600 east boulevard ave. - dept 405 bismarck, nd 58505-0840 (701) 328-8020(701) 328-8000
DESCRIPTION
North Dakota Department of Mineral Resources. http://www.oilgas.nd.gov. http://www.state.nd.us/ndgs. 600 East Boulevard Ave. - Dept 405 Bismarck, ND 58505-0840 (701) 328-8020(701) 328-8000. Development area > 15,000 sq mi Size of West Virginia. 2,400 wells=90MW. 350-375 wells 2013-2020. - PowerPoint PPT PresentationTRANSCRIPT
600 East Boulevard Ave. - Dept 405Bismarck, ND 58505-0840
(701) 328-8020 (701) 328-8000
North Dakota Department of Mineral Resources
http://www.state.nd.us/ndgshttp://www.oilgas.nd.gov
Development area> 15,000 sq miSize of West Virginia
2,400 wells=90MW
350-375 wells 2013-2020
Western North Dakota• 1,100 to 2,700 wells/year = 2,000 expected
– 185 rigs = 22,000 temporary drilling jobs– Another 13,000 temporary jobs building infrastructure– 2,000-3,000 permanent jobs added each year
– 185 rigs will complete the first phase of drilling in 6-12 months– 185 rigs will require about 20 years to complete phase 2 drilling
– 2,000 new wells per year requires 11-22 million gallons of frac water per day
– 40,000-45,000 new wells = 40,000-70,000 long term jobs
17-28 million gallons per day maintenance water
North Dakota New Well Permits Issued
0
500
1000
1500
2000
2500
3000
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
North Dakota Average Monthly Rig Count
0
50
100
150
200
250
1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015
Rig
s
Rig Count ND Sweet Oil Price
North Dakota Oil Production
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,00019
70
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
2055
Ba
rre
ls p
er
Da
y
History Bakken - Three Forks P10 Bakken - Three Forks P50 Bakken - Three Forks P90
Reclamation• 26,346 wells permitted as of 9/1/13
– 1,291 approved locations– 1,136 drilling and completing– 2,837 cancelled and expired permits– 9,096 producing– 972 idle producers– 447 active EOR injectors– 390 idle EOR injectors– 398 active disposal wells– 234 idle disposal wells– 1,113 bond not released
• 8,432 reclaimed locations
North Dakota Monthly Gas Flared
0%
5%
10%
15%
20%
25%
30%
35%
40%
1985 1990 1995 2000 2005 2010 2015 2020
Percent Flared
NDIC Goals
• Reduce Flared volume
• Reduce number of wells flaring
• Reduce duration of flaring from wells
NDAC RULES PROPOSED CHANGE
43-02-03-01 Definitions Expand definition of treating plant to include recycling production water43-02-03-11 Organization Reports Require organization report for treating plants43-02-03-14 Access to Records Clarifies that OGD can inspect treating plant records and facilities
Requires gound elev, legal street address, and proposed road access on platAllows OGD to consider landowner w/in 1000' of well to have input on loc of flareRequires appl to notice landowner & landowner to comment in 5 business days
43-02-03-16.1 Designation of Operator Treating plant operator is the bond holder; person can dispute oper designation43-02-03-16.3 Recovery of a Risk Penalty Clarifies sur of well + completion loc must be included in the invite to participate
Requires sign on transportation, purchasing, and processing facilitiesRemoves requirement to be legible at distance of 50'
43-02-03-19 Site Construction Allows liners & fabrics placed on sites only upon OGD approval (Fm4)43-02-03-19.3 Earthen Pits and Open Receptacles Removes OGD authority to extend 30-day requirement to remove open receptacle
43-02-03-19.4 Drilling Pits Clarifies oper must report reclamation work on Fm4Allows reserve pit if well located outside of Bak/TF development areasSeparate reserve pit must be utilized to segregrate each mud system/cuttings
43-02-03-22 Defective Casing or Cementing Allows waiver on remedial work if can protect casing from external corrosion43-02-03-27.1 Hydraulic Fracture Stimulation Requires remote frac valve to be located on edge of loc or other safe distance
Requires all electric generators (not just portable lighting) to be 150' to well/tankRequires oper fracing well to give 24hr notice to offsetting oper if lateral w/in 1320'General guidelines for installing pipelinesRequires GIS layer of new pipelines w/in 180 days of placing into serviceReport to include size, operating press, fluid, composition, & depth of pipelineMust purge abandoned pipelines, report GIS layer in 180 days & submit aff to OGD
43-02-03-30 Fires, Leaks, Spills, or Blowouts--HB1149 Reports must comply with NDCC Sec 37-17.1-07.1 (HB1149)43-02-03-34 Method of Plugging Corrects reference to site reclamation (43-02-03-34.1, not 43-02-03-19)
Requires reclamation of treating plant after decommissionedRequires access road and site waivers to be recorded with County RecorderAllows samples to be taken as prescribed by State Geol, not at regular intervalsRequires sample box to include file & API #Increases core filing deadline fromj 90 to 180 days--allows director exceptionStandard size of sample and core boxes to be determined by state geologist
43-02-03-48 Measurement of Oil Volume of oil must be corrected to 14.73 psia per 43-02-03-80 (Trans Reports)43-02-03-51 Treating Plant--HB1333 Requires treating plant permit notice be given to County Auditor43-02-03-51.1 Treating Plant Permit Requirements New section outlining TP permit requirements43-02-03-51.2 Treating Plant Siting TP can't be located in a geologically or hydrologically sensitive area43-02-03-51.3 Treating Plant Construction and Operation TP construction & operational requirements typically placed in order now here43-02-03-51.4 Treating Plant Abandon and Reclamation TP abandon & reclamation requirements typically placed in order now here43-02-03-55 Abandonment of Wells and Treating Plants TP considered AB if not used in one year43-02-03-60.2 Flaring Exemption--HB1134 Must consider 75% to beneficial use or conversion to liquids (HB____)43-02-03-60.3 Appl--Certify f/Temp Gas Tax Exempt--HB1134 Outlines requirements to obtain temp gas tax exemption (HB ____)43-02-03-80 Reports of Purchaser and Trans of Crude Oil Requires operator of rail facility to report oil received and shipped43-02-03-81 Authorization to Transport Oil Requires operator of treating plant to receive approval prior to transporting oil43-02-03-88.1 Special Procedures for Hearings--HB1333 Requires Commission to give 15-day notice of SWD hearing to County Auditor
Clarifies the top and bottom of confining zones must be identifiedSchematic required including location of liners and flowlinesDetail proposed access to nearest public road and authority to build accessTraffic flow diagram of site plus parkingReview of all surficial aquifers within one mile of the facilityAllows Director to suspend any permitProhibits site construction without Director approval
43-02-08-01 Definitions Defines qualifying period to include total production from a well43-02-08-02 Appl f/Stripper Well/Property Clarifies required info for a stripper well application
Identifies single well drill after 7-1-13 as a propertyRequires RE or recompleted stripper well to be recertified as stripper wellLimits additional wells on stripper well property to be compl prior to 7-1-13Allows Bak/TF wells > 10,000 feet to qualify if less < 35 bopdMust use popoff valves, rupture disk, remote valveUse frack string: no chem disclosure if > 350psi on annulus after frackFrack down csg: run csg evaluation f/thickness of csg and cmt w/chem disclosure
43-02-08-04 Parties Adversely Affected May Amend Appl Clarifies the rule applies to a stripper well43-02-08-05 Adversely Affected Parties--Request Hearing Clarifies the rule applies to a stripper well43-02-08-11 Books and Records to Substantiate Reports Clarifies the rule applies to a stripper well
43-02-12-04 Appl for Geophysical Permit Removes requirement for identifying marks on plugs in seismic shot holesRemoves requirement for identifying marks on plugs in seismic shot holesAllows only dry cuttings when plugging shot holes
43-02-12 GEOPHYSICAL EXPLORATION REQUIREMENTS
43-02-12-07 Drilling and Plugging Requirements
SUMMARY OF PROPOSED 2014 RULES
43-02-03 GENERAL RULES
43-02-03-16Application for Permit to Drill and RecompleteHB1333, HB1348
43-02-03-38.1 Preservation of Cores and Samples
43-02-05 UNDERGROUND INJECTION CONTROL
Permit Requirements--HB1333
43-02-08-03 Director to Determine Stripper Well Status
43-02-03-34.1 Reclamation of Surface
43-02-05-04
43-02-08 STRIPPER WELL PROPERTY DETERMINATION--HB1198
43-02-08-02.1 Property Determination
43-02-03-29 Well and Lease Equipment--HB1333
43-02-03-17 Sign on Well or Facility
43-02-03-28 Safety Regulation
43-02-03-19.5 Reserve Pits--SB2014
NDIC 2013-2014 Rulemaking
• 41 sections proposed– 16 due to statute changes– 11 apply to treating plants– 13 administrative or industry request/friendly
• Hearing 8:30am October 1, 2013• Comment period ends 5:00pm October 11, 2013• Final NDIC approval November 26, 2013• Effective date April 1, 2014
WILLISTON BASIN TEMPERATURE PROFILE PROJECT
NDIC Drill Cuttings Samples
• Multi-well pads– Sample the one/two well(s) per pad to the deepest
layer/bench– Sample vertical and build section at 30 foot intervals– Sample horizontal section at 90 foot intervals
• Single well pads– Sample vertical and build section at 30 foot intervals– Sample horizontal section at 90 foot intervals