Friday, August 30, 2013

NDIC Hearing Dockets: September, 2013

Note: as you go through these cases, think about folks who elected to not participate in a given well in a given spacing unit, and become a working partner; some of these spacing units will see 15+ wells. 

Note: along that line, look at all the risk penalty cases.

Note: the percentage of cases in which maximum production and flaring is being requested; Lynn Helms and the commission have the authority to deny these requests which the majority of those commenting elsewhere would like to see. Activist environmentalists would be pleased. Again, the flaring issue in the Bakken could become a non-issue fairly quickly.

Note: permits for 600 or so wells being requested by EOG

Wednesday, September 25, 2013

20854, Evertson Operating, proper spacing, Ray-Red River, Williams County
20855, Whiting, proper spacing, Hoot Owl-Red River, Golden Valley County
20856, Whiting, temporary spacing, Williams 24-25; Golden Valley County
20857, Whiting, temporary spacing, Jones 44-25; Golden Valley County
20858, SM Energy, amend, Phelps Bay-Bakken, terminate a 960-acre spacing unit, and establish a 640-acre unit; 8 wells; McKenzie County
20859, Oasis, amend, Bull Butte-Bakken, establish an overlapping 2560-acre unit; 1 well, Williams
20860, Oasis, amend, Tyrone-Bakken; establish four overlapping 2560-acre units; 1 well each; Williams
20861, Oasis, amend, Squires-Bakken, establish two overlapping 2560-acre units; 1 well each; Williams
20862, Oasis, amend, Missouri Ridge-Bakken; i) establish one overlapping 2560-acre unit, 10 wells; ii) establish one overlapping 2560-acre unit, 1 well; iii) alter the stratigraphic definition Williams
20863, Oasis, amend, Robinson Lake and Alkali Creek-Bakken, establish an overlapping 2560-acre unit; 1 well; Mountrail
20864, Oasis, amend Willow Creek-Bakken; establish an overlapping 2560-acre unit; 1 well; Williams
20865, Oasis, amend, Baker-Bakken, establish an overlapping 2560-acre unit; 1 well; Williams, McKenzie
20866, Oasis, amend Camp-Bakken, establish an overalapping 2560-acre unit; 1 well; McKenzie
20867, Oasis, authorize, Baker-Bakken; 15 wells on some or all 1280-acre units; McKenzie, Williams
2868, Oasis, authorize, North Tioga-Bakken; 15 wells on a 1280-acre unit; Burke, Divide, Williams
20869, Oasis, authorize, Gros Ventre-Bakken; 15 wells on a 1280-acre unit; Burke, Mountrail
20870, OXY USA, amend, Little Knife-Bakken, establish one overlapping 2560-acre unit 1+ wells; Dunn
20871, OXY USA, amend, Cabernet-Bakken, establish one overlapping 2560-acre unit; 1+ wells; Dunn
20872, OXY USA, amend, Cabernet and Murphy Creek-Bakken, establish one overlapping 2560-acre unit; 1+ wells; Dunn
20873, OXY USA, amend, Dimond-Bakken, max production, flaring, Burke
20874, OXY USA, note to dismiss, amend, Fayette-Bakken, max production, flaring, Dunn
20875, OXY USA, amend, Little Knife-Bakken, max production, flaring, McKenzie, Billings, Dunn
20876, OXY USA, amend, Vanville-Bakken, max production, flaring, Burke
20877, Hess, amend, Truax-Bakken, authorize 8 wells on a 1280-acre unit; Williams
20878, Hess, amend, Rainbow-Bakkken, max production, flaring, Williams
20879, Hess, amend, Juniper-Bakken, max production, flaring, McKenzie
20880, Hess, amend, Hawkeye-Bakken, max production, flaring, McKenzie
20733, cont'd
20737, cont'd
20728, cont'd
20881, cont'd
20882, cont'd
20883, cont'd
20607, notice to dismiss, QEP, amend, Van Hook-Bakken, 16 wells on a 3200-acre unit; Mountrail, Dunn
20884, Nuverra, treatment facility
20885, Nuverra, treatment facility
20886, Nuverra, treatment facility
20887, Nuverra, treatment facility
20888, Earthworks, treatment facility
20889, Murex, Stanley-Bakken; 8 wells on 4 1280-acre units (32 wells total); Mountrail
20890, Murex, Sanish-Bakken, 8 wells on 4 1280-acre units (32 wells total); Mountrail
20891, Murex, pooling
20892, Murex, pooling
20893, Murex, pooling
20894, Murex, pooling
20895, Oasis, Cow Creek-Bakken, 9 wells on a 1280-acre spacing unit; Williams
20896, KOG, Epping-Bakken, 10 wells on a 1280-acre unit, Williams
20897, Samson Oil & Gas, pooling
20898, Samson Oil & Gas, pooling
20899, BR, pooling
20900, BR, pooling
20901, BR, pooling
20902, Whiting, SWD, conversion of 16581, Curl 23-14, McKenzie,
20903, Whiting, SWD, conversion of 16177, Mork 24-8, McKenzie,
20904, Whiting, Ash Coulee-Bakken, 4 wells on a 1280-acre unit; Billings
20905, Whiting, pooling
20906, Whiting, pooling
20907, OXY USA, Crooked Creek-Bakken, 7 wells on 7 1280-acre units (49 wells), Dunn
20908, OXY USA, pooling
20909, True Oil, SWD, conversion of 15507 Burlington Northern 31-27A;
20910, True Oil, pooling
20911, True Oil, pooling
20912, True Oil, pooling
20913, True Oil, pooling
20914, True Oil, pooling
20915, True Oil, pooling

Thursday, September 26, 2013 

20916, North Plains, suspend, revoke Murex permit, Dwight Ludwig 13-24H, Divide
20917, Sakakawea Ventures, treatment facility,
20918, New Frontier Group, treatment facility
20919, EOG, Clarks Creek-Bakken, proper spacing, McKenzie
20920, EOG, Parshall-Bakken, establish a 1280-acre unit; and establish two 1920-acre units 6 wells on each spacing unit; Mountrail
20787, cont'd
20495, cont'd
20921, Fram Operating, South Greene-Madison, proper spacing, Renville
20922, Zenergy, Eightmile-Bakken, establish an overlapping 2560-acre unit; multiple wells; Williams
20923, Zenergy, Sand Creek-Bakken, 16 wells on an existing 1280-acre unit; McKenzie;
20924, CLR, Twin Valley and Banks-Bakken, create an overlapping 2560-acre unit; mulitple wells; McKenzie
20925, CLR, Elidah-Bakken, create two overlapping 2560-acre units; multiple wells; McKenzie
20926, CLR, suspend, revoke a Hess permit, SC-5WX-152-99-0310H-1, McKenzie
20927, CLR, suspend, revoke a Hess permit SC-4WX-153-98-3130H-3, McKenzie
20928, CLR, suspend, revoke a Hess permit SC-4WX-153-98-3130H-2, McKenzie
20929, CLR, suspend, revoke a Hess permit, SC-4WX-153-98-3130H-1, McKenzie
20930, CLR, Beaver Lodge-Bakken, max production, flaring, Williams
20931, Corinthian, extend Haram-Spearfish; create five 320-acre units; 12 wells on each spacing unit; Bottineau (that could mean as many as 24 wells in each section)
20932, Corinthian, extend Northeast Landa-Spearfish/Madison; establish three 320-acre units; 12 wells on each unit; Bottineau;
20933, Enduro, recomplete the Beicegel Creek 27 42 well, McKenzie
20934, Enerplus, Eagle Nest-Bakken, establish an overlapping 1280-acre unit; 4 wells; Dunn
20935, Triangle, extend Sioux and/or Ragged Butte-Bakken, establish a 1280-acre unit; 8 wells, McKenzie
20936, XTO, Morgan Draw-Bakken, establish a 2560-acre unit; multiple wells; Golden Valley, Billings
20937, Slawson, Stockyard Creek-Bakken, establish two overlapping 960-acre units; 8 wells on each 960-acre unit; Williams
20797, cont'd
20938, Powers Energy, risk penalty legalese
20939, Fiedlity, Heart River-Bakken, max production, flaring, Stark
20940, Fideltiy, Zenith-Bakken, max production, flaring, Stark
20941, Crescent Point, Colgan-Bakken, max production, flaring, Divide
20942, Baytex, et al, West Ambrose-Bakken, max production, flaring, Divide
20943, Baytex, et al, Ambrose-Bakken, max production, flaring, Divide
20795, cont'd
20944, Newfield, Tobacco Garden-Bakken, max production, flaring, Mckenzie
20945, Mountain Divide, Fortuna-Bakken, max production, flaring, Divide
20946, WPX, Squaw Creek-Bakken, 11 wells on a 1280-acre unit; McKenzie
20947, WPX, Eagle Nest-Bakken, 11 wells on a 1280-acre unit; McKenzie
20948, WPX, Mandaree-Bakken, 11 wells on each of two 1280-acre units; Dunn
20949, WPX, Van Hook-Bakken, max production, flaring, Mountrail, Dunn, McLean
20498, cont'd
20500, cont'd
20501, cont'd
20800, cont'd
19901, cont'd
20658, cont'd
20950, Bakken Hunter, risk penalty legalese
20951, BOH, SWD
20952, BOH, SWD
20953, WPX, risk penalty legalese
20954, WPX, risk penalty legalese
20955, WPX, risk penalty legalese
20956, WPX, risk penalty legalese
20957, XTO, pooling
20958, XTO, pooling
20959, XTO, risk penalty legalese
20960, XTO, risk penalty legalese
20961, XTO, risk penalty legalese
20962, XTO, risk penalty legalese
20963, XTO, risk penalty legalese
20964, XTO, risk penalty legalese
20965, CLR, pooling
20966, CLR, pooling
20967, CLR, pooling
20968, CLR, pooling
20969, CLR, risk penalty legalese
20970, CLR, Alkali Creek-Bakken, 9 wells on an existing 1280-acre unit; McKenzie, Mountrail
20971, CLR, Banks-Bakken, 5 wells on each of two existing 1280-acre units; McKenzie
20972, CLR, Camel Butte-Bakken, 7 wells on an existing 12i80-acre unit; McKenzie
20973, CLR, Elidah-Bakken, 7 wells on an existing 1280-acre unit; McKenzie
20974, CLR, Camp-Bakken, 14 wells on an existing 2560-acre unit; McKenzie
20814, cont'd
20815, cont'd
20816, cont'd
20975, Baytex, risk penalty legalese
20976, Baytex, risk penalty legalese
20977, Newfield, risk penalty legales
20978, Triangle, pooling
20979, Triangle, pooling
20980, Triangle, pooling
20981, Triangle, pooling
20982, Triangle, Elk-Bakken, 8 wells on each of 3 1280-acre units; McKenzie
20983, Emerald, pooling
20984, Emerald, pooling
20985, Emerald, pooling
20986, Emerald, pooling
20987, Emerald, pooling
20988, Emerald, pooling
20989, Emerald, pooling
20990, Emerald, pooling
20991, Emerald, commingling
20992, Emerald, commingling
20993, Emerald, commingling
20994, Emerald, commingling
20995, Zenergy, pooling
20996, Zenergy, pooling
20997, Zenergy, pooling
20998, Zenergy, pooling
20999, Zenergy, pooling
21000, Zenergy, pooling
21001, Zenergy, pooling
21002, Zenergy, pooling
21003, Zenergy, pooling
21004, Zenergy, pooling
21005, Zenergy, pooling
21006, Zenergy, pooling
21007, EOG, Parshall; 6 wells on each of 37 existing 1280-acre units; and 6 wells on each of 43 existing 1920-acre units (approximately; I was unable to quickly count each spacing unit). But it looks like 6 wells on each of about 80 existing spacing units, which would be about 480 wells, Mountrail
21008, EOG, Van Hook-Bakken, 5 wells on each of 2 320-acre units; 7 wells on an existing 1280-acre unit; 7 wells on an existing 1920-acre unit' 7 wells on each of 3 1600-acre units; Mountrail
21009, EOG, Stanley-Bakken 6 wells on 4 1280-acre units; 6 wells on each of 9 1920-acre units; Mountrail
21010, Slawson, Sanish-Bakken, 7 wells on each of 2 640-acre units; 9 wells on an overlapping 1280-acre unit; 6 wells on each of several 640-acre units; Mountrail
21011, Slawson, Van Hook-Bakken, 7 wells on an existing 1280-acre unit; Mountrail
20839, cont'd
21012, Arsenal, commingling
21013, Enduro, commingling
21014, Enduro, commingling
21015, Fidelity, commingling
21016, Fidelity, commingling
21017, Flatirons, SWD
21018, Armstrong, Patterson Lake-Lodgepole, injection in the unitized formation, Stark

Give Him A Great Big Kiss, Shangri-La's

It Will Be A Long Night: The Agenda For The September Hearing Dockets Has Been Posted

In addition, "why the Bakken is still being sold for $14,000/acre."


Earlier today some asked me how difficult it was to find the "FTP" for a particular well. I said it would be quite difficult.

I was wrong. Elsewhere they are talking about the same thing. It appears the FTP data is easily found at the NDIC website at premium services. I only have basic services so I was unaware of this.

For those interested in FTP, check out the linked site above.

Friday Morning Links -- Around The Horn

SeekingAlpha story on investment opportunities in North Dakota.

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. 

KOG hits a new high, up a couple of pennies.

Oasis struggles.

CVX, COP, XOM: all up slightly; doing slightly better than the market today

EOG up slightly despite news of that isolated fire east of San Antonio

CHK is flat/down, but SD up slightly; SD is having a nice run.

UNP flat.

I don't follow BNSF (BRK) much any more; BRK follows the market in general.

ENB, EEP up slightly.

SRE, TransCanada: both up a bit.

Market relatively uninteresting today. Looks like everyone has left for the weekend.

Crime Story, Runaway, Del Shannon

Friday Morning News, Views, And Links -- Part II

I follow the Duvernay play here The Calgary Herald is reporting:
Alberta’s early stage Duvernay resource play has already absorbed $6 billion of investment and promises to be the subject of much more, analysts say, judging by recent activity and promising results.
“The Duvernay is arguably the most exciting emerging resource play in Canada,” says a research report from TD Securities published Monday.
“We estimate that over $6 billion has been spent on the play to date: $3 billion at land sales, $2 billion of corporate acquisition and divestitures ... and $1 billion in drilling activity.”
The Duvernay was the main driver of the record $3.2 billion spent at Alberta Crown drilling rights auctions in fiscal 2011-12.
The shale marine formation is believed to be the oil and gas source rock for many adjacent conventional Devonian formations that have already been extensively drained. It is found 2,800 to 3,600 meters underground, in thicknesses of 35 to 60 meters and extends over 400 kilometres from northwest to southeast Alberta.
Connecting the dots. Literally. Remember that story about Tesla looking to put in a recharging station at Mitchell, SD? It is being reported that utilities have requested permission to put in a high-voltage transmission line in northeast South Dakota to better connect the Big Stone power plant at Milbank, SD, to the grid system. Mitchell, SD, is in the same general area, though a bit farther southwest, but it looks like South Dakota is getting reading for Tesla.

Bloomberg reports spending increased less than expected:
Consumer spending in the U.S. rose less than forecast in July as income growth slowed, indicating further job gains are needed to sustain household purchases.
Consumer purchases, which account for about 70 percent of the economy, rose 0.1 percent after a revised 0.6 percent increase the prior month that was larger than previously estimated, the Commerce Department reported today in Washington. The median forecast in a Bloomberg survey of economists called for a 0.3 percent rise.
Incomes increased 0.1 percent, down from 0.3 percent the previous month.
Bad news, of course, but not even "reproducible" and probably not even statistically significant. Simply a data point that will be forgotten by this afternoon if not by noon.

O'BamaCare: unions will get the subsidies. Did anyone expect anything else? Is this even news? Before it's all over, everyone will get subsidies except those registered as Tea Party members. The NSA will know. And the NSA will tell the IRS.

Friday Morning News, Views, And Links -- Part I

Active rigs: 184

RBN Energy: more than you ever wanted to know about quality of crude oil going into pipelines. Regular readers will remember the articles regarding Enbridge's decision to limit its pipelines coming out of North Dakota to Bakken crude only. This provides some of the background.

WSJ Links

I agree completely. I have not followed the Johnny Manziel story and could not care less. But I have to admit, hearing the decision did sound like something straight out of The Onion. This will make the game a must-see game; and will actually make him even more a legend in his own time.
When I first read it, I didn't believe it. I squinted at the news break. Squinted! Like Harrison Ford in the desert heat. Texas A&M quarterback Johnny Manziel suspended for the…first half of Saturday's opener.
A half! Of one game? Was this true, or a hoax? It had all the fingerprints of The Onion.
It was real, of course: The NCAA threw half the book—dropped half a hammer—on Manziel on Wednesday after completing its investigation of allegations that the Heisman Trophy-winning quarterback had accepted money for autographs. Manziel denied wrongdoing, but the NCAA found "an inadvertent violation"—basically it said, What did you think all those autographs were for, dude?—so Texas A&M will sit its superstar for two quarters against the fearsome Owls of Rice.
One half. Thirty minutes. That's one "Seinfeld." Johnny Football could serve it standing on his helmet. He can sleep in. Hit the snooze button. Stay up to watch Fallon and Carson Daly.
This is the "blurb" immediately under the headline:
Radio broadcaster Cumulus Media is close to acquiring syndicator Dial Global, in a deal that is likely to shake up the radio industry's landscape and Clear Channel's dominance.
I'm not even going to read the article. I don't want my world view to be influenced by this article or by reality. But this certainly seems to have "Rush Limbaugh" fingerprints all over it. If so, one word: wow.  During my 13 years in San Antonio (just before moving up here to Grapevine-Ft Worth-Dallas area), I was just blocks away from Clear Channel headquarters in San Antonio -- I walked by it, bicycled by it, or drove by it every day I was in San Antonio. And, of course, I followed the Rush flap when he "crossed the line."

I am not going to link the stories because I really don't care (though I do invest in these companies), but it looks like the news coming out regarding Verizon, Vodafone is considered to be "colossal" by some. So, we'll see. I completely missed the story. Too tied up with the Bakken.

I like almost anything written by Niall Ferguson so this should be an interesting article, debating whether the Boston Consulting Group or Ferguson has it right, in "two views on the US trajectory." The article begins:
This study helps explain why Dow Chemical on Tuesday confirmed it will expand its manufacturing operations in Texas and Louisiana, and why scores of other companies—from Siemens to Toyota to Michelin —are expanding U.S. production, too.
The authors see the U.S. fast becoming one of the developed world's lowest-cost manufacturers, with a double-digit percentage advantage in key costs by 2015. Decline isn't part of this picture.
But first, the cold shower.
For corporate chiefs who worry about megatrends affecting business, Mr. Ferguson is a worthy Jeremiah. An economic historian and best-selling author who teaches at Harvard and is a sought-after speaker, he has long warned about sclerosis in the West. When I asked him two years ago what he would do if he ran a U.S. company, he responded: Move it to Hong Kong.
One can already see the two (Ferguson and Boston Consulting Group) are talking past each other.

I have no interest in this story, either, but it certainly has a lot of story lines, the story on increasing wages for fast food restaurant employees.  At the end of the day, we will see tectonic changes at McDonald's as they move to iPad kiosk ordering, cutting staff in half. Behind the scenes, there will be other changes, also. For the consumer, service will improve. The question is whether prices will increase. On prices, it is a win-win for the consumer. If prices stay the same, it's a win: same prices, better service. If prices increase, "we" might order "down" -- ordering small portions and perhaps helping our arteries and waist lines in the process. But this latest salvo ($15/hour) and ObamaCare will bring huge changes to fast food industry. (Assuming ObamaCare is even implemented.) Speaking of $15/hour, why don't they just ask for $150/hour?)

No links on the Syria story. I may do a separate piece on this. It would be a great poll, but I already have four polls and don't want any more. Four is excessive by three. In fact, some days I wish I did not even have the polls. But my contract requires at least one.

Under O'BamaCare, subsidies will benefit older buyers more than younger ones. Does this surprise anyone? Who are the voters in this country? This is not rocket science.

Also, under O'BamaCare: Americans will need to precisely manage their annual income, unless they want a huge unexpected tax bite

Something we already knew: the private sector shrugged of the sequester. I won't read the story because I'm sure it won't mention that at least 80% of money "cut" in the sequester has been restored; the biggest "items" hit by the sequester: White House tours, US Navy Blue Angels, and USAF Thunderbirds. Hardly a factor for the private sector, except for the hot dog vendor across the street from the White House.

Scientists shed new light on black holes. I am enjoying a "collector's item" Scientific American my wife got me the other day on quantum physics. I finally have the picture of the Standard Model (fermions, quarks, leptons, bosons) firmly planted in my mind. So this WSJ article will be fun to read. Maybe a note to the granddaughters later.

I think this is a bigger story than investors realize: the US won't challenge recreational marijuana use laws in Washington or Colorado. Do folks remember all the stories about all the trademarks held for naming marijuana cigarettes. Within my investing lifetime, we will see packs of marijuana cigarettes alongside tobacco; it will be interesting to see if mainstream corporations will risk their brand names by marketing marijuana. Think Blue Moon.

Will We See Stories Of Railcar Shortages For North Dakota Grain This Year?

A reader reminded me of this story.

Some years ago there was a flurry of stories about shortages of rail cars for handling North Dakota grain. Farmers and co-ops were concerned that the "near-monopoly" status of BNSF in North Dakota allowed the carrier to manipulate availability of rail cars, especially in the more "remote" areas. 

It would seem the huge crude-by-oil shipping would exacerbate the situation. Obviously hoppers that carry grain don't carry oil but I don't know if these grain hoppers carry other oil-service related supplies. I would think the bigger problem would be adequate number of locomotives and track.

So, I really have no idea. Curious what others think.

Will we see stories of railcar shortages this year for handling North Dakota grain?
  • Yes, more than usual due to the oil boom
  • Yes, but no more than usual
  • No

"The Finals": Your Favorite Bakken Operator

It looks like it's time to go with the "finals."

First, how we got here (I could be wrong which was the first round and which was the second round, but it doesn't matter):

The results of the first round, your "favorite Bakken" operator:
  • CLR: 36%
  • WLL: 27%
  • EOG: 18%
  • BEXP (STO): 11%
  • HES: 8%
The results of the second round, your "favorite Bakken" operator:
  • KOG: 46%
  • OAS: 26%
  • Slawson: 12%
  • Halcon: 9%
  • BR: 7%
The results of the "semi-finals" for "your favorite Bakken" operator.
  • CLR: 32%
  • EOG: 16%
  • KOG: 22%
  • OAS: 9%
  • WLL: 21%
So, the "finals" (posted August 30, 2013).
  • CLR:
  • KOG:
  • WLL:
My apologies to those who supported operators I never included from the beginning including QEP, SM Energy, XTO, and several others, of course. It showed my bias. Maybe I will do this again sometime down the road; if so, I will broaden the choices.