVERTISING DIRECTOR Bonnie Yonker AK / NATL ADVERTISING SPECIALIST FAX NUMBERS SOUTH DAKOTA Steven Merritt PRODUCTION DIRECTOR 713.658.0125 Marti Reeve SPECIAL PUBLICATIONS DIRECTOR ALASKA Tom Kearney ADVERTISING DESIGN MANAGER 907.522.9583 Heather Yates BOOKKEEPER Amy Spittler MARKETING CONSULTANT Renee Garbutt ADVERTISING ASSISTANT Several of the individuals Shane Lasley IT CHIEF listed above are Dee Cashman CIRCULATION REPRESENTATIVE independent contractors

OWNER: Petroleum Newspapers of Alaska LLC (PNA) RIGMATS, CAMP MATS, CUSTOM FABRICATION Petroleum News Bakken • Vol. 2, No. 24 • Week of September 29, 2013

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MOVING HYDROCARBONS Keystone XL decision ‘not imminent’

By GARY PARK more public consultations. economy, generates C$30 billion in annual government For Petroleum News Bakken He declined to predict when President Barack Obama revenues and accounts for half of Canada’s export values. might render his decision beyond suggesting early 2014. Reiterating his government’s commitment to safety talling by the Obama administration on the Keystone Oliver pointed out that governors in all states that and the environment, he said Canada has introduced new SXL pipeline — viewed as a much-needed shipping Keystone XL will cross now support the project. fines of up to C$100,000 a day that will “preventively option for Bakken and Western Canadian crude — is address” contraventions of the law in the pipeline sector. prodding the Canadian government to intensify its efforts Call for diversifying In addition, Oliver said annual oil and gas pipeline to find oil export markets beyond the United States, “Canada must diversify its energy markets, since vir- inspections will be increased by 50 percent, comprehen- Natural Resources Minister Joe Oliver said. tually all of our oil and gas exports go to the United sive audits of pipelines will be doubled and major crude He told a Calgary audience earlier in September that States, whose recent discoveries mean it will need pipeline companies will be required to arrange a mini- based on information gleaned during his latest trip to the Canadian resources less in the future,” he said. mum financial capability of C$1 billion to clean up dam- U.S. a final decision on the TransCanada project “is not “Our plan for responsible resource development age from spills. going to be imminent,” despite five years of waiting since involves meaningful engagement with Canadians across The Canadian government is also promising legisla- the application was first filed. our country to enhance Canadian jobs, security and the tion to raise absolute liability for companies operating in Oliver noted that the State Department has still to environment.” the Atlantic and Arctic offshore to C$1 billion, he said. complete a 90-day review, after which other U.S. govern- Oliver said the supports 1.8 mil- ment agencies have to offer their opinions, followed by lion Canadian jobs, almost one-fifth of the Canadian

MOVING HYDROCARBONS Tankers filling Bakken crude delivery gap

By GARY PARK every eight days (representing about 70,000 barrels) and sensitive estuary.” For Petroleum News Bakken are expected to double, said Port of Albany general man- Lipscomb doubts that emergency responders would ager Rich Hendrick. be able to handle a spill on the Hudson River’s upper orth Dakota Bakken producers are stepping up He told the Canadian Broadcasting Corp. that a sister reaches, although more will be known from results of a Ntheir use of tankers to maintain crude deliveries to ship of Afrodite is expected to make those increased vol- mock oil spill exercise this fall. the refinery, Canada’s largest with capacity of umes possible “in the very near future.” Last December, the 600-foot tanker Stena Primorsk 300,000 barrels per day. was delayed when it ran aground, carrying 11.7 million Having lost their main rail route following the deadly Riverkeep concerned gallons (279,000 barrels). July accident in the Quebec town of Lac-Megantic, the But John Lipscomb, a spokesman for the environ- The vessel, whose outer hull was breached, returned producers expect to double shipments from Albany, mental watchdog Riverkeep, said he is concerned about about 10 miles to Albany, where the contents were N.Y., to Saint John, . the doubling of tanker traffic on a 150-mile stretch of offloaded to barges. Despite a setback last December when a tanker carry- narrow river. There has been no subsequent report from Coast ing Bakken crude ran aground in the Hudson River, ship- He said there is a serious question about whether Guard investigations into the incident. ments on the tanker Afrodite has been moving crude crude tankers should even be allowed on an “extremely see DELIVERY GAP page 15 6 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

PEOPLE TALK Hamm, Kaiser rank among richest oilmen Energy executives’ substantial Bakken holdings contribute to assets that place them among world’s 400 wealthiest businesspeople

By ROSE RAGSDALE People Talk took charge of the company in the 1960s. In the news For Petroleum News Bakken most recently for Solyndra, the solar company that Kaiser, 71, is president of privately held Kaiser- failed after receiving hundreds of millions in taxpayer hile Harold Hamm, chairman and chief execu- Francis Oil Co., which has operations in a number of oil backing, Kaiser also established the $3 billion George Wtive of Continental Resources Inc., has topped states, including North Dakota. Tulsa, Okla.-based Kaiser Family Foundation, which makes more than $40 Forbes magazine’s ranking of wealthiest oilmen in Kaiser-Francis operates as a subsidiary of GBK Corp., a million a year in charitable donations, primarily for America again, another energy mogul with significant holding company which Kaiser also heads as president early childhood education. assets in the Bakken, George B. Kaiser, made the list at and CEO. In the 1990s, Kaiser bought the Bank of Oklahoma No. 3. Kaiser, worth $10 billion, trailed Richard Kinder, out of federal receivership for $60 million; his stake is Hamm, worth $12.4 billion, is the 33rd-richest per- chairman and CEO of pipeline operator Kinder Morgan now worth $2.5 billion. The banker/oilman is currently son in America overall and was ranked No. 90 among Inc. who has assets worth $10.2 billion. Kinder ranked pursuing energy plays in North Dakota, Wyoming and the world’s billionaires. Forbes released its list of 400 No. 2 on the Forbes list of U.S. energy executives and Canada. He also founded Excelerate Energy, which richest Americans Sept. 16, and Hamm, 67, climbed two No. 39 overall, down from 36th place last year. Kaiser ships liquefied natural gas around the world and owns slots from No. 35 last year. Microsoft founder Bill Gates ranked No. 3 among oil and gas execs and No. 40 over- numerous other assets. topped the magazine’s 2013 list in America and world- all, down from No. 33 in 2012. wide with a net worth of $72 billion. Kaiser’s uncle founded Kaiser-Francis Oil, and he

COMPANY UPDATE Rising Bakken oil production shapes WPX Company’s oil production surges 30%, operating efficiencies improve; management hints ’14 shift in oil vs. gas production ratio

By STEVE SUTHERLIN second quarter 2013 the year,” he said. “Our well costs are still in the $11 For Petroleum News Bakken earnings report. In remarks at the million range — that’s soup to Technological improvements PX Energy Inc. is undergoing a company’s Aug. 1 nuts; that includes everything.” While higher oil ratios would likely Wmultifaceted transformation that conference call, Hill —WPX Energy President & CEO Ralph Hill lead WPX to higher sales in a market- allows it to take advantage of lower costs said a rise in produc- place soft on natural gas, executives and a surge in oil production from its tion ratios of oil to “I think for the mix, at the end of the emphasized that the company has also Williston basin properties. gas might occur in year, I don’t think we will see a substan- enjoyed a dramatic positive impact of “We have high-performing assets and 2014, after new tial change in the mix,” he said adding rapid technological improvements within we are continuing our track record of Bakken oil produc- RALPH HILL that 2013 levels would remain near those its Bakken operations. operations and exploration success,” tion comes online. quoted by the company earlier in the year “In the Williston, we’re now doing Ralph A. Hill, WPX president and chief He cautioned, however that the ratio of about 78 percent gas. simultaneous operations like we’ve done executive officer said in the company’s would not change much in 2013. “I would guess that mix would be in the Piceance, allowing us to both drill about the same, just because a lot of the and complete wells concurrently on the Bakken production out there will be com- same pad”, Hill said. “This is one way ing on at the end of the year but not we’re driving down drilling days and enough to change overall percentage for see WPX SURGE page 16

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G ASSOCIATIONS & EVENTS NDPC gathers for 32nd meeting Over 800 register for council’s 32nd annual meeting held for first time ever in Grand Forks BY MIKE ELLERD now carrying more than 600,000 barrels of three benches of the Three Forks and to ting farther behind on issuing permits. Petroleum News Bakken crude out of the Williston Basin per day, date has seen no evidence of production and he predicted that by year’s end that interference between any of the wells. Other speakers he North Dakota Petroleum Council volume would increase to 750,000 bpd. Numerous other speakers gave Thad more than 800 registrants at its Rose continued, saying that BNSF car- Key regulatory issues addresses at the meeting, including Grand 32nd annual meeting held at the Alerus ried 145 million barrels of crude in the first NDPC board member Dave Searle of Forks City Council President Hal Center in Grand Forks on Sept. 16, 17 and eight months of 2013, and that number is gave a rundown of some of Gershman who welcomed the council to 18, marking the first time the council held expected to reach 200 million barrels by the more important regulatory issues the his city. Terry Kovacevich, Petroleum its annual meeting in Grand Forks. The the end of the year. BNSF is running 11 council’s Regulatory Committee is deal- Council board chairman, reviewed the three-day event included a trade show and loaded unit trains per day and 500 manifest ing with. One of those issues is manage- council’s activity over the last year (see exposition as well as numerous speakers units per week in the U.S. ment of naturally occurring radioactive story on page 1). ranging from technical to inspirational. BNSF not only moves crude out of the material, NORM, in produced water. The keynote speaker at the meeting The first day of the meeting was free state, but also brings oil field supplies such Searle said produced water contains was legendary college football coach Lou and open to the public as part of the coun- as sand, pipe, aggregates, bentonite and small amounts of radioactive isotopes Holtz. In his inspirational address titled cil’s ongoing community outreach efforts. cement into North Dakota. Each horizontal that typically don’t pose a problem unless “Making Good Choices,” Holtz talked The council held two Bakken education well, he said, requires about 40 rail car concentrated, but they do become con- about the importance of trust, commit- sessions on that first day in which council loads in inbound products, and last year, centrated in the filtering process. He said ment and accountability and stressed the President Ron Ness, council board mem- BNSF shipped more than 15 million tons current North Dakota law does not allow importance of keeping things simple. ber Kathy Neset and North Dakota of sand and building materials. Rose added for the disposal of solid NORM waste in North Dakota Gov. Jack Dalrymple Department of Mineral Resources Director that the railroad is also shipping down- landfills, but the regulatory committee is talked about how his state is benefitting Lynn Helms provided the public with a stream products from refineries. working with both the North Dakota from the oil and gas industry and also primer on the oil and gas industry in North As the oil industry continues to grow in Department of Health and the about the challenges the industry poses to Dakota. Those sessions were attended by North Dakota, Rose said BNSF will con- Department of Mineral Resources to try the state. North Dakota’s lone U.S. an estimated 325 people. The first day was tinue to invest and build infrastructure to to find a solution. However, Searle said Congressman Kevin Cramer addressed topped off with a community barbeque meet the demands of that growth. North Dakota does allow underground the conference in person, and U.S. Sen. where members of the public were able to injection of NORM-impacted water, and Heidi Heitkamp addressed the meeting meet and visit with council members. Bakken reservoir research while no wells have been permitted, the via a prerecorded video. John Harju, associate director for state is waiting to see its first application. Brian Cebull of GTUIT/G2G Statoil in the Bakken research at the Energy and Environmental Wildlife, including sage grouse, is Solutions of Billings, Mont., discussed One of the speakers at the meeting was Research Center, EERC, at the University another issue the committee is dealing the flaring problems facing North Dakota Statoil US President Bill Maloney, who of North Dakota, and Stan Wilson, manag- with. Searle said the sage grouse is an and various solutions, including his com- said Statoil, which operates in 34 countries er of resource development with important issue and he is not dismissing pany’s technology which captures natural worldwide, is currently producing 2 mil- Continental Resources gave a presentation it, but added that it affects only a very gas liquids at the wellhead through com- lion barrels of oil equivalent per day, and on Bakken reservoir research. small portion of North Dakota. pression and refrigeration. Jamie Harris has set a production target of 2.5 million Harju discussed the optimization pro- Another bird, however, the Sprague’s of talked about her compa- boepd by 2020. Statoil’s North American gram that EERC partners with a number of Pipet, is found in 46 of North Dakota’s 53 ny’s H2O Forward initiative which operations, including the Bakken, will stakeholders. That program’s goal is to counties according to Searle. It is current- revolves around the reuse of flowback contribute to that production increase. facilitate ongoing efforts to optimize ly listed as “warranted but precluded,” and produced water. Jim Sorenson of Statoil has three premium portfolio Bakken and Three Forks production which means the population and habitat EERC gave a presentation about core plays in the U.S.: the Bakken; the through advanced reservoir characteriza- are threatened but the U.S. Fish and in the Bakken for- Eagle Ford in Texas; and Marcellus in tion, improved drilling, and improved Wildlife Service doesn’t have the mation using carbon dioxide. Ohio, West Virginia and Pennsylvania. completion and production techniques. resources to list the species as endan- Jim Albano, chief of the fluid minerals Current production from those three plays The program also looks at optimization of gered. Searle said if the agency takes the branch of the Bureau of Land totals 167,400 boepd, with the Bakken surface operations and reduced surface next step and lists the species as endan- Management’s Montana/Dakotas office contributing 45,100 boepd of that total. impacts. gered, that could have a significant discussed the working relationship Maloney noted that Statoil’s recently Wilson’s presentation began with dual impact on North Dakota. between BLM and the Petroleum Council completed Beaux 18-19#7H well came in zone tests that Continental conducted in Searle noted that the regulatory com- as well as an update of BLM activities. with a 24-hour production rate of 7,139 the middle Bakken and first bench Three mittee continues works closely with In his presentation, Alex Epstein of the boe. That IP, he said, is the second-highest Forks formations in McKenzie and Dunn numerous federal and state agencies on a Center for Industrial Progress stressed the 24-hour IP in the basin and a record counties. Those studies, he said, found that regular basis, including the Bureau of importance of the oil industry taking a Bakken IP for Statoil. neither zone can be adequately drained by Land Management and the Forest more aggressive role in countering anti- Statoil has approximately 339,000 net the other; that wells are necessary in both Service. He said the industry has a very industry rhetoric and misinformation. G acres in the Williston Basin. The zones to harvest the reserves; and that mid- good working relationship with those Norwegian company entered the Williston dle Bakken and Three Forks reserves are agencies, but noted that both are dealing in 2011 through the acquisition of similar in magnitude. with staffing shortages and BLM is get- Brigham Oil and Gas, which is the most In addition, Wilson said Continental significant move that Statoil has made in conducted a 10-well deep coring program North America in years and the company in 2012 to evaluate oil saturation in the INDUSTRIAL SYSTEMS, INC. is very pleased. Along with Shell and BP, second, third and fourth benches of the Statoil is one of the largest foreign Three Forks formation. One core had satu- investors in the U.S. energy market in the ration in only the second bench, but two last two years. cores showed saturation in the second and Maloney said Statoil takes a long-term third benches and three cores showed sat- view of its operations in these plays and is uration in all three lower benches. committed to operating safely, minimizing Continental is currently drilling 20 the company’s environmental footprint, gross wells to evaluate deep bench pro- earning trust and continually improving. ductivity along with several pilot density tests according to Wilson. He said BNSF in North Dakota Continental has been able to delineate an We provide major capital engineering, procurement, project Burlington Northern Santa Fe Chief area covering approximately 3,800 square management, and construction services in the multi-million dollar Executive Officer Matt Rose talked about miles in northwest North Dakota that is range down to projects of more modest needs and budget. the importance of rail transport in export- potentially productive in the lower Three ing crude oil from the Williston Basin. Forks formation. Regardless of project size, budget or location we provide you with Rose said BNSF had much of the infra- Wilson also said Continental is con- a safe, professional and reliable project that is delivered on time structure and foundation for its crude-by- ducting multiple-bench testing in its and on budget. rail in place before the oil boom because of Charlotte unit in northern McKenzie Delta, CO | 970-874-4461 Bob Isom #12, Glenn Lewis #15 its long history of exporting agricultural County. In that test, Continental drilled products from the state. Rose said BNSF is wells in the middle Bakken and the first Service Disabled Veteran Owned Small Business www.isidelta.com 8 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

G ASSOCIATION & EVENTS Helms updates NDPC on oil production ND oil production could reach 1.6 million barrels per day; 20 years of ‘phase 3’ ahead; NDIC looking at rule changes

BY MIKE ELLERD Helms said those goals are not going to be easy to Petroleum News Bakken NDPC achieve, but added that the Industrial Commission “is not interested in destroying the economics of the Bakken t the North Dakota Petroleum Council’s annual and Three Forks play in pursuit of this.” He believes the Ameeting in Grand Forks on Sept. 17, Department of state can work with industry to develop a policy that will Mineral Resources Director Lynn Helms gave an update move faster to achieve the three goals. on oil production in the state and said department pro- jections indicate that oil production in the state could Rule changes eventually reach just under 1.6 million barrels per day as The Industrial Commission is also working on a num- more and more acreage in the Bakken petroleum system ber of rule changes, and Helms said the commission will moves into full development stage. hold a hearing on those rule changes in Bismarck on Oct. Most of the Bakken petroleum system is now in the 1. Of the 41 rule changes, 16 are due to statute revisions full development stage with ongoing infill drilling, that came out of the 2013 legislature. An additional 11 according to Helms, which he identifies as “phase 3.” He Lynn Helms changes apply specifically to treating plants and the identifies “phase 1” as the exploration phase, and “phase remaining 13 are administrate or are industry requested 2” as “de-risking” of leases, e.g., holding leases by pro- soften in 2014 due to a shortage of refining capacity for changes. duction. Helms estimates phase 3 will continue for light crude oil. He said the Bakken and Eagle Ford plays The Oct. 1 hearing will begin a 10-day public com- another 20 years during which an estimated 40,000 to are pushing production of light, sweet crude so high that ment period, and the commission will make final deci- 45,000 additional wells will be drilled. currently there is only approximately 650,000 barrels per sions on the proposed rule changes during its Nov. 26 Helms said there are approximately 185 drill rigs day of light, sweet refining capacity, and that capacity, meeting. New rules go into effect on April 1, 2014. operating in the state. The rig count, he said, peaked at Helms says, will be utilized very quickly. Helms said all of the proposed rule changes are posted 218 in July 2012, but with new drilling technology, he “So there’s going to be, perhaps, some softness in on the department’s website. added, 185 rigs can put as many wells in the ground now light, sweet crude next year that’s going to have to be as 218 rigs did over a year ago. incorporated into budgets and thinking.” North Dakota Geological Survey According to Helms, those 185 drill rigs equate to In closing, Helms talked about some work that the some 22,000 temporary drilling jobs with yet another Reclamation North Dakota Geological Survey is doing, beginning 13,000 temporary jobs in building In his address, Helms com- with a map that Steve Nordeng of the survey developed infrastructure. In addition, he mended the oil industry in North that ranks areas of production in the northwest North “I think you take your environmental said, the oil industry is creating Dakota on its reclamation efforts Dakota counties according to color and makes it easy to between 2,000 and 3,000 perma- responsibility and your social in the state, and said industry see the areas of highest oil production. nent jobs in the state per year. responsibility very, very seriously doesn’t brag enough about recla- Helms also discussed a thermal gradient study the and you are truly amazingly good at survey is conducting that will map geologic temperature Other potential formations mation. “What people have failed what you do.” —Lynn Helms to grasp is how good you are at profiles. That study was funded in part by the legislature In addition to the Bakken and making your footprint disap- but also in part by the Petroleum Council. Three Forks formations, Helms pear.” In that study, the Geological Survey acquires temper- said the Tyler formation in western and southwestern Helms said there are more than 8,000 reclaimed well ature data from temporarily abandoned wells that are North Dakota has production potential, with develop- sites across North Dakota, “and I would challenge you to coming up for mechanical integrity testing. Helms said ment of the Tyler at the same stage that the Bakken and go find them,” adding that the oil industry is very good those data are critical for computer modeling and he Three Forks formations were in 2003 and 2004. at erasing its footprint. “I think you take your environ- asked that operators allow the Geological Survey access The Spearfish formation is also showing potential, mental responsibility and your social responsibility very, to selected wells from which the temperature data can be and he noted that Corinthian Exploration, a private very seriously, and you are truly amazingly good at what acquired. Canadian oil and gas company, is planning to drill you do.” Finally, Helms said the department is revising its drill almost 400 wells into that formation in Bottineau County cutting sampling requirements, and is looking for input over the next five years. There is less activity in the Flaring from industry on those revisions. Helms doesn’t believe Mission Canyon formation, mainly because of the high The North Dakota Industrial Commission is getting that all wells on a multi-well pad need to be sampled, sulfur content of the oil in that formation. more aggressive on natural gas flaring, and Helms said and the department is looking at changing sample inter- the commission has identified three goals related to the val requirements on both vertical and horizontal sec- Softening light crude prices? G flaring issue: reducing flaring volume; reducing the tions. On crude oil prices, Helms said predictions are number of wells flared; and reducing the duration of flar- appearing that suggest light sweet crude oil prices could ing from wells. continued from page 1 Petroleum Council worked for increased BLM’s controversial proposed hydraulic the committee will be working to provide funding to address impacts to oil commu- fracturing rule. comments on the North Dakota Industrial YEAR IN REVIEW nities, and added that “never before seen The committee worked with both Commission’s 2014 administrative rule- levels of funding for oil impacts are a BLM and the U.S. Forest Service to making process. Kovacevich was elected to a two-year positive step toward meeting the needs of streamline the permitting process, “The committee meets quarterly with term as chairman of the council’s board in the communities.” Kovacevich said, and he noted that nearly federal and state agencies to further 2012. He is a regional vice president with The council introduced a new legisla- 200 council members attended BLM per- address these important issues,” he added. Marathon Oil Co. and has more than 35 tive website at the beginning of the 2013 mit application writing and inspection years of experience in domestic and inter- legislative session, and through that web- and enforcement workshops in April and North Dakota Oil Can! national oil and gas operations. site, council members sent more than 600 September. The committee also continued The Petroleum Council’s stakeholder Kovacevich was transferred to North email messages to legislators during the working with the Forest Service to pro- Dakota as operations manager in 2006. outreach program, “Oil Can!,” estab- session. vide third-party completion of National lished in 2008, had what Kovacevich 2013 North Dakota legislature Looking forward, Kovacevich identi- Environmental Policy Act requirements called “another very successful year” in fied several key upcoming legislative for activities on the Dakota Prairie 2013. “Oil Can! is an effort to educate The council was busy during the 2013 issues include flaring, oilfield waste, Grasslands. and inform the general public about our North Dakota legislative session, which reclamation, landowner issues, royalty On a state level, Kovacevich said the industry and strive to continue to be bet- Kovacevich noted was the longest session issues and a more organized opposition to regulatory committee continues to work ter neighbors and communicate with local in the history of the legislature. There issues the council does not support. Those with the North Dakota Department of policy-makers, farmers and ranchers and were more than 800 bills introduced in issues, he said, will be addressed by the Health on disposal of oilfield wastes, the public in and around areas with the session, many of which were either council’s seven ad hoc committees and including naturally occurring radioactive increasing oil activity.” directly or indirectly related to the oil and their numerous subcommittees. material, proper waste transport, proper The first Oil Can! fishing derby was gas industry. “An overall successful ses- use of pesticides and proper handling of held this year with more than 150 partici- sion,” Kovacevich said. “We saw changes NDPC regulatory committee wastewater and saltwater. pants raising $14,000 for conservation to the oil tax structure, a new Tribal tax Kovacevich said the council’s regula- He added that the committee is work- projects. Another fishing derby is planned agreement, the development of the North tory committee had a busy year, working ing with the U.S. Fish and Wildlife for next year. Dakota Outdoor Heritage Fund, flaring closely with a number of federal and state Service, North Dakota state government The Oil Can! program put on two tax incentives, positive changes to the agencies. He said the committee has a and the North Dakota agricultural com- Bakken Rocks CookFests in 2013, One Call system, a bill to make acquiring memorandum of agreement with BLM munity on fish and wildlife issues, and Kovacevich said, one in Powers Lake and easements easier, changes to the permit- and provided funding for a BLM worker recently began efforts to prevent the list- the other in Parshall, hosting more than ting process for some pipelines, water and program to provide additional staffing to ing of four North Dakota species as 3,000 people at those two events. Next surface rights bills, and an energy corri- address the backlog of drilling permits. endangered. year CookFests will be held in Kenmare dor study.” In addition, he said, the The committee has also been involved in During the next few weeks, he said, see YEAR IN REVIEW page 10 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 9 10 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 continued from page 8 bers, a larger conference room and better parking. The since the 2012 conference. The Williston Basin new building also has a restaurant where the council can Petroleum Conference alternates between North Dakota YEAR IN REVIEW hold larger meetings. and Saskatchewan, and in May of this year it was held in The Petroleum Council continued with its advertising Regina. and Dunn Center in July. campaign, intended to reiterate the positive impacts that Another campaign in the Oil Can! program is “Pick the oil and gas industry has on North Dakota. Five new Closing remarks Up The Patch” which was started in April 2012 to clean television advertisements were developed, two of which In closing, Kovacevich offered a few comments as the up trash along highways. Thus far in 2013 more than will air this year and the other three in the spring of 2014. Petroleum Council enters another year and the industry 1,600 bags of trash have been picked up during numer- In late 2011, the Sakakawea Area Spill Response pro- continues to face challenges. “Oil country has seen enor- ous cleanup events, and since the program began last gram was formed to provide resources to assist in a mous growth the last few years, providing unprecedent- year, more than 3,800 bags of trash have been picked up. response to an open water incident in the Williston Basin ed economic benefit for our state, including billions in In the past year the program also hosted an annual area, including Lake Sakakawea and its tributaries. economic impact and thousands of high-paying jobs,” three-day seminar to educate teachers about the oil and There are currently 10 companies that actively partici- Kovacevich said. “As we know, this great success comes gas industry with more than 50 teachers attending. That pate in the program, and Kovacevich encouraged other with many challenges and impacts affecting all of us in seminar included an oilfield tour. companies to join the group. industry, the state, the counties and cities, and our local Other news Bismarck will host next year’s annual Williston Basin citizens. I am proud of our members’ efforts in aggres- Petroleum Conference, scheduled May 20-22 at sively addressing these issues. However, we must not be Kovacevich said the council has been running out of Bismarck’s Civic Center. The center is working to dou- complacent. I encourage each of you and your compa- room in its Bismarck office and will be moving to the ble the exhibit space over what was available the last nies to continue your efforts as we go forward, and I am Broadway Center just a few blocks away where it will time the conference was held in Bismarck in 2012. confident we will once again achieve, and to continue to have expanded office space, workspace for guest mem- Bismarck has added more than 1,000 new hotel rooms achieve, great success.” G continued from page 1 Petroleum Council board of directors and Nebraska and as an employee with serv- Dickinson Elks. Sample and his wife executive committee since 1999 and for ice provider BJ Services, later BJ-Hughes Shirley live in Dickinson. They have NDPC AWARDS two of those years was board chairman. and now part of . He left the three sons. In addition to contribution to the industry for a while when he and his Bob Mau is the 10th inductee. He was Petroleum Council, Mau has also volun- brother sold trucks and wholesale fuel Todd Porter’s outstanding service recognized by past inductees for his more teered his time to numerous boards and and also operated two truck stops. In than 35 years of service and his commit- Todd Porter has served in the North councils, including Kenmare’s first Fund- 1980, Sample returned to the oil business ment to promoting and developing North Dakota legislature since 1999 and chairs It committee and the Economic going back to work in Dickenson for BJ- Dakota’s oil and gas industry. the House Natural Resources Committee. Development Board. Then North Dakota Hughes. He went to work for internation- According to the Petroleum Council, Porter has been instrumental in passing Gov. and now U.S. Sen. John Hoeven al oilfield service provider Weatherford in an inductee must have least 25 years of key industry-related bills as well as in the appointed Mau to serve on the Interstate 2002, but then joined Wyoming Casing oil and gas industry experience, the creation of the state’s Outdoor Heritage Oil and Gas Compact Commission as Service where he has been for the last majority of which must be in the Fund. In the last legislative session, well as the Oil and Gas Research Council. nine years. Williston Basin. Another requirement is Porter actively promoted several key Mau has also served on the North Dakota Petroleum Council board member Jim that an inductee has to have made signifi- industry bills, including House Bill 1134 Chamber of Commerce board of direc- Arthaud said Sample “has been a tremen- cant contributions to the functions and which provided tax incentives for flaring tors. In 2007, he was awarded the Energy dous advocate and mentor for many peo- activities of associations that represent alternative technologies. That bill passed and Environmental Research Center’s ple in the oil industry. He is also a the industry in North Dakota and have the legislature and was signed into law by Pioneer Award. respected and trusted representative for supported promotion and development of Gov. Jack Dalrymple. Porter also promot- “Bob is a tremendous asset to the the industry in community outreach the industry “through hard work on behalf ed legislation providing tax incentives for North Dakota Petroleum Council, and has efforts, such as the Petroleum Council’s of the membership, commitment to well- environmental upgrades at refineries. been a part of North Dakota’s oil past, as teacher tours and CookFests, as well as being of the industry, and participation in “Todd has been a leader promoting well as its future,” said Perry Pearce, through his volunteerism and involve- association activities,” according to coun- responsible energy development and Petroleum Council vice chairman. ment in community organization and cil criteria. improving and maintaining the North “Through previous boom and bust cycles events.” Mau was raised on a farm near Mohall Dakota business climate,” said Petroleum to the current era of development that is “It is an honor to receive this award,” in east-central Renville County. After Council board Chairman Terry revolutionizing the industry, state and Sample said. “I would have never thought studying geology at Minot State, he began Kovacevich. “As a long-time legislator nation, Bob has lent decades of insight to see this kind of an oil boom in North his career in the oil and gas industry by and chairman of the House Natural and experience to the Petroleum Council Dakota, but it has been exciting to be a pumping wells and working on service Resources Committee, he has been at the and the oil and gas industry to help make part of it and work alongside so many rigs, He continued his career reclaiming forefront of virtually every piece of major North Dakota the energy leader it is other individuals who are equally deserv- well sites through most of the 1980s. He energy legislation over the past decade today.” ing of this award for their service to our later founded several businesses includ- and has led legislative efforts to encour- Mau and his wife Kathy reside in industry and our communities.” ing Eagle Operating Inc. in 1991, age better communication among the Kenmare. They have four children and Not only has Sample been active in the Wolverine Drilling Co. in 1996 and Eagle industry, landowners and mineral owners eight grandchildren. Petroleum Council, but also in the Well Service in the early 2000s. In 2005 to foster an understanding rather than leg- Dickinson chapter of the American he founded the drill rig manufacturing islating burdensome and adverse regula- Kenny Sample’s outstanding service Petroleum Institute. He was a long-time company MW Industries in Kenmare in tions.” volunteer fireman, past-president of the northwest Ward County and serves as Kenny Sample got his start in the oil In receiving the award at the council’s Chappell Jaycees and a member of the president. Mau has served on the business as a driller in his native Grand Forks meeting, Porter said that he knew nothing about the oil and gas indus- try when he began his political career in the North Dakota legislature. He said when he was assigned to the House Natural Resources Committee in his freshman session, he thought he would be Congratulations Bob Mau! dealing with hunting and fishing issues, little realizing what that committee deals with today. “I’ll tell you that you guys have the world’s best group of govern- ment relations people and industry lead- ers that help teach us, the lay citizen leg- islators that don’t know anything about your business how it’s done — how to make a business model that works inside the State of North Dakota.” Porter is a paramedic and co-owner of Metro-Area Ambulance Service in Mandan, where he has other business ventures and is active in local organiza- tions. Porter and his wife Shirley have two sons. The Petroleum Council’s Outstanding Service Award is awarded each year to one public servant and one industry rep- resentative “who go above and beyond their duties and obligations in their –From your friends at Empire Oil Company respective roles.” www.empireoil.net —MIKE ELLERD PHOTO COURTESY NDPC COURTESY PHOTO PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 11 BAKKENStats Montana well permits and completions September 13—19, 2013

Field, Denbury Onshore LLC filed a MCFPD and 173 BWPD. Abbreviations & parameters completion report for the Unit 12-15 at Also in Richland County, Oasis With a few exceptions, the Montana weekly oil activity report includes horizontal well activity in SW NW 15-6N-60E (1800 FNL/690 Petroleum North America LLC reported the Bakken petroleum system in the eastern/northeastern part of the state within the Williston Basin. It FWL). The well reported an IP of 44 the completion of the Stilt Federal 2658 also includes the Heath play and what is referred to as the South Alberta Bakken fairway in northwest- BOPD and 384 BWPD. The well pro- 42-22H, with an SHL at SE SW 22-26N- ern/west-central Montana, which is at least 175 miles long (north-south) and 50 miles wide (east-west), duces from the Red River formation. extending from southern Alberta, where the formation is generally referred to as the Exshaw, south- 58E (200 FSL/1670 FWL) and a BHL of In Richland County, Continental wards through Montana’s Glacier, Toole, Pondera, Teton and Lewis & Clark counties. The Southern 20,730 feet at SW SW 34-26N-58E (357 Alberta Bakken, under evaluation by several oil companies, is not part of the Williston Basin. Resources Inc. reported the completion of Following are the abbreviations used in the report and what they mean. four Bakken formation wells. The FSL/1236 FWL). The Bakken formation Hitchcock 1-9H, with an SHL at NE NW well turned in an IP of 970 BOPD, 846 BHL: bottomhole location | BOPD: barrels of oil per day | BWPD: barrels of water per day IP: initial production | MCFPD: thousand cubic feet per day | PBHL: probable bottomhole location 9-26N-53E (200 FNL/1672 FWL) and a MCFPD and 2,051 BWPD. PD: proposed depth | SHL: surface hole location | TD: total depth BHL at SE SW 16-26N-53E (231 In Roosevelt County, Oasis Petroleum FSL/1977 FWL) reported an IP of 340 North America LLC filed a completion And public land survey system abbreviations: BOPD, 242 MCFPD and 255 BWPD. FNL = from north line | FEL = from east line | FSL = from south line | FWL = from west line report for the Ma 2758 41-11B, a Bakken The Revere 1-31H has an SHL at SE SW formation well with an SHL at SW SW 31-27N-53E (250 FSL/1980 FWL) and 11-27N-58E (390 FSL/600 FWL) and COMPILED BY DARRYL L. FLOWERS 27N-54E (200 FNL/1980 FWL). The two laterals with BHLs of 14,970 at NE two laterals with BHLs of 10,475 feet at For Petroleum News Bakken Washburn 1-18H has an SHL at NE NW SW 30-27N-53E (1341 FSL/2022 FWL) SW SW 11-27N-58E (351 FSL/602 18-27N-54E (547 FNL/2096 FWL) and a and 18,680 at NE NW 30-27N-53E (239 PBHL of 18,947 feet at SE SW 19-27N- FWL) and 20,475 feet at SW SW 23- New locations FNL/2026 FWL). The Revere reported an 54E (200 FSL/1980 FWL). The Snow 1- IP of 613 BOPD, 610 MCFPD and 402 27N-58E (334 FSL/609 FWL). The In Roosevelt County’s East Tule field 13H has an SHL at NW NE 13-23N-54E BWPD. The Tower 1-4H, with an SHL at reported IP was 1,626 BOPD, 1,201 Weil Oil LLC has been approved to drill (280 FNL/1980 FEL) and a PBHL of NE NW 9-26N-53E (200 FNL/1627 MCFPD and 8,470 BWPD. the Weil-Bridges 2 at SE NE 15-30N-48E 19,864 feet at SW SE 24-23N-54E (200 FWL) and two In Sheridan County, Unit Petroleum FSL/1980 FEL). (1947 FNL/325 FEL). The well targets laterals with Co. reported the completion of the the Nisku formation at a PD of 7,600 feet. The three wells In Sheridan County, Unit Petroleum BHLs of 14,791 Abenroth 1-2H. The Bakken formation will target the Co. reported the completion of the New locations — horizontal wells feet at SE SW 33- well has an SHL at NE NW 2-36N-54E Bakken forma- Abenroth 1-2H. The Bakken formation 27N-53E (565 tion. (300 FNL/1940 FWL) and a BHL of In Roosevelt County, Oasis Petroleum well has an SHL at NE NW 2-36N-54E FSL/2378 FWL) In Sheridan 11,959 feet at SE SW 2-36N-54E (665 North America LLC was approved to drill and 19,277 feet at County, a permit (300 FNL/1940 FWL) and a BHL of the Faye Federal 2759 43-19H, with an NE NW 33-27N- FSL/1945 FWL). The IP was reported as was re-issued to 11,959 feet at SE SW 2-36N-54E (665 SHL at SW SE 19-27N-59E (510 53E (236 3 BOPD and 300 BWPD. G FSL/1680 FEL) and a PBHL of 20,985 Sinclair Oil & FSL/1945 FWL). The IP was reported Gas Co. for the FNL/2331 FWL) feet at SW SE 31-27N-59E (250 as 3 BOPD and 300 BWPD. Editor’s note: Darryl L. Flowers, a Chisholm 1- reported an IP of FSL/2100 FEL). The well targets the 508 BOPD, 325 contributor to Petroleum News Bakken, is Bakken formation. 31TFH, a Three Forks formation well with an SHL at NW MCFPD and 277 BWPD. The Pine 12-1 the publisher of the Fairfield Sun Times Re-issued locations NW 3-32N-56E (250 FNL/1130 FWL) 1H, with an SHL at SE SE 12-24N-51E in Fairfield, Mont., www.fairfieldsun- and a PBHL of 19,982 feet at N2 NE 30- (280 FSL/740 FEL) and two laterals with times.com, and can be reached at pub- In Richland County, Continental 33N-56E (200 FNL/1320 FEL). BHLs of 10,244 feet at NE SE 12-24N- Resources Inc. was permitted for three [email protected]. The infor- 51E (2057 FSL/763 FEL) and 14,744 feet wells. The Custer 1-7H has an SHL at NE mation is derived from the online records Completions at SE SE 1-24N-51E (1267 FSL/813 NW 18-27N-54E (508 FNL/2125 FWL) of the Montana Board of Oil & Gas FEL) turned in an IP of 158 BOPD, 430 and a PBHL of 19,852 feet at NE NW 6- In Fallon County’s Lookout Butte Conservation Commission.

Bakken producers’ stock prices Looking for a rig report? Closing prices as of Sept 25, along with those from previous Wednesday North Dakota Company Exchange Symbol Closing price Previous Wed. The best list for North Dakota is updated daily by the North Dakota Oil and Gas Abraxas Petroleum Corp. NASDAQ AXAS $2.57 $2.60 Division at www.dmr.nd.gov/oilgas/riglist.asp American Eagle Energy Corp. AMZG OTC $2.31 $2.22 Arsenal Energy USA, Inc. TSE AEI $4.88 $4.76 Saskatchewan Baytex Energy Corp. NYSE BTE $41.37 $41.04 Weekly drilling activity report from the government of Saskatchewan: Burlington Resources Co. (ConocoPhillips) NYSE COP $70.32 $70.56 www.economy.gov.sk.ca/Daily-Well-Bulletin-Weekly-Drilling-Reports Continental Resources, Inc. NYSE CLR $106.70 $106.26 Crescent Point Energy Corp. TSE CPG $38.73 $38.23 Enerplus Resources USA Corp. NYSE ERF $16.76 $17.54 EOG Resources, Inc. NYSE EOG $171.38 $171.79 Weekly drilling activity report from the government of Manitoba: Fidelity Exploration and Production (MDU) NYSE MDU $27.72 $27.89 www.manitoba.ca/iem/petroleum/wwar/index.html GMX Resources, Inc. PINK GMXRQ $0.25 $0.30 Hess Corp. NYSE HES $78.72 $79.22 HRC Operating (Halcon Resources Corp.) NYSE HK $4.68 $4.77 Kodiak Oil and Gas (USA), Inc. NYSE KOG $11.50 $11.37 Legacy Reserves Operating LP NASDAQ LGCY $27.06 $26.88 Marathon Oil Co. NYSE MRO $35.46 $36.40 Newfield Production Co. NYSE NFX $28.02 $26.67 Oasis Petroleum, Inc. NYSE OAS $48.13 $44.75 Oxy USA ( Corp.) NYSE OXY $92.91 $92.31 QEP Energy Co. NYSE QEP $28.49 $29.02 Resolute (Resolute Energy Corp.) NYSE REN $8.65 $8.78 Samson Resources Co. (KKR & Co.) NYSE KKR $20.09 $20.49 SM Energy Co. NYSE SM $76.47 $76.55 Statoil Oil and Gas LP NYSE STO $22.67 $22.95 Sundance Energy, Inc. SEA ASX $1.07 $1.07 Triangle USA Petroleum Corp. NYSE TPLM $9.65 $9.51 Whiting Oil and Gas Corp. NYSE WLL $58.86 $55.84 WPX Energy, Inc. NYSE WPX $18.93 $19.69 XTO Energy, Inc. (ExxonMobil) NYSE XOM $87.14 $89.58 PHOTO COURTESY CONTINENTAL RESOURCES 12 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

North Dakota oil permit activity September 17—23, 2013

300’FNL and 1,090’FWL; South Fork; N/A*; on confi- status; 2,370’ ground; 26491; 33-053-05288; 2,023’ ground; 26553; 33-061-02736; 9/23/2013 LEGEND dential status; 2,054’ ground; 19818; 33-025-01201; 9/17/2013 Linbeck 7-6H; SENE 6-153N-93W; 1,781’FNL and The county name is on the upper line, the 9/23/2013 Wahus State 152-97-12-1-4H; SESE 12-152N-97W; 622’FEL; Alkali Creek; N/A*; on confidential status; type of permit issued is on the second line, Skunk Creek 4-10-11-8H; NWNW 8-148N-93W; 315’FSL and 635’FEL; Westberg; N/A*; on confidential 2,023’ ground; 26554; 33-061-02737; 9/23/2013 and company names are next, followed by 1,270’FNL and 220’FWL; South Fork; N/A*; on confi- status; 2,370’ ground; 26489; 33-053-05286; Linbeck 8-6H1; SENE 6-153N-93W; 1,819’FNL and individual wells with data in this order: well dential status; 2,041’ ground; 19780; 33-025-01192; 9/17/2013 598’FEL; Alkali Creek; N/A*; on confidential status; name; location; footages; field; geological 9/23/2013 Wahus State 152-97-12-1-11H; SESE 12-152N-97W; 2,026’ ground; 26555; 33-061-02738; 9/23/2013 target; well bore type; elevation; NDIC file Skunk Creek 13-18-17-16H; SWSW 8-148N-92W; 315’FSL and 590’FEL; Westberg; N/A*; on confidential Linbeck 9-6H; SENE 6-153N-93W; 1,858’FNL and number; API number; date permit shows on 600’FSL and 400’FWL; Heart Butte; N/A*; on confiden- status; 2,370’ ground; 26490; 33-053-05287; 575’FEL; Alkali Creek; N/A*; on confidential status; NDIC website. tial status; 2,013’ ground; 21699; 33-025-01499; 9/17/2013 2,028’ ground; 26556; 33-061-02739; 9/23/2013 9/23/2013 Linbeck 10-6H1; SENE 6-153N-93W; 2,100’FNL and Abbreviations QEP Energy 801’FEL; Alkali Creek; N/A*; on confidential status; Following are the abbreviations used in the Newfield Production Tat 2-33-28TH; SESW 33-149N-95W; 280’FSL and 2,027’ ground; 26557; 33-061-02740; 9/23/2013 report and what they mean: Jorgenson Federal 2-10H; SWSE 10-148N-96W; 1,906’FWL; Grail; Bakken; horizontal; 2,477’ ground; Linbeck 14-6H1; SENE 6-153N-93W; 1,979’FNL and FNL = From North Line | FEL = From East Line 784’FSL and 2,161’FEL; Lost Bridge; N/A*; on confi- 26524; 33-053-05293; 9/20/2013 602’FEL; Alkali Creek; N/A*; on confidential status; FSL = From South Line | FWL = From West Line dential status; 2,377’ ground; 19912; 33-025-01215; Tat 3-33-28BH; SESW 33-149N-95W; 280’FSL and 2,028’ ground; 26561; 33-061-02744; 9/23/2013 9/23/2013 1,878’FWL; Grail; Bakken; horizontal; 2,479’ ground; Linbeck Federal 11-6H; SENE 6-153N-93W; Jorgenson Federal 2-15H; SWSE 10-148N-96W; 26523; 33-053-05292; 9/20/2013 2,106’FNL and 756’FEL; Alkali Creek; N/A*; on confi- Billings Co. 780’FSL and 2,236’FEL; Lost Bridge; N/A*; on confi- Tat 3-33-28TH; SESW 33-149N-95W; 280’FSL and dential status; 2,027’ ground; 26558; 33-061-02741; Permits issued dential status; 2,378’ ground; 19911; 33-025-01214; 1,850’FWL; Grail; Bakken; horizontal; 2,479’ ground; 9/23/2013 Sequel Energy 9/23/2013 26522; 33-053-05291; 9/20/2013 Linbeck Federal 12-6H1; SENE 6-153N-93W; SND 2-28R; NWSW 28-142N-100W; 1,623FSL and Tat 4-33-28BH; SESW 33-149N-95W; 280’FSL and 2,112’FNL and 712’FEL; Alkali Creek; N/A*; on confi- 1,229’FWL; Tree Top; Madison; vertical; 2,718’ ground; Oxy USA (Occidental Petroleum) 1,822’FWL; Grail; Bakken; horizontal; 2,479’ ground; dential status; 2,028’ ground; 26559; 33-061-02742; 23923; 33-007-01756; 9/19/2013 Federal Otto Boehler 1-3-10H-142-94; LOT3 3- 26521; 33-053-05290; 9/20/2013 9/23/2013 142N-94W; 440’FNL and 1,980’FWL; Murphy Creek; Linbeck Federal 13-6H; SENE 6-153N-93W; Bottineau Co. Bakken; horizontal; 2,187’ ground; 23819; 33-025- Whiting Oil and Gas 1,973’FNL and 647’FEL; Alkali Creek; N/A*; on confi- Permits issued 01868; 9/19/2013 Bratcher 14-36H; SWSW 36-149N-100W; 300’FSL dential status; 2,024’ ground; 26560; 33-061-02743; Corinthian Exploration Nels Wold 1-36-25H-141-97; SWSW 36-141N-97W; and 460’FWL; Ellsworth; Bakken; horizontal; 2,213’ 9/23/2013 Corinthian Berg 16-32 1-H; SESE 32-164N-78W; 839’FSL and 924’FWL; St. Anthony; Bakken; horizontal; ground; 26540; 33-053-05307; 9/20/2013 Vachal 6-27H; NENE 27-154N-94W; 380’FNL and 330’FSL and 750’FWL; Northeast Landa; N/A**; on 2,611’ ground; 23844; 33-025-01870; 9/19/2013 Bratcher 14-36-2H; SWSW 36-149N-100W; 300’FSL 617’FEL; Alkali Creek; N/A*; on confidential status; confidential status; 1,523’ ground; 26492; 33-009- and 520’FWL; Ellsworth; Bakken; horizontal; 2,213’ 2,054’ ground; 26500; 33-061-02723; 9/18/2013 02341; 9/17/2013 McKenzie Co. ground; 26539; 33-053-05306; 9/20/2013 Vachal 7-27H1; NENE 27-154N-94W; 380’FNL and Permits issued Cherry State 21-16-2H; NENW 16-149N-99W; 572’FEL; Alkali Creek; N/A*; on confidential status; Burke Co. Continental Resources 325’FNL and 1,590’FWL; Pleasant Hill; Bakken; hori- 2,055’ ground; 26501; 33-061-02724; 9/18/2013 Permits issued Jerry 2-8H; SWSW 8-151N-100W; 200’FSL and zontal; 2,119’ ground; 26568; 33-053-05315; Cornerstone Natural Resources 1,242’FWL; Poe; N/A*; on confidential status; 2,151’ 9/23/2013 EOG Resources Swenson B-0904-6391; SESW 9-163N-91W; 240’FSL ground; 26525; 33-053-05294; 9/20/2013 Wisness 14-34H; SWSW 34-149N-99W; 560’FSL and Austin 40-3204H; NENW 32-154N-90W; 450’FNL and and 1,980’FWL; Wildcat; N/A; on confidential status; Jerry 3-8H; SWSW 8-151N-100W; 200’FSL and 330’FWL; Juniper; Bakken; horizontal; 2,305’ ground; 2,000’FWL; Parshall; Bakken; horizontal; 2,255’ 1,949’ ground; 26495; 33-013-01740; 9/17/2013 1,287’FWL; Poe; N/A*; on confidential status; 2,147’ 26529; 33-053-05298; 9/20/2013 ground; 26516; 33-061-02729; 9/19/2013 ground; 26526; 33-053-05295; 9/20/2013 Wisness 14-34-2H; SWSW 34-149N-99W; 560’FSL Austin 41-3204H; NENW 32-154N-90W; 450’FNL and Divide Co. Jerry 4-8H; SWSW 8-151N-100W; 361’FSL and and 390’FWL; Juniper; Bakken; horizontal; 2,308’ 2,100’FWL; Parshall; Bakken; horizontal; 2,254’ Permits issued 2,144’FWL; Poe; N/A*; on confidential status; 2,136’ ground; 26528; 33-053-05297; 9/20/2013 ground; 26514; 33-061-02727; 9/19/2013 American Eagle Energy ground; 26531; 33-053-05300; 9/20/2013 Austin 134-3204H; NENW 32-154N-90W; 450’FNL Arnette State 14-36-164-101; SESW 36-164N- Jerry 5-8H; SWSW 8-151N-100W; 385’FSL and Permits renewed and 2,050’FWL; Parshall; Bakken; horizontal; 2,255’ 101W; 300’FSL and 1,500’FWL; Colgan; N/A*; on con- 2,107’FWL; Poe; N/A*; on confidential status; 2,136’ Enerplus Resources ground; 26515; 33-061-02728; 9/19/2013 fidential status; 2,281’ ground; 26562; 33-023-01107; ground; 26530; 33-053-05299; 9/20/2013 Beaver Creek 149-94-31D-30H TF; SWSE 31-149N- 9/23/2013 Jerry 6-8H; SWSW 8-151N-100W; 290’FSL and 94W; 441’FSL and 2,190’FEL; Eagle Nest; N/A*; on Oasis Petroleum Dena State 14-36-164-101; SESW 36-164N-101W; 987’FEL; Poe; N/A*; on confidential status; 2,182’ confidential status; 2,483’ ground; 24111; 33-053- Dawson 5494 11-1 2T2; LOT4 1-154N-94W; 280’FNL 300’FSL and 1,700’FWL; Colgan; N/A*; on confidential ground; 26536; 33-053-05305; 9/20/2013 04490; 9/20/2013 and 1,280’FWL; Alkali Creek; Bakken; horizontal; status; 2,277’ ground; 26563; 33-023-01108; Jerry 7-8H; SWSW 8-151N-100W; 290’FSL and Brugh Bear 2-11H; SWSE 31-149N-94W; 441’FSL and 2,271’ ground; 26506; 33-061-02725; 9/18/2013 9/23/2013 1,032’FEL; Poe; N/A*; on confidential status; 2,176’ 2,140’FEL; Eagle Nest; N/A*; on confidential status; Dawson 5494 12-1 3T3; LOT3 1-154N-94W; 280’FNL ground; 26535; 33-053-05304; 9/20/2013 2,481’ ground; 24112; 33-053-04491; 9/20/2013 and 1,330’FWL; Alkali Creek; Bakken; horizontal; Permits renewed Zion 148-95-02N-11H; SWSE 31-149N-94W; 441’FSL 2,277’ ground; 26507; 33-061-02726; 9/18/2013 Samson Resources Hunt Oil and 2,090’FEL; Eagle Nest; N/A*; on confidential sta- Bakke 3229-7TFH; LOT1 32-164N-99W; 230’FSL and Antelope 1-31-30H; LOT2 3-148N-102W; 530’FNL tus; 2,480’ ground; 24113; 33-053-04492; 9/20/2013 Sinclair Oil 1,248’FEL; Ambrose; N/A*; on confidential status; and 1,570’FEL; Sather Lake; N/A*; on confidential sta- Martens 5-5XH; LOT2 5-154N-92W; 229’FNL and 2,065’ ground; 23832; 33-023-00911; 9/20/2013 tus; 2,340’ ground; 26527; 33-053-05296; 9/20/2013 Statoil Oil and Gas 1,661’FEL; Sanish; N/A*; on confidential status; 2,344’ Thomte 0508-7TFH; SESE 32-164N-99W; 230’FSL and Bear Butte 1-12-1H; SWSW 12-148N-101W; 350’FSL Raymond 17-20 2TFH; NENE 17-151N-101W; ground; 26537; 33-061-02730; 9/20/2013 1,273’FEL; Ambrose; N/A*; on confidential status; and 1,066’FWL; Bear Butte; N/A*; on confidential sta- 432’FNL and 887’FEL; Ragged Butte; N/A*; on confi- 2,065’ ground; 23831; 33-023-00910; 9/20/2013 tus; 2,171’ ground; 26493; 33-053-05289; 9/17/2013 dential status; 2,033’ ground; 24142; 33-053-04502; Permits renewed 9/23/2013 WPX Energy Dunn Co. Kodiak Oil and Gas Arikara 15-22HB; NENW 15-150N-93W; 450’FNL and Permits issued Smokey 146-99-2-3-10-15H; LOT2 3-146N-99W; Permits cancelled 2,603’FWL; Reunion Bay; N/A*; on confidential status; Oxy USA (Occidental Petroleum) 345’FNL and 1,640’FEL; Ranch Creek; Bakken; horizon- Zenergy 2,179’ ground; 23964; 33-061-02283; 9/23/2013 Mildred Sadowsky 2-11-14H-142-97; NENW 11- tal; 2,554’ ground; 26542; 33-053-05309; 9/23/2013 Grasslands USA 21-16H; LOT2 21-150N-103W; Arikara 15-22HD; NENW 15-150N-93W; 152’FNL and 142N-97W; N/A; 550’FNL and 2,167’FWL; Willmen; Smokey 146-99-2-3-10-15H3; LOT2 3-146N-99W; 375’FSL and 1,654’FEL; Foreman Butte; N/A*; on confi- 2,630’FWL; Reunion Bay; N/A*; on confidential status; Bakken; horizontal; 2,522’ ground; 26538; 33-025- 345’FNL and 1,670’FEL; Ranch Creek; Bakken; horizon- dential status; 2,349’ ground; 24240; 33-053-04532; 2,181’ ground; 23967; 33-061-02286; 9/23/2013 02300; 9/20/2013 tal; 2,555’ ground; 26541; 33-053-05308; 9/23/2013 9/19/2013 Arikara 15-22HW; NENW 15-150N-93W; 401’FNL Smokey 146-99-2-3-10-16H; LOT2 3-146N-99W; McKenzie Ranger 22-15H; LOT3 22-150N-103W; and 2,608’FWL; Reunion Bay; N/A*; on confidential WPX Energy 345’FNL and 1,580’FEL; Ranch Creek; Bakken; horizon- 388’FSL and 1,921’FWL; Foreman Butte; N/A*; on con- status; 2,180’ ground; 23965; 33-061-02284; Independence 2-35HD; NWNE 11-149N-93W; tal; 2,554’ ground; 26544; 33-053-05311; 9/23/2013 fidential status; 2,305’ ground; 24214; 33-053-04525; 9/23/2013 565’FNL and 1,699’FEL; Mandaree; N/A*; on confiden- Smokey 146-99-2-3-10-16H3; LOT2 3-146N-99W; 9/19/2013 Arikara 15-22HX; NENW 15-150N-93W; 500’FNL and tial status; 2,236’ ground; 26519; 33-025-02299; 345’FNL and 1,610’FEL; Ranch Creek; Bakken; horizon- USA FS 26-35H; LOT3 22-150N-103W; 234’FSL and 2,599’FWL; Reunion Bay; N/A*; on confidential status; 9/19/2013 tal; 2,554’ ground; 26543; 33-053-05310; 9/23/2013 1,923’FWL; Foreman Butte; N/A*; on confidential sta- 2,178’ ground; 23963; 33-061-02282; 9/23/2013 Independence 2-35HY; NWNE 11-149N-93W; tus; 2,165’ ground; 24301; 33-053-04559; 9/19/2013 Arikara 15-22HY; NENW 15-150N-93W; 201’FNL and 568’FNL and 1,799’FEL; Mandaree; N/A*; on confiden- Newfield Production 2,626’FWL; Reunion Bay; N/A*; on confidential status; tial status; 2,237’ ground; 26517; 33-025-02297; Rolfsrud State 152-96-29-32-1H; SESE 20-152N- Location resurveyed 2,180’ ground; 23966; 33-061-02285; 9/23/2013 9/19/2013 96W; 370’FSL and 738’FEL; Westberg; N/A*; on confi- Statoil Oil and Gas Independence 2-35HZ; NWNE 11-149N-93W; dential status; 2,361’ ground; 26532; 33-053-05301; Hovde 33-4 #3H; NWNW 33-151N-100W; 230’FNL Location resurveyed 566’FNL and 1,749’FEL; Mandaree; N/A*; on confiden- 9/20/213 and 705’FWL; Sandrocks; N/A*; on confidential status; Oasis Petroleum tial status; 2,236’ ground; 26518; 33-025-02298; Rolfsrud State 152-96-29-32-2HZ; SESE 20-152N- 2,248’ ground; 23862; 33-053-04417; 9/23/2013 Freya 5892 44-34T; SESE 34-158N-92W; 950’FSL and 9/19/2013 96W; 370’FSL and 828’FEL; Westberg; N/A*; on confi- 300’FEL; Cottonwood; Bakken; horizontal; 2,440’ Mabel Levings 14-23HA; SWSW 11-149N-93W; - dential status; 2,354’ ground; 26534; 33-053-05303; Mountrail Co. ground; 26186; 33-061-02665; 9/23/2013 485’FNL and 743’FWL: Mandaree; N/A*; on confiden- 9/20/213 Permits issued tial status; 2,183’ ground; 26513; 33-025-02296; Rolfsrud State 152-96-29-32-10H; SESE 20-152N- Continental Resources Statoil Oil and Gas 9/19/2013 96W; 370’FSL and 783’FEL; Westberg; N/A*; on confi- Linbeck 1-6H; SENE 6-153N-93W; 1,609’FNL and Cvancara 20-17 #5H; SWSW 20-155N-92W; 238’FSL Mabel Levings 14-23HB; SWSW 11-149N-93W; dential status; 2,358’ ground; 26533; 33-053-05302; 855’FEL; Alkali Creek; N/A*; on confidential status; and 1,005’FWL; Alger; N/A*; on confidential status; 465’FNL and 843’FWL: Mandaree; N/A*; on confiden- 9/20/213 2,011’ ground; 26548; 33-061-02731; 9/23/2013 2,370’ ground; 26344; 33-061-02688; 9/17/2013 tial status; 2,181’ ground; 26511; 33-025-02294; Skaar 150-99-15-22-2H; NWNW 15-150N-99W; Linbeck 2-6H1; SENE 6-153N-93W; 1,647’FNL and Cvancara 20-17 #6TFH; SWSW 20-155N-92W; 9/19/2013 250’FNL and 800’FWL; South Tobacco Garden; N/A*; 831’FEL; Alkali Creek; N/A*; on confidential status; 238’FSL and 1,035’FWL; Alger; N/A*; on confidential Mabel Levings 14-23HW; SWSW 11-149N-93W; on confidential status; 2,165’ ground; 26545; 33-053- 2,013’ ground; 26549; 33-061-02733; 9/23/2013 status; 2,370’ ground; 26345; 33-061-02689; 461’FSL and 793’FWL: Mandaree; N/A*; on confiden- 05312; 9/23/2013 Linbeck 3-6H; SENE 6-153N-93W; 1,685’FNL and 9/17/2013 tial status; 2,183’ ground; 26512; 33-025-02295; Skaar 150-99-15-22-10H; NWNW 15-150N-99W; 808’FEL; Alkali Creek; N/A*; on confidential status; Cvancara 20-17 #7H; SWSW 20-155N-92W; 238’FSL 9/19/2013 250’FNL and 860’FWL; South Tobacco Garden; N/A*; 2,015’ ground; 26550; 33-061-02733; 9/23/2013 and 1,065’FWL; Alger; N/A*; on confidential status; Mabel Levings 14-23HX; SWSW 11-149N-93W; - on confidential status; 2,167’ ground; 26547; 33-053- Linbeck 4-6H1; SENE 6-153N-93W; 1,723’FNL and 2,370’ ground; 26346; 33-061-02690; 9/17/2013 485’FSL and 893’FWL: Mandaree; N/A*; on confiden- 05314; 9/23/2013 784’FEL; Alkali Creek; N/A*; on confidential status; tial status; 2,179’ ground; 26510; 33-025-02293; Skaar 150-99-15-22-30H; NWNW 15-150N-99W; 2,016’ ground; 26551; 33-061-02734; 9/23/2013 Renville Co. 9/19/2013 250’FNL and 830’FWL; South Tobacco Garden; N/A*; Linbeck 5-6H; SENE 6-153N-93W; 1,705’FNL and Permits issued on confidential status; 2,166’ ground; 26546; 33-053- 669’FEL; Alkali Creek; N/A*; on confidential status; Fram Operating Permits renewed 05313; 9/23/2013 2,023’ ground; 26552; 33-061-02735; 9/23/2013 Peterson #1; SWSW 29-160N-86W; 660’FSL and Kodiak Oil and Gas Wahus State 152-97-12-1-3H; SESE 12-152N-97W; Linbeck 6-6H1; SENE 6-153N-93W; 1,748’FNL and Skunk Creek 4-8-17-14H; NWNW 8-148N-93W; 315’FSL and 545’FEL; Westberg; N/A*; on confidential 645’FEL; Alkali Creek; N/A*; on confidential status; see ND PERMIT page 13 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 13 IPs for ND Bakken wells September 17—23, 2013

This chart contains initial production rates, or IPs, for active wells that were filed as completed with the state of North Dakota from Sept. 17 to Sept. 23, 2013 in the Bakken petroleum system, which includes formations such as the Bakken and Three Forks. The completed wells that did not have an avail- LEGEND able IP rate (N/A) likely haven’t been tested or were awarded confidential (tight-hole) status by the North Dakota Industrial Commission’s Department of The well operator’s name is on the upper line, followed by individual wells with Minerals. This chart also contains a section with active wells that were released from confidential status during the same period, Sept. 17 to Sept. 23. data in this order: NDIC file number; well name; field; location; spacing; county; Again, some IP rates were not available (N/A). The information was assembled by Petroleum News Bakken from NDIC daily activity reports and other geologic target; wellbore type; total depth; IP test date; IP oil flow rate. (IP sources. The name of the well operator is as it appears in state records, with the loss of an occasional Inc., LLC or Corporation because of space limita- stands for initial production; in this chart it’s the first 24 hours of oil production.) tions. Some of the companies, or their Bakken petroleum system assets, have been acquired by others. In some of those cases, the current owner’s name is in parenthesis behind the owner of record, such as ExxonMobil in parenthesis behind XTO Energy. If the chart is missing current owners’ names, please contact Ashley Lindly at [email protected].

IPs for completed North Dakota wells Top 10 Bakken wells by IP rate Kodiak Oil and Gas Continental Resources 24786; Smokey 13-7-19-14H; Pembroke; LOT4 7-149N-98W; N/A; 23077; Oscar 2-24H; Stoneview; NWNW 24-161N-95W; 4SEC; Divide; Oasis Petroleum McKenzie; Bakken; horizontal; N/A; N/A; N/A Bakken; horizontal; 18,684; 8/30/2013; 455 bbl 24645; Pingora 5200 41-20B; Camp; McKenzie; 3,107 bbl 24787; Smokey 13-7-19-14H3M; Pembroke; LOT4 7-149N-98W; N/A; 23078; Oscar 3-24H; Stoneview; NWNW 24-161N-95W; 4SEC; Divide; 23702; Taylor N 5200 14-29B; Camp; McKenzie; 3,072 bbl McKenzie; Bakken; horizontal; N/A; N/A; N/A Bakken; horizontal; 18,954; 8/28/2013; 259 bbl 23663; Zimmerman 2-13H; Stoneview; NWNW 24-161N-95W; 4SEC; HRC Operating (Halcon Resources) Liberty Resources Divide; Bakken; horizontal; 19,162; 8/28/2013; 207 bbl 22383; Fort Berthold 147-94-1B-12-3H; McGregory Buttes; Dunn; 24303; Anderson 152-103-21-16-1H; Glass Bluff; SWSE 21-152N-103W; 2,710 bbl 2SEC; McKenzie; Bakken; horizontal; 20,098; 4/8/2013; 554 bbl HRC Operating (Halcon Resources) 22383; Fort Berthold 147-94-1B-12-3H; McGregory Buttes; NWNW 1- Kodiak Oil and Gas Marathon Oil 147N-94W; 2SEC; Dunn; Bakken; horizontal; 20,453; 5/21/2013; 2,710 bbl 23669; Koala 8-5-6-5H; Poe; McKenzie; 2,660 bbl 24973; Brigner 24-24H; Bailey; NENW 25-145N-94W; 2SEC; Dunn; Bakken; horizontal; 20,990; 7/25/2013; 2,437 bbl Hunt Oil Marathon Oil 25113; Glenn Scott 24-31H; Murphy Creek; SESW 31-144N-95W; 2SEC; 24585; Bear Butte 1-6-7H; Little Tank; NWNE 6-148N-101W; 2SEC; 24973; Brigner 24-24H; Bailey; Dunn; 2,437 bbl Dunn; Bakken; horizontal; 20,779; 7/16/2013; 1,592 bbl McKenzie; Bakken; horizontal; 20,601; 9/9/2013; 318 bbl Kodiak Oil and Gas Newfield Production Kodiak Oil and Gas 23668; Koala 8-5-6-4H3; Poe; McKenzie; 2,432 bbl 24996; Lawlar 150-98-18-19-2H; Siverston; SESW 7-150N-98W; 2SEC; 23668; Koala 8-5-6-4H3; Poe; SENE 5-151N-99W; 2SEC; McKenzie; McKenzie; Bakken; horizontal; 22,013; 7/10/2013; 1,541 bbl Bakken; horizontal; 20,930; 9/19/2013; 2,432 bbl Newfield Production 24998; Lawlar 150-98-18-19-3H; Siverston; SESW 7-150N-98W; 2SEC; 23669; Koala 8-5-6-5H; Poe; SENE 5-151N-99W; 2SEC; McKenzie; Bakken; 24996; Lawlar 150-98-18-19-2H; Siverston; McKenzie; 1,541 bbl McKenzie; Bakken; horizontal; 21,578; 7/9/2013; 1,565 bbl horizontal; 20,489; 8/17/2013; 2,660 bbl 23670; Koala 8-5-6-5H3; Poe; SENE 5-151N-99W; 2SEC; McKenzie; Statoil Oil and Gas North Plains Energy Bakken; horizontal; 20,440; 8/15/2013; 1,043 bbl 23630; Reiten 23-14 2H; Painted Woods; Williams; 1,975 bbl 24137; Sorenson 160-100-27-34-4A-1H; Smokey Butte; NWNW 27-160N- 100W; 2SEC; Divide; Bakken; horizontal; 18,912; 5/4/2013; 266 bbl Oasis Petroleum XTO Energy (ExxonMobil) 24645; Pingora 5200 41-20B; Camp; SWSW 20-152N-100W; 2SEC; 24943; Sax 41X-26D; Siverston; McKenzie; 1,780 bbl Oasis Petroleum (Oasis) McKenzie; Bakken; horizontal; 20,509; 8/12/2013; 3,107 bbl 24038; FBIR Darcie 34X-14D; Heart Butte; Dunn; 1,620 bbl 24022; Autumn Wind State 5601 14-16B; Tyrone; NENE 16-156N-101W; 2SEC; Williams; Bakken; horizontal; 20,200; 3/13/2013; 1,549 bbl Statoil Oil and Gas Note: This chart contains initial production rates, or IPs, from the adjacent IP chart 23702; Taylor N 5200 14-29B; Camp; NENE 29-152N-100W; 2SEC; 23991; Johnston 7-6 2TFH; Banks; SESE 7-152N-98W; 2SEC; McKenzie; for active wells that were filed as completed with the state of North Dakota from McKenzie; Bakken; horizontal; 20,690; 4/2/2013; 3,072 bbl Bakken; horizontal; 21,953; 8/19/2013; 4,071 bbl Sept. 17 to Sept. 23, 2013 in the Bakken petroleum system, as well as active wells 23630; Reiten 23-14 2H; Painted Woods; NWNE 26-154N-103W; 2SEC; that were released from tight-hole (confidential) status during the same period. The QEP Energy 23097; MHA 2-06-31H-150-92; Heart Butte; SWSE 6-149N-92W; N/A; Williams; Bakken; horizontal; 21,105; 8/21/213; 1,975 bbl well operator’s name is on the upper line, followed by individual wells; the NDIC file Dunn; Bakken; horizontal; N/A; N/A; N/A number; well name; field; county; IP oil flow rate in barrels of oil. Whiting Oil and Gas 23093; MHA 3-06-31H-150-92; Heart Butte; SWSE 6-149N-92W; N/A; 25386; Liebl 31-13H; Alger; NWNE 13-155N-93W; SEC; Mountrail; Dunn; Bakken; horizontal; N/A; N/A; N/A Bakken; horizontal; 15,135; 8/11/2013; 1,142 bbl 24809; Wahpeton 9-16H; Banks; NWNE 16-152N-99W; N/A; McKenzie; Bakken; horizontal; N/A; N/A; N /A Statoil Oil and Gas IPs for ND wells released from confidential status 24808; Wahpeton 10-16H2; Banks; NWNE 16-152N-99W; N/A; McKenzie; 24633; Blanche 27-22 #2TFH; Painted Woods; NENE 34-154N-102W; N/A; Bakken; horizontal; N/A; N/A; N /A Williams; Bakken; horizontal; N/A; N/A; N/A 24634; Blanche 27-22 #7H; Painted Woods; NENE 34-154N-102W; N/A; Baytex Energy Williams; Bakken; horizontal; N/A; N/A; N/A 24216; Leo 5-8-161-97H 1XH; Frazier; SESW 32-162N-97W; 2SEC; Divide; EOG Resources Bakken; horizontal; 18,948; 5/21/2013; 224 bbl 20329; West Clark 4-2425H; Clarks Creek; SWNE 24-151N-95W; ICO; Triangle USA Petroleum 23602; Pulvermacher 34-27-162-99H 1NC; Ambrose; SESW 34-162N-99W; McKenzie; Bakken; horizontal; 19,594; 5/9/2013; 1,203 bbl 23464; Dwyer 149-101-2-11-1H; Antelope Creek; LOT2 2-149N-101W; 2SEC; Divide; Bakken; horizontal; 18,467; 5/6/2013; 284 bbl Fidelity Exploration and Production (MDU) 2SEC; McKenzie; Bakken; horizontal; 20,498; 5/19/2013; 428 bbl Burlington Resources Oil and Gas (ConocoPhillips) 24074; Enander 41-32H-29; Stanley; NENE 32-155N-91W; 2SEC; WPX Energy 24259; Glacier 14-9MBH; Clear Creek; SESW 9-151N-96W; N/A; Mountrail; Bakken; horizontal; 15,875; 3/29/2013; 285 bbl 23312; Good Bird 36-25HB; Moccasin Creek; SWSE 36-148N-93W; 2SEC; McKenzie; Bakken; horizontal; N/A; N/A; N/A 24030; Larry 41-7H; Heart River; NENE 7-139N-97W; SEC; Stark; Bakken; Dunn; Bakken; horizontal; 20,664; 6/9/2013; 690 bbl 24260; Glacier 24-9TFH; Clear Creek; SESW 9-151N-96W; N/A; McKenzie; horizontal; 14,695; 3/31/2013; 654 bbl Bakken; horizontal; N/A; N/A; N/A Hess XTO Energy (ExxonMobil) 24038; FBIR Darcie 34X-14D; Heart Butte; SWSE 14-148N-92W; 2SEC; Continental Resources 24870; EN-Fretheim A 155-93-3334H-7; Robinson Lake; SESE 32-155N- Dunn; Bakken; horizontal; 20,077; 6/20/2013; 1,620 bbl 24966; Tangsrud 10-1H2; Hayland; LOT2 1-160N-96W; N/A; Divide; 93W; N/A; Mountrail Bakken; Mountrail; N/A; N/A: N/A 24943; Sax 41X-26D; Siverston; NENE 26-151N-98W; 2SEC; McKenzie; Bakken; horizontal; N/A; N/A; N/A 24869; EN-Fretheim A 155-93-3334H-8; Robinson Lake; NESE 32-155N- Bakken; horizontal; 20,683; 8/4/2013; 1,780 bbl 24928; Tangsrud 11-1H1; Hayland; LOT2 1-160N-96W; N/A; Divide; 93W; N/A; Mountrail Bakken; Mountrail; N/A; N/A: N/A Bakken; horizontal; N/A; N/A; N/A 24783; LK-Bice-147-97-1 1201H-4; Big Gulch; SWSE 12-147N-97W; N/A; —Compiled by Ashley Lindly 24929; Tangsrud 12-1H3; Hayland; LOT2 1-160N-96W; N/A; Divide; Dunn; Bakken; horizontal; N/A; N/A; N/A Bakken; horizontal; N/A; N/A; N/A 25095; LK-Bice 147-97-1201H-5; Big Gulch; SWSE 12-147N-97W; N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A

continued from page 12 1,341’FWL; Tioga’ N/A*; on confidential status; 2,350’ ground; 26509; 33- Triangle USA Petroleum 105-03228; 9/19/2013 State 154-102-25-36-5TFH; NENW 25-154N-102W; 500’FNL and ND PERMIT 2,070’FWL; Rosebud; Bakken; horizontal; 2,108’ ground; 26494; 33-105- Kodiak Oil and Gas 03219; 9/17/2013 660’FWL; Norma; N/A**; on confidential status; 1,845’ ground; 26508; P Peterson 155-99-3-15-22-13H3; NENW 15-155N-99W; 320’FNL and 33-075-01447; 9/19/2013 1,955’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26564; 33-105- Permits renewed 03229; 9/23/2013 Statoil Oil and Gas Stark Co. P Peterson 155-99-3-15-22-14H; NENW 15-155N-99W; 320’FNL and Syverson 1-12 3TFH; LOT1 1-155N-100W; 425’FNL and 390’FEL; Stony Permits cancelled 1,985’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26565; 33-105- Creek; N/A*; on confidential status; 2,271’ ground; 24001; 33-105-02831; Hess 03230; 9/23/2013 9/23/2013 RC-Lonna-140-95- 2932H-1; NENW 29-140N-95W; 325’FNL and P Peterson 155-99-3-15-22-14H3; NENW 15-155N-99W; 320’FNL and Syverson 1-12 4H; LOT1 1-155N-100W; 425’FNL and 360’FEL; Stony 2,320’FWL; Davis Buttes; N/A*; on confidential status; 2,494’ ground; 2,015’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26566; 33-105- Creek; N/A*; on confidential status; 2,272’ ground; 24002; 33-105-02832; 24025; 33-089-00748; 9/19/2013 03231; 9/23/2013 9/23/2013 P Peterson 155-99-3-15-22-15H; NENW 15-155N-99W; 320’FNL and Williams Co. 2,045’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26567; 33-105- * Note-The geologic target for these wells was not listed in its well file because they are a Permits issued 03232; 9/23/2013 tight (confidential) hole, but the following fields produce from the Bakken pool; Alger, Hess Alkali Creek, Ambrose, Banks, Bear Butte, Colgan, Davis Butte, Eagle Nest, Foreman Butte, GN-Avinder- 158-98-1423H-1; SESE 10-158N-98W; 364’FSL and Oasis Petroleum Heart Butte, Lost Bridge, Mandaree, Poe, Ragged Butte, Rainbow, Reunion Beach, 294’FEL; Rainbow; N/A*; on confidential status; 2,207’ ground; 26499; 33- Hendricks 5602 43-36 #2T; SWSE 36-156N-102W; 220’FSL and Sandrocks, Sanish, Sather Lake, South Fork, South Tobacco Garden, Stony Creek, Tioga, and 105-03223; 9/17/2013 1,680’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26502; 33-105- Westberg. GN-Ringabeu- 158-98-1102H-1; SESE 10-158N-98W; 364’FSL and 03224; 9/18/2013 327’FEL; Rainbow; N/A*; on confidential status; 2,207’ ground; 26498; 33- Hendricks 5602 43-36 #3B; SWSE 36-156N-102W; 220’FSL and ** Note-The geologic target for these wells was not listed in its well file because they are a 105-03222; 9/17/2013 1,630’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26503; 33-105- tight (confidential) hole, but the Norma field produces from the Madison pool and the GN-PNR- 158-98-1003H-1; SESE 10-158N-98W; 364’FSL and 393’FEL; 03225; 9/18/2013 Northeast Landa field produces from the Spearfish/Madison pool. Rainbow; N/A*; on confidential status; 2,207’ ground; 26496; 33-105- Hendricks 5602 43-36 #4T; SWSE 36-156N-102W; 220’FSL and 03220; 9/17/2013 1,580’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26504; 33-105- —Compiled by Ashley Lindly GN-Ring- 158-98-1522H-1; SESE 10-158N-98W; 364’FSL and 360’FEL; 03226; 9/18/2013 Rainbow; N/A*; on confidential status; 2,207’ ground; 26497; 33-105- Hendricks 5602 43-36 #5B; SWSE 36-156N-102W; 220’FSL and 03221; 9/17/2013 1,530’FEL; Tyrone; Bakken; horizontal; 2,271’ ground; 26505; 33-105- TI-Blikre- 158-95-1324H-2; NENW 13-158N-95W; 257’FNL and 03227; 9/18/2013 14 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

continued from page 1 more than 57,000 miles of pipeline were constructed in North Dakota. In fact, ASSOCIATIONS & EVENTS CORRECTION from 2010 through 2012, a total of 4,823 miles of pipeline were constructed in the NDPC elects directors at annual meeting 2,353 miles of pipeline constructed in state. 2011, and well over double the 1,010 —MIKE ELLERD At its annual meeting in Grand Forks on Sept. 18, the North Dakota Petroleum miles of pipeline that were constructed in Council elected two new members to its board of directors, and one new member the state in 2010. to its executive committee. The council also reelected two members to the exec- The Sept. 22 article also incorrectly utive committee, and reelected 12 board members whose terms were expiring. In reported that from 2009 through 2012, addition, the council named three people to existing board seats that had been vacated. The two new members elected to three-year terms on the board of directors are continued from page 1 rels through July. The Burke 18-27H well Pam Roth of WPX Energy and Sean Smith of QEP Energy. Kent Beers of Oasis went on production in September 2009 Petroleum was elected to a two-year term as a new member of the executive com- EOG INFILLING with an IP of 765 bpd and has produced mittee. Steve McNally of Hess Corp. and Blu Hulsey of Continental Resources 159,645 barrels through July. were reelected to the executive committee. lion barrels, for an average of 570,000 According to North Dakota The 12 members reelected to three-year terms on the board were: Mike barrels per well. For a nine-well scenario, Department of Mineral Resources Oil and Armstrong, Armstrong Corp.; Jim Arthaud, MBI; John Berger, Tesoro; Eric Dille, EOG reports an EUR of 4.41 million bar- Gas Division records, EOG currently has EOG Resources; Jim Glenn, Halcon; Blu Hulsey, Continental Resources; Bob rels for an average of 490,000 barrels per 447 wells on active status in the state and Mau, MW Industries; Steve Pine, Pine Petroleum; Jim Powers, Powers Energy; well. Those EURs represent reservoir another 46 that are on confidential status. Craig Smith, Crowley Fleck; Tad True, True Cos.; and Robert Steede, recoveries of 3.0 and 7.6 percent. The In the Parshall field alone, EOG has 192 Pipelines. 1,920-acre infilling is estimated to result active wells and 29 on confidential status. Terry Kovacevich of Marathon Oil is chairman of the board, and Perry Pearce in an incremental gain of 2.7 million bar- Other areas where EOG has focused of ConocoPhillips is the board’s vice chairman. Jeff Herman of Petro-Hunt is the rels. As with the 1,280-acre units, the new activity include the Alger, Clear Water, secretary/treasurer. All three are in the middle of current terms. wells on the 1,920-acre units will be split Stanley, Spotted Horn, Squaw Creek and Other members of board currently serving three-year terms are: Daryl between the Bakken and Three Forks for- Van Hook fields in Mountrail and Andersen, Hams Well Service Inc.; Lawrence Bender, Fredrickson & Byron; mations. McKenzie counties. Mike Fitzgibbons, Oneok; Greg Harrison, OXY USA; Mark Johnsrude, Badlands Of the three reference wells, the Burke According to Oil and Gas Division Power Fuels; Don Kessel, Murex Petroleum; Ryan Kopseng, Missouri River 1-34 well went on production in records, EOG ranked fifth among North Royalty; Dan Larson, Enerplus; Ryan Leininger, New Wave Energy Service; Ken November 2008 with a 24-hour initial Dakota oil producers in July averaging Luff, Luff Exploration; Lynn Moser, Inland Oil and Gas; Kathy Neset, Neset production, IP, of 1,206 barrels and 47,399 bpd, not counting production from Consulting; Russell Rankin, Statoil; Tony Straquadine, Alliance Pipeline; Darwin through July 2013 produced a total of confidential wells. Subart, Fidelity Exploration and Production; and Lisa Wynn, XTO 287,648 barrels. The Burke 2-35H also Energy/ExxonMobil. went on production in November 2008, and that well came in with a 24-hour IP of —MIKE ELLERD 1,937 bpd and has produced 274,589 bar-

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Abrasives Fortis Energy Services North Slope Telecom (NSTI) Alaska Textiles Four Seasons Equipment ...... 15 Northern Oilfield Services, Inc. Alliance Pipeline Futaris OFS Energy Fund Allstate Peterbilt Group Gray Wireline Petroleum News Bakken American Association of Railroads (AAR)...... 16 Guard-All Pierce Leasing Anvil Corporation...... 15 Halcon Resources Plainsman Mfg. Inc. Arctic Catering HMG Automation, Inc. Polyguard Products Bakken Solids Control Services Investors First Capital Premier Community Homes Ltd. Beaver Creek Archaeology Iseman Homes Quality Mat BTL Liners Kilo Technologies Ltd. Reef Oil & Gas Cancade Company Limited Larson Electronics LLC Rigid Global Buildings ...... 16 CESI Chemical Lister Industries...... 3 Ritchie Bros. Auctioneers City of Grand Forks, ND LT Environmental ShelterLogic ClearSpan Fabric Structures ...... 5 Lynden Spartan Engineering Cruz Energy Services LLC (A CIRI Co.) M SPACE...... 4 TenCate CST Storage Marmit Plastics Tremcar Inc. Dakota Landing Midwest Industrial Supply Trinity Health Occupational Medicine...... 3 DAWA Solutions Group Miller Insulation Co. Umiaq Deep Casing Tools MT Rigmat LLC ...... 4 Unconventional Resources Technology E3 Energy and Environmental Experts ...... 15 Muth Pump LLC UNICO Inc. Ebeltoft Sickler Netzsch Pumps North America Unit Drilling Company Elite Tank North Dakota Petroleum Council Wanzek Construction PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 15

LAND & LEASING continued from page 1 Earlier in September, Norstra NORSTRA WELL announced that it entered into Whiting closes $260 million acquisition an agreement with Faith nomic quantities, but is potentially Whiting Petroleum Corp. has closed a previously announced $260 million Drilling to set the surface indicative of oil migrating from other acquisition from an undisclosed private party of producing oil and gas wells and casing on the company’s first deeper accumulations, one hypothesis development acreage in the Williston well. In subsequent phases, being seepage up faults with the origi- Basin. The closing was announced in a nating formation being the Bakken,” Norstra plans to complete the Sept. 20 release from the company. The properties consist of Norstra said in the Sept. 25 announce- well to a vertical depth of 8,800 The properties consist of approxi- approximately 17,282 net ment. feet with a one-mile lateral. mately 17,282 net (39,310 gross) acres (39,310 gross) acres in Williams Earlier in September, Norstra in Williams and McKenzie counties of and McKenzie counties of North announced that it entered into an North Dakota and Roosevelt and documents and other materials that Dakota and Roosevelt and agreement with Faith Drilling to set Richland counties of Montana. Norstra provided. However, the letter Richland counties of Montana. the surface casing on the company’s The properties produced an average of intent on that venture expired with first well. In subsequent phases, of 2,420 barrels of oil equivalent a day no agreement reached. Since then, Norstra plans to complete the well to a in August. Norstra announced that it had partially vertical depth of 8,800 feet with a one- Whiting said it estimates proved reserves of 17.1 million barrels of oil equiv- completed a debenture financing for mile lateral. alent, about 85 percent of which is oil. It estimates 24 percent of the reserves are the project in addition to other funds As Petroleum News Bakken report- “proved developed producing” and 76 percent are “proved undeveloped.” the company previously raised to ed in early September, Norstra had The acquired assets include 13 operated 1,280-acre Bakken/Three Forks finance its Montana exploration proj- received notice from spacing units with an average working interest of 58 percent and net rev- ect. Drilling LLC, a potential joint venture enue interest of 48 percent. Ninety-two percent of the acreage is held by produc- —MIKE ELLERD investment partner in the project, indi- tion. cating it had nearly completed its due Denver-based Whiting funded the acquisition with borrowings under its exist- diligence and was satisfied with the ing bank credit facility. The $260 million purchase price is subject to customary post effective date closing adjustments for revenues and expenses, Whiting said. —STEVE SUTHERLIN Serving the Oil & Gas Industry since 1971 continued from page 1 According to court documents, the 100% ESOP-Owned GMX MOVES company’s cash position dropped from $107 million in the fourth Upstream | | Downstream value. quarter of 2011 down to $18 “The stalking horse APA is, in the busi- Safety  Quality  Experience  Leadership  Resources million in the third quarter of ness judgment of the debtors, an agree- Value to every client on every project ment that allows the debtors to preserve, 2012. maintain and improve the marketability of ANCHORAGE, AK BELLINGHAM, WA BILLINGS, MT CONCORD, CA RD the purchased assets, while at the same down to $18 million in the third quarter of 509 W. 3 AVE 1675 W. Bakerview 1015 Broadwater 5600 Imhoff Dr. time allowing the debtors to seek higher 2012. and better bids,” the company said in an In 2010, the company made a strategic earlier motion to the Oklahoma bankrupt- decision to expand from East Texas into cy court. basins with oil potential. In early 2011, the company acquired positions in more than No other options 75,000 undeveloped net acres in the SERVING THE BAKKEN SINCE 2009 GMX told the court that it was not able Williston Basin of North Dakota and to raise enough capital elsewhere to con- Montana, targeting the Bakken and Three ENVIRONMENTAL SERVICES tinue operating. The company had been Forks formations, and in the Denver PERMITTING hammered by the decline in natural gas Julesburg Basin of Wyoming, targeting the prices. emerging Niobrara play. STATE SITING “The debtors have been unable to raise GMX did boost production to about NEPA (USFS, BLM, USACE) sufficient capital to continue operating and 5,400 barrels of oil equivalent per day — ENV. SURVEY & INSPECTION developing their assets because of the but that was only 11 percent of the compa- debtors’ current capital structure and the ny’s total net output according to last PH: 888-414-2048 decline in the price of natural gas,” GMX year’s third quarterly financial statement WWW.GO2E3.COM said. to the SEC. In its April 1 bankruptcy filing GMX CROSBY, ND ST. PAUL, MN DICKINSON, ND listed assets of $281.1 million and debt of $458.5 million as of Dec. 1. In June, GMX reported losses for eight consecutive quarters. According to court documents, the company’s cash position dropped from $107 million in the fourth quarter of 2011

continued from page 5 DELIVERY GAP Multiyear agreement Buckeye Partners, which operates a terminal at Albany, has a multiyear agreement with Irving to provide crude shipments from its 1.8 million barrels of storage. Buckeye and another Albany ter- minal run by Global Partners had been receiving more than one unit train a day of crude from North Dakota before Lac-Megantic. Neither privately owned Irving nor the terminal operators was available to comment about the current status of their operations, or what they have planned. 16 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

continued from page 6 have been higher yet were it not for in- drilling rates exceeding 1,000 feet per day Hill said the oil production growth transit rail shipments awaiting delivery. — or less than 20 days drilling.” he said. WPX SURGE rate achieved by WPX in the The rail delays sliced deliveries by about Early in 2013, WPX completed its first Williston basin has been 500 barrels per day in second quarter 2013, “triple zipper frack,” completing three costs in North Dakota, making it possible impressive — up 30 percent in the to a level of 12,300 barrels per day. wells at once. Hill indicated that multiple to do more drilling and completions this Still, production grew, Hill said, adding zipper frack results were positive. year than originally planned without second quarter compared with a year ago. that WPX put nine wells on first sales in “Our zero frack completions have been increasing our rig count and all within our the second quarter — seven in the Middle very successful, and we recently complet- capital guidance range.” Bakken, and two in the Three Forks. ed our first triple zipper frack successful- Hill said operational improvements led our Williston production by eight per- cent.” “We spud 11 wells with the four rigs; ly.” Hill said. “On a go-forward basis, we to seven more wells drilled and 11 addi- our wells continue to perform at or above intend to use these dual and triple-zipper tional completions in 2013 — a total of Oil production growth our expectations,” he said. “We have low- fracs.” 46 spuds and 52 completions. ered our well costs throughout the basins.” Hill added that infrastructure to the Hill said the oil production growth rate “We expect this to increase the year- company’s Williston operations is improv- achieved by WPX in the Williston basin end exit rate for our Williston oil produc- ing. The company will electrify 51 of its 55 has been impressive — up 30 percent in tion by more than 2,000 barrels per day Honing company technique Van Hook wells by the end of the year — or 15 percent — to a new total of the second quarter compared with a year Hill said a variety of operating efficien- which will slash its lifting costs, and it is 15,000 barrels of oil per day. For 2014 ago. cies were allowing WPX to make more building all of its winter pads in summer to this additional activity should increase The company said production would headway in the Bakken, in a shorter length save money. of time. “We have now fully transitioned to pad Target well cost eludes drilling and we have implemented simulta- While efficiency improvements have neous operations which allows us to drill, been many, WPX still finds its well costs produce, and complete at the same time on looming above the company’s target cost. the same pad,” he said. “Over the last year, “Our well costs are still in the $11 mil- we reduced our drilling times by 35 per- lion range — that’s soup to nuts; that cent; our last two wells have averaged 22 includes everything,” Hill said. “Our target and 24 days respectively in drilling. well costs are more like $10 million. We “In addition to faster drilling times, we expect to be headed that way in the third are now drilling all our wells with brine and fourth quarter.” water, and two of our wells TD’d at Given challenging 2013 weather condi- tions, Hill said, he felt fortunate that WPX was able to make the strides it did. “Obviously, in the first quarter, we had a severe winter. We had severe flooding the second quarter,” he said. “You can see we will still get a number of spuds off and completions done, so we did very well there.” Some costs — notably ceramic prop- pants — are higher by design and judged AN INDUSTRY THAT well worth the cost. WPX said it is using ceramic proppant in the Bakken rather than just sand. “We’re currently using about a two- thirds to one-third ratio of ceramic to sand,” the company’s operations depart- . ment said. “Although that adds about $1 MOVES INDUSTRY million to our costs, ceramic completions $ are more predictable than sand, leading to Privately owned freight railroads invest more than 20 BILLION annually on the rail network to ensure better results.” that America’s energy sources are moved in the safest, most efficient and cost-effective way possible. As for the future, Hill has yet to throw out specific numbers but he does say the future looks bright. “We have not given out guidance for ‘14,” he said, “But obviously we expect very impressive growth rates for the Williston basin for 2014.”

page Senate majority leader weighs in on 6 North Dakota oil, gas legislation

Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013

COMPANY UPDATE Crude on rails in for long haul WLL gets bum rap James. T. Brown: Whiting Petroleum is not running out of drilling inventory

ticularly acute when it comes to finding VERN WHITTEN PHOTOGRAPHY By RAY TYSON Petroleum News Bakken new targets in Whiting’s flagship Sanish field in North Dakota’s Williston Basin, enver-based E&P independent which accounts for around 30,000 barrels DWhiting Petroleum Corp. is finding per day, or nearly 40 percent of the compa- it difficult convincing investors that the ny’s roughly 80,000 barrels per day of pro- company is not running out of suitable duction. Plains All American’s Manitou crude oil and NGL rail facility near By the end of 2012, a total of about 300 Ross, west of Stanley in Mountrail County, North Dakota. Photo places to drill. taken this winter by Vern Whitten. See rail story below. “The knock against Whiting is that you production wells had been drilled in the guys don’t have any inventory and in three JAMES T. BROWN Sanish field, with at least another 200 to be years you’re going to be done,” James T. drilled and completed. Rail will survive pipeline additions Brown, Whiting’s president and chief operating offi- “It seems that when we get to the end of every The need for rail to move crude from cer, told industry analysts Feb. 6 at the Credit Suisse year, we have two-and-half to three years of drilling Midcontinent fields will likely persist, 2013 Energy Summit in Vail, Colo. even if plans for expanding pipeline The lack-of-inventory perception seems to be par- see WHITING INVENTORY page 18 links from the Bakken to the Gulf Coast go ahead, EOG Resources Chief LAND & LEASING Executive Officer Mark Papa told a Colorado conference. He said rail will still be used five Riverbed draws top bids years from now to deliver Bakken crude to all three Lower 48 coasts — the Gulf, MARK PAPA East and West — but expects the cur- QEP Energy high bidder on 22 Missouri River leases; shore zone included rent advantage of Louisiana Light Sweet, LLS, crude prices third or 9,900 acres were in in the Houston market will probably change within 18 By MIKE ELLERD For Petroleum News Bakken 106 Missouri riverbed tracts in see RAIL SURVIVAL page 24 Dunn County and those tracts total of 27,370 acres brought in a total $21,227,455, Bakken threatens Alberta upgrader A were leased in 306 tracts a sum that accounted for more in nine western North Dakota than 86 percent of the gross The Bakken might be about to register a friendly-fire vic- counties in the Feb. 5 North auction proceeds. tim — a C$11.6 billion Suncor Energy upgrader to convert oil Dakota Department of Trust The Dunn County lease sands bitumen into synthetic crude for refining into fuels. Lands oil and gas lease auction activity was, in turn, dominat- Suncor, with France’s Total as a 49 percent partner, expects bringing in a total of LANCE GAEBE DREW COMBS ed by 22 Missouri riverbed to decide no later than March 31 on the immediate fate of its $24,609,206 at an average tracts totaling 1,465 acres that Voyageur project, which has been in a holding pattern for the price of $899 per acre. The auction was dominated by fetched a total of $16,536,197 at an average price of last four years, putting an end to its original startup date of tracts between the former high water marks on the $11,291 per acre, all purchased by Denver-based 2016. two banks of the Missouri River under Lake QEP Energy Co. Since taking control of the oil sands giant nine months Sakakawea in Dunn County. ago, Suncor Chief Executive Officer Steve Williams has Of the 27,370 acres leased, slightly less than one- see ND LEASE AUCTION page 21 increasingly hinted that economic challenges could be the undoing of Voyageur. ASSOCIATIONS His explanation has been delivered in clear-cut terms. see ALBERTA UPGRADER page 24 Galt: MPA ever vigilant Helms slams U.S. Fish & Wildlife Montana Petroleum Association chief keeps tabs on several bills during session Two new slides have appeared in Lynn Helms’ presentation packet — By MIKE ELLERD temporary leasing of water rights, financial slides with information that he thinks For Petroleum News Bakken relief to oil and gas-impacted communities, indicate an attempt by and carbon sequestration and enhanced oil the U.S. Fish & Wildlife umerous oil and gas-related bills recovery using carbon dioxide. Service to take over oil Nhave been introduced thus far in the and gas permitting in 63rd session of the Montana legislature Property rights: surface North Dakota. currently in session in Helena, and while damage compensation One is a map backing up his agency’s Montana Petroleum Association Executive House Bill 431, introduced by Rep. recent analysis that shows 83 percent of Director Dave Galt follows all of them LYNN HELMS Austin Knudsen of Culbertson, is a surface North Dakota’s oil and gas spacing units closely, he recently spoke with Petroleum DAVE GALT damage compensation bill that would add have some federal land ownership, surface and/or minerals. News Bakken and discussed those that he to the existing oil and gas surface damage Helms, director of the North Dakota Industrial thinks are most important to his membership. and disruption compensation statue the definition of Commission’s Department of Minerals, Oil and Gas Division, The key bills Galt identified fall into a variety of “lost land value” as “the value of the highest and best told North Dakota lawmakers in January, “It was really sur- categories. Some deal with compensation for reasonably available use, including the proposed use.” prising to me when we did this analysis to find out that 83 landowner surface damage, eminent domain and The bill would also require that the surface owner and forced pooling, all of which Galt lumps together into the oil and gas developer or operator attempt “in good see PERMITTING page 10 what he considers to be “property rights” legislation. GETOther bills that Galt considers key deal with taxation, see ENERGY LEGISLATION page 22 THE LATEST For more information visit: BAKKEN NEWS www.aar.org/crudebyrailfacts SUBSCRIBE TODAY! Designed to Move a Nation 907-522-9469 PETROLEUMNEWSBAKKEN.COM