Seven Wells on One Section (640-Acre Spacing Unit) -- Slawson, Denbury Onshore -- Bakken, North Dakota, USA

If I am reading the NDIC September dockets correctly, both Slawson and Denbury Onshore are proposing to put 7 density wells in one section. I went through the dockets fairly quickly, so I may misunderstand what I'm reading, but someone will correct me if I'm wrong.

Here are the case numbers from the September, 2011, NDIC dockets that suggest to me, 7 wells on 640-acre spacing units. The dockets can be found at the NDIC website, linked at the sidebar on the right, under "Data."

• 15758, Slawson: extend MonDak and/or Squaw Gap-Bakken; establish 2 640-acre units, 7 wells on each 640-acre unit; establish 2 320-acre unit and 3 wells on each, McKenzie County
• 15845, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, Dunn County
• 15846, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre units, Charlson-Bakken, Williams, McKenzie County
• 15847, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, Murphy Creek-Bakken, Dunn County
• 15848, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, North Tobacco Garden-Bakken, McKenzie County
• 15849, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit in Siverston-Bakken, McKenzie County
• 15850, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit, Tobacco Garden-Bakken, McKenzie County
• 15851, Denbury Onshore: 7 density wells on each 1280—acre and each 640-acre unit, Antelope-Sanish, McKenzie, Mountrail County
• 15852, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit, Camp-Bakken, McKenzie, Williams County
• 15853, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit in Cedar Coulee-Bakken, Dunn County
• 15854, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit in Corral Creek-Bakken, Dunn County

In addition, many of the cases include requests to relieve operators of the setback rules.

NDIC Hearing Dockets, September 28 and 29, 2011

Transcribing now.

Trend: oil companies asking for 6 wells and, in some cases, 7 wells on 1280-acre spacing units.

September 28, 2011

15648, OXY USA: proper spacing to develop Manning-Bakken, Dunn County

15649, OXY USA: extend Dimond Field by 12 sections; to establish 16 1280-acre units; one well on each unit

15650, Whiting: temp spacing for Kummer 34-31H, McKenzie County

15651, Whiting: amend Park-Bakken for two horizontal wells on two 1280-acre units, Billings County

15652, Hess: temporary spacing for Moran 15-1H, McKenzie County

15653, Hess: temporary spacing for Thompson 15-31H, Williams County

15654, Hess: establish 2 1280-acre units, Lodgepole, Williams County

15655, Hess: establish 2 1280-acre units, Williams/Mountrail Counties; 3 wells in each

15656, Hess: amend Tioga-Bakken to establish a 1280-acre unit, 3 wells, Williams/Mountrail

15657, Hess: amend White Earth-Bakken designating a 1280-acre unit, 6 wells on that unit, Mountrail

15658, Hess: amend Sorkness-Bakken, designate a 1280-acre unit, 6 wells on the unit, Mountrail County

15659, Hess: amend Beaver Lodge-Bakken, 3 wells on a 1280-acre unit, Williams County

15660, Hess: amend Baskin-Bakken, 6 wells on a 1280-acre unit, Mountrail County

15661, Hess: amend Hofflund-Bakken, 3 wells on a 1280-acre unit, Williams County

15662, Hess: amend Ranch Coulee-Bakken, 6 wells on a 1280-acre unit, McKenzie County

15663, Hess: use a portable crude oil measurement system

15370, cont’d, Hess: amend Alger-Bakken, 1 well on 640-acre spacing, Mountrail County

14935, cont’d, Hess: revoke CLR permit for Foster 1-28H, Williams/McKenzie Counties

15664, Petro-Hunt: temp spacing for Borrud 156-101-11D-2-1H, Williams County

15665, Petro-Hunt: temp spacing for Skedsvold 150-101-4B-9-1H, McKenzie County

15666, Petro-Hunt: amend Tyrone Field, add 1 1280-acre unit, Williams County

15667, Petro-Hunt: Charlson or Alkali Creek-Bakken, add 1 1280-acre unit, 7 wells, McKenzie/Mountrail Counties

15668, Petro-Hunt: extend Ragged Butte, 1 1280-acre unit, McKenzie County

15669, Petro-Hunt: amend North Tioga-Bakken, authorize 5 wells, several counties

15670, Petro-Hunt: amend Little Knife-Bakken, designating 1280-acre units, McKenzie

14762, Petro-Hunt: revoke Newfield permit for Jackman 156-100-11-2-1H, Williams County

15671, Cornerstone: temp spacing for Jacobson 8-33H, Burke County

15672, Cornerstone: establish a 800-acre unit; 1 well, Burke County

15673, Aeon Energy: amend North Maxbass-Madison to establish a 160-acre unit, 4 wells, Bottineau [Aeon's history in North Dakota has been less than stellar: last drilled in 2008; about 8 wells; one dry well; most permits permanently canceled; no successful wells.]

15674, Oasis: grant relief from the 1220-foot setback policy, Williams County

15675, BR: amend Blue Buttes-Bakken, an additional well on a 1280-acre unit, McKenzie

15375, cont’d, BR: amend Pershing and North Fork-Bakken to amend the stratigraphic definition of the Bakken Pool to include from 50 feet above the top of the upper Bakken shale to 100 feet below the base of the lower Bakken shale, in 4 sections, 149-96, McKenzie

15676, XTO: revoke CLR permit for Carbon 1-30H, McKenzie

15677, MRO: amend Bailey-Bakken, establish a 640-acre unit; an additional well between the two existing 1280-acre units, Dunn

15678, BTA: establish a 1280-acre unit for the Bicentennial-Bakken, Golden Valley

15679, BTA: establish a 1280-acre unit for Bicentennial-Bakken, Golden Valley

15680, BTA: establish a 1280-acre unit for either Elkhorn Ranch or Buckhorn-Bakken, Billings

15681, BTA: establish a 1280-acre unit, Golden Valley

15682, BTA: establish a 1280-acre unit, Billings County

15683, KOG: amend South Fork-Bakken, 6 wells on three 1280-acre units, Dunn County

15684, KOG: amend MonDak-Bakken, 3 wells on a 1280-acre unit, McKenzie County

15685, KOG: amend; 3 wells on a 1280-acre unit, McKenzie County

15686, KOG: amend Poe-Bakken, 5 wells on a 1280-acre unit, McKenzie County

15687, KOG; amend Moccasin Creek-Bakken, establish a 1280-acre unit, 3 wells; also to allow 2 wells on 2 existing 320-acre unit, Dunn County

14231, cont’d, SM: revoke a CLR permit for Koeser 1-11H, McKenzie County

14451, cont’d, Sequel: establish 6 1280-acre units; 1 wells each, McKenzie County

15483 – 15489, cont’d, Luff: flaring

14541, cont’d: Oil for America, temp spacing for Zastoupil 22-1, Stark County

15688, no company: altering spacing units in some sections in McKenzie, Williams

15689, North Plains: extend Truax-Bakken

15690, CLR: revoke a BEXP permit for Barney 32-29H, McKenzie

15691, QEP: amend Squires-Bakken, 3 wells on 1280-acre unit, Williams

15692, QEP: amend Van Hook, 3 wells on a 640-acre unit; 2 wells on 2 640-acre units, Mountrail

15693, QEP: amend Deep Water Creek to create a 560-acre unit; 2 wells; McLean

15694, QEP: amend Heart Butte-Bakken, flaring, several counties

15695, QEP: amend Heart Butte and/or Van Hook, create 1 2560-acre unit; 10 wells, Dunn, Mountrail

15696, QEP: SWD

15697, Red Willow Great Plains, re-enter MHA 1-11H-148-90, to test the Dakota Formation, McLean County [has had two permits in North Dakota; one was canceled, the other well abandoned]

15698, Fram Operating: temp spacing for Funke 1, Renville County

15699, SBG Grassy Butte Facility: SWD, McKenzie

15700, Open Range, Inc: SWD

15701, Madison Disposal 2-1: SWD

15702 - 15714, Cornerstone: pooling

15715, MRO: SWD

15716, MRO: SWD

15717 - 15718, Petro-Hunt: pooling

15719 - 15726, Hess: pooling

15727 - 15728, BTA: pooling

15729, KOG: pooling

15730, Oasis: flaring

15731 – 15732, Whiting: pooling

September 29, 2011

15733, CLR

15734, CLR: extend Border, leaf Mountain, and/or Stoneview-Bakken, establish 4 1280-acre units, 1 well each, Burke

15735, CLR: amend Stoneview-Bakken: establish 1 1280-acre unit, 1 well, Burke

15193, cont’d, CCS Midstream: construct a treating plant to dispose of oilfield waste, Mountrail

15491, cont’d: CLR: temp spacing for Montpelier 1-14H, McKenzie

15492, cont’d, CLR: temp spacing for Hayes 1-6H, Williams

15493, cont’d, CLR: extend Noonan-Bakken, establish 2 1280-acre units; 1 well each, Divide

15224, cont’d, CLR: revoke Hess permit for 2WX 7-1H, McKenzie

14356, cont’d, CLR: amend Elm Tree-Bakken, create a 2560-acre unit; 4 wells on one pad, McKenzie

14062, cont’d, CLR: temp spacing for Norway 1-5H, McKenzie

14543, cont’d, CLR: temp spacing for Haag 1X-21H, Billings

15736, Crescent Point Energy: temp spacing for Perry Larson 1-21-16H-158-97, Williams

15737, Legacy: temp spacing for Legacy Etal Fett 12-18 1H, and Legacy Etal Berge 12-12H 1H, Bottineau

15738, BEXP: proper spacing for the Rosebud-Bakken, McKenzie, Williams

15739, Chesapeake: create 9 1280-acre units, 1 well each; Stark and Hettinger Counties

15740, Chesapeake: create 4 1280-acre unit, 1 well each, Stark

15741, Chesapeake: create a 128-acre unit, 1 well, Stark

15742, EOG: amend Parshall-Bakken, establish two 1920-acre unit, one well on each, Mountrail

15743, Enerplus: extend Antelope or Spotted Horn-Bakken, establish a 1280-acre unit, 7 wells, McKenzie

15744, Enerplus: amend Eagle Nest-Bakken, create a 960-acre unit, 4 wells, McKenzie

15745, Enerplus: extend McGregory Buttes or Moccasin Creek-Bakken, establish a 640-acre, 4 wells, Dunn

15746, Fidelity: create 7 1280-acre units; 1 well each, Stark

15747, Credo: revoke Helis permit Linseth 13-13/12H, McKenzie

15748, Hunt: create 2 1280-acre units, 1 well each, McKenzie

15749, Silver Oak: amend North Westhope-Madison, establish a 640-acre unit, 3 wells; Bottineau; [Silver Oak currently has one well in North Dakota; it is in the Cedar Hills field and is on the confidential list, file # 20950]

15750, XTO: extend Truax or Banks-Bakken, establish 1 1280-acre unit, 1 well, Williams, McKenzie

15751, Triangle: extend Arnegard and/or Ellsworth-Bakken, establish 2 1280-acre unit, 4 wells on each, McKenzie [Triangle currently has one well in North Dakota, file # 21452, on confidential list, in Pronghorn field -- located just north of Sather Dam/Lake]

15752, Dakota-3: extend Heart Butte-Bakken, establish a 1280-acre unit; 7 wells, Dunn

15753, Dakota-3: extend Moccasin Creek-Bakken, establish a 640-acre unit, 3 wells, Dunn County

15754, Newfield: extend Cartwright-Bakken, establish 10 1280-acre units; one well each, McKenzie

15755, Newfield: extend Todd or Williston-Bakken, establish 1 1280-acre unit, 7 wells, Williams

15756, Newfield: extend East Fork, Epping, or Brooklyn-Bakken, establish 1 1280-acre unit; 7 swells, Williams

15757, Slawson: extend Camp-Bakken, establish a 1280-acre unit, 7 wells, McKenzie

15758, Slawson: extend MonDak and/or Squaw Gap-Bakken; establish 2 640-acre unit, 7 wells on each 640-acre unit; establish 2 320-acre unit and 3 wells on each, McKenzie

15759, Zenergy: temp spacing for Link 12-1H, McKenzie

15500, cont’d, Zenergy: amend Indian Hill-Bakken, establish a 1280-acre unit; 2 wells, McKenzie

15501, cont’d, Zenergy: extend Painted Woods or Rosebud-Bakken, establish 2 960-acre units; 1 well each, Williams

15222, cont’d, Zenergy: extend Dublin-Madison, establish 8 320-acre units; 1 well each, Williams

15499, cont’d, OXY USA: extend St Anthony-Bakken, establish a 1280-acre unit, 6 wells, Dunn

15509, cont’d, Silver Oak: extend Cedar Hills-Red River “B”, establish 4 640-acre units, 3 wells each, Slope County

15760, Triangle USA Petroleum: 4 wells on a 1280-acre unit, Ellsworth-Bakken, McKenzie

15761, Arsenal: 4 wells on each of 2 1280-acre units, Stanley-Bakken, 3 wells each, Mountrail

15762, Hunt: pooling

15763, Corinthian, pooling

15764, Corinthian, pooling

15765, Fidelity: pooling

15766, GMX Resources: pooling

15767, GMX Resources: pooling

15768 - 15770, Samson Resources: pooling

15771 - 15775, CLR: legalese for risk penalty

15776, CLR: 7 wells on a 1280-acre unit, St Demetrius-Bakken, Billings

15777 - 15780, CLR: pooling

15781, CLR: SWD

15782 - 15796, Zenergy: pooling

15797 - 15800, OXY USA: pooling

15801, OXY USA: 6 wells on a 1280-acre unit, Crooked Creek-Bakken, Dunn

15802, Enerplus: 7 wells on a 1280-acre unit, Moccasin Creek-Bakken, Dunn

15803 15820, EOG: pooling

15821, BEXP, 8 density wells on each 1280-acre unit, Alger-Bakken, Mountrail

15822, BEXP: 4 wells on each of 4 1280-acre units; East Fork-Bakken, Williams

15823 - 15835, BEXP: pooling

15836, Dakota-3: 7 wells on a 1280-acre unit, Antelope-Sanish, McKenzie

15837, Dakota-3: 2 wells on a 640-acre unit; 4 wells on a 640-acre unit; 7 wells on a 1280-acre unit; Heart Butte-Bakken, Dunn

15838, Dakota-3: 3 wells on a 640-acre unit; 6 wells on each of 6 1280-acre units, Van Hook-Bakken, Mountrail

15839, Dakota-3: 7 wells on each of 3 1280-acre units, Spotted Horn-Bakken, McKenzie

15840, Dakota-3: 2 wells on a 320-acre unit, Squaw Creek-Bakken, McKenzie

15841, Dakota-3: 7 wells on a 1280-acre unit; 2 wells on each of 2 320-acre units, Mandaree-Bakken, Dunn

15842, Dakota-3: 6 wells on a 1280-acre unit, Reunion-Bakken, Mountrail, Dunn

15843 - 15844 , Dakota-3: pooling

15845, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, Dunn

15846, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre units, Charlson-Bakken, Williams, McKenzie

15847, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, Murphy Creek-Bakken, Dunn

15848, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit, North Tobacco Garden-Bakken, McKenzie

15849, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit in Siverston-Bakken, McKenzie

15850, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit, Tobacco Garden-Bakken, McKenzie

15851, Denbury Onshore: 7 density wells on each 1280—acre and each 640-acre unit, Antelope-Sanish, McKenzie, Mountrail

15852, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit, Camp-Bakken, McKenzie, Williams

15853, Denbury Onshore: 7 density wells on each 1280-acre and each 640-acre unit in Cedar Coulee-Bakken, Dunn

15854, Denbury Onshore: 7 density wells on each 1280-acre unit and each 640-acre unit in Corral Creek-Bakken, Dunn

15855, Newfield: 7 density wells each 1280-acre unit in East Fork-Bakken, Williams

15856, Newfield: 7 density wells on one 1280-acre unit in Catwalk-Bakken, Williams

15857, Newfield: 7 density wells on each of two 1280-acre units in Avoca-Bakken, Williams

15858, Newfield: 7 density wells on a 1280-acre unit in Last Chance-Bakken, Williams

15859, Newfield: 7 density wells on a 1280-acre unit in Williston-Bakken, Williams

15860, Newfield: 7 density wells on a 1280-acre unit in Stony Creek-Bakken, Williams

15861, Newfield: 7 density wells on each of 5 1280-acre units in Epping-Bakken, Williams

15862, Fladeland 1 SWD

15863, Slawson: 3 wells on each 1280-acre unit; 4 units; Kittleson Slough-Bakken, Mountrail

15864, Slawson: 3 wells on a 320-acre unit, MonDak-Bakken, McKenzie

15865, Slawson: SWD

15866, Ward Williston: SWD

15867, CCS Midstream: SWD

15631, cont’d, Epworth Operating: SWD

 

North Dakota Farm Tractor -- Alexander, North Dakota -- Bakken, North Dakota, USA

While out and about today, I took the following photographs in Alexander, North Dakota, about 25 miles south of Williston, the heart of the Bakken:

Today's American farmer feeds about 155 people worldwide. In 1960, that number was 25.8. Incredible.

North Dakota leads the nation in several grains and other crops. North Dakota is number one in honey production, far ahead of California, which is #2.

Truck Traffic Creeping Through Alexander, North Dakota -- Old Settlers' Day -- Bakken, North Dakota, USA

We were out and about today. We drove down to Alexander, North Dakota, about 25 miles south of Williston, the heart of the Bakken, where they were celebrating Old Settlers' Day.

The traffic crept slowly through the small town at about 5 mph to let folks cross the highway. There are no traffic lights in this small town. There is a huge amount of oil activity in the local area.

Some photos of the truck traffic going into Alexander:

Developer Expediting Plans to Build 450 Housing Units in Minot -- East of the Bakken, North Dakota, USA

The general consensus is that the Bakken does not extend east to Minot (about 120 miles east of Williston, North Dakota -- the heart of the Bakken). There is new information dribbling out that suggests that is incorrect and that there will be more Bakken to be found to Minot and east. More on this in future blogs but I have to have something to write about this week, so want to hold on to this for awhile.

One developer may inadvertently be ahead of the curve on this. See story here (regional links break early and break often). The developer has had plans for some time to build in Minot, but with the recent flooding, and now an acute need for more housing, he has decided to accelerate plans.

A Fargo developer [with roots in Minot] expects to begin building out infrastructure Sept. 12 on a project that will add nearly 450 new housing units in northeast Minot.

The Stonebridge Farms development is located east of the National Guard Center between 32nd and 36th Avenues Northeast on property that has been in the hands of a Minot family for four generations.

Busek said flooding that aggravated Minot's housing crisis prompted him to speed up plans on his housing development, which includes parks, bike paths and playgrounds.

Other data points:

• Phase I: 24 twin homes and 48 two-bedroom apartments; first units becoming available this December
• Additional units in Phase I will become available, March, 2012: 22 single-family homes, 40 townhouses and 84 two- and three-bedroom apartments.
• Phase II: 230 single-family lots on 120 acres
• Low density with open space; green space
• A 110-foot existing grove of trees will stay
• Originally designed as a 3-to-5 year project, the timeline will adjust to demand

As noted earlier, oil activity may be the real driver.

Buildings In Short Supply -- Photo of New Building for Major Oil Company Heading to Williston, North Dakota, USA

I got the tip from a trusted source, but this is "off the record," so I am not at liberty to say which major oil company purchased this old country school house for their new regional headquarters north of Alexander.

Nice Update on Crude-by-Rail Facilities in North Dakota -- Avoid Keystone -- Bakken, North Dakota, USA

Link here.

Shipping oil on the BNSF Railway main line is racing toward becoming a major piece of the boom action, with three rail loadout facilities under development in Fryburg, Dickinson and Zap.

One, near Fryburg, is a project of Great Northern Power Development, which is known locally for its work to develop a coal mine and power plant a few miles away at South Heart.

The company wants 270 acres rezoned one mile east of Fryburg on the railroad mainline for trucking and potentially piping oil to load onto 110-car unit trains that can be loaded up and moved out within 12 hours.

The application describes three 100,000 barrel storage tanks, enough to load a unit train in 12 hours and facilities to unload three tanker trucks at a time. One unit train requires about 300 tanker truck hauls.

So, we are getting some new info here: 300 truck hauls to fill a 110-car unit train.

Note the comment about the Keystone XL:

The Keystone project is coming under heavy environmental criticism and BakkenLink developers told the North Dakota Public Service Commission last month they’ll build to a Fryburg rail loadout instead of to a planned Keystone hookup at Baker, Montana.

The Fryburg project, with construction of additional track loop, is estimated at $40 million and will provide 25 fulltime jobs, according to the application documents.

Also, update about Dickinson CBR facility:

The project will have 210,000 barrels of storage and a truck center with six bays and room for expansion and eventually be able to put through 250,000 barrels a day.

Comment: if the Keystone XL dies, it can be blamed on a thousand small things, but they all add up. I still remember the non-support of certain state governors.