Highlights Of The Agenda For The NDIC's May, 2015, Hearing Dockets Has Been Posted

Updates

May 3, 2015: a reader noted this --

Two more interesting cases. Ff you look closer. 23969, and 23970 are for BR for spacing in two fields in Stark county. The interesting thing: BR does not yet have any wells in either if these fields. So apparently they will be drilling in these fields.

I talked to a Denbury company hand last year who said Denbury was going to start drilling around Dickinson this year. I wonder if it will actually be a Denbury-BR partnership, possibly including Armstrong Operating, as Denbury and Armstrong do have wells in these two fields. It will be interesting to watch.

The reader is correct; there are not BR wells in either field. BR had a permit in Eland field some years ago but it was canceled. A longer time ago, Conoco (which bought BR) had a dry well in Eland. So, BR has no wells in Eland-Bakken. That field is pretty much a Denbury field with some Wesco wells and some Armstrong wells. Armstrong has two active oil wells in Versippi (old wells) and one SWD well in same field. Note: I took this information from the NDIC website. I often make mistakes; if this information is important to you, go to the source.

Original Post

Disclaimer: these summaries are for my personal use only; you are free to read them; don't quote me on them; there will be typographical and factual errors.  If this is important to you go to the source. Link here.

Full summary here but these are the cases that caught me eye. In addition, there are some interesting set-back requests, requests for flaring waivers, etc. 

Wednesday, May 27, 2015
23958, Hess, Beaver Lodge-Bakken, establish two overlapping 2560-acre units; one well each; 11 wells on an existing 1280-acre unit, Williams County
23961, Hess, Robinson Lake-Bakken, establish an overlapping 2560-acre unit; 2 wells; 14 wells on an existing 1280-acre unit, Mountrail
23977, Oasis, Willow Creek and/or Camp-Bakken, establish a laydown 2560-acre unit; 28 wells on said unit; establish an overlapping 3840-acre unit; 3 wells; establish an overlapping 2560-acre unit; 3 wells; establish another overlapping 2560-acre unit; 1 well, Williams, McKenzie
23978, Oasis, North Tobacco Garden and/or Siverston-Bakken; establish six overlapping 2560-acre units; 3 wells on each, McKenzie
23983, Hess, Antelope-Bakken, 16 wells on an existing 1280-acre unit; McKenzie County
23900, Whiting, Banks-Bakken, 7 wells on an existing 2560-acre unit, McKenzie
23991, Whiting, Heart Butte and/or South Fork-Bakken, 4 wells on a 320-acre unit; 8 wells on each of two 1280-acre units; 10 wells on five 1280-acre units, Dunn

Thursday, May 28, 2015
24006, CLR, North Tobacco Garden-Bakken, 14 wells on an existing 1280-acre unit; McKenzie
24012, EOG, Parshall-Bakken, establish nine overlapping 1280-acre units; multiple wells; and establish four overlapping 1920-acre units; multiple wells, Mountrail
24019, Samson Resources, Ambrose-Bakken, establish an overlapping 160--acre unit; 9 wells, Divide
23020, Newfield, Haystack Butte-Bakken, establish an overlapping 1280-acre unit; 9 wells, Dunn
24053, Newfield, Bear Den-Bakken, ten wells on an existing 1280-acre unit; McKenzie
24054, Legacy, Red Rock Field, Souris Field, allowing the production of 39 wells to be  producedinto a central tank battery
24060, CLR, Rattlesnake Point-Bakken, ten wells on an existing 1280-acre unit; Dunn

Friday, May 29, 2015
All continued cases

Today's Rigzone Stories-- May 1, 2015

Links to stories over at Rigzone tonight; I'm too tired to do anything more than just link the stories tonight.

• $75 Brent oil through the rest of the year.
• North Dakota still on track for the oil tax break for operators
• Saudi Arabia restructures Aramco
• Despite economic climate, oil production from GOM will continue to rise
• Canada and US announce new CBR rules
• US oil companies taking advantage of rising oil price to lock in prices; will "vex" OPEC
• TransCanada posts profit; perhaps lucky for some that Keystone XL not approved

My hunch on the tax break: won't happen; May's WTI will stay above the floor.

My thoughts on the Aramco restructuring: look out  -- it appears Saudi is getting ready to maximize profits.

Week 17: April 26, 2015 -- May 2, 2015

One of the top stories this past week might be the fact that the price of WTI may have hit a new floor: $60. Another top story are the new North Dakota state oil production tax laws (linked below).

I drove from Dallas (Texas) to Williston; visited my dad for a few days, and then drove back to Dallas (Texas). Without question, the top story of the week has to be Reuters finding another reason why President Obama won't be announcing a decision on the Keystone XL before this October (2015).

My visit to North Dakota
Construction in the Bakken; price of gasoline, Texas to North Dakota
Video of truck reliever route northwest of Williston
Traffic at the four-mile corner west of Williston
Photograph: vacancy at the El Rancho hotel
Video of a "baby pad" in the Bakken
Video of the new bridge under construction across the Missouri River south of Williston
Video of a pad north of Alexander
Video of the Alexander bypass
Fracking water by pipeline
Video of another pad north of Alexander
Future home of SM Energy north of Williston
Crazy map of Williston
Video of "Country Cafe" in Alexander
Menards in Williston
Another pad north of Alexander

Operations
"NC" now being used by drillers: "NC" means the well has reached TD, but is awaiting completion 

Bakken economy
State passes new laws on production taxes on oil and gas
Three new electrical power infrastructure projects approved for the Bakken

Refineries
Dickinson MDU-Calumet refinery to be on-line by May, 2015

Agriculture
New biofuel to be planted in North Dakota for US Navy jets  

Miscellaneous
The former Mrs Harold Hamm loses her appeal

Construction In The Bakken -- May 1, 2015; Prices Of Gasoline, Texas To North Dakota

2014 - 2016 might go down as the period in which some huge roads and bridges were completed in the Bakken.

I cannot believe how fast the bypasses around Watford City and Alexander were completed. These were not small projects. A year ago I don't recall any evidence that the bypasses were being built. This year the truck reliever routes around Williston look like they are going to be completed. And the new four-lane Lewis and Clark bridge across the Missouri River is under construction and will likely be completed this summer, it appears.

Videos of these various projects can be found here. 

And, of course, this is on top of all the other roads that were upgraded or smaller new roads put in.

I noticed something different this year about road construction. Back in 2011, when things were really, really crazy, and there were not enough workers in the Bakken to get anything done, there were no flagmen / flagwomen alerting drivers to heavy equipment operating in the area. This time, there were many, many flagmen along the roads under construction. Not only that, but I also saw a pick-up truck with a water tank in the back with a man washing those plastic cones along the sides and down the middle of the roads. I don't think I've ever seen those plastic cones being washed.

I did not get over to Watford City this visit, but I know, based on my trip there last autumn, that there must be some great new roads north and west of that city.

I also forgot to take a photograph of the underpass being built under the Williston bypass, 18th street. I thought it would have been completed, but the winter slowed them down. It will be completed by the next time I get back to Williston. 

There are still too many buildings under construction to keep track of -- the big ones include the four-story building going up on south Main Street across from the old Hedderich's building.  I've already mentioned the new SM Energy building north of Williston (and a photograph). The huge, new high school on the northwest edge of Williston will be built this year; ground was broken on the day before I left Williston this past week to return to Texas. They say the high school will be completed by the autumn of 2016, in time for the 2016 - 2017 school year.

The new Williston airport will also probably break ground later this year. The contractor, I understand, has been selected, and final siting should be announced. Apparently "they" can't use the current ISN for the new Williston airport and all the "good" three-letter codes have been taken. It would have been nice if OIL would have been available, but it wasn't: Oil City, Pennsylvania, has that one. So, the IATA code for Williston will be something like XWA.

Menard's in Williston is huge (previously posted) and should be opening any day now. 

Some other announcements:

• Jimmy John's opens in Dickinson (JJ's is already located in Williston; so if Famous Dave's).
• Home of Economy opens in Watford City.

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New Building Going Up On South Main

Oh, by the way, everywhere construction was being done -- roads or buildings -- the folks were working well into the evening and on Sundays. They were taking advantage of the good weather and long days.

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For The Archives: April, 2015, Trip To The Bakken

Gasoline Prices

Price for unleaded, least expensive (generally 87 octane rating) gasoline; places where I stopped to buy gasoline (disclaimer: generally rounded; sometimes I could not read my own handwriting and my price may be slightly off):

• Grapevine, Texas (near DFW) -- origin: $2.49 
• Oklahoma - Kansas state line -- $2.29 (in Oklahoma) 
• Phillipsburg, NE: $2.36 
• Oshkosh, NE: $2.49 
• Rapid City, SD: $2.39 
• Belfield, ND: $2.45 
• Williston, ND: $2.50 

Return Trip 

• Belfield, ND: $2.50 
• Hermosa, SD (nr Rapid City): $2.48 
• Oglala, NE: $2.50 
• Hays, KS: $2.42 
• Wichita, KS (south of the city): $2.36 
• Oklahoma City: $2.25 
• Grapevine, Texas -- $2.49 

Comments:

• pretty much the same everywhere
• most expensive gasoline was at the CENEX stations. I only made the mistake of getting gasoline once at a CENEX station
• Williston and Grapevine were the most expensive; Oklahoma the least expensive

Seven (7) New Permits -- May 1, 2015; Blowing Bubbles

Active rigs:

	5/1/2015	05/01/2014	05/01/2013	05/01/2012	05/01/2011
Active Rigs	86	187	189	209	173

Seven (7) new permits --

• Operators: WPX (4), CLR (3)
• Fields: Van Hook (Mountrail), Crazy Man Creek (Williams)
• Comments:

One (1) producing well completed:

• 28920, 1,587, Hess, BB-Belquist-150-95-1110H-10, Blue Buttes, t4/15; cum -- 

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Blowing Bubbles