Random Look At Case 20107 in The April Dockets

Case 20107: EOG, Clarks Creek-Bakken, 11 wells on an existing 1920-acre unit; 11 wells on an existing 1280-acre unit; 22 wells on an existing 2560-acre unit; McKenzie; 44 wells total.

********************

Now, about that 2560-acre spacing unit -- sections 6, 7, 18, and 19 - 151-94. There are already fourteen wells in that area: some are in 2560-acre spacing already; others are still ICO.

The following wells are already in this 2560-acre spacing unit: 20886, 20887, 20888; 20890, 20891, 20892; one mile to the west, still in Clarks Creek, and ICO spacing: 22962, 22963, 20330, 20331, 20329, 20332, 20333, 20334. Based on existing surrounding spacing units, it appears these will be 2560-acre spaced wells, also.

I might have this wrong; folks who have minerals in this area would correct me if a) I was wrong; and, b) anonymous commenting was permitted. And due to time constraints and fact I don't have minerals in the area (in fact, I have no minerals anywhere), I may not pursue this to any degree.

There are 6 wells in the 2560-acre spacing unit that EOG is planning on a putting 22 wells; in other words, another 16 wells in this 2560-acre spacing unit. 

Note that these wells were on-line less than the full 31 days in January, 2013. One was on-line for only four days. All wells are flaring some gas, but all are hooked up to a natural gas line. This suggests there are takeaway constraints, and the wells are being choked back. In addition, there were weather-related production issues in January, 2013, in North Dakota. The bottom line is that these wells are capable of producing more than what we see here.

• 20886, 317, EOG, Clarks Creek 101-1819H, t4/12; cum 290K 10/15; 4-section spacing; only 26 days in January, 2013;
• 20887, 1,455, EOG, Clarks Creek 13-1806H, t3/12; cum 229K 10/15; 4-section spacing; only 21 days in January, 2013;
• 20888, 3,415, EOG, Clarks Creek 14-1819H, t4/12; cum 224K 10/15; 4-section spacing; only 19 days in January, 2013
• 20890, 600, EOG, Clarks Creek 11-0706H, t3/12; cum 283K 10/15; 4-section spacing; only 4 days in January, 2013;
• 20891, 603, EOG, Clarks Creek 12-0719H, t8/11; cum 238K 10/15; 4-section spacing; only 18 days in January, 2013;
• 20892, 1,352, EOG, Clarks Creek 16-0706H, t3/12; cum 248K 10/15; 4-section spacing; only 18 days in January, 2013;

• 20329, 1,203, EOG, West Clark 4-2425H, t5/13; cum 260K 10/15;
• 20330, 142, EOG, West Clark 3-2413H, t6/13; cum 229K 10/15;
• 20331, 1,251, EOG, West Clark 101-2425H; t4/13; cum 220K 10/15;
• 20332, 647, EOG, West Clark 100-2413H, t9/12; cum 197K 10/15; ICO spacing (probably 2560); only 23 days in January, 2013;
• 20333, 449, EOG, West Clark 2-2425H, t9/12; cum 206K 10/15; ICO spacing (probably 2560); only 23 days in January, 2013;
• 20334, 1,324, EOG, West Clark 1-2413H, t10/12; cum 188K 10/15; ICO spacing (probably 2560); only 23 days in January, 2013;
• 22962, 1,093, EOG, West Clark 5-2425H, t12/12; cum 277K 10/15; ICO spacing (probably 2560); only 23 days in January, 2013;
• 22963, 1,908, EOG, West Clark 102-2413H, t10/12; cum 161K 10/15; ICO spacing (probably 2560); 23 days in January, 2013;

It's Worse Than I Thought -- When I Did the Calculations, I Got 42 Hours ....

The Weekly Standard is reporting:

Germany spends $110 billion to delay global warming by 37 hours.

The claim was made by Bjorn Lomborg. 

Lomborg campaigned against the Kyoto Protocol and other measures to cut carbon emissions in the short-term, and argued for adaptation to short-term temperature rises as they are inevitable, and for spending money on research and development for longer-term environmental solutions, and on other important world problems such as AIDS, malaria and malnutrition.

In his critique of the 2012 United Nations Conference on Environment and Development, Lomborg stated: "Global warming is by no means our main environmental threat."

Right now, North Korea appears to be our main threat, environmental and otherwise.

China's voracious appetite for energy -- coal, nuclear -- is probably the earth's main environmental threat.

Finally, an environmentalist who gets it.

It will be a lot more cost-efficient to simply work on ways to prepare for that one degree rise in global temperature over one century. Some agricultural crops will actually do better. Some areas of the United States will actually benefit. And very few places will actually get worse. I assume there's not a lot of difference between 120 degrees and 121 degrees in the  Saharan Desert or Death Valley.

I speak from experience: I did not note much difference between forty degrees below zero and  thirty-eight degrees below zero when growing up in the Bakken. We didn't call it the Bakken then. Just to be clear on that.

Maybe that would be a great poll: if we could control global warming, would you prefer the average North Dakota winter extreme to be forty degrees below zero or thirty-nine degrees below zero? I know how I would vote.

Time For A New Poll

But first the results of the current poll.

Now that XTO Has withdrawn its ELKHORN FIELD permit request, should the whole ELKHORN FIELD be closed to new drilling?

• Yes: 26%
• No: 74%

Which begs the question: should I poll whether the entire Bakken should be shut down? But I digress. Maybe that poll for later.

**********************

Anyway, here's a different kind of poll. It will help me decide whether a stand-alone post is warranted.

More and more cases appearing before the NDIC are requests for "overlapping 2560-acre spacing units."

Do folks know the purpose of "overlapping 2560-spacing units" (in most cases) in the Bakken?

NDIC Hearing Dockets, April, 2013

Disclaimer: these are for my own use. There are likely to be typographical errors and mistakes in interpretation. If something does not appear to be correct, it probably isn't; go to original source for details.

Highlights of the April cases here

List of All Dockets Here

Wednesday, April 24, 2013

• 20014, Hess, proper spacing, Larson-Bakken, Burke
• 20015, Hess, et al, proper spacing, Manning-Bakken, Dunn
• 19805, cont'd
• 20016, Oasis, proper spacing, Missouir ridge-Bakken, Williams
• 20017, Oasis, proper spacing, Bonetrail-Bakken, Williams
• 18390, cont'd
• 19904, cont'd
• 19905, cont'd (very interesting case)
• 20018, Petro Harvester, setback, Burke
• 20019, Tracker, Catwalk-Bakken, establish a 1280-acre unit; 8 wells; Williams
• 20020, Whiting, setback, Dollar Joe-Bakken, Williams
• 20021, Whiting, setback, Mountrail
• 20022, SM Energy, Baker-Bakken; 9 wells on each of 2 1280-acre units; establish an overlapping 2560-acre unit for one or more wells; McKenzie
• 20023, SM Energy, Dimmick Lake-Bakken, extend stratigraphic limits, McKenzie
• 20024, Petro-Hunt, a very, very, very long case: Charlson, Elm Tree, Phelps Bay-Bakken and/or Keene-Bakken/Three Forks; 1) authorize up to 10 wells on a 2560-acre unit; 2) establish 2 480-acre units, 1 hz well each; 3) establish 1 overlapping 640-acre unit, 2 hz wells; 4) establish 2 overlapping 1280-acre units, 3 hz wells each; 4) (sic) establish 2 1280-acre units, 7 hz wells on each; 5) establish 3 1920-acre units, 4 wells on each; 6) establish 15 overlapping 2560-acre unit, 2 hz wells on each; 7) establish 2 3840-acre units, 2 hz wells on each;
• 20025, Petro-Hunt, amend Clear Creek, Union Center, Camel Butte, and/or Edge-Bakken; create 7 overalapping 2560-acre units; one or more wells; McKenzie
• 20026, Petro-Hunt, amend Tioga and/or the Battleview-Bakken, create 13 overlapping 2560-acre units, one or more wells each; Burke, Divide, Williams
• 19408, cont'd
• 20027, BR, amend Westberg-Bakken and Keene-Bakken/Three Forks; establish 2 overlapping 1280-acre units; 1 or more wells; McKenzie
• 20028, Marathon, amend Reunion Bay and/or the Big Bend-Bakken pools; establish 2 overlapping 2560-acre units; one or more wells; Mountrail
• 20029, Luff Exploration, 1) extend State Line-Red River; 2) establish a 640-acre unit; 3) authorize a reserve pit for drilling, Bowman
• 20020, Luff Exploration, 1) extend Corey Butte-Red River; 2) establish an overlapping 960-acre unit; 3) construct a reserve pit for drilling, Bowman,
• 20031, G3 Operating, amend Antelope-Sanish, 12 hz wells on some or all 1280-acre units; McKenzie, Mountrail;
• 20032, G3 Operating, amend Eagle Nest-Bakken, 12 hz wells on some or all of the 1280-acre units; Dunn, McKenzie
• 20033, G3 Operating, Four Bears-Bakken, 12 hz wells on some or all of the 1280-acre units; McKenzie, Mountrail
• 20034, G3 Operating, amend McGregory Buttes-Bakken, 12 hz wells on some or all of the 1280-acre units; Dunn
• 20035, G3 Operating, amend Spotted Horn-Bakken, 12 hz wells on some or all of the 1280-acre units; McKenzie, Mountrail
• 19794, cont'd
• 19603, cont'd
• 20036, CLR, revoke an Emerald Oil permit, McKenzie
• 19906, cont'd
• 20037, Terra-Safe, treating plant in Divide County
• 20038, Murex, Temple-Bakken, 8 hz wells on a 1280-acre unit; Williams
• 20039, Hess, Lone Tree Lake-Bakken, 6 hz wells on a 1280-acre unit; Williams
• 20040, Hess, Ray-Bakken, 6 hz wells on a 1280-acre unit; Williams
• 20041, Hess, Wheelock-Bakken, 6 hz wells on a 1280-acre unit; Williams
• 20042 - 20043, Hess, pooling
• 19822, cont'd
• 19823, cont'd
• 19824, cont'd
• 20044 - 20046, Oasis, pooling
• 20047 - 20048, SM Energy, pooling
• 20049, Petro-Hunt, Rawson-Bakken, 8 hz wells on a 1280-acre unit; McKenize
• 20050 - 20052, Petro-Hunt, pooling
• 19873, cont'd
• 20053 - 20055, KOG, pooling
• 20056, Whiting, Bell-Bakken, 5 hz wells on some or all 1280-acre units; Stark
• 20057, Whiting, Dickinson-Bakken, 5 hz wells on some or all of the 1280-acre units, Stark
• 20058, Whiting, Dutch Henry Butte-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20059, Whiting, Fryburg-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20060, Whiting, Gaylord-Bakken, 5 hz wells on some or all of the 1280-acre units; Billings, Stark
• 20061, Whiting, Green River-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20062, Whiting, New Hradec-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20063, Whiting, North Creek-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20064, Whiting, Park-Bakken, 5 hz wells on some or all of the 1280-acre units; Billings
• 20065, Whiting, South Heart-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20066, Whiting, Zenith-Bakken, 5 hz wells on some or all of the 1280-acre units; Stark
• 20067 - 20068, Whiting, pooling
• 20069, BR, Westberg-Bakken 7 hz wells on a 1280-acre spacing unit, McKenzie
• 20070, OXY USA, pooling
• 20071, OXY USA, commingling
• 20072, Marathon, amend Antelope-Sanish, 7 hz wells on some or all of the 1280-acre units, McKenzie, Mountrail
• 20073, Marathon, amend Four Bears-Bakken, 7 hz wells on a 1600-acre unit; McKenzie
• 20074, Marathon, amend McGregory Buttes-Bakken, 7 hz wells on some or all of the 1280-acre units; Dunn
• 20075, Marathon, amend Moccasin Creek-Bakken, 7 hz wells on some or all of the 1280-acre units; Dunn
• 20076, Marathon, amend Reunion Bay-Bakken, 7 hz wells on some or all of the 1600-acre units; Dunn, McKenzie
• 20077, Marathon, pooling
• 19879, cont'd
• 20078, GADECO, pooling

Thursday, April 25, 2013

• 20079, GMXR, Bennett Creek-Bakken, proper spacing, McKenzie
• 19320, cont'd
• 20080, GMX, Butte-Bakken, proper spacing, McKenzie
• 20081, GMXR, West Butte-Bakken, proper spacing, McKenzie
• 20082, BEXP, et al, Cow Creek-Bakken, proper spacing, Williams
• 20083, Zenergy, Dore-Bakken, proper spacing, McKenzie
• 20084, Zenergy, Nohly Lake-Bakken, proper spacing, McKenzie
• 20085, Zenergy, amend Eightmile-Bakken, establish an overlapping 2560-acre unit; 16 wells the unit; McKenzie, Williams
• 20086, CLR, Beaver Creek Bay-Bakken, proper spacing, Mercer,
• 20087, CLR, Hanson-Bakken, proper spacing, Williams
• 20088, CLR, amend Alkali Creek-Bakken, amend stratigraphic limits; Williams, Mountrail
• 20089, CLR, Brooklyn-Bakken, amend, establish an overlapping 2560-acre unit; one hz well, Williams
• 20090, CLR, amend White Earth-Bakken, create a 1280-acre unit; 1 hz well; Mountrail
• 20091, CLR, amend Dollar Joe-Bakken, create an overlapping 2560-acre unit; a hz well; Williams
• 20092, CLR, amend Upland-Bakken, create an overlapping 2560-acre unit, multiple hz wells; Divide
• 20093, CLR, amend Sadler and/or Dolphin-Bakken, create an overlapping 2560-acre unit; multiple wells; Divide
• 20094, CLR, amend Elm Tree-Bakken, create an overlapping 2560-acre unit; multiple wells; McKenzie, Mountrail
• 20095, CLR, amend Big Gulch-Bakken, create an overlapping 2560-acre unit; multiple hz wells; Dunn
• 20096, CLR, mend Squaw Gap-Bakken, create a 640-acre unit; one well; McKenzie
• 20097, CLR, amend Antelope-Sanish, create an overlapping 2560-acre unit, multiple wells; McKenzie
• 20098, CLR, amend Sanish and/or Elm Tree-Bakken, create an overlapping 2560-acre unit; multiple wells; Mountrail, McKenzie
• 20099, CLR, Rattlesnake Point-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 20100, CLR, Corral Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 2010, CLR, Chimney Butte-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 20102, CLR, Cedar Coulee-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 20103, CLR, Oakdale-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 20104, CLR, Jim Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn
• 20105, CLR, Murphy Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit, Dunn;
• 20106, EOG, Antelope-Sanish, 8 wells on an existing 1280-acre unit; 11 wells on an existing 1280-acre unit; McKenzie
• 20107, EOG, Clarks Creek-Bakken, 11 wells on an existing 1920-acre unit; 11 wells on an existing 1280-acre unit; 22 wells on an existing 2560-acre unit; McKenzie; 44 wells total; the 2560-acre spacing unit -- sections 6, 7, 18, and 19 - 151-94; the following wells are already in this spacing unit: 20886, 20887, 20888; 20890, 20891, 20892; one mile to the west, still in Clarks Creek, and ICO spacing: 22962, 22963, 20330, 20331, 20329, 20332, 20333, 20334
• 20108, Slawson, Squaw Gap-Bakken, create a 640-acre unit; 6 wells, McKenzie
• 20109, Slawson, Big Bend-Bakken, multiople wells on each existing 640-acre unit; multiple wells on each existing 1280-acre unit; five units altogether, I believe, Mountrail
• 20110: Slawson,  Elm Tree-Bakken, 12 wells on an existing 1280-acre unit; McKenzie
• 20111: Slawson, a very, very long case -- multiple wells on 5 640-acre units; multiple wells on 12 1280-acre units; multiple wells on 2 existing 1600-acre units; and multiple wells on an existing 3200-acre unit; Van Hook-Bakken, Mountrail
• 20112, Slawson, a very, very long case -- Four Bears, Sanish, Big Bend, and/or Van Hook-Bakken, create a 640-acre unit; create 2 960 acre units; create 16 1280-acre units; and 2 1600-acre units; for multiple wells; Mountrail
• 20113, Slawson, such an incredibly long case, NDIC even refers one elsewhere; the synopsis to the best of my ability: Four Bears, Sanish, Big Bend, and/or Van Hook: 1) create 4 overlapping 1280-acre units for one well each; 2) create 3 1920-acre units for one well each; create 3 overlapping 2560-acre units for one well each; Mountrail
• 20114, Emerald Oil, amend Foreman Butte and/or Boxcar Butte-Bakken, or Charbonneau Field, create 5 1280-acre units; 8 wells on each; 8 wells on an existing 1280-acre unit; McKenzie
• 20115, Marathon, extend Moccasin Creek and/or Bailey-Bakken; create an overlapping 3840-acre unit; multiple wells; Dunn
• 20116, XTO, amend Grinnell-Bakken, alter definition of stratigraphic limits, McKenzie, Williams
• 20117, XTO, amend Hofflund-Bakken, alter definition of stratigraphic limits, McKenzie, Williams
• 20118, XTO, ditto, Bear Den-Bakken, McKenzie
• 20119, XTO, Bear Den-Bakken, 16 wells on 5 existing 1280-acre units, McKenzie
• 20120, WPX, complete a well outside setback rules, Dunn
• 18497, cont'd
• 19682, cont'd
• 19902, cont'd
• 19999, cont'd
• 19898, cont'd
• 19900, cont'd
• 19487, cont'd
• 19488, cont'd
• 19901, cont'd
• 19342, cont'd
• 19223, cont'd
• 20121, EOG, Parshall-Bakken, 3 wells on an existing 1920-acre unit; 3 wells on an existing 2560-acre unit; and 3 wells on an existing 1280-acre unit; Mountrail
• 20122, Fidelity, Zenith-Bakken, 4 wells on an existing 1280-acre unit; Stark
• 20123, Fidelity, Dutch Henry Butte-Bakken, 2 wells on an existing 1280-acre unit; Stark
• 20124, Fidelity, Heart River-Bakken, 2 wells on an existing 1280-acre unit; Stark
• 20125 - 20127, Triangle, pooling
• 20128, Triangle, risk penalty legalese
• 20129, Triangle, Antelope Creek-Bakken, 8 wells on 4 existing 1280-acre units, McKenize
• 20130 - 20151, CLR, pooling,
• 20152, CLR, risk penalty legalese
• 20153, CLR, risk penalty legalese
• 20154, CLR, commingling a lot of wells;
• 20155, CLR, commingling a lot of wells
• 20156, Zenergy, pooling
• 20157 - 20160, Zavanna, pooling
• 20161 - 20165, G3 Operating, pooling
• 20166 - 20167, GMXR, pooing
• 20168, Corinthian, pooling
• 20169 - 20206, Hunt, pooling
• 20207, Emerald, Saxon-Bakken, 8 wells on an existing 1280-acre unit; Dunn
• 20208, Sinclair, Lone Butte-Bakken, 4 wells on 2 existing 1280-acre units; Dunn
• 19369, cont'd

Hearing Dockets -- April -- Interesting Cases

Complete summary here. A reader alerted me that they had been posted overnight; Friday was Good Friday; today is Saturday but someone at the NDIC was nice enough to go in and post these dockets. 

This is a very, very, very long case. There is a typographical error in the case:

20024, Petro-Hunt, a very, very, very long case: Charlson, Elm Tree, Phelps Bay-Bakken and/or Keene-Bakken/Three Forks; 1) authorize up to 10 wells on a 2560-acre unit; 2) establish 2 480-acre units, 1 hz well each; 3) establish 1 overlapping 640-acre unit, 2 hz wells; 4) establish 2 overlapping 1280-acre units, 3 hz wells each; 4) (sic) establish 2 1280-acre units, 7 hz wells on each; 5) establish 3 1920-acre units, 4 wells on each; 6) establish 15 overlapping 2560-acre unit, 2 hz wells on each; 7) establish 2 3840-acre units, 2 hz wells on each;

20025, Petro-Hunt, amend Clear Creek, Union Center, Camel Butte, and/or Edge-Bakken; create 7 overalapping 2560-acre units; one or more wells; McKenzie

20026, Petro-Hunt, amend Tioga and/or the Battleview-Bakken, create 13 overlapping 2560-acre units, one or more wells each; Burke, Divide, Williams

20031, G3 Operating, amend Antelope-Sanish, 12 hz wells on some or all 1280-acre units; McKenzie, Mountrail;

20032, G3 Operating, amend Eagle Nest-Bakken, 12 hz wells on some or all of the 1280-acre units; Dunn, McKenzie

20033, G3 Operating, Four Bears-Bakken, 12 hz wells on some or all of the 1280-acre units; McKenzie, Mountrail

20034, G3 Operating, amend McGregory Buttes-Bakken, 12 hz wells on some or all of the 1280-acre units; Dunn

20035, G3 Operating, amend Spotted Horn-Bakken, 12 hz wells on some or all of the 1280-acre units; McKenzie, Mountrail

20085, Zenergy, amend Eightmile-Bakken, establish an overlapping 2560-acre unit; 16 wells the unit; McKenzie, Williams

20099, CLR, Rattlesnake Point-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn

20100, CLR, Corral Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn

2010, CLR, Chimney Butte-Bakken, 14 wells on an existing overlappiong 2560-acre unit; Dunn

20102, CLR, Cedar Coulee-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn

20103, CLR, Oakdale-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn

20104, CLR, Jim Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit; Dunn

20105, CLR, Murphy Creek-Bakken, 14 wells on an existing overlapping 2560-acre unit, Dunn

20106, EOG, Antelope-Sanish, 8 wells on an existing 1280-acre unit; 11 wells on an existing 1280-acre unit; McKenzie

20107, EOG, Clarks Creek-Bakken, 11 wells on an existing 1920-acre unit; 11 wells on an existing 1280-acre unit; 22 wells on an exisitng 2560-acre unit; McKenzie; 44 wells total;

20108, Slawson, Squaw Gap-Bakken, create a 640-acre unit; 6 wells, McKenzie

20109, Slawson, Big Bend-Bakken, multiople wells on each existing 640-acre unit; multiple wells on each existing 1280-acre unit; five units altogether, I believe, Mountrail

20110: Slawson,  Elm Tree-Bakken, 12 wells on an existing 1280-acre unit; McKenzie

20111: Slawson, a very, very long case -- multiple wells on 5 640-acre units; multiple wells on 12 1280-acre units; multiple wells on 2 existing 1600-acre units; and multiple wells on an existing 3200-acre unit; Van Hook-Bakken, Mountrail

20112, Slawson, a very, very long case -- Four Bears, Sanish, Big Bend, and/or Van Hook-Bakken, create a 640-acre unit; create 2 960 acre units; create 16 1280-acre units; and 2 1600-acre units; for multiple wells;

20113, Slawson, this is such a long case, it has been separated from the others as a supplement, extended unto a third page; it doesn't appear that there are major items here, simply very lengthy descriptions where Slawson is going to put a lot of wells on overlapping units

20114, Emerald Oil, amend Foreman Butte and/or Boxcar Butte-Bakken, or Charbonneau Field, create 5 1280-acre units; 8 wells on each; 8 wells on an existing 1280-acre unit; McKenzie

20115, Marathon, extend Moccasin Creek and/or Bailey-Bakken; create an overlapping 3840-acre unit; multiple wells; Dunn

20119, XTO, Bear Den-Bakken, 16 wells on 5 existing 1280-acre units, McKenzie

What A Great Way To Start a Saturday Morning

Anthem, by Leonard Cohen, sung by Perla Batalla and Julie Christensen
Anyone who has a version 1 iPad will understand why I placed this as a stand-alone post.

Saturday Morning Links

WSJ Links

Section D (Off Duty): a lot of interesting stories; maybe later

Section C (Review):

• Book review: the hunt for Herman Melville, by Herschel Parker; Herman Melville: A Biography, two volumes; published in 1996 and 2002; 

Biography didn't really recover from the opprobrium directed at Boswell and Froude until the mid-20th century, when a sequence of great works put it on new footing: Leon Edel on Henry James (1953-72), Richard Ellmann on James Joyce (1959), Richard Sewall on Emily Dickinson (1974) and Joseph Frank on Dostoevsky (1976-2002). Then came Richard Holmes, with his biographies of Shelley (1974) and Coleridge (1989, 1998), and Norman Sherry, with his multi-volume Graham Greene (1989- 2004), who made of the biographer a heroic figure, an intellectual daredevil assiduously tracking his subject's "footsteps"—to cite the title of Mr. Holmes's classic account of his arduous travels as a "romantic biographer."

I've read most of those; I particularly enjoy any biography by Leon Edel; my favorite of those mentioned: Norman Sherry on Graham Greene.  

• First lady of the OK Corral; Wyatt Earp's fourth wife. Lady at the OK Corral, by Ann Kirschner.

• Photo-Op: Present at the Cetacean;

One autumn day in 2004, the wildlife photographer Bryant Austin found himself floating in the South Pacific between a humpback whale and her calf. As the child brushed past him, its folds and fins filling his vision, and the mother roughly bumped him aside, he was filled with awe. 'Beautiful Whale' (Abrams, 122 pages, $50) documents Mr. Austin's attempt to create an immensely detailed print of a full-size whale, to capture in pixels the size and serenity he had witnessed in the water. Humpbacks grow as long as 60 feet and can weigh 40 tons—even that playful calf weighed nearly 5,000 pounds.

Section B (Business & Finance): Nothing

Section A:

• Throwing Portugal under the bus.  Portugal rattles as US military pares back. Although never permanently stationed on this island, I "visited" while in the USA. I'm surprised the US has maintained military ops at this island this long. But someday some president will be relieved we still have what we have there. Look for Russia to make a deal with Portugal on using the base in the Azores if the US leaves completely.

When euro-zone countries were slashing budgets last year, U.S. President Barack Obama urged them to tackle their currency crisis by focusing more on growth. But it is Mr. Obama's own belt-tightening plan for the Pentagon that is about to put a Portuguese community in the middle of the Atlantic deeper into economic trouble.

By summer of next year, most of the 1,380 Americans living in Praia da Vitória, on an island in the Azores, will head home as part of a plan to cut U.S. expenses there by $35 million a year. Left behind will be 160 U.S. Air Force personnel, a reduced Portuguese support staff and hundreds of unemployed in a town of 22,000 that for more than six decades has helped maintain U.S. operations and homes at Lajes Field.

Word of the U.S. plans have rattled relations with Portugal, left the remote island's residents fearful over their prospects and even set off rumors that the base would be taken over by a rising global power. "We are talking about a devastating impact," said Roberto Monteiro, Praia da Vitória's mayor.

• Op-ed: the debt bomb that taxpayers won't see coming.

State and local governments owe $7.3 trillion in promises they've made that were never approved by taxpayers.

Earlier this month, the Securities and Exchange Commission charged Illinois officials with making misleading statements to bond investors about the state's pension system. The agency detailed a long list of deceptive practices including failure to tell investors that the system was so underfunded that it risked bankruptcy.

Illinois taxpayers, as well as the holders of its debt, will ultimately bear the burden of the officials' misdeeds. But there is nothing unique about the Prairie State. For years, elected officials in states and municipalities across the country have been imprudently piling up obligations that are imposing serious strains on budgets, prompting higher taxes and cutbacks in services.

In January, city officials in Sacramento, California's capital, reported the results of a study they had commissioned on all the debt that the municipality had incurred. At a City Council meeting that the Sacramento Bee reported as "sobering," the city manager explained that Sacramento had racked up some $2 billion in obligations (mostly pensions and retiree health care). All this for a municipality of 477,000 residents with an annual general fund budget of just $366 million.

You can bet cities are going to find a way to shift their local government obligations onto ObamaCare.

• California's coming green-outs: the wind and solar mandate means future power shortages.

Utilities have been in such a rush to bring new wind and solar projects online that they've been locking in long-term rates with developers that are often two to four times higher than what they pay for nonrenewables.

The Division of Ratepayer Advocates reported in 2011 that the California Public Utilities Commission has "approved nearly every renewable contract filed by the utilities, even when they rate poorly on least-cost, best-fit criteria."

Note: California residents and businesses already pay rates that are 25% to 60% higher than the national average. Excessive energy costs have helped to obliterate the state's manufacturing base. Hence, the obsession to chase green jobs.

• And that's just a start. An incredible bit of reporting disguised as an op-ed. This is really cool. Investors could do well.

The upshot is that millions of Californians could soon experience power outages. As the state derives more of its electricity from renewables, it needs more "peak" gas-fired plants that can ramp up to meet demand when the sun isn't shining and wind isn't blowing—namely during dawn and dusk.

Otherwise, rolling blackouts could ensue.

Nobody knows exactly how much flexible power is needed to ensure a reliable electric supply. The California Independent System Operator's best guesstimate is about 3,100 megawatts by 2017—and more thereafter as more wind and solar come online.

However, energy companies don't want to build new generators or refurbish older ones unless they're guaranteed a return on their investments—especially since peak plants are about 25% more expensive to operate and build than conventional turbines. Utilities also don't want to pay for back-up power they don't know they'll need.

• Op-ed: the liberal medicare advantage revolt. Democrats suddenly object to cuts i private insurance for seniors. I noted earlier that we will see the perfect storm in the 2014 mid-term elections. Vast majority of Congressional seats at risk are currently held by Democrats; in 2014 the voters will finally do what Ms Pelosi suggested: they will read the ObamaCare bill. They won't like what they see.

A big political story this year is likely to be Democrats turning on their White House minders as the harmful and unpopular parts of the Affordable Care Act ramp up. On the heels of the recent 79-20 Senate uprising against the 2.3% medical device tax, now comes the surge of Democrats pleading on behalf of Medicare Advantage.

Liberals have claimed for years to hate this program, but by now Advantage provides private insurance coverage to more than one of four seniors. And those seniors like it.

However, the ObamaCare true believers who run the Health and Human Services Department don't answer to voters, and they have written draft regulations that cut Medicare Advantage even more deeply than Congress mandated in the Affordable Care Act. Those cuts will bite hardest in states like Oregon (where 42% of Medicare beneficiaries use Advantage), or Florida (37%), New York (33%), California (37%) and Arizona (38%).

Week 13: March 24, 2013 -- March 30, 2013

Bakken operations
Crescent Point looking at unitizing in North Dakota; water flooding in Canadian Bakken
Baytex sets production records after selling non-core assets in the Bakken
Bakken Hunter has raised the bar on minimizing flaring 
Update on the DNR-COP deal in the Bakken
Cornerstone Natural Resources has a rig on the east/northeast edge of the Bakken
QEP's fan-shaped five-well pad configuration
Random update: Brooklyn field, CLR, 2560-acre spacing
Everything you need to know about natural gas and the Bakken
CNBC: the Bakken is the crown jewel of onshore drilling

Takeaway
Enbridge not concerned about pipeline permit denial

Economic development
Menards breaks ground on new store in Dickinson
North Dakota #1 in per capita income (excluding five northeastern states)
Ground broken on MDU/Calumet diesel refinery west of Dickinson

Red River formation
Update on operations in southwestern North Dakota

Miscellaneous
North Dakota, #1 in freedom -- Investor's Business Daily

Random Note on E-Mail

I check my gmail about every six months, if I remember.

My primary e-mail is my yahoo account, noted somewhere on this page.

If you have sent me a note to my gmail address, I apologize for not replying. It was not on purpose. As noted, I don't access my gmail account except on rare occasions. I will not reply to gmail.

Again, this is not an investment site: do not make any investment decisions based on what you read at this site, or think you read at this site.

Also, I generally do not discuss Bakken matters privately. If you write me, assume it will be posted (of course, if you tell me not to post it, I won't).  If you want credit for something you send me, let me know. I assume that photographs sent to me are okay to post (unless otherwise stated).

The reason I even checked my gmail tonight was because I noted an LA Times article that said folks were upset by the way Google was managing/changing their "compose" process. I just checked it out. Easy as pie. I am absolutely amazed by the things people complain about.

It does appear Yahoo mail is a bit easier, and certainly nicer to look at, but gmail is fine.

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A Note To The Granddaughters

I'm watching, for the umpteenth time, Leonard Cohen: I'm Your Man on DVD. It played in theaters several years ago. When it was first released, I told your Grammy I was going to go watch it at the local theater, and she laughed. I told her she could join me if she wished. She came with me, just to humor me, I suppose. She was blown away by how great the movie was. The music is incredible. It's easy to forget that Leonard was a poet first. 

I've worked hard at trying to understand poetry; having found Leonard Cohen, it has made it easier to understand. Poetry. My brother introduced me to Leonard. Craig used a Leonard Cohen CD to demonstrate the "awesomeness" of the Bose CD player.

I do believe is academicians and publishers were honest, Leonard Cohen would be ranked just slightly higher than Emily as a poet. But trying to knock Emily off the pedestal to be replaced by Leonard Cohen will be as likely as academicians accepting the real Shakespeare.

My carbon footprint is very small but if I have a Leonard Cohen DVD I am happy. Content. Satisfied.

My carbon footprint, when home, is less than 800 square feet. No television and no internet connection. I can sometimes access the internet from the neighbors in this apartment complex; tonight someone named Samantha has left her internet/Air Port open; thank you.

To make Algore happy, I have no car when I am home. I walk a lot. In fact, at home, in San Antonio I walk everywhere because there is no public transportation -- there is, but nothing compared to what Boston has.

As referenced, I get my internet connection where I can; it's "catch as catch can" if that's the phrase. I've gotten to know Starbucks cafes very, very well.

Back to the Leonard Cohen movie:

Nick Cave: a thousand kisses deep. One of my favorite songs.

Rufus Wainwright: Everybody knows. Incredible. His sister provides back up. 
Grammy loves Rufus.

And now, Martha Wainwright: If Grammy loves Rufus, I love Martha.

Leonard even talks "in poetry." Isn't this a great line (he says it with a slight chuckle)?

And there was a very beautiful young woman; she was a poet and she fell in love with ... with ... my friend. I would have preferred her to fall in love with me but I enjoyed hearing the story from his lips. He showed me a poem that he wrote her. I have never forgotten it. It goes, "I am a dreamer living in the past/Of silver nights that came and swiftly went/Your lovely ghost still owns the power of ...." He was not insensitive to the honor that he had received from her but I thought the poem was beautiful....

When talking about Moulin Rouge, Nicole Kidman says she was very nervous before she did a particular scene, but once she was in costume and makeup and took on the personality of Satine, she completely forgot she was "performing" in front of 600 cast and crew members (or whatever it was). Likewise, when one sees Martha Wainwright prepare for her Leonard Cohen song, you can see that she is transforming herself into "another entity" before she steps up to the microphone. I really believe that once she steps in front of the microphone and starts singing she is no longer Martha Wainwright, but she is the person she is singing of -- in this case being called a traitor. And when it was over, she could not get off stage fast enough.

And so it goes. It will be interesting to see if you watch this "movie" when you are as old as I am.

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Anthem, by Leonard Cohen, sung by Perla Batalla and Julie Christensen

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North Korea has US officials concerned according to the LA Times.

Obama administration officials who once hoped that North Korea's young leader could prove to be a reformer are increasingly worried that he might blunder his way into a war.

Even as they publicly describe 30-year-old Kim Jong Un's recent bellicose threats as bluster, administration officials have stepped up visible demonstrations of American military power. The aim, according to current and former U.S. officials, is to highlight for the North Koreans that their Stalinist regime might not survive a war on the Korean peninsula.

A younger leader who might blunder his way into a war. Are they talking about Barack Obama or Kim Jung On? Mr Obama has zero experience in military matters of this size; folks forget that he was seen as being in over his head when he came into office, and I just don't see him as being able to respond as John Kennedy did to the Cuban missile crisis. Chuck Hagel is not Robert Kennedy, perhaps John's most trusted and knowledgeable adviser regarding the Cuban Missile Crisis.

It goes without saying -- but we will say it anyway -- the newly-confirmed SecDef Chuck Hagel inspires no confidence.

The US military will respond regardless of who the commander-in-chief / SecDef are.

North Korea has been on a war footing for decades. South Korea has been getting softer and softer. The South Korean military understands the severity, but the South Korean-on-the-street, to judge from news reports, is not mentally prepared for what North Korea could unleash overnight.

Yes, Washington has every reason to be concerned.

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They say the B-2 flight near the North Korea border cost $2.1 million. That would have paid for 20 tours/month for almost one year. I look forward to the day when the White House is open to Americans again.