Spring 2013 BASINThe Official Publication of the North Dakota Association BITS of Oil & Gas Producing Counties BakkenBakken Bucks Beyond the Border Upping Your Downtown Drumming Up Day Care Cleaning Up Their Act A Real Flair for the Environment The Bakken Top 20 COMPLIMENTARY PLEASE TAKE ONE! Table of Spring 2013 BASINThe Official Publication of the North Dakota Association BITS of Oil & Gas Producing Counties BakkenBakken Bucks Beyond the Border Spring 2013 Contents Upping Your Downtown Drumming Up Day Care Cleaning Up Their Act A Real Flair for the Environment The Bakken Top 20 COMPLIMENTARY PLEASE TAKE ONE! BASIN BITS Basin Bits Printed for: The North Dakota Association of Oil & Gas Producing Counties Association Office 400 East Broadway, Suite 304 Bismarck, ND 58501 Tel: (701) 751-3597 Fax: (701) 751-3597 www.ndenergy.org Vicky Steiner, Executive Director Tel: (701) 290-1339 (cell) P. 25 P. 98 E-mail: [email protected] Brady Pelton, Deputy Executive Director Tel: (701) 260-2479 OPENING REMARKS E-mail: [email protected] 13 From the Desk of the North Dakota Association of Oil Disclaimer: The articles presented in this publication represent the opinions of the authors and the & Gas Producing Counties’ President interviewees. Their inclusion does not directly or implicitly denote concurrence or support by the North 17 From the Desk of the North Dakota Association of Oil Dakota Association for Oil & Gas Producing Counties. Articles were reviewed by NDAOGPC staff and selected & Gas Producing Counties’ Executive Director for inclusion as they represent issues of interest to professionals in our industry. 21 A Message from the North Dakota Department of Mineral Resources SPECIAL SECTION 25 Your Guide to the 21st Annual Williston Basin Petroleum Conference A CLOSER LOOK 34 Bakken Bucks Beyond the Border BASIN BITS | Spring 2013 7 Table of Spring 2013 Contents FEATURES BASIN BITS 42 Flockin’ to the Bakken Printed by: Matrix Group Publishing Inc. Please return undeliverable addresses to: 46 Oil and Water Don’t Mix, But Then Again… 5190 Neil Road, Suite 430 Reno, NV 89502 53 Upping Your Downtown Toll free: (866) 999-1299 Toll free fax: (866) 244-2544 58 Drumming Up Day Care President & CEO Jack Andress 63 Plenty of Action Chief Operating Officer Jessica Potter 68 Staggering One-Year Success: A Vision West Progress Update [email protected] 75 Proposed Changes to the Uniform Truck Permit System Publisher Peter Schulz 82 Cleaning Up Their Act Editor-in-Chief Shannon Savory [email protected] 86 What a Waste Editor 92 Using North Dakota Clay for Ceramic Proppants: Alexandra Walld [email protected] Will it Work? Finance/Accounting & Administration Shoshana Weinberg, Pat Andress, Nathan Redekop, 96 Legislative Line Lloyd Weinberg [email protected] 98 Bringing Innovation and Automation to the Patch Director of Marketing & Circulation Shoshana Weinberg 102 A Real Flair for the Environment Sales Manager – Winnipeg Neil Gottfred 106 Flaring Alternatives Sales Manager – Hamilton Brian Davey Sales Team Leader IN THE SPOTLIGHT Peter Schulz 109 SRF Consulting: Hard Work, Innovation & Excellence Account Executives Becky Kennedy, Bonnie Petrosky, Brian MacIntyre, Brodie Armes, Cate Motley, Christopher Smith, Colleen Bell, 112 Weston Solutions: Providing Sustainable & Colleen Monahan, Colin Graham, David Roddie, Deborah Murphy, Declan O’Donovan, Jeff Cash, Jim Hamilton, Environmental Business Approaches John Price, Matthew Keenan, Michael Blangiewkz, Miles Meagher, Monique Simons, Niko Denardo, Rick Kuzie, Robert Allan, Robert Choi, Ronald Guerra, Wilma Gray-Rose Advertising Design NDAOGPC NEWS James Robinson 114 Regional Roundup Layout & Design Cody Chomiak 118 Tools of the Trade ©2013 Matrix Group Publishing Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written 123 The Bakken Top 20 permission of the publisher. The opinions expressed in this publication are not necessarily those of Matrix Group Publishing Inc. 127 BUYER’S GUIDE BASIN BITS | Spring 2013 9 12 The Official Publication of the North Dakota Association of Oil & Gas Producing Counties Opening Remarks From the Desk of the North Dakota Association of Oil & Gas Producing Counties’ President These hub cities ABOUT THE North Dan Brosz need tens of millions Dakota Association OF President OIL & GAS Producing North Dakota Association of of dollars to address COUNTIES Oil & Gas Producing Counties The North Dakota Association of Oil & the needs to develop Gas Producing Counties (NDAOGPC) is the trusted and unified voice for the better- the Bakken. ment of the citizens of North Dakota and the membership of the North Dakota As- “ sociation of Oil & Gas Producing Counties. y the time you read this mes- A formula change giving more of the sage, the 63rd session of the money collected in the GPT back to THANK YOU to THE North Dakota Legislature the local political subdivisions will help NDAOGPC 2012-2013 will have come to an end. in the planning process as well as the EXECUTIVE Committee This session is critical if the implementation of that planning. By re- FOR SERVING WESTERN Binfrastructure and services needed to de- ceiving a larger portion, local political North Dakota! velop the Bakken are to be met. Several subdivisions will know from year to year Dan Brosz, President, City of Bowman items before the Legislature will have a what money will come from the formula; large impact on our members; the largest they will not have to wait for a decision Supt. Steve Holen, President Elect, of these items is a formula change to the from a board for a grant. Counties can McKenzie County Public School Gross Production Tax (GPT), which dis- plan roads a year in advance and bid the Greg Boschee, Past President, tributes oil and gas tax dollars back to the project in the winter to get the best price Mountrail County local political subdivisions in the oil pro- possible. The needs are many, and getting ducing counties. the most for the dollar spent will help get Ron Anderson, McKenzie County The association has been participating in more projects completed. Jim Arthaud, Billings County studies and hosting the governor and his staff Cities can also plan in advance and Supt. Anthony Duletski, Bowman County and legislative members on tours of western bid projects early, and they can also use Public School North Dakota to educate them as to the some of these funds to leverage bond impacts we are facing. The outcome of this sales. Some of the cities do not have a Supt. Jason Kersten, Bottineau Public School effort has brought us to the conclusion that large enough tax base to bond for the Shawn Kessel, City of Dickinson we need an increase in funding—one that is improvements and expansions needed to predictable and steady to meet our impacts. serve the growing population. A predict- Gary Melby, City of Bowbells The last legislative session increased able long-term funding source can help in funding though grants distributed by this process. Association Office the Energy Impact Office and Depart- The larger cities of Williston, Dickin- 400 East Broadway, Suite 304 ment of Transportation. These monies son, Minot, and possibly Mandan and Bis- Bismarck, ND 58501 were greatly appreciated and were put to marck, are at the hub of the oil develop- Tel: (701) 751-3597 great use building roads, sewer and water ment. The amount of funding these cities Fax: (701) 751-3597 expansions, and emergency service needs. need cannot be met with the current GPT www.ndenergy.org We now are waiting for the Legislature to formula. We are asking the Legislature to decide the amount of funding we will re- change the formula to fund them separate- ceive over the next two years. This process ly from the GPT share which goes to the Vicky Steiner, Executive Director makes for difficulties in planning and pro- general fund. These hub cities need tens Tel: (701) 290-1339 (cell) ceeding with the construction of much- of millions of dollars to address the needs E-mail: [email protected] needed infrastructure. continued on page 15 BASIN BITS | Spring 2013 13 continued from page 13 teachers. The long-term needs will be build- to develop the Bakken. The smaller cities ings to house all of these new students. Pres- Stay UP-to-Date and towns in the counties in which these ently, the schools are enrolling new students hub cities are located will also benefit if we almost daily; there are also students leaving ON OIL ACTIVity! change the method of funding for the hub on a daily basis as the workforce is transient. cities. Distribution is based on popula- The trend will change when the permanent If you want the latest oil and gas tion, and the large disparity in populations workforce grows to maintain the wells and news at your fingertips, then you should causes large disparity in funding. operate the gas plants, pumping stations and sign up for the North Dakota Associa- Schools need the caps removed from other assets necessary to produce, process tion of Oil & Gas Producing Counties’ their funding in order to receive a more and deliver the oil and gas from the Bakken. Newsletter! reliable and steady funding source. Our as- The association is working hard with Just go to www.ndenergy.org, click sociation has funded a study through North the Legislature, the governor and his staff, on the “Email Newsletter” tab, enter Dakota State University to help plan for in- as well as with the industry, to build the your email address, and you’re all set! creased enrollment as this oilfield develops. infrastructure and provide the services The short-term needs are books, desks and needed to develop the Bakken. BASIN BITS | Spring 2013 15 Opening Remarks From the Desk of the North Dakota Association of Oil & Gas Producing Counties’ Executive Director North Dakota saw unprecedented growth as the state’s oil well country outpaced Alaska .