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Transcript of Tappin' the Bakken' Spring 2011
310 2nd Ave. NE, Sidney, Montana 433-2403 • www.sidneyherald.com
tappin’ the bakken’spring 2011 edition
Exploring the MonDak oil industry
The 13th biannual issueSunday, May 1, 2011
Special Supplement to the
The Sidney Herald’s“Tappin’ the Bakken” is the most informative
and longest running oil section in the MonDak area.
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Tappin’ the Bakken spring edition2 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 3
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BY LOUISA BARBERSIDNEY HERALD
Interstate Engineering surveyorsregularly get an early start to theirdays. There’s a lot of work to do.
Interstate is one of several compa-nies that conducts land surveys for oilcompanies wanting oil wells, salt wa-ter disposal wells or pipelines. Andstaking a plot can get complicated in-volving several entities – oil companyrepresentatives, government agencies,land owners for instance.
Aaron Hummert, project manager,survey crew chief and four-year veter-an with Interstate, puts in up to 17hours a day driving to sites and sur-veying new wells. His job is requiredfor oil company clients to acquire var-ious permits and to pinpoint exactproperty and easement lines in case ofany landowner disputes.
A recent day-long trip with the sur-veyor brought to light the role survey-ors play in the oil play. Their part is vi-tal to its continuance.
SURVEYINGSurveying a well site or pipeline
starts with an oil company giving au-thorization to the surveying companyto stake a given location. Interstateprepares the preliminary documentswith necessary information. Thesedocuments include the original surveyplats, field notes from previous proj-ects and terrain maps. Before going tothe site, surveyors like Hummert re-view the client’s orders and maps toget an idea of what is required to com-plete the survey. Generally, it takesabout two hours to do preliminarywork.
“We do it anywhere from a yearahead of time to days,” Hummert saidof staking wells before drilling. “Itjust depends on the project.”
On this particular ride-a-long, Hum-mert, who has surveyed hundreds ofoil wells, was headed north of Willis-ton, N.D., to as-built an existing saltwater disposal site, a job slightly dif-ferent than staking a brand new well.
Upon arrival, Hummert set up thebase station, a tripod holding a sophis-ticated piece of equipment, a GPS re-ceiver, and another holding a radio an-tenna.
Interstate Engineering keeping up with oil patch work
LOUISA BARBER | SIDNEY HERALD
Aaron Hummert works up to 17 hours a day surveying terrain in the area.SEE ENGINEERING | PAGE 5
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Tappin’ the Bakken spring edition4 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY LOUISA BARBERSIDNEY HERALD
One year following its an-nouncement to investigate hy-draulic fracturing’s effects ondrinking water, the U.S. Envi-ronmental Protection Agencyis in the midst of a two-yearstudy into the process vital toBakken development.
The EPA has submitted a 126-page draft study plan to the Sci-ence Advisory Board for review,which lays out details on how itwill go about examining frack-ing. According to the plan, itsgoals are to answer the follow-ing questions:
• Can hydraulic fracturingimpact drinking water re-sources?
• And if so, what are the con-ditions associated with the po-tential impacts on these re-sources due to fracking activi-ties?
And study leaders will an-swer that by examining thefracking water lifecycle (wateracquisition, to mixing it with
chemicals, actual fracking topost-fracking such as flow-back).
“These research activitieswill identify potential sourcesand pathways of exposure andwill provide informationabout the toxicity of contami-nants of concern,” the plansays. “This information canthen be used to assess the po-tential risks to drinking waterresources from hydraulic frac-turing activities. Ultimately,the results of this study willprovide policymakers at alllevels with sound scientificknowledge that can be used indecision-making processes.”
While the advisory board re-views the plan, EPA officialsplan to conduct a series oftechnical workshops with sev-eral government and non-gov-ernment officials briefing theagency on technical issues inorder to provide better under-standing for researchers. Thedraft should be open for publiccomment and peer review. TheEPA claims that in public
meetings in September 2010 inNew York, Pennsylvania,Texas and Colorado, atten-dance exceeded 3,500, and hasreceived more than 5,000 com-
ments on the issue.The fracking controversy de-
veloped from groups con-cerned that the chemicals usedin the process contaminate
surface and ground watersources even though only .5percent of the fracking fluid is
EPA fracking study under way in Bakken Play
LARENE LILY GRONDAHL | SIDNEY HERALD
Deer feed in a field near an oil rig site near Watford City, N.D.
SEE EPA | PAGE 10
P.O.Box 2356, Williston, North Dakota 58801(701)774-3001 • FAX 774-0774
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 5
The unit will communicatewith overhead satellites to pin-point the exact points of loca-tion of this well.
“Our measurements withthis are good within an inch,”he said. The GPS also correctsany distortion from military in-terference.
This base receiver collectssatellite signals (the coordi-nates), sending it to through anunoccupied radio frequency forthe data to be collected on aportable device that will laterbe downloaded to a computerand graphed. “Nearly every sta-tion is busy. That’s how muchactivity’s out here,” Hummertsaid, having taken several min-utes to find an open frequency.
Following an initial checkshot to ensure the GPS equip-ment is accurate, Hummertstands at various locations onthe well site checking and
Engineering: Work is accurateFROM PAGE 3
LOUISA BARBER | SIDNEY HERALD
Aaron Hummert takes a reading.LOUISA BARBER | SIDNEY HERALD
Aaron Hummert, left, and Josh Schmierer review plans.SEE DRAFTING | PAGE 7
Tappin’ the Bakken spring edition6 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Tappin’ the Bakkin spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 7
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recording the data. These establishedcoordinates determine section lines inrelation to the nearby section propertylines, ensuring the well is in the correctlocation and quantifying disturbed landfor lease payments. The collected data isalso required for oil companies to be incompliance when submitting state andfederal permits for legal and environ-mental purposes.
DRAFTINGThen it’s back to the office where vari-
ous staff take the information and createseveral drawings a graph for the well lo-cation plat which shows where the loca-tion is in relation to section lines. Thefinished product is given to a profession-al land surveyor for review and approvaland sent off to the client for approval. Ittakes designer Josh Schmierer about aday to draft a well. His work allows himto track where the activity is. Most wellsare being done in North Dakota such asWilliams, McKenzie and Mountrail, butalso in northeast Montana in Richland,Roosevelt and Sheridan counties. Activi-ty here looks promising. “It seems to bepicking up a little,” he said.
Over the years, Interstate Engineering
has staked hundreds of well sites, proba-bly too many to count. “We’ve done abunch. Let’s put it like that,” Hummertsaid.
Roughly 80 percent of his work is oil-related. Interstate, whose clients include
big name and smaller oil companies, hasdone a number of well projects; it variesby the week from a couple to a dozen ormore. And those projects take Hummertand other surveyors hundreds of milesaway. Hummert racks up mileage up-
ward of 1,200 miles a week. It’s worth it,he says. “I’m glad I’m in an area wherethere is opportunities for oil work goingon now, especially during a time whereelsewhere there isn’t a lot going on,” hesaid. “I’m glad to be a part of it.”
Drafting: About 80 percent of work is now oil related in areaFROM PAGE 5
LOUISA BARBER | SIDNEY HERALD
Aaron Hummert racks up about 1,200 miles a week.
Tappin’ the Bakken spring edition8 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY BILL VANDER WEELESIDNEY HERALD
Gene Trudell, owner of HotWheels Roustabout, needed tofind a place to live for his newemployee, Aaron Masters.
His older sister Irene Emly,meanwhile, had plenty of spacein her basement. Plus she need-ed some extra income and assis-tance with outside work.
It turned into a situation thatwas beneficial for both parties.Masters moved in Oct. 1, andthere’s been only positives inthe arrangement.
“Gene talked to me in Sep-tember about renting a room inthe basement,” Emly said. “It’sbeen a boon financially. It’sbeen fantastic. These are justnice guys.”
In March, Masters’ brother-in-law Mike Dean also movedinto Emly’s basement.
“It’s just kinda interesting. IfGene didn’t mention it, I don’tthink I would have thought ofit,” Emly said.
Trudell feels there’s manyhomes in the area that have ex-tra rooms to rent and that couldreduce the area’s housing prob-lems.
“There’s no place to live, Iknow there are all kinds offolks who live in a big house.There’s any number of homeslike this,” Trudell said.
While he personally madesure Masters would be a safetenant for his sister, Trudellhopes the Sidney Chamber oranother organization wouldcreate a type of “clearing-house” to do checks on possibletenants for area residents.
“I don’t see a down side of itfor anybody,” Trudell said. “It’sa win-win both ways.”
He noted the tenants can helpolder home owners with lawnwork, shoveling snow and evenjust visiting with them.
Masters said the arrange-ment couldn’t have gone anybetter for him. He needed tomove from Oregon because ofthe poor economy.
“I came because of the oppor-tunities that are out here,” Mas-ters said. “The economy is badin most of the nation, and thework here is bountiful.”
He, however, told Trudell pri-
or to moving that he wasn’t go-ing to live in a tent. That gotTrudell to thinking about possi-bilities.
“He seemed like a great guy, Ichecked him out. It’s gone likegangbusters,” Trudell said.
Masters added, “I don’tsmoke, and I have three rentalhouses at home, so I know whatit’s like to have renters.”
Masters says the arrange-ment is immensely better thanliving in a man camp or stayingat a motel for him. The base-ment includes a stove, a kitchenarea, living rooms, bath and
two bedrooms.“Trying to find a place to rent
is pretty darn tough – especial-ly with laundry service andcookies,” Masters joked.
Yes, Emly does his laundryand isn’t afraid to share treats.“When I make something that Idon’t want around to tempt me,I bring it down there.”
She noted when she neededMasters to repair a door latch,his payment was a homemadebanana cream pie.
“It’s important to chip in withchores,” Masters said. “Shedoes things for me, and I do
things for her.”They have enjoyed a few
meals together as well. “I cando the slow cooking stuff thatthey can’t,” Emly said.
The rent payments help herwith paying bills especiallysince her husband, Albert, is aresident of Sidney Health Cen-ter Extended Care.
“I’m sure there are other peo-ple who haven’t consideredthis,” Emly said. “Some peoplewould like a sleeping room ifnothing else.”
Masters took care of the snowremoval this winter and usual-
ly goes to bed between 8:30-9p.m.
“These guys are really good.They even take their shoes offbefore coming inside,” Emlysaid.
Both enjoy having a littlecompany when needed. Emlynoted one day when she wassick, it was nice to be checkedup on to see if everybody wasOK.
“It’s nice to be able to havesomeone around to talk with,”Masters said.
Living relationship works well for local resident, oil field worker
BILL VANDER WEELE | SIDNEY HERALD
Aaron Master, employee at Hot Wheels Roustabout, enjoys renting the basement at the residence of Irene Emly.
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 9
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OIL & GAS SEVERANCE FUNDFor the Nine Months
7-1-10 to 3-31-11
Beginning Cash $535,243.09
REVENUESOil & Gas Production $689,509.22Leases 644.11Miscellaneous 166.23Investment Earnings 5,767.77SID #102 Reimbursement 11,000.00
Total Revenues 707,087.33EXPENDITURES
General GovernmentCentennial $4,060.66Website 950.00Dues/Fees 100.00City Planner 7,896.19Health Insurance 9,693.99Contributions 18,250.00
(Richland Opportunities-Richland Economic-Boys & Girls Club-MonDak Heritage Center-RichlandCounty Commission-EPRC&D-Richland County Community-Erase Ewaste-Richland CountyCoalition-Richland County Emergency-Senior Companion Program)
Christmas Bonuses (Employees) 8,833.60Legal 4,000.00Glendive-3% 20,685.28Operating-Library/PERS/Insurance 150,000.00
Total General Government $224,469.72Public WorksRoad & Street
Streets-CIP $10,000.00AutoCAD & Tower 9,831.84Bike Path 6,213.67North Central 6,500.00
WaterFilters 75,000.00
Total Public Works 107,545.51Culture & Recreation
Pool-Painting $20,987.27Parks-2 Pickups 7,500.00Parks-Elm Trees Removed 2,150.00
Total Culture & Recreation 30,637.27Total Expenditures 362,652.50
Ending Cash $879,677.92
REMAINING COMMITTED APPROPRIATIONS AND ESTIMATED REVENUE PER BUDGET 2010-11
General Government $319,307.19Transfers budgeted expected not to be used -200,000.00
Public Safety 50,001.32Public Works 362,186.43Culture & Recreation 76,863.56
Total Remaining Committed Appropriations 608,358.50
Remaining Estimated Revenue Per Budget 62,898.67Estimated 4 th Qtr Payment Above Budget 180,000.00
Projected Cash Balance 6/30/2011 $514,218.09
LARENE GRONDAHL | SIDNEY HERALD
Oil activity continues to increase in the MonDak region.
City of Sidney oil and gas severance fundfor nine months, July 1, 2010 to March 31, 2011
Tappin’ the Bakken spring edition10 SUNDAY, MAY 1, 2011 SIDNEY HERALD
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chemicals. Most is fresh waterand sand. Much of the focushas been centered on hy-draulic fracturing on the EastCoast, like the Marcellus, agas formation, in New York.But it isn’t necessarily what itwill study.
“One of the issues EPA hasto grapple with is how broadof an analysis it has to do,”said Lee Fuller, vice presidentof government relations withthe Independent PetroleumAssociation of America,which began a campaign,www.energyindepth.org, to fo-cus specifically on fracking.The EPA questions whether itshould focus on shale oil andgas like the Bakken or coalbedmethane? And will it have cor-rect information to make asound judgement?
Industry officials in theMonDak are concerned thatwith the EPA’s findings (due tobe released in late 2012), itcould ban hydraulic fractur-ing or issue an across-the-board “blanket” act that
would regulate an alreadyheavily regulated industry.Leaders say it’s best to leaveregulations up to the states.
Depending on the outcome,there are a number of scenar-ios which play out if theagency determines fracking isdangerous. The worst ofwhich is prohibition. Anotheris having it be subjected to ad-ditional regulations underfederal authority. “Hydraulicfracking under federal re-quirements creates opportu-nity for litigation,” Fullersaid.
Industry officials say frack-ing has helped make morethan 4,000 Montana oil wellsmore productive; without itthe industry would vanish.
“Hydraulic fracturing is thetechnology that makes the oildevelopment possible,” saysMontana Petroleum Associa-tion executive director DaveGalt. “We’re definitely con-cerned about misinformationbeing spread.”
EPA: Industry officials concerned about findingsFROM PAGE 4A
• Water availability• Impact of water withdrawal on water quality
• Release to surface and ground water(e.g., on-site spills and/or leaks)
• Chemical transportation accidents
• Accidental release to ground water (e.g., well malfunction)• Fracturing fluid migration into drinking water aquifers
• Formation fluid displacement into aquifers• Mobilization of subsurface formation materials into aquifers
• Release to surface and ground water• Leakage from on-site storage into drinking water resources
• Improper pit construction, maintenance, and/or closure
• Surface and/or subsurface discharge into surface and ground water• Incomplete treatment of wastewater and solid residuals
• Wastewater transportation accidents
Water Acquisition
Chemical Mixing
Flowback andProduced Water
Well Injection
Wastewater Treatment and Waste Disposal
Water Use in HydraulicFracturing Operations
Potential Drinking Water Issues
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 11
BY LOUISA BARBERSIDNEY HERALD
Before any production can be-gin, it’s all about permitting tomeet heavy state and federal en-vironmental regulations. Com-panies invest thousands of dol-lars to acquire the correct per-mits, and that’s where Bison En-gineering Inc. comes in.
The Montana-based companyhelps clients prepare environ-mental permit applications, us-ing its skills to advise clients ofthe appropriate permitting pathto follow and the most timelystrategy to obtain the permits.
For more than 30 years, Bisonhas specialized in preparingand submitting air quality per-mits, conducting site and con-trol inspections, and source test-ing, which measures emissionslevels for gases such as sulphurdioxide, carbon dioxide (CO2),carbon monoxide and othergreenhouse gases.
“Air quality rules get stricterevery year. It’s an ongoing non-
stop effort to remain in compli-ance, protect the environmentand continue to develop our nat-ural resources,” Erik Anspach,the company treasurer, said.
Permitting well sites ensurecorrect air quality controls, andBison assists oil companiesthrough the longevity of theirwells, making sure to stay incompliance with all rules andregulations.
“We’re here to protect thequality of life by balancing theenvironment and the economy’sneeds,” Bret Gallo, project engi-neer, said.
During the air permittingprocess, which is required to becomplete within 60 days fromthe completion of a drilled oilwell, Bison helps estimate emis-sions, performs chemical analy-ses, conducts software simula-tion and reviews the company’sair quality control equipment tomake sure it has the correctequipment so emissions are as
Air quality experts Bison Engineering busy working in Bakken
SUBMITTED
Bison Engineering performs work in Montana, North Dakota, South Dakota and Wyoming.SEE BISON | PAGE 15
Tappin’ the Bakken spring edition12 SUNDAY, MAY 1, 2011 SIDNEY HERALD
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Montana Office:P.O. Box 1182, 104 2nd Ave.S.W. Ste 300, Sidney, MT59270 • 1.406.433.9650Phone • 1.406.433.9653 Fax
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BY HARRY LIPSIEASIDNEY HERALD
There are particular needsthat every public school in thenation has to fill. With the helpof oil and gas funds, educationin eastern Montana has benefit-ed by being able to make manyof these improvements.
One such example is a currentproject in the Savage SchoolDistrict. In its beginning stages,the job will make improvementsthroughout the school building.
“We’re definitely filling sever-al needs,” Savage Superinten-dent of Schools Dan Lantis said.“These are improvements thathave been needed to be made fora while now. We’re excited thatthey we’ll be completed with thehelp of the oil money. It’s a greatresource.”
One of the changes to theschool will be the installation ofa heat pump. The current coalboiler has been in need of re-placement for some time, Lantissaid.
“We felt that a heat pump wasthe best way to go,” he said. “It’s
going to mean less mainte-nance, and with the boiler sys-tem you always need someonewith a boiler’s license. So thisshould be much more conven-ient.”
An air conditioning unit willalso be installed in the building,which is something new to theschool district. This will makehot weather much more bear-able in the spring and summermonths, Lantis said. A new ad-dition will also be built onto thesouth side of the school used forlocker room space. The newrooms will be more spaciousand centrally located for visi-tors.
“It’s something that needs to
be done,” he said. “Our currentspace isn’t as functional as itshould be.”
Work will also be done to thelobby to add a concessions area.Currently, fans must walkthroughout the school to pur-chase concessions. Another partof the project is to make the lob-by and gym handicap accessi-ble. There are no wheelchairramps onto the playing floor atthis time.
“These are improvements thatwill make our school muchmore convenient to visitors,”Lantis said. “We are looking for-ward to becoming a handicapaccessible site. It’s very impor-tant to our district.”
The $3.1 million projectwould not be available if itweren’t for oil and gas revenue.Without that money the bond-ing capacity is $1.8 million, wellshort of what’s needed for thefunds of upcoming constructionand renovation.
“Having that ability to save oiland gas money is so important,”Lantis said. “It’s vital to ourschools.”
Savage schools working on improvements‘These are improvementsthat have been needed tobe made for a while now.’
Dan LantisSavage superintendent of schools
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 13
Richland County oil and gas revenue comparison2004 through third quarter 2010
Fiscal Year QuarterTotal Revenue Collected
Richland Co. Contributions
Money retained by state To all counties To Richland County To RC County Gov.
2004-2005 2004 1 $23,434,182 $4,182,454 $12,122,070 $11,312,111 $1,922,674 $883,4692 $27,054,589 $5,214,936 $14,387,152 $12,667,437 $2,397,309 $1,101,5633 $30,127,979 $6,396,731 $16,083,639 $14,044,340 $2,940,667 $1,351,2364 $34,907,380 $7,959,139 $18,676,177 $16,231,204 $3,718,684 $1,708,735
Total $115,524,130 $23,753,260 $61,269,038 $54,255,092 $10,979,334 $5,045,0032005-2006 2005 1 $35,966,557 $9,448,140 $19,254,625 $16,711,932 $4,354,548 $2,000,915
2 $39,884,873 $11,647,001 $21,476,521 $18,408,352 $5,441,917 $2,500,5613 $50,429,199 $15,414,443 $27,252,528 $23,176,671 $7,201,625 $3,309,1474 $55,236,648 $16,590,752 $29,545,521 $25,691,127 $7,751,196 $3,561,675
Total $181,517,277 $53,100,336 $97,529,195 $83,988,082 $24,749,286 $11,372,2982006-2007 2006 1 $48,159,165 $16,600,568 $25,889,308 $22,269,857 $7,902,611 $3,631,250
2 $52,582,180 $19,618,325 $28,604,000 $23,978,180 $9,312,660 $4,279,1673 $56,014,548 $22,271,286 $30,035,690 $25,978,858 $10,579,532 $4,861,2954 $48,565,918 $18,925,596 $26,238,649 $22,327,268 $8,984,220 $4,128,249
Total $205,321,811 $77,415,775 $110,767,647 $94,554,163 $36,779,023 $16,899,9612007-2008 2007 1 $50,196,265 $19,944,495 $27,092,740 $23,103,525 $9,467,418 $4,350,279
2 $58,529,455 $23,159,499 $32,135,779 $26,393,676 $10,987,382 $5,048,7023 $62,909,112 $26,551,704 $34,206,734 $28,702,378 $12,604,188 $5,791,6244 $74,131,464 $31,512,083 $40,133,249 $33,998,215 $14,958,732 $6,873,538
Total $245,766,296 $101,167,781 $133,568,502 $112,197,794 $48,017,720 $22,064,1432008-2009 2008 1 $83,895,426 $34,180,335 $45,166,426 $38,728,999 $16,225,404 $7,455,573
2 $106,200,438 $40,834,000 $57,286,806 $48,913,632 $19,383,931 $9,800,8953 $96,500,034 $44,932,553 $51,997,854 $44,502,181 $21,329,479 $8,906,9164 $44,814,568 $18,589,308 $23,982,318 $20,832,250 $8,824,339 $4,054,784
Total $331,410,466 $138,536,196 $178,433,404 $152,977,062 $65,763,153 $30,218,1682009-2010 2009 1 $32,361,772 $13,472,942 $17,305,188 $15,056,584 $6,395,600 $2,938,778
2 $42,253,260 $18,992,172 $22,809,243 $19,444,018 $9,015,580 $4,142,6593 $45,954,851 $20,723,320 $24,810,898 $21,143,953 $9,837,360 $4,520,2674 $52,225,534 $22,798,486 $28,134,680 $24,090,855 $10,822,510 $4,972,943
Total $172,795,417 $75,986,920 $93,060,009 $79,735,410 $36,071,050 $16,574,6472010-2011 2010 1 $54,596,665 $23,703,734 $29,330,866 $25,265,798 $11,252,155 $5,170,365
2 $50,468,660 $22,181,042 $27,187,049 $23,281,611 $10,529,340 $4,838,2323 $49,811,109 $22,007,129 $26,832,217 $22,978,892 $10,446,791 $4,800,301
Total $154,876,434 $67,891,905 $83,350,132 $71,526,301 $32,228,286 $14,808,898GRAND TOTAL $1,407,211,831 $537,852,173 $757,977,927 $649,233,904 $254,587,852 $116,983,118
Tappin’ the Bakken spring edition14 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Williston Facility424 47th Street WestWilliston, ND 58801
701-572-2768
• Rotary Pressure Control Devices
• Drilling Rental Tools
• Automatic Torque Control Systems
• Tubular Inspection & Hard Banding Services
• Impact Tools
• Wellbore Departure Systems – Open Hole & Cased Hole
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 15
equipment so emissions are as minimalas possible.
The source testing department has var-ious highly-technical, cutting edge tech-nology tools used to measure the trueemissions of oil field rigs and equip-ment. Bison has recently added a FLIRinfrared-imaging camera that detects gasleaks to aid companies in protecting theenvironment while helping improve prof-its by keeping more product in thepipeline.
“We’re here so the impacts are the ab-solute minimal,” Gallo said.
The ambient monitoring departmentrecently worked with the Montana De-partment of Environmental Quality toset up a 24/7 operational ambient air me-teorological tower 17 miles northwest ofSidney deep in the Elm Coulee field ofthe Bakken formation.
“It measures the air quality so that wecan constantly be aware of what the actu-al industry is emitting,” Gallo said,adding that ambient air is considered theair people breath. So far, it’s found mini-mal impact from oil production, evenwith it being in the heart of the oil activi-ty. “Air quality is still wonderful,” he not-ed. “This ambient monitoring station hasshowed that the air quality impact is well
under the acceptable levels.”Bison Engineering has worked in Mon-
tana, North Dakota, South Dakota andWyoming for more than 10 years. It’s be-come more involved in the oil play since2006, though it’s been around for 31 years.
“We’re very busy, very busy here,” Gal-lo said. “We’re currently working wellover 1,000 sites in Montana and NorthDakota.”
Company employees say they hope itspractices, when done correctly, will helpthe environment. “The industry’s envi-ronmental rules aren’t the same as theywere 50 years ago. It’s highly scrutinizedand regulated. The oil and gas companiesunderstand they need to do the rightthing and be a good neighbor to makesure they’re as environmental friendly aspossible. They’re working hard to makesure they’re in compliance,” Gallo said.
Comprised of mostly Montana natives,Bison invests both personal and financialinterests in protecting the environmen-tas it ensures a good quality of life whilehelping the oil industry move forward inthe process to develop, thereby helpingimprove the economy.
“It’s just a matter of us working hard,promoting the industry and doing ourbest to ensure minimal environmentalimpacts,” Anspach said.
Bison: Company working at more than 1,000 sitesFROM PAGE 11
SUBMITTED
Bret Gallo, project engineer, at a tank battery in the Bakken.
Since 1972
Williston, North Dakota701-774-2436 • Fax 701-774-2440
Prairie Petro-Chemof America, LLP
Serving thearea’s oil field &trucking needs
since 1978
PETERBILT OF WILLISTON4623 2nd Ave. W. Williston • PHONE 774-0225 • Toll Free 1-888-894-3511 • Tim Soiseth, Mgr.
TIMOTHY PATRICK FURLONGVICE PRESIDENT801.694.1085
t [email protected] BASIN OFFICE
925 Basin AvenueP.O. Box 2356
Bismarck, ND 58502701.751.3141
OFFICES ALSO IN UTAHAND NEVADA
Tappin’ the Bakken spring edition16 SUNDAY, MAY 1, 2011 SIDNEY HERALD
A COMMITMENT TOQuality
Brad A. McCamy Garth H. Sjue *Jennifer M. Nasner * Kirsten M. Sjue *
Fred C. Rathert * Daniel J. Vondrachek II Kent Reierson
*Also licensed in Montana
Williston Contacts
North Dakota Offices:
111 East Broadway, P.O. Box 1206,
Williston, ND 58802-1206 • 701-572-2200
Bismarck, ND • 701-223-6585
Montana Offices:
Billings, MT • 406-252-3441
Bozeman, MT • 406-556-1430
Helena, MT • 406-449-4165
Kalispell, MT • 406-752-6644
Missoula, MT • 406-523-3600
www.crowleyfleck.com
Owners:Mark Urlacher
Cell: 406-480-3066Jake Urlacher
Cell: 406-480-9133
equipped with diesel fired hot boxes, air dryers and Hydraulic. winch and hose reels
Power Swivels
NorthernStates
FishingTools
406.433.5720 ~ fax: 406-433-8080 ~ 2903 Red River Dr. ~ P.O.Box 108, Sidney, Montana
Northern States Fishing Tools Company, Inc.
Will deliver to your location,Available 24 hours a day
BOP and Fishing Tools
Bowen 2.5
also available for all your oil field needs
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 17
Young company develops new fracturing technology; seeks jobs in Bakken
SUBMITTED
GasFrac Energy Services is the only company using liquified petroleum gas rather than water.SEE TECHNOLOGY | PAGE 19
BY LOUISA BARBERSIDNEY HERALD
In an area where water has become aprecious commodity, oil companies willeventually start looking for alternativesto traditional hydraulic fracturing.
In fact, they already have. There’s abrand new stimulation technology usingliquified petroleum gas rather than wa-ter, and it’s only been around a few years,though it’s slowly gaining recognition.Canadian-based GasFrac Energy Ser-vices Inc. is the only company offeringthe technology.
“We haven’t seen our technology doless than conventional fracturing,” AudisByrd, COO for U.S. operations, said. Gas-Frac’s LPG fracturing process utilizes agelled LPG product containing a mixtureof propane and butane already abundantin the formation. The LPG is miscible inoils and mixes, thinning the oil, makingthe oil easier to recover. And since theLPG weighs half as much as water, thecompany claims the flow back is muchbetter than with conventional fluids.The company uses chemistry to in-crease the viscosity of the LPG liquid
Industrial Equipment
I.E.S.S.Sales & Service, Inc.Just North of Williston
Located behind OK Fuel StopNorth Williston
314 42nd St. West, Williston701-572-2393
www.iessinc.com
Agriculture, Oilfield, Natural Gas, Industrial• Engines • Pumps • Compressors • Generators
• Construction Equipment • Industrial Machine Shop & much more
We Carry:•New Steel •Aluminum •Stainless Steel
•Misc. Piano Hinges •Weld on Hinges, Latches
We Have:•Press Brake •Shear
•Auto Feed Band Saw•Plasma Table •Piranha Iron Worker
NEW • 225,000 lb. Pull Tester• Any Size 1/8” to 1-3/8” Wire Rope Assemblies
• Grade 100 Chain Assemblies • 800 Ton Press for Wire Rope Assemblies
• Grade 70 Load Chains and Binders• Winch Lines for Trucks
Tappin’ the Bakken spring edition18 SUNDAY, MAY 1, 2011 SIDNEY HERALD
into a molasses like fluid totransport the proppant (sand orceramic particles) into thereservoir where the fluid breaksback to a very thin base fluidviscosity leaving the proppant
behind in the reservoir. Typical-ly 70-80 percent of the LPG is re-covered in the first week.
“We’re doing the same techni-cal process as conventional frac-turing except we’re doing itwith a very thin hydrocarbon,”Byrd said.
LPG occurs naturally in oil
and gas reservoirs, so the mix-ture won’t damage the forma-tion. It’s also 100 percentreusable where water isn’t.Once water is used for fractur-ing, it becomes contaminatedwith salts, minerals, hydrocar-bons and other chemicals neverto be used again unless treated.
And with such demand for wa-ter in the MonDak region, thefracturing process can be seenas wasting an essential re-source. It takes millions of gal-lons of water to frack wells.Quantities of LPG needed forfracturing can be lower.
This technology provides away to fracture stimulate oiland gas wells with no water. “Weare taking a product that is pro-duced from the reservoir back tolocation and using it to stimu-late the reservoir to producemore oil and gas,” Byrd said.The oil and gas companies insome cases can flow the frackfluid back down the gas salesline to a gas plant where it canbe recycled. Its light weight re-duces trucking and can reduce
the need for flaring to recoverthe frack fluids, which “we don’twant to see.” No minerals orsalts are recovered with theLPG.
“We’re trying to work in areaswhere we can send the LPG
down the sales line, capture itand reuse it. Using a frack fluidthat is produced from the reser-voir and recycling the fluidmakes the oil and gas industrymore sustainable,” he added.
Byrd said his company is
highly interested in findingwork in the Bakken, havingdone jobs in Alberta, Canada.But the 5-year-old business justbegan its American operations.
Proud to add a huge part to the economyof Montana and North Dakota
Drilling andProduction
Sidney406-482-4000
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 19
Technology: Quantities of LPG needed for fracturing in Bakken could be loweredFROM PAGE 17
‘We’re very small, butwe’re getting a lot of
attention because of thewater issues.’
Audis ByrdGasFrac Energy Services
SEE COMPANY| PAGE 21
Comparison of Fracturing Fluids Properties
Densitykg/m3
ViscositymPa*s40 C
SurfaceTension
dynes/cm
Water
1,000
.657
72.8
Frac-Oils
840 - 740
1.4 - 0.5
21.8
Methanol
792
0.397
22.7
LPG-Propane
510
0.083
7.6
Tappin’ the Bakken spring edition20 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Stephen C. Bowman, President Victor J. Lawson, Vice-President Daryl Sorenson, Operations ManagerCell: (406) 765-7954 Cell: (406) 765-7687 Cell: (406) 765-8563
Ole Hagen, District Manager, Cell: (701) 263-5571 • John White, Lead Driver, Williston, (701) 770-6469 • Steve Hagen, Dispatcher/Assistant, Cell: (701) 871-1144
212 Cactus Street, P.O. Box 567, Plentywood, MT 59254
Phone: 406-765-1376 • Fax: 406-765-2322 • Toll Free: 1-800-376-1376
Westhope/Williston/Tioga, ND • Phone: (701) 245-6423 or 6663
Diamond B Oilfield Trucking, Inc.CCrruuddee OOiill TTrraannssppoorrttaattiioonn,, HHiigghh PPrreessssuurree UUnniittss,, WWaatteerr HHaauulliinngg && TTrraannssppoorrttaattiioonn
Diamond B Trucking, Inc.CCrruuddee OOiill TTrraannssppoorrttaattiioonn
Diamond B
U.S. Sen. Max Baucus, D-Mont., is con-tinuing his push to complete the U.S.State Department’s permit process forthe TransCanada’s Keystone XLpipeline. On April 15, the State Depart-ment began accepting public input on itssupplemental draft environmental im-pact statement.
“I’m pleased that the public input por-tion of the process is moving forward.The Keystone XL pipeline will not onlyhelp provide good-paying jobs Montananeeds, but it will help our families beingsqueezed by rising gas prices,” said Bau-cus, who has worked to cut through thered tape holding up the project. “I willcontinue to monitor this report and theprocess to make sure this important eco-nomic development opportunity gets afair shake. Montana is ready to lead thenation toward energy independence, andI see the Keystone XL pipeline as an im-portant part of that effort.”
Keystone XL is a proposed 1,700-mileoil pipeline from the U.S.-Canadian bor-der in Montana, through Cushing, Okla.,
to refineries on the U.S. Gulf Coast. Thepipeline will be a significant economicdriver in Montana, creating thousands ofnew jobs during construction, and withlocal project spending expected to beover $400 million. As result of thepipeline, state and local revenues are ex-pected to increase $8.9 million.
The public will have 45 days to com-ment on the Supplemental Draft EIS. TheU.S. Department of State expects tomake a decision on whether to grant or
de-ny
Baucus continues fight for Montana energy jobs
‘Montana is ready to lead thenation toward
energy independence.’
Max BaucusU.S. senator
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 21
The Solutions Company Serving the Rocky Mountain Region with Experience, Integrity and Pride.
Nathan Stortz: 406-939-4716Trevor McCormick: 406-939-3805
Drilling Fluids • Completion FluidsDewatering Units • Dust Control
Jerry Thompson Ken Kain
• Industrial Radiography
• Magnetic Particle Testing • Ultrasonic • Penetrant TestingOffice: 701-572-1589 • P.O. Box 1591 • Williston, ND 58802-1591
PJ’s Auto Glass &Radiator
• Rock chip repair• Auto glass replacement• Radiator repair and sales• Air conditioning condensers• Flat glass cutting for trucks and tractors• Mobile service when available
Philip and RobynJohnson
Insurance approvedFree pick-up and delivery
406-798-3686Sidney • Cell 489-3686
The company, which held anopen house at its United Statesheadquarters in Texas April 6,started with one frack crew,grew to two, four and plans tobe up to eight crews by the endof 2011 with plans to continuegrowing in 2012.
“We’re very small, but we’regetting a lot of attention be-cause of the water issues,”Byrd said. “Plus, in some ar-eas the wells stimulated withLPG produce two to threetimes more than the wellsfracked with conventionalmethods.”
GasFrac claims to have suc-cessfully completed 700-plustreatments for more than 50clients, the deepest up to12,150 feet. Its largest job was a1 million-pound multi-stagefrack in a horizontal well, andthe highest treating pressurewas 13,200 psi.
Byrd says GasFrac is inter-ested in the Bakken becausethey believe their productworks well in oil formations.Its low hydrostatic pressure
should also suit the older east-ern Montana formations aswell. But potential clients havebeen hesitant to try theprocess. For one, the price of agallon of LPG is much moreexpensive than a gallon of wa-ter – cents for water versusdollars for the LPG. Compa-nies using water and meetingtheir desired return on invest-ment are reluctant to try amore expensive product.
Using LPG requires compa-nies to put more money upfront, but in the long run, theycould see their returns double.Byrd says when comparingtheir fracturing process toconventional (the costs forfrack tanks, ponds, watertransfer, heating water in win-ter, water disposal, truckingand cost of the water), the twoare similar if the LPG can becaptured and recycled. “Every-body’s skeptical of new tech-nology,” he said. “They likethe idea and understand theconcept but think, ‘Am I will-ing to spend the money to findout if I’m right?’ ”
The company would like toget enough work in theBakken to set up shop in theWilliston Basin and insiststhat it will work wherever itcan find business to grow andfulfill the needs of its clients.
Byrd calls this new fracking
process a disrupted technolo-gy because it changes a lot ofthe ways businesses do theiroperations. He’s certain, too,that waterless fracturing isthe way of the future. “We’vegot a real good product,” hesaid. “We are using a product
that came out of the reservoirto get more oil and gas fromthe reservoir, making our in-dustry more sustainable forthe future.”
Company: Officials hope to do business in Williston Basin, fulfill needs of its clientsFROM PAGE 19
SUBMITTED
GasFrac claims to have successfully completed 700-plus treatments for more than 50 clients, the deepest up to12,150 feet.
Enerplus is a leading producer of Bakken Oil in Montana. We
believe that it takes more than technology and equipment to
unlock the resources vital to North America's energy future.
It takes the teamwork of our employees, service
providers and strong relationships with our landowners
and the community.
www.enerplus.com
COMMUNITY, STEWARDSHIPAND ENGAGEMENT
Tappin’ the Bakken spring edition22 SUNDAY, MAY 1, 2011 SIDNEY HERALD
LARENE GRONDAHL | SIDNEY HERALD
A man/trailer camp in Alexander, N.D., during the winter.
PROVIDED BY WWW.ENERGYINDEPTH.ORG
Evaluations & Drilling Intervention
Tubular Running Services
Rental & Fishing Equipment
Wellhead Systems701.572.6714
Artificial Lift Systems
Corod Services701.774.1030
Wireline ServicesOpen Hole, Cased Hole and Pipe Recovery services
701.774.3045
Completion Services701.774-0059
Flow Testing701.420.9740
www.weatherford.com
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 23
Tappin’ the Bakken spring edition24 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY LOUISA BARBERSIDNEY HERALD
Demand for sand these days is incred-ible. Drive by KC Sandcastle in Sidney,and one can see. At any given time,trucks waiting in line for their turn ei-ther to load or unload the much treas-ured sand.
“It seems every year it’s just gottenbusier and busier,” office manager JoeSmith said in the bustling office. Thesand business is booming almost asmuch as the oil industry itself. KCSandcastle sells, stores and deliverssand used in hydraulic fracturingthroughout the Williston Basin.
Spending an hour at the company’soffice is plenty of time to see how busythe sand business can be. There ishardly a second where a truck wasn’toccupying the space below the sand ele-vator, ready to haul the to-be proppantaway to a site, or a truck waiting forseveral 3,000-pound bags of sand to beloaded. They occupy massive amountsof space at one time waiting in line. De-mand is high. It takes 1-8 millionpounds of sand per fracture treatment;1 million is considered small thesedays, however.
KC Sandcastle carries roughly 20-25different types of sands desirable tocustomers’ demands. Ceramics, whichlook more like beads, are shipped infrom Russia, China and Brazil. Andthen there’s natural sand, railed andtrucked in from throughout the UnitedStates. The company receives dailyshipments.
“It’s constantly coming in, and it’s
leaving as fast as it comes in,” Smithsaid. KC Sandcastle has become a 24-7operation as of this year. At times up to60 trucks wait to load or unload bulksands. “Millions upon millions ofpounds of sand are being movedthrough here,” co-owner Cole Wirthsaid.
Smith notes there’s a storage short-age for sand in the MonDak region. Thecompany possesses approximately 9million pounds worth of bulk storageand 12 million pounds of bag storage. Itoperates a storage facility in Culbertson
and utilizes the Kringen ConstructionInc. warehouse. “We almost can’t growfast enough,” he said. “There’s a realhigh demand.”
KC Sandcastle’s growth has been doc-umented over the last four years. Wirthand co-owner Keltz Hall started thecompany with just one truck in 2007,then increased to 15 trucks in 2008 andis now operating 45 trucks. It also oper-ates two rails in Sidney and Culbertsonwith another on the way. It recently
purchased property north of Sidney tohelp expand and deal with increasingtruck congestion. The company nowemploys between 50 and 55, and theyexpect a lot of change in the comingyears.
“It’s got its ups and downs,” Wirthsaid of his business, “but it’s early inthe spring. This year I would expect al-most to double in size.”
KC Sandcastle meeting frack demands in Bakken
LOUISA BARBER | SIDNEY HERALD
Trucks waiting in line at KC Sandcastle.
LOUISA BARBER | SIDNEY HERALD
Different types of sand used in fracturing.
LOUISA BARBER | SIDNEY HERALD
Sand being loaded into a truck.
Phone: 701-572-0843
Fax: 701-572-0579
Toll FREE: 1-877-704-0231
We’ve got the Oil Field Suppliesyou need, where you need them.
e-mail: [email protected]
Sidney Office406-488-8706
Stanley Office701-628-8706
• Down hole sucker rod pumps• Gates hydraulic hoses & belts
• Norris sucker rods & fishing tools• Line pipe • Tubing • Fittings
• Balon ball valves • Tubing anchors• Fitting trailers for tank battery hook-ups
8221 62nd St. NW (Old Hwy 2) Stanley, N.D. • 701-628-8706
1511 South Central Ave., Sidney, MT • 406-488-8706
From Sidney to StanleyTappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 25
Hamm & Phillips Service Company...... over 40 Years of Servicein the Oil & Gas Industry
Hamm & Phillips Service Co. has been servicing the oil &gas industry since 1968. The company’s corporate head-quarters are located in Enid, Oklahoma. The companyestablished operations in Marmarth, North Dakota in 1995and have since opened facilities in Sidney, Montana andDickinson, North Dakota. They are proud to be a part of thegrowing oil and gas industry in the Williston Basin andBakken Shale.
Ron Boyd, President of Hamm & Phillips, has led the company through the cyclical nature of the oil industry since1995. He contributes the continued success of Hamm &Phillips to the hardworking and dedicated employees.Quoted from Mr. Boyd “We can buy trucks, but peoplebuild companies.”
Hamm & Phillips looks forward to many more years oftaking care of our customers to which we have the privilegeto serve.
Service and EquipmentÙ Vac & Gear Pumps Ù Bobtail Ù Hot Oiler TrucksÙ Frac Tanks Ù Winch Trucks Ù Super Heaters Ù Water Filtering
Marmarth, North Dakota701-279-5522
LocationsSidney Dickinson
Montana North Dakota406-798-3031 701-483-9380
Tappin’ the Bakken spring edition26 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Brigham Exploration Company an-nounced that its Sorenson 29-32 #2HBakken well produced a North DakotaBakken record 5,330 barrels of oil equiv-alent during its early 24-hour peak flowback period. Brigham also announcedthat its Johnson 30-19 #1H Bakken well,which is located in Richland Countyproduced a Montana Bakken record ear-ly 24-hour peak flow back rate of approx-imately 2,962 barrels of oil equivalent.
Brigham announced the completion offour additional North Dakota Bakkenwells and, as a result, has completed 56consecutive long lateral high frac stagewells in North Dakota at an average ear-ly 24-hour peak flow back rate of approx-imately 2,884 barrels of oil equivalent.Finally, Brigham provided an update onits drilling and completion activities inthe Williston Basin.
RECORD NORTH DAKOTA BAKKEN WELLBrigham announced that the Sorenson
29-32 #2H produced a North DakotaBakken record 5,330 barrels of oil equiv-alent (4,661 barrels of oil and 4.01 MMcfof natural gas) during its early 24-hourpeak flow back period. The Sorenson 29-32 #2H, which is located in Brigham'sRoss project area in Mountrail County,North Dakota, supplants Brigham'sSorenson 29-32 #1H as the record initialrate Bakken well. To date, based on pub-lically available information, Brighamhas the four highest initial rate Bakkenwells and seven of the top 10 initial rateBakken wells in the Williston Basin.
The Sorenson 29-32 #2H representsBrigham's first infill well completion inits Ross project area and was drilled, on
average, approximately 1,720' from theSorenson 29-32 #1H well, which was com-pleted in April 2010. The Sorenson 29-32#2H was completed with 38 frac stages.
The Sorenson 29-32 #2H and the Cvan-cara 20-17 #1H, which produced approxi-mately 4,402 barrels of oil equivalentduring its early 24-hour peak flow backperiod, were the first wells drilled andcompleted using Brigham's smart paddesign. The smart pad design allowswells to be drilled from the same pad andsimultaneously fracture stimulated. It isestimated that approximately 10 percentto 20 percent in cost savings can beachieved with implementation of smartpad drilling and completion techniques.
RECORD MONTANA BAKKEN WELLBrigham announced that the Johnson
30-19 #1H, which is located in RichlandCounty, produced approximately 2,962barrels of oil equivalent (2,684 barrels ofoil and 1.67 MMcf of natural gas) duringits early 24-hour peak flow back period.The well was completed with 36 fracturestimulation stages, and based on publi-cally available information, is the recordinitial rate Bakken well in Montana.
NORTH DAKOTA OPERATED RESULT UPDATEBrigham has now completed 56 consec-
utive long lateral high frac stage wells inNorth Dakota with an average early 24-hour peak flow back rate of approxi-mately 2,884 barrels of oil equivalent.The following table updates Brigham'sNorth Dakota long lateral, high fracstage well results since its last opera-tional update:
Brigham announces record completions
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 27
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BY LOUISA BARBERSIDNEY HERALD
A Salt Lake City, Utah, company an-nounced plans to construct, own and op-erate a large multi-user rail terminal inTrenton, N.D., to assist the expansive oiland gas industry in the MonDak region.
Kent Avery, vice president of businessdevelopment for Savage Services, toldmembers of the MonDak Energy Al-liance during a public meeting duringFebruary in Williston, N.D., the termi-nal, known as Trenton Railport, will beserved by BNSF Railway. The companyplans to bring large-scale rail service tothe Bakken with oil field-related materi-als such as tubular, frac sand and otherstrategic materials, including the capa-bility to load and ship unit trains ofcrude oil.
Company officials believe the Bakken’soil and gas resource potential is signifi-cant and strategic in strengtheningAmerica’s energy independence. Savage,a North American giant in providingservices to electric power generation,coal mining, oil refining, chemical andClass I railroad customers, owns and op-erates large terminals for coal, petrole-
um coke, sulphur, chemicals and othercommodities; system-based transporta-tion-truck, rail, barge and vessel movingmore than 50 million tons annually ofcoal, coke, waste coal, waste ash and sul-phur.
It also provides on-site operations andmanagement services for large powerplants and oil refiners. Savage has 145 op-erations in 36 states and five Canadianprovinces.
Avery said the terminal will be a multi-user facility fully operational by thefourth quarter of 2011. Savage Servicessecured a 270-acre site on which theTrenton Railport will be built in coopera-tion with Yellowstone Ethanol, LLC. Thefacilities will include rail infrastructure,open space for oil field materials storage,and receiving capability for frac sandand other materials. In support of itsTrenton Railport customers, Savage in-tends to provide a total service model byproviding railcars and a complete logis-tics package.
Local officials have expressed supportfor the project, which is expected to em-ploy more than 150 people in various ca-pacities during construction of the ter-minal, and anticipates using local con-
tractors wherever possible. Once opera-tional, Trenton Railport employment ona steady state basis is expected to be be-tween 40 and 60 people. Recruiting andhiring activities are expected to begin inTrenton during the first quarter of 2011.
Also during the MonDak Energy Al-liance meeting, attendees listened as RonRauchenberger, North Dakota Gov. JackDalrymple’s chief of staff, ran down a“to-do” list proposed by the governor’sadministration to assist in the Bakken’sdevelopment.
Rauchenberger said the governor hasbeen “very attentive” to issues in west-ern North Dakota, believing the chal-lenges facing the state are ones that oth-er states wish they could have. Amongthe proposed plans is an extensive infra-structure improvement of highways andcounty roads regularly used by the oiland gas industry. Officials from the gov-ernor’s office toured and met with may-ors and county commissioners in Stan-ley, N.D., Tioga, N.D., Watford City, N.D.,and Dickinson, N.D., to listen to publicinput. “That input helped us tremen-dously. It really did,” he said.
From those meetings Rauchenbergersaid the governor has proposed an infra-
structure plan costing just short of $1billion. Also, $100 million has been pro-posed to go to the oil impact fund as wellas $247 million to oil and gas countiesand another $200 million or so to high-ways in oil and gas counties. The gover-nor’s office has also suggested a $900 mil-lion tax deduction on tax payers.
“We think the people of North Dakotadeserve it. We think we can do it, wethink we can sustain it,” he said.
Rauchenberger received a round of ap-plause for taking a stance against thefederal government’s involvement to reg-ulate water safety for frac jobs, specifi-cally at the Environmental ProtectionAgency. He said the governor does notwant the federal government to regulateit. “We think it’s wrong. We don’t agreewith them,” Rauchenberger said. “Ourstate can regulate our state very well.”
Rauchenberger added that in dealingwith the housing crisis in North Dakota,he had met with Halliburton officialswho look to do a $25 million project forpermanent housing around Williston inaddition to the man camp brought toWilliston from the 2010 Winter Olympics.
Officials look ahead to rail terminal project in Trenton
4th Quarter 2009 1st Quarter 2010 2nd Quarter 2010 3rd Quarter 2010County Collections Distributions Collections Distributions Collections Distributions Collections DistributionsBig Horn $892,590 $402,112 $1,090,243 $491,155 $755,848 $340,510 $709,691 $319,716Blaine $1,131,455 $660,656 $1,258,147 $734,632 $989,007 $577,481 $875,808 $511,384Carbon $906,947 $437,783 $987,404 $476,620 $869,281 $419,602 $1,176,958 $568,118Carter $67,798 $34,001 $58,107 $29,141 $54,488 $27,326 $49,895 $25,022Chouteau $116,759 $67,884 $119,768 $69,633 $93,860 $54,570 $77,509 $45,064Custer $4,499 $3,128 $9,022 $6,273 $5,760 $4,005 $4,231 $3,005Daniels $28,967 $14,718 $9,688 $4,923 $9,848 $5,004 $3,899 $1,981Dawson $687,401 $328,509 $709,361 $339,004 $666,321 $318,435 $642,174 $306,895Fallon $11,832,728 $4,944,766 $11,811,880 $4,935,004 $11,208,299 $4,682,827 $10,873,902 $4,543,116Fergus $2,016 $1,395 $2,907 $2,011 $2,150 $1,487 $2,018 $1,396Garfield $18,652 $8,573 $14,558 $6,691 $24,326 $11,180 $17,012 $7,819Glacier $756,366 $444,970 $957,023 $563,017 $751,639 $442,189 $755,751 $444,569Golden Valley $10,937 $6,384 $11,059 $6,455 $6 $4 $3,153 $1,840Hill $592,343 $382,121 $652,478 $420,913 $467,030 $301,281 $417,749 $269,490Liberty $302,764 $175,422 $320,790 $185,866 $295,120 $170,992 $293,191 $169,875McCone $18,988 $9,479 $12,684 $6,332 $6,446 $3,218 $11,031 $5,507Musselshell $231,914 $112,803 $280,576 $136,472 $279,358 $135,880 $280,148 $136,264Park $0 $0 $75 $38 $0 $0 $0 $0Petroleum $17,406 $8,362 $45,554 $21,884 $32,511 $15,618 $29,513 $14,178Phillips $1,278,649 $690,726 $1,446,181 $781,227 $1,120,521 $605,306 $1,167,797 $630,844Pondera $178,176 $96,678 $190,224 $103,216 $201,738 $109,463 $185,993 $100,914Powder River $858,372 $522,749 $891,124 $542,695 $905,085 $551,197 $888,451 $541,067Prairie $128,661 $51,953 $133,605 $53,950 $119,828 $48,386 $119,339 $48,189Richland $22,798,486 $10,822,510 $23,703,734 $11,252,155 $22,181,042 $10,529,340 $22,007,129 $10,446,791Roosevelt $2,327,889 $1,064,067 $2,367,503 $1,082,186 $2,314,225 $1,057,832 $2,028,737 $927,336Rosebud $516,747 $203,237 $590,703 $232,324 $564,634 $222,071 $537,669 $211,465Sheridan $2,655,139 $1,274,212 $2,629,273 $1,261,788 $2,465,423 $1,183,156 $2,485,505 $1,192,794Stillwater $27,926 $14,943 $36,676 $19,625 $16,745 $8,960 $42,796 $22,900Sweet Grass $1,887 $1,156 $20,077 $12,295 $9,996 $6,122 $59,888 $36,676Teton $83,353 $38,426 $93,729 $43,209 $90,387 $41,668 $93,390 $43,053Toole $813,140 $468,464 $893,290 $514,625 $829,258 $477,735 $832,226 $479,446Valley $281,615 $144,835 $331,106 $170,288 $296,426 $152,452 $273,278 $140,547Wibaux $1,311,351 $644,667 $1,518,083 $746,290 $1,562,252 $768,003 $1,566,466 $770,075Yellowstone $19,613 $9,167 $29,659 $13,862 $17,784 $8,312 $24,726 $11,557Board of Oil and Gas $461,154 $0 $474,270 $0 $436,936 $0 $443,066 $0Oil, Gas & Coal Natural Resource Account $862,846 $0 $896,099 $0 $825,085 $0 $830,927 $0TOTALS $52,225,534 $24,090,856 $54,596,661 $25,265,799 $50,468,663 $23,281,612 $49,811,016 $22,978,893
Richland County leads state in quarterly distributionsTappin’ the Bakken spring edition28 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Information provided by Richland County Treasurer
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 29
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Tappin’ the Bakken spring edition30 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY HARRY LIPSIEASIDNEY HERALD
A commitment to the MonDak region.That’s what ConocoPhillips has shownrecently with the construction of a newoffice in Sidney to add additional spacefor its exploration and production oper-ations department.
The corporation has been active inthe Williston Basin for decades, but hasbeen involved in Bakken formationplay for the past four or five years.
“We believe the Bakken is an ex-tremely template for us,” Jim Lowry,
ConocoPhillips director of communica-tions and public affairs, said. “We ex-pect the MonDak region to be a strong
business area in 2011 and beyond.”With 460,000 net acres currently in-
vested in the Bakken formation, thecompany has identified approximately1,700 drilling opportunities. In the Mon-dak region, ConocoPhillips has officesin Sidney and Dickinson, N.D., with 23employees in the area. An estimated 100workers on an average day are contract-ed by the company in the Bakken onworkover rigs, oil and water haulers,construction crews and drilling opera-tions.
“We expect to invest approximately$300 million into the Bakken in 2011,”
Lowry said. “We’re committed to theformation.”
The company is actively drilling inthe Bakken with between 55 to 70 wellsexpected to be drilled this year with sixdrilling rigs running right now. Thecurrent well count in the formation is160.
2011 is expected to be a big year forConocoPhillips with an expected 40 per-cent production hike to a total of 20,000barrels of oil equivalent per day.
“The company is excited about it fu-ture in the Bakken formation,” Lowrysaid.
‘We expect to investapproximately $300 million into
the Bakken in 2011.’
Jim LowryConocoPhillips director of communications
HARRY LIPSIEA | SIDNEY HERALD
The new ConocoPhillips office in Sidney.
ConocoPhillips makes large commitment to area
American Eagle Energy provides updates on Bakken activityAmerican Eagle Energy Inc. is pleased to announce the
following updates on its Williston Basin Bakken projects.Hardy Field, SE Sask., Canada: The Hardy 7-9 discov-
ery well, in which the company owns a 50 percent workinginterest, was returned to production on Feb. 17, after re-placing the rod string. The well is currently producing ap-proximately 40 barrels of oil per day. Plans for drilling anoffset well, the Hardy S 1A4-16-4B4-9-4-21W2, are proceed-ing with a spud date targeted for May. This will be the firstdevelopment well on the company’s 4,640 acre leasehold inthe area.
Spyglass Project – Non-operated Drilling Plans, Di-vide County, N.D.: SM Energy Company spud the Bagley4-30-163N-100W well, targeting the Three Forks formation,on April 3. The well is designed to develop reserves in a1,280 acre spacing unit comprising sections 18 and 19 of
that township. The company owns a 3.125 percent workinginterest in the Bagley well and a 19 percent working inter-est in the spacing unit directly north of the well. The paceof development in the area has accelerated recently withthe successful completion of several offset wells in T163N-R100W that have averaged over 500 BOPD each for theirfirst 30-day production period. SM Energy is expected todrill at least three more wells in the area before year endin which American Eagle will own working interestsranging from 8 percent to 19 percent.
Spyglass Project – Operated Drilling Plans, DivideCounty, N.D.:
The company has begun work to obtain approval fromstate regulators for up to six 1,280 acre spacing units withthe objective of getting two operated Bakken or ThreeForks formation wells drilled prior to the end of 2011.
These will be the first American Eagle operated wells inthe 8,600 acre Spyglass Project.
American Eagle Energy Inc. is an oil and gas companyengaged in the exploration of petroleum and natural gas.The company was incorporated in Nevada on March 14,2007, to engage in the acquisition, exploration and devel-opment of natural resource properties.
The Private Securities Litigation Reform Act of 1995provides a “safe harbor” for forward-looking statements.Certain information included in this press release con-tains statements that are forward-looking, such as state-ments relating to the future anticipated direction of theindustry, plans for future expansion, various business de-velopment activities, planned capital expenditures, futurefunding sources, anticipated sales growth, potential con-tracts, and/or aspects of litigation.
Williston, ND • 701-572-6783
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 31
Tappin the Bakken spring edition32 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Mitchel l ’s can f ix i t , l i f t i t , haul i t . . .
ONE NATION UNDER GOD
Mitchell’s is a great place to
work!
www.mofsoil.com
BY LOUISA BARBERSIDNEY HERALD
The oil play may be concen-trated in western North Dakota,but that doesn’t mean folks ineastern Montana aren’t seeingany action, nor do experts be-lieve it won’t increase.
“It’s slow, but it’s picking up,”Montana Board of Oil and Gasdirector Tom Richmond said.“We’ve gotten an awful lot of dif-ferent spacing unit requests.”
These requests are needed be-fore wells can be permitted fordrilling. Both Richland and Roo-sevelt counties appear to be get-ting a lot of attention. Since Au-gust 2010, 15 new wells have beendrilled in Roosevelt; 18 newwells in Richland during thesame time.
For Richland, 27 permits arewaiting for drilling. “We’ve got125 dockets for the next hear-ing,” Richmond said. “There’sstill a pretty high level of activi-ty. The board’s business is pick-ing up, and it’s always like thatbefore drilling.”
Ten drilling rigs are in opera-tion in Montana, a far cry fromthe busyness across the state’seastern border, where rigs num-ber more than 150. But if oil de-velopment goes the way indus-try leaders say, drilling shouldcontinue to pick up, comingfrom North Dakota and movinginto northern Richland, Roo-sevelt and Sheridan counties.
There has been increasing in-terest in a shallow gas formationnear Poplar known as JudithRiver where companies haveheaded. The gas play is 1,000 feetdeep. And interest is gainingeven farther west in Glacier andToole counties where companiesare looking to drill for oil.“There’s quite a few wells per-mitted,” Richmond said.
Montana Petroleum Associa-tion executive director DaveGalt said that because the state’soil industry didn’t experienceany additional regulations puton by the Montana Legislature,oil development could rise.
“I expect to see an increase innortheast Montana by this sum-
mer,” he said, “especiallyaround Sidney, Bainville, Cul-bertson, Plentywood.” Two bills,which would have required com-panies to disclose the ingredi-ents used in hydraulic fractur-ing, failed to pass either house,which means the Board of Oiland Gas and the Montana Petro-leum Association will begin col-laborating shortly to create newrules for fracking.
Meanwhile, there haven’t beenmany repercussions from theGolf Coast oil spill a year ago,not yet at least, though activistsare using the incident to justifyactions in other places, said LeeFuller, vice president of govern-ment relations with the Indepen-dent Petroleum Association ofAmerica.
“Any time they talk about thesafety of hydraulic fracking,they say the industry said off-shore drilling was safe, so wecan’t believe them,” Fuller said.“So we’ve seen them bring thatup.”
The problem with that, he not-ed, is onshore and offshore
drilling have different risks, dif-ferent fracking fluids, differentprocesses to drill as a whole.There is concern, however, thatthe federal government wouldtake sweeping authority overpermitting processes, takingstate government out of theequation. That move didn’t gothrough. Fuller said the federalgovernment doesn’t have the ca-pacity, nor the experience orknowledge to do permitting.
“So if you were to suddenlyhave the federal governmentwalk on the state and have noknowledge, the consequence isthe permitting process wouldlikely grind to a halt with nobenefit to the environment,” hesaid. General consensus in theoil industry appears to agree in-dividual state regulation is best.
Oil activity set to increase in Montana during 2011
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 33
310 2nd Ave. NE, Sidney, Montana 433-2403 • www.sidneyherald.com
tappin’ the bakken’spring 2011 edition
Find this section on our website www.sidneyherald.com
The 13th biannual issue
The Sidney Herald’s“Tappin’ the Bakken” is the most informative
and longest running oil section in the MonDak area.
Oil & Gas Revenue Comparison 3rd Quarter 2005 (July-Sept.) 3rd Quarter 2006 (July-Sept.) 3rd Quarter 2007 (July-Sept.) 3rd Quarter 2008 (July-Sept.) 3rd quarter 2009 (July-Sept.) 3rd Quarter 2010 (July-Sept.)Richland County allocations $7.2 million $10.5 million $12.604 million $19,384 million $9.837 million $10.447 millionCounty government $3.309 million $4.861 million $5.792 million $8.907 million $4.520 million $4.800 millionElementary retirement $295,000 $433,761 $516,000 $794,741 $403,332 $428,318High School Retirement $282,000 $414,718 $494,000 $759,850 $385,624 $409,514County Transportation $162,000 $239,097 $285,000 $438,077 $222,324 $236,097Schools $3.152 million $4.631 million $5.517 million $8.484 million $4.306 million $4.572 million
Elementary/H.S. districtsRichey/Lambert $100,299Savage/Savage $12,550.00 $14,831 $18,340 $19,391 $7,571 $10,038Brorson/Sidney $619,550 $961,965 $1.212 million $1.830 million $983,479 $1.026 million
Rau/Sidney $68,659 $108,643 $181,300 $312,935 $195,898 $183,659Lambert/Lambert $1.326 million $1.969 million $2.112 million $3.242 million $1.618 million $1.558 million
Rural District/Sidney $319,978 $436,064 $547,170 $930,533 $476,676 $564,192Brorson/Lambert $5,931 $18,624 $31,337 $36,906 $25,020 $26,941
Fairview/Rural District $432,621 $410,643 $491,163 $737,078 $309,268 $350,225Lambert/Sidney $66,296 $111,139 $126,530 $207,284 $118,823 $124,758
Culbertson/Fairview $19,234 $18,993 $63,933 $119,509 76,468 $79,345Richey/Savage $49,872 $68,599 $100,029 $145,740 $69,993 $67,488Sidney/Savage $3,629 $0 $0 $0 $0 $0
Fairview/Lambert $24,043 $32,948 $45,435 $70,736 $39,000 $48,186Lambert/Savage $146,908 $343,827 $437,782 $600,765 $264,894 $287,262
Culbertson/Sidney $4,196 $24,121 $9,553 $14,616 $7,947 $6,367Lambert/Fairview $52,007 $100,705 $106,788 $149,321 $73,901 $101,196
Culbertson/Lambert $0 $10,711 $13,946 $33,512 $15,901 $16,822Culbertson/Savage $0 $0 $19,722 $34,896 $23,186 $21,339
Oil, gas and natural resources accountOne-third to county government
Richland County $74,000 $96,822 $208,650 $270,569 $126,135 $130,014Two Thirds to incoporated cities and towns
(allocated based on population)Sidney $128,760 $168,533 $365,800 $474,722 $221,431 $226,405
Fairview $19,240 $25,110 $51,500 $66,417 $30,839 $33,624
Richland County oil and gas six-year comparison for third quarter
Information provided by Richland County Treasurer
Tappin’ the Bakken spring edition34 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 35
Office: 406-482-7870 • Toll Free: 1-888-287-7808Dispatch 406-489-2712 • Sidney Mobile: 406-489-2097 or 406-489-0999
Locally owned andoperated since 1988
• QUALITY WORK • Years of experience
For all your vac truck and hot oil truck needs.
Mitchell’s Oil Field ServiceInc. is a construction andtrucking company serving theoil and gas industry in theWilliston Basin of Montanaand North Dakota. Formed in1977, Mitchell’s Oil Field Ser-vice is headquartered in Sid-ney and has offices in Glen-dive, Baker, and Bowman,Killdeer and Watford City, N.D.
The founder of the company,Everett Mitchell, has devel-oped an outstanding manage-ment team and a loyal workforce. Mitchell has been able torecruit and retain his work-force over the years by provid-ing an extensive benefit pack-age for the employees and pro-moting family values.
Mitchell’s Oil Field Serviceprovides the active operatorsin its market (Encore, Conoco-Phillips, XTO, Enerplus, Conti-nental Resources, Tracker,Newfield, Oasis) with con-struction and maintenanceservice for oil and gas produc-tion leases (processing plants,oil tank batteries, lease roads
and gathering lines). The com-pany is on a “first call” basisfor all of its major customers.The trucking division movesand installs pump jacks, andalso provides moving servicefor workover and shallowdepth drilling rigs.
General lease constructionand maintenance work is per-formed on oil and gas produc-tion facilities, such as gas com-pression plants, oil tank bat-teries and gathering lines tothese facilities from the wells.
Mitchell’s Oil Field Servicehas 50 ton and 90 ton cranesalong with 17 ton and 30 tonCherry Pickers that can han-dle any job including erectingpumping units and settingbridge beams.
Through the years,Mitchell’s has been able to ex-pand services to include Baker,Glendive, Bowman, Killdeerand Watford City, N.D., by pur-chasing 10 differentroustabout companies.
Stone Arch Capital, a teamof professionals with a unique
blend of private equity, operat-ing, investment banking andlegal experience bought out
Mitchell’s Oil Field Servicetwo years ago, but kept theMitchell name. Mitchell’s serv-
ices wells in the Bowman, Wat-ford City and Killdeer areas.
Mitchell’s Oil Field Service covers Williston Basin
Mitchell’s trucking division moves and installs pump jacks, and also provides moving service for workover andshallow depth drilling rigs.
Knapp Oil Corporation
David Knapp James Knapp
Leases Minerals Investments
122 2nd Avenue SW
P.O. Box 786
Sidney, MT 59270
Office: 406-482-1502
Fax: 406-482-5836
Tappin’ the Bakken spring edition36 SUNDAY, MAY 1, 2011 SIDNEY HERALD
TThhee JJoohhnn CCrraannee AAddvvaannttaaggee.. .. ..
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LARENE GRONDAHL | SIDNEY HERALD
Enbridge’s operationsEnbridge Pipelines (North Dakota) LLC (“EPND”) owns and operates a 330-mile crude oilgathering and 620-mile interstate pipeline transportation system that gathers crude oil frompoints near producing wells in 36 oil fields in North Dakota and Montana. This system iscommonly referred to as the Enbridge “North Dakota Pipeline System.” The interstate por-tion of the North Dakota system extends in an easterly to southeasterly direction from theEPND Alexander pump station facility in McKenzie County, N.D., and continues to the En-bridge Clearbrook Terminal in Clearwater County, Minn.
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Schlumberger supports the communitiesin Eastern Montana and Western NorthDakota. Call 701-572-8345 for Wirelineor 701-572-8393 for Well Services.
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 37
Tappin’ the Bakken spring edition38 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Hemphill Speedy Trucking, Inc.4942 Hwy 85 S, Williston ND 58801 • 701-577-5650
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FROM THE BUREAU OF LAND MANAGEMENT
Did You Know?There is a good chance if you purchase
property in Montana (and many otherareas in the Rocky Mountain West), youmay not be getting ownership of as muchof the property as you think you are. Anestimated 11.7 million acres of the pri-vate land in the state of Montana is splitestate, meaning the surface land rightsare privately owned and the subsurfacemineral rights are federally owned.
STOCK RAISING HOMESTEAD ACT (SRHA)Why do landowners find themselves in
this situation? It’s largely the legacy ofthe Stock Raising Homestead Act passedby Congress and signed into law by Pres-ident Theodore Roosevelt in 1916. Thislaw allowed a settler to claim 640 acres ofnonirrigable land that had been desig-nated by the Secretary of the Interior as“stock raising” land. At a time whenmineral exploration was beginning to es-calate, the federal government opted tomaintain the mineral rights to the landclaimed under that 1916 law.
The actual language found on a SRHApatent for this mineral reservation is:
“Excepting and reserving, however, tothe United States all the coal and otherminerals in the lands so entered andpatented, together with the right toprospect for, mine and remove the samepursuant to the provisions and limita-tions of the Act of Dec. 29,1916. (39 Stat.,862).”
WHAT DOES “OTHER MINERAL” MEAN?The term “other minerals” includes
(but is not limited to):leasable minerals (oil, gas, geothermal,
phosphate, sodium and potassium), lo-catable minerals (gold/silver/copper,gypsum/and bentonite) and mineral ma-terials (including sand, gravel, scoria,pumice and stone). In 1982, the SupremeCourt affirmed the SRHA mineral reser-vation definition and further defined itto include substances that:
1. are mineral in character,2. are inorganic,3. can be taken from the soil,4. can be used for commercial purposes,5. were not intended to be included in
the surface estate,6. have a separate value,7. are not necessarily metalliferous,8. may not necessarily have a definite
chemical composition.
WHAT DOES THIS MEAN TO YOU,AS A LAND OWNER?
You own the surface rights on landspatented under SRHA and have the rightto develop these lands in the manner setforth by the Homestead Acts, as intendedby Congress. This includes developingwater sources and infrastructures asso-ciated with grazing and raising foragecrops.
Available mineral resources found onthese patented lands can be used for theimprovement and maintenance oflands. Generally, the owners of the sur-face estate where the federal governmentowns the mineral may use, without thebenefit of a contract or permit, minimalamounts of mineral materials for theirpersonal use within the boundaries ofthe estate.
As the land owner, you do not have theright to sell the mineral resources fromlands patented under SRHA. The miner-al rights are reserved to the Unitedand are under the jurisdiction of the De-partment of the Interior and managed bythe Bureau of Land Management (BLM).
HOW DO I DETERMINE THE MINERAL OWNERSHIP IF I'M A LAND OWNER OR MINERAL OPERATOR?
Contact your local BLM office, whichwill be able to assist you in determiningif the minerals are federally owned. Aspecialist will check the master title platfor both surface and mineral ownershipand will also check the original landpatent to determine under which Home-stead Act your lands where originallypatented. Some Homestead Acts only re-served certain minerals, where theSRHA reserved all minerals.
Several recent trespass cases have in-volved landowners who thought theyowned the minerals and minerals opera-tors with an approved operating permitor small miner exclusion statement(SMES) from the state of Montana (MTDEQ).
An approved operating permit orSMES from MT DEQ does not authorizeremoval of mineral materials from landswith federally owned minerals. Thesematerials are available by purchase onlyfrom the BLM. Please contact your local
Do you really own the minerals under your land?
SEE MINERALS | PAGE 42
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 39
EEnneerrggyy ffrroommMMoonnttaannaaCCooaallCoal is one ofMontana’smost abundant natural resources and a key elementof our state’s energy portfolio.New technologies havemade coal extractioneasier than ever before, as long as government regulations don’t get in theway. By increasing our production of coal, we can ease our dependence onforeign energy sources and create jobs right here in Montana.
EEnneerrggyy ffrroommMMoonnttaannaaWWiinnddAnyone that has spent any time on Montana’s vast plains knows the powerthat our wind has. Converting this power to electricity is becoming easier,cheaper andmore efficient.It’s time toharness this clean,renewable resource.
EEnneerrggyy ffrroommMMoonnttaannaaBBiioommaassssMontana’s millions of acres of overgrown forests are brimming with energypotential.That potential can either bewasted inwild fires or utilized in state-of-the-art biomass energy facilities.The choice is ours.
EEnneerrggyy ffrroommMMoonnttaannaaOOiillNortheastMontana is home tooneof theworld’s great oil fields—theBakkenFormation.New horizontal drilling technology hasmade accessing this oileasier and has the potential of bringing thousands of jobs to our state.TheonlywayAmerica is ever going to gain true independence from foreign oil isby increasing domestic production.
EEnneerrggyy ffrroommMMoonnttaannaaNNaattuurraall GGaassMontana’s abundant natural gas reserves form yet another clean, abundantenergy source.Our natural gas industry is already responsible for hundredsof good-paying jobs, and now is the time to expand production.
EEnneerrggyy ffrroommMMoonnttaannaaBBiiooffuueellssFarms acrossMontana are theperfect site for growing crops capable of beingturned into renewable energy sources.There is no reasonwhyMontana can’tlead the way in this exciting field.
wwwwww..DDeennnnyyRReehhbbeerrgg..ccoomm
IInn tthheeUU..SS..SSeennaattee,,DDeennnnyy RReehhbbeerrggwwiillll mmaakkee ssuurreeMMoonnttaannaaiiss lleeaaddiinngg tthheewwaayy iinn eexxppaannddiinnggAAmmeerriiccaa’’ss eenneerrggyy ppoorrttffoolliioo..
FIND OUTMORE:Paid for by Montanans for Rehberg
BY LOUISA BARBERSIDNEY HERALD
It takes more than people to keep anoil boom going. It takes a lot of electric-ity, and since the latest one began sixyears ago, it’s been nothing but nonstopfor area power suppliers.
“It’s been difficult. We are trying tokeep up with the load,” said Tom Bar-nett, general manager of Upper Mis-souri G&T, whose cooperative suppliespower to its membership of regional co-operatives. And its these co-ops thathave spent millions of dollars on proj-ects hooking up the oil industry.
Among the project recently completedor currently being worked on include:
• A new 230,000-volt transmission linefrom Williston, N.D., to Tioga, N.D., byBasin Electric for $24 million.
• Upgrades to the Williston substationfor that line by Western Area Power Ad-ministration for $6 million.
• Rebuilt transmission line betweenCharlie Creek and Watford City, N.D.,upgrading it from 115,000 volts to230,000 for $10.3 million.
• Upgrading the Watford City substa-tion for that line for $4.5 million.
• Upgrading the Charlie Creek substa-tion for that line at $10.7 million.
And there’s talk of a possible second100-megawatt power generator to jointhe first one at the Culbertson station.It’s way down the road, but it’s a possi-bility with what all we have going onhere,” Barnett said.
Cooperatives are basically in a madrush to get their projects done with themajority falling behind. Besides theload they carry, co-ops are under enor-mous pressure to provide energy to anindustry that could be gone an instant.Co-ops are used to planning 10 years inadvance, and some fear that in keepingup with the oil companies, they don’tknow what the end product will be, norhow fast to go in order to keep up.
“We’re used to seeing a slower, morenormal growth cycle,” Barnett said.
Upper Missouri’s membership islooking at more additions to its oilpatch power supply. Among them is a345,000-volt transmission line thatwould wrap around Lake Sakakawea.“It’s part of a long-range plan, but notreally. Because of the speed of thegrowth it has moved up in priority,” hesaid. Engineers are studying the plannow, while project leaders are examin-ing the load growth.
Most of the oil activity is concentrat-ed in the North Dakota counties of
Mountrail, Williams and McKenzie,though co-ops in Divide, Burke, GoldenValley, Dunn and Slope counties are al-so experiencing activity. Power linesand substations take up a lot of the
work, but co-ops are becoming whatBarnett calls “numb” to the endlessnumber of oil well sites crews hook up.
Electrifying oil industry comes at hefty price for co-ops
SUBMITTED
Brady Kjos and Aaron Eide attaching lines to a new pole.
SEE COOPERATIVES | PAGE 41
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Tappin’ the Bakken spring edition40 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 41
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Cooperatives like Lower YellowstoneRural Electric Association, whichserves Richland County and parts ofDawson and Roosevelt counties in Mon-tana and parts of McKenzie andWilliams counties in North Dakota, haselectrified 200 wells which used to begas-generated in the last two years withanother 50 to go. They built a 27-miletransmission line along Montana High-way 201 beginning near Fairview andheading west to a new substation just toserve that load.
General manager Don Prevost saysmost of their work has concentratedwest of Sidney to west of Elmdale andnorth of Lambert, but it’s also doingline work north of Buford and Trenton,N.D. They have completed service tomore than 600 wells throughout its en-tire service territory.
“We’re struggling to catch up,” Pre-vost said, even though Richland Countyisn’t near as busy as its neighbor. At thepresent time LYREA handles four orfive rigs compared to other co-ops likeMountrail-Williams Electric Coopera-tive which serves upward of 80. Butthat’s a good thing, he said. “We like
that much better. We try to stay up withthem but that has been difficult withthe weather we have had, we’re be-hind.”
Lower Yellowstone is still hooking upoil well sites drilled throughout itsservice territory. By electrifying thesites, oil companies can monitor thewells from their offices, can shut pump-ing units down when needed and cansell the gas rather than use it to pumpthe wells.
But the cooperative has been sparedthus far from spending a large portionof its dollars to serve the oil industry.That’s because cooperatives are stillcautious from the oil boom of the 1970s
and 1980s when oil companies askedand they delivered without muchthought to consequences.
“We want them to invest in the risk,”Barnett said. “We don’t want what theoil companies are doing to raise thecost of power to other members.” Oilcompanies often put money up front forco-ops to build specific lines (such asthe Highway 201 line). That way, an in-creased load doesn’t put membership atrisk.
But as load growth builds, co-opsmust upgrade their systems, Prevostsaid, and they pay for it when it directlyaffects their needs. “We are reaching apoint as new services are added inmany areas of our system, major deci-sions on how to meet their needs notknowing what may be required some-time in the future.” Things are chang-ing not only daily but hourly. System in-frastructure costs are bore by the co-ops.
Across the border, McKenzie ElectricCooperative will lay 160 miles of distri-bution lines this year. General managerJohn Skurupey said the co-op has seena steady increase in activity since late2009 and continue to fall behind. “Wefall behind every day,” he said. “There’s
a belief that if the oil activity stopped,we’d still have work for at least a year.”
The biggest hold up, he said, is get-ting jobs staked for construction andthe paperwork that goes along with it.
Barnett noted getting the equipmentfor the substations is trying because itcan take up to a year for delivery. Theequipment is highly priced, costing acouple million dollars each, are on spe-cial order and there’s a waiting list.Then there is the task to get environ-mental permits, which can take one totwo years. “There’s no way to do it anyfaster,” he said.
FROM PAGE 39
Cooperatives: Area co-ops attempt to keep up with increased demand‘We try to stay up with them but
that has been difficult with theweather we have had,
we’re behind.’
Don Prevost LYREA general manager
‘We fall behind every day.There’s a belief that if the oil
activity stopped, we’d still havework for at least a year.’
John Skurupey McKenzie Electric Cooperative general manager
SK & SOILFIELD SERVICES, Inc.
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We Appreciate all of your business throughout the years,
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Tappin’ the Bakken spring edition42 SUNDAY, MAY 1, 2011 SIDNEY HERALD
materials are available by purchase onlyfrom the BLM. Please contact your localBLM office for more information con-cerning this program.
What shouldyou do ifyou mayhave or areremovingand/or sell-ing mineralsthat belong tothe UnitedStates?
Stop immediately.The extraction, sev-erance or removal ofmineral materials frompublic lands under the ju-risdiction of the Depart-ment of the Interior, exceptwhen authorized by permit orsale, is an act of trespass. Tres-passers may be liable for dam-ages to the United States and maybe subject to prosecution for suchunlawful acts. A trespass may be:
• An Innocent Trespass, which refersto taking of mineral materials inadver-tently and in good faith under a genuine-ly mistaken belief of a right to so extract
the mineral, or A Willful Trespass,which refers to a trespass done deliber-ately, intentionally or willfully withknowledge that it was in violation of law.
If you are unsure or have questions,please contact
your localBLM officefor assis-tance.MT/Dakotas
BLM offices andphone:Montana State
Office 406-896-5004;Butte Field Office 406-
533-7600; Glasgow FieldStation 406-228-3750;
Lewistown Field Office406-538-1900; Miles City
Field Office 406-233-2800;North Dakota Field Office 701-
227-7700; Billings Field Office406-896-5013; Dillon Field Office
406-683-2337; Havre Field Station406-265-5891; Malta Field Office 406-
654-5100; Missoula Field Office 406-329-3914; South Dakota Field Office 605-892-7000.
GSQf U.S. government PRINTING orn-cr pooo-576-234/13053 BLM/MT/G 1-06/012
Minerals: Information landowners should rememberFROM PAGE 38
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Tappin’ the Bakken spring edition44 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY LOUISA BARBERSIDNEY HERALD
If a new office building is any indica-tion of long-term commitment to anarea, it looks like Sidney will be home toat least one oil giant.
XTO’s office, currently under con-struction, will be complete soon, anopen house set for no later than July 1.“We definitely have plans to stickaround,” XTO production superintend-ent Stewart Phillips said.
Located just south of Sidney on High-way 16-200, the office should provideroom for an expanding business andgrowth as the company adds employees.It’s the latest in a number of office ex-pansions the company has experienced.Kringen Construction Inc., Sidney,which is building the new Sidney office,recently finished up XTO’s Williston,N.D., office. XTO also plans a secondsatellite office in the Watford City, N.D.,area.
XTO, owned by ExxonMobil, is cur-rently running seven drilling rigs in theBakken – six in North Dakota and one inthe Elm Coulee. It has invested about450,000 gross acres in the Williston
Basin.ExxonMobil is providing a budget to
continue development for years to come,Phillips said. The company has planned
a five- to 10-year forecast in oil activityin the MonDak region.
XTO becomes established in Richland County
LOUISA BARBER | SIDNEY HERALD
The XTO office under construction in Sidney.
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 45
BY HARRY LIPSIEASIDNEY HERALD
Ever since I moved here nearly threeyears ago, I knew that this experiencewould be a learning process. Well recent-ly I’ve learned some lifelong lessonsthanks to a recent project at the SidneyHerald.
The first thing I learned is that for themost part Richland County is thankfulfor the oil activity in the area and its ben-efits. On a chilly April morning, I tookmy pen, notepad and some stellar ques-tions to the streets with the intention toinvestigate what it’s like to work at an oilrelated job.
After a few odd looks and rejections, ayoung man from South Carolina talkedto me about his job in the oil field. He hasworked in the area for the last fivemonths and self admittedly learned a lotfrom his venture to the Big Sky state. Af-ter hearing about the opportunities inthe MonDak region, he moved to the areawith a couple of friends.
While it’s taken time to get used to therural area, he’s enjoyed his stay and isthankful for the opportunity. While thereare housing concerns, and he’s still find-ing hobbies to stay busy, staying in the re-
gion long-term is a viable option for him.The next person I interviewed was a lit-
tle less open to the fact of talking to afield reporter in conditions reminiscentto December. I, however, used my inter-view skills to get him to reveal that hehas worked in the oil field for more than20 years. A native to the region, oil relat-ed work is a way of life and is somethingthe area benefits from.
This is when I learned my second les-son: people don’t like their picture taken.Right when I asked each of these men if Icould take a candid, they left the premis-es immediately. After a few more doorsshut in my face, I realized it was time forplan B of my project.
At a different location, I asked commu-nity members how they felt about in-creased oil activity in the area. The firstperson I interviewed was a woman whohas lived in the area for roughly fiveyears. She feels that the oil has reallyhelped out our area schools and that’s ad-mirable. Overall, it’s a positive, she said.
My final conversation was with a manwho has lived in the area for years. Whilethe oil has caused concern for housing, ithas brought new businesses to the area.Thanks to oil, Sidney and its surround-ing communities have ultimately grown.
Challenge of having people comment
EEmmppiirree OOiill CCoommppaannyy iiss aann ooiillaanndd ggaass lleeaassee aaccqquuiissiittiioonn ccoommppaannyy..
P.O. Box 1835, Williston, ND
Email: [email protected]
Phone: 701-774-2845 • Fax: 701-774-3537
Bill LaCrosse
Buying & Leasing of Minerals
Tappin’ the Bakken spring edition46 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY LOUISA BARBERSIDNEY HERALD
A little-known investment product ispicking up momentum in the MonDakregion for investors who want a piece ofthe Bakken oil activity.
Integrity Viking Funds, formerly In-tegrity Mutual Funds and Viking Mutu-al Funds, Minot, N.D., created a mutualfund two years ago that lets ordinaryfolks ultimately invest in the oil play oc-curring in their backyard.
Investors can buy into the WillistonBasin/Mid-North America Stock Fund,formerly known as the Integrity SmallCap Growth Fund. The fund is com-prised of approximately 50 individualcompany stocks that are working in theregion. Some are well-known companiessuch as Continental Resources Inc., Hal-liburton, Baker Hughes, Hess, Schlum-berger and Lufkin. Others are not aswell known but still have a presence inthe area.
“As with any other mutual fund, thefund manager buys individual stocks ofvarious companies, and these sharesare combined into one fund,”Ameriprise Financial advisor MikeMohl said, “and so when you buy sharesof this fund you’re technically gettingshares of all these individual compa-nies.”
“By buying into a mutual fund you arespreading out the risk amongst a lot ofdifferent companies instead of justpicking one or two,” he added. It also al-lows diversification across several sec-tors such as oil and gas extraction,pipeline transportation and chemicalmanufacturing, rather than just one in-
dividual sector.The fund is gaining interest regionally.
Mohl frequently speaks with clientsabout it. “It’s gaining popularity everyday. As time goes on, more and more peo-ple seem to want to be involved in this in-vestment,” he said. As with any invest-ment, it must fit into their individual fi-nancial portfolio, however, which is whyinvestors should speak with a financialadvisor first.
What sets this fund apart from others,Mohl notes, is it’s a way for the public tobe part of the growth in the Bakken,even if they don’t own land or do physi-cal labor in the industry.
“It gives people maybe a little morepersonal interest in this investmentwhich they may or may not get in someof their other ones,” he said, adding thatit’s intriguing because the companiesthey invest in are working “right downthe road,” rather than far away.
If the Bakken continues to do well asexperts expect, well into the future, Mohlbelieves the fund “will do well” and con-tinue gaining investors. “It’s starting toget some momentum,” he said.
Williston Basin mutual fundgaining popularity with investors
LARENE GRONDAHL | SIDNEY HERALD
Taken in February, Snowden Bridge with a nearby pumping unit.
‘As time goes on, more and morepeople seem to want to be
involved in this investment.’
Mike Mohl Ameriprise Financial
Lee E. ArmstrongLicensed in Montana
and North Dakota
104 2nd Ave. S.W. • Sidney(lower level - CPA building)
433-7700 e-mail: [email protected]
We’ll providethe energy...
please use i t safe ly.
In the Community to Serve™
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 47
To create Montana jobs and to secureAmerica’s energy future, Montana’s oilproducers have stepped up to the plate.
I’m proud to support Montana’s energyproducers who are proving themselvesgood stewards of Montana’s resources.Their work strengthens our economy andbrings us closer to energy independence.
To them, I say thank you. And keep upthe good work.
Most of Montana’s energy producersare small business owners who createjobs in their communities, work responsi-bly, and provide the home-grown energyour country needs. They’re a vital part ofour state’s economy.
Conflicts across the Middle East are an-other reminder of the need to secureAmerica’s energy future. Reliance on for-
eign fuels isn’t just cost-ing American jobs, it’sthreatening our nationalsecurity. That’s why weneed to make the most outof Montana’s energy re-sources – from oil to natu-ral gas to coal to wind tosolar to geothermal.That’s also why I support
the Keystone XL pipeline and the Bakkenon-ramp, which aims to export 100,000barrels of Montana oil per day.
I support smart, strategic drilling inthe Bakken, and I salute the Montanansworking in the oil and natural gas indus-try for their contribution. The economicbenefits of their work are benefittingcommunities across Montana.
As always, I want to hear your feedbackand ideas for smart energy solutions thatwill secure a better future for all Mon-tanans.
As we work toward a more sustainableenergy future, I look forward to workingwith Montana’s energy producers to inno-vate, improve, and finally achieve energyindependence.
U.S. Sen. Jon Tester is a third-generation farmerfrom Big Sandy.
Oil producers step up to plate
Tester
‘Their work strengthens oureconomy and brings us closer to
energy independence.’
Jon TesterU.S. senator
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Tappin’ the Bakken spring edition48 SUNDAY, MAY 1, 2011 SIDNEY HERALD
BY BILL VANDER WEELESIDNEY HERALD
With the challenges of finding em-ployees in Richland County, John Fran-cis is now looking abroad for workers tohelp Sidney’s McDonalds stay open forlonger hours.
Francis says he is currently 15-20 em-ployees short at the Sidney restaurant.
“As a result, we are having to limitour hours because we don’t have peoplewilling to work,” Francis said.
For example, recently, Francis wasforced to close the lobby at 5 p.m. andthe drive-thru at 7 p.m.
Although lunch is a hectic time, therestaurant is losing a lot of profit fromnot being able to stay open later into thenight. “We have all the oil guys comingback into town, and they want some-thing to eat,” Francis said.
So, the United Work and Travel pro-gram is of great interest to Francis. Theprogram brings students from all over
the world to have the experience of liv-ing and working in the United States.Earlier this year, college students fromSouth America countries worked inbusinesses in Williston, N.D., includingEconomart, McDonald’s and Applebees.About 90 students worked through theprogram in either Williston, Dickinsonor Minot, N.D.
“They (North Dakota cities) foundhousing for all of them even with thesame situation as shortage of housingand hotels,” Francis said.
That’s the challenge. Those studentworkers will need a place to live. Fran-cis has run ads asking homeowners tohouse the students and be paid a hous-ing allowance.
“I’ve had two inquiries so far abouthost houses,” Francis said early thisweek. “When someone calls, I get the in-formation and send it to the UnitedWork and Travel.”
People interested can call Francis at433-1983. He is requesting 10 workers
through the program.Harry Metz, owner of Kentucky Fried
Chicken in Sidney, is also interested inthe program. Metz says his business hasgone very well but he currently needsone-two more cooks, an employee to
wash dishes and a couple more workers.“I want to be open on Sundays too, but
I just can’t do it,” Metz said. “We tried itfor a while, but we ran ourselvesragged.”
Metz heard the program was success-ful for KFC stores in Williston as well asin other states.
“It’s going to be interesting becausewe don’t know about how big of a lan-guage barrier there will be,” Francissaid. “They say they know English well,but you never know.”
The program has gone extremely wellin Williston. Francis noted the students,ages 18-23, can request to come to thesame place for the following year aftertheir first time here. They can alsowork at more than one job.
“Some may have experience, but ifnot, we have to train them,” Francissaid. “The biggest thing right now is ac-quiring housing.”
Looking abroadInternational students may help employee shortage if housing is found in Richland County
BILL VANDER WEELE | SIDNEY HERALD
Shortage of workers make customers morepatient at McDonald’s in Sidney.
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 49
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 51
Tappin’ the Bakken spring edition52 SUNDAY, MAY 1, 2011 SIDNEY HERALD
We do it all!• Roustabout• Excavation• Pressure washing• Concrete• Industrial sandblasting
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2221 S. Central, Sidney • 406.433.6754 • www.slserviceinc.com
BY NICK SMITHWILLISTON HERALD
Being a truck driver in the oilindustry isn’t as easy as hoppinginto the cab of a truck andpulling away from the curb.
To train drivers, WillistonState College purchased a Com-mercial Drivers License (CDL)simulator for its CDL program.
An open house was held April12 at the WSC Petroleum Safetyand Technology Center.
The mobile simulator has beenused by approximately 25 CDLstudents so far.
TOOL FOR BUDDING DRIVERSTrain ND CEO Deanette Piesik
said the $194,000 simulator is fortraining CDL students at Willis-ton State College as well as com-pany training.
“We have used it in the class-room so far. We’ve had lots ofcalls on it from companies whowant to use it,” Piesik said.
Piesik said the simulator willhelp expand the CDL program.
“Now we’ll really kick it off
and get it out into the field,”Piesik said.
GETTING READY FOR THE ROADWSC Petroleum Safety and
Technology Center DirectorDennis Knudson said the newsimulator should prove to be avaluable resource.
It allows for safe training be-fore hopping into the cab of atruck and hitting the open road.
“It’s a pretty real feel for whatthey’re in a real truck. I think itreally enhances the CDL pro-gram,” Knudson said.
The simulator can be takenout to company locations or usedat the petroleum center. Morethan 200 training scenarios canbe run.
Scenarios include accelera-tion, steering and freeway driv-ing as well as skills such as back-ing, parallel parking and defen-sive driving.
Companies can also have indi-vidual scenarios programmed infor their own drivers.
Knudson said the simulatorshould be put to good use for
years to come.“As long as there’s a demand
for CDL drivers in the area therewill be a demand for this,” Knud-
son said.A $50,000 North Dakota Oil and
Gas Research Council grant and$50,000 in matching funds from
oil and trucking companieshelped pay for the simulator.
Revenue from the college’straining also was used.
Virtual trucking: Simulator prepares drivers for the road
NICK SMITH | WILLISTON HERALD
Dennis Knudson, director of the Williston State College Petroleum Safety and Technology Center, performs anexercise on the new CDL simulator purchased by Train ND.
We Sell Service!• Hauling Fresh & Salt Water
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Dispatch: 406-480-9746 Office: 406-433-2247
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• 2900 barrel capacity freshwater • 3 load lines
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Pine Ridge Water FacilityPine Ridge Water Facility
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 53
701-842-4771Robert (Barney) Pfeifer, GM/Owner
Watford City, ND
Crude Oiland
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Park PlazaMotel
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Experienced In Eastern Montana
Netzer Law Office, PC1060 S. Central Ave., Ste. 2 Sidney • 433-5511
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• Estate Planning• Wills and Probate• Corporations
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Paul L . Sagaser12301 58th St. N.W. Epping, ND 58843 • Cellular: 701-570-3080
Office: 701-859-4145 • Fax: 701-859-4146
Serving the Williston Basin since 1981
GEOLOGICAL WELLSITE CONSULTING
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Tappin’ the Bakken spring edition54 SUNDAY, MAY 1, 2011 SIDNEY HERALD
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Office: 406-742-5312Vess: 406-489-0039Fairview, Montana
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Loader • Trucking
Halliburton takes hands-onapproach to housing challengesBY BARB PETERSONWILLISTON ECONOMIC DEVELOPMENT
Halliburton has recently hired a resi-dential property manager to handle itshousing challenges in the Williston Basin– particularly in Williston, N.D.
Sarah Carlson joined the Halliburtonteam in January. She says Halliburtoncreated the position to help find solutionsto the lodging shortage rather than beinga part of the problem. “Halliburton is be-ing proactive,” she says.
Carlson recently met with WillistonWorkforce Development coordinatorShawn Wenko to discuss Williston’s hous-ing deficit. Wenko has been involved inseveral studies on the topic. “The bigneed right now is for more multi-familyhousing,” he says.
In addition to hiring Carlson, Hallibur-ton recently dedicated $25 million towardpermanent housing for its employees inWilliston, says Halliburton senior publicrelations representative Tara MulleeAgard.
As part of that commitment, Hallibur-ton is in the final stages of building 30
new homes in a neighborhood on thewest side of town. The company is look-ing into the possibility of building addi-tional homes there and in a nearby neigh-borhood as well. These homes will pro-vide permanent, high-quality housing forHalliburton employees in Williston,Mullee Agard said.
Carlson will play a big role in determin-ing Halliburton’s future accommodationplans. While she is fairly new to the area,she is no stranger to the real estate busi-ness. She was a real estate agent for 10years and managed commercial and resi-dential properties for 15 years. Carlsonand her three daughters left Grand Junc-tion, Colo., in July to join her husband inWilliston. He is a contractor and has beenworking in the area for about one year.
The majority of Halliburton employeeslive in newly constructed buildings or intemporary housing provided by the com-pany. In addition, last December, Hal-liburton opened the Muddy River Lodge,a housing facility that is taxable by thecity of Williston and is home to morethan 155 employees.
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 55
Brine Gathering Systems14 salt water disposal wells
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Good selection of stylesand sizes in stock.
Tappin’ the Bakken spring edition56 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Three Locations365/24/7
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Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 57
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BY LOUISA BARBERSIDNEY HERALD
On a weeklong tour in northeast Mon-tana to promote the state’s job-creatingenergy industry, Congressman DennyRehberg stopped in Sidney during lateMarch to conduct a public forum on theissues facing Richland County and theWilliston Basin.
He was joined by area residents as wellas county and city leaders, businessowners and health care industry work-ers who described some of the ongoingchallenges the region faces: small busi-nesses competing with oil field wages,struggles to secure employees, countyroad improvements, workers compensa-tion and business equipment taxes, andhousing.
Rehberg said he is working on a com-prehensive energy policy that gives thecountry direction. One that makes use offossil fuels (oil, gas, coal); alternative en-ergy (wind, geothermal, biomass);works on conservation; and utilizes fed-eral grants that go to the university sys-tem and small businesses, places whereideas are formulated to address Ameri-ca’s energy crisis.
On a federal level, Rehberg said he istrying to support research for innova-tive technology like carbon sequestra-tion. He acknowledged that the nationwants to pollute as little as possible butmust be realistic about how it gets its en-ergy.
“There has to be a balance,” he said,adding he supports Congress workingwith the U.S. Department of Energy onresearch projects.
That led to a discussion over hydraulicfracking, and the Environmental Protec-tion Agency controversy regarding un-derground water contamination. For-mer state senator Larry Tveit said aftertalking to several oil men, hydraulicfracking is crucial to life in the WillistonBasin. If it becomes regulated by federal
government or worse, banned entirely, itwould be detrimental to the oil industryin the MonDak region.
Sidney Mayor Bret Smelser told Re-hberg there is concern that legislationfrom Pennsylvania, where fracking fornatural gas is shallower, will affect oil inthe Bakken, where fracking is muchdeeper. Tveit urged Rehberg to “raisehell” in Washington D.C.
More effects from the oil industry, asRehberg was informed, involves themore vulnerable, specifically elderly onfixed incomes who can’t afford renthikes. Karen O’Dell, Senior Compan-ions, said senior programs aimed at as-sisting seniors to live on their own are inserious jeopardy if cuts included in HR 1pass. Calling it “catastrophic” for thearea, O’Dell said. R.S.V.P. and SeniorCompanions programs under MontanaSenior Corps need support of the federalgovernment because volunteers andcounty support isn’t enough.
Rehberg said he understood the dilem-ma, but it is also his job to fix the mis-take of the stimulus package and therampant federal debt.
Rehberg listens to area’s concerns
LOUISA BARBER | SIDNEY HERALD
U.S. Rep. Denny Rehberg, R-Mont., explainspolicies during a recent visit to Sidney.
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ACCURATE AND RAPID TURNAROUND TIMEOF ALL DOCUMENTS TO EMPLOYERS!
203 S. Central Avenue, Sidney • Call Us Today! 482-2113
CongratulationsConocoPhillips!
We appreciate ConocoPhillips choosing
Sidney for its new office location.
Thanks for doing business with Restorxand for investing in our community
WWee aapppprreecciiaatteebeing able to
uuppddaattee oouurr sscchhoooolldue to oil revenue.
We are thankful for the economic
growth oil brings to our community.
215 E. Main St., Sidney • 433-1810
From sales to service we appreciatethe oil field workers
and businesses.
FairviewPublic
SchoolsThanks
for supporting our school.
Thanks to all the oil producers
and service companiesfor making it possible
for Richland County
to grow.Richland CountyCommissioners
Sidney Public
Schools
“We’ve been in Richland Co.since 1925, but the oil has
been here for a million years!We appreciate all those who keep it flowing…”
1151 South Central433-2305
BrorsonSchool
We value the support for ourschool from the
oil revenue!
tappin’ the bakken’
13th biannual issue
Tappin’ the Bakken spring edition58 SUNDAY, MAY 1, 2011 SIDNEY HERALD
Join us in recognizing the contributions of the local oil & gas industry to our communities.
Thanks for supporting our
endeavor,as we truly
support yours!
482-3737203 2nd St. NW
Sidney
Your local specialists
Tappin’ the Bakken spring editionSIDNEY HERALD SUNDAY, MAY 1, 2011 59
Investing In The BakkenContinental Resources is now the second-largest oil producer in
the Rocky Mountain region, and for the past 20 years we have
been discovering oil in North Dakota and Montana.
Our Robert Heuer 1-17R, which we completed in Divide County
in March 2004, was the first commercially success fu l we l l in the
North Dakota Bakken to be both horizontally drilled and fracture
stimulated.
We are proud of our growing team of employees throughout
the Bakken, espec ia l l y in our S idney office. And, we are pleased
to invest in the communities where we work and live.
America’s Oil Championwww.contres.com • (406) 433-3006
Tappin’ the Bakken spring edition60 SUNDAY, MAY 1, 2011 SIDNEY HERALD