Random Note -- June 1, 2019

Updates

June 3, 2019: correcting an error. From a reader:

The "oil and gas division" of the NDIC was not involved in this MRO case. The Marathon decision was by the ND Board of Trust Lands. This Board among other duties manages the state-owned minerals [as well as surface ownership and other responsibilities].

This is the link that takes one to minerals management by the Board: https://www.land.nd.gov/mineral-auctions. This is a separate entity from the Oil and Gas Division of the Industrial Commission. 

My comments regarding my appreciation for the NDIC still hold. And it sounds like the ND Board of Trust Lands also deserves my praise for moving things along without unnecessary delays.

Original Note 

One of the "things" I've appreciated about the NDIC is this: it's my impression the NDIC moves along at a pretty good clip, not taking months or years to make a decision. Most recent case in point: MRO and request for another extension on a lease. [This is an error: see June 3, 2019, update above.]

I think the NDIC heard the case on May 30, 2019, and on May 31, 2019, we got the decision.

I might not have the exact dates right but for armchair pundits it was on/about May 30, 2019, that we started reading the story in media outlets. The next day: boom, the decision. 

The NDIC didn't set up another committee or working group to study the issue. The NDIC didn't table the issue for another month. The NDIC didn't poll the public; no speeches. Nothing. They heard the case and the next day announced their decision.

Right, wrong, or indifferent (and in this case, it's hard to disagree with the NDIC), MRO got their answer.

On another note, MRO did have a pad in the area they could have used to solve their problem. The location of that pad was not good and a well drilled from that pad would have left up to 25% of the oil in the drilling unit "stranded" but at least it would have "bought them time." They would have held their lease by production and could continue to work the issue of a better location for a multi-well pad.

For background:

• MRO denied: link here. See this post for background and graphics. 

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Salmon For Dinner