progress - oil production

Minot Daily News

SATURDAY, APRIL 11, 2015 Oil & Gas Production

Bakken housing boomcontinues, Page 2.

Sandpiper pipelineproject, Page 8.

Busy times atManitou, 0.

By KIMFUNDINGSLAND

Staff Writerkfundingsland

@minotdailynews.com

TIOGA — If lower oilprices have led to less pro-duction, it would be difficultto tell by visiting this region.Tioga continues to be a com-munity on the move withbuilding and improvementprojects designed to meetthe demands of the oilindustry and its accompany-ing workforce.“We’re at about 3,500

population now and shouldbe close to 7,000 in 10 to 15years,” said DrakeMcClelland, president of theTioga city commission. “Wewere about 1,200 when itstarted.”Tioga, known as the oil

capital of North Dakota, isliving up to that billing.Several major players in theoil patch have their mainoffices in Tioga.“Basically we’re in the

middle of the Bakken, theheartbeat,” said McClellan.Tioga has responded to

the demand for additionalhousing, businesses, healthcare, schoolrooms and infra-structure. A vital MainStreet project, made possiblewith “surge” dollars avail-able through the state, is dueto get under way this sum-mer.“The water and sewer

lines underneath Main

Street are to the point nowthat they are continuouslyhaving breaks. They are indire need of replacement,”said Tarie Bunner, city audi-

tor.The Main Street project

will serve several purposes.New sewer and water linesare needed to better serve

expansion, particularly onthe north side of Tioga.MainStreet itself is full of potholesthat have filled numeroustimes. The pending project

includes a badly needednew surface for Tioga’sMainStreet.“We’re running at max

capacity,” explained

McClelland. “We need torenovate Main Street.”“You go from 1,200 and

Kim Fundingsland/MDN

Several apartment buildings have sprung up in Tioga during a surge in growth in that community. A number of housing projects are under way or inthe planning stages.

Riding the oil waveOil productionboosts Tioga


Tioga’s clinic and hospital are undergoing extensive improvements, including upgrading emergency services.

See TIOGA — Page 4

By KIMFUNDINGSLAND


@minotdailynews.com

WATFORD CITY – Allthroughout the boomingBakken oil basin there hasbeen an ongoing need forplaces to house workers.The hastily constructed

mancamps that initiallyserved emergency housingneeds have begun to giveway to more permanentstructures. Perhaps nowhere in the Bakken is thatmore evident than inWatford City.Located in McKenzie

County in the heart of theBakken shale play, WatfordCity has experienced

unprecedented growth forseveral years running. Thepopulation of Watford Cityhas exploded from about1,500 in2006 to an estimated15,000 today, according toone source, and the growthcontinues.Withmore peoplecomes more demand forhousing, and Watford Cityhas seen a large influx ofdevelopers willing to help

meet the need.Large housing develop-

ments in Watford Cityinclude Hunter’s Run, FoxHills Village, TheHighlands, Prairie Heightsand Emerald Court.Construction has beencompleted on many homesand apartments. Manymore residential units areunder construction or soonwill be. The sheer size ofthe developments is noth-ing short of amazing, and

necessary.“Hunter’s Run alone

doubles the size of what thecity was,” said GeneVeeder, executive directorof the McKenzie CountyDevelopment Authority.“We had maybe 1,600 peo-ple in the city and there’s2,000 or more units outthere. We have no actualcount.”Several builders have

constructed a variety ofstructures designed to

house both families andtemporary workers atHunter’s Run. JessicaAnderson handles leasingand sales for AmericanLandmark Homes locatedwithin the Hunter’s Rundevelopment. Recently shewas showing a model twin-home.“Each bedroom has its

own bathroom and also hasa full-sized washer and

Minot Daily News PROGRESS

Saturday, April 11, 2015 Oil & Gas Production


The Glen at Hunter’s Run consists of multiple apartment buildings designed to meet the needs of the fastest growing community in North Dakota.Several builders are involved in the project that has the capacity to house more than double Watford City’s population of a few years ago.

Bakken housing boom continues


This interior view of an American Landmark Homes twin home in Hunter’sRun shows the modern conveniences designed to meet the needs of fam-ilies or workforce housing.

See BAKKEN — Page 6

By ELOISE OGDENRegional Editor

[email protected]

North Dakota is quiteyoung in developing theBakken and has a long wayto go, saysKathyNeset, pres-ident of Neset Consulting inTioga.Neset said North Dakota

is extracting 7 percent of theoil in place. “That’s a verylow number in oil fieldextraction rates. When youthink about it that meansconversely 93 percent of theoil in place is undergroundstill.”She said the hardest part

of finding an oil field islocating the oil. “We didthat. Now we need the tech-nology to draw it out,” shesaid.Neset, who is a geologist,

spoke to members of theMinot Kiwanis Club Feb. 17.She said the other shale

oil zones are the Eagle Fordin south Texas and theWoodford in Oklahoma.“These are primarily oilplays. You get gas alongwiththem,” she said. But she saidin the Marcellus-Utica locat-ed in northeast UnitedStates, they’re primarilydrilling for gas and that’s alittle bit different than the oilplays.Neset said the Bakken

Formation stretches up intoSaskatchewan, a little intoManitoba, in western NorthDakota and easternMontana, and drapes intothe northwest corner ofSouth Dakota.“The bull’s eye on the

map is the deepest part ofthe Basin,” she said, indicat-ing a map of the WillistonBasin. “So think of the Basinas a funnel with the apex ofthat funnel down aroundMcKenzie County,” she said.“We’re sitting here in

Minot, North Dakota, andwe’re just on the fringes ofwhere the Bakken is present,and where it is present it’snot thermally mature hereso we don’t believe that wewill be as much as we’d loveto drill for oil here in Minot– maybe, maybe not. Maybewe’ll just take that part of theoil industry where we sup-port them which is a verynice thing that Minot isdoing right now,” she said.Showing a graphic of

drilling rigs, she said, “Thisis western North Dakota.Each one of those little greentrees represents a drilling rig,and just by looking at wherethe drilling activity is youknowwhere the deepest partof the Basin and the heart ofthe Bakken is,” Neset said.Neset who has been in

North Dakota for more than30 years, said she came tothe state in 1979. Originallyfrom New Jersey, she wentto school in Rhode Island.When she talks to groups,

Neset said one of the ques-tions often asked is if this

works to recover the Bakkenoil now and is such a neatthing then how was itmissed all these years?“The answer is we really

didn’t miss it. We knewthere were great shows inthis Bakken,” she said.

Technology has changedrecovering the Bakken.

“You have to help it,”Neset said. “Instead of hav-ing 40 feet of middle Bakkenopen vertically, we nowhave 10,000 feet open hori-zontally, then we crack it

which is the frackingprocess and then the oil willgo back to the surface. Allthat had to come together.Oil companies knew thatthey had something here. Ican assure you nobodycould foresee how big this

Bakken was going to be.”She said people always

ask how the drillers get thedrill pipe to bend. “You gofrom a vertical well bore todrilling horizontally at 90

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Eloise Ogden/MDN

Kathy Neset, president of Neset Consulting in Tioga, says North Dakota is quite young in the development of the Bakken. She is shown here Feb.17 when she spoke to the Minot Kiwanis Club.

Bakken basicsSee NESET — Page 15

House/New Town13x15

FC PONY77804

DO NOT PLACE HERE



now servicing 3,500. It’s diffi-cult to keep up,” added Bunner.“What our commissioners aretrying to do, is get the city tohave sustainable growth, long-term housing, so people willcome here and stay here.”A few years ago Tioga had

one small Super 8 hotel. Todayit boasts a large Black Goldhotel, MainStay Suites and aMicro-Tel is nearing comple-tion. A new outdoor swimmingpool will be open this summer.Runways at the city airport willbe lengthened this summer andrunway aprons increased insize. Both the high school andelementary school have newadditions and likelywill have tobuild even more. A new wastewater treatment plant is in theplanning stages. The city’spolice force has ballooned fromtwo to eight.“We just now got a school

resource officer in place,” saidBunner. “That’s a benefit for thecommunity, a definite plus.”New businesses include

Cashwise Food and Shopko.Pinnacle purchased the CenexTravel Center on the city’ssouthside and caters to hun-dreds of oil field customers each

day. Various companies haveeither moved into availablespace or built new structures oftheir own.“We’re in the process of

annexing more property, work-ing on that,” said McClelland.“We’re almost to the point nowwhere everything that is in thecity limits has something on it.”On Tioga’s north side the

hospital and clinic are undergo-ing renovation and expansion.According to McClelland, theclinic will be significantlyupgrading its emergency servic-es, something he says is muchneeded in the region.Also on the north side of the

city are several apartment com-plexes and other housing devel-opments in various stages ofconstruction. Already complet-ed is Tioga Square, an attractivefacility that features apartmentson the top two floors and busi-ness space at floor level. A newsteakhouse is also nearing com-pletion.“Our community is starting

to get more self-sufficient,”explained McClelland. “Westarting to fill in the gaps so it’snot just oil field jobs that Tiogawas known for.We’re starting toget diversified with other busi-nesses in here.” Kim Fundingsland/MDN

Tioga Square is one of many new buildings within the city of Tioga. It is an apartment com-plex with room for retail and service businesses on the lower level.

TiogaContinued from Page 1

See TIOGA — Page 5

House/New Town13x15

FC PONY77804

DO NOT PLACE HERE



Anabelle Housing wasresponsible for the initial build-ing surge in Tioga but have sincesold their interests to otherdevelopers. According toMcClelland, the city hopes thatnew buildings aimed at attract-ing families does not exceed thedemand. He says he is seeing themovement toward more single-family housing for those whowish to stay in Tioga indefinite-ly.Two mobile home parks that

have sprung up within the citylimits are helping alleviate con-gestion inman-camps. However,man-camps still exist withinTioga proper and McClellandsays that will likely continue.“You can’t get rid of all the

man-camps. There will alwaysbe that rush that needs to bedone and there’s no places avail-able,” said McClelland. “But therules for them are getting a littlemore strict, too.”In regard to the recent decline

of oil prices, McClelland says aslow down in activity wouldn’tbe all bad.“We can get caught up again

instead of rush, rush, rush,” saidMcClelland. “Once the oil startsagain we can be at the top of the

wave instead of trying to climbup the wave. There’s a lot ofdrilling going on in Williamsand McKenzie County. They arefilling in the pads with morewells.”Part of the reason there are

fewer people in man-camps,said McClelland, was that theregion was catching up withimportant infrastructure. Morepipelines has meant fewertrucks on area roads and high-ways and, consequently, lessneed for truckers.“A lot of people in this area

work for the trucking companieshauling crude and saltwater.With more infrastructure we getthe trucks off the street but,unfortunately, anything goodcomes with a backlash,” saidMcClelland. “For a while wedidn’t see much happening, butthen it was just like someoneturned on a light switch.”Oil development has led to

many improvements in Tiogaand many more opportunitiesfor area residents. There aresome indicators that the growthmay slow, at least until oil pricesrebound, but enough buildingproject are currently underwayto indicate 2015 will be a verybusy one in Tioga.“Oil prices are going to dic-

tate what is going to happen,”McClelland said.


Hess Corporation has a headquarters facility in Tioga which has long had a major impact onthe community.

TiogaContinued from Page 4

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dryer for laundry,” saidAnderson. “These units eachhave an over-sized two car garageso full-sized trucks can fit inthere.”Full-sized pickups are a com-

mon mode of transportation forBakken oil field workers. Havinga garage to accommodate them is

a highly valued feature.The city brought water and

sewer lines to Hunter’s Run. Thedevelopers were responsible forstreets, curbs and sidewalks.Most of the lawns are scheduledto be seeded this spring.“It’s kind of a mess right now.

It’s that time of year,” remarkedVeeder. “But they are gettinglights on and starting to fill thosebuildings up.”While construction continues

at Hunter’s Run, it also continuesat nearly every other housingproject in or near the city. At FoxHills Village, where numerousapartments have been occupiedfor several months, constructioncontinues on huge additionalapartment buildings. The samecan be said for multiple locationsin Watford City as developersrace to meet the demand.“There are 1,000 units being

built right now and 1,400 units

permitted for this summer,” saidVeeder. “We’re trying to get ourarms around it. Even with every-thing that’s being built we stillfeel we’ll be 1,000 units short.”Mancamps still exist, even

flourish, in the Watford City area.However, as more and morehousing units become available,it is anticipated that manyBakken oil field workers willassess their housing options anddecide to move into permanent

housing.A negative currently affecting

Watford City’s housing market isbelieved to be price. A furnishedtwin-home can rent for as muchas $4,000 per month, three bed-room apartments at $3,775 amonth. Even a single bedroom,one bath apartment can cost asmuch as $3,125 a month. Singlefamily home prices have risen too


Watford City’s Prairie Heights development was a Lutheran Social Services project. There is a lengthy waiting list of people wishing to reside at PrairieHeights.

BakkenContinued from Page 2

See BAKKEN — Page 7

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Apartment construction continues at Fox Hills Village where several other apartment units are completed and occupied. Construction is also underway at Watford City’s new high school located nearby.

from what Watford City residentshad become accustomed to.“I think we’ve hit a peak with

our real estate prices,” saidVeeder. “There’s $350,000 housesbut you have to have the rightpeople to buy them. You are stilltalking 20 percent down. Not too

many people have that kind ofcash. We know that until pricescome down people will still livein temporary units.”The Prairie Heights develop-

ment in the southwest section ofWatford City was a project ofLutheran Social Services. Forty ofthe apartments in that develop-ment are classified as affordablehousing with a rent of $700 permonth. About 700 people are on

the waiting list to occupy thoseunits if and when they becomeavailable.Oil plays are known for boom

and bust and there has been awide swing downward in oilprices in recent months.Although the existing wells in theWatford City region will require aconsiderable maintenance force,the recent slump in oil prices hasnot brought a stop to drilling

either. In fact, the demand forhousing continues to grow asmore and more people begin toput their roots down in the region.“What workers want is a stable

job, until then they rent,” con-cluded Veeder. “It’s amuch biggerrental market than even we antic-ipated. For houses it’s a matter ofwho builds the houses that are themost sellable. Some have a rent-to-own product. That goes pretty

well.”If oil prices stay low and com-

panies continue to cut back onper diem housing allowances,which can be of critical impor-tance to Bakken oil field workers,it is expected those decreases willbe reflected in rental and housingprices in Watford City. In themeantime, the 2015 building sea-son is expected to be the mostextensive in Watford City history.

BakkenContinued from Page 6

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By KIM FUNDINGSLANDStaff Writerkfundingsland

@minotdailynews.com

Canadian-based Enbridge isseeking approval for the Sandpiperpipeline project. The Sandpiperwould carry crude oil from North

Dakota’s Bakken oil field to anEnbridge terminal at Superior,Wis. Specifically, the interstatecrude oil pipeline would begin atEnbridge’s Beaver Lodge Stationsouth of Tioga and carry Bakkencrude to Clearbook, Minn., whereit would be transported bypipeline to Superior.

Katie Haarsager, Enbridge,recently made a presentation onthe proposed Sandpiper pipelineproject to a committee of theMinotArea Chamber of Commerce.Haarsager explained that the per-mitting process is nearly completein North Dakota and has madegreat progress in Minnesota and

Wisconsin.“The project itself is waiting

regulatory approval from thePublic Service Commission inNorth Dakota,” said Haarsager“We’re waiting on Minnesota andWisconsin permitting. We expectto be able to do construction in2016 and have an “in service” date

of early 2017.”Haarsager explained that 96

percent of the necessary landown-er agreements for land where thepipeline will run are in place inNorth Dakota. Haarsager said sheexpects Minnesota and Wisconsin


These sections of pipe are destined for the Sandpiper pipeline project. The photograph was taken at a pipe storage yard south of Palermo.

The Sandpiper pipeline project

See PIPE — Page 14

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NEW TOWN — When amajor saltwater spilloccurred on the FortBerthold Reservation thispast July, a tribal responseteam was quickly notifiedand assembled. The teamwas comprised of staff fromseveral tribal agenciesincluding the ThreeAffiliated Tribes’ EnergyDivision.The Energy Division has

its own staff for spills. Thatdepartment’s staff will go toa spill, make sure it is prop-erly cleaned up, do a soilsampling and submit it tothe State Soil Center, fol-lowed by making sureindustry — the responsibleoperator — cleans up theirspill,” said Carson Hood Jr.,administrator of the TribalEnergy Division.“The very first thing is

safety,” said Kenny Lyson,the safety officer, in an inter-view in July. “We don’t entera site unless it’s safe to doso,”“The first thing we do is

make sure everything onlocation is up to par—makesure the well is shut in andthis type of thing. That’s thefirst thing.“Then we see what type

of spill it was—was it a fire,was it a line break, flareupset — anything,” he said.

“We go and identify a sit-uation and then find the bestprotocol to remedy the situa-tion — remediate it,” Lysonsaid.If a company does not

have a representative at thesite, the Energy Departmentstaff calls them immediately“and make sure they’rethere,” Lyson said.“We work together basi-

cally to make sure the bestsituation to remediate thespill,” Lyson said.Hood said one of the

main things they considerwhen they go to a spill is if

it’s a critical or dangerousincident.“It’s life over structure,

life over land. Our job is tosecure the perimeter, notifyhomeowners in the area if it

was a loss of wellhead con-trol or if there was a fire onlocation or if there was a fireat a compression station.That’s one of our duties —to control traffic, secureperimeter and identify theoutside homeowners,” hesaid.“Basically, safety is num-

ber one. We want to makesure nothing happens,”Lyson said.He said many of the calls

are minor. “But you have torespond because you neverknow. Even a minor situa-tion could turn into some-thing major. We show up,”he said.


[email protected]

MANDAREE — When itoccurred in July 2014, apipeline spill near Mandareewas considered one of thelargest oilfield spills in statehistory.Six months later, a spill

north of Williston would top theMandaree spill in amount ofestimated product leaked.The saltwater spill on Fort

Berthold Reservation occurrednear the Bear Den WaterIntake Station in the west seg-ment of the reservation.Mandaree is the “hot zone”

for the oil and gas develop-ment on the reservation.According to Three Affiliated

Tribes’ information, an estimat-ed 1 million gallons, or 25,000barrels, of saltwater spilled asthe result of a leak in a pipelineowned and operated byArrow/Crestwood LLC. Thesaltwater ran down an

embankment into a deepcoulee filled with springs andbeaver dams that is a naturaltributary to the lake.Saltwater is an unwanted

byproduct of oil and gas pro-duction.Crestwood/Arrow staff, their

contractors and tribal agencystaff worked to immediatelycontain the spill throughberms, dikes and booms onland and around the waterintake in Lake Sakakawea.Thewater intake plant was shutdown until testing showed thewater was not contaminated.Federal, state, tribal, countyand pipeline representativesworked with the assessmentand remediation planning,according to tribal information.In January of this year, near-

ly 3 million gallons of saltwatergenerated by oil drilling leakedfrom a pipeline, about 15 milesnorth of Williston.The Associated Press

reported that spill was thelargest such spill since the

state’s current oil boom beganin 2006 and nearly three timesworse than any previous spill.Two creeks were affected, butthe full environmental effectmight not be clear for months,the AP said.Operator Summit

Midstream Partners LLCdetected the pipeline spill onJan. 6.The January spill in the

Williston area is almost threetimes larger than one thatoccurred near Mandaree inJuly. Another million-gallonsaltwater spill in 2006, nearAlexander, is still beingcleaned up nearly a decadelater, The Associated Pressreported.In total in North Dakota, as

of March 31, 638 spills havebeen reported since the begin-ning of 2015. Last year (2014)there were 2596 spills report-ed, said Karl Rockeman, direc-tor of the North Dakota HealthDepartment’s Division ofWaterQuality.

Anyone who wit-nesses any spill orwrongful act in theoil and gas indus-try on Fort BertholdReservation isasked to call theMHA EnergyDepartment officeat 627-5154 orcheck the EnergyDivision’s websitefor the emergencycontact list. Thewebsite is locatedatmhanation.com/mhaenergydivision.

Responding to spills: Safety is No. 13 million gallon spill largest in state history Who to call

ON & OFF THE OIL FIELDON & OFF THE OIL FIELD538 11th St. WestBottineau, ND 58318701-228-2202www.nceci.com

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By KIMFUNDINGSLAND


@minotdailynews.com

MANITOU—With the lastof its residents gone and itsname carried only by a crum-bling, aging and abandonedschoolhouse, this ghost townon the plains proved to be anideal location for one of thebusiest rail terminals in theBakken oil field.Plains All American con-

structed the impressive termi-nal just north of old Manitou,not far from where play-ground equipment long agowas used by students from thearea. Manitou, where a shorttrain known locally as the“dinky” used to haul milk,cream and butter from Minotto Williston each day, wasnothing more than a forgottenspot in North Dakota until thedecision was made that thearea was ideal for shippingcrude oil from the Bakken.Manitou is located a fewmileswest and north of Stanley.Today railroad tank cars are

lined up by the hundreds to befilled with Bakken crude.Many of them are bound for arefinery at St. James, La. Thefacility essentially is a pipelineon wheels. It is there thatBakken crude flows into unittrains virtually non-stop.The facility was construct-

ed to have the ability to move65,000 barrels of crude perday. Two 150,000-barrel stor-age tanks are located at theManitou terminal. Natural gasand natural gas liquids are alsoshipped from that location.Plains All American

Pipeline, L.P. operates a simi-lar oil loading facility at VanHook and recently announcedthe purchase of another crudeoil terminal under construc-tion near Johnson’s Corner,east of Watford City. TheJohnson’s Corner terminal isexpected to be in operation assoon as July of this year. It ispermitted for up to twomillionbarrels of crude oil storage,eight pipeline interconnectsand 12 truck unloading sta-tions.

Busy times at Manitou

¨ Railroad tank cars await fillingand departure at the Manitou ter-minal. The terminal was con-structed to facilitate movingBakken crude oil out of theregion for processing.

¬ The Plains All American cruderail terminal at Manitou sprangup not far from the long-agoabandoned Manitou school-house. The terminal has thecapability of loading railcars fordirect shipment to the NuStar ter-minal at St. James, La.

Photos by Kim Fundingsland/MDN




[email protected]

North Dakota’s oil productionis nearly six times higher than itwas five years ago.Lynn Helms, director of the

North Dakota Department ofMineral Resources, reported:In January 2015, the state pro-

duced 1,190,490 barrels a day or36,905,179 barrels. The prelimi-nary all-time high was December2014, when the state produced1,227,482 barrels a day.

® 1,128,707 barrels per day or95 percent is from Bakken orThree Forks.

® 61,783 barrels per day or 5percent is from legacy conven-tional pools.

In January 2010, the state pro-duced 235,925 barrels a day or7,310,457 barrels.Gas production also has

increased extensively, from254,686 MCF (million cubic feet)a day or 7,894,018 MCF inJanuary 2010 to 1,472,904 MCF aday or 45,660,015MCF in January2015.The preliminary all-time high

was in December 2014 when1,570,858 MCF a day of gas wasproduced.Following are other compar-

isons:Producing wells – January

2010: 4,628; January 2015:12,181, a preliminary new all-time high.

Eloise Ogden/MDN

Oil production, as well as gas production, in the North Dakota oil patch has increased several times since 2010.

Production up sixfold since 2010Oil production

January 2010 – 235,925barrels a dayJanuary 2015 – 1,190,490

barrels a dayGas production

January 2010 – 254,686MCF a dayJanuary 2015 – 1,472,904

MCF a dayProducing wells

January 2010 – 4,628January 2015 – 12,181

See OIL — Page 14

State’s oil, gas increases show similar growth

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to approve the project by the endof this year.“The process is so much more

than determining point A andpoint B and drawing a line inbetween,” said Haarsager. “Youhave to make sure you have com-mitments from producers. As youmove into development on theproject you need approval fromthe Public Service Commission onrouting, the Corps of Engineers forwater permits, to work withlandowners on acquiring right ofway or easements, workwith com-munities to see where they aredeveloping and shift your route

accordingly.”Enbridge has been working on

the pipeline design and approvalprocess for nearly two years. The600-mile, 24-inch pipeline is amassive project that would carryan estimated 225,000 barrels perday of Bakken crude at four to fivemiles per hour. Additionally, saysHaarsager, it is a saferway to trans-port crude than relying on above-ground transportation.“Pipelines are definitely still the

best option for a safe option,” saidHaarsager, “It’ll take trucks off theroad. When it comes to pipelinesthemselves, they are really a verysafe alternative to other transporta-tion. It’s just so important to beable to move Bakken crude in themost safe and efficient way, to

reduce the amount of people onthe roads and help reduce rail traf-fic, which can help move graincommodities through the state.”The Sandpiper would be in

addition to Enbridge’s existingpipeline systems that deliver355,000 barrels of oil per day,making the daily total of Bakkencrude moved through Enbridgepipelines to 580,000 barrels perday.According to Enbridge, imme-

diate project benefits of theSandpiper pipeline include pro-viding temporary jobs, increasingtax revenues and supporting busi-nesses through the purchase oflocal goods and services, lodging,food, supplies and equipment dur-ing construction.

KatieHaarsager,Enbridge.

KimFundingsland/MDN

PipeContinued from Page 8

® 9,027 wells or 74 per-cent are nowunconvention-al Bakken-Three Forkswells; 3,154 wells or 26 per-cent produce from legacyconventional pools.

Permitting – January2010: 101 drilling (0 shal-low gas) and 3 seismic;January 2015: 246 drillingand 0 seismic.

Sweet crude price –January 2010: $68.57 a bar-rel; January 2015: 31.41 abarrel.

Rig count – January2010: 81; January 2015:160. The all-time high was218 on May 29, 2012.The statewide rig count

was down 49 percent fromthe high and in the fivemost active counties rigcount was as follows as of

March 12, 2015:®Divide - 69 percent

(high was March 2013).®Dunn - 58 percent

(high was June 2012).®McKenzie - 32 percent

(high was January 2014).®Mountrail - 49 percent

(high was June 2011).®Williams - 63 percent

(high was October 2014).The number of rigs

actively drilling on federalsurface in the DakotaPrairie Grasslands wasunchanged at 0 in Helm’sMarch 12, 2015 report.Activity on the Fort

Berthold Reservationwas asfollows, as of the March 12,2015, report:

® 18 drilling rigs (6 onfee lands and 12 on trustlands).

® 375,158 barrels of oilper day (152,208 from trustlands and 222,951 from feelands).

® 1,420 active wells(1,095 on trust lands and325 on fee lands).

® 120 wells waiting oncompletion.

® 390 approved drillingpermits (227 on trust landsand 132 on fee lands).

® 1,948 additionalpotential futurewells (1,173on trust lands and 775 onfee lands).Trust lands are lands held

in trust by the federal gov-ernment. Fee lands are landsnot federally held in trust.The number of rigs

actively drilling in theNorth Dakota oil field was94 on April 2, 2015, accord-ing to the North Dakota Oiland Gas Division, a divisionof the N.D. Department ofMineral Resources.More than 98 percent of

the drilling targets theBakken and Three ForksFormations.

Eloise Ogden/MDN

Oil production, as well as gas production, in the North Dakota oil patchhas increased several times since 2010.

OilContinued from Page 11

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degrees.”“How do you get that bend and

how does the pipe bend throughit? It’s really technology, it’s justamazing. The key part is this mudmotor and of that the componentcalled the bed sub... By steering itin the direction you want to go,the oil companies can drill withthese mud motors and designthese curves,” she said.As a geologist, she said she will

collect the drill cuttings – the

ground up rock. They also meas-ure the amount of gas coming outof the formation called liberatedgas or gas from the rock that’sground up. Produced gas is gasthat seeps into the well bore fromthe formation, she said. “Thosetypes of things are all indicationsthat we’re in the right zone,” shesaid.“Theway awell is drilled is it is

drilled down through these freshwaters – just like a water well youwould drill,” she said.“You stop drilling 100 feet into

the first confining shale which iscalled the Pierre Formation, and

they stop and they set a 9 5/8 -inchsurface casing. Then they cementit back up – up the backsidebetween the rock and the casingthat has to be totally full of cementso that is secure and we don’t takeany chance of contaminating thosewaters,” she said.The state of North Dakota mon-

itors the cementing. “They have tosecurely cement that so you havetwo layers of protection – cementand 9 5/8 inch casing,” she said.“Drill down vertically with a 8

3/4-inch bit to kick off point, curve,land in the Middle Bakken, stopdrilling and bring all the drill pipe

back out again, and put a 7-inchcasing in. That casing goes all theway back up to surface andcement that one in place. Thatgives you four layers of protectionbetween the center of thewell boreand the rock,” she said.“Then we drill horizontally 2

miles in the Middle Bakken andrun a 4 1/2-inch liner,” she said.“As you count up the layers,

you nowhave five layers of protec-tion – three layers of steel pipe, twolayers of cement between the cen-ter of the well bore and those sur-face aquifers. You can’t – it’s justabsolutely, double , triple, quadru-

ple – five times the security thatwe can’t have contamination fromthe center of the well bore to theoutside and 10,000 feet is ourzone, 2,000 is our water. We can’tfrack through 8,000 feet. NorthDakota’s geology is absolutely spe-cial in thatway – the depth and themakeup of it,” Neset said.Neset said the Bakken has a

long way to go in its development.“There’s lots more ideas and

things that the younger group ofengineers and geologists will sortout for us. There’s a lot of workhere,” she said.


These pumping units are in the Tioga area. The photo was taken March 27. Kathy Neset, president of Neset Consulting in Tioga, says North Dakotais extracting only 7 percent of the oil in place and 93 percent of the oil is still underground.

NesetContinued from Page 3

progress - oil production

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