North Dakota's Active Rigs At Post-Boom Low; 5/5 Bakken DUCs Reported; No (0) New Permits -- October 19, 2015

Active rigs:

	10/19/2015	10/19/2014	10/19/2013	10/19/2012	10/19/2011
Active Rigs	66	190	184	186	198

Wells coming off the confidential list Tuesday:

• 23792, SI/NC, CLR, Monroe 2-2H1, Banks, no production data,
• 28921, SI/NC, Sinclair, Highland 4-9H, Sanish, no production data,
• 31031, SI/NC, EOG, Shell 6-1930H, Parshall, no production data,
• 31032, SI/NC, EOG, Shell 5-1930H, Parshall, no production data,
• 31038, SI/NC, Statoil, Vachal 3-34 7H, Alger, no production data,

Whiting renews a Skunk Creek permit (Dunn County); Petro-Hunt renews a Hoiby permit (Mountrail County).

Two producing wells completed:

• 29232, 2,369, Statoil, Smith Farm 23-14 6TFH, Cow Creek, t9/15; cum --
• 30089, 2,577, BR, CCU Dakotan 5-8-17TFH, Corral Creek, t9/15; cum -- 

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Bakken Economy

Delta suspends flights to Dickinson; lack of passenger demand.

State engineer ends policy on irrigation water for fracking:

In another sign of the oil industry slowing down and infrastructure catching up in North Dakota, the state engineer’s office is discontinuing a program that allows irrigation permit holders to sell water to the oil industry for use in hydraulic fracturing.

The engineer’s office launched the Industrial Water Use in Lieu of Irrigation Policy, or ILOP, in 2011 as an emergency measure to meet the industry demand. The voluntary program allows farmers who held the permits to suspend their irrigation use for a season and use that water for fracking in the oil industry.

Vandalism at root of one spill; a fracking-related blow-out south of White Earth (separate incidents); The Bismarck Tribune is reporting:

First incident: The blowout of a well south of White Earth at 11 p.m. Saturday remains uncontrolled as the State Health Department’s new spill investigation team is on scene.

The department's team manager Bill Suess said Oasis brought in a well control team to stop the flow of oil and salt water. The Oil and Gas Division reports that approximately 8,200 barrels were spilled in the incident, with that number was still in flux as of late Monday.

Second incident: Health Department authorities also are reporting a separate 300-barrel spill in Williams County that was apparently caused when vandals opened two tank seals. Sixty barrels have been recovered so far, and it appears no water drainage has been impacted. An investigation is continuing. The vandalism was discovered Friday about 2 miles northwest of Tioga at a Murex Petroleum well.

Back to the first incident: At the blowout well, fluids are contained within the well pad berm, which is being pumped to prevent overflow, Suess said. An oily sheen from the blowout mist is visible on the White Earth River, and absorbent booms were placed there to prevent downstream contamination, he said. The river empties into Lake Sakakawea, 4 miles to the south.

The incident was caused when Oasis hydraulically fractured another nearby well, apparently causing this one to blow, even though it had been shut in to safeguard against exactly that outcome, according to Oil and Gas Division spokeswoman Alison Ritter. She said oil companies have to provide notice when they'll be fracking within 1,300 feet of an existing well, so operators can take necessary precautions.