Bakken Oil Report spring 2015

Page 1



Bakken production stays the course amid falling oil prices Western North Dakota catching up after torrid growth rates Full speed ahead for U.S. LNG

Bakken housing provides challenges and innovation Museum highlights historic Bakken oil boom


We offer hydraulic, conventional, and crawler cranes from 8 1/2 tons to 900 tons, plus our newest crane a Liebherr LTM1750-9.1 900 ton hydraulic All Terrain Crane.



Office- 701-572-6301 | Fax- 701-572-6270

RECEPTIVE. RESPONSIBLE. RELIABLE. With so much on the line, these qualities are absolute in the oilfield. From our first oilfield project in 1951 and hundreds since, KLJ remains the leader in engineering, planning and surveying solutions. Learn more about our services and explore career opportunities at

Building a Strong America


Our legacy of Building a Strong America® began in 1924, bringing energy to farm communities on the MontanaNorth Dakota border. Headquartered in Bismarck, N.D., today we operate in 48 states, providing natural resource products and related services that are essential to energy and transportation infrastructure. We power homes, businesses and industry through electricity, natural gas and oil. We keep our economy moving by building and maintaining the country’s transportation network of roads, highways and airports. We connect homes, factories, offices and stores with pipelines and wiring. We are your resources for today and tomorrow.

1200 W. Century Ave., Bismarck, N.D. |

Ad for Bakken Directory 7 x 9.5.pdf 1 2/23/2015 2:52:21 PM










Message from the Honorable Steve Bullock, Governor of Montana 10

The important role of pressure transmitters in the oil & gas industry 138

Oil industry will rebound: It’s time for North America to act like an energy superpower 14

Cheap oil: Innovation’s new invitation 142

Western ND catching up after torrid growth rates 20 Preserving our state’s resources: Greater North Dakota Chamber 24 WBI Energy celebrates 30 years of operation: MDU Resources 26 Bakken production stays the course amid falling oil prices 32 Full-speed ahead for U.S. LNG industry 40 Colorado oil and gas proposals: Powder keg or procedural nightmare? 44 Bakken housing provides challenges, innovation 48 BOE Midstream and Tesoro High Plains Pipeline complete pipeline connection in Killdeer, ND 52

Quality service providers should thrive, despite low oil prices 144 A water transfer company is only as good as their last water transfer job 146 When you need it now, Brawler delivers 150 Reynolds French: Their history and future 152 Railroading is our business: Northern Plains Rail Service 156 Criteria to consider when selecting a water-cut monitor 160 Mattracks, innovator in rubber track conversion systems, can help with the challenges in accessing remote work sites 162 Novel PROH20 technology for treating produced water 164

Follow the money: Shale oil and fracking 56

Bakken Fence – “Committed to Safety” 166

Clearing Bakken dust keeps road maintenance budgets, driver safety on track 60

Proactively addressing your CSA concerns: LiteCheck 168

Let the good times roll: Museum highlights historic Bakken oil boom 64

Unit Liner Company introduces Enviro-Guard Interlocking Polyurethane Tank Bases 170

The Treasure State Endowment Trust: Taking a look at the coal industry in the state of Montana 68

A leap of faith: Glacier Oilfield Services takes a chance in North Dakota 172

Payback on smart VRUs make EPA compliance profitable 76 Cash flow stress hits the Bakken: TCI Oilfield Factoring 82 Lessons learned from the Bakken enable company growth — Part II 88 The WAWSP: A groundbreaking public-private partnership in the Bakken 92 Train and retain: The University of Mary partners with businesses to cover skills gap 96 23rd Williston Basin Petroleum Conference & Expo 100 Partnerships play important role in Salvation Army’s outreach 102 The oil industry, then and now 108 NETZSCH provides custom diluent injection pumps for major energy transporter 110 Oil and water can mix: Devils Lake Economic Development 114 Rapid City, South Dakota playing major supporting role in energy boom 116 The next chapter: Miller Architects & Builders addresses retail needs in the Bakken 120

Site stabilization for shale gas drilling pad: Brock White 174 Thawzall stands for high-efficiency, high-quality and excellent customer support 176 RD-6: A proven solution for CP disbonding 178 Convey-All USA by Hamilton Systems, Inc.: We have more in mind 180 Reduce your spend on completion chemicals 182 The only safety orientation for the pipeline industry: PEC Safety 184 Financial focus: What do low oil prices mean for investors? 186 Customer needs primary focus at Mi-T-M Corp. 188 A foam of a different color: Demilec’s polyurea coating ideal for niche Bakken market 190 Ready when you need it: Flo-Back Equipment 192 Full-service Bobcat dealership in Eastern Montana 194 Dedicated Ford diesel service center caters to Bakken customers 196

M Space presents new rentals in Bison Run 122

Is there a better option for your survey needs in the Bakken? 198

Stranded gas fuel sources energize and optimize temporary power solutions 124

Westcoast Resorts: The quintessential Canadian fishing experience 199

Conquer those time bandits: Motion Industries 126

Portability in explosion-proof lighting equipment 200

Employer associations: Helping businesses navigate and stay afloat 128

Remediation solutions for remote oil and gas locations: LT Environmental 202

Employers adapt benefits offerings in response to health insurance regulations, workforce challenges 132 A contractor’s dilemma: How to maintain the same quality service you offered as a small company 134 8


Expansion proves positive for Pro Tank Products 204 Get the most out of your “zero-discharge” closed-loop system 206 Index to advertisers 208

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President David Langstaff Publisher Jason Stefanik Managing Editor Shayna Wiwierski Sales Manager Dayna Oulion Advertising Account Executives Corey Frazer Mic Paterson Anthony Romeo Colin James Trakalo Cover Photo Provided by ConocoPhillips Production services provided by: S.G. Bennett Marketing Services Art Director / Design Kathy Cable Advertising Art Joel Gunter Dana Jensen Sheri Kidd © Copyright 2015 DEL Communications Inc. All rights reserved.The contents of this pub­lica­tion may not be reproduced by any means, in whole or in part, without prior written consent of the publisher­. While every effort has been made to ensure the accuracy of the information contained in and the reliability of the source, the publisher­in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers­or employees.


Communications Inc.


C R A N E & H E AV Y H A U L S E R V I C E S

LIFTING AND HEAVY HAUL SOLUTIONS PROVIDER OF CHOICE Throughout the energy corridor of western North America Toll Free 1-855-560-5050 |

PROUD TO SERVE THE BAKKEN REGION 34950 County Road 126, Sidney, MT 59270



Message from the Honorable Steve Bullock, Governor of Montana The American Society of Civil Engineers recently released a report card for Montana’s infrastructure, where they gave our roads, bridges, and water systems a “C-“ grade. That’s not a grade that is acceptable to me as the father of three school-aged kids, and it shouldn’t be a grade that we as Montanans should accept for our infrastructure.

communities of Eastern Montana

A reliable infrastructure is key to economic success in our state. It allows workers to travel to their jobs, businesses to get their products to market, and consumers to frequent retailers and restaurants. But it also ensures that our students have classrooms that will equip them with the skills and experience to fills the jobs of tomorrow, and allows online businesses and retailers to establish themselves in a rural community because of the freedom that a broadband Internet infrastructure provides.

residents and businesses have an

It is with this in mind that I recently introduced the Build Montana Plan to make critical investments to meet the infrastructure needs across the state, including upgrades to water systems, roads, schools and broadband. The plan, which requires approval from the legislature, will use a mixture of cash and bonds, leveraging our state’s strong fiscal management to secure record low interest rates on these investments. Nowhere is the need for infrastructure upgrades more apparent than in the



experiencing rapid population growth due to oil and gas development, but communities across Montana have similar needs. The Build Montana Plan takes, for the first time, a statewide look at the infrastructure needs of all communities of our state – rural and urban, eastern and western. It ensures that all Montana infrastructure they can rely on, rather than picking pet projects of a certain legislator to get funded. The Build Montana Plan will put people to work today building roads, constructing schools and upgrading water systems, but it will also ensure that communities across the state are well equipped to meet the needs of their businesses and residents over the long term. Organizations including the Montana Chamber of Commerce, the Montana Contractors’ Association, and labor unions recognize the value of this plan, which is why they are strong supporters of this proposal. As the 2015 Legislative Session winds down, it is crucial that lawmakers don’t leave Helena until they make these critical upgrades. If you haven’t done so already, reach out to your lawmakers and encourage them to support the Build Montana Plan, a comprehensive approach to making critical infrastructure upgrades across Big Sky Country. w

Why would you call an earth moving contractor for environmental services? We’ll give you three reasons. We have a solid local reputation for honesty, reliability and readiness. We’ve acquired the assets of a major environmental company. And when you have a dirty job, we’ll move mountains to keep your operation and reputation spotless.

24/7 Emergency Response

Environmental Services

• • • • • • • • •

• • • • • • •

40-hour HAZWOPER certified employees Marine boom deployment capable Stocked and inventoried spill response trailers Fleet of hydro-excavators and vacuum trucks 25 cu. yd. roll tarp liquid tight roll-off containers Facility and emergency response plan generation Table-top and field drills for customers Small to large spill cleanup and management Company-owned special waste landfill

Tank cleaning Sample generation and processing Analytical services Profile generation and approval Manifest generation and approval Licensed transporter of liquid and solid waste NORM surveys, processing, and are a licensed NORM transporter • Ongoing relationships with ND approved landfills

Dickinson – Watford City – Williston – Minot – Stanley


“Highly Experienced Crews Dedicated to Providing Safe and cient Service” MOBILE CRANES With our large selection of crawler and hydraulic all-terrain truck cranes we can handle the largest or smallest of projects. Engineering services to assist you in the design and placement of any lift


NCCCO Certified crane operators

Crane Services, as well as various forms of other service work


Wire Line

Twin Steer 400” Bed Trucks Gin Trucks (360”) Haul Trucks Heavy Haul (Up To 11 Axles) Loaders & Forklifts - Cat 966C Or Equivalent Hydraulic Truck Cranes - 90 To 275 Ton Lattice Boom Crawler Cranes The highest maintenance and safety standards met on all our equipment

Drilling - Rig Moves, Emergency

Completions - Coil Tubing, New Production - Tank Batteries, Pump Jacks, Compressor Stations, Separator Vessels

ALL TYPES OF CONSTRUCTION Steel Erection Precast Tilt Up Call us today for your crane service needs. Available 24 hours a day 7 days per week.

North Dakota Contractor’s License # 45791 CLASS A


Oil industry will rebound It’s time for North America to act like an energy superpower By Brad Wall, Premier of Saskatchewan

The great British Prime Minister Benjamin Disraeli once observed that there’s no education like adversity. If that’s the case, the oil industry has done a lot of learning during the last few months, and so have governments that rely on the industry for investment, revenue, and jobs. We have witnessed a precipitous drop in oil prices that virtually no one foresaw, a decline so steep the industry’s basic operating assumptions are being questioned by many. This is indeed a challenging time for companies, employees, and jurisdictions like Saskatchewan. As we deal with those challenges, we need to keep in mind that we’ve been here before, and not so long ago. Oil prices plunged in 2009, and the industry faced the same uncertainty it confronts today. But prices bounced back fairly quickly, thanks in large part to growing demand in the developing world. And while this time prices may not recover as quickly, the industry’s demand dynamics have been forever altered by the rise of countries like China, India, Indonesia, and Thailand. Even if those Asian economies weaken in the short term, it is difficult to 14


envision a scenario where global demand for oil languishes for long. The world’s population is expected to increase to more than nine billion by 2050, with much of that growth to take place in Asia. Moreover, the world is becoming more affluent and more urbanized, which will translate into higher demand for energy. From 2000 to 2012, demand for oil in Asia grew by 41.5 per cent, while demand declined in Europe and the United States, according to the Organization of Petroleum Exporting Countries (OPEC). OPEC forecasts that oil demand will climb from 90 million barrels a day in 2013 to 111 million barrels a day by 2040, with most of the increase coming in Asia. This is why I believe the North American oil and gas industry will prosper in the long term, provided we have the appropriate taxation and regulatory regimes in place and the necessary infrastructure to get our product to market. In the short-term, there will be some rocky days. Thankfully, the industry is made up of tough and resilient people, and so is the Province of Saskatchewan. We are both accustomed to market volatility.

Saskatchewan is a province of traders, exporting almost three quarters of the total value of what we grow, mine, or build to markets around the world. Our economy relies heavily on natural resources to drive growth and investment. But while many know Saskatchewan as a leading producer of potash, uranium, and agricultural products, and that diversity of resources will help see us through a slowdown, the contribution of oil to our economic wellbeing is not as well known outside the province. That’s why, wherever I go, I am quick to point out these facts: • That our province has 53.9 billion barrels of initial oil in place, and 1.3 billion barrels of remaining recoverable reserves; • That Saskatchewan is Canada’s second largest oil producer and its third largest natural gas producer; • That prior to the recent decline in prices, Saskatchewan was producing a record amount of oil - more than 500,000 barrels of oil a day, with 65 to 70 of production exported to the United States (we ship more oil to the U.S. than Kuwait); • That Saskatchewan is a global leader in the research and development of enhanced oil recovery technologies;

Stampede™ Packing Elements

Engineered Solutions. Stampede™ Swellable Packers

Global Challenges. Harsh Environments. Stampede™ swellable packers and packing elements are made of high quality elastomers that can withstand unpredictable environments. Improve performance with a full range of technically advanced completion products for confidence in high-performance results. Count on Weir for the completion products you need, when you need them.

For more product information | | Follow Us on Twitter Copyright © Weir Slurry Group, Inc. 2015. All rights reserved. STAMPEDE is a trademark and/or registered trademark of S.P.M. Flow Control, Inc.; WEIR is a trademark and/or registered trademark of Weir Engineering Services Limited.

MESSAGE continued

The private sector deserves the credit for the impressive growth in Saskatchewan’s energy sector. For our part, the government has tried to help by creating an atmosphere conducive to growth. • That our industry has a solid track record of innovation, and has eagerly utilized horizontal drilling and hydraulic fracturing to boost production; Oil has provided an enormous boost to one of the fastest-growing economies in Canada. In 2013, the industry accounted for an estimated 15.1 per cent of Saskatchewan’s $61.1 billion real gross domestic product. In 2014, it invested an estimated $6 billion in exploration and development, and supported approximately 38,000 jobs. Our government is extremely grateful for the hard work and enterprise of the hundreds of companies operating oil and gas wells in the province and the firms that support them. The private sector deserves the credit for the impressive growth in Saskatchewan’s energy sector. For our part, the government has tried to help by creating an atmosphere conducive to growth. That we have had some success is borne out by the Fraser Institute’s annual Global Petroleum Survey, which ranked Saskatchewan as the third most attractive place in the world for the oil and gas industry. In these uncertain times, we will do everything we can to ensure Saskatchewan remains a competitive place to do business for the industry. That includes serving as a strong advocate on the national and international stage. We have been vocal in our support of major pipeline projects that will benefit North American oil producers, such as 16


Northern Gateway, Keystone XL and Energy East. The pipelines will provide a major boost to the North American economy, and ensure our oil can get to tide water, allowing producers to receive world prices for their product. I’ve travelled to Washington in support of TransCanada’s Keystone project. In speeches and in meetings with lawmakers, I’ve made the point that there are already more than 80 pipelines carrying hydrocarbons between Canada and the United States, all operating safely right under the nose of actress Daryl Hannah and other fervent opponents of Keystone. Keystone, in fact, would account for less than one per cent of the 150,000 miles of oil pipelines distributed throughout the United States, according to the Brookings Institute (there are another 2.5 million miles of natural gas pipelines). In my discussions in Washington, I also stressed the economic benefits of Keystone. According to the U.S. State Department, the project will contribute $3.2 billion to the U.S. GDP and create more than 42,000 jobs during construction. The State Department has also concluded that Keystone will not significantly increase greenhouse gas emissions. Keystone is truly a “no brainer”, as Prime Minister Harper has said. But President Obama doesn’t see it that way. The project is caught up in an intense political debate in the United States. I’m troubled by that debate, but I understand it. Opposition to the $12 billion Energy East project is harder to fathom.

Energy East, another TransCanada undertaking, entails converting an existing natural gas pipeline to an oil pipeline, and extending the pipeline to ports in Quebec and Atlantic Canada. Seventy per cent of the pipeline is already built. Energy East, like Keystone, will permit Canadian oil producers to get world prices for their product, which will not only benefit those companies, but all Canadians through increased tax revenue, wages and investment. The pipeline will allow for the shipment of conventional oil from West to East, opening up the possibility of Canadian oil displacing oil importing from countries like Saudi Arabia, Iraq and Nigeria. The economic benefits associated with Energy East have been confirmed by independent studies completed by Deloitte and the Conference Board of Canada. The Deloitte report predicts the pipeline will boost economic activity by $35 billion over its lifetime. This includes $10 billion in additional tax revenues, of which 20 per cent will flow to Quebec and 36 per cent to Ontario. It is estimated Energy East will create 10,000 full-time jobs in the construction phase, with most of the jobs going to workers in eastern Canada. Energy East is now the subject of a rigorous National Energy Board review.

Power Anytime. Anywhere. Reliable, Flexible and Fast When access to utility power is limited in shale plays, or an operator has the ability to utilize field gas or stranded gas for power generation, Aggreko is your solution. We have a wide range of natural gas generators customized to meet your unique requirements, while providing significant cost savings. Aggreko offers full project planning, installation, commissioning, and operation supported by 24-hour on-site services and maintenance.

Aggreko, Power Specialists in Oil & Gas Aggreko National Support Center 4540 Kendrick Plaza Drive, Suite 100, Houston, TX 77032, United States T: 800.AGGREKO E: Aggreko operates from over 200 locations throughout the world. For the location nearest you, please go to:

62007_Bakken Oil Report Advert.indd 1

12/02/2015 15:37

MESSAGE continued

I was pleased to see that my colleagues,

supporters of Energy East. There is, in

And as we do, we need to deal in facts, for

Premier Kathleen Wynne of Ontario and

fact, considerable opposition to the

as the American president John Adams

Premier Philippe Couillard of Quebec,


noted: “facts are stubborn things”.

have dropped their demand to expand

I have no doubt TransCanada will do

that review to include the greenhouse

everything it can to allay concern and

We should emphasize the fact that

gas emissions (GHGs) generated in the

correct misinformation.

production of the oil transported in Energy East. Still, Quebec and Ontario are not yet

Those of us who support the oil industry, and understand and appreciate its importance, must help with the effort.

pipelines are by far the safest way to transport oil, far safer than moving oil by rail. We should make known the fact that every year, Canadian resource companies and governments lose out on billions of dollars in profit and tax revenue because we are unable to ship our oil to world markets. That means less money for job creation, less money for schools, hospitals and roads, less money for programs to help the most vulnerable among us. We need to disseminate the fact that few countries in the world have done as much as Canada and the United States to ensure the environmental sustainability of fossil fuel production. Over the years, billions of dollars have been invested to reduce the industry’s impact on the environment. And finally, we need to explain that the oil and gas industry has sustained our economies through difficult times, with the economic benefits extending far beyond the borders of oil-producing provinces and states. In 2013 alone, the Canadian industry invested $74 billion and employed 530,000 people. All North Americans should be proud of our oil and gas industry. We should trumpet its risk taking, its innovation and its social responsibility.

Your Construction Solutions Partner.

Today, both Canada and the United States can make an honest claim to being energy superpowers. It’s time both countries started acting like energy superpowers. w



BC’s Best Fishing Experience

discover the rest of our story visit wcr online at or call toll free 1.800.810.8933

Scan Here.


Western ND catching up after torrid growth rates By Scott J. Meske, president, Williston Area Chamber of Commerce

The City of Williston and western North Dakota has seen exponential growth the past five years due mainly to the harvesting of minerals beneath our prairies that still produce trainloads of grain and crops to feed our nation. In April 2013, the U.S. Geological Survey estimated that there are more than seven billion barrels of recoverable oil in the 200,000 square miles that make up the Bakken basin, covering North Dakota, Montana, Saskatchewan and Manitoba. As far as I know, that oil isn’t going anywhere. To the best of my knowledge, it’s not slow dripping to the center of the Earth through a leak in the formations underlying our country’s midsection. My point is that regardless of the price of a barrel of oil, the resource will remain in the same place it was formed more than 2.5 million years ago. Since June 17, 2014, the price of a barrel of WTI crude oil has dropped from $107/BBL, to $53/BBL today. Many in Williston remember the mid-1980s, when the price dropped so significantly that oil companies and the labor force vacated the area in search of bigger profits and more stable revenues. So what’s the difference this time? Why are state and local officials not panicking? In the words of an MVP NFL quarterback – R-E-L-A-X. There are many studies, reports, and speculations that predict the price of oil will increase. There are just as many pundits who claim prices will stay this level for a year or more. Read another headline and you’ll find that after nearly 50 years, OPEC’s monopolistic grip on world oil markets is in serious jeopardy (CNN Money, 2/10/2015). If you find 20 articles on the current state of the oil markets, you’ll sure to find 20 opinions and theories. The oil and gas producers in western North Dakota know what their “break even” price is for a barrel of oil. Even that number changes from company to company, even from well to well. It’s true that the number of drilling rigs is down, mainly in the outlying areas (outside the four county “sweet spot” of Williams, 20


MacKenzie, Montrail and Dunn Counties), and some companies are cutting back on the number of total hours workers are logging. It’s also true that these instances of “belt-tightening” are different for each producer and oil service company. The economics of extraction and transporting product will drive just how fast we’ll continue to grow. Williston’s Economic Development director Shawn Wenko summed it up at a meeting recently. He said Williston will go from “insane growth to just a little crazy”. What does this mean for our city? It means that we’re still behind in serving the labor force, the families and businesses that call Williston their home. Retail and city services are still needed. The airport still needs to expand and move. The new high school still needs to be built. Housing needs and infrastructure are still a major priority. The pressing need to catch up to the growth that has already occurred has been heard in the North Dakota State Legislature. A $1.2 billion “surge funding” bill is making its way through the process this spring. The funding is intended to help local governments most impacted by the crush of population and economic activity in western North Dakota. Local governments have increased their debt load and local sales taxes to the point where there are no other solutions but to turn to the State for assistance. While talking heads on cable news shows debate the blame for the drop in oil prices, and predict how and when they will go back up, those of us in the middle of the issue continue to press on. I talk to companies and business owners every day, and yes, we are aware of the price fluctuations in crude oil. But most people I interact with are taking Aaron Rogers’ advice. The price of oil will go up, and it will go down, just like your retirement fund. You can’t control it, but you can plan properly. The transition from “boomtown” to “hometown” continues. Come find out for yourself. We’ll still be here. w

building better in the bakken offering an entire region of choices

Bison Run Twin Homes - foR RenT 3 Bedroom / 3.5 Bath Fully furnished with flat screen TV Appliances, linens and housewares Large two vehicle garage Washer and dryer Wide paved roads

Bison Run Sales Office Monday - Friday: 9 AM - 5 PM Saturday - Sunday: 11 AM - 4 PM 205 25th Ave NE Watford City, ND 58854 Stop by or call M SPACE to schedule an appointment!


roud of our North Dakota roots, MBI Energy Services holds family values and quality customer service as the essential pillars of success in the Williston Basin.


PREMIER LOW-EXOTHERMIC SPRAY FOAM Geolok is a leading closed-cell polyurethane spray foam designed specially to generate less heat than typical closed-celled spray foam. Geolok is highly sought after to stabilize soil and pipelines, manage erosion and minimize runoff and washout. The low-exothermic product applies quickly and is optimum for flood prevention and has no breakdown once backfilled. Safety concerns are also minimized as it only takes two workers to apply Geolok, as compared to a multi-man crew needed for manual labor of laying sandbags.

COMMON USES FOR GEOLOK: Rock Shield/Guard Soil Stabilization Sinkholes Pillows Pipelines

© 2015 Demilec USA, (877.336.4532) | 817.640.4900 | |


Preserving our state’s resources By Jon Godfread, vice president for government affairs, Greater North Dakota Chamber As North Dakotans representing North Dakota businesses, we care deeply about the conservation of our state. With so many of our leading industries dependent upon the state’s abundant natural resources, caring for our “bread & butter” couldn’t be more important. Home to more wildlife refuges than any other state, North Dakota’s tourism industry depends on the maintenance of our natural resources. With agriculture responsible for nearly onefourth of North Dakota’s economic base and accounting for 25 percent of all jobs, conservation practices are at the heart of our state’s priorities. And finally, with the recent oil boom in the Bakken enhancing the profile of our state’s leadership, we are all fully aware that to sustain our economic prowess, we must protect our resources. Our state leaders knew this when they created the Outdoor Heritage Fund in August 2013. With a board of 12 voting and four non-voting members appointed by Governor Jack Dalrymple,

Claim Post Resources is an emerging company in the oil and gas services sector. The company is focused on becoming a leading provider of premium white silica sand proppant to oil and gas operations in the Bakkens, Montney and Horn River basins. Tel: 416-203-3776 | Fax: 416-203-1254 903 - 141 Adelaide Street West Toronto, ON M5H 3L5 24


they developed an application process and established deadlines for five rounds of applications during the 2013-2015 biennium. In total, the Industrial Commission has awarded $14,110,400 of funding. This amount is being leveraged with other funding sources for a total of $73,337,336 being expended over the next 10 years on directives established by the legislature for the benefit of our state’s outdoor heritage. With projects ranging from soil conservation, watershed restoration, to campground expansion, playground equipment and recreational access, the fund is serving its purpose well through meeting funding needs for diverse projects. The success of the Outdoor Heritage Fund and anticipated plans for changes to the process and funding amounts is one main reason the GNDC fought so hard against Measure 5 in the November election. Measure 5 would have constitutionally mandated five percent of North Dakota’s oil and gas extraction tax into a fund managed by an appointed advisory board. The fund would be used for conservation purposes which would include the option to buy land with the money. The measure also came with a requirement that at least 75 percent of those dollars be spent each year. Given the fluctuations common to the oil and gas industry, this measure would’ve been horrible for North Dakota. Our state has several transportation and infrastructure needs that would go largely unmet with money tied up in a fund like this. To make matters worse, we’d be stuck with the plan for a minimum of 25 years considering it was proposed as a constitutional mandate. Ultimately our citizens’ voices were heard loud and clear with an 80-20 defeat of the measure. North Dakotans understood that we have a plan for conservation and that it’s working. It’s called the Outdoor Heritage Fund. Always striving for improvement, the 64th legislative assembly heard HB 1409, which addresses funding and purposing the ND Outdoor Heritage Fund. The bill more clearly defines what the Outdoor Heritage Fund can and cannot be used for, as well as the powers of the commission. The bill also changes the gross production tax revenue credited to the Outdoor Heritage Fund from $15 to $25 million per fiscal year, and changes the maximum amount credited to the fund per biennium from $30 to $50 million. Visit the Outdoor Heritage Fund website to learn more about the fund and how to apply for funds toward a conservation project – w

• Personal service, professional performance • Highly skilled, experienced personnel • State-of -the-art technology & equipment • Positive Pulse MWD & High Performance Drilling Motors • Committed to your success

w w w. m i l l e n n i u m d i r e c t i o n a l . c o m

Calgary, AB Ph: (403) 264-8206

Carlyle, SK Ph: (306) 453-2533

Leduc, AB Ph: (780) 986-3309

Denver, CO Ph (303) 228-7156

MDU resources

Natural gas volumes delivered through the company’s 3,800-mile pipeline system have increased nearly eightfold since the company was launched in 1985. Now, in 2015, WBI Energy is celebrating 30 years of operation as a business unit of MDU Resources Group.

WBI Energy celebrates 30 years of operation 2015 marks significant anniversary It was 1985. Ronald Reagan was president and George H.W. Bush was vice president. A movie called Back to the Future broke box office records and the San Francisco 49ers won Super Bowl XIX.

separate entity within the larger corporation would officially

Meanwhile, in North Dakota, a new company within a corporation called MDU Resources Group was born and begun operations. Its name? Williston Basin Interstate Pipeline Company.

Williston Basin Interstate Pipeline Company to acquire the

But, the funny thing was … it really wasn’t a “new” company. What Williston Basin was doing in natural gas pipeline operations, they had been doing since the early 1930s. What was new is that they broke out as a separate company.

Company would be a subsidiary of MDU Resources Group and

Prior to becoming Williston Basin, the corporation’s interstate natural gas pipeline operation was part of Montana-Dakota Utilities Co. More specifically, they were a department of the utility operations known as the P & T Department, short for production and transmission.

federal regulatory oversight,” said Steven L. Bietz, president and

The designation of the company’s pipeline operations as a

efficiency perspective, this made a lot of sense.”



occur with a regulatory order from the Federal Energy Regulatory Commission, issued on February 13, 1985. The order authorized interstate pipeline assets of Montana-Dakota Utilities Co. retroactive to January 1, 1985. Williston Basin Interstate Pipeline Montana-Dakota Utilities Co. would be a division of the same corporation. “We were operating an interstate pipeline system that required CEO of WBI Energy. “At the time, however, our regulations came from four separate state commissions, plus the federal agency. Creating a separate company meant that regulation would be accomplished by the federal agency alone. From an operational


Vernal, UT * Grand Junction, CO Farmington, NM * Williston, ND Bloomington, IL * Eaton, CO



MDU resources

Here’s an amazing statistic. Eleven percent of WBI Energy’s workforce has worked for the company for 30 years or more. That’s 41 people! According January 2014 statistics from the U.S. Department of Labor’s Bureau of Labor Statistics, the median number of years that wage and salary workers had been with their current employer was 4.6 years. WBI Energy’s median years of service is nine years – nearly double the national rate. Fast-forward 30 years and the employees of the company find

available from the increasing volumes of natural gas being

themselves celebrating three decades of operations as a separate

produced in the region.

business unit of MDU Resources Group, Inc. Through its long history, Williston Basin Interstate Pipeline Co. has grown into a premier pipeline and energy services company, with over 3,800 miles of regulated pipeline spanning large sections of four states. It also added various non-regulated businesses, and in 2012 changed its name to WBI Energy to better align with its diversifying operations. The regulated pipeline business was renamed WBI Energy Transmission, Inc. Natural gas volumes delivered through the company’s pipeline system have increased nearly eight times since the company was launched in 1985. Much of this growth is attributable to the surge in activity in western North Dakota’s Bakken shale play, where the company’s legacy pipeline has been operating for more than half of a century.

“Our activity to connect natural gas processing plants to Northern Border Pipeline, along with increasing demand for natural gas in the region, has driven total system capacity growth,” Bietz said. “The effect of these annual additions to capacity through new pipeline construction and additional compression was steady.” Bietz noted that in 2012 a significant benchmark was reached when total system capacity on the pipeline exceeded one billion cubic feet of gas per day. “We are celebrating our 30th anniversary, and while it’s great to look back on what we’ve done, we also want to look ahead,” Bietz said. “We continue to pursue growth with plans to invest $1.1 billion in infrastructure projects over the next five years. Investments will be focused not only on expanding our existing operations, but in areas aligned to our core expertise. There is no

“Organic growth and growth through acquisition fueled our

greater example of this than our ownership and operation of the

strategy through the 1990s,” Bietz said. “When the Bakken oil play

first greenfield diesel refinery to be built in the nation since the

was expanding in the mid-2000s, and with our legacy operations

late 1970s.”

in the heart of western North Dakota, we were well-positioned for more growth and expansion.”

WBI Energy, along with Calumet Specialty Products Partners, is building Dakota Prairie Refining near Dickinson, North Dakota.

With the company’s pipeline and energy services weaving

Construction on the facility began in March 2013 and is expected

through the heart of the Bakken, other opportunities became

to be in commercial production in the second quarter of 2015. w

About WBI Energy WBI Energy, Inc. provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering and other energy-related services, through regulated and non-regulated pipeline systems primarily in the Rocky Mountain and Northern Great Plains regions of the United States. It is constructing the Dakota Prairie Refinery to refine Bakken crude oil to produce diesel fuel in Western North Dakota. WBI Energy is an indirect subsidiary of MDU Resources Group, Inc., a multidimensional natural resource enterprise traded on the New York Stock Exchange as “MDU”. For more information about WBI Energy, visit the company’s website at 28


Stay Out of the Box!


Your goal is to hydraulic fracture safely and quickly... Avoid down-time, enhance up-time, and stay in the game with Dixon! One-piece products for ‘Low Pressure Systems’ with no welds, no threads and no leaks. Find out more at Dixon_power play_Boss LPS_intake manifold_Bakken Oil Report_Spring 2015.indd 1

2/5/2015 8:20:06 AM


Emergency SiteProtection

When Minutes Count, We Are Seconds Away

On-site Oilfield Firefighter & Emergency Response Services Protecting Your Employees & Your Assets

On Location in North Dakota, Louisiana, Mississippi, Ohio, Oklahoma, Texas & West Virginia

Emergency Site Protection速, LLC provides emergency first responders to oilfield sites around the world. Especially in remote areas where local first responders are not nearby or where it may take an extended time for them to get to location, the 24/7 presence of our trained first responders is invaluable for helping to prevent loss of life and property in medical or fire emergencies. We also provide rescue teams for confined space entry, H2S equipment and general safety training. In addition, we provide training for compliance with company, local, or national standards to help you maintain a higher level of safety at your worksite. When minutes count, we are seconds away! Exposure to hazards at oilfield locations have increased as activity and technology has advanced. The horizontal drilling and multi-stage fracturing campaigns which are now commonly being used for unconventional oil and gas wells have resulted in a large number of personnel remaining on location for extended periods of 24-hour coverage. These types of operations significantly push the man hours on location higher than those which were common in the past, resulting in increased safety exposure. Further, the boom in the oilfield service sector has led to an increase in the presence on location of inexperienced personnel who may lack the necessary training to operate effectively and safely. The presence of ESP personnel at your location can help you to significantly reduce these risks. ESP helps raise safety awareness on location through targeted training, risk analysis, auditing, leadership, and on site experienced first responders. ESP provides a safety net to assist your operations by allowing the workers on your locations to remain focused on their jobs, and not ours. By using ESP, you can reduce the likelihood and consequences of incidents and increase the profitability of your assets while improving safety for the local community and your employees.



Bakken production stays the course amid falling oil prices


By Lisa Fattori

Williston, ND has seen its population almost quadruple in the last six years. The city is currently experiencing a building boom, which includes the $55-million Williston High School.

Uncertainty and speculation surrounding the freefall in oil prices

While price volatility negatively impacts oil producers, consumers

have some analysts forecasting a low of $20 per barrel, before

are benefiting from lower energy costs. As of February 9th, the

prices resume an upward climb. By January 2015, U.S. oil prices

EIA reported the U.S. average price for gasoline was $2.19 per

had halved in just seven months to below $50 per barrel, hitting

gallon, which is $1.12 per gallon less than the same time last

a six-year low. While oversupply and stockpiling continue to

year. This translates into savings of approximately $750 per U.S.

suppress prices, producers will be forced to cut capital spending,

household. Diesel fuel prices are also down $1.14 per gallon, less

improve efficiencies and focus on more lucrative oil plays.

than the same time last year, and the prices for residential heating

Slowing economies in China and Europe, combined with OPEC’s decision not to curtail production, have contributed to rising global oil inventories. At the same time, U.S. oil production levels are at their highest in almost 30 years, with U.S. Energy Information Administration (EIA) forecasting an output of 9.3

oil and residential propane are down $1.33 per gallon and $1.40 per gallon, respectively. From consumers to commercial drivers and manufacturers, lower energy prices are increasing savings, which is expected to stimulate spending and positively impact the U.S. economy.

million barrels per day in 2015 and 9.5 million barrels per day in

Hydraulic fracturing and horizontal drilling have revolutionized

2016. EIA also forecasts an average Brent crude oil price of $58

shale production in the U.S., dramatically increasing domestic

per barrel in 2015 and $75 per barrel in 2016.

supply. The technology spurred the current Bakken boom

Downtown Williston under construction in fall 2014.



Groundbreaking of the new Williston High School.

Flexamat is a tied concrete block mat used to control erosion in swales, ditches, slopes, shoreline protection or any area where soil sediment can be moved by water runoff. Learn more at Brock White is your source for oil and gas industry products. Contact a Brock White sales representative today for more information on these products or to request a quote. • Tensar® Geogrids • Propex® Geotextiles • NAG® Erosion Control Blankets • SiltSoxx • Steel Culverts

• Straw Wattles • Bird Netting • Conwed Safety Fence • Rufco LLDPE • Grouts

• Concrete Accessories • Sonotubes • Chemical Anchors • Mat Inc Hydromulch • ENCAP Pam 12

REGINA 1305 Pettigrew Ave E Regina, SK S4N 5W1 306-721-9333

SASKATOON 803 - 48th Street E Saskatoon, SK S7K 0X5 306-931-9255

Construction at Sand Creek.

and the opportunity to access an estimated 20 billion barrels of recoverable oil. Ranked second behind Texas as the largest oil producing state in the country, North Dakota produced its billionth barrel of oil in June 2014. Despite lower oil prices, Bakken production is expected to hover around one million barrels per day in 2015. “North Dakota has propelled the U.S. to become the largest producer in the world, surpassing Saudi Arabia and Russia in oil and gas production,” says Kathleen Sgamma, VP government and public affairs for Western Energy Alliance. “At the same time that consumers are enjoying lower prices at the pumps, the industry is tightening its belt. Oil companies are improving their efficiencies, technologies and practices, so that they can do more with less.”

As a key oil play in the U.S., the Bakken is the focus of a lot of attention in the wake of the downturn in the energy sector. Bakken crude earns approximately $15 a barrel less than in other parts of the country, due to the lack of refineries to process the oil. Producers also have the added expense of complying with the North Dakota Industrial Commission’s (NDIC) gas capture plan rule, which was implemented in June 2014. Bakken oil tax incentives, however, including production triggers on new and existing wells, will help offset the higher costs associated with shale production, and enable oil companies to cover daily cash costs as they maintain current production levels. “The Bakken is one of the more expensive plays, so oil producers will feel the effects of lower prices more,” says Tom Bokowy, a

THE ONLY SAFETY ORIENTATION FOR THE PIPELINE INDUSTRY Developed by PEC Safety and Veriforce specifically for the Midstream/Pipeline segment of the Oil & Gas Industry, Introduction to Pipeline module was created to enhance PEC Basic Orientation, the most widely used safety orientation for the oil and gas industry. Introduction to Pipeline Benefits • Customized PEC Basic SafeLandUSA for Midstream • Instructor Led or Computer Based Training (CBT) • Student is issued an ID card • Training is automatically entered into PEC’s training database Instructor Led – Available through PEC Safety’s Nationwide 3rd Party Trainer Network To find a trainer in your area visit: Computer Based Training (CBT) – Available in Veriforce’s Online Safety Training Library To gain access to CBT Introduction to Pipeline visit: Become a PEC Safety Trainer and Train Your Own Employees To learn more about becoming a PEC trainer visit: Midstream Topics Covered in Introduction to Pipeline • Agencies and Regulations Relating to the Pipeline Industry • Preparation for Pipeline Transportation • Pipe Handling • Hazardous Materials • Transportation of Hazardous Materials • Equipment Operation and Maintenance • Excavation and Guidelines for Pipeline PEC Safety | 866.647.2338 | | 34


*Prerequisite: PEC Basic Orientation, Basic/10, or Core Compliance

Professional Archaeology and Paleontology services for the oil & gas industry with two offices serving the Great Plains and Rocky Mountain area.

Professional Archaeology and Paleontology services for the oil & gas industry with two offices serving the Great Plains and Rocky Mountain area. Our services include: • NEPA & NHPA compliance Ourassistance services include: • Archaeological inventories • NEPA & NHPA compliance • Paleontology inventories assistance • Native American consultation • Archaeological inventories • Architectural history • Paleontology inventories • Preservation compliance • Native American consultation • Interdisciplinary GIS mapping • Architectural history and geoprocessing analysis

• Preservation compliance • Interdisciplinary GIS mapping 701-663-5521 | and geoprocessing analysis

701-663-5521 |

Bismarck, ND

Bismarck, ND

Denver, CO

Denver, CO



Steve McNally, general manager of Hess Corp. in North Dakota, was a guest speaker at the MonDak Energy Alliance meeting in Williston during February 2015. The meeting was an opportunity to educate the public and legislatures about all the activity going on in the Bakken. McKenzie, Williams, and Mountrail. According to NDIC, in the second week of February, rig count for North Dakota was 137, with 127 of the rigs located in these four counties. Total rig count is down from 192 the same time last year and the all-time high of 218 on May 29, 2012. NDIC reporting shows that November 2014 production reached a new all-time high of 1,187,206 barrels per day, when sweet crude was fetching $60.61 per barrel.

partner at consulting firm Cost and Capital Partners LLC in Boston and Sandpoint, Idaho. “Hydraulic fracturing and horizontal drilling are more labour intensive and require more materials to extract oil. When oil is $100 a barrel, then it’s economical to drill shale. Right now, however, it’s much more expensive to get oil from a shale play than traditional tight wells.” In Williston, the epi-centre of oil activity in the Bakken, oil companies are focusing on the four core counties of Dunn,

We’ve got the Oil Field Supplies you need, where you need them.

Analysts predict that U.S. oil companies will cut their capital spending by approximately 30 per cent in 2015. In the Bakken, Hess Corporation announced in January a spending cut of 18 per cent, while ConocoPhillips and Marathon Oil are both reducing capital spending by 20 per cent. Continental Resources is trimming its spending by 40 per cent and is reducing the number of rigs in operation by a third. Despite a significant scaling back on capital projects, North Dakota is not experiencing massive lay-offs. According to the North Dakota Workforce Intelligence Network, the state’s seasonally adjusted unemployment rate for December 2014 was 2.8 per cent, just one-tenth of a percentage point higher than the same period last year, and well below the nation’s seasonally adjusted unemployment rate of 5.6 per cent for the month of December. The 2,500 job listings posted by Williston Job Service mid-January confirms that the impact of lower oil prices has not yet trickled to local job markets. “Right now, we have 40 rigs that have been laid down, and are waiting in storage for the market to change,” says Andy Peterson, president of the Greater North Dakota Chamber in Bismark. “Each

WORKING TOGETHER TO MAKE HAZARDOUS PIPING SAFER. PLIDCO® a global leader in pipeline repairs & maintenance since 1949 n Our quality fittings, installed by your personnel; saving downtime and money n Stock & custom fittings available n Made in the USA


• 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

“Permit activity usually slows down this time of year, but we haven’t seen 137 rigs since July of 2010,” says Alison Ritter, public information officer for NDIC. “We won’t get a full understanding of the impact of reduced rig counts in the first two months of 2015 until March or April. At the beginning of January, we created a scenario of the possible impact that price would have on rig count. We predicted 140 rigs, with oil at $55.00 per barrel, so we’re hanging right around that figure.”

440-871-5700 Trust the Original. Trust PLIDCO ®




IN THE POND Above Ground Water Storage Systems

Easy build and breakdown n Storage up to 132,000 barrels n Well-engineered for transport n Lower transport and install costs n One truck delivery for most ponds n

C-Ring™ Secondary Containment Systems also available. 800-665-2099

rig supports 120 jobs, but companies want to protect their most

a breakneck speed and are still five years behind the game in

talented and expert employees. No one is panicking. Some of our

building infrastructure. We’d rather be in front of the growth than

members are saying that this is an opportunity to reduce 10 per

behind it, and now is the time to play catch-up. You won’t see a

cent of their workforce – people who were hired when demand

massive exodus from the Bakken, so we’ll weather the storm.”

was high and who stayed on even though they weren’t really

Initiatives to improve takeaway capacity, adopt new technologies,

needed anymore. Companies are also looking for cost savings

and further develop the region’s energy resources are also forging

from their suppliers. We’ve had some significant inflationary

ahead to achieve long-term goals, independent of oil price

pressures, so we should see a massive re-setting of prices, which

volatility. On February 12th, the MonDak Energy Alliance and the

is good for the industry.”

Williston Chamber of Commerce teamed up to offer a networking

At the grassroots level, a slowing down in the energy sector is a

and educational event in Williston. The agenda included project

welcome respite for Bakken communities that have been racing

updates on BNSF’s rail expansion, as well as the Western Area

to build infrastructure to support a surge in population. Rated the

Water Supply Project, which will meet the municipal, rural and

nation’s fastest-growing micropolitan city for the last three years,

industrial needs of northwestern North Dakota. Other keynote

Williston has seen its population almost quadruple in the last six

speakers addressed the current state of the oil and gas industry,

years, and has experienced a building boom, with a number of

employment opportunities and the progress of Montana-Dakota

projects still on track toward completion. Major capital projects

Utilities Resources’ new refinery.

include a $105-million wastewater treatment expansion, a newly completed $72-million recreation centre, a new $56-million high school and a $230-million airport scheduled to open in 2017, which will be twice the size of Williston’s current airport. The community has had 18 new restaurants open in the past two years, as well as retail stores and new home construction.

“This MonDak meeting was an opportunity to educate the public and legislatures about all the activity that is going on in the Bakken,” says Ken Callahan, president of American Petroleum Institute, Williston Basin Chapter. “Everyone is always expecting a boom or bust, but this is an industry that will be here for a long time. Lower oil prices have caused a hiccup in the system, or a

“In the last three years, we’ve had hundreds of millions of dollars

market adjustment, which has forced people to take a hard look

invested in infrastructure, including the building of roads to

at how they can cut costs and improve their operations. There are

create connectivity,” says Shawn Wenko, executive director of

over 450 service companies operating in the Bakken and they are

Williston Economic Development. “We’ve been going at such

here to stay.” w

Safety, Stewardship, Savings

A multi-sensor detection platform that works with gas & non-gas sensors (LEL, H2S, CO, Flir camera, video, flow, RPM)

• fully capable to work in both old and new gas fields • communicates 24/7 real-time data directly to supervisors • low-power and cold-weather (-40F) • capable of automatically responding to prevent dangerous conditions

(844) ALERT PLUS [844-253-7875] e: | 38





Full-speed ahead for U.S. LNG industry

By Melanie Franner


Thanks to its growing shale gas industry, the United States is well

relatively small contribution to the U.S. gross domestic product

on its way to becoming a significant exporter of liquefied natural

(GDP) and trade balance. All of these factors point to a positive

gas (LNG). Numbers from the Energy Information Administration

outlook for a competitive U.S. LNG export industry.

show that shale gas production in the U.S. totaled 4.87 trillion cubic feet (tcf) in 2010. Industry estimates suggest that the total amount of technically recoverable shale gas resources range from approximately 700 tcf to more than 1,800 tcf. Regardless of which figure proves to be accurate, it would seem that there is more than enough shale gas available for the U.S. to become a serious

And already, there are several proposals in the works for the development of the liquefaction facilities necessary for the export of increased quantities of LNG. Each proposal requires approvals from the federal government, as well as energy and environmental regulators.

contender in the global LNG export market.

“There are approximately 50 proposals on the table for North

Is it feasible?

Stratas Advisors. “But not nearly as many as that will actually

The results of a year-long study undertaken by the Brookings Institution Energy Security Initiative (ESI) show that increased LNG exports from the United States are “technically feasible”. The

America,” states Tom Campbell, director, LNG & gasification, come to fruition.” The market

question then becomes one of examining the likely implications

According to Campbell, 2014 saw 246 million metric tonnes

of these increases.

of LNG traded globally. That’s an increase of six million metric

The ESI study found that increased U.S. LNG exports are likely to

tonnes from 2012.

have a “modest upward impact” on domestic natural gas prices

“It’s been kind of a one-way flow over the past several years to

and a “limited impact” on the competitiveness of the U.S. industry

the Asian markets to countries like Japan, China, Taiwan, and

and job creation. It also suggests that the industry will make a

even South Korea,” he says. “Other major markets of significance



Superior products. Superior service. Oilfield Improvements, Inc., doesn’t just sell the highest-quality Wheeled Rod Guide™ couplings in the industry, we invented them. And our sucker rod centralizers set the standard for superior performance in Oilfield Improvements, Inc., doesn’t just sell the highest-quality Wheeled Rod Guide™ the field. With more than 27 years of outstanding service and satisfied couplings in the industry, we invented them. And our sucker rod centralizers set customers worldwide, we’re the one to call. the standard for superior performance in the field. With more than 27 years of outstanding service and satisfied customers worldwide, we’re the one to call. Oilfield Improvements™ ULTRA-FLOW™ Sucker Rod Centralizers/Paraffin Scrapers • • • • • •

tubing Full-circle wiping of I.D. gripping More force on sucker rods, more Longer useful life Positive wear indicator Superior hydroplaning effect installation Designed for


Oilfield Improvements™ Wheeled Rod Guide™ Couplings • • • •

Decreased workover costs Reduced down time Greater tubing service life installation Designed for

Oilfield Improvements™ free computerized analysis of the well deviation survey to define side loading and drag & to recommend the best placement.

P: 918.250.5584 or 1.800.537.9327 • email:

Oilfield Improvements™ ULTRA-FLOW™ Sucker Rod Centralizers/Paraffin Scrapers • Full-circle wiping of tubing I.D. • More gripping force on sucker rods, more fluid flow-by volume • Longer useful life • Positive wear indicator • Superior hydroplaning effect • Designed for field installation Oilfield Improvements™ Wheeled Rod Guide™ Couplings • Decreased workover costs • Reduced down time

• Greater tubing service life • Designed for field installation

Oilfield Improvements™ free computerized analysis of the well deviation survey to define side loading and drag & to recommend the best placement.

P: 918.250.5584 or 1.800.537.9327 email:

include Spain, France and England, but the gold standard for a long time now has been the Asian markets.”

pricing seems to be well accepted by the Asian markets in

Campbell attributes the strong Asian markets to a combination of the aftermath of the Japan Fukushima disaster and to a push from China for more environmentally better energy alternatives.

Although some industry pundits have predicted 50-plus U.S.

“We saw an almost unprecedented level of LNG going into the Asian markets,” he explains. “This has slowed down significantly over the last couple of years, as Japan began to realize that it couldn’t sustain the level of LNG imports and China realized the expense associated with an environmentally better energy source.”

“Building these projects is becoming increasingly more

To date, several U.S. LNG export projects that have been approved – and are currently under construction. These include: Cheneire’s Sabine Pass export plant in Sabine Pass, LA; Sempra’s Cameron export plant in Hackberry, LA; Freeport LNG’s export terminal in Freeport, TX; and Dominion’s Cove Point export terminal in Cove Point, MD. All four of these facilities are existing LNG import terminals that are adding liquefaction capability. They join the existing ConocoPhilip’s export terminal in Kenai, AK.

these will be in the U.S., with a couple in Canada.”

The Sabine Pass facility will be online initially in 2015 and, by the end of 2016, will be producing 18 million tonnes per annum (mtpa). Cove Point and Cameron are expected to come online in 2018, with 5.25 mtpa and 12 mtpa respectively. And Freeport is anticipated to start up between 2018 and 2019, and to produce 13.2 mtpa. “The interesting thing about the U.S. projects is that they are using a unique method of pricing,” states Campbell. “In the past, the pricing has been tied to the price of crude oil, but with the U.S. facilities, the price will be based on natural gas. The new 42


particular. People have already signed contracts.”

LNG projects in the next few years, Campbell is adamant that the “realistic” number is much, much smaller.

expensive,” he states. “We can see how Australia has suffered massive cost overruns with their facilities. In some cases, it’s an issue of competing for skilled labor and in others, it’s rural area locations. Our projection is that by 2030, North America will have between five to 10 LNG export facilities in production. Most of

Campbell also points out that the recent drop in crude oil prices has not really affected any of the new builds, at least not the feasible ones. “The U.S. crude oil prices have not deterred new builds, but it was the final nail in the coffin for those projects that were unrealistic in the first place,” he says. “This industry is not being hurt by crude oil pricing. It is emerging in the way a lot of industry experts thought it would. All that’s getting dashed are unrealistic expectations.” As the global LNG export market continues to heat up – Papa New Guinea and Australia are good examples of two recent newcomers to the market – the U.S. is positioning itself for slow and steady growth in the years to come. “We predict that the U.S. will become one of the prime exporters in the global LNG market within the next 10 years,” concludes Campbell. w

Bobcat of Miles City

Rex L Loomis | Sales/General Manager 2324 S. HAYNES AVENUE | MILES CITY, MT 593 800.322.7817 406-874-bcat | 406.351.3641 C

Scan this code to contact us.


Colorado oil and gas proposals: Powder keg or procedural nightmare? By Michael Sandoval For the past six months, the 21 members of Governor John Hickenlooper’s oil and gas task force have traveled across the state of Colorado, worked through a half dozen meetings, met hundreds of community members, listened to scores of speakers, and endured dozens of presentations. This blue-ribbon commission was the “compromise” the governor said, for a contentious and costly battle at the ballot box in November 2014. Four ballot measures, both pro-and antiindustry, and backed by powerful politicos--including Democratic Congressman Jared Polis--appeared to be headed toward an inexorable face-off. Anti-fracking environmentalists, backed by Polis, pushed two initiatives that would have established a new setback for oil and gas operations and called for an environmental bill of rights, allowing “more restrictive and protective” local laws and regulations to supersede state regulations. The two pro-industry measures represented a reaction to the dozens of proposals that had earlier flooded the ballot measure process. They included adding a fiscal note for any citizen ballot measure to show costs to taxpayers, and ensuring that local governments enacting rules that prohibited oil and gas development would no longer receive state tax revenues derived from areas allowing development elsewhere in Colorado. The governor’s compromise gambit has held, for the time being. The ballot measures disappeared from November’s vote, and so far only one bill--HB 1119--introduced in the 2015 session of Colorado’s legislature, would address mineral royalties liability under a local fracking ban. But the can kicked down the road last August could become a powder keg late in the legislative session, or another round of ballot battles in the fall, if the task force’s recommendations draw more heat than agreement.

Making recommendations By the end of the February, the task force members will decide how many of the more than 50 regulatory and legislative proposals that have been introduced by task force members will move on to the governor’s office in the group’s final report, as they deliver their suggestions for “fixing” the regulatory environment for Colorado’s oil and gas development, and more specifically, hydraulic fracturing deployment. At the penultimate meeting of the task force, comprised of local government officials, industry executives, environmental activists, and other “concerned” community members, a handful of proposals appeared to be headed for inclusion in the report to be delivered into the governor’s hands. On January 30, Governor Hickenlooper sought to clarify some confusion within the members of the task force about just which proposed measures should be passed on -- would it be those with two-thirds of the vote, or a much broader portfolio of measures obtaining a simple majority. “I want to make sure that my expectations and charge to the task force are clear. The executive order recognized that these issues are complex and encompass a vast spectrum of views and ideas of the people in this group. Therefore, consensus on all proposals may not be possible. Consistent with the executive order, I encourage you to strive to achieve support from two-thirds of the task force membership on as many proposals as possible, regardless of whether the implementation tool is legislation, regulation, policy, or allocation of human or other resources… However, as it states in the executive order, I also expect to receive reports on each of those items on which a two-thirds vote is not obtainable,” Hickenlooper wrote to task force members. In essence, of the 56 different items for consideration at the task force’s ultimate meeting on February 24, all were forwarded to the governor for consideration, separated into “majority”

In essence, of the 56 different items for consideration at the task force’s ultimate meeting on February 24, all were forwarded to the governor for consideration, separated into “majority” and “minority” reports. Those proposals reaching 14 votes will automatically be included in the official final report. 44


Financial Advisor

Troy Nelson on being named No. 1 in North Dakota on the Barron’s “Top 1200 Financial Advisor Rankings” for the fourth consecutive year. Troy has been a Financial Advisor since 1998 and is proud to serve the Northern Great Plains.

Troy Nelson 1701 Burnt Boat Drive Bismarck, ND 58503 701-255-1196

Barron’s magazine, “America’s Top 1200 Financial Advisors, State by State,” Feb. 22, 2014. Financial Advisors’ rankings were based upon various criteriaincluding but not limited to: industry experience,assets under management, revenue produced for the return on assets, client satisfaction/retention,regulatory/compliancerecord, quality of practiceand philanthropic work. The rating may not be representativeof any one client’s experiencebecause it a sample of all the experiences of the Financial Advisor’s clients and is not indicativeof the Financial Advisor’s future performance. Neither Edward Jones nor any of its Financial Advisors pay a fee to Barron’s in exchangefor the rating. Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. For more information on ranking methodology,go to



Member SIPC

Member SIPC



and “minority” reports. Those proposals reaching 14 votes will automatically be included in the official final report. Members of the task force told the Denver Business Journal’s Cathy Proctor that even with such a high number of items up for discussion, there is concern that the task force might miss the mark on addressing some of the key issues that gave birth to the task force in the first place. “I think there’s a lot on the table, I hope we can address the underlying issues: local authority and the ability to address issues in communities, the large facilities, and the health and the safety issues,” Jon Goldin-Dubois told Cathy Proctor of the DBJ. GoldinDubois is the president of Western Resource Advocates. “I have concerns that we seem to be stepping around the major issues at the heart of the conflict,” he said. Others, like Anadarko Petroleum’s Brad Holly, senior vice president for the Rocky Mountain region, believe that the task force’s diverse membership would deliver some proposals that have “unanimous” support from the group, and that everyone was “committed to the process”. On the table Among the most promising of the proposals, in terms of initial task force support would be a legislative fix to add to the staff of the Colorado Oil and Gas Conservation Commission (COGCC) to increase frequency of inspections, handle permitting more efficiently, and enhance the commission’s ability to handle additional work as the state’s oil and gas surge continued. At least four of the proposals dealt with adequate COGCC staffing concerns, with one hoping that this would “improve local government understanding”, while another believed it would “enhance the public’s confidence in the agency’s ability to timely inspect well, enforce violations of commission rules, and respond to complaints and spills”. Another area of agreement appeared to be the call for additional health studies of the effects of oil and gas development in Colorado. Additional studies, whatever their merit, can often have substantial price tags, and often require a considerable amount of time to conduct -- a fact acknowledged in one proposal that suggested shutting down oil and gas activities until the Colorado Department of Public Health and Environment “is able to complete a comprehensive assessment of the effects of these activities on the public health”. “Colorado citizens need to be assured that fracking is safe before it is allowed to continue,” wrote task force member Jim Fitzgerald, who is a rancher and activist. “Much doubt and confusion exist in the subject of health effects of oil and gas chemicals and activities. This is caused by many 46


factors, not the least of which is a lack of good data. There is no substitute for good professional inquiry using the best science and broad dissemination of trusted health information to prevent misunderstanding and to prevent harmful exposures and disease related to toxic substances. Ordinary people are entitled to know if their health is at risk and they are also entitled to know that their health is not at risk. Knowledge is the best tool to prevent fear and fear-mongering,” wrote task force member Russ George, a former speaker of the Colorado State House and executive director of the Department of Natural Resources. George’s proposal, one of at least three, called for up to 10 different studies ranging from cancer and asthma risk to toxicity of fracking chemicals used. A similar proposal demanded that decisions be made “based on data, not conjecture or spin”. Other proposals floating to the top: state clearinghouse for oil and gas industry information, conducting studies related to oil and gas industry truck traffic, and creating a “dispute resolution or mediation process” between entrenched local governments and operators unable to reach agreement independently. Grab bag From enhancing public safety to reducing truck traffic, calling for additional studies or reporting the amount of water used in oil and gas operations, the oil and gas task force members must draw up a menu for the governor, legislature, state agencies and interested parties among industry and activists alike to chew on over the coming weeks and months. Legislative fixes are no guarantee, given a divided legislature -- Democrats control the State House and Republicans hold the State Senate. In addition, the legislative session itself ends May 6. Proposals requiring expansion of state agencies and additional staff, or other fiscal layouts, could languish until 2016. Controversial legislative action, or failure, could lead to proposals becoming the latest round of ballot measures locally in 2015 or statewide in 2016. Hickenlooper may seek to implement proposals from the final report, or even the minority report, through executive action. This could invariably draw reaction by legislators or precipitate its own ballot battles. However, and if ever, any of the oil and gas task force’s proposals make their way to Colorado’s regulatory environment, the future of an industry critical to the state’s economic progress remains as changeable as Colorado’s infamous unsettled weather. Michael Sandoval is an energy policy analyst and investigative reporter for the Independence Institute, a free-market think tank based in Denver, Colorado. w

Bakken housing provides challenges, innovation Man camp under construction.

By Rebecca Colnar When the Bakken started booming several years ago, one of the main concerns focused on housing. Men coming to work couldn’t find housing, so some resorted to living in cars or getting help from local churches. The area responded by having a high-intensity building boom with hotels, apartments, townhouses and houses being constructed to meet evergrowing demands. “Man camps” featuring rows of houses for working men, some complete with communal dining halls and laundry areas, were a hot commodity, as well. Some companies provided worker houses for the men, which solved some challenges, but weren’t practical if families

were moving in. The energetic building boom helped alleviate some of the housing discomfort, and today there is more availability. There is, however, still a challenge: affordability. “The prices are quite high for homes. Houses in the ‘lower’ price range – and lower in the Bakken is around $250,000 – are extremely minimal,” notes Kassie Gorder, president of the Williston Board of Realtors. “The infrastructure is still in the development stage. We still see apartments being built, along with townhouses and single-family homes, and there are more developments in the pipeline, so to speak.”

Gorder notes that almost everyone is looking for the same thing – a nice house for less than $300,000. “In addition, a lot of times the lowerpriced houses that are in the $200,000 price range are being purchased by someone working through a VA or FHA loan,” the realtor explains. “The problem is most of these homes are older and need work, so they are difficult to finance. You have people looking for a house under $250,000 and some who are looking under $350,000, but that inventory is hard to find.” She explains that with the low oil prices and possible slowdown in the Bakken economy, people are being a little more cautious now about house hunting, which she sees as a good thing. “I truly believe the older homes need to come down in price. Keep in mind that the real estate market generally takes about six months to adjust to prices dropping on other items, like fuel, along with a slowing in the job market. I guess we will see in the next four to six months if the prices decline at all.” Gorder notes that people with community Campgrounds are one way to save costs, but make sure you check out the cost of the plot and utilities before purchasing your travel trailer.



Eide Ford Diesel & Fleet Shop Ford Certified Technicians Ford/Motorcraft Parts Quick Turnaround Time Quality Service 2 Year Unlimited Mile Warranty on all Ford/ Motorcraft Parts


Contact: Jackie Bius 701-595-0251 or 701-751-6073 2508 East Morrison Ave, Bldg. C Bismark, ND 58504 Located just southwest of the south Walmart

Left: Mary and Mark Petersen at the RV show in Minnesota.

jobs such as teachers, policeman, firemen, store clerks, and so forth can’t afford the high prices for homes, or even rent. Another group of people dismayed by the high prices are those coming in from elsewhere. “We’ll have people coming up from areas where the real estate market isn’t strong and they have a hard time adjusting. This used to be thought of as a small cowboy town with low prices, and now housing is so expensive.” Gorder’s advice is if you’re moving to the area, visit with a realtor you trust and talk to your lender. “If you plan to buy, it’s essential to be pre-approved.” Rentals continue to be tight – and pricey. Troll through Bakken rental websites and prices will range from $2,500 for a two-bedroom rental, to $4,500 for a fourbedroom house in Williston. Sidney, MT, which is on the edge of the boom, has less expensive rentals, but their building boom hasn’t kept up with the demand and rentals are in extremely short supply. Those who can’t afford – or don’t want the hassle – of home ownership or even renting often opt for an RV or trailer. Mark Pettersen of Coates RV in Williston explains that going the trailer route provides a viable option to home ownership. Coates RV started in 1938 and had been family owned and operated the entire time. Four years ago Coates RV started another dealership in Williston with Pettersen at the helm. 50


Above: Coates RV in Williston, ND.

Petersen says he hadn’t paid much attention to what was going on in the Bakken, until he was with a group of dealers and investors buying government FEMA trailers to sell in places with big job booms, like the Bakken. Pettersen, who is a Minnesota native, couldn’t see the sense of trailers designed for warmer climates being used by people living in the bitter North Dakota winters.

the top reason people buy a park trailer

“What I did was work with Forest River (which is owned by Berkshire Hathaway) to develop the SZS, a travel trailer suitable for the North Dakota harsh climate,” explains Pettersen. “We realized there was a need for people living in the Bakken to have a trailer that could stand up to the cold, yet stay warm inside. Interestingly, once we got here, we realized that not only was there need not only for oilfield guys to buy the RVs, but there was a big retirement community here who wanted camp trailers and fifth wheels.”

to take heed: if you buy an RV/park trailer,

Pettersen says even with the increase in available housing units over the past four years, and even recently with a slowdown because of low oil prices, Coates RV is still thriving because of their camper business.

or travel trailer is the cost. “Even if you just show up here and don’t have much money, you can still purchase an older trailer for a couple thousand dollars until you can afford something else.” Trailers will range from $2,000 for an older unit to $70,000 or more for a newer one. Petersen warns newcomers or those considering buying a trailer for Bakken life regulations state you must keep it in a campground – at least in Williston. “Find out before you buy one where you are going to put it and how much it will cost per month. You need to anticipate your expenses on your plot [in Williston, plots can run $1,000; Dickson, about $740]. Some will include utilities, some don’t.” He says to be sure that the trailer is well insulated, and to know how to enhance the insulation value by adding insulated skirting, wrapping your water lines with heat tape, and so forth. Another good feature about trailers, other than you can take them with you when you go, is if you opt to leave it behind,

“People who live here love to camp!” he admits, adding that trailer buying is seasonal. “When the winter comes, most people out here are already established in the area. Spring is when we see biggest impact of people wanting trailers.”

there is a market for them. There is quite a

He cautions that regular travel trailers aren’t made to handle the harsh conditions. “That’s why we sell our Forest River trailer that has two furnaces and insulation. That’s what people in the oilfield need,” he says. He explains that

related to the oil industry are transient.

bit of turnover with the workers in the oil fields with someone selling and someone buying trailers. Both Petersen and his wife enjoy living in Williston. “I know a lot of businesses But when we decided to build our facility here, we had already decided we wanted to be a part of this community. We’re planning on having Coates RV here for a long time.” w

Serving Canada and USA

Toll Free: 1.844.777.PIPE (7473) 750, 333 - 11 Avenue SW Head Office: 403.221.PIPE (7473)

27/8” to 72” O.D. Pipe .205” t0 1” Wall Thk. Cut/Weld to Length Sales Calgary, Alberta T2R 1L9 Fax: 403.262.3209

BOE midstream

BOE Midstream and Tesoro High Plains Pipeline complete pipeline connection in Killdeer, ND

Above: BOE rail terminal near Dickinson, ND. Left: BOE rail terminal and BNSF southern mainline.

Dunn Counties. Both the BOE pipeline and the BOE rail terminal are well positioned to serve existing activity, as well as anticipated future THPP infrastructure growth and development centered in Dunn and McKenzie counties.

Shippers moving crude to market from the

in January of this year, the interconnection

prolific Williston Basin are benefiting from

is located at LL Terminals, which is situated

a new pipeline interconnection that gives

near the intersection of Highway 200 and

improved access to the largest crude-by-

Highway 22 in Dunn County.

rail terminal in North America.

The new interconnection will have initial

In 2014, BOE Midstream, the privately

capacity of approximately 20,000 barrels

held owner of LL Terminals (LLT), began

per day (BPD), with plans to expand to

discussions with the Tesoro High Plains

nearly 50,000 bpd throughout 2015, based

Pipeline (THHP) about creating an

on shipper demand. Shippers using the

interconnection to give shippers using the

700-mile THHP system now have direct

THHP pipeline direct access to LLT, the BOE

access to the BOE pipeline and the BOE

Rail Terminal, and its end-user markets on

rail terminal from multiple injection points

the East, West, and Gulf Coasts. Completed

throughout Williams, McKenzie, Burke, and



Connecting BOE’s premier rail facility to THPP offers an additional market outlet to customers on the southern end of the pipeline system. At the same time, THPP’s expansive gathering network provides BOE with access to over 200,000 BPD of Bakken crude oil from all over the region. BOE Midstream is no stranger to the Williston Basin. Founded by the O’Shaughnessy family in 2010, the company was one of the first to start crude-by-rail operations in the basin, providing crude oil logistics and transportation services to producers, marketers, and refiners.

BAKKEN FENCE Lasting Beauty & Superior Quality at Affordable Prices • Residential & commercial chain link • Cedar privacy HIGHER QUALITY

• Vinyl fencing • Ameristar ornamental iron • Barbwire

• Temporary construction fence • Well site enclosures • 24 hour OSHA Certification • Colored chain link • Farm fencing

Beautiful Vinyl Fence Styles and Colors FREE ESTIMATES


Vinyl Fence enhances the appearance and value of your property. Vinyl won’t peel, flake, splinter or rot… ever! Get a Lifetime Warranty on your vinyl fence. Licensed, Insured, bonded Contractor #43696

Call: 406-890-3211 Toll Free: 888-386-4909 | Sidney, MT - Williston, ND

Residential and Commercial - all styles of fencing.


Today, the BOE rail terminal is the largest crude-by-rail loading terminal in North America, with over 200,000 BPD of throughput capacity. To date, it has loaded nearly 1,200 unit trains of crude oil. In addition to the interconnection with the THPP system, the rail terminal is supplied by True Companies’ Belle Fourche Pipeline, which can deliver up to 50,000 BPD of crude oil. Currently, the terminal offers 632,000 barrels of storage on site, with another storage tank currently under construction. When completed by the end of 2015, the new tank will add 250,000 barrels of capacity, bringing the terminal’s total storage capacity to 882,000 barrels. The rail terminal has 26 truck-unloading lanes, more than 55,000 feet of railroad track, and is the only facility in the Bakken with the ability to load two trains simultaneously.



Telescoping to 20 inches just north of the rail terminal, BOE pipeline is similarly impressive. BOE pipeline is a 39-mile pipeline able to flow nearly 200,000 BPD of crude oil, and one of the largest crude oil pipelines in the Bakken. Shippers access the pipeline through 10 truck-offload stations and a 105,000-barrel storage tank at the LL Terminals. Similarly, Tesoro Logistics has extensive experience operating the expansive crude oil gathering and transportation system located in the Bakken region in North Dakota and Eastern Montana. THPP provides crude oil producers, marketers and refiners with various connections to receipts by connecting pipelines and trucks, as well as deliveries to various rail facilities and pipelines that transport volumes out of the region. Delivering connections provide over 220,000 BPD of market alternatives with room for growth.

BOE Midstream has future expansion plans and developments to increase its presence within the growing Williston Basin, as well as opportunities to expand into difference basins. BOE commercial manager Todd Griffin says, “We are pleased to provide safe and reliable transportation and logistics solutions that are supporting growth and development within Williston Basin. It has been our pleasure to be involved in job creation and economic development in the Dickinson and surrounding communities, and we look forward to continue serving the needs of the oil and gas industry in the region.” Shippers interested in learning more about the connection, or about BOE Midstream’s various facilities should contact Todd Griffin, commercial manager, at 720-548-1259, or w

For more information, contact us today! Mainstream Investors, LLC P.O. Box 4448 Minot, ND 58702

(701) 852-9444

Follow the money: Shale oil and fracking By Rebecca Colnar

According to, North Dakota is proud to be the nation’s second-largest oil and natural gas producer, contributing more than 300 million barrels of crude oil to the U.S. supply in 2013 alone. The Bakken shale play in North Dakota is estimated to hold 11 billion barrels of oil. North Dakota has had the lowest unemployment rate in the U.S. since 2008. A recent study found that the oil and natural gas industry in North Dakota supports some 64,000 jobs, 12 percent of the state’s total employment. The industry has also contributed $6.6 billion to the state’s economy. The organization proudly claims “Hydraulic fracturing (fracking) supports 2.1 million

American jobs and promises a more energy-secure future for our country.” The development of shale energy has provided an amazing boost for the U.S. economy, according to most sources. One of the organizations giving the energy boom from shale the thumbs up is the American Enterprise Institute (AEI). Benjamin Zycher of the AEI explains that shale oil development truly has been a boon for the country. “As a general proposition, it has reduced the price of energy and therefore represents a wealth increase for the economy, which is shared between consumers and the producers of the

energy,” noted Zycher. “Shale oil and the technological advance that go along with it have made it cheaper to exploit additional resources and represent a large increase in national wealth.” Zycher is the John G. Searle chair and a resident scholar at the American Enterprise Institute (AEI), where he works on energy and environmental policy. He is also a senior fellow at the Pacific Research Institute. He explains the horizontal drilling and hydraulic fracturing “fracking” have been around a long time, but due to the technological advances in the procedure in the past decade, more oil can be captured than ever before. “Certainly the number of wells being dug

to your Grand getaway What makes your getaway Grand? • Unplug and rejuvenate in our luxurious suite hotel rooms • Gather with your team or family in our spacious pool area • Create delicious memories with gourmet dishes at Primo • Raise your glass to our single malt scotches at Luxe Lounge Plan your Grand stay today!

1505 N Broadway Box 777 • Minot, ND 58703 852.3161 • 800.735.4493 •



BLABO® Tank Cleaning SLOPO® Oil Recovery PROH 2O® Produced Water Treatment MoClean® ATS Tank Cleaning



Pure and clean produced water A touchstone for wastewater treatment in the oil and gas industry... Oreco’s PROH2O® system delivers innovative design and proven performance in a water separation system engineered for specific customer requirements. The highly effective technology of PROH2O® makes it the new standard for wastewater treatment, with the flexibility that meets the growing demands of the oil and gas industry. Featuring the world’s smartest membrane separation system, PROH2O® represents high pure-water recovery and close to 100% removal of impurities from the most difficult

sources such as FRAC water, SAGD water and polymer flooding. With PROH2O®, installation is easy, maintenance is minimal and the robust engineering and technology mean optimal performance and continuous operation in all environments and conditions. The PROH2O® system offers the oil and gas industry: • Close to 100% removal of oil, particles and bacteria • Dramatic increase in reuse of water in Hydraulic Fracturing

• No transportation and disposal costs for cleaned water • Increased capacity of existing disposal wells • Low daily operation costs • Easy, safe and flexible operation – even in harsh and hazardous conditions • Thorough operator training program • Exceeds the most stringent HSE measures Discover what PROH2O® can do for your business at

Oil-water solids separation and recovery solutions

“Shale fracturing has a decline rate that is somewhat higher than normal (at this point, about three years), but with a technological advance it’s hard to predict how it will all play out. using horizontal drilling has increased from, say, 20,000 to 35,000.” He believes oil and natural gas will continue to be drilled using convention methods, as well as using hydraulic fracturing; however, he is quick to explain not all underground formations are alike and not all are shale. “Shale fracturing has a decline rate that is somewhat higher than normal (at this point, about three years), but with a technological advance it’s hard to predict how it will all play out. How much of a decline rate we’ll see, who knows?” Zycher indicated that some regulations to the industry include capturing methane (the EPA is still formulating its exact regulations). “The fugitive methane issues (a.k.a. flare gas) are solvable by using better releases valves and shell casing. There is also some evidence that reinjecting wastewater from fracking may

cause very minor seismic activities, but I see that as an industry issue, not a federal one,” he says. “As far as water pollution worries, usually fracking is done below the water table, so water pollution is not an issue. There could be some concern about regulations on fracturing where water availability is tight, however.” He says companies will have to deal with the Not In My Back Yard (NIMBY) mentality that will oppose infrastructure development, such as the Keystone XL pipeline. He indicated that although booms such as the one in the Bakken can cause local infrastructure challenges, as localities grow because of new people moving in, a severance tax at a local level is the way to manage those challenges. Internationally, Zycher says that there may be some export bills coming along to congress, especially with natural gas. “Exporting energy right now is difficult

because the energy department is slow in approving export terminals. They should improve the ones that currently meet environmental standards and let the market then sort them out. Natural gas prices are high, and exporting that commodity would be efficient.” As to how the recent current low oil prices will affect the industry, Zycher says it makes sense for there to be a slowdown in infrastructure growth, and production and oil production. “We will just have to wait and see what happens.” The American Society for Civil Engineers (ASCE) hosts the annual Shale Energy Engineering Conference which covers all aspects of that resource development. Topics may include geological and geotechnical development along with aspects of shale oil and gas well development, water resource management, public policy and supporting infrastructure development. “Getting energy to market is a main priority for ASCE. We make sure we have safe, reliable and effective infrastructure by putting in pipelines, transmission lines, and refinery capabilities,” explains Whit Remer, senior manager of government relations, ASCE. “I know there has been some discussion taking place on possibly reversing pipelines since we are moving toward exporting oil versus importing oil from OPEC countries.” Remer indicated that as far as new infrastructure development is considered, some infrastructure will need to be reinvented to meet changing needs. “We are seeing port facilities starting to prepare for exporting other products, such as natural gas products.” He explains that even though there is some talk about slowing development due to decreasing oil prices, engineers will still be busy. “Even with a slowdown in shale energy development, we still need people out there. There is still a lot of infrastructure work to be done.” w




IT’S NO PLACE FOR EQUIPMENT THAT CAN’T TAKE PUNISHMENT. Canary is constantly innovating new products and equipment, while fine-tuning oilfield services to take advantage of new trends in technology, efficiency, and safety. With locations in every major shale play, Canary locally builds reliable, high-quality wellheads that ensure maximum production and profitability for America’s largest energy firms.







Clearing Bakken dust keeps road maintenance budgets, driver safety on track

The Bakken oil boom continues in North Dakota, where big rigs wreak daily havoc on rural gravel roads. The North Dakota Department of Mineral Resources expects shale drilling to continue for the next 20 years, during which time crews will build upwards of 50,000 new wells. About 95 percent of the activity, and thus the truck traffic, target the Bakken and Three Forks formations located in the western part of the state. Many counties in the region struggle to maintain roads never intended to carry such heavy loads. In fact, most of the roadways that lead to the remote oil well sites are two-lane gravel roads originally built to accommodate pickup trucks and other farming vehicles. Big-rig traffic can cause as much damage to these roads in a single day as the lighter trucks might have in an entire year or longer. So, dust control has become increasingly important as a way for roads 60


departments in the region to maximize budgets while improving driver safety and road quality. Many of them rely on DustGard®, a safe and effective liquid magnesium dust control and road stabilization product harvested by Compass Minerals from Utah’s Great Salt Lake. Controlling dust stretches roads budgets McKenzie County, the largest and highest oil-producing county in North Dakota, is one example. Operations engineer Mike Dollinger estimates that 7,000 heavy vehicles “tear up” the county’s 600 miles of non-paved roads every week. Dollinger’s department has used DustGard to stretch its budget for the past six years. “Our Roadworx dust control program and DustGard save us one million dollars every year in labor and materials costs

we would otherwise incur to regrade and rebuild gravel roads. DustGard keeps the gravel on roads and the dust down, so driving is safer and life is more bearable,” said Dollinger. It costs less than $10,000 to treat a mile of gravel road with DustGard® magnesium chloride, and as much as $200,000 to replace a mile of gravel, a significant savings that is multiplied many times over in a place like rural North Dakota during an oil boom. The increasing regional demand for gravel road maintenance solutions attracted to the area Roadworx, a specialized dust control firm. Its parent company – Dustbusters – has been in the business since 1988, which works to educate county roads departments about the need for road stabilization programs that are quickly becoming a necessity given statewide conditions and budget constraints.


Dust is the enemy

Studies show that gravel roads lose as

asphalt. The process prevents fines and

much as one ton of aggregate per mile

larger aggregate from loosening, so a

each year for every vehicle that passes

road’s integrity remains intact longer.

over them daily. So, if a road carries 250

Combatting dust on gravel roads has

vehicles daily every year, it will lose 250

many other tangible benefits. The

tons of aggregate.

preferred product for dust control, soil

semi-trucks – it turns to dust that blows

DustGard bonds with a gravel road’s

stabilization and preventing wind erosion,

away, disintegrating road surfaces.

surface, making it almost as hard as

magnesium chloride:

Dollinger and his colleagues across the state understand that dust isn’t just an inconvenience; it’s a safety hazard that also degrades roads. When gravel breaks down – for example, under the weight of

• Provides cleaner air, which leads to better health. Fugitive dust can cause illnesses in children, the elderly and

Diamond B Diamond B Oilfield Trucking, Inc.

For a Safe, Reliable, and Timely Source of Transportation Crude Oil Transportation,High Pressure Units, Water Hauling & Transportation

people who have respiratory conditions; • Improves road conditions and safety by increasing driver visibility and decreasing risks associated with loose gravel, soft spots, road roughness and flying rocks; • Compacts soil, thereby preventing destructive wind erosion. It reduces foreign sediment in nearby surface waters (e.g., dust that settles in creeks and streams), helps prevent stunted crop growth caused by clogged pores in plants, and keeps vehicles and property cleaner. These advantages are especially important in an environment that experiences unusually high truck traffic that would otherwise cause economic, health, and safety hazards – not to mention general inconveniences to the people who call the area home. Unlike the unpredictable price of oil, North Dakota drivers can consistently count on a solid,

Plentywood, MT • Westhope, ND • Nunn, Colorado

Phone: 1-(800) 876-1376 or (701) 245-6663


Stephen C. Bowman, President Cell: (406) 765-7954

Daryl Sorenson, Vice-President Cell: (406) 765-8563

Chuck Ensrud, Operations Manager Cell: (406) 480-3183

Ole Hagen, District Manager Cell: (701) 263-5571

Kara Eggen, Office Manager Cell: (406) 480-0458

Alan R. Caldwell, CDS Safety Coordinator Cell: (406) 765-8600


safe, and smooth drive from DustGardtreated unpaved roads. w

Please Recycle

GET YOUR WORKSITE ON TRACK RUBBER TRACK CONVERSIONS with over 100 models up to 80,000lbs gvw


218.683.9800 / 877.436.7800 DIRECT


Let the good times roll: Museum highlights historic Bakken oil boom By Melanie Franner A photo by Minneapolis resident Alec Soth. It’s soon to be 10 years since the Bakken oil fields began churning out “black gold”, creating a white-hot economy in the process. So it’s no surprise that a local museum in Fargo, North Dakota, decided to celebrate the milestone with the creation of the largest group exhibition on the topic ever mounted in all of the U.S. Bakken Boom! opened to rave reviews on January 29th of this year. It has attracted a large following, but more important to Plains Art Museum Curator Becky Dunham, it has got people talking about a topic so near and dear to their hearts. The inspiration The Bakken Boom! has been a project of Dunham’s since she

And thus the idea was born. “I had no difficulty in finding local artists and ones from around the nation,” states Dunham. “Everyone I mentioned it to said they wanted to be a part of it. In fact, it got to the point that I was getting emails and telephone calls from artists asking if they could participate.” According to Dunham, one of the goals of the exhibition is to get people thinking about the significance of the oil boom. “This exhibition was designed to bring attention to a topic that has been on the tip of everyone’s tongue here in North Dakota,” she adds. “It also underscores how the state is now a celebrity because of the Bakken oil boom. It’s quite an interesting and exciting phenomenon.”

started with the Plains Art Museum in October 2013. As a native of Texas, however, she was more than comfortable with the

Go big or go home

subject matter.

Bakken Boom! provides a broad range of artistic interpretations of North Dakota’s oil rush. It invites visitors to consider new realities in the western area of the state, along with the profound impact of the energy boom on both lives and land.

“The New York Times magazine ran an article on the Bakken oil business in February 2013, which included both a written piece and a photo spread,” explains Dunham. “The director of the museum contacted the photographer, Alec Soth, and asked if he would be willing to participate in an art exhibition on the subject. Alec agreed but asked that it be a group exhibit.” 64


The exhibition (which uses two of the three main galleries in the museum) includes 22 individual artists, three artistic collaborations, and selections from the museum’s collection.


NOW. With a storied history spanning 150 years, a global footprint of more than 300 locations, plus thousands of products, DistributionNOW is primed to service your upstream, midstream, downstream and industrial needs. Whenever and wherever you demand the leader in supply chain management, call DistributionNOW. Every Moment is NOW. Call us at 800-228-2893. © 2015 DistributionNOW. All rights reserved.


A piece by Michael Conolan, a Grand Forks, ND artist. The art itself ranges from documentary photos and film to

the conversation going so we’re holding several events each

sculpture to printmaking and installations. There is also a strong

month. We just had our first public program and were thrilled

educational component to it, which includes informational panels

to see that it attracted interest from various backgrounds, not

on issues like the history of the Bakken shale formation and the

just the art lovers who typically attend these types of events.”

different extraction processes used.

Bakken Boom! features both local and national artists, including

“We wanted to help people understand why the boom has

the Minneapolis resident who started the ball rolling with his

been so successful,” says Dunham. “We also wanted to keep

photo spread, Alec Soth. Local artists include Elise Forer, Wayne Gudmundson, Kent Kapplinger, Meredith Lynn, Molly McLain, J. Earl Miller, Eric Syvertson and Susanne Williams. Lead sponsor of the exhibition is Doris Slaaten, with additional contributions from Yvonne Condell, Linda Olson, Walter Piehl, B. J. Zander and the North Dakota Humanities Council. Come one, come all Last year, the Plains Art Museum drew some 62,000 visitors. Typical exhibitions run an average of three to four months, but the Bakken Boom! will run through August 2015. “We chose to run the exhibition for a longer period of time because we get a different type of visitor in the summer than the fall and winter,” says Dunham. “We felt it was important to give as many people as possible an opportunity to view the exhibition.” And given the reception to date, it seems that the extra exhibit time will be put to good use. “The reaction has been fantastic so far,” concludes Dunham.

A piece of Fargo-Moorhead area artist Molly McLain. 66


“People are thrilled they have something that provides inspiration to discuss the topic.” w

For more information online: Industrial/Hydrocarbon_Processing/Pages/VentFlareGas.aspx

Emerson’s VRU to maximize revenue & meet regulatory compliance. The combination of lost gas revenue and increased regulatory demands, related to gas venting and flaring, has accelerated the adoption of emissions reduction technology by the hydrocarbon processing industry. One emissions reduction approach, commonly known as a vapor recovery unit (VRU), can be an effective approach. These compressor-based systems are frequently applied to capture conventional stock tank vapors. However, traditional VRU package designs using screw compressor technology have been regarded as maintenance intensive, resulting in uneconomical operating costs and are often abandoned. Recognizing the challenge facing the industry, Emerson™ has developed and field proven a unique system: Smart Vapor Management (SVM) that combines robust Copeland Scroll™ compressor technology with established lean/rich gas processing. principles. For an online video link: Contact Novaspect today to discuss how we can help make your operation both EPA compliant and more profitable: or toll-free at 877.509.8020 .

The Emerson logo; “Consider It Solved.” ; and Copeland Scroll are trademarks and service marks of Emerson Electric Co.; Emerson Process Management is a division of Emerson Electric Co.; Novaspect Inc. is a Local Business Partner of Emerson Process Management. © 2015 Novaspect, Inc.



The Treasure State Endowment Trust Taking a look at the coal industry in the state of Montana By Terry Johnson Tax policy is a topic that is difficult for most people to discuss. Nobody likes to be taxed, but regardless, taxes are the means to pay for governmental services. As this article points out, there are some policies that provide immediate benefits to our residents and for future generations as well. The assessment of taxes, whether at the federal or state level, is founded on the premise that the income generated will be used by government to pay for services



provided to its citizenry. Tax revenue, in some instances, is dedicated or earmarked for a specific purpose or service, while other taxes are assessed for general use (general fund). A good example of revenue dedication is the taxes paid on gasoline and diesel fuels. These taxes are used specifically to fund the maintenance and construction of highways, roads, bridges, etc. throughout Montana. And, if you do not use these fuels, you as a taxpayer do not pay the tax. Income taxes,

on the other hand, are for general use and are used to pay a majority of services, such as education, public safety, and human services. During the 1975 legislative session, the legislature enacted the coal severance tax and defined the purpose and use of this newly created tax. Previous to this law, any coal produced in Montana was taxed based on a cents-per-ton basis and was not tied to the value of the commodity.



The tax policy implemented was designed to automatically increase or decrease taxes based on the tons produced and the price the producer received for the commodity. To put this in an appropriate perspective, coal tax receipts in 1970 were about $50,000, whereas by 1977, these taxes increased to almost $37 million. This increase was the result of the newly implemented coal severance tax because it included the value of the coal in the computation of the tax owed.

legislation authorized a tax distribution

Because of the additional revenue, the legislature developed new spending polices and also implemented a trust fund concept to ensure that there would be monies available to benefit future generations. Instead of using all of this additional revenue for general use, the legislature passed a revenue allocation policy that recognized coal was a finite resource, and that once depleted, the annual tax revenue would vanish. This

in each sub-trust. Under current law, there



mechanism that allocated some revenue to general use, dedicated some for specific purposes, and distributed 50 percent to a coal tax trust fund. Over the years, the legislature tinkered with the trust fund concept, but only to create sub-trusts within the coal tax trust fund. These sub-trusts were created to maximize the use of the trust by appropriating interest earnings generated from the investment of principal amounts are four sub-trusts, and the principal amounts are invested by the board of investments. All of these earnings are appropriated by the legislature and are dedicated for specific purposes. One of these sub-trusts is called the Treasure State Endowment Program (TSEP). This particular sub-trust was created by legislative referendum

approved by the voters in June 1992. With an initial seed loan of $10 million from the permanent trust, the TSEP sub-trust has grown to almost $225 million by the end of fiscal 2014. The entire coal tax trust balance was almost $953 million at the end of fiscal 2014, when all sub-trusts and income funds are summed together. As mentioned above, the entire principal in these funds is invested by the board of investments and the investment earnings are appropriated by the legislature. The TSEP is administered by the Department of Commerce (DOC). Their fiduciary responsibility is to administer a grant program for infrastructure projects throughout the state. Infrastructure projects include drinking water systems, wastewater treatment facilities, sanitary sewer or storm sewer systems, solid waste disposal and separation systems, and bridges. The maximum grant award is $750,000.

Xylem’s dewatering pumps can help you manage your well site, from water supply and management to long water transfer. Our industry-leading rental fleet of single stage, high pressure and high volume Godwin pumps and accessories is available to you whenever you call. Our 24/7 service and world-class engineering support will help keep your operation running smoothly. For more information, call the location nearest you: Helena, MT – 406.495.1335 Billings, MT – 406.373.3700 Dickinson, ND – 701-866-0088



As defined by state statute (90-6-702, MCA), the purpose of TSEP is to assist local governments in funding infrastructure projects that will: • Create jobs for Montana residents • Promote economic growth in Montana by helping to finance the necessary infrastructure • Encourage local public facility improvements • Create a partnership between the state and local governments to make necessary public projects affordable • Support long-term, stable economic growth in Montana • Protect future generations from undue fiscal burdens caused by financing necessary public works • Coordinate and improve infrastructure financing by federal, state, local government, and private sources • Enhance the quality of life and protect the health, safety, and welfare of Montana citizens Grant funding for the program is derived from the investment earnings produced from the Treasure State Endowment sub-

trust. Eligible applicants include cities, towns, counties, tribal governments, consolidated local governments, county or multi-county water, sewer or solid waste districts, and other authorities as defined in 75-6-304, MCA. TSEP applications are submitted to the DOC on a biennial basis where they are evaluated according to seven statutory priorities. The seven statutory priorities focus on projects that: • Solve urgent and serious public health or safety problems, or that enable local governments to meet state or federal health or safety standards • Reflect greater need for financial assistance than other projects

• Provide long-term, full-time job opportunities for Montanans, provide public facilities necessary for the expansion of a business that has a high potential for financial success, or maintain the tax base or encourage expansion of the tax base • Are high local priorities and have strong community support The DOC submits a recommended list of projects to the legislature for review, potential modification, and ultimate approval. Upon approval by the legislature and the governor, the DOC administers the approved grants. Since creation of the TSEP, there has been $180.9 million in grants (state monies)

• Incorporate appropriate, cost-effective technical design and provide thorough long-term solutions to community public facility needs

allocated to communities throughout

• Reflect substantial past efforts to ensure sound, effective, long-term planning and management of public facilities and that attempt to resolve the infrastructure problem with local resources

infrastructure projects. The following

• Enable local governments to obtain funds from sources other than TSEP

Montana. These funds have been matched with other local and/or federal sources to fund over $826 million in total map shows the total grants awarded to counties throughout Montana since inception of TSEP. The size of the circle measures the total grant awards to counties. Only two counties (Broadwater and Powder River) have never received grants. The blue-shaded counties represent those counties where coal development has taken place. The enactment of the coal severance tax and the fiscal policy to save for future generations has had a significant impact on the infrastructure needs of Montana communities. Without the coal severance tax and the TSEP sub-trust, communities throughout Montana more than likely would not have been able to fund many of these projects. Between the coal

A Better Tomorrow Through Conser vation Today


Thermal Energy Products is a Fabricator specializing in the Engineering, Design, Fabrication, and Installation of Removable/Reusable Insulation Systems since 1986.



North Dakota Office 2702 7th Ave South Fargo, ND 58103 Phone (701) 237-0071 Fax ( 701) 232-0400 California Office 114 Viking Ave Brea, CA 92821

industry and legislative fiscal policies, this trust is an asset that provides funding for a variety of worthwhile and necessary community projects. The TSEP program continues to fund numerous projects year after year and will continue to well into the future. w

Integrated Services Approach ENVIRONMENTAL CONSULTING & FIELD SERVICES to Reclamation


Clients of KC Harvey Environmental, LLC recognize value in the form of cost savings and the great appreciation for a job done right the first time. Our key to reclamation success is a unique integrated life cycle approach. Skilled professionals develop site specific reclamation plans founded on sound application of Science and a thorough understanding of the client’s needs and the regulatory drivers. The second phase is Implementation. Unlike most environmental firms, KC Harvey owns and operates a modern fleet of equipment allowing us to control the quality of seeding, soil amendments, mulch application,

weed control, fencing stormwater BMPs, etc. The last phase of the cycle is Monitoring. This important final element of a successful reclamation plan involves both our professional staff and field personnel. We diligently manage the ongoing aspects of soils, vegetation, weeds, erosion control, permit compliance and land use. Our ability to deliver the full life cycle package including Environmental Field Services (EFS) sets us apart. Mastering the logistical challenges of EFS in the Bakken!

Grow With Us - Now Hiring For 2015 - Inquire at

Volant Casing Running Tools are field proven and have become the preferred choice globally for running casing and liner in today’s challenging, critical wells. The efficient, versatile design of the CRTi™ and CRTe™ puts complete control in the hands of the driller, eliminating the need for extra equipment and people, reducing risk, improving safety and tipping the odds of success in your favour.

Photo courtesy of Beaver Drilling Ltd.


When the target keeps getting further away, you need tools that will go the distance . . . whatever your total depth is. Where other centralizers break down under the rigors of downhole loads, Volant HydroFORM™ Centralizers help you get safely to bottom. Wherever bottom is. |


Payback on smart VRUs make EPA compliance profitable

A wellpad installation in the Bakken region.

Detailed view of controls and configuration.

Vent and flare gas are both economically wasteful and

solutions deliver high-pressure capability typically found only

environmentally damaging. With the U.S. Environmental

in reciprocating compressors, along with inherent benefits of

Protection Agency’s more stringent standards and penalties,

oil flooded screw technology. The scroll compressors deliver

combined with downward market forces on oil, producers in the

longer life, higher reliability and better part load efficiency

Bakken region are looking to capture those gases and help the

than any screw compressor, and have fewer moving parts than

bottom line in the process.

reciprocating compressors.

Oilfield tank vapor and flare gas recovery is gaining attention

The scroll compressor technology has been proven to operate

as producers seek to capture valuable, rich vapors and meet

in demanding applications. This hermetically sealed compressor

increasingly strict environmental regulations. Traditionally, vapors

enables zero emissions from the system and allows producers the

have been either vented, flared, or collected via maintenance-

reduction of maintenance to once per year. Lowered operating

intensive central gathering systems with reciprocating

costs, increased revenues, and cleaner air through reduced

compressors. Emerson has recently introduced a unique

emissions makes Emerson-Vilter’s SVM the smartest choice for

compressor design that offers a highly reliable alternative for

both compliance and profitability.

vapor recovery systems, called the Smart Vapor Management solution (SVM).

Vilter Manufacturing LLC, a company of the Emerson Climate Technologies business segment of Emerson, represented

The core of the SVM solution that Emerson is providing the

by Novaspect Inc. in the Bakken, has perfected this unique

oil and natural gas industry is the Vilter™ Copeland Scroll™

vapor recovery process by employing their weld-sealed scroll

compressor and packaged system. These compressor-based

compressors requiring low oil flows.





CAPITAL LODGE | 10855 HWY 2 | TIOGA, ND 58852




VRU right-side drawing.

VRU front-view drawing.

Oil is processed through a multi-stage, heated, horizontal stabilizer that removes all absorbed hydrocarbons from lubricating oil. Oil is then returned to the compressor as part of the closed-loop lubrication system. By utilizing the stabilizer, the system maximizes throughput while protecting the compressor from low oil viscosity caused by dilution. The new VRUs come in two applications: the Vilter VRU-44, which can accommodate pressures up to 175 psig, and the VRU-56, for pressures up to 150 psig. Both units feature a remote operations controller, the ROC827. The ROC827 features snap-together module racks to accommodate from three to 27 input/output (I/O) and communication modules, allowing it to store data for EPA reporting and provide real-time remote monitoring. “Not only does the Vilter VRU help companies comply with EPA mandates, thereby avoiding fines, its design helps prevent premature shutdown due to low oil viscosity and excessive

carryover, eliminating the potential lost revenue,” says Thomas Hoopes, director of hydrocarbon industry at Vilter Manufacturing. Note: EPA 40 CFR part 60, subpart 0000 requires the capture and recovery of at least 95 percent of tank vapors produced in virtually all crude oil and gas production, transmission and distribution. The Vilter Smart Vapor Management solution was developed for the extreme conditions encountered in capturing tank vapors that are a by-product of oil and gas production and processing. The Emerson solution utilizes gas processing principles in the prevention of lubricating oil dilution and carry-over, the leading causes of premature equipment failure. The unique horizontal lube oil stabilizer vessel maintains lubricant viscosity and retention, even in gas compositions over 2800 btu. The rugged Copeland scroll compressors are designed

1400 North Broadway Minot, North Dakota

Oilfield Locations, Roads All Types of Dirt Work Snow Removal 24 Hour Service

Box 1046, Sidney, Montana Office (406) 482-4760 78


Ph: 701-838-1400

Enjoy comfort, convenience and an ideal location in Minot, ND – Located near the Minot Airport and Minot State University. Friendly service, clean rooms, comfortable surroundings, every time.

✔ The Perfect Mix Lobby ✔ Free Shuttle ✔ Free High-Speed Internet Access ✔ Free On the House™ Hot Breakfast ✔ 27/7 Snack Area ✔ Heated Indoor Pool & Hot Tub ✔ Fitness Center ✔ Guest Laundry ✔ Hilton HHonors®

For Reservations Call 1-800-HAMPTON |




Proud distributor of products by:




The theory of controls and configuration.

for frequent starts and stops, while the VFD drives assure precise

monitoring services to manufacturers and process industries. We

and efficient operation without the need to recycle gas. Finally,

engineer and sell process controls, valves and distributed control

the system is controlled by the versatile and expandable Emerson

systems, representing Emerson Process Management through our offices in Illinois, Indiana, Wisconsin, Minnesota and North

ROC 800-series remote operations controller.

Dakota. For more information about our Emerson Smart Vapor

Novaspect Inc. provides project engineering solutions, process

Management solutions, visit, or call toll-free

automation technology, and lifecycle reliability and condition

877-509-8020. w

SAVE TH E DATE » Biggest Bakken Conference in the U.S. » Talks from Industry Experts & Leaders » Networking Opportunities » 500 booths & More! Learn more at /WBPCND 80








Cash flow stress hits the Bakken By Glen Herrig

The price of crude oil has been the largest influencer in determining production levels in the Bakken. Following dips, climbs and swings, many exploration companies are taking proactive steps to consolidate rigs and cut operating costs. For oilfield service and supply companies, it’s an exciting time – companies willing to renegotiate pricing, embrace pricesensitive bidding strategies, and ask for more work are already gaining an advantage over their competition. As their business inevitably grows, the discussion often turns to cash flow and the problems caused by the industry’s lengthy pay terms. I recently had the opportunity to sit down and interview Eric Schoch, executive vice president of TCI Oilfield Factoring. Schoch is a 19-year veteran in the oilfield financing industry, and has spent much of his career studying the cash flow needs of smallto-midsize oilfield service companies. Glen Herrig (GH): Cash flow is important to any business, but now with the recent swings in oil pricing, it seems to be even more vital in the Bakken. Can you tell us why? Eric Schoch (ES): Absolutely. Firstly, Bakken exploration companies are proactively shifting with the swing in oil prices. As exploration companies are cutting costs and consolidating their rigs, the most successful service and supply companies are adjusting their pricing and bidding less per job to stay competitive and gain more work. Secondly, the most proactive suppliers with aggressive pricing are securing more contracts and experiencing rapid growth. Such rapid growth puts them in a cash crunch soon after they ramp up. As their companies grow, their need for cash obviously grows as well. GH: In your opinion, what leads to cash flow issues for companies working in the Bakken?

ES: Typically, there are three different reasons why it happens. Many times, all three are involved. The first issue is working capital. The fact is, it’s difficult to make accurate cash flow projections to determine working capital needs – and it’s especially challenging with the recent pricing uncertainty, or when a business potentially doubles in size in less than 30 days. In the Bakken, we see it every day. Companies that have been well capitalized for years look to expand; they win large bids, and the next thing you know, they’ve doubled in size and are suffering from cash-flow problems. We’ve seen companies literally become cash poor overnight. The second issue, which is severely overlooked, is billing and invoicing errors. Billing and invoicing errors are all-too common in the industry. Sadly, we’ve discovered that most companies just don’t understand how to “dot all the i’s and cross all the t’s” on their billing. Each time an invoice is submitted improperly, their payments get delayed, which causes cash flow stress. The third issue is the accounts receivable turn in the oil industry. It’s slow. The industry average is nearly 60 days. And now, we’re seeing even more exploration companies paying slower than that with the recent swings in oil pricing. If you add the extra time it takes to get field tickets signed, the number goes up from there. Let’s face it – if a growing company has to pay for fuel every day, make payroll every two weeks, and make equipment payments every 30 days, waiting 60 days to get paid won’t work. The math doesn’t add up. GH: Cash flow is obviously a big issue in the Bakken. How does TCI Oilfield Factoring help oilfield service companies with these issues? ES: We quickly end the cash flow concerns of our customers.

The price of crude oil has been the largest influencer in determining production levels in the Bakken. Following dips, climbs and swings, many exploration companies are taking proactive steps to consolidate rigs and cut operating costs. 82


Oilfield Companies - Want to Get Paid Faster? Turn Your Oilfield Invoices Into CASH!

Set-up is easy: Get Quote Submit Invoices Get Cash

North America’s #1 Oilfield Capital Company Can Help! Oilfield Capital Lines from 50K to 20 Million

We work with: •















Call: 800.707.4845 or visit


Firstly, we learn what’s going on with the company, so we can address their cash flow deficiencies. Once we have a clear understanding of their situation, we present them with a value proposition that addresses their specific needs.

industry. By sharing our knowledge, we help our customers greatly reduce the likelihood of any payment delays. GH: How do businesses get started with TCI?

their businesses.

ES: Getting started with TCI is easy. All a business owner has to do is contact one of our oilfield financing experts to discuss their specific needs. From there, our staff will create a program that meets those needs. If the business owner agrees, our staff will walk them through the rest of the process, and provide training on the best ways to maximize their benefit from our services. Getting set up is simple: most customers are approved for a working capital line with us in 30 minutes or less.

Finally, we take great care to address billing and invoicing issues.

GH: Any final thoughts?

Our working capital lines give our customers immediate access to the cash that is tied up in their accounts receivables. It’s not a loan. We simply pay companies upfront on the invoice, cash they’ve already earned, just much sooner (many times within 24 hours.) As a result, they have the funds they need to get caught up on bills, meet payroll, and make necessary purchases to grow

We make time to train their staff on the best billing practices for each of their customers. We’ve spent the last 20 years in oilfield financing, and we’ve learned a great deal about the invoicing requirements of the oil and gas industry. We’ve worked hard to build solid relationships within the industry, and are on a first-name basis with the accounts payable departments of oil and gas companies nationwide. These close relationships have allowed us to fully understand the complex and often cumbersome billing requirements that are common in this



ES: One of our customers once told me, “if you don’t take the bull by the horns, someone else will, and you may never get the chance again”. The Bakken represents economic opportunity for many oilfield service and supply companies. At TCI Oilfield Factoring, we pride ourselves on helping our customers take advantage of this exciting, evolving oilfield industry. For more information, call 800-707-4845, or visit us at w

Only pay for the speed you need... Dynamic Routing!℠ At Lynden, we understand that plans change but deadlines don’t. That’s why we proudly offer our exclusive Dynamic Routing system. Designed to work around your unique requirements, Dynamic Routing allows you to choose the mode of transportation — air, sea or land — to control the speed of your deliveries so they arrive just as they are needed. With Lynden, you only pay for the speed you need! 1-888-596-3361


Locations in Minot and Wattford City

Office: 701-837-0800 | Cranes: 307-231-6766 | Trucks: 701-818-0013

Full Drilling Rig Moves | Work-Over Rig Moves | Completions Heavy Equipment Hauling | 100% TERO Compliant

Encore energy

Lessons learned from the Bakken enable company growth – Part II Encore Energy makes major lease expansion targeting non-conventional gas and liquids of the New Albany Shale in Western Kentucky orientation and completion design, Encore is now planning to develop similar non-conventional resources in Kentucky. The company believes that Kentucky provides tremendous opportunities for the low-cost, long-term development of natural gas, liquids, and crude oil. The Energy Information Administration (EIA) reportedly estimates there to be 160 trillion cubic feet of gas-in-place from the New Albany Shale and anticipates for this estimate to move upward in Kentucky, Indiana, and Illinois. The company has just finalized drilling well #14 of 30 wells, each well an encountering ~100 feet-plus of New Albany Shale formation in Western Kentucky. The company is currently selling multiple truckloads of oil each month from several leases near Richardsville, Kentucky and making plans to drill its first horizontal New Abany well in northern Warren County, Kentucky. The company believes it has a competitive advantage as the most active operator in this area and is also confident that the “liquids-rich” shale reservoir characteristics in this area minimizes cost, maximizes reserves, and optimizes production for the long term. The courthouse(s) have already begun to be overrun as multiple operators and land companies in this area leasing acreage. The Bakken has dramatically improved many of today’s nonconventional drilling and completion technologies. These improved technologies are now being applied in other areas of the country, including the New Albany Shale of Western

• Natural gas and liquids long-term production with 20- to 30plus years of productive well life. • Extremely low cost, as compared to other areas.


• Affordable lease acquisition and low-budget horizontal projects.

Encore Energy, Inc. (Encore), a rapidly growing developer and

• Gas-in-place estimates of 28 BCFGE, supported by core analysis and other pertinent reservoir data. The shale ranges from 100-to-200-foot thick with high TOC.

operator of oil and gas properties in Kentucky, has recently refocused it efforts toward the aggressive development of the New Albany Shale exploration and production in western Kentucky. The company currently has secured nearly 15,000 acres under agreement with plans to acquire up to 50,000 leave acres for the long term. With the lessons Encore learned from the Bakken and Utica shale plays as they relate to multi-stage hydraulic fracturing, lateral 88


• The relationships with landowners, size of acreage tracts and NRIs delivered rival in play in the country. • There exist tremendous long-term “non-conventional” natural gas potential in this area as a result of advancements made in horizontal drilling and completion technologies from prior development in such plays as the Bakken shale.


Encore has acquired rights to an existing horizontal well program

wholly owned subsidiary, Encore Operating Kentucky LLC.

supported and designed from a core analysis and related third-

Encore’s management has previously served as an operator in Oklahoma and Texas, resulting in multiple gas and oil discoveries, including the Wallrath #1H horizontal Woodbine well in Leon County, Texas, which produced a reported -58,000 BO in its first year, and was later acquired by Halcon Resources, as reported by the Texas Railroad Commission. w

party reports. Encore believes that it has exclusive rights to the only core analysis performed in this area of the shale. The company plans to drill and develop its first horizontal well in the summer and fall of 2015. Encore has entered into a contract to sell its shale gas. The company operates its properties through a


Communications Inc.

Call: 1.866.831.4744

DEL Communications Inc. & You.

The key to success.

We offer outstanding personal service and quality in the areas of: 90




Industrial Design-Build Experts

One Process One Contract One Relationship Your TEAM Give us a call or check us out online. 701-225-4824 | 112 3rd St W #202, Dickinson, ND 58601

Visit us at the Willison Basin Petroleum Conference, April 28th-30th

High Country Fusion is the leading manufacturer and distributor for HDPE and PP-R pipe and fittings. Our sales and

Noble Well Services Inc. Box 393 • Arcola, Saskatchewan • S0C 0G0

OFFICE | 306-455-1213 Chris Nidesh | AREA MANAGER | 306-577-8793 Shane Ippolito | FIELD SUPERVISOR | 306.575.7807 Van Bot | SAFETY SUPERVISOR | 306.575.8792 Locally owned and operated. Experienced Crews. Mobile freestanding equipment.

service staff have extensive knowledge about Fusion, Fast Fusion and Electro Fusion products. We are a proud McElroy distributor offering a full service rental department with certified technicians and training programs.

With distribution locations in Dickinson, ND and Casper, WY we can support all of your project needs in the Bakken and beyond. Please email us at for your next project!




A groundbreaking public-private partnership in the Bakken By Heather Syverson, AE2S communications coordinator

The Western Area Water Supply Project

Europe. According to the National

treats it at the Williston Regional Water

(WAWSP) is one of the first public-private

Association of Water Companies (NAWC),

Treatment Plant, and then transports it

partnerships in North Dakota. Also

PPPs currently serve more than 2,000

to cities and rural areas in Burke, Divide,

known as a PPP, the cooperative strategy

water and wastewater facilities in the U.S.

McKenzie, Mountrail, and Williams

is a popular way of funding infrastructure

The WAWSP predominantly utilizes water

projects in other parts of the U.S. and

from the Missouri River in Williston,

The Watford City Industrial Depot is a WAWSA-affiliated water depot. The sale of water to industrial customers is projected to generate the revenues necessary to pay for a significant portion of the $469-million WAWSP.

Counties. The population of the project’s service area is forecast to reach 160,000 people by the year 2038, according to a 2014 study completed by the North Dakota State University Department of Agribusiness and Applied Economics. “We’re trying to get this public drinking water project built over the next few years, so the infrastructure is in place as the population grows,” says Jaret Wirtz, WAWSA executive director. Industry funds public water system The Western Area Water Supply Project

photo credit: ae2S 92


(WAWSP) is a PPP that capitalizes on the

photo by vern whitten photography.


In the spring of 2015, the Williston Regional Water Treatment Plant’s capacity will increase from 14-million gallons per day (MDG) to 21 MGD. This is necessary to serve the growing population of the WAWSP service area, which is forecast to reach 160,000 people by the year 2038.

Bakken oil play’s need for water for the hydraulic fracturing process to fund a public drinking water project for five northwestern North Dakota counties. The sale of water to industrial customers is projected to generate the revenues necessary to pay for a significant portion of the $469 million project, which allows companies that are benefitting from the Bakken oil formation to give back to the communities impacted by the population explosion that accompanied the rapid growth of the oil industry in North Dakota. The Western Area Water Supply Authority (WAWSA), which oversees the project, currently has 11 industrial water depots and six direct connections to provide water to operators and service companies. “WAWSA is first and foremost a public drinking water system. Therefore, domestic water needs always take priority. WAWSA only sells the system’s unused system capacity to the oil industry during the population growth period and during periods of non-peak water demands,” says Wirtz.


PPP reduces financial burden Historically, North Dakota’s rural water systems have been subsidized heavily by grant dollars. “WAWSA’s industrial water sales greatly reduce the financial burden on local residents and the state’s taxpayers to fund this much-needed public water system. WAWSA’s financial plan also reduces competition with other important infrastructure projects that also need state funding, such as drought or flooding initiatives,” says Mark Owan, WAWSA board chairman. The WAWSA board includes representatives from five of the project’s member entities – the City of Williston, McKenzie County Water Resource District (MCWRD), Williams Rural Water District (WRWD), R&T Water Supply Commerce Authority (R&T), and the Burke-DivideWilliams (BDW) Water System Association. All of these entities have agreed to pool their individual infrastructure resources to efficiently deliver water to WAWSA’s customers.


“The WAWSP is a public-private partnership that maximizes member entities’ existing infrastructure for the good of the region. Reservoirs and pump stations have been constructed, and more than 540 miles of pipeline is already in the ground. In the spring of 2015, the Williston Regional Water Treatment Plant’s capacity will increase to 21 million gallons per day. This project is feasible because all of these communities are working together,” says Owan. The Cities of Williston, Watford City, Ray, Tioga, Stanley, Wildrose, Crosby, Fortuna, Noonan, Columbus, and Ross currently receive WAWSA service. Focus on rural areas WAWSA is requesting $120 million from the state water commission’s budget for the 2015-2017 biennium. The request includes $17.5 million for water treatment projects, $47.5 million for transmission projects, and $55 million for rural water distribution projects. During the past two legislative sessions, WAWSA received approval for $229 million in funding from



AE2S Water Solutions Freshwater Delivery Pipeline System Conveys Water to Temporary Storage Reservoirs at Pad Sites Southeast of Watford City



Project Development and Marketing Land Services/GIS/Mapping Water Sourcing Fresh Water Delivery Systems Water Reservoirs/Storage

Water Treatment/Recycling/Reuse Produce Water Collection Systems Salt Water Disposal Controls/Programming Operations



Above: When planning for the Western Area Water Supply Project in 2010, there were requests for just 400 rural users. The current number of requests is about 45 times the original estimate. photo credit: ae2s

Left: WAWSA has installed more than 540 miles of pipeline thus far. The cities of Williston, Watford City, Tioga, Stanley, Wildrose, Crosby, Fortuna, Noonan, Columbus, and Ross currently receive WAWSA service. In addition, all rural users served by McKenzie County Water Resource Distrist, R&T Water Supply Commerce Authority and Williams Rural Water District receive service from WAWSA. photo credit: ae2s

the State of North Dakota. More than 80

If WAWSA’s $120-million funding request

percent of that amount, $190 million is

is approved for the 2015-2017 biennium,

loans administered by the Bank of North

about 25 projects will benefit over the

Dakota that will be repaid using the PPP

next two years. The majority of the

concept. WAWSA’s loans are expected to

projects are rural initiatives including:

be completely paid off by 2038 when the

• Burke-Divide-Williams Water System Association distribution expansions.

population hits its peak.


OIL FIELD • INDUSTRIAL • COMMERCIAL • RESIDENTIAL Contact Don Ell, Williston General Manager

701-572-2718 STOP BY AND VISIT US AT 9124 Derrick Avenue Williston, ND 94


• McKenzie County Water Resource District transmission system improvements and distribution expansion. • R&T Water Supply Commerce Authority Water Treatment Plant improvements, transmission system improvements, and distribution expansion. • Williston Regional Water Treatment Plant and transmission system improvements. • Williams Rural Water District transmission system and distribution improvements. “Ultimately, bringing drinking water to the residents of five counties is what this project is all about,” says Wirtz. “As the former McKenzie County Water Resource district manager, I understand the long process of reaching rural customers with rural water system branches.” In general, rural water projects take years to complete, causing many rural residents to wait long periods of time for water to reach their farms and ranches. “Thanks to the North Dakota legislature, State Water Commission, North Dakota Industrial Commission, and the oil industry’s support for the WAWSP, we are able to utilize a groundbreaking publicprivate partnership funding model to move this public water project forward in a timely manner, without relying heavily on taxpayer dollars,” says Wirtz. w

1 - 8 0 0 - 2 2 7- 8 1 5 9

ROCK drill site



MAT drill site


Disadvantages - Damaging native farm land - Lost work time due to unsafe work surface - Delays in drilling - Unable to access due to bad weather - Wasting unnecessary amounts of rock - Unnecessary extra cost - High reclamation expense



Advantages - No reclamation cost - Reduce the environmental impact - Reduce the amount of rock on native farm lands - Minimize unnecessary accidents - Mats provide a safe and stable work surface - 24/7 all-weather access with no down time - Potential to drill one to two more additional wells per year - Reduce the amount of truck traffic on roads - No additional cost - Protect existing flowlines




Train and retain University of Mary partners with businesses to cover skills gap

The University of Mary offers tailored and scalable educational programs in partnership with firms spanning industries and markets as diverse as energy and healthcare to education and financial services. Flexible and accelerated programs offered onsite, at various satellite locations, and online allow employers and employees alike to balance their educational needs with the demands of a rapidly changing economy. Alumni Leah Rambur and Spence Stone leverage their University of Mary MBA’s in Western North Dakota’s booming oil industry. To those outside the Bakken region, the energy boom is something to be envied, according to Monsignor James P. Shea, president of the University of Mary. But to those who are tasked with leading and managing the boom, “it’s both an opportunity and a challenge,” he said. “The ‘skills gap’ in America is not new,” said Shea. “But what the oil and gas boom in states like North Dakota is doing is redefining what that gap means for all of us.” Shea’s comments reflect the findings of organizations such as Manpower and Citi GPS who predict America’s energy boom will last at least through 2020. Citi GPS expects that even with a sustained drop in oil prices, overall production will continue to grow. Manpower, in turn, is forecasting U.S. energy-related jobs to double to three million by the end of the decade. For companies like MBI Energy Services, reports like these are a bellwether for the future of business and higher education alike. “Industry and higher education have to find new and better ways 96


to partner if both are to succeed,” said David Angel, director of organizational development at MBI Energy Services, based in Belfield, ND. “This is about much more than ‘a time for change’,” said Angel, “it’s about changing times.” A new kind of ‘win-win’ As part of its effort to address the “changing times”, MBI Energy Services entered into a partnership with the University of Mary to deliver management training and certification to its employees. Dubbed as the Operations Management Certificate, the training provides job-ready skills that employees can apply to their work, while also positioning them to complete a bachelor’s in business administration if they choose to go on. According to Manpower, partnerships like this one between MBI and the University of Mary point to the true nature of the challenges facing employers and educators today.


University of Mary students benefit from robust undergraduate and graduate programs taught by vibrant faculty like Raquel Jessen, who bring their subject-matter expertise and industry experience to the classroom. necessary to ensure that companies thrive, and the energy sector remains a key driver of economic growth for decades to come.” The study goes on to conclude that, “Companies need to share their needs more openly while educators need to … build portable and standardized curricula customizable to changing needs and technologies.” Officials at the University of Mary agree. “The demand for programs like this continues to grow,” said Rachael Brash, director of graduate admissions at the University of Mary. “We are seeing a growing number of requests to offer programs similar to MBI’s.” Among other findings, the Manpower study states that, “the talent shortage in the energy industry has become too large and complex a problem for any one stakeholder or group to solve. Collaboration between companies, educators and government is

According to Brash, programs include training and certification in “high-need content areas”, such as operations management, accounting, and information systems. But the benefits don’t stop with the employer. The training programs are also a huge employee benefit. Once students complete their employer program, for example, they can apply the same credits toward a bachelor’s degree from the University of Mary. “It’s a win for everyone involved,” said Brash. “Employers are able to train and retain high-quality employees. Employees gain the skill sets they need to succeed in their career path. And we get to partner with both.”

A COMMITMENT TO YOUR SUCCESS. A North Dakota company that’s been serving the state for more than 18 years, NTI is located throughout the upper Midwest. Talk to us about your project. • Geotechnical Engineering • Materials Testing Services • Forensic Engineering • Special Inspections • Environmental Consulting

Understanding ‘client needs’ is key NORTH DAKOTA FARGO: 701.232.1822 GRAND FORKS: 701.219.0920 MINOT: 701.839.5400 BISMARCK: 701.425.5791 MINNESOTA MINNEAPOLIS: 763.433.9175 ST. PAUL: 651.389.4191

3522 4th Avenue South • Fargo, ND 58103 • 701.232.1822 98


While the trends affecting the energy industry may be common, their net impact at the company level is not. As a result, the University of Mary is very careful to note that what may work for one employer may not be a fit for all. “Businesses rightly expect more than a catalog of pre-packaged training or education offerings. It’s imperative that educators offer flexible programs tailored specifically to each unique partnership,” said Michael McMahon, assistant vice president of enrollment services at the University of Mary. According to McMahon, the University of Mary follows a systematic process, including a free education consultation that yields a full needs analysis, prior to presenting a solution proposal. “Too often the trend in higher education is to offer a standard,


Once students complete their employer program, for example, they can apply the same credits toward a bachelor’s degree from the University of Mary. “It’s a win for everyone involved.” ready-made solution in response to a specific need or challenge. Before we ever talk about possible certifications and degree programs, we make certain we understand the challenges our partner firms are facing. Then we work on creative solutions.” “Doing so saves everyone time and money in both the short and the long-run,” he explained. How the program works Once a needs analysis is completed, the University of Mary works with employers to devise certification and degree programs that best fit their demands. Offerings cover everything from course development and custom microsites to placement of key instructors and utilization of the latest learning technologies. “Flexibility is more important than ever,” said Angel. “Our employees are very busy, both at work and home, so they need to have options for completing their coursework. They don’t have time to drive long distances, and yet taking a class online may not always be the best fit either.”

As part of its effort to meet the diverse needs of today’s learners, the University of Mary offers courses in a variety of settings. Students in the MBI program, for example, can complete courses at a satellite campus near work, online, or via interactive video conferencing. “We strive to provide the best instructors possible, professionals who have firsthand experience with the workplace challenges our students face,” stated Brash. “Sometimes the best way to do that is to put them in a virtual classroom with an instructor who is engaging them live from a site 200 miles away.” “It’s a great way to make sure our employees get the education they need,” added Angel. “Knowing our employees can get the training we need them to apply the very next day is what matters most – whether they get it in a classroom, online, or a live video network.” To learn more about the University of Mary’s industry-driven offerings, contact Rachael Brash at 701-355-8063 or w



23rd Williston Basin


Petroleum Conference & Expo By Ron Ness, president, North Dakota Petroleum Council This year will mark the 23rd year that North Dakota has partnered with Saskatchewan to host the Williston Basin Petroleum Conference (WBPC). The states and provinces within the basin have seen many changes since then. In fact, we’ve seen changes since just last year when the conference was held in Bismarck. These changes, however, are neither new nor insurmountable.

others to find better, more effective, more efficient and less-

The WBPC began as a hydraulic fracturing symposium and explored the technologies that have since unlocked the Bakken, defining our region as a top energy producer in the world. This is a feat that just a little more than a decade ago may not have seen plausible, because at that time, the Bakken was still considered uneconomic to produce. The relentless work of industry pioneers, however, led to the innovation and combinations of technologies that have since made the Bakken shale play a world-class resource. The conference has evolved since then to focus on more efficient oil drilling and completion methods that are helping us recover more resource from the Williston Basin.

ways to develop our natural resources, and this year’s WBPC

For several years, the Williston Basin has enjoyed growth and prosperity, helping move the U.S. toward more energy security and North Dakota into economic stability. The importance of this region to our nations is aptly summed up in this year’s conference motto: “One basin fueling two nations”.

We also want to thank this year’s participants and sponsors. We

Our success in increasing production, however, does not come without its challenges. Over the past few months we have seen the economics in the Bakken change, but the fact that the Williston Basin contains a vast reserve of oil has not. This knowledge has driven industry giants to find new ways to extract that resource in the past, and no doubt it will drive 100


expensive ways of recovering it. Today, our industry’s best and brightest must now find ways to make the economics work if we wish to continue on our paths to becoming energy superpowers. If that first conference taught us anything, however, it is that our industry has the talent, innovation, knowledge, and skill to find new and better could very well be where the seed for the next big technology or efficiency may very well be planted. We want to thank the Government of Saskatchewan Ministry of the Economy and Petroleum Technology Research Centre for organizing this year’s conference. Putting together a worldclass conference of this magnitude during even good times is not easy, and during tough times, it presents more difficulties. Regardless, these industry partners continue to outdo themselves, and we consider this year’s conference – just like past years – to be a worthwhile investment. recognize that there are many shows each year focused on the oil and gas industry, but your continued support ensures that we can continue the WBPC and its reputation as one of the best and biggest conferences dedicated to the Bakken and shale plays overall. A few years back, the motto for the WBPC was “The best is yet to come”. We still believe that’s true. We look forward to the discussions that will grow out of the 23rd annual WBPC and continue the momentum we have seen in the Williston Basin well into 2016 and beyond. w


Corporate 406-433-8290 • Field Yard 406-482-4927



Where you want to be.

Partnerships play important role in Salvation Army’s outreach

Captains Joshua and Rhegan Stansbury have been leading the Williston Salvation Army since 2011.

This year, The Salvation Army celebrates its 150-year anniversary. It is no surprise that our history is deeply intertwined with world history – cultural, economic, and spiritual. Rolling with the punches suits us. Standing in the gap suits us. Being the clarion call suits us. And as the economic whirlwind of the oil industry affects lives throughout the Bakken – being ready to help with compassion suits us.

communities strong and thriving. No matter the circumstance, the Williston Salvation Army is committed to the operation of our programs and services to ensure that they remain relevant to the current needs of individuals and families in our area. We get creative and diligent to find new and improved ways to fund and develop the muchneeded outreach that takes place through our organization. The

One thing is certain: life in the Bakken is always interesting. We

Salvation Army continues to grow and expand exponentially

learn to stay on our toes and expect change at any point in time.

from year to year in its local outreach to those in need. We are not

We find creative ways to keep in step with the current state

stagnant in the implementation of new ideas and planning for the

of our economy. We work hard and do our best to make our

demands of the future. We are proactive. Thrift store One project that has received focused attention at the Williston Salvation Army during the past several months is the effective processing and selling of donations at The Salvation Army Family Store. The purpose of the thrift store is to: • Provide a quality discount shopping experience for our community. • Offer vouchers for people served by The Salvation Army to receive free items when they cannot afford to shop. Volunteers play a crucial role in the success of The Salvation Army Family Store.



Phone: (306) 823-4789 Fax: (306) 823-4277 Toll Free: 1-866-384-4789 PO Box 276 Neilburg, SK S0M 2C0



Polyethylene Products Ltd. Wellhead and Switch Valve Shelters Custom Design and Molding

Wellhead Shelters • • • •

Durable polyethylene construction Lightweight • Virtually indestructible Insulated • Very economical Many sizes available

Custom Design & Molding • No maintenance • Variety of secondary containment products • Plastic welding

Above: Project Heat gives men a temporary place to sleep in the winter while they search for work in the Bakken. Left: Hiland Partners serves monthly meals to those who are hungry. • Create sustainable funding through the store’s revenue for the programs and services that The Salvation Army offers to the community. Indeed, when someone donates to The Salvation Army Family Store, they are providing a funding source that facilitates lifechanging services for those in need. Because of the income that the Williston Salvation Army could potentially receive from the thrift store, the decision was made this fall to revamp and overhaul the store’s processes and procedures. An employee from The Salvation Army Adult Rehabilitation Center stores in Minneapolis, MN, spent three months in Williston retraining staff on the daily operations of running the store. The result? Faster donation processing, quadruple the amount of product for sale, and double the amount of sales compared to the same months the previous year. Thanks to these improvements, the Williston Salvation Army is better positioned to enjoy sustainable income that ensures the free services provided to those in need are not cut when other financial donations fluctuate. More than ever, community support of the store – both volunteers and customers – is critical for the current and future impact that the Salvation Army will be able to have in meeting needs of those who have nowhere else to turn. New hot meal program Another creative approach to meeting a unique challenge became reality when Hiland Partners, a local energy company, approached the Williston Salvation Army in January 2014 looking for a way to get involved in serving our community. Hiland Partners had a particular interest in feeding hungry people in the city of Williston. Unfortunately, the Williston Salvation Army does not have a budget or facility for feeding large groups of people on a regular basis. But instead of letting that stop us, we decided to try something new with this company. Once a month, Hiland Partners reserves the National Guard Armory Gymnasium across the street from the Williston Salvation Army. They order food, set up tables and chairs in the gym, and bring their own staff to serve a warm meal to anyone who can benefit 104


from it. The Salvation Army simply facilitates the event and invites the community to the monthly lunch. This one-day outreach serves almost 100 meals each month. The goal is to have one business provide a noon meal each week to help fill the stomachs of hungry people who are struggling to make ends meet. Cold weather shelter An innovative approach to a gap in services provided in Williston and Williams County is a temporary cold-weather housing solution called Project Heat. There is currently no homeless shelter in our area, and something needed to be done during the coldest months of the year to provide a temporary place for the men without housing to stay while they seek employment in the Bakken. Many people just need a place to stay while they get on their feet. New Hope Wesleyan Church and the Williston Salvation Army created Project Heat in February 2014. The first season of Project Heat ran last year from February 10 to March 31. Project Heat started up again at the beginning of November, leasing 10 beds at a local crew camp for the winter. Because the program is staffed completely by volunteers, the end date of Project Heat for this season is uncertain. The hope is that Project Heat will have enough manpower to run through the end of March this year. So far this winter, over 100 men have applied to stay at the cold-weather program. Whether it’s developing sustainable funding sources or discovering unconventional ways to meet needs, the Williston Salvation Army will continue its integral role in the Bakken. We will remain on the front lines, serving those who have nowhere else to turn. Partnerships with individuals, businesses, churches, and organizations are critical to ensure that The Salvation Army can fulfill its promise to do the most good for each individual that we come into contact with; serving them with love, dignity and respect. It is a mission that suits us. To learn more about the programs and services offered by the Williston Salvation Army, visit If you would like to partner with the organization to help meet the needs of local individuals and families, contact Kristin Oxendahl at 701-572-2921, or w

Production Tanks Heater Treaters Free Water Knockouts

Vapor Recovery Towers Gas Compressors Flow Lines


Transfer & Injection Pumps


Aftermarket Parts & Service

Dragon produces confidence. In oil & gas production, you have to know that you can get high-integrity surface production equipment built to your specs at the volumes you need. Dragon delivers this confidence. A U.S. company for over 50 years, Dragon has provided numerous oil & gas segments with superior equipment, including 25 years of custom coating and lining for tank trailers. We bring the same expertise and commitment to production equipment. Dragon can engineer and build equipment for custom orders of any size and deliver it anywhere. Our equipment is severe-duty engineered and our infrastructure covers all major production regions. If you want industry knowledge, 24/7 support, and the highest level of confidence, make it happen. Call Dragon.

U.S. owned and operated for over 50 years. — 1-800-231-8198 ŠCopyright 2015 Modern Group Inc. All rights reserved.

Pump Parts & Service

“ Keep Your


Dragon offers a full range of pump parts and expendables including fluid ends, valves, seats, and plungers for virtually all makes of pumps. Engineered and manufactured in our state-of-the-art facilities across North America, all Dragon equipment and parts are severe duty engineered to perform in the harshest environments. Dragon service centers are strategically located across every major hydrocarbon producing region and extensively outfitted with all the parts needed to keep your operation running. Backed by skilled technicians Dragon also has the expertise to completely rebuild your fluid ends and pumps.

DRAGONPRODUCTSLTD.COM USA Toll-Free: 1.877.783.5538 US Owned & Operated for over 50 years.


The oil industry, then and now Low prices, budget cuts and layoffs seem to be a recurring conversation in the oil patch. It is natural to feel anxious about the future when these conversations arise. For those of us who were working in the oil industry during the last crash in the early 1980s, the drop in prices and the accompanying news headlines might seem like déjà vu, and yes – there are similarities. However, there are also important differences between the recent (ongoing) boom and several previous boom/bust cycles – at least here in the United States, where the industry is driven largely by economics rather than political or nationalistic goals. Although technology and geoscience improvements had a role in previous oil and gas booms, including the current cycle, drilling targets up until now were nearly always various types of conventional reservoirs which trapped and concentrated mobile oil and/or gas that moved some distance (frequently many miles) from the source rock. The finding of these generally small and well-defined traps or reservoirs nearly always required drilling wildcat (exploratory) wells. Early drillers seemed to use an almost random drilling pattern, which was later followed by more targeted drilling benefiting from improvements in geological mapping/interpretation, and later various types of seismic technologies. Even with advanced types of seismic technologies and geologic interpretation in use today, there are still many dry holes drilled in pursuit of conventional (and new unconventional) oil and gas fields. In the past, many dry holes would generally be drilled and later written off as a loss before an operator would hit a viable commercial reservoir. However, once a commercial conventional



reservoir was found, and the boundaries of the reservoir delineated, it would be considered “de-risked”. The de-risked reservoir or field would then quickly and systematically have as many wells drilled (usually quite closely together) as needed to withdraw as much oil and/or gas as could be economically produced. Even during periods of low prices, the “de-risked” production wells would be drilled since the economics could be accurately calculated and conventional reservoir characteristics generally favored full-scale development. During periods of low prices though, the cycle of drilling many dry holes (each at a loss) in an attempt to find the next conventional field was just too risky, and would invariably lead to steep drops in drilling activity and “busts” in the oil patch. This is not the case in the current Bakken play, in which the target is not conventional reservoirs, but instead the source rock (Bakken formation) and adjacent “tight” formations (Three Forks and Lodgepole formations). In this particular unconventional play, the oil created in the organic-rich source rock is relatively immobile, having moved little if any distance from where it was formed, and the thousands of square miles of source rock in which oil has formed has been extensively mapped. Currently, there is no need for any wildcat dry holes to be drilled, as the outer boundary of the oil-producing source rock has been generally delineated, and every well drilled within the large area of production will produce some oil. Whether an individual well is an economic success will then depend on well costs, oil/gas production levels, and oil/gas prices. Much analysis has been done in the Bakken/Three Forks


play (also known as the Bakken Petroleum System, or BPS), and broad areas of relatively predictable production levels (including “sweet spots”) have been determined, delineated, and mapped. In essence, the play has been “de-risked” – with companies generally knowing how much oil is in a particular area, how many wells they need to drill to recover the oil, how much oil they will likely produce, and what the price of oil needs to be for them to make a reasonable profit. That is not to say that individual wells cannot have higher or lower production rates than predicted due to reasons such as the influence of natural fractures, well drilling and/or well completion problems, or some other unanticipated variable. In general, wells drilled and completed in similar fashion will also have production similar to nearby wells, and can be clustered into separate areas of similar levels of productivity and mapped. These mapped productivity zones then provide a generally “de-risked” scenario that has not occurred over such extensive areas of probable future production in previous boombust cycles. Currently, most drill rigs are working in areas mapped as the highest in potential production. While this only covers approximately 3,000 square miles of the BPS (roughly 25 percent of the BPS play) in play with the current lower oil and gas prices, that is still a large geographic area – much larger than almost any conventional field. Additionally, it is worth noting that the factors determining whether or not a well drilled in a particular productivity area will be economic are not static. Improved completion techniques and materials, improvements in drilling, and reductions in the costs of drilling, completions, and associated materials and infrastructure during this current period

of slowing activity can all contribute to the positive economics of new wells. Improved well performance and reduced well costs will dictate the minimum oil and gas prices needed for a reasonable return on investment for owners and operators of wells. It is important to recall that the current Bakken boom really began in eastern Montana (Elm Coulee Field) in 1999, then really ramped up in Montana during the early 2000’s when Williston Basin sweet crude prices were ranging between the < $20 to mid-$30 per barrel range – which is lower than it currently is. The play created excitement then (at those low prices), and will continue to be an attractive and commercially successful play in the Williston Basin for many years to come. Yes – the number of rigs has dropped, some budgets have been cut, and some infrastructure needs are delayed, however even in a low price environment there will continue to be a substantial number of rigs working and new wells drilled. Even with around 9,000 wells currently producing from the BPS, it has been estimated that it may ultimately take four to five times that number of wells to fully develop this unconventional resource play. Rather than being anxious, we should view this as a time to take a breath, catch up on backlog, and proceed in a more orderly and efficient fashion. Rig rates, completion costs, and most materials are dropping in price, and good operators with strong financials will be taking advantage of this situation – teeing up the maximum amount of production for the not-too-distant future when they can really cash in on rising oil prices! w BAKKEN OIL REPORT – SPRING 2015



NETZSCH provides custom diluent injection pumps for major energy transporter

NETZSCH large progressing cavity pumps installed at customer site.

Extreme cold, harsh operating conditions and the need for low maintenance drove NETZSCH engineers to develop custom-designed components and unique assembly procedures to satisfy customer requirements.

When a major Canadian energy

new infrastructure project that included

Viscosity variability requires

transportation company expanded

the construction of 15 new storage

greater injection control of

their operational infrastructure, they

tanks – ranging in size from 250,000

the diluent

reached out to NETZSCH for a customized

to 530,000 barrels – with all associated

The customer conducted an in-depth

pumping solution designed to provide

piping, manifolds, and booster pumps to

evaluation of pumping systems and had

greater operational efficiencies.

facilitate the transfer of crude oil to and

originally settled on a multi-stage canned

For more than 60 years, the Canadian

from the storage facility, the mainline

pump for this application. However, they

energy company has been in the business

piping system and other connecting

were concerned about the viscosity and

of delivering energy, including oil and

carriers and terminals.

injection control that this pump type

gas across North America. Among the

With a goal of reaching the highest

customer’s primary businesses is the

to work, it would need to operate at full

operational efficiencies at the storage

operation of the world’s longest crude

RPM/capacity and modulate the injection

facility, the customer was looking to

oil and liquids transportation system,

flow through a control valve. This design

install a pumping system that would

would potentially cause problems due to

conveying crude oil and other liquid

take the heavy crude oil from the various

the constantly changing viscosity of the

hydrocarbons from the point of supply

tanks and blend it with diluents to lower

product through the draw down of the

the viscosity of the crude that would

storage tank.

be pumped to the main pipeline for

As the crude oil sits in storage tanks over


a long period of time, lighter product

to refining markets in the mid-western United States and eastern Canada. The customer recently constructed a 110


could provide. In order for this pump type


settles to the top the heavier product to the bottom. Luke Bauer, an application engineer with NETZSCH noted that, “Crude oil is drawn off the bottom of the tanks first and this is where most amount of diluent injection is required. As the product changes in viscosity there is a constant need to adjust the amount of diluent being used. We approached the design of this pumping system with progressing cavity pumps to take care of operating issues associated with a state of constantly changing viscosity.” Custom pump design required A critical design issue was the extremely cold operating temperatures during the winter months. With ambient conditions of -22 to -40 °F / -30 to -40 °C and diluent temperatures as cold as -8 to -13 °F / -22 to -25 °C, NETZSCH engineers needed to carefully consider the elastomer

selection for this application. Because the NETZSCH progressive cavity pumps would have to operate outdoors, it was determined to use a reduced wall stator with heat tracing to ensure that a 23 to 32 °F / -5 to 0 °C operating temperature was maintained within the elastomer. In addition, three resistance temperature detectors (RTD) were to be mounted in each pump to provide feedback data to the control system.

NETZSCH designed a rotor that is

Another design issue was the chemical compatibility of the diluent. Bauer recalls, “Two different diluent samples were given to us and we did a very long immersion test with several elastomers at different temperatures to give us a better picture of how our elastomers would react. After extensive evaluation and swell testing, we determined that a special blend of Viton for the stator and seals would be used.”

customer requested that the pumps be

To compensate for the cold temperatures,

24/7 - NITROGEN - 365 DAYS

slightly oversized in order to keep the interference fit at sub-zero temperatures. This presented an additional hurdle at assembly time. The solution for assembling a stator on an oversize rotor was to pack the stators in ice in order to make assembly possible. Additional custom design features were required for this application. The mounted on a metal grid platform. The standard base plate for these pumps would not provide enough support, so NETZSCH designed a new base plate that incorporated a reinforced eightinch I-beam with a drip pan and lifting supports. The customer also requested a pump housing that included additional connections for a relief valve return and other monitoring equipment to be installed on site. NETZSCH designed a “spool” piece that will attach to the inlet of the pump housing to give the customer the added connection that they needed. PLANT: 1524 Lockwood Road, Billings MT 59101 SERVICE STATIONS: Williston & Dickinson, ND


Coming Soon... WYOMING!

Is your tank empty? Call us for a fill! (406) 697-1544

NETZSCH pump system provides customer with operational flexibility By using four custom-designed progressing cavity pumps piped to a common header, NETZSCH was able to provide the customer with the level of diluent injection control that they were looking for. With the NETZSCH system, the customer has the ability to run anywhere from one to all four pumps, and with the use of VFD’s they will have complete control over diluent injection. The large pump size (one the largest ever built by NETZSCH) also allows the customer to run the pumps at slower speeds for a greater life cycle – a critical maintenance advantage in the extremely cold operating environment. w



Brands YOU Count on People YOU Trust

• Mechanical Power Transmission • Electrical & Industrial Automation • Linear Motion Products • Bearings • Industrial Supply Products • Hydraulics • Pneumatics

• Hydraulic Hose • Industrial Hose • Material Handling • Process Pumps & Equipment • Seals & Accessories • Safety Products Call. 800-526-9328 Click. Visit. Over 550 Locations

Call. 800-526-9328 Click.


Oil and water can mix By Deb Smith

For more than a century, the Devils Lake Region, tucked into the northeast corner of North Dakota, has been a quiet paradise of outdoor sports and recreation, agriculture, tourism and family life. The area is named after the largest natural body of water in the state, more than 200,000 acres of high-salinity water that is unfit to drink, but supports some of the best fishing in the United States. Two major events within the last 20 years are transforming both the face and the future of the region. Climate change The Devils Lake region is a closed water basin with no natural water outlet. High rainfalls since the 1990s have caused the lake to overflow its banks year after year until today, where it is four times its original size as first surveyed in 1881. The water has swallowed agricultural and recreational land, roadways, railways and homes with unfailing regularity.

The challenges to the nearby city of Devils Lake have been enormous and disheartening. But the people of North Dakota are strong and determined, and with the financial support of more than $450 million from the state and federal governments, the Devils Lake Flood Mitigation Project came into play. Outlets to control water releases, pump stations, raised roads and new bridges, and the impressive 12-mile-long embankment project, begun in 2009 and completed in the summer of 2014, have given residents the security to build with confidence towards the future. Bakken oilfield Despite the discovery of oil in the Bakken formation in the 1950s, the 200,000-square-mile oilfield was considered to be a marginal resource. However, developments in drilling and recovery technology opened up the

reserves, and by the year 2000, the oil boom was on. Today, as a direct result of the Bakken, North Dakota is the secondlargest oil producer in the U.S. with an overall population growth of almost 10 percent, and an unemployment rate that is lower than the national average. Although Devils Lake lies on the periphery of the Bakken formation, with its flood mitigation program, readily available land and workers and access to quality recreation and family life, the community is poised to grow and flourish within the economic swell of the oil industry. Forward Devils Lake Corporation (FDLC) is a public/private non-profit organization that assists in the start-up, relocation, and business expansion in the Devils Lake area ( “We’re the economic development driver for the city [of Devils Lake],” says Rachel Lindstrom, executive director of FDLC. “Businesses come to us, discuss the needs of the community, location, etc., and we bring a proposal to the City; the City has the final approval.” The organization has been working towards the economic growth of the area since the 1980s, finding ways to work with governments at all levels to bring housing initiatives, business incentives and services to the local population. Proposed oil refinery In September 2014, the first major project associated with the Bakken formation came to Devils Lake when Vancouver, B.C.-based Eagles Ledge Energy Ltd. met with FDLC to propose the construction of a 20,000-barrel-per-day $200 million oil





and afterwards, 100 full-time jobs in operations and maintenance. And that would create at least another 400 spin-off jobs in the area. Workers and families will require housing, health, and education services; there will be opportunities within the hospitality and food industries, as well as manufacturing, and the City will be in the financial position to pursue even further investments. Lindstrom sees this as a turning point for the Devils Lake region. refinery. An extensive public information

highest quality control in manufacturing.

“It has been very hard, being one of

session took place within two months,

Once constructed, it will upgrade Bakken

the outside communities of the Bakken

and on February 3, 2015, the Devils Lake

crude into ultra-low sulfur diesel fuel,

area, to get attention from developers

City Commissioners voted unanimously

fulfilling increasing local demand within

because there has been so much need on

to approve land annexation, 356 acres

the farm and construction industries.

the Bakken itself. Recently that need has

in the new west-side industrial park. As

Powered by the local utility, the refinery

somewhat subsided, and now that we

Lindstrom explains, “This approval is

will be extremely clean, using the most

have the attention of the refinery, some of

contingent upon Eagles Ledge getting

efficient, effective technology available.

the developers and private investors are

their permitting approvals and a

With an aggressive building timetable

starting to reach out to us.”

development agreement established with

of 24 months and success through the

the City.”

permitting process, the refinery will be up

The proposed American Dakota Refinery

and running in 2017.

The huge potential of the Bakken oilfield is not limited to oil and gas production, but will also enable local economies like

will be a grassroots modular refinery

The project would mean work for local

Devils Lake to grow and prosper far into

with modules built off-site, affording the

contractors to assemble the refinery

the future. w BAKKEN OIL REPORT – SPRING 2015



Rapid City, South Dakota playing major supporting role in energy boom It’s a fact. During the Colorado Gold Rush of the 1860s, the bulk of the gold mining took place in the Rocky Mountains, not Denver. A decade earlier, San Francisco was hundreds of miles away from the California Gold Rush. Yet both cities played major supporting roles in the economic surges that followed the gold seekers. Today, we’re seeing a different kind of gold rush – for oil, gas, and other resources – in North Dakota’s Bakken formation, the Niobrara play in Wyoming and Colorado, and the Cowboy State’s venerable Powder River Basin. Rapid City, South Dakota and the surrounding Rushmore region –

Energy-related companies are already setting up shop in Rapid City. WL Plastics built a facility to manufacture pipe in Rapid City. Calgary-based Caber Engineering moved its U.S. headquarters to Rapid City. Law firms, engineering companies, manufacturers and others are opening offices here too. And companies that have been here a long time are expanding to meet the growing demand from the Williston Basin and other energy centers. “We’ve been talking to a lot of people in the energy industry, and they are seeing our region’s distinct advantages,” said Benjamin Snow, president of the Rapid City Economic Development Partnership. “Rapid City is a good strategic fit for them.”

less than a day’s drive from all of these energy centers – is playing a major supporting role in the West’s ongoing rush for Black Gold.

Caber Engineering, a Tetra Tech Company

Rapid City has the region’s best airline connections, including

Caber Engineering is a textbook example of the type of industry Rapid City hopes to continue attracting. The Calgary, Albertabased firm has been an energy industry leader in tank terminals, rail loading, gas processing, and carbon capture throughout North America.

direct flights to Denver, Dallas, and Houston. The economy is diverse enough to support two-career families. Housing prices are stable. Retail shopping is abundant. The region is home to two universities, including Rapid City’s South Dakota School of Mines & Technology, whose engineering graduates are stepping directly into the energy industry. The climate is mild, even in winter. And South Dakota’s business climate is among the best in the nation. 116


Caber has moved its U.S. operations to Rapid City and opened an office in the Black Hills Development Center on the campus of South Dakota School of Mines & Technology in the summer of 2013. The firm has since been acquired by Tetra Tech, which


enjoys worldwide clout and customers. One reason the company

The firm began production in 2013 at its new 45,000-square-foot

chose Rapid City is its location at the center of emerging energy

manufacturing facility in Rapid City. WL Plastics now employs

centers in Colorado and Wyoming, as well as the Bakken next

nearly 50 people. The facility can produce 60 million pounds of

door in North Dakota.

pipe per year in diameters ranging from one to 24 inches.

WL Plastics

Jackson Lewis LLP

WL Plastics, based in Fort Worth, Texas, saw the strategic value of

A law firm that specialized in labor and employment law, Jackson

Rapid City’s location early on. The company manufactures high-

Lewis LLP has 800 attorneys in 57 offices nationwide. The firm

density polyethylene (HDPE) pipe and related products for the oil,

has opened an office in downtown Rapid City and has grown

gas, mining, industrial, and municipal water markets. It’s one of

the practice to now have a contingent of five attorneys and two

the largest makers of polyethylene pipe in North America.

support staff. Among the firm’s client list is a growing number

SD TouriSm

RushmoRe Region of South Dakota A GreAt PlAce for enerGy comPAnies Moving a business. Starting a business. Setting up shop. It’s easy – and profitable – in Rapid City and the Rushmore Region of South Dakota. Low taxes and less regulation provide corporate comforts that few states can match. High, dry mountain air means less snow than Denver, warmer temperatures than Minneapolis and more sunshine than Miami. the rAPid city AdvAntAGe • Great Air Service – Direct flights to 9 cities, including Houston, Dallas, Denver. • Education – Top-ranked schools like South Dakota School of Mines & Technology.

• Economic Diversity – Energy, agriculture, tourism, medical, financial, manufacturing. • Black Hills are a million-acre playground for fishing, hunting, skiing, snowmobiling. find out more Benjamin snow, President greater Rapid City economic Development Partnership 525 University Loop Suite 101 Rapid City, SD 57701 605-343-1880



rapid city economic development

organizations that build or maintain industrial facilities. The company continues to rapidly expand its Rapid City workforce and industrial footprint to meet growing demand from North Dakota’s Williston Basin. Labor shortages in western North Dakota make it hard to find skilled help there, officials said. It’s more cost effective to build or repair equipment in Rapid City and then transport it to the Williston Basin. Kadrmas, Lee Jackson

of energy firms that need legal help

structures, including oilfield products

in matters such as employee benefit

such as production tanks, skid tanks,

programs, wage-and-hours compliance

containment systems, and catwalks.

and workplace safety.

The company has been around since

Attorney Kathy Barrow of Jackson Lewis

1945, and its headquarters is in Fargo, ND.

had been vacationing in the Black Hills for

TrueNorth acquired Dakota Steel in Rapid

10 years. She loves the area, and as she

City, a long-time regional supplier of

saw the growth of the Rushmore region’s

structural steel and fabricated products.

business community, she begged the firm’s management committee to let her


“plant the flag” with a Rapid City office.

A subsidiary of ISC Companies in

In the first year of their Rapid City office

Minneapolis, Adams ISC serves markets

being open, they have generated over

such as energy production, forest

$1.3 million in gross revenues for the

products, mining and construction. The

firm. She’s also a staunch supporter of

company’s products and services fall into

economic development.

four groups: the Machining & Fabrication

TrueNorth Steel

Group, Bearings, Power Transmission & Hydraulics Group, Equipment & Hydraulic

TrueNorth Steel manufactures tanks,

Repair Group, and Pipe & Vessel Group.

corrugated pine and other steel

Adams-ISC provides its services to

A well-established, 75-year-old engineering firm, KLJ has had a presence in Rapid City since 2000. The company’s Rapid City office deals with airport design, municipal transportation, survey work, environmental service, and archeological services. KLJ is headquartered in Bismarck, ND, and 10 of its 19 offices are in North Dakota. The Rapid City staff has been working on North Dakota projects and survey crews from Rapid City travel to North Dakota. The engineering staff helps supplement the project work from various North Dakota offices. To find out more about Rapid City and South Dakota’s Rushmore region, visit, or contact Benjamin Snow, president of the Rapid City Economic Development Partnership,, 605-343-1880. w

DEL Communications Inc. and you,



Communications Inc.



Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, Canada R3L 0G5 Toll Free:1.866.831.4744 | Toll Free Fax: 1.866.711.5282

5610 Interstate Avenue, Billings, MT 59101 Office: 406-839-5035 Fax: 406-294-5269

JMS Crane and Rigging is a full service company from the start of a project to completion by providing planning strategies, engineering solutions, crane lift, transportation, and cartage all while performing with integrity, efficiency, and safety.

Protection You Need, A Name You Can Trust.

Claim Post Resources is an emerging company in the oil and gas services sector. The company is focused on becoming a leading provider of premium white silica sand proppant to oil and gas operations in the Bakkens, Montney and Horn River basins. Tel: 416-203-3776 | Fax: 416-203-1254 903 - 141 Adelaide Street West Toronto, ON M5H 3L5


Oilfield Auto Property Commercial General Liability

511 2nd Street West, Williston, ND 58801 701-572-3786 |




The next chapter

Graybar Electric in Watford City, ND.

Miller Architects & Builders addresses retail needs in the Bakken By Jillian Mitchell The American Dream is alive and well in the Bakken region. As the oil boom continues, so too does construction, with new housing, shopping, office/retail and recreation/entertainment developments catering to the area’s newcomers.

chapter, specifically through developments such as the Watford

“It’s really vibrant here,” shares Dennis Wessel, a development consultant for Miller Architects & Builders out of St. Cloud, MN. “There are lots of opportunities for people who want to pursue it.”

Williston, newly named Harvest Plaza.

Since 2008, Miller Architects & Builders has established a strong presence in the region, with a collection of multi-family housing units and hotels, including 2008’s Candlewood Suites in Williston; a nearby HomStay Hotel and Holiday Inn Express constructed in 2009 and 2011, respectively; and spanning the state, the HomStay Suites in Dickinson and the MainStay Suites in Tioga. The firm’s latest addition, a MainStay Suites in Stanley is an equally anticipated development.

hasn’t; it has plenty of activity,” says Joe Seifert, president of Miller

This next round of construction sees the five-generation company branching into a new phase, with retail and office space.

Business Center, a 32,000-square-foot, two-storey commercial office and retail development complex in Watford City, ND, and a new 40,000-square-foot, two-storey commercial development in “We’re still doing multi-family and housing. The office space has cooled off a little bit just to see what happens, but the retail Architects & Builders. “The retail planned is more conventional – a restaurant or deli, fares that don’t require a whole lot of labor force.” Of course, there’s much discussion surrounding the relationship between oil prices and the region’s construction. To that end, Wessel remains optimistic. “With low oil prices, it’s still a great opportunity for everybody,” he says. “The best I’ve heard it described is when you put a cruise ship in neutral, it takes a while for that ship to slow down;

Wessel confirms that there is much opportunity in the region for construction, but the demand has shifted slightly. “Certainly with all the housing that has been built in the last few years, it makes logical sense for the retail and office portion to catch up,” he adds.

likewise, when you put that ship in gear, it takes a while to move

The design-build firm anticipates much success with this new

pressure in oil.” w

forward again. When you look at the big picture, it’ll put some price pressure throughout the whole system – apartment and home prices, service prices – but it’ll take a while to see that price

Watford Business Center in Watford City, ND.



COUNT ON US 1,350 locations. all 50 states. 19,000 associates. 60 years in business. In the industrial business, time means money. at Ferguson, we understand the needs of the industrial industry. Ferguson is one of the leading suppliers of industrial products in North america. It’s true that our inventory is huge with thousands of your industrial products in stock. and we fill your orders accurately and right away. But there is one thing we supply that industrial professionals have come to rely on again and again for over 60 years – our people.


Ferguson waterworks Bismarck 1201 airport Rd (701) 258-9700

FERGUSON.COM/watERwORkS Nobody expects more from us than we do ® ©2014 Ferguson Enterprises, Inc. All rights reserved.

Belfield 3358 Hwy 85 N (800) 932-8759

m space modular building

M SPACE presents new rentals in Bison Run New twin homes are available for rent in Watford City, North Dakota

Situated in the Northwest corner of McKenzie County, North Dakota, M SPACE’s newest housing development, Bison Run, is open for rent. This quiet community is located within minutes from downtown stores, restaurants, schools, and the community center. It offers convenient access to major highways. Bison Run is the fifth community in McKenzie County built by M SPACE. This twin home development provides comfort and convenience in an area that has a great need for quality housing options. Each home is approximately 1,700 square feet, featuring three bedrooms and three-and-a-half bathrooms. These rentals are available fully furnished, equipped with everything from linens to kitchen utensils. “Bison Run residents will appreciate the well-planned details of our community, from wide-paved roads to large truck-sized



garages,” said Jeff Deutschendorf, president and CEO of M SPACE Housing. “As always, M SPACE provides quality homes, offering rental pricing relative to the market.” M SPACE Housing ( provides homes to individual and corporate clients. The company offers a diverse range of housing options in the Bakken region, including efficiency and workforce housing, and single-family and multi-family developments. These homes are all built with a commitment to quality and attention to detail to provide residents with the best quality of living. Bison Run is located on 25th Avenue Northeast in Watford City, in the 58854 zip code. For more information, call M SPACE at 701.484.1891. w

WE PROUDLY SERVE THE SASKATCHEWAN & MANITOBA OILFIELDS. We are available to travel in any parts of Canada & U.S. to meet your needs.


NACE Accredited

(National Association of Corrosion Engineers)


THE ISSUES Corrosion of well casings is a serious concern. When well casings are exposed to surrounding soil, electrochemical cells form which leads to active corrosion sites and eventually to penetration of the external casing, leading to expensive repairs, environmental damages and production downtime. THE ANSWER CAT-TEK’s cost effective well casing cathodic protection program is a fraction of the cost of the work-over of a well casing and/or flow line leak into the environment and loss of production. We base our CP systems on your needs and your environment.


CAT-TEK Ca thodic Ser vices | 601-6th Street, Estevan, SK S4A 1A5 Ph: 306.634.1917 | Fax: 306.634.1918 | Web: Quality. Control & Reliability With over 30 years of combined experience in the Oil Field...We offer superior service to our clients’ needs. Committed to Health, Safety and our Environment CAT-TEK Cathodic Service is committed to health and safety and minimizing the impact of our activities on the environment. CAT-TEK provides a “one-stop shop” for provision of construction CAT-TEK Cathodic Services is headquartered in an integrated workshop and office facility in booming oil community of Estevan, Saskatchewan, Canada Competitive Rates Many of our clients consider us lower than the competition, because of our efficiency, experience and our world-class equipment. We go where you want us We are available to travel in any parts of Canada & US to meet your needs. CAT-TEK Cathodic Services 601-6th Street Estevan, SK S4A 1A5 Canada Ph: 306.634.1917 Fax: 306.634.1918 Web:

CONSTRUCTION Division Oil Field & Commercial Construction “Over 30 years of combined oil field experience” No job is too big or too small...we’ll do them ALL! • BACKHOE SERVICES • CHAIN/PLOW TRENCHING (year round) • PILES & POSTHOLE DRILLING (up to 18” diameter to 12’ depth) • WATER WELLS/DEEP HOLE DRILLING (drill to 2000’)

CAT-TEK Cathodic Services was established to meet the demand of the Oil & Gas industry for the construction needs. Today, CAT-TEK offers a complete competitive construction package from initial investigative survey through engineering design, site installation and commissioning of systems with subsequent planned operational inspection and maintenance.

• Competitive Rates • Experienced • Reliable • Prompt Service

“Call us today for a FREE Estimate”


Stranded gas fuel sources energize and optimize temporary power solutions By Forrest Marsh, Aggreko Oil & Gas North America

In less than a decade, North Dakota crude oil production jumped to 34 million barrels in July 2014 – equaling the state’s production numbers for all of 2005 in just one month.

equivalent to over one-third of the natural gas produced in 2011. The policy poses a daunting challenge to operators in the Bakken, and the lack of available infrastructure to capture and

There is continued success of the unconventional development

transport stranded gas places additional burden on production

technologies, such as horizontal drilling and hydraulic fracturing,

companies to adhere to the restrictions or face penalties

which have made oil and gas accessible within tight shale

with dramatic financial consequences, such as capped well

formations in North Dakota’s Williston Basin and across other


basins in North America. However, oil and gas operators in remote Bakken fields continue to encounter insufficient utility infrastructure to energize operations and also must contend with regulations to reduce flared (stranded) gas, while managing their operations in the current low-commodity price environment.

Natural gas generators, however, provide the option to use “lean burn” technology that features improved fuel consumption efficiency and meets stringent emissions guidelines at both federal and state levels, or “rich burn” technology that can handle high BTU flared or stranded gas. While “rich burn” engines

Many operators are turning to temporary power solutions that

consume more fuel and can burn the rich natural gas liquids,

leverage excess flared/ stranded gas captured from the wellhead,

it still provides better emissions compliance than diesel fired

which allows for operators to quickly optimize production

generation, while reducing the volume of flared gas, bringing

activities, reducing operating expense, while also adhering to

the operating company closer to meeting their objective on

environmental regulations that require a reduction of flared gas.

reducing flared gas.

Decreased costs, emissions

Additionally, the U.S. Environmental Protection Agency (EPA)

While diesel remains one of the most widely used fuels for

than diesel, and has a 25 percent lower carbon emissions

powering drilling equipment and artificial lift pumps, costs associated with using diesel are far from optimal. Temporary natural gas-powered engines, in comparison, are gaining popularity in the oilfield for their ability to run on stranded gas.

estimates that natural gas produces 85 percent fewer emissions footprint. Scalable solutions As operators plan their drilling program, they should be working

Operators are finding that natural gas generators provide a

with the field engineering team and temporary power provider

significant fuel-related cost savings of 25-45 percent when

to develop an optimal early-stage power plan. Along with

operating long term and leveraging stranded gas resources.

focusing on horsepower, it is instructive to consider the motor

Using stranded gas also avoids the need to transport other fuels

start characteristics, power load in kilowatts or megawatts (and

such as liquefied natural gas (LNG) or compressed natural gas

amperage), that will be required for a given field operation, and

(CNG). Furthermore, the units exhibit longer run-times between

then deliver a system scaled to that power requirement.

service intervals when compared to diesel engines, thus maximizing field uptime and reducing maintenance costs.

To accommodate production growth from the initial development on the single well pads, then to the need to

Further, in July 2014 the North Dakota Industrial Commission,

optimize operations through the use of multi-well pads, a

a regulator and promoter of the state’s oil and gas industry,

long-term power management model should be in place to

approved a policy requiring operators to reduce flaring to 23

accommodate the ramp up in power needs for the operator.

percent near term, and a long-term expectation of 10 percent – a

In remote areas without an existing utility infrastructure, this

significant decrease for operators who reportedly flare at levels

typically calls for placing modular parallel capable power




To accommodate production growth from the initial development on the single well pads, then to the need to optimize operations through the use of multi-well pads, a long-term power management model should be in place to accommodate the ramp up in power needs for the operator. generation units at the well pad (single to multi-well pad) to provide the power needed as production rates climb.

Tried and tested One North American operator was developing in remote areas

The scalability of natural gas power solutions meshes well

without a grid power. The operator wanted to be prepared to

with the multi-well pad concept that is utilized to optimize the

scale up when wells began producing, and started to investigate

operation, in which five to 20 wells may be constructed from

alternate power solutions. The ultimate goal was to select a

a single pad. This design adds a great deal of complexity to a

power solution that would afford more efficient growth plans.

field’s architecture, processing and power needs as the pad can also include hydrocarbon and water separation, along with flow measurement and transfer pumping to the central tank battery, or perhaps off the pad to a central processing facility that increase the power load. As the first few wells on the pad start to decline in pressure

The operator consulted with a temporary power provider to develop a scalable, temporary natural-gas power solution that would address different growth phases and shifting drilling locations. First, as the wells were initially coming online, a mobile natural-gas generator utilizing well gas was installed.

and volume, the right-sized temporary generation option

Once overhead power lines were installed, 40 small generator

should be ready to provide power to the selected artificial

sets were removed and replaced with a single, natural-gas micro-

lift system. As these additional wells come online and cannot

grid hooked directly into the operator’s well gas, and connected

continue in a “free-flow” mode, the temporary power option

to the overhead power lines.

should be scalable to accommodate changing power needs,

Over an 18-month time period, the micro-grid – which included

without interruption. Modular units can be added or removed as required, which prevents idled capacity as demand changes and eliminates the need to run larger single-power units, such as turbines on partial load.

four 1.3-MW containerized natural gas units (for a total power output of over five MW) – was used to provide the operator’s power requirements with optimal efficiency. Further efficiency improvements came from the use of remote monitoring

A final full-scale power option should be ready once the utility

technology, which helped diagnose and proactively address any

infrastructure (distribution) is in place. This typically calls for the

equipment-related issues.

connection of a micro-grid system, which can be five to 10 MW (or greater) power plant in the field that can power all of the well pads and the central processing facility (CPF) simultaneously. With this micro-grid solution in place, the individual modular units can be removed from the field, refurbished and deployed in another field. The move to a micro-grid not only assures greater reliability in terms of power supply, but also provides significant cost savings to the operator. Diesel power options typically cost around 30 to

The micro-grid approach brought reliable and consistent power to the developing field – an approach the operator could easily replicate as needed, when drilling locations shifted. The central power plant design included built-in redundancy and uptime comparable to the grid; the system is currently operating at 99.8 percent reliability. The natural gas option delivered power at a cost of approximately $.12 - .14/kWh, and equated to a fuel savings of roughly 39 percent compared to diesel.

40 cents per kilowatt-hour (kWh), while a natural gas option on

In conclusion, temporary power generation systems leveraging

a single pad site costs between 15 and 25 cents per kWh. As gas-

stranded gas captured from the wellhead can successfully

supplied power generation is expanded to the micro-grid scale,

address an operator’s flaring challenges and supply a reliable,

the costs drop to seven to 14 cents per kWh, which is often in the

abundant and cost-effective power source to assist production

same cost range as power supplied from the utility grid.

efforts. w BAKKEN OIL REPORT – SPRING 2015


motion industries

Conquer those time bandits Your distributor connection can provide unlimited time-savings opportunities By Motion Industries

Time is a most valuable resource. Once

Although the two examples are related

over a programmed period of time (up to

it is lost, we can’t get it back. But

to the downstream sector, in general

one year).

fortunately, time can be managed.

the solutions can be applied to the

In most cases, we have the power

midstream and upstream sectors as well.

to prevent lost time; we can make time seem to stand still; we can even

$31,000 annual savings with

Perin said, “The customer was very satisfied with the results, and in the four years since installation there have

lubrication technology

been no breakdowns; only scheduled

industrial facilities and sites, time gain or

One of Motion representative Brian Perin’s customers, an oil refinery facility,

The calculated savings from reduced

savings – whether through preventive maintenance or through corrective

needed a solution to reduce labor cost

measures – is a common, yet critical goal.

and downtime by extending the life of

take actions to gain time. Relating to

An initial investment that results in recurring time savings is a smart move that can pay off exponentially longterm. In many cases, this is done in order to decrease the possibility of future downtime. Using the right parts for

the bearings on their long-belt conveyor. This particular conveyor transports

preventative maintenance change outs.” downtime and labor, plus the breakdown savings potential, came to $30,920. Multiplied by four years, the total to date is $123,680.

material after coker processing. The

A “split” decision saves

lubrication to the bearings were done

an oil refinery $12,000

manually, which was taking up to seven man-hours per week.

During a regular visit to an oil refinery customer’s machine shop, Motion

specific applications is key to minimizing

Perin asked the customer about the

Industries representative Martin O’Brien

maintenance and preventing mechanical

environmental conditions (weather,

learned about a planned rebuild of a

dust, dirt), the temperature, the load,

cooling tower and the tremendous

and their current lubrication method.

amount of time and labor involved with

downtime can really hurt financially.

He started to investigate the automatic

disassembling and reassembling the equipment. The root of the problem was

Facilities working with their distributor’s

grease lubricator solution by contacting his Perma regional sales manager for

the solid four-bolt flange bearing, which

technical consultation.

was used to support the shaft in previous

failure. Especially in an industry like oil and gas, the consequences of machinery

representative, who has access to specialists, multiple manufacturers, extensive parts inventories, and, who has the industry expertise to tie this all together, have the advantage of this additional resource to help determine

After some collaboration, the team chose the Perma Star Vario single-point lubricator (sizes 250 and 120) – and ordered enough for the 200 lubrication

units. The bearing was time-consuming to take apart, and the customer was looking for a solution before starting the next rebuild.

points on the conveyor system. After

In order to determine the most

receiving the units, the customer installed

appropriate bearing, O’Brien asked about

The following case studies illustrate how

them in mounting brackets attached to

space restrictions for mounting, as well

thoughtful solutions resulting in time

the equipment that dispenses grease to

as temperature extremes. As he was

savings – converted to production and

the bearings. The lubricators are filled

thinking about a switch to a split bearing,

labor savings in dollars – benefitted two

with a proprietary grease blend (supplied

key was finding out the weight of the

different oil refineries in the Western U.S.

by the customer), which is dispensed

shaft to obtain its vertical load and RPM.

time-savings opportunities.



motion industries

Even though the split bearing was more expensive than the solid, the long-term advantage of recurring time savings won out with the customer. “Load is a factor when changing to splitstyle bearings, as they normally have less load capacity due to the split,” said O’Brien. He interchanged the original bearing to a Cooper split four-bolt flange unit, which had an almost identical

take the time to be hands-on.

provides industrial parts and services

And with this kind of support,

to customers across North America. The

opportunities abound to overcome and

company is a wholly owned subsidiary

banish those expensive time bandits.

of the Genuine Parts Company. For more

Motion Industries is a distributor that

information, visit w

load rating and bolt pattern, for ease of installation. “Split bearings allow very easy removal of associated equipment compared to solid.” Even though the split bearing was more expensive than the solid, the long-term advantage of recurring time savings won out with the customer. O’Brien also took the time to research and help the customer find an easily removable epoxy mold material to facilitate the project by creating a mold of the area before the bearing was installed. The split bearing was a success, and the cooling tower was up and running four weeks ahead of schedule. The savings on that part of the project and for future labor was a conservatively estimated $12,000 for man hours and downtime.



• Hotsy has been providing pressure washing equipment to the Oil & Gas Industry since 1970 • ETL certified to UL-1776 safety standards • No open flame • Heavy angle iron frame and chassis with durable powder coat paint resists years of corrosion and rugged use

The customer was thrilled with the early completion, as well as the cost savings. A big criterion: Trust Workers in the downstream, midstream and upstream markets want and need to trust their vendors, including their distributors, to provide the most durable and long-lasting quality products, to determine the highest efficiency in applications, and to offer solutions for “best practices”. Oil and gas customers don’t have time for anything less. This expectation is driven from the ground up, and the distributor representative’s role is to know the industry inside and out


We service the Bakken Oil Fields with heavy-duty cleaning equipment. Our dealers are well-versed in the oil industry and can provide fast, dependable service. Hotsy’s are tough and built to last. We service your machines, providing genuine Hotsy parts, maintenance programs and on-site repair, keeping your pressure washer downtime to a minimum.


in order to support their customers and BAKKEN OIL REPORT – SPRING 2015



Employer associations: Helping businesses navigate and stay afloat Running a successful business is tough. Starting a successful business is even tougher. Many business owners start up as an expert doing the technical part of the job (the part that pays the bills) then run into trouble when they need to expand, hire, and manage employees. There are so many laws and requirements ranging from safety training and policies, to HR: hiring, firing, drug testing, compensation, recruiting the right employees, payroll, taxes, lawsuits, workers’ comp, and the list goes on and on. One solution may be to join an employers association. Generally employers associations deal with a specific sector of employment and are specialized in that sector. Not all employers have such an association to join. At Associated Employers (AE) and Montana Safety Services Council (MSSC) our business sector is simply “employers”. Most operators and OSHA standards requires every employer to have in writing an effective injury and illness prevention program that contains the following: • Policy naming the person or persons who have authority and responsibility for carrying out the safety and health program. • A system for ensuring that employees comply with safe and healthful work practices, which includes disciplinary action, as well as recognition of safe work habits. • A system for communicating with employees on matters relating to occupational safety and health, which includes provisions for encouraging employees to inform the employer of work-site hazards without fear of reprisal. • Procedure for identifying and evaluating workplace hazards, which includes scheduled periodic inspections. • Procedure for investigating an occupational injury or illness. • Procedure for correcting, in a timely manner, unsafe or unhealthful conditions or work practices. • Safety and health training for employees and supervisors. • System for documenting with records the scheduled, periodic inspections and the employee safety and health training – these records must be kept for five years. 128


Many companies are requiring these programs to be uploaded to a website run by a subcontractor management vendor. This task can be very daunting for someone who isn’t a safety professional. You have the contract, equipment, manpower and expertise to get to work but now you need a safety program and safety training uploaded to a website to get started. Employee issues are one of the biggest headaches business owners can have. Supervisor and crew leads are some of the most important people in any business. Do you give them the tools they need to succeed? The generally accepted traits that lead to a good manager are 85 percent people skills and 15 percent technical. Anyone who has worked with a poor manager knows this. Managers with people skills can alleviate many, if not all employee issues. Those without can do the opposite. Most people do not relish in the intricacies of employment law, required training, payroll, workers’ compensation, disciplinary action, employee handbooks and strategic planning. Are you charged with the task of having your employees trained, but do not know where to start? Is productivity and morale in your place of business low, and management does not understand why? Consider performing a training needs assessment first. You’ll optimize the benefit to your employees while saving on the bottom line. A training needs assessment is a tool utilized to identify what educational courses or activities should be provided to management and employees to improve their management skills and work productivity. Focus should be placed on needs, as opposed to desires. For example, a new manager that is having trouble relating to his employees would be better served by improving various management skills, as opposed to learning further tasks about the technical side of his job, which might be more interesting, but less effective in improving morale and productivity. Sustaining or growing a business takes a plan. Whether you are happy to stay where you are so you have more free time, or want to “take over the world”, you need to plan. The future should not be a vague concept, and strategy should not be a daunting task. Strategic planning is not something done only when times or profitability are bad. No matter how good or bad they are, they’re


Sustaining or growing a business takes a plan. Whether you are happy to stay where you are so you have more free time, or want to “take over the world”, you need to plan. going to change. A good strategy will help you anticipate and focus on possibilities. How can you do this? Step one is a strategic analysis of the various driving forces in the environment, like market segments, competitors, technology, regulations, economics, and operational efficiency. Planners also look at the various strengths, weaknesses, opportunities and threats regarding the organization. Step two of this process is setting strategic direction, which includes actions and deliverables like mission, vision, values, longrange and short-range goals. Step three is to develop an action plan, carefully laying out how the goals will be accomplished and how to monitor and evaluate the plan. The last and most important step is follow-up, monthly and annual reviews.

(406) 248-6178

Recruiting quality employees is the number-one issue brought up by members of AE and MSSC. To get quality employees you need to be an employer of choice. Take a look at Google or Facebook – quality employees are knocking down their doors. Obviously almost no small or mid-size employers can afford the amenities that these large companies are offering. So what can you do? First you need to find them, or rather they need to find you. There are many traditional ways to post job listings: newspapers, Job Service, word of mouth. But you may need to reach out further than the local or regional paper. Online job postings are a nice way to go, but the larger one can be expensive and give poor results. One local solution is Job Jupiter is a Montana-based-and-run job board with substantially lower rates than the national run sites. Currently, each job posted on is also listed on; free, bringing it to the top echelon of job searches.

(406) 248-4893

(406) 247-5855 BAKKEN OIL REPORT – SPRING 2015



The Montana Safety Services Council (MSSC) is a not-for-profit educational association established in 1993 to provide safety and health-related services. Second, you need to offer them a quality compensation package, and affordable health insurance is one of the biggest arrows in the quiver. Providing employees with healthcare coverage is essential in today’s market and needed to recruit and retain quality staff. With the latest changes and soon to be changes in the health insurance world, the marketplace is very confusing. One possible option to look at is joining a partially self-funded group health trust. There are many industry-specific self-funded

Since 1916, Associated Employers has been providing expert business and human resource advice, support, information, education, consulting and training. Outsourcing human resource needs can save you time, resources, and money. Our professional staff provides expert advice, support, information, research, and training in a wide range of human resource and business administration areas.

contracts are returned to participating members in the form of

The Montana Safety Services Council (MSSC) is a not-for-profit educational association established in 1993 to provide safety and health-related services. MSSC currently serves more than 150 businesses in all areas of service: manufacturing, construction, medical, retail, wholesale, transportation, and refining. Services provided include occupational safety training, consulting, technical assistance, needs assessments, safety audits, and safety program development to our membership and the public at

rate stabilization and maintenance of required reserves.

large. w

trusts out there, but not one for every industry. Associated Employers Group Benefit Plan & Trust can provide these benefits with the bonus of partial group pooling. Member employers can choose the options that best meet their company’s needs. There are no “owners” or “stockholders” expecting a return on investment or profit. All savings from administration and provider

Also producing

400 & 500 Barrel Fiberglass Tanks

Pro Tank Products announces that our new, state-of-theart, 70,000 square foot manufacturing facility is now open and producing 400, 500, 750 and 1000 barrel steel tanks. Located on the NW side of the Bakken Oil Play in Plentywood, MT our new shop can meet all of your Oil Storage Tank needs and save you thousands on shipping! We also manufacture 100, 200, 300 and 400 barrel steel tanks, coated steel tanks as well as Walkways and Walkovers in our Minot, ND facility. Ask about our inventory of 400 & 500 barrel fiberglass tanks available for resale to meet your needs. Visit or contact Butch Hensley - Production Manager at (406) 239-0916 or Sales Rep Lee Vander Vorste at (605) 484-4258 for all your needs. Corporate Office 406-765-2223 Plentywood Facility Main Number 406-895-2445 Minot Facility Main Number 701-838-6346 Trent Odenbach (Plentywood, MT) 605-830-9801 130



Integrated rod lift services. With the acquisition of the industry’s leading rod lift companies, Schlumberger now offers a full range of pumping services and local expertise for every North American basin. Whether you need reliable pumping units, downhole equipment, automation, or specialized training and support, we solve your lift challenges wherever you operate. Our artificial lift experts are committed to maximizing production with minimal downtime.

Find out more at *Mark of Schlumberger. Š 2015 Schlumberger. 15-AL-0011


Employers adapt benefits offerings in response to health insurance regulations, workforce challenges By Pat Bellmore Now more than ever, employers in North Dakota face increased challenges in developing their workforce retention strategies to remain competitive. The difficulties of handling the health management complexities of employees, navigating the Affordable Care Act, and the volatility of the health care industry in North Dakota have all contributed to those challenges. For the past 75 years, Blue Cross Blue Shield of North Dakota (BCBSND) has worked with employer groups to support them through changes influencing the industry. With service offices in eight communities across North Dakota, our account managers, wellness consultants, and other team members work with employer groups big and small to help them navigate the challenges of today’s market. Population health issues continue to be the leading drivers that employers look at when developing benefit structures to meet the needs of their employee base. Employer groups from across the state are examining how to best understand the health needs of their employees, while at the same time offering an attractive benefits package to their targeted talent pool. This is also a critical element in employee retention. Employer groups need to be aware of how their dollars are distributed for medical and pharmacy services, but focusing on medical costs alone may marginalize health as a human resources issue rather than a business issue. That can lead to a mindset of reducing costs rather than finding solutions to address both the financial wellbeing of the organization and the health of the employee population. We advise our employer groups that details 132


matter. That starts with the data that is specific to your organization’s employee population and their families. Meaningful information creates questions. How many employees have a chronic condition? Do your employees go to the emergency room for non-emergency issues? And, how many of your employees are up-to-date with their recommended cancer screenings? These kinds of questions are becoming more important, as it becomes more important for your employees to be more informed consumers of health care resources. The Affordable Care Act (ACA) has brought on new, complex regulations that affect North Dakota businesses. In 2015, the employer mandate took effect. The employer mandate requires all businesses with 50 or more full-time equivalent employees (FTE) provide health insurance to at least 95 percent of their fulltime employees and dependents up to age 26, or pay a fee. Serving as a trusted advisor for our customers throughout the state, we work with employer groups to help businesses better understand how to comply with the mandate and other regulations. Because we know every business is unique, with fewer and fewer resources available to manage through the changes, we offer educational workshops and materials, individual meetings and consulting sessions to cater to the diverse needs of employer groups. As federal regulations continue to change, we’ll continue to provide education and recommendations to help our employer group customers. North Dakota has witnessed many changes in recent years. The booming economy has provided a wealth of opportunity, and along with it, a wealth of challenges. Employer groups



Service offerings from BCBSND.

deal with high turnover and increased demand for the administrative and human resources duties of their businesses. BCBSND works with employers to analyze the entire benefits solution they offer in order to stay competitive. It is no longer viable to offer a health insurance option only. Ancillary products, such as life insurance, short- and long-term disability and others have become increasingly important. Employers looking to stay competitive are encouraged to review their benefit packages from a holistic perspective, reviewing the span of benefits. Does your business have questions about health insurance? If you’re an employer group leader, you can contact your local BCBSND representative. If you’re looking for health insurance for yourself or your employees, you can visit or call 1-800-280-BLUE (2583) to find coverage that fits your needs. As North Dakota’s oldest and largest health insurance company, and a member-owned nonprofit, we continue to work with and for our members to deliver high-quality affordable solutions. Pat Bellmore is chief marketing officer of Blue Cross Blue Shield of North Dakota. w

• One-piece TPR rubber protection that covers the back of the hand, fingers and thumb • Amazing dexterity and comfort • Kevlar ® reinforced thumb crotch

• High-visibility, corded double palms and contrasting-colored TPR back • Three-inch neoprene cuff with pull tab • Available with different palm materials • Available in sizes M-XXL • 1-800-222-1113




R&R contracting

A contractor’s dilemma How to maintain the same quality service you offered as a small company By Reed Reimer R&R Contracting began building railroad track in 1988. It started with a single project – the construction of a 1,900-foot spur track and one switch. The owner Bill Reimer, who had taken time off from BNSF to start R&R, ran his crew of three people doing everything with one front-end loader and an air compressor. This included putting together the track, pouring the rock and hand surfacing.

Fast forward to today, nearly 27 years later. R&R has multiple offices from North Dakota down to Texas, with crews based out of each location. The company has recently completed jobs as far east as Yorktown, VA, and is currently in the middle of a project in Richland, WA. Filling the space between with projects in the Dakotas, Illinois, Texas, and other states keeps them busy, but also means that they’ve had to move beyond doing things simply by hand.

Reimer was on site every day, managing his crew, managing the logistics, and always keeping the customer informed and up-todate with the project.

So how does a company that had such humble beginnings keep growing and maintain success? The simple answer is that you do everything in your power to maintain the level of service you started with. While easy to say, it is not easy to do. There are many obstacles to this single strategy.

This project was successful for multiple reasons; the first is that he finished on schedule, R&R made money on the project, and most importantly, the customer was satisfied. This is the model that R&R is built on.



Over 27 years, R&R went from a single crew (managed by the owner) to a couple dozen crews in varying scopes of work. Where

Railroad and Civil

New Construction Inspection Maintenance Repair Design

Serving the Bakken since the beginning! 800-872-5975


R&R started as a pure railroad construction company, they now offer: • Railroad – Design/engineering – Construction – Inspection – Maintenance – Production work (i.e. tie and rail programs) • Civil dirt work for: – General civil – Pipeline – Railroad projects You can imagine that with all of these lines of business, it could be hard to oversee each one with the care and time that that first job was managed with. It isn’t easy, but I’ll go through a couple points on where R&R puts their focus. The first thing the company has to do is to find managers that are not only able to do the job, but will have a semblance of care for the job that they do. This is very hard to do, especially when expanding the company offerings, as usually most people who are good at their job are already working.

Going from one crew to the dozens of crews that R&R has, they need strong and quality people at multiple levels of management, from the highest level of executive through the middle management (superintendents, project managers), to the people working in the field, the foremen. Having quality people in these roles helps on many levels, including helping any new personnel learn what they need to do their job, creating more efficient lines of communication between the office and the field, and making sure the customer is never that far away from contacting someone who can give them answers about their project. Some of the challenges of having exceptional personnel are not only keeping them happy, but working to retain them when the grass looks greener on the other side of the fence. R&R has had experience with employees being courted and poached by competition and customers. (You know you’ve got someone special when your customers are trying to hire your skilled people away.) A difficult challenge comes in keeping the good employees in place. Sometimes you can, and sometimes you can’t. Sometimes the deals they’re offered are just too good, and all you can do is wish them well. It’s always painful to lose a good employee that you’ve invested time and money into training…

Here is where we find the dilemma: How does our company find the help we need?

but sometimes the reward is when occasionally, they want to

In the short term, there aren’t that many options… you search and search and hope to get lucky; maybe finding someone leaving another company because they want a change; or you outright hire them away from your competition.

Keeping a full complement of quality employees will definitely

A better option, if the means exist, is to take an employee who has the capacity to grow and learn, and train them into the position you want them in. The benefit of doing this is that not only do they learn the things you need them to learn, but also they will hopefully internalize the care with which they were trained and have that reflect in the way they treat the others they work with, and the customer.

discussion go a long way to sustained happiness and growth,



come back. remain a constant struggle. Thinking about employee growth through training, and programs to engage them with the company may help to retain them. Communication and but I believe also helps them buy into the company on a higher level. Keeping quality employees ensures that the project will be looked after, and in the end, it’s important to keep customers informed about their project, and ensure that the quality of the project not only keeps them happy, but keeps them hiring you for future projects. w


Dura Life® CONTAINMENT Systems

NEW! EZ Grab Pipe Stands Available in 8” and 12” Sizes E W !



COMPLETE • Liners & Fabrics • Load Line Spill Boxes • Cross-Over Steps • Tank Rings • NEW! EZ Grab Pipe Stands • Drum Containers • Painted Containment

10 AND 12 Gauge Systems Come Standard With


Sioux Steel Dura Life® Containment Systems • 1-855-266-8246 • Sioux Falls, SD The Leading Provider of Secondary Containment Systems for the Oil, Gas, Petrochemical & Agricultural Industries.



The important role of pressure transmitters in the oil & gas industry In the dynamic and volatile environment of the oil and gas industry, the pressure is on to use rugged, reliable measurement instrumentation to keep operations running smoothly and safely. As oil efforts push ever further into remote locations to find new oil sources, the equipment used in exploration, drilling and production has become increasingly complex, making the need for dependable and durable pressure sensors more critical than ever. Applications that require hazardous location pressure transmitters include wellheads, hydraulic fracturing, service trucks, drilling tools, mud systems, intelligent pigs, core analysis, compression systems, and vapor recovery units. During hydraulic fracturing, or fracking, millions of gallons of water, sand, and chemical additives are pumped into the well to break apart rock and release gas and oil. These materials are injected at high pressures up to 10,000 psi down and across into horizontally drilled wells as far as 10,000 feet below the surface. The pressurized mixture causes the rock layer to crack. These fissures are held open by the sand particles or other viscous materials so that gas and oil can flow up to the well. Pressure transmitters play an important role in the hydraulic fracturing process to monitor pressure at different stages in remote data-monitoring vehicles, including fracturing pumps, blending units, and cementing, wireline and workover trucks. FM, CSA and ATEX-approved explosionproof and intrinsically safe transmitters must be used for safe, reliable, repeatable performance in these applications. Other well servicing applications include pump pressure measurement on mud logging units at drilling locations, switching control of the liquid passing from tanks to the discharge hose on liquid additive trailers, and pressure measurement on mobile and stationary equipment control panels. Pressure measurement plays a key role on the control systems of cementing trucks, valve test benches, valve actuator panels, and chemical injection skids as well. In wellheads and Christmas trees, monitoring wellhead pressure requires the use of rugged and weather-resistant intrinsically safe or explosionproof pressure transmitters. If the pressure is not contained during drilling operations by the column of drilling fluid, casings, wellhead, and blowout preventer, a well blowout could occur. Downhole drilling tools use pressure transmitters to monitor hydraulic and pipeline oil pressure. This extreme environment can often require transmitters with extreme high pressure and temperature ranges. Pressure measurement is also important in mud flow lines. This is an 138



especially viscous application, so a transmitter in this application should be coupled with a flush diaphragm to avoid clogging.

disposal of saltwater and other caustic by-products of oil and gas production become more stringent, reliable low-pressure measurement has become even more critical. Vapor recovery

Intelligent or “smart” pigs are devices that are used to test and perform maintenance operations in oil and gas pipelines, as well as inspect for dangerous leaks which could be explosive and dangerous to the environment. Multiple pressure transmitters may be attached to the pig to monitor pipeline and hydraulic pressure, including differential pressure transmitters. In this application, a transmitter with low power consumption works best to ensure long life.

units are designed to comply with these EPA standards, provide the producer with additional profits that may be lost due to stock tank vapor emissions, and eliminate stock tank vapor emission into the atmosphere. Recovered vapors have a significantly higher BTU content than natural gas from the pipeline, therefore recovered vapors can be more valuable than methane alone. Vapory recovery units, along with salt-water disposal systems and storage tanks, require precise pressure measurement to

Core analysis is used to study samples of reservoir rocks which provide information on the condition of a well, including porosity, permeability, fluid saturation and grain density, which can provide insight on the well’s potential productivity. During core analysis, an oil sample may be forced at high pressure through a piece of rock core. It’s essential that a pressure transmitter used in this application provide high accuracy measurement up to 10,000 psi with Hastelloy or Monel construction to avoid corrosion of the diaphragm.

ensure optimal control and monitoring, and maximize recovered emissions and profit to the producer. Pressure transmitters used in vapor recovery control, salt water disposal control systems, tank vent monitoring systems, and liquid level monitoring in shallow tanks must offer low pressure ranges and be intrinsically safe. Depending on the type of application, hazardous location pressure transmitters must be of intrinsically safe, explosionproof or non-incendive design. A flush diaphragm connection

As EPA regulations to reduce the emissions produced by the


1 3

max. 105




Measurement Solutions



27 75

9,5 G1 /4

Backed by industry-leading warranties, NOSHOK’s broad offering of pressure, level, temperature and force measurement instrumentation, along with needle & manifold valves address applications including: • • • • •

Upstream Midstream Downstream Well servicing Offshore

NOSHOK Corporate Headquarters I 1010 West Bagley Road I Berea, Ohio 44017 I P: 440.243.0888 I F: 440.243.3472 I




can also be used to protect against plugging, which is ideal for applications involving measuring viscous fluids and for measuring pressure when fluid is pumped down the well. Intrinsically safe transmitters use less electricity than the level of power required to set off an explosion within the defined hazardous area. Intrinsically safe transmitters are also not capable of storing large amounts of energy, which could spark an explosion. Many oil applications require intrinsically safe sensors that can be submerged into storage tanks or boreholes to monitor the level of potentially flammable liquids, or in zones with potentially explosive atmospheres. Similar to intrinsically safe transmitters, non-incendive transmitters cannot generate enough thermal or electrical energy to ignite a volatile atmosphere under normal operating conditions – but unlike their intrinsically safe counterparts, they can create sufficient energy for ignition, which could be generated under fault conditions. Rather than preventing explosions, explosion-proof transmitters



are engineered to contain a blast. They are not necessarily designed to withstand an external explosion, but to contain an internal explosion without allowing flames or hot gases to escape from the transmitter housing, which might trigger an explosion in the surrounding environment. Explosion-proof transmitters are ideal for monitoring tubing and casing pressures in a wellhead. These sensors provide consistently accurate and stable output, stand up to extremely harsh environments, and endure the test of time. Hammer union transmitters are used in harsh, viscous applications where high shock and vibration is encountered, including acidizing, choke and kill manifold, fracturing and cementing, mud logging and mud pumps, oilfield and offshore, and well head measurement. In hazardous oil and gas environments, operators can’t afford to take a chance on faulty or inaccurate pressure measurement sensors. Choosing the right high-quality durable pressure transmitters can keep these systems running safely and smoothly, and prevent costly accidents. w

Wooldridge Boats Wooldridge Boats

Specializing in Custom Jet Boats

Wooldridge Boats

Wooldridge Boats

Wooldridge Boats

1303 South 96th Street Seattle, WA 98108 (206) 722-8998

1303 South 96th Street Seattle, WA 98108 (206) 722-8998 •


(800) 840-1680 | STEPHENSMARINE.COM

alert plus

Cheap oil: Innovation’s open invitation “Innovation is change that unlocks new value.” J. Notter A critical lesson that we have learned, and seem to re-learn, is the pivotal role that innovation plays in economic development. From changing axes of stone to steel to the advent of the digital age, we have seen time after time how innovation impacts economic development. The same holds true for the energy industry. The effects of hydraulic fracking, for instance, are still not yet fully appreciated as the strategic national energy reserves have exploded exponentially since that innovation. Strangely, while we recognize the indispensable role of innovation, we still live in a culture that is on the whole hesitant to innovate. For most, the old adage, “if it ain’t broke, don’t fix it” governs much of their daily life. However, when crises hit, like the $50 drop in crude oil these past few months, opportunities arise for creative and innovative people to showcase solutions that previously were not considered. At first these crises threaten the economic status quo, but then innovations come forward unlocking new value, resulting in a building of economic strength, wherein each plateau is higher than the previous. By understanding this cycle, it becomes even more evident why creating a culture of innovation is so important within business and industry. This

culture must not only accept change, but set both an active expectation for innovation and a model that can adopt those innovations through a “positively critical” atmosphere of study, adaptation, and implementation. There are certain organizations and departments within corporations that create that culture of innovation, but they often prove to be the exception to the rule. Let’s look briefly at the dramatic fall in crude oil prices and the subsequent fall in natural gas prices. Businesses can no longer coast along with the status quo of $100 bbl oil or $4 MMBTU natural gas. To remain competitive they must cut costs and reallocate resources. Regretfully, this often means layoffs because it is the fastest way to drop costs in a crisis. However, losing a pool of skilled workers that will only have to be built back up when the economy bounces can be much more costly than just numbers on a spreadsheet. Layoffs not only create hardship and hard feelings, they could mean permanent loss of skilled, regional labor that then takes time to put back together again. This then underlines the importance of actual innovation within the process, allowing for a much further reaching cost savings to be implemented. These innovations can express themselves in many forms, but I’d like to highlight one that addresses

A stable economic system struck by crisis then resolves itself through innovation, resulting in a new, higher level. 142


the cost of fugitive emissions and safety. Fugitive emissions are the unplanned loss of methane from pipes, valves, flanges, and other types of equipment. Fugitive emissions from reciprocating compressors, compressor stations (transmission, storage, and gathering), and wells, are the largest combined category of emissions, accounting for over 30 percent of losses. Leak detection and repair (LDAR) is the common term for the process of locating and repairing these fugitive leaks. There are a variety of techniques and types of equipment that can be used to locate and quantify these fugitive emissions. Research cited by both the State of Colorado and EPA indicates that more frequent inspections result in greater reductions, summarized as approximately: • Annual inspection = 40 percent reduction • Quarterly inspection = 60 percent reduction • Monthly inspection = 80 percent reduction1 Estimates vary on how much natural gas is lost within the supply chain. The U.S. produces nearly 31 TCF of natural gas, and fugitive emissions are estimated from anywhere of 1.3 percent to three percent2; part of the problem is that many fugitive emissions are not even measured to provide a hard number. The result is that anywhere from 402 BCF to 930 BCF is being lost as fugitive emissions, which at the present Henry Hub low price of $2.63 MMBTU, is an astronomical annual loss of $1-$2.5 billion. This cost is multiplied

alert plus

even further if the cost of carbon due to greenhouse gases is taken into consideration. It should be obvious that this is a significant sector that the industry can address to improve the bottom line. Putting the gas downstream instead of into the jet stream is good for the company, good for the environment and good for future generations. As noted above, more frequent inspections dramatically reduce losses. However, what gets lost in the debate of greenhouse gases (GHG), fracking, and every other industry argument is that along with methane emissions are conventional pollutants, volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). The levels of these pollutants can quickly cause serious medical conditions for the worker and the public both in the near and long term. Imagine the physical toll that 402-930 BCF of fugitive gases mixed with pollutants can have upon multiple thousands of men and women working hard in the fields. Good safety procedures are put into place to protect workers, but just how many stumble across a leak or work in unknown conditions because the job must be done? And the gas detectors that many carry on their person only work to -8OF (-20OC), whereas much of the natural gas produced in North America is in regions where -8OF is considered a balmy day. At lower temperatures, the devices become sluggish or don’t work at all. By the time the monitor emits a warning, a worker may have been working in dangerous conditions anywhere from five to 15 minutes – which at some gas levels can be fatal. Which brings us back to innovation. The problem? Fugitive emissions at a level that threaten not only the financial bottom line of companies and their subsequent employees, but the health and safety of our workforce in regions

that are consistently below -8OF. The innovation? The Aegis 400, a singlesystem, low-power detection platform that works with gas and non-gas sensors capable of 24/7 real-time coverage at -40OF that can automatically shut down operations if conditions deteriorate below a level defined by the client. It not only monitors in real-time with nearly any sensor on the market, it permits workers to “know before they go”, increasing their safety and providing a means to remotely shut down operations if circumstances warrant. The ability to automatically shut down operations at levels defined by the client can prevent significant losses (i.e. profit), avoid fines, and protect employees.

the corporate culture chooses to stay

As is the case for most innovations, “necessity is the mother of invention”. The Aegis 400 was not created in a university laboratory, but in the field by people who every day asked themselves what was on the other side of the door of a confined space. And that’s both the beauty and beast of innovations, working men and women who discover real solutions to real problems in the field, but must then work upwards within a culture hesitant to accept and embrace change. Normally,

to innovation, which leads to economic

with what has proven to work, but crises challenge the status quo and open invitations to possible innovations. While the drop in the price of oil has created much hardship, it is equally an occasion for the industry to cast about looking for means to lower costs and increase safety and stewardship. Like the Aegis 400’s beginnings, there are more than likely many other working men and women who have ideas that could make the workplace safer and more productive. In the end, Mr. Notter’s belief that “innovation is change that unlocks new value” bears out to be true and a valuable lesson for all of us. Crisis leads development to a new and higher level with new challenges. 1. Source: Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries; March 2014. 2. Source: American Gas Association, British Columbia Ministry of the Environment and the U.S. National Oceanic and Atmospheric Administration. w BAKKEN OIL REPORT – SPRING 2015



Erecting wind turbines.

Quality service providers should thrive, despite low oil prices Manitowoc 18000 executing a millionpound lift in 2013.

With over 25 years of service excellence, NCSG provides mobile crane rental and heavy-haul services throughout western North America. In the United States, NCSG Crane & Heavy Haul Services, Inc. (formerly Mullen Crane & Transport and H&H Crane) is focused on providing quality heavy lift, crane rental, and hauling services to the oil and gas industry (including upstream oilfield services, midstream, and downstream refining and petrochemical facilities), the power industry (including power generation and significant experience in wind turbine transportation/erection), and the mining industry. NCSG’s U.S. division currently has branches in Billings, Montana; Sidney, Montana; Great Falls, Montana; Soda Springs, Idaho; and Odessa, Texas. Through these locations, NCSG services customers across the Montana, Idaho, North Dakota, Utah, Washington, Oregon, Wyoming, Colorado, Kansas, New Mexico, and West Texas geographies. With a dedicated branch fleet of 11 cranes and access to NCSG’s corporate fleet, the Sidney branch has grown rapidly the past several years, primarily by providing lifting and hauling service to the oilfield industry, including rig moves, coil tubing, wireline support, and the construction or maintenance of compressors, pump stations, and natural gas processing facilities. As companies drill deeper for hydrocarbons and/or the horizontal segments of the well become longer, the exploration rigs and support equipment are getting bigger and heavier; which means that being able to quickly move these drilling rigs on a routine basis means opportunity for exploration and production (E&P) companies. NCSG provides all terrain and crawler crane services to safely construct/de-construct these units. In addition, as technology improves, the coil-tubing spools and the equipment to install the tubing is getting bigger; these spools, typically in



ncsg crane

the 92,000- to 139,000-pound range, provide greater access to oil and gas, but are challenging to work with due to their bulk and weight. NCSG can provide the trailers and appropriate cranes to allow this production.

Depending on our customer partner’s needs, the Sidney branch

Oil and gas exploration projects aren’t the only opportunities occurring in the eastern Montana/western North Dakota market. Significant power needs have spurred the upkeep/ new development of both generation facilities (natural gas and coal) and several wind-farm projects; also, with an abundance of relatively low-cost natural gas and other hydrocarbons, several world-class fertilizer, petrochemical, and refining projects have been muted. NCSG has provided lift and/or logistical support through engineering, labor/equipment, and/or specialized services to many of the largest projects in North America.

hydraulic platform trailers. NCSG prides itself as being a leader;

Whether in Sidney or elsewhere, NCSG strives to develop and maintain long-term partnerships through strong communication, state-of-the-art equipment, and a team of professionals willing to listen and work alongside the customer. Core to all our endeavors is the commitment to the protection of our employees, contractors, customers, and the general public with respect to health, safety and environment. “Safety first!” is our number-one core value and is non-negotiable for NCSG employees. Being responsible for your own safety and the safety of your co-workers is a required mindset by management and each individual employee.

and ensures that the work is completed in a safe, timely,

can access NCSG’s fleet of over 285 mobile cranes (ranging in size from eight-ton to 1,350-ton), as well as our specialized heavy-haul fleet of over 90 tractors, 300 trailers, and 235 lines of we were the first company to import the world’s largest mobile all-terrain crane to North America, the Liebherr model LTM 11200-9.1, a mobile hydraulic all-terrain crane with an amazing 1,350-ton lift capacity, and up to 558 feet of vertical reach. For any specialized project, the Sidney branch can call on support from NCSG’s in-house staff of professional engineers, our logistics consultants, and/or staff from strategic relationships, such as that with Fagioli. The NCSG team assesses each job, provides equipment and personnel recommendations, and professional manner. Providing quality heavy-lift crane rental, and hauling services along with bare rental, on-site transportation and logistics coordination, NCSG aims to be a premier supplier and the crane and heavy-haul services provider of choice from Western Canada to the Gulf Coast. The NCSG Sidney branch is a recognized lift and heavy-haul leader for the Montana and North Dakota developments and has access to the many resources of its corporate parent. How can they help you with your needs? w

All-terrain cranes on heavy industrial construction. Heavy-haul transportation.



sterling hose, reel & supply, llc

A water transfer company is only as good as their last water transfer job By D. Gordon Buescher/Sterling Hose, Reel & Supply, LLC. There has never been a faster moving trend in the oil and gas industry than the move to lay-flat hose for high-volume water transfers. Gone are the days of leaking aluminum pipe and laborintensive plastic pipes. This revolution is saving water, reducing labor costs and leaving a smaller environmental footprint compared to other methods. Progress is always met with many challenges, and these challenges have certainly come from every direction. Using lay-flat hose can be a simple task if the right equipment is available. Companies not only need to purchase high-quality hose, but their equipment should be capable of handling and protecting this valuable investment. Hose handling systems will vary greatly between operators and environments. Removable reel systems offer great economic advantages over fixed-reel systems and can handle 500 feet to over 2,640 feet of hose per reel. Sterling offers some of the most economical trailer-mounted systems available with removable reels. When using the removable reel systems,

transportation costs and equipment costs are greatly reduced. Trucks can haul 2.25 miles of Sterling reels and 10-inch Sterling Secure Flow TPU Hose. This greatly reduces the number of trucks on the road and minimizes your company’s liability exposure. Sterling reel options range from reels that are direct drive and hold one hose, to larger reels that are friction drive and house three to four hoses. These deployment and retrieval systems can be adapted to any terrain, environment, or special machinery. Once you have chosen the proper handling systems for your environment, then you will need to choose the proper hose as well. All lay-flat hose is not created equally. There are many companies that had never manufactured any hose larger than six inches until just a few months ago. This lack of experience has led to many significant failures in the field, and these failures have large environmental impacts. Buyers should research and understand fully who they are buying hose from and what experience the company’s lay-flat hose supplier has in manufacturing lay-flat hose.

Some incidents of lay-flat hose failure will never be made public for several reasons. The service companies that bought inferior products do not wish to tell the world about their mistakes, and the companies that sold it to them are surely in the same boat. Anyone operating in the water transfer industry has seen the failures and the rapid deterioration of these inferior hoses. There is much more to a hose than just passing an initial burst-pressure test. By testing many hoses from different companies, you can see the wide variance in qualities. Just because a hose says “extruded through the weave”, you should not consider it better or of high quality. There are many extrudedthrough-the-weave hoses that are hitting the market that have adhesion rates that are 30 percent of an acceptable value. This poor adhesion rate is due to the low-quality materials used in manufacturing and the lack of experience in constructing or manufacturing largediameter lay-flat hoses. When truly testing a hose, there should be a series of tests conducted and these include abrasion, UV, and real-world pressure testing. After testing several of the hoses from new and inexperienced manufacturers, there were many that failed miserably and their hoses could be peeled like bananas. The rubber or TPU could be pulled away from the woven jacket without significant effort.

Separation and rupture of Chinese 3-ply TPU hose. 146


sterling hose, reel & supply, llc

After testing several of the hoses from new and inexperienced manufacturers, there were many that failed miserably and their hoses could be peeled like bananas. Another important component that helps to maintain the integrity of a lay-flat hose system is the couplers and fittings. Pressed-on fittings are the cheapest route, and a buyer can save up to $0.50 per foot. Many of the hoses are failing at the coupler in less than one year when using pressed-on fittings. The lay-flat hose is cut every time the hose is moved or pressured up with this type of fitting. It is not a matter of if, but when the hose will leak or fail at these points. The best solution is a segmented binding on the hose coupling. This allows the hose to bend and move around smooth edges, and also allows the hose to reach maximum working pressure without inflating around a sharp edge. There are many styles of these couplings and they can easily be installed in the field, if necessary. How does a manufacturer make a cheap hose? Typically, if a company outsources to China it is for products that are laborintensive or toxic to manufacture. The process for manufacturing extrudedthrough-the-weave hose is neither toxic, nor is it labor intensive. This leaves only one alternative for making a cheaper lay-flat hose product, and that is to use cheaper materials. The cheaper materials will be lower-grade rubbers or TPU, UV inhibitors will be eliminated, and inferior yarns will be used in the weave. This cheaper product will be inconsistent in quality and there will be visible imperfections at times. The true question becomes how long it will last, and we have already seen these hoses lasting less than six months to 12 months in the field before there are significant failures. Everyone wants a piece of security, but what is a warranty worth? We have talked with several companies that have real warranty issues, but the one-year, five148


year, or 10-year warranty that they were sold with their hose seems to be gone already. Hoses that are manufactured by companies with experience do not show signs of aging for many years, although the pictures shown here of cracked hoses are less than one year old. Beware of any company offering no warranty, and also consider the reputation of the company offering a warranty over one year into the oilfield. A very high percentage of hoses will fail within the first year if they are ever going to fail due to a manufacturer’s defect. When searching for the best deal, it is important to remember that there are no bargains when buying hose. Right now, 10-inch TPU is priced between $14 and $22 per foot with couplers for the best hose in the world that is manufactured by the most experienced manufacturers. A buyer can also find 10-inch TPU from companies that did not know how much would fit in a container in 2012 for $8 to $18 per foot with couplings. Now, it is time to consider the mathematics behind the purchase of these hoses. A hose from the leading established manufacturers is costing an average of $18 per foot, and the hoses from inexperienced manufacturers cost $12 per foot. That means that when looking at only the initial purchase price that the higher-quality European hoses are 38 percent higher, but when you purchase the cheaper hose, it is at least 44 percent higher when you have to purchase hose twice. When buying a hose the buyer must also be aware of the environmental impact. What will a leak or failure cost? Unfortunately there are very few failures with hose that are going to be less than five gallons, so the failures

will be reportable in most states. The environmental cost and damage can be significant when any failure occurs, and companies should minimize their exposure to these risks as much as possible. There should be a constant inspection policy in place with any hose that you purchase. If part of the woven jacket is ever visible, then there is a serious chance of failure. These sections should be thoroughly inspected and the outside covering should be repaired, if possible. It is always a good idea to keep these areas marked on a hose for future inspections. Watch for any blemishes, bubbles, or cracks, as these can all lead to significant failures if they intensify. The final point should be focusing on creating the most effective and efficient water-transfer system. Lay-flat hose will serve very little purpose and provide very little benefit if it is not used to its full potential. There are few companies that can justify purchasing an new system in its entirety, especially when there are still components left with life in them from previous piping systems. Progress should be the key consideration going forward and there should be steps or phases to optimize the use of lay-flat hose in your water-transfer system. There are several critical components starting with pumps that have designed flow rates and pressure ratings to complement the capabilities of your hose. Lay-flat hose can be one of the best and most profitable investments a company can make. Buyers have many choices for hose, fittings, and handling equipment. When considering the purchase of lay-flat hose there are no bargains, only cheap imitations. w

Actively hiring company drivers and diesel mechanics. For more information and applications, visit 12125 ND 5 Crosby, ND 58730

(T) 701-965-6031 (F) 701-965-6033 24 hour dispatch: 701-965-6301

BRawler industries

When you need it now, Brawler delivers

Brawler liners provide trouble-free, long-term liquid impoundments. There are few industries that have seen more changes in the last 40 years than oil and gas production. The advent of horizontal drilling and hydraulic fracturing has opened previously unimaginable extraction opportunities. It has also required on-going innovation on the part of companies serving the industry. For one company, however, innovation has been at the heart of everything they have done since its founding in 1978, and remains so today. “We put two things at the top of our priority list: quality and customer service,” says Kent Metzger, executive vice president of Brawler Industries, LLC. “Creating custom solutions for our clients and products that are built to meet even the most rigorous demands, ensures we continually achieve those goals.” Brawler manufactures SuperGeo™ and SuperScrim™ reinforced and nonreinforced polyethylene tank and rig site liners, covers, tarps, geotextile pads, 150


Brawler Above-Ground Tank Liners are perfect for frack fluids and flow-back water.

and secondary containment materials. Thousands of the company’s products are currently in use throughout the Bakken.

company’s longevity has given it a depth of understanding about just how valuable that commodity is.

“Our liners and pads have been proven, time and time again, in the rigorous conditions of the Bakken,” Metzger says. “Our liner design reduces the potential of leaks while being extremely easy to install.”

“’Time is money’ isn’t just a phrase in the Bakken, it’s a reality,” says Jennifer Simonsen, general manager at Brawler. “When service companies need something, they need it right now. Waiting for a week can cost millions in lost production and potential penalties.”

Metzger notes the company can create single-piece components of up to 10,000 pounds at its secure Miles City, Montana fabrication and distribution facility. Doing so requires the use of a specialized heat-welding process, combined with a custom stepped-panel design. The result is stronger, lighter-weight liners that can be utilized in both concrete and steel tank systems and do not require seaming to be completed at the installation site. On the clock Time, in fact, is a common theme when discussing Brawler’s capabilities. The

Simonsen says calls from companies facing situations requiring immediate action are common. It is then that the company’s capabilities – and location – become even more invaluable. “Our company is built around the principle of vertical integration,” Simonsen says. “All of our base materials are manufactured in-house in our Houston facility – essentially the petrochemical center of the world. That’s huge in terms of our ability to meet customer turnaround times. If Miles City needs a certain thickness of liner material, for

brawler industries

example, they don’t have to try to source the materials from other manufacturers. There is no middleman: one call and it’s manufactured and shipped.” This focus on internal sourcing has virtually eliminated lag time when it comes to the first stage of component production. Efficiencies are also found in Brawler’s decision to maintain a constant supply of their most popular products in its Miles City location, including prefabricated, inspected and wrapped geotextiles, rig pad liners and tank liners in standard sizes. They also stock the most commonly used materials, including 40 and 60 mil HDPE geomembrane rolls, to reduce lead times as much as possible. Then there is the geographic advantage that their Miles City facility provides. “The fact that it is situated right on the western edge of the Bakken provides a significant advantage for our customers,” Simonsen says. “Our clients don’t have to stock and manage a huge inventory because they have access to the ones they need a couple of hundred miles away. They know they can call us and we’ll get them what they need, and we will get it to them quickly because we’ve repeatedly proven we will.” That “we will” attitude is clear from the moment you drive by the Montana-based production plant. Rolling in and out of

the yard is a fleet of Brawler semis ready to transport the company’s products. “Brawler determined years ago we needed to eliminate delays wherever possible when it came to getting products to our customers,” Simonsen notes. “That meant looking at our entire supply chain process, from start to finish, and identifying potential concerns. One such concern was having to depend on a third party for delivery, which could impact our rapid distribution model. Operating our own fleet solves that concern. There have been some instances when we’ve gotten an order, dispatched our semi with the liners to a site, and our customer has begun installing it all in less than four hours. Most products can be delivered without delay within 24 hours of the order being received – and it’s often at a savings to our customers.”

forward, there will undoubtedly be many more changes to come. That’s not something we back away from; we’ll always continue to look for additional opportunities to improve our ability to fulfill our mission of high-quality products and exceptional customer service.” The team at Brawler Industries has been fabricating, delivering and supplying containment membranes for the drilling and mining industries since 1978. In addition to its Miles City, Montana location, it also has manufacturing facilities in Midland, Pleasanton and Houston, Texas. Brawler Industries also serves clients in the agriculture, construction and athletic industries. w

Looking forward With its strategic location, proprietary manufacturing and fabrication model, as well as delivery fleet, Brawler Industries has established itself as a provider of quality, custom solutions that meet the needs of their customers. But they’re not about to stop there. “We’ve been serving the oil and gas production industry nearly four decades and have seen many changes in it over that time,” Simonsen notes. “Looking

Large factory-fabricated, one-piece liners conveniently packaged for shipping and deployment.

Brawler Rig Pad Liners create a large, stable working surface.

Brawler has a full fleet of trucks in Miles City for fast delivery to the Bakken. BAKKEN OIL REPORT – SPRING 2015


reynolds french co.

Reynolds French: Their history and future

Above: Chockfast epxoy grout used under skid. Left: Tulsa Pipe Supports used with or without TPS clamps

have included: larger locking devices, innovative bolting, fabricating section replacements, the most modern crack repair techniques, reinforcements without welding, and a repair philosophy to do everything feasible to reclaim or exceed the strength of the original casting. Machining Reynolds French’s Machine Group perpetuates evolution with innovative Recognized as the world leader in the repair of cracked or damaged castings, Reynolds French & Company has challenged the conventional since 1946 by providing innovative services and products to their industry. Their neverdying eagerness to serve has secured them a tradition rich in experience. 152


Casting repairs The evolution process of Reynolds French includes maintaining a momentum that

machining equipment for repairs in the shop or field. State-of-the-art equipment development increases their capabilities, speeds repairs and lowers costs to

has enabled them to consistently pioneer

customers. Common machine services

newer methods used in high-stress

of Reynolds French include use of a

areas, or on severely damaged castings.

wide variety of equipment for boring,

These certifiably successful techniques

milling, flange facing, crankshaft journal


turning and polishing, as well as wire line alignment.

can be machined in the field by Reynolds

on all types of buckets, front-end loaders,


track holds, and more. If it needs to be


Certain types of equipment require on-

With total fabrication capabilities and complete machining service, the Reynolds French Shop can do the same things as their field groups, sometimes more. Reynolds French has a long history of service in the energy industry with successful repairs of thousands of pieces of equipment, both on location and in their Tulsa-based facility. They have performed repairs in virtually every industry involving large equipment spanning the United States from coastto-coast and have also executed repairs in Canada and overseas. Reynolds French & Company is a recognized world leader in casting repair services, field machining, alignment and consulting for equipment problems.

bored and repaired, Reynolds French is on it.

site boring made possible with Reynolds French’s introduction of a portable “Bucket

Proud of their honesty, integrity and value

Bar”. This specialized piece of equipment

offered, Reynolds French & Company

permits coverage of a wide range of

believes they provide the best service in

boring requirements and has expanded

the industry. They are extremely proud

field service to include boring and repairs

of their workforce that combines just a

Recognized Leader

Equipment. Capabilities. Services. Repair capabilities are provided in the field and in the Tulsa-based Reynolds French facility. Repairs cost less when performed in the shop, but they necessitate equipment removal and shipment from the customer. Reynolds French has expanded and grown to their current 26,000-squarefoot office facility, located on their six-acre industrial tract. Committed to equipment improvements and upgrades, the company’s overall capabilities have also expanded. Currently, Reynolds French’s equipment arsenal includes G&L and Sellers large-capacity horizontal boring mills providing complete engine machining plus other specialized requirements. Flange Facers extend the company’s field services to include on-site flange facing for any type of flange: flat, raised face and ring groove. Whatever the flange type, it

Innovator in State-of-the-Art Pipe Supports & Clamps Inventor of Flywheel Lock Leaders in Field Machine Work Pioneers in Casting Rapair PRODUCTS: n Pipe Supports & Clamps n Epoxy Grout n Anchor Bolts n Flywheel Locks n Temperature & Vibration Sensors n Spark Plugs

SERVICES: n Field Machining n Casting Repair n Crankshaft Machining n Machine Shop n Broken Bolt Removal n Frame Reinforcement n Alignment Services

918-252-7545 Tulsa, OK




Filling voids in damaged slide. winning combination of talented youth and valued experience. Quality equipment. Unequaled products. Unparalleled customer service. These are the elements that have been an integral part of the Reynolds French history and will continue to be the cornerstone of their future. This is the Reynolds French promise to their customers now and then. Innovative products, outstanding reputation Reynolds French has an ongoing tradition of designing, developing and offering leading-edge products. And the momentum continues. They are constantly raising the bar to new standards with innovative new products designed to meet or exceed customer demand. Since 1980, Reynolds French & Company has distributed numerous outstanding foundation products, including ITW/ Philadelphia Resins CHOCKFAST. They increased their product base in the 1990’s with the addition of adjustable chocking system products, complete anchor bolt systems, cementitious grouting products and a complete line of epoxy coatings and repair compounds. CWC Epoxy Grout was added to the stock product lineup in 1998, and ESCOWELD Epoxy Grout in 2005. Anchor bolt systems and various designs and products for equipment chocking are sold by Reynolds French. 154


Cracked oil pan in mainframe prior to successful repair. The company is the manufacturer of TULSA Pipe Supports, the company’s uniquely-designed and engineered line of cast epoxy pipe supports. This product supports pipe without corrosion, fretting or the vibration of traditional metal supports. Reynolds French also eagerly responded to a variety of customers’ needs by engineering, manufacturing, and delivering a variety of TPS pipe clamps and base plates. After receiving requests from customers in 2006, Reynolds French engineered their Patented Variable Position Flywheel Lock (U.S. Patent No. 8,869,650), which is more reliable than other products on today’s market. The Flywheel Lock allows setting and “locking” the flywheel or crankshaft in any chosen position within the 360-degree turning radius. This product was engineered to ensure the safety of the working men and equipment that are inside an engine while being serviced or repaired. Recent additions to the Reynolds French product lineup include the Bosspac Bluebox™ Vibration Sensor. The 3D vibration sensor was developed to give true vibration feedback in every plane of motion. The sensor, using DSP (Digital Signal Processor), filters and conditions acceleration and velocity signals for use with a separate RTU. Data is evaluated to send out shutdown signals as specified by its user-programmable settings, controlled

with an easy-to-use four-button layout. Another new addition is the Bosspac WASP™ Early Valve Leak Notification product. The WASP (wireless acceleration sensor puck) is a wireless velocity, acceleration and temperature sensory device used in permanent and mobile condition monitoring systems. Reynolds French is a master distributor for Gateway Industrial Spark Plugs. This brand uses the latest technology and material design in industrial spark plugs, at very competitive prices. Reynolds French is committed in their pursuit to provide product improvements and improve future services by continually analyzing the way in which they conduct daily operations. This perpetual revitalization process enables Reynolds French to provide innovative new products and services to their customers. Visit the Reynolds French website at for a detailed understanding of who they are, the impact they’ve had on the industry and how they continue to respond to their customers’ needs with innovative new products and services. Reynolds French has always been customer oriented. As such, you are invited to visit them at major machinery shows and see why the company has earned their prestigious reputation and how their evolution process will continue well into the future. w

SF2ÂŽ Stabilization

Midwest’s patented stabilization for marginal soils Our products are proven to create stable bases using native soils, strong enough for E&P traffic on roads and pads. The resulting base will not degrade during rain or freeze-thaw. Installation is fast, can be performed year round, and the surfaces can be used immediately. We have seen time and time again that effective soil stabilization solutions can help your company avoid expensive and time-consuming maintenance efforts later on.

Successful in the Bakken Region of North Dakota and Alaska’s North Slope


northern plains rail services

Railroading is our business: Northern Plains Rail Services Perhaps it’s the challenge and satisfaction of moving a modern

“We began in 1997 with a group of people with ability, striving to

freight train from origin to destination safely, on time, and

meet customer needs,” remarked Haug. “Starting with over 350

with no damage to shipments – no matter what the weather

miles of track and three locomotives, it would take time to win

or conditions. Or maybe it’s the unique experience of working

the confidence of both customers and the Canadian Pacific. I am

with and repairing large industrial equipment, such as diesel

proud to say that we stand today having earned the trust and

locomotives and freight cars. There is also the camaraderie that

confidence of both, something we never take for granted.”

generations of railroaders have enjoyed as they go about their business – running trains, maintaining track and equipment, and switching freight cars at customer sidings. Whatever their personal reasons are to work and remain in the rail industry – good railroaders are proud of what they do, and are dedicated to safely providing safe and quality service – round the clock, year round. There is an old adage that suggests once railroading gets into your blood, it’s pretty hard to shake it. This saying certainly describes entrepreneurs like Gregg Haug, chairman of Northern Plains Rail Systems – a group of companies that not only operates a short-line railroad network in Minnesota and North Dakota, but also provides customers across the mid-west and Canada with third-party rail services, such as track construction and maintenance, car repair and inspection services, locomotive maintenance, and industrial switching. Operating as Northern

Today, Haug’s Northern Plains Railroad moves around 17,000 carloads per year, and has purchased three additional line segments connecting to the CP network that it continues to operate. While the NPR itself has successfully grown its business by more than 20 percent since it began, Haug and his management group decided that success would lie in continuing to diversify the business. “We began by branching out into the industrial switching business at the Twin Ports of Duluth/Superior,” said Chalich. “Using our railroading expertise and the same commitment to safety and service that we bring everyday to the customers on the Northern Plains Railroad, we now are entrusted with handling the daily rail operations for Calumet at their refinery in Superior, and since then have expanded industrial switching services to five other locations in Minnesota and North Dakota.”

Plains Rail Services (NPRS), the company has further built

Being entrusted to switch rail cars within a customer facility

business alliances allowing it to incorporate logistics planning,

is a responsibility that NPRS does not take lightly. Companies

consulting, and rail-industry technical training into its product

require experienced and qualified personnel to safely operate

offering. NPRS has truly become a one-stop shop for those

and maintain rail equipment inside plant sites. Intensive

requiring rail expertise and services.

switching activity and relationships with the Class 1 railways

“Our management team and employees are an interesting mix of people, anchored by those who love this business,” says Jesse J. Chalich, president, Northern Plains. “I think this enthusiasm for

can be operationally complex, and companies like NPRS provide value to shippers by completely managing the rail operations component of their businesses.

railroading spills over into our delivery of service for customers –

“Our objective is to work, act, and perform to Class 1 standards,”

and as a result we have been successful in growing our business.”

says Dan Watson, superintendent of industrial switching

Back in 1996, Gregg Haug held a senior management position within the grain marketing department at Canadian Pacific in Minneapolis. At the time, CP was in the process of shedding lighter density lines to smaller, perhaps more flexible operators who could operate these lines more efficiently with a local

for NPRS. “Safety is, and will always be, our first priority. We push ourselves, measure ourselves, and strive for continuous improvement. As a railroader, there is no greater feeling than to work with customers who see the pursuit of safety excellence the same way we do.”

touch and with enterprising employees. When an opportunity

Contracted track construction, maintenance, and inspection

presented itself to develop and operate an independent short-

services are now a core line of services provided by NPRS.

line railroad himself he jumped at the chance.

Armed with technical expertise and a solid “prairie work ethic”,



northern plains rail services

NPRS’ contract track services division is operated by experienced management and employees who began their careers at the Northern Plains Railroad, and during downtimes, looked externally for opportunities to supplement the company’s income stream.

maintenance, and inspection throughout the Bakken region.” In a similar fashion, NPRS began offering freight car repair services about five years ago. Now, the company operates two car repair shops and cleaning facilities at Fordville, North Dakota, and at Erskine, Minnesota. Rail cars from private owners and

“We began simply by responding to requests of our own grain elevators and some of the neighboring elevators for help repairing and building track located within their facilities,” remarked Chalich.

from other railways are sent to these facilities for everything from minor repairs to complete overhauls. Last year, NPRS received tank car repair certification for these shops and for a mobile repair unit, which is now safely servicing customer fleets in the

Over the last several years, with the growth of the energy industry in North Dakota, some of the smaller jobs could not attract the attention of the larger rail contractors. NPRS has been quick to fill this niche and become a trusted provider of trackrelated services for projects small and large. Jerry Hegstrom, NPRS’s manager of track construction and maintenance services

Bakken. “We went out and made an investment in solid leadership, and in training and quality control,” says Chalich. “We brought in Phil Partridge from Canadian Pacific, a former service area manager of mechanical who learned his trade on the shop floor

says, “We were proud to be part of Enbridge’s solution in 2012

in Winnipeg. Phil has been an excellent addition to our team,

when we were brought in to help complete the loop track at

helping us build the credibility and expertise required to be

their rail terminal at Berthold, North Dakota. This was our first

successful in the car repair business.” NPRS has expansion plans

large project, and our team worked closely with Enbridge and

for this service that include additional services in western North

the other contractors on site to meet their expectations. Since

Dakota, Wisconsin, southern Manitoba, and the Edmonton-

then we have been busy performing additional construction,

Camrose region of Alberta.

With decades of experience

Track Design & Engineering and New Track Construction, Including Maintenance and Emergency Repairs

Complete Sales, Leasing, and Maintenance of Locomotives

Turn-key Industrial Switching Services including Safety Training & Consulting

Total Railcar Repair Services, including Tank Car Service Equipment/Repair

Proudly Serving the Midwest US & Canada BAKKEN OIL REPORT – SPRING 2015



Rounding out the equipment repair side of the business is NPRS’

customer and find out where we can add value in the future.”

locomotive service group led by Brent Bader. While Bader is

Clearly, this is where the “one-stop shop” approach for all things

responsible for the fleet of second-generation diesel locomotives

railroad is paying dividends.

used to power trains on the Northern Plains Railroad, he has been active in supporting customer needs at nearby elevators and plant sites. “We currently have 17 locomotives out on lease or under maintenance contracts in our service region,” says Bader. “We will buy, sell, lease, or maintain locomotives for switching services, and are active as consultants to those who are looking to do the same.”

Integrity, honesty, and professionalism are keys to any successful business -- including railroading. “Although this is a major industry in North America, the industry tends to be very small,” says Shawn I. Smith, vice president of business and operations development for NPRS. Smith, based in the growing Edmonton region of central Alberta, has worked around the railway industry most of his life. “Word spreads fast if you are good or bad. To be successful, you have to be

In 2014 for example, NPRS worked closely as an agent for a large

consistently safe, work at providing good service, and look after

refinery in Canada to source, supervise the re-qualification, and

your people and customers. It’s important to do what you say

place suitable locomotives into service after the company had

you are going to do, and to back up your commitments. We’re

problems during the previous winter with motive power that

certainly not perfect, however in my association with NPRS over

was not suitable for the conditions and service requirements.

the last few years this is what I see us genuinely working towards

Flexibility and a willingness to meet each client’s individual

every day, and it makes me proud to be part of it.”

needs is part of NPRS’ business philosophy. “We might not

Adds Haug, “Railroading is our business and our passion. When

always be awarded the contract, or always make the sale,”

you do business with us, you will find a ‘can do’ attitude, and a

remarked Haug, “however, we are always willing to listen to a

commitment to safety and partnership, everyday.” w





SERVING THE OIL/GAS AND INDUSTRIAL SECTORS • Earthwork – Mass grading, landfill construction, contaminated soil cleanup, structural excavation, rail subgrade construction, containment liner/berm construction, hydraulic dredging

• Utilities – Sewer, water, HDPE pipe fusing, commercial diving • Demolition – Total, interior, explosive • Foundations – Drilled piers,driven piles, retention systems, soil solidification

Bismarck, ND • Duluth, MN • Minneapolis, MN • Milwaukee, WI


Criteria to consider when selecting a water-cut monitor By AMETEK Drexelbrook, represented by LaTech Equipment

Measuring the percentage of water in oil (water cut) is required for both upstream and downstream oil production. There are a number of technologies that can be used, but this article will focus on those most commonly used in the upstream market, and will include the advantages and disadvantages of each. Technologies There are four basic technologies used to measure the percentage of water in oil: capacitance, microwave, spectroscopy, and density. All four rely on the electrical and/or mechanical characteristics of the fluid. Because of the differences in each methodology, users should have a basic understanding of the strengths and weaknesses of each to select the instrument which best meets the needs of the application. For this article, we are focusing on the three most commonly used in the upstream area. Microwave This technology relies on the different electrical properties of the oil/water mixture to determine the water cut measurement. An oscillator transmits a microwave signal at a precise frequency that travels through the fluid via an insertion probe. As the percentage of oil in water rises, the microwave signal changes in amplitude and frequency. That change in signal is measured electronically, and the relationship between microwave signal and water cut is determined. This technology is advantageous because it is able to measure the full range of water cut with solid accuracy in both the high and low ranges. It is also more robust in handling process factors that could negatively affect other technologies. With that being said, the initial cost is several times the price of the other technologies and microwave can be sensitive to salinity changes in the wet oil.

Density Density measurement is the only methodology that uses a mechanical solution to measure water cut. Usually a Coriolis flowmeter performs the measurement. Fluid enters flow tubes that are mechanically driven to vibrate at a certain frequency. As the fluid’s density changes, the frequency at which the tubes oscillate also changes. The water cut can be determined from those changes. Density measurement provides the ability to measure the full range of water cut; it’s also cost effective and can provide flow rate and temperature. However, as process variables start to change, including the introduction of gas and salinity into the process, there is an immediate effect on the water cut measurement significantly impacting the accuracy of the device. Using density for water cut is typically confined to light oils due to the limited difference in density between water and heavy oil, and it encounters additional uncertainties when applied to water-flooded oil recovery processes. Capacitance Capacitance technology has been used successfully to measure water cut for more than 40 years. There is a significant difference in dielectric constants between oil (k=2.3) and water (k=-80). This technology uses a cylindrical capacitor formed by the sensor rod and wall of the pipe as illustrated in Figure 1. It is a simple and inexpensive way to achieve a water cut and requires little to no maintenance being immune to paraffin build up. It is insensitive to water conductivity, and offers one of the highest accuracies in the low water cut ranges, where accuracy is most critical. It should be noted that there are several types of capacitive systems available and some offer more advantages than others. For the insertion type as shown in Figure 2, there

Figure 1 The system’s electronics transmits a radio frequency voltage to the sensing element that measures changes in capacitance. As the amount of water in the flowing oil increases, the net dielectric of the fluid increases. From the measured capacitance, the percentage of oil in water can be calculated based on a predictable relationship in the properties of the materials (figure 2). Further, while water’s dielectric varies little with temperature, system electronics can compensate for temperature-dependent changes in the oil-phase dielectric constant.




Figure 2. The probe of an insertion-style capacitive watercut analyzer forms a concentric capacitor with the surrounding pipe, allowing it to calculate the average composition of the entire stream.

is no spool piece required, which eliminates the need for routine maintenance to re-line the spool piece. It also offers unrivaled high temperature and pressure capabilities (up to 450F and 1,500 PSI), and easy calibration. By using an insertion probe, the device allows the sensor to acquire samples over the entire length of the probe, providing a larger representative sample of the mixture and creating a capacitive averaging effect that allows the electronics to calculate a more accurate measurement. The downside is that the underlying physics limit it to oilcontinuous mixtures. As water content in an oil-continuous mixture increases, there comes an inversion point after which

is effectively “shorted out”. The short to ground drives the capacitance to infinity and obscures the dielectric information. This generally limits the systems to zero to 50 percent water in light oil, and zero to 80 percent in heavy oil. To ensure the best performance and value from a cut monitor, the user has to have comprehensive data on the process parameters and product characteristics that can influence performance. A cut monitor selection should be evaluated on the following criteria: • Accuracy required • Range of measurement • Mechanical configuration • Process characteristics • Maintenance requirements • Ease of use • Price With detailed information on the options available, users can make the decisions on the technology and solution within that technology that best meets their needs.

the oil is dispersed in water rather than the water dispersed in

For more information, contact LaTech Equipment at

oil. At this point, the fluid becomes conductive and the capacitor w

Cut Monitor Combustible and Toxic Gas Detection

Not just Smart Transmitters, It’s Smart Business

LaTech Equipment Process Controls & SCADA Solutions

Environmentally Bulletproof

Reliable, Accurate & Maintenance Free

1950 South 900 West, Suite S7 Salt Lake City, UT 84104 800-801-3982

w w w. l a t e c h e q u i p m e n t . c o m BAKKEN OIL REPORT – SPRING 2015



Mattracks, innovator in rubber track conversion systems, can help with the challenges in accessing remote work sites Mattracks was started back in the early ‘90s by company CEO Glen Brazier with a little help from his then 11-year-old son Matt. Matt made a drawing of a large truck with tracks instead of tires and he asked his dad, “Could we make something like this?” After a few years of development and testing, Brazier gained his first of many patents on his track conversion design. The first set of Mattracks was manufactured in Thief River Falls, Minnesota in 1992. Later, production was moved to its current location in Karlstad, a small town in northwest Minnesota, with the first tracks being sold to the public in 1994. Mattracks, Inc. was incorporated in 1995 and at that time employed just six people to manufacture and market the original rubber track conversion system. The first model was sold primarily in the U.S. markets, as well as in Canada. Mattracks added additional sales staff in 1999 to address the growing interests in their products from the international market. In 2001, Mattracks introduced their LiteFoot line of ATV trackconversion systems, adding to the Mattracks line that primarily covered automotive applications, such as trucks and SUVs. The following year they added the Track-tor Assist line to cover tractors, which has since grown to include just about any off-road piece of equipment, from seismic vibrators weighing close to 80,000 pounds, to large telehandlers, to specialized harvesters. Today, Mattracks has over 100 models and has customers in over 100 countries and in all seven continents. Since 1994, Mattracks has continually improved on its original design. Today’s systems offer an increase in speed, a smoother ride, improved traction, more durability, and easier steering. With over two decades of experience in track system design and development, Mattracks continues to be on the leading edge of the track-conversion industry, most recently with their release of the innovative EZtracks Series with its revolutionary track shape. The goal at Mattracks is to meet the needs of the customers. Through innovative designs and advancements in materials used in production, Mattracks’ engineering department is always looking to improve on an already remarkable product reliability, while giving the customer the smoothest ride and most troublefree operation in the industry. 162


Mattracks has several facilities in Karlstad that totals over 200,000 square feet. The main facility is a 100,000-square-foot production plant. A 60,000-square-foot facility is used primarily for shipping and receiving, and a 25,000-square-foot polymer department is dedicated solely to rubber production and development. In addition, Mattracks owns three separate testing sites in the Karlstad area that cover over 500 acres. One unique aspect of Mattracks is that it is one of only a few manufactures who operate their own rubber track production department. The Mattracks polymer department produces every rubber track. The rubber tracks used with their track systems need to work in a wide range of environments and terrain. Custom rubber material formulations are required to meet those demands. With Mattracks handling their own rubber track production in-house, track engineering, manufacturing and quality control can be closely monitored. Mattracks continually is developing their rubber tracks so that they are even more efficient and even more durable. The main production plant is home to both traditional and stateof-the-art metal fabrication equipment, including precision machining and materials-cutting equipment. This gives Mattracks tremendous product fabrication capabilities. Multiple assembly lines are set up to allow for a quick changeover, allowing Mattracks to shift production resources to meet specific product demands. The production department is always working to improve on an already efficient process in order to control rising material costs, all while maintaining a high level of quality control. Mattracks engineering takes advantage of the many resources available to design, test and prototype each part that goes into the quality products manufactured at Mattracks. Their suite of CAE software products allows them to go from concept to print to prototype to quality production components in as little as minutes. Manufactured parts produced by their precision fabricating equipment are routinely checked by engineering personnel to assure close tolerances and quality throughout the production process. Mattracks uses the latest CAE software; including 3D CAD Modeling, Finite Element Analysis (FEA), Multibody Dynamics


(MBD), and data acquisition systems. In addition, Mattracks engineers utilize everything from 3D printers for prototyping to portable coordinate measuring machines (CMM) for quality control and vehicle measurements. Along with product design and development, Mattracks engineers design and build their own equipment and machines used for production, track molding, and product testing. Mattracks holds dozens of international patents on the many designs that make Mattracks the most technologically advanced, independent, rubber-track conversion systems found anywhere in the world. Used for recreation, construction, farming, defense, exploration, emergency services, and much more, Mattracks can equip most any vehicle or machine with tracks, from small ATVs to machinery weighing over 40 tons. When compared to a dedicated track vehicle, Mattracks’ costefficient mobility solutions convert a wheeled vehicle into a tracked vehicle capable of traveling over soft terrain like mud, snow, sand, swamps and bog, with minimal impact on the environment. With the rubber-track system, one simply bolts on an independent track unit in place of the vehicle’s tire, giving an “alltrack-drive” vehicle with all the features and functionality of a road vehicle, but capable of meeting off-road mobility challenges. Plus, Mattracks is not limited to off-road use. They are able to be driven on paved roads and do not damage the road surface. What is unique about Mattracks rubber-track systems is that most of the tracks can be installed by just removing the tires and bolting the rubber tracks in place. It’s as simple as changing a tire. Mattracks’ incredibly low-ground pressure provides mobility in mud, sand, snow, swamp, rocks and hard surface. Mattracks enables an organization the ability to move personnel and equipment where it wants and when it wants. The road condition, or the lack of a road, will not be a problem with a Mattracksequipped vehicle. The large track footprint provides the vehicle with added flotation, by spreading out the vehicle’s weight over the surface of the ground. Improved traction is also gained through the amount of surface contact between the tracks and the ground. This combination of traction and flotation allows a Mattracks-equipped vehicle to travel over soft terrain with as little as 1.5 psi [10 kPa]. A conventional truck with tires exerts as much as 40 psi [275 kPa], while an average man will place seven psi [48 kPa] on the ground. Mattracks low-ground pressure leaves less impact on the land as ones travels through sensitive environments.

Mattracks is as easy on a vehicle as regular tires. With the track system design, there is a natural gear reduction that provides an increase in pulling force where the rubber meets the road, as compared to tires. Because of this, a Mattracks-equipped vehicle can make greater use of the engine torque at low speeds. The vehicle also retains lock-to-lock steering, which provides the same turning radius as tires and allows one to use full power to move around obstacles. Mattracks features an exclusive rubber torsion anti-torque system that helps prevent tracks from over-rotating. The Mattracks steering-assist package also provides easy onehanded steering, even while the vehicle is not moving. Mattracks-equipped vehicles are at work exploring for oil and gas, installing and servicing telecommunication systems on construction sites, mining, drilling, logging, forestry, surveying, power transmission lines and pipeline construction. The track systems have been put to work in many industries such as farming, law enforcement, search and rescue, emergency services, and government agencies. They have proven to be a reliable solution for routine travel and for the transportation of equipment and supplies into many different work environments. Mattracks are used on light-duty to heavy-duty trucks, SUVs, and vans. The LiteFoot ATV tracks are used on ATVs, UTVs, and heavy-duty utility vehicles with 33 models to choose from. The Track-Tor Assist rubber track systems are available for 4WD and 4WD with front-wheel assist tractors up to 80,000 pounds, and are also used on other farm equipment such as harvesters, combines, swathers, and sprayers. The Trail-R-Mate track systems are nondriven systems that can be put on trailers, farm implement tractors, and other pull-behind commercial, recreational and agricultural applications. Since 1994, Mattracks have been sold to people all around the world, from the South Pole in Antarctica to the North Slopes of Alaska, from the Americas to the Middle East. Mattracks are being used by various domestic and foreign government agencies, search and rescue units, maintenance and engineering crews, commercial users and recreational users. Everyday people are finding out different ways the rubber tracks can be used, and calling Mattracks to find a solution. If mobility is an issue, Mattracks is the answer. Additional information is available by contacting Mattracks, Inc. at 218-683-9800, 1-877-436-7800 (toll-free U.S. & Canada). Visit online at, email at Also, follow Mattracks on Facebook and Twitter, @Mattracks. w BAKKEN OIL REPORT – SPRING 2015



Novel PROH2O® technology for treating produced water Oreco has developed the PROH2O® system, a mobile containerized system based on ceramic membrane technology for filtering all types of produced water. The system, which currently has a patent pending, can treat produced water by removing dispersed oil, suspended solids, and bacteria, therefore making the water ideal for reuse. The reason for reuse of conventional produced water is typically for enhanced oil recovery where the PROH2O® system eliminates risk of blockage of the oil well and minimizes labour cost as it is a fully automated system. Frack water flowback reuse is of particular interest due to significant cost reduction by minimizing fresh water, trucking, and disposal costs. The system removes close to all oil, total suspended solids (TSS) and bacteria from produced water streams down to low levels (one ppm). It can treat produced water up to 1000m3 per day of feed. Typically, the unit will have a recovery level of 95 to 98 percent. The unit is mobile, fully automated, and easy to hook up and operate. Produced water in and out, treated to perfection with PROH2O®.

standards and directives, including ATEX in Europe, UL in the USA, or CSA/CUL in Canada. Other international standards can be met upon request. The ceramic membranes in the PROH2O® system are operated in cross-flow mode for stable operation with an intelligent operational program and unique cleaning in place (CIP) chemicals. Membranes and cleaning chemicals selected by Oreco gives robust operation with full recovery of membrane flux. Typically a unit will need CIP cleaning every second week of operation and it approximately takes three hours per month to perform the CIP cleaning procedure with minimal operator requirement. The operational cost of the PROH2O® system consist of power consumption on 185 KW, CIP cleaning chemicals and labour cost, which all add up to less than $1 per m3 treated water and excluding labour, the PROH2O® operational cost is less than $0.17 per m3. PROH2O® pilot testing Before releasing the commercial PROH2O® systems, thorough site testing has been performed with two mobile pilot units for different types of produced water, like frack water flow back, conventional produced water and SAGD water, specifically in the Canadian oil patch. More than 20 site tests have been performed and also many laboratory tests in collaboration with oil and gas companies. Also tests at produced water disposal facilities showed that the PROH2O® technology increased the disposal capacity, and as the PROH2O® is fully automatic, it eliminated the work exchanging bag filters. All tests have proven that the technology is very robust with stable membrane flux and permeate quality that meets customers’ expectation.

The PROH2O® seen above is compliant with ASME and ABSA, and is suitable for operation in hazardous areas, CSA Class 1, Zone 2. The unit is equipped with back flushing capabilities and has incorporated an intelligent cleaning strategy that utilizes speciality chemicals when membrane fouling occurs. The PROH2O® can deal with almost any type of produced water thanks to Oreco`s specially developed automated operation algorithm. The PROH2O® meets the highest international safety 164


Ceramic membrane technology for produced water treatment Ceramic membranes have all the structural and chemical benefits of ceramics, namely high strength and superior chemical and thermal stability. This makes it possible to construct a system for membrane treatment of produced water, which is both stable and efficient. Ceramic membranes are an obvious choice for treatment of produced water, as they will be able to reduce both dispersed


Typical operational data from pilot test showing stable flux when back flush is working.

oil content and total suspended solids (TSS). This will make the treated water suitable for reusing water flooding applications, suitable for further treatment, e.g. removal of TDS, or for discharge in a disposal well without risk of plugging the reservoir. Typical produced water composition is shown below in Table 1. Produced water can contain a great variety of substances and vary significantly in pH. However, the chemical resistance of the ceramic membranes will allow the membrane system to be used in every situation, as long as the liquid is pump-able in centrifugal pumps. The PROH2O® ceramic membrane system does an exceptional job at removing solids, dispersed hydrocarbons, and bacteria below one ppm. The main advantage of the system in treating produced water will be the reduction of solids to low concentrations and to sizes not larger than one micron.


Content: Water Total Suspended Solids (TSS) Total Dissolved Solids (TDS) Oil & Grease

Value: 99% 100 mg/L – 1000 mg/L 3,000 mg/L - 340,000 mg/L 5 mg/L – 1,000mg/L

Industry outlook for PROH2O® water treatment The oil and gas industry has lacked a simple solution for the treatment of produced water. Increased focus on hydraulic fracking, tightened water regulation, strong focus on water reuse, and minimizing water cost within the oil and gas industry gives robust water treatment technology like the PROH2O® a unique opportunity fulfilling the industry needs. w

Below right: An Oreco operation adding special developed chemical “Solution 100” into CIP cleaning tank, ensuring full recovery of the membrane flux. Mobile PROH2O® system from Oreco, treating 1000 m3 per day (40x12x8 feet).



bakken fence

Bakken Fence – “Committed to Safety” In addition to a comprehensive safety culture, Bakken Fence has a foundation of experience, professionalism, and outstanding customer service. Bakken Fence began operations three years ago when we saw a need for a fence company in eastern Montana, western North Dakota and the Bakken oilfield. Bakken Fence is a full-service fence company and is part of a large fence corporation that has been fencing Montana and Idaho for over 39 years. This corporation has been a family business in the Flathead Valley since 1976. Our business ethics, based on experience, professionalism and outstanding customer service, are why we have been in business for so long and why we are able to grow our business to serve more of Montana, Idaho, and North Dakota. “Committed to safety” is the trademark of Bakken Fence. Our employees are our most valuable asset and we are committed to sending them home to their families at the end of each day. Bakken Fence is implementing an aggressive safety program creating a culture that empowers employees to be responsible for their personal safety and the safety of their co-workers. Bakken Fence is committed to educating all employees at all levels of the company to identify, analyze, and reduce risks. It is our goal for this education and training to infiltrate their lives, both at work and at home. In order to fully comply with the Montana Safety Culture Act, Bakken Fence provides new employees with general safety orientation, providing information common to all employees and appropriate to the business’ operations, before they begin their regular job duties. In addition, we provide job-specific safety training for employees before they perform that job or task without direct supervision. Regular refresher training is also in place to expand the knowledge and awareness of current safety issues. Bakken Fence is committed to developing an awareness and appreciation for safety through tools, including consistent safety meetings and incentive programs. We are training all of our employees to identify hazards and unsafe work practices or conditions, and identify the corrective action needed to remove the hazard. It is our intent to raise workplace safety to a preeminent position in the minds of company management and employees alike. 166


We have an extraordinarily well-trained team of installers, many with over 20 years of experience in the fencing industry. This expertise is what ensures that all of our fence projects are installed with the customer and their needs in mind. Because of the volume of business we do, we are able to buy our supplies at deeply discounted prices. We always pass this price reduction onto our customers. We are a licensed, insured and bonded contractor offering free estimates, the lowest prices, and the highest quality. Bakken Fence products and services include well site enclosure fencing, temporary construction fencing, farm and ranch fencing, residential and commercial chain link and vinyl fencing, along with barbwire, cedar privacy and ornamental iron. In addition, we offer a full line of automatic gates and operators. Bakken Fence brings experience, expertise, and outstanding customer service to every fence project. “Committed to Safety” -- for Bakken Fence it’s the right thing to do. We believe that safety is essential to the company. Safety is the foundation of our business and nothing is more important. A culture of safety is a culture of caring; we are a family and we watch out for each other. Bakken Fence truly cares for each and every employee, and our goal is to make sure each one knows they have value and worth. We are encouraging a safety culture that empowers employees to stay safe for their families. At Bakken Fence our number-one asset is our employees, and we are committed to sending them home to their families at the end of each day. w

Contact: Steven Liebelt Vice President of Marketing and Sales 701-557-4418


Proactively addressing your CSA concerns By Dennis Zerbst

is a great strategy for improving your CSA score. I know what questions are going through your mind right now. What things should I be checking during my maintenance process? Why do I need a tester? Consider this: the trailer is responsible for more traffic stops that lead to OOS violations than any other item. The biggest culprit is a light being out. The most-ticketed items for OOS violations are the brake system, brake adjustment, tires/wheels, and lights. Now, armed with this data you can formulate a trailer inspection process to address these big hitters knowing that it will pay dividends out on the road. Over the last two years, I have seen a

and lost productivity. Their solution was

So why is an advanced diagnostic tester

surge in the concern trucking companies

to get proactive with their maintenance

part of the equation? Three reasons:

have regarding their CSA (Compliance,

process. They purchased a single

Safety, Accountability) score. It used to

Lite-Check 920 advanced diagnostic

be a concern of owners and executives,

trailer tester and used it for every trailer

The Lite-Check 920 is designed to TMC

but has been progressing down through

inspection for 90 days. At the end of the

RP (Technology Maintenance Council

the ranks to the service manager and

90-day trial, the trailers inspected with

recommended practice) standards. The

technician level. One thing is certain; to

the Lite-Check 920 had zero (out-of-

tester knows what pressure to apply the

do nothing means your CSA score will go

service) OOS violations and passed every

brakes to set brake stroke, can detect

up. That is the way the math behind the

Level 1 inspection. With results like this,

shorts down to the milli-volt, and uses

calculation works. So what can you do to

it was easy to justify putting a Lite-Check

PLC (power line communication) to

proactively address your CSA concerns

920 in every one of their service centers

communicate directly with the ABS ECU

and sleep better at night?

across the U.S. They are well on their

(anti-lock braking system electronic

One Lite-Check customer was frustrated

way to improving their CSA score, and I

control unit).

by their Level 1 inspection performance

am sure there is a promotion coming to

and the drag it was having on their CSA

the service manager who devised this

score; not to mention the amount of

plan. Bottom line is that passing Level 1

Using PLC technology, a technician can

money spent on expensive road repairs

inspections and avoiding OOS violations

see the stored faults in the ABS ECU.



1. Improved test capability

2. Proactive testing capability


These are faults that occurred on the

the trailer inspection process

road, but self-corrected. That usually

provides structure and

means they are intermittent faults that

consistency to the inspection

will steadily get worse to the point of

process. This is what our

becoming an active fault. Using this tool

customer discovered during

is like looking into the future and seeing

their 90-day trial and it works.

the next ABS failure. Fixing it proactively

Awhile back I was

in the shop saves you from fines, road

demonstrating the Lite-

repairs, and lost productivity.

Check 920 to a group of

3. Consistency

maintenance directors from one company. They were

Using an advanced diagnostic tester with

looking at the tester because

credit card to purchase the tester on the

a consistent inspection process yields

they were getting more ABS violations

spot and said with a laugh, “They would

consistent results. I have been a trailer

and it was impacting their business. After

technician in a fleet shop and know

write more tickets if they did!” This man

seeing the capabilities of the tester, the

that every technician has their own way

vice president of maintenance speaks up

of doing inspections. That can lead to

from the back of the group and wanted to

inconsistent results and does not serve

know how many highway patrols across

Please check out and

the fleet well. Using a Lite-Check 920 with

the country used this tester. When I said

call us at 1-800-343-8579 if we can assist

a regimented 10-minute once-around,

a few, but not many, he handed me his

you with your trailer-testing needs. w

obviously saw a chance to use technology to proactively stay one-step ahead of CSA.

Use Technology To Increase Shop Productivity “Your tester is amazing! It has literally cut our inspection time in half.” Lite-Check testers will help your technicians to do a better job and with increased speed. • Technology helps to determine the root cause of a fault quickly and accurately -No guessing or parts swapping • The remote control saves valuable time. -Turn on or off any electrical circuit to test or verify a fix. -Apply and release the brakes from under the trailer. • Using a standard trailer inspection process yields consistent results -Takes one technician 10 minutes to check lights, brakes and PLC ABS.

Utility Trailer Tester - Pro-Check 725

Air-brake Trailer Tester with ABS - Inspector 920

Learn more at Or call 800-343-8579 and ask for Dennis. BAKKEN OIL REPORT – SPRING 2015



Unit Liner Company introduces Enviro-Guard Interlocking Polyurethane Tank Bases Available colors: Carlsbad Canyon, Covert Green, Shale Green and Desert Tan. Environmental benefits: • Less disturbance to site • No CFCs or HCFCs • May be reused In the past, preparing a site for aboveground storage tank placement included pea gravel installation. While this method appeared more cost-effective, over time the gravel was inevitably exposed to leaks and spills. Now, costly remediation can be eliminated with the Enviro-Guard Interlocking Tank Bases. Installed on minimally prepared ground, they not only ease site preparation and reduce setup costs, but their non-permeable surface is easily cleaned for future use. Foam core tank supports are lightweight and easy to install. The patented interlocking design offers identical parts, meaning that you never get to the jobsite with the wrong fit. Tough polyurethane coating is UV-stable and corrosive resistant. A twoman crew easily assembles our unique design. We have available sizes to fit any tank. Product benefits: • 120 mils of durable polyurethane coating is the toughest in the industry. • Dual corrosive-resistant urethane core and polyurethane coating. • UV-resistant coating. • Installs completely above grade, no punctures in the secondary containment liner. • Interlocking pieces stay put during tank installation and high winds. • Assembled tank pads are easily repositioned to accommodate site changes. • Sloped profile of the sloped polyurethane tank bases is the only tank stand that fully supports cone bottom tanks with full contact. 170


Unit Liner Company – Protecting you and the environment Unit Liner Company, established in 1967, provides innovative solutions for oilfield challenges. We offer the industry-leading secondary containment system with the Enviro-Guard metal containment system. The Enviro-Guard metal containment system is available either galvanized or powder coated. We also provide oilfield pit liners, location liners, tank battery containment liners, spray-in polyurea liner, walkovers, tank rings, load-line containment, foam & snap-up berms, interlocking tank pads, cone-bottom tank pads, and cattleguards/gates/panels. With our large inventory, the Enviro-Guard complete containment systems are in stock and ready to ship because prompt service is our priority. Quality installations are very important to us, and so is safety. Our safety program is one of the best in the industry and meets or exceeds major energy companies’ requirements. Unit Liner Company always provides quality workmanship in a timely manner. From lining pits for drilling to metal secondary containment for production sites, our innovative liner and containment products are only a phone call away. Let us bring peace of mind to your operation with products that offer lowcost maintenance. To learn more, visit, or call (800) 633-4603. “Unit Liner Company is committed to meeting challenges and creating solutions. Our promise is to meet or exceed our commitments to the customers we serve, and in doing so, lead our industries in quality and innovation.” -Unit Liner’s mission statement. w


Flexible Spill Containment Polyurea Spray-In Liners Heavy-Duty Walk-Overs

Enviro-Guard Containment Systems

Complete Secondary Containment Structures Call For A Quote Today!

Protecting You And The Environment Since 1967 WWW.UNITLINER.COM

Interlocking Tank Pads

(888) 748-5463

Dennis Campbell (405) 481-8074

Jeremiah Jordan (405) 481-8076

Protecting You And The Environment Since 1967

Protecting You And The Environment Since 1967

TEXAS Building and servicing Hydrostatic TEST TRUCKS

Testing units for over 30 years.

Fully stocked 1 1/4 thru 4 1/2 bar tools

• KMW parts tooling used on all truck locations • Our units are competitively priced and low maintenance

• High Pressure Hoses • Gauges • Valves • Sheaves • Bar Cups • Drag Cups • O-rings • Wireline

Texas Test Trucks Phone: 432.381.8142 Fax: 432.381.3730 Email: BAKKEN OIL REPORT – SPRING 2015



A leap of faith Glacier Oilfield Services takes a chance in North Dakota When Steve & Verna Brown decided to move their potable water hauling business from Lander, Wyoming to North Dakota in 2011, it was a big leap of faith. Having operated the business

in Wyoming for over 10 years, as well as owning two other businesses, they decided to take a chance and open a business in North Dakota, Glacier Oilfield Services, Inc.

Having only persistence and determination on his side, as well as his experience in Wyoming, Steve took the couple’s fifth wheel, bought two water trucks, and began pounding the pavement trying to drum up business. It was definitely an eye-opening experience. Although many people think that all you had to do is show up in North Dakota and the money will start flowing in, the Browns soon found out that nothing was further from the truth. It took many long months with Steve enduring the brutal cold of winter in the fifth wheel, with Verna staying behind in Wyoming to take care of the other business, before things started to look up. At first, Steve drove the trucks himself, getting to know the business inside and out, before being able to hire some help. Over the past four years, the business has grown to include not only potable water hauling, but also pumping and disposal of septic waste. Portable toilets with full servicing are now available for a large variety of business options. They also have Conex storage units for lease. Glacier Oilfield Services is based in Watford City, North Dakota, and they are committed to providing fast and reliable service to the Bakken. They don’t believe in cutting corners, and do believe in doing things right the first time. Safety is at the top of the priority list and all drivers adhere to a strict company safety policy, with a comprehensive company safety program in place. All




drivers are experienced and have driven

services at competitive prices, and

The Browns are proud of what they have

extensively in North Dakota. All the

they are available 24/7 to service your

built in North Dakota and hope to be a

required insurance, licenses and permits

needs. It is important to the company

part of this unique community for many

are in place, as well as TERO licensing.

to maintain a good reputation and good

years to come. Give Steve a call at

Glacier Oilfield Services is dedicated to

relationships with the customers they

701-300-0679, or 307-349-9214 –

giving customers prompt and reliable


we’d love to visit with you. w


701-300-0679 • 307-349-9214

WATFORD CITY, ND Glacier Oilfield Services, Inc. is in the business of hauling potable water, pumping septic waste and providing portable toilets and servicing.

We are based in Watford City, North Dakota, and are committed to providing reliable service to the Bakken.

Call us for your water and septic needs. Please contact Steve at 701-300-0679 or 307-349-9214. BAKKEN OIL REPORT – SPRING 2015


brock white

Site stabilization for shale gas drilling pad drill rigs, storage tanks, and other heavy

surface water problem. Our design also

plant and equipment.

reduced the amount of shale required by

Frequently faced with poor or wet subgrade ground conditions, one of the most challenging engineering to make it suitable for construction

for the project – a rigid, multi-

and heavy traffic. At one such well pad

directional composite geogrid that

construction site, near Hudson’s Hope

combines the reinforcing properties of

in the north Montney area of British

Secugrid®geogrids with the separation

Columbia, NAUE distributor Brock White

and filtration properties of Secutex® non-

was called in to review the surface and

woven geotextiles. Combining all the

subsurface conditions, and to provide

requirements for a variety of properties

recommendations to mechanically

into a single product, Combigrid® is

stabilize large areas of the site.

ideal for use on weak subsoils. A total

designs called for a conventional build comprising: 250 mm (10 inches) of compacted levels of aggregate, 600 mm (24 inches) of shale, a geo-composite drainage layer, and a top layer of highly plastic blue clay. However, as Jeremy

faced with the challenge of constructing sizeable, self-contained well pad sites, which incorporate large surface

time and transportation.” Combigrid® 30/30 was specified

built over soft clay subsoils, and initial

populated areas, shale gas developers are

considerable cost savings in material,

aspects is to stabilize the well pad area

The unbound well pad was to be

Often in remote locations, far from

50 percent – providing the operator with

of 36,575 square meters of Combigrid® 30/30 was successfully installed between the in-situ wet clay subgrade and a 300 mm (12-inch) layer of shale. A further 200mm (eight-inch) layer of 40 mm (1½ inch) crushed aggregate was then laid, followed by a top course of 20 mm (¾-inch) aggregate across the pad.

Whalen of Brock White explains: “The

Early inspection of the completed works

site was experiencing considerable

showed that Combigrid® had achieved

problems with surface water pooling and

the required interlocking of the base

rutting. We travelled to site to review the

course, allowing fully loaded trucks to

surface and subsurface conditions, and

drive over the site without any rutting

the client provided us with geotechnical

or aggregate movement. The unpaved

data for the site. In conjunction with

pad held up well throughout the harsh

NAUE, we were able to put forward a

Canadian winter, and coped well with

geosynthetic solution, which would

a rig move/set-up and rig release

create a mechanically stabilized base

during the spring breakup. Combigrid®

course incorporating Combigrid®

performed as expected, contributing

impoundments. Here, the requirement is

geogrids. We were confident that a

significantly to a safe and stable worksite

to construct a safe and stable unbound

design utilizing Combigrid® geogrids

that meets the extreme day-to-day

worksite, which has sufficient bearing

would sufficiently improve the ground-

operational demands of a shale gas-

capacity to withstand the weight of large

bearing capacity, as well as solve the

drilling site. w







Thawzall stands for high-efficiency, high-quality and excellent customer support By David Reller, Thawzall, LLC

introduced its simpler H750 flameless heater and has demonstrated that there is a more reliable flameless heater that delivers more heat volume with less engine load than the “fluid shearing” methodology – and at a much better price point. The H750 flameless heater is the best flameless heat solution for the rugged needs of the oilfield environment. Heating tanks, drilling platforms, and in hording applications, the H750 has proven itself with faster temperature rises than the three of the other “fluid shearing” purported one million BTU units. The H750 single outlet can be, and should be, split using “Y” splitters to better utilize the available heat volume. With the highest CFM and static pressure than any other flameless heater – the Return on Investment (ROI), full

a fluid shearing device driving a diesel

H750 puts more heat to the site than any

utilization, minimal downtime, and

engine at high load and RPM to harvest

other flameless heater on the market. In

minimal maintenance are key indicators

any significant amount of CFM and heat

one test, a competing 1.2 million BTU

when it comes to flameless heat in the

in the delivery. All have had significant

unit and the H750 were side-by-side

oilfields. Water from fracking, whether in

maintenance and reliability issues with

using 50 feet of duct to show ducted

barrels or pipelines, well heads, drilling

relatively short unit lifespans.

temperature and CFM at the duct outlet.

mud, injection sites, etc., all desperately need heat in inclemently cold oil drilling regions, and reliability of the heat source is an imperative and ongoing concern these past few years.

In 2011, Thawzall introduced its patented H1350 flameless heater. This unit delivered more heat volume at variable fan speeds and was capable of being ducted over 250 feet without significant

The H750 significantly outperformed the larger unit, both in heat delivery and CFM. More importantly, a same-sized block of ice was placed at the end of each duct and the H750 melted its block in over half the time.

Most operators have been forced to

heat or CFM loss. The H1350 hit the

deal with the “fluid shearing” style of

market with the highest unit cost, and

Reliable, low maintenance, more heated

flameless heaters. Each manufacturer of

due to sticker shock, found a smaller

air, longer run time – H750 – the best

this particular style have incorporated

audience. In the fall of 2014, Thawzall

investment in flameless heat. w




Leading Performance

Meither™ pillow block with thermal couple sensor for maximum bearing performance.

Energy efficient, carbonfiber, poly-chain main drive system for maximum life.

Industry leading 40 HP back drive motor powering an 80:1 gearbox.

Six, 304SS, liquid-end epicentric ports for easy pond depth adjustment.

EEG-1967HD2 Barite Recovery / Dewatering Centrifuge • 1-281-261-5778 BAKKEN OIL REPORT – SPRING 2015


polyguard products

RD-6: A proven solution for CP disbonding By Richard Norsworthy

Cathodic protection shielding issues led many pipeline

use coatings that are proven to be non-shielding to cathodic

companies away from tape coatings, but Polyguard Products

protection when disbondments occur when doing construction

Inc. took the challenge head on in the late 1980s, developing its

of new systems or for field rehabilitations, then if disbondments

patented RD-6 to overcome the problems seen by traditional

do occur, the CP can actually protect the pipe.

solid film-backed tape.

Some in the pipeline industry do not believe there are non-

In 1988, when Polyguard’s founder Robert Nee rejoined the

shielding to CP coatings when disbondments occur. Yet, the

company’s pipeline coatings division, discussions revolving

newly revised NACE SP0169-2013 defines non-shielding coating

around the issues that began to resurface regarding solid film-

systems as: A coating system with a failure mode (loss of

backed take coatings, such as cathodic shielding and soil stress,

adhesion, etc.) that does not prevent distribution of cathodic

and what could be done to improve or eliminate these issues.

protection current to the metal substrate. NACE now recognizes

As a result, RD-6 was developed to eliminate the high dielectric

that there are some coating types that are non-shielding to CP

backing which caused the cathodic shielding by replacing it with

when disbondments (loss of adhesion) occurs.

a woven polypropylene mesh backing. This addressed not only the shielding issue, but also gave the product resistance to soil stress because of its low elongation and high-tensile strength properties. Upon deciding to continue with the manufacturing of tape coatings while other companies were moving away from that technology, Polyguard’s research and development team knew

Polyguard’s RD-6 has been proven to allow CP to work effectively to protect the pipe should this system ever disbond. There have been several articles written on this system and how effectively it has worked over the last 27 years of service. There have been no reported leaks or measureable corrosion under RD-6 at the rare exposed disbondments.

that it must provide the end user with a product that was not

Some pipeline companies in North America now say that

significantly affected by soil stress and CP shielding should there

disbonded CP shielding coatings are their number-one root

be disbondments.

cause of external corrosion. By providing a field-applied coating

Most external corrosion and stress corrosion cracking on pipelines today occurs under disbonded CP shielding pipeline

system that is non-shielding to CP when disbondments occur, Polyguard has revolutionized the industry.

coatings. Pipeline coatings (no matter the type) that are well

Polyguard Products, located in Ennis, Texas, has been a

adhered to the surface are not the problem. Only coatings that

manufacturer of barrier products since 1953. The 100 percent

lose adhesion (disbond) and shield CP are the problem. Adding

employee-owned company can be reached by contacting Chic

more cathodic protection is not the answer in these cases. The

Hughes, vice president of pipeline products, at 281-580-5700, or

disbonded coating must be removed and replaced. If companies w

Most external corrosion and stress corrosion cracking on pipelines today occurs under disbonded CP shielding pipeline coatings. Pipeline coatings (no matter the type) that are well adhered to the surface are not the problem. 178


Cold temperatures affecting epoxy cure!



Coating System

Users and Contractors are finding RD-6 to be their solution. Applied at temperatures as low as -40° F with no cure times and less installation problems. For more information, scan the QR code on the right with your smartphone / tablet app or call us at 281.580.5700

Innovation based. Employee owned. Expect more.

What’s the Value Place promise? A truly affordable, incredibly clean, much safer experience that’s always simple to fit your needs. No matter what brings you to our three Value Place locations in North Dakota, you can count on a respectful, helpful and friendly team dedicated to keeping the Value Place promise to our guests.


Value Place Williston Value Place Dickinson Watford City 121 Well St. W. 3233 Legend Dr. 4005 Frontier Ave. Williston, ND 58801 Dickinson, ND 58601 Watford City, ND 58854 1-888-338-0045 1-888-568-8210 1-877-345-4950 Discounts available for long term or volume bookings. Please call 701-713-0156.



convey-all USA

Convey-All USA by Hamilton Systems, Inc.: We have more in mind

Supply, LLC about distributing their line of equipment in the United States. Since then, we have added many reputable brands to our product lineup, such as Meridian Manufacturing, USC, LLC, and Junge Control Systems, just to name a few. In response to the changing times, we have modified our structure, our products, our technology, but never our values. Convey-All USA remains committed to not only providing a durable piece of equipment, but also a system that grows with Over 20 years of experience within the agriculture industry

you and keeps you moving forward.

and building transload facilities has given Convey-All USA by

We realize that growth is costly. We realize that our product

Hamilton Systems, Inc. the expertise required to provide solid

is not the least expensive option on the market today. We are

and knowledgeable leadership in our trade.

even willing to admit that our product is on the high end of the

Through hard work and perseverance, we have inched along and we’ve grown into Convey-All USA, the leading U.S. distributor of the Convey-All line of seed tenders, conveyors, seed treatment,

price spectrum; however, we would love to gently remind our respected end-users that Convey-All USA is not selling only a tube conveyor or a frack sand site.

and bulk-handling systems. We are proud of our work, but more

With each piece of heavy-duty equipment that leaves our hands,

importantly, we are proud of what our company has become.

we are hopeful for a chance to establish a legacy for your future

We began in the heart of the upper Midwest as Hamilton Farm Supply, LLC, in 1994. Back then we had one product: a universal header manufactured by Commercial Welding, which later became Convey-All Industries of Winkler, Manitoba. In 1997, Convey-All Industries approached Hamilton Farm 180


farmers and families. With each site being created, we are crossing our fingers for the possibility of furthering our nation’s independence from foreign resources. With each undamaged seed that passes through our conveyors and seed treatment systems, we are hoping for a larger yield that provides food for one more person, for one more day.

convey-all USA

Lastly, self-sufficiency is a priority for us at Convey-All USA by

be more than just about money. We are sincerely proud to be

Hamilton Systems, Inc. We believe it is a necessary part of life.

working hand-in-hand with the people that help sustain this

For this reason, we adhere to an installation and training policy

country, and we hope to continue providing services to these

that enables our site customers to operate and maintain their

people for years to come.

systems with ease. Our installation crews come in and they will

Convey-All USA by Hamilton Systems, Inc. We have more in

do what it takes to ensure you know how to handle your system


once we leave. Our company isn’t just about making a sale, because life should

Contact them at 701-454-3875, or visit them online at w



mountain supply and service

Reduce your spend on completion chemicals

In a particularly tough oil and gas market, everyone is looking for a competitive edge. Mountain Supply and Service can give you that competitive edge when it comes to your chemical spend on completion fluids for your coil tubing and workover rig plug drill-outs. We work diligently to live out our mission statement, “to build strategic partnerships with our customers by providing value through exceptional service and product-based solutions”. This is certainly true when it comes to our full line of completion chemicals.

market for coil tubing applications and for all types of water.

Mountain Supply and Service knows full well that lab data doesn’t necessarily translate to the field. That’s why we have gone to extensive measures to ensure our full line of completion fluids used in coil tubing and work-over rig drill-outs have proven their staying power in the field. Mountain Supply and Service can provide you the best solution from our full line of friction reducers and other completion chemicals. Use of our Dynamo Friction Reducers – FR 800, FR 900, FR 950 and FR/Gel 1500 – will provide:

tubing drill-outs by:

Superior chemistry in our Dynamo Gels – Gel 1000, Gel 1100 and Gel 1500 – provide excellent performance from fresh water to heavy brines, as well as high down-hole temps. From xanthan gum biopolymer to a high-viscosity synthetic polymer, the chemistry in our Dynamo Gels provide rapid hydration, highviscosity sweeps, with excellent carrying capacity to produce a cleaner well bore resulting a better producing well. The Mountain competitive edge will minimize your spend for coil

• Providing you with the best completion chemicals on the market. • Providing the best FR compatible with your water – no one-sizefits-all! • Provide the best GEL compatible with your water and downhole temps.

• Chemical design allows rapid hydration in most waters.

• Work with the pump operator to ensure proper mixing ratios.

• Effectiveness in all types of water and high downhole temperatures.

• Deliver your products when you need them.

• Effective reduction and of circulating pressures.

• Reduce the amount of money spent on completion chemicals.

• Extended life for the coil string.

Get the Mountain competitive edge today by visiting us online at

Mountain Supply and Service also provides the best gels on the, or by giving our shop a call. w



• Reduce the amount of chemical used.

Lab Tested. Field Proven!

Reduce Your Spend on Completion Chemicals! In a particularly tough Oil and Gas market, everyone is looking for a competitive edge. Mountain Supply and Service can give you that Competitive Edge when it comes to your chemical spend on completion fluids for your coil tubing and workover rig plug drillouts. We work diligently to live out our Mission Statement - “to build strategic partnerships with our customers by providing value through exceptional service and product-based solutions”. This is certainly true when it comes to our full line of completion chemicals. Mountain Supply and Service knows full well that lab data doesn’t necessarily translate to the field. That’s why we have gone to extensive measures to ensure our full line of Completion Fluids used in Coil Tubing and Workover Rig drill outs have proven their staying power in the field. Mountain Supply and Service can provide you the best SOLUTION from our full line of completion chemicals. Our Dynamo “workhorses” in the Bakken have been our FR-900, Gel-1000 and our Liquid Graphite. The MOUNTAIN COMPETITIVE EDGE will MINIMIZE your Spend for Coil Tubing Drill Outs by: 

Providing you with the best Completion Chemicals on the market.

Providing the best FR compatible with your water – no one-size-fits-all!

Provide the best GEL compatible with your water and down hole temps.

Work with the pump operator to ensure proper mixing ratios.

Deliver your products when you need them.

Reduce the amount of chemical used.

Reduce the amount of $ spent on completion chemicals.

Get the Mountain Competitive Edge today by calling our Bakken location at 701-483-3868.

M O U N TA I N O I L F I E L D . C O M


The only safety orientation for the pipeline industry PEC Safety, in conjunction with Veriforce, is proud to announce the creation of Introduction to Pipeline, an orientation module, which can be used to enhance PEC Basic Orientation. This module is customized for workers in the midstream/pipeline segment of the oil and gas industry. Introduction to Pipeline will be available to anyone that has already completed PEC Basic Orientation, Basic/10, or Core Compliance; or as an additional module to a PEC Basic Orientation, Basic/10, or Core Compliance class. This module is available via instructor-led (PEC Safety), as well as computerbased training (Veriforce).


Students who have completed PEC’s Basic Orientation, Basic/10, or Core Compliance have the opportunity to complete the module via an online computer-based training.

your area, visit:

Upon completion of the Introduction to Pipeline module, the student will receive an ID card and proof of training will be entered into PEC Safety’s training database. Training can be verified through www.

through PEC Safety’s nationwide third-party trainer network. To find a trainer in www.pecsafety. com/map. Computer-based training (CBT) – Available in Veriforce’s online safety training library. To gain access to CBT Introduction to Pipeline, visit: Become a PEC safety trainer and train your own employees – To learn more about becoming a PEC trainer, visit: www.pecsafety. com/

Some of the topics covered in Introduction to Pipeline are:

For a limited time only! The Introduction to Pipeline Train the

• Agencies and regulations relating to the pipeline industry

PEC instructors. Upon completion of your instructor update, you

• Preparation for pipeline transportation

exam on this module, thus authorizing you to teach the module.

• Pipe handling

Basic Orientation, Basic/10, or Core Compliance; Introduction to

• Hazardous materials

Trainer course will be offered free of charge to current authorized will have the opportunity to watch a short webinar and take an Materials will be available to complement instructor-led PEC Pipeline workbook and SITAS will be sold together for $25.

• Transportation of hazardous materials

For more information regarding the Introduction to Basic Pipeline

• Equipment operation and maintenance

PEC Safety’s Training support

• Excavation and guidelines for pipeline 184

– Available


module, or to purchase workbooks and SITAS, please contact department at 844.848.5884, or email us at trainingsupport@ w


FOR COMPLETE PIPELINE SOLUTIONS Full range of API line pipe including ERW, Seamless and DSAW Flanges, high-yield and segmentable fittings Full spectrum of valves up to ANSI 2500

35+ Locations Worldwide


Financial focus What do low oil prices mean for investors? As you’ve no doubt noticed, your trips to the gas station have been a lot more pleasant these past several months. There’s not much doubt that low oil prices have been welcome to you as a driver. But when oil is cheap, is that good for you as an investor?

in oil prices has certainly had an economic impact, but no one

There’s no clear-cut answer. But consider the following effects of low oil prices:

events, whatever they may be – oil price drops, interest-rate

•P ositive impact on economy – When you spend less at the gas pump, relative to recent years, what will you do with your savings? Like most people, you’ll probably spend most of it on goods and services. If you multiply the amount of your increased spending by the millions of other Americans who are also saving money on gas, you can see that you and your fellow consumers are likely adding billions of dollars to the economy. Typically, a strong economy is also good for the financial markets – and for the people who invest in them. •D ifferent results for different sectors – Different sectors within the financial markets may respond in different ways to low oil prices, even if the overall effect is generally positive. For example, businesses such as consumer goods companies and auto manufacturers may respond favorably to cheaper oil and gas. But the picture might be quite a bit different for energy companies. You could spend a lot of time and effort trying to adjust your investment portfolio in response to low oil prices. In fact, you may well want to consult with your financial professional to determine which moves might make sense for your individual situation. Yet there’s actually a bigger lesson to be learned here: Don’t overreact to temporary developments. The recent decline


can predict how long these prices will stay low or what other factors may arise that would affect the financial markets. That’s why you can’t reconfigure your portfolio based on particular fluctuations, political squabbles at home, natural disasters in faraway lands, and so on. If you can keep from being overly influenced by specific events, you may be able to gain at least two key benefits: First, by not making trades constantly in reaction to the headlines of the day, you can avoid piling up heavy fees and commissions – costs that can reduce the return rate on your investments. Second, you’ll find that if you aren’t always thinking about what’s going on in the world today, you can focus your investment efforts more intensely on where you want to be tomorrow. The most successful investors set long-term goals and don’t focus on factors they cannot control, such as oil prices, interest-rate changes or other economic events. Instead, these investors make adjustments, as necessary, to accommodate changes in their goals, as well as other changes, such as revisions in tax laws – but they basically stick to their same approach for the long term. So be aware of low oil prices, but don’t get so “pumped” about them that you sludge up your consistent investment strategy – because that strategy has the energy to keep you moving toward your important objectives. This article was written by Edward Jones for use by your local Edward Jones financial advisor. w


Communications Inc.

Call: 1.866.831.4744


Pumping Septic Tanks | Grease Traps - Back Flush | Pump Installation | Floor Drains Contaminated Soil | Jetter | Portable Toilets Commercial - Industrial- Residential - Oil Field Service

The key to success.

DEL Communications Inc. & You.

24 Hour Service

Locally Owned & Operated

“Pumping is our Business - Not a Side Line!” A-1 EVANS




(701) 852-5103



(701) 721-2727 OR (701) 720-2727

We offer outstanding personal service and quality in the areas of:


Profit Through


March 31 - April 2, 2015 Colorado Convention Center Denver, Colorado

Reducing cost and adding takeaway It seems even turbulent oil prices can’t quell the innovative spirit that launched the U.S. shale revolution. Producers throughout the Rockies are defying the odds and recapturing narrowing profit margins by operating more efficiently. Leveraging the knowledge they’ve gained from drilling thousands of wells, these leaders are saving valuable time and money by improving their frac designs, streamlining logistics and deploying new technologies.

KEYNOTE LUNCHEON SPEAKER General John R. Allen Ret., U.S. Marine Corps

Come and discover new ways to cut operating costs and add more to your bottom-line. At DUG Bakken and Niobrara 2015, you’ll hear directly from 25+ senior-level executives, industry analysts and technology experts in the Rockies. Find out how the region’s top producers are finding ways to do more with less. Connect with over 2,500 upstream and midstream executives and operations and logistics managers during the event’s 9+ hours of targeted networking sessions. And with 200+ exhibitors onsite, you’ll get hands-on access to the latest products, services and technologies that will drive the industry forward in 2015.

General Allen will discuss America’s geopolitical relationships, share his perspective on global security and sovereignty, and give an update on his current role coordinating the international coalition to battle ISIS.

Featured Speakers:

James Volker

Chairman and CEO Whiting Petroleum

Taylor L. Reid

President and COO Oasis Petroleum

Greg Hill

President and COO Hess Corporation

Tim Rezvan

Senior Vice President, Energy Research Sterne Agee

Ian Dundas

President and CEO Enerplus Corp.

To ATTEND, SPONSOR or EXHIBIT, visit Presented by

Hosted by

Trisha Curtis

Director, Upstream and Midstream Research Energy Policy Research Foundation Inc. (EPRINC)


Customer needs primary focus at Mi-T-M Corp.

AGW Series.

3500 PSI Hot Water Pressure Washer. Today when cost efficiency and time

individual machines. This product not

model. Both allow the user easy access to

management is at the top of everyone’s

only saves time, it saves money,” says


mind, many companies are engineering

Dana Schrack, vice president.

products to better suit their customers’

Mi-T-M customers are increasingly

Available in three models, this

interested in pressure washers that

combination series is another trendsetter

are portable, lightweight, and small in

in the industry. A 404cc Subaru OHC

size. Mi-T-M addressed these trends by

Mi-T-M recently introduced a new line

engine powers both a tank and a base

specifically designing a full line of cold-

of equipment giving contractors more

model that features a cast-iron two-

water pressure washers with aluminum

options when they are in the market to

stage compressor with a venting system

frames to meet their needs. One of

purchase big-ticket items. The Mi-T-M

for reduced crankcase temperature, a

the most popular cold-water pressure

AGW Series (compressor/generator/

generator that produces 5,000 watts of

washers in the marketplace is the Mi-

welder combination) offers three

power, and a 170 amp arc welder with

T-M CA Aluminum Series – providing

machines in one, making it the complete

adjustable amperage. A 688cc Honda

contractors a unit with an aluminum

on-site workshop for construction,

OHV with electric start powers a third

frame that is lightweight, yet rugged,

structural steel, and equipment repair

model that features a splash-lubricated

featuring a patented vibration isolation

professionals. Now a job that once

two-stage compressor, a 5,000-watt

plate. This series of pressure washers

required the need for three machines

generator, and a 220-amp arc welder.

offers a range of cleaning power from

needs, and Mi-T-M Corporation is among them.

can be done more efficiently and faster because of this new tool.

Tough and dependable, this series offers

2400 PSI up to 4000 PSI.

the versatility of either a 20 or 30-gallon

Hot water pressure washers have

“Customers no longer need to clutter

tank model, designed to mount into

also evolved over the years, and with

the work vehicle or take care of three

standard service bodies, or a base-mount

advanced technology, Mi-T-M is able




to offer customers increased PSI on pumps, allowing them to clean more efficiently and effectively. Mi-T-M hotwater pressure washers are built with performance-proven gas or diesel engines, or UL-listed electric motors. Cleaning with high-pressure water heated to approximately 190-200 degrees is the best way to clean grime and grease from industrial equipment and machinery. Mi-T-M hot water units feature warranties on all engines, pumps and heating coils. CA Series 4000 PSI.

By utilizing Mi-T-M single and dual-axle water trailers – paired with hot-water pressure washers, customers can clean their equipment at remote jobsites. These trailers are fully integrated with

results possible when using the right

self-contained systems that are designed


with a large supply tank. All can be customized to fit most application needs and are perfect for the oil and gas industry.

solid waste from your jobsite. Looking ahead, Mi-T-M expects to

Mi-T-M recently introduced a line of

continue focusing on customer

semi-trash pumps that are designed

application needs, pressure washer

and built to be exceptionally durable

design and functionality, and integrating

and easy to transport so they can be

new technology into existing products.

Pressure washer accessories are

quickly moved from one site to the next.

becoming more popular to customers.

Excellent suction and high-pressure

Mi-T-M has a great selection of pressure

output capabilities, these pumps can

washer accessories in their product line

move a large volume of liquid very

up – such as rotary surface cleaners,

quickly. Two sizes are available; a two-

detergent injectors, extension wands,

inch model rated at 200 gallons per

and rotating nozzles. The wide variety of

minute, and a three-inch model rated at

For more information on the high-quality

accessories ensures customer’s cleaning

440 gallons per minute. They are ideal

product Mi-T-M Corporation designs and

tasks will be completed with the best

for removing unwanted water and small

manufactures, visit w

Please support the advertisers who help make this publication possible. Index to advertisers can be found starting on page 208.

Efficiency and time management will continue to be top of mind in all industries and Mi-T-M is committed to developing products that creates value for their customers.

LT Environmental, Inc.


A Full-Service Compliance, Environmental Engineering, and Safety Firm serving the Rocky Mountain Oil & Gas Industry since 1992 and 10 years in the Bakken Office Location:

10 42nd Street East, #1301 Williston, ND 58801 Office # 701-609-5436


Spill Response / Site Investigations / Remediation / Compliance / SARA SPCC / Sampling / Stormwater / Permitting / Health & Safety / Air Quality Regulatory Affairs / Industrial Hygiene / Produced Water Management

Offices located in COLORADO / FLORIDA / IDAHO / NEW MEXICO / NORTH DAKOTA / UTAH / WYOMING Headquartered: Arvada, Colorado / 303-433-9788 / Contact: Jim Short at 303-962-5530 or




A foam of a different color Demilec’s polyurea coating ideal for niche Bakken market By Jillian Mitchell

Safe, eco-friendly and fast-acting – the advantages of polyurea coatings are indisputable. And naturally, the oil and gas sector has taken note. Rising in popularity is the MaxGuard® products from Demilec, boasting both cost- and time-saving benefits with many practical oil and gas pipeline applications, including corrosion control, containment, pipe and tank protection, and concrete and metal rehabilitation. “Polyurea is not affected by moisture. You can even apply it on ice – it won’t break,” says Serge Pomerleau, business manager, specialty products for Demilec, one of North America’s largest manufacturers of spray foam insulations and polyurea products. “The finished product won’t be affected by any weather [...] and it is not affected by oil, grease, gas or rust.”

The U.S.-based company, with plants in Boisbriand, QC, and Arlington, TX, specializes in products known to improve speed, safety, and durability of jobs – the products cure in five to 10 seconds, tact-free. Adding to the list of perks, the easy-to-store products are compliant with volatile organic compound (VOC) regulations and can be applied over a variety of different substrates, including concrete, metals, wood, fiberglass, PVC, and geotextile. Arguably its best feature, the coatings provide multiple-coat performance in a single-coat application. “In the coating industry, polyurea coatings can be applied between 1/8th of an inch to 3/4 of an inch, and you have a very good product applied on any surface,” Pomerleau says, citing that the polyurea products have also been applied

successfully with Greyhound buses, at the Calgary Zoo, and at a Suncor Refinery in Montréal. MaxGuard U-290, a two-component elastomeric spray coating, has a track record for superior benefits that surpass traditional materials like paint, epoxy, fiberglass, and vinyl esters. The coatings, which are available in a variety of colors, are applied with a hose-and-gun model and are commonly used for substrate protection and corrosion prevention, as well as abrasion, chemical, environment or atmospheric resistance, waterproofing, and structural enhancement. “We will guide our customers to the right products to use for their projects,” Pomerleau says. “We’ll recommend special applicators to do the job.” The company of 30-plus years is also in the rigid foam business, used for isolation and support (hold in place) of pipelines and tanks (reservoirs). w

Please recycle this magazine once you are done.




UNMATCHED COATING VERSATILITY Maxguard’s versatile elastomeric coatings are based upon a two-compound polyuria cellular structure. The coatings can be applied in high and low temperatures, on vertical, horizontal, or slanted surfaces in all forms and dimensions. Maxguard is available in several variations; from the high-performing Maxguard H-760, a polyuria hybrid designed for protection of steel and/or concrete substrates, to the low-pressure Maxguard U-190, a year-round application that is perfect for fighting weather, corrosion, and chemical exposure. The line also includes the Maxguard Slam 250 and Maxguard U-290, both excellent multi-substrate adherents.

COMMON USES FOR MAXGUARD® Exterior pipe applications Secondary containment High-traffic areas Truck bed liners Steel Tanks Gravel guard



© 2015 Demilec USA, (877.336.4532) | 817.640.4900 | |


Ready when you need it Flo-Back Equipment Flo-Back provides equipment solutions to the oil and gas

integrity of the units. You can be confident that your rental unit

production, testing, and pipeline industries by keeping a ready

will perform as designed.

supply of exceptional-quality rental equipment tailored to


current market needs.

Ensuring the safety of your people by supplying well-maintained

Started in 2010, Flo-Back Equipment now provides production

and well-inspected production equipment is our number-one

and testing equipment in North Dakota, Colorado, Wyoming, Pennsylvania and Western Canada. With one call you can source all of your production and testing equipment needs. Flo-Back’s field-ready equipment is available for rent or purchase when you need it.

priority. By adhering to our strict rental return policies and ensuring the integrity of the equipment is checked after each rental, you can be sure that the equipment is of exceptional quality every time it goes out to a job. Ultrasonic testing is performed after each rental to ensure the integrity of the

Flo-Back Equipment maintains a fleet of over 75 units ready for

equipment, PSV’s are reset after each rental to ensure proper

your next job. Equipment includes test separator packages, sand

operation parameters, and all valves and controls are tested

separator packages, well head separator packages, line heaters,

to ensure operational integrity. By renting from Flo-Back

flow line, flare line, flare stacks, flare knockouts, and pressurized

Equipment you can be assured that you will be working with


equipment you can be proud of.

Equipment available when you need it

Equipment for rent or purchase

Separator packages range from 275 to 1440 PSI and from 10

All of our field-ready equipment is available for rent or purchase.

m3 to 19.5 m3. Flare stacks are available in either four-inch-by-

Flo-Back Equipment’s fabrication division is kept busy constantly

40-foot or six-inch-by-60-foot configurations and are all zero-

replenishing the rental fleet with new equipment, as well as with

ground disturbance units. Flow line, flare line and manifold

refurbished units. This inventory is always changing, so please

skids are available in two-inch to three-inch sizes ranging from

contact us for an updated list of available units.

fig 206 to fig 1502. Flare knockouts from 1,000-gallon 14.9 psi to 75-barrel 50 psi are available for your next job. Line heaters range from one mmbtu to four mmbtu, and from 1,500 ANSI to 2,500 ANSI, and pressurized storage ranges from 25 m3 to 40 m3.

Whether you are just starting up your operations or need to utilize rental equipment to allow your operations to grow, FloBack Equipment is your answer.

All equipment is thoroughly inspected before and after each

Well-designed exceptional quality equipment ready when you

rental for deficiencies, ensuring the structural and operational

need it is Flo-Back’s promise to the industry. w

DEL Communications Inc. and you,



Communications Inc.



Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, Canada R3L 0G5 Toll Free:1.866.831.4744 | Toll Free Fax: 1.866.711.5282


Full-service Bobcat dealership in Eastern Montana Working in Eastern Montana/Western North Dakota and you

and he will be more than happy to get you scheduled in. If you

need to have your machine serviced? Working in Eastern

have a quick question about your piece of equipment, Aaron

Montana/Western North Dakota and need to rent a skid steer,

can help you out with that too, as he has 18 years of service

attachment, lift, or trailer?

experience, with three years of that in Bobcat.

Bobcat of Miles City is your full-service dealership in Eastern

The parts department has parts in stock, and if the part you

Montana. They have rentals if needed, a full service and

are looking for is not in stock they are sure to find it and get it

parts department, and sales. Besides Bobcat, they also carry Husqvarna, JLG, and new to the dealership is the Kioti Tractor line.

ordered for you. They can also have parts shipped to you at an additional cost if you are not able to pick it up. Contact Jere for all your parts needs, he has 40 years of parts experience in the

Bobcat of Miles City has an extensive rental fleet. They rent skid steers of all sizes, with wheels and tracks and compact excavators. There are also various attachments for rent, such as post-hole diggers, post pounders, trenchers, tillers, angle

equipment industry, with one-and-a-half years of that in Bobcat. Salesman Rex is extremely knowledgeable. He has 17 years of experience selling Bobcat equipment and attachments, with

brooms, hydraulic breaker, brushcat, grapples, pallet forks, and a

three years of that also selling the Kioti Tractor line. Rex is a

soil conditioner. In addition, there is also a compact tractor and

Montana native, but gained his 17 years of experience in North

utility vehicle for rent. If a lift is what you are looking for, they can

Dakota and has recently moved back to Montana. With all of

help you out with that too. Trailers are available for rent to help

that experience it also makes him one of the top 20 salesmen in

you haul that piece of rental equipment, or if you just need to

the nation for eight years. He can help you out with your new or

haul something else.

used equipment, or attachment needs. Also, if they don’t have

Rental rates are by the half-day (three hours), day (eight hours),

the machine, attachment, or piece of equipment you are looking

weekend (16 hours), week (40 hours), and four weeks (160

for, Rex is sure to find it for you.

hours). Rates for the rentals vary depending on what you are

Bobcat of Miles City is located at 2324 S. Haynes Avenue in Miles

renting and for how long. All skid steer rentals include a bucket

City, Montana. Take the Miles City/Broadus exit number 138 and

at no extra charge. If you need that piece of equipment serviced, give Aaron a call 194


head south. They will be on your left-hand side. You can give them a call at 406-874-2228. w

Over 20 years of trust and reliability in dust collection.

Creating tomorrows standards for todays environment

2,000 cfm to 80,000 cfm units

Custom Builds Trailer Mounted Skid Mounted

Diesel Electric Bi-power

EnTech Industries East Grand Forks, MN (218)773-6602 New Castle, PA (724)202-6740


eide ford diesel and fleet

Dedicated Ford diesel service center caters to Bakken customers By Lisa Fattori

Since opening its doors in March 2013,

little downtime with their vehicles,” says

repairs. Given the high demand for diesel

Eide Ford Diesel & Fleet Services has had

Jackie Bius, manager of Eide Ford Diesel &

repair services, the company opened

a steady stream of customers, serving

Fleet Services. “We know how important

a second service center, one that is

energy producers and field support

it is to get these trucks back into service

dedicated to accommodating Bakken

businesses operating in the Bakken

and our customers really appreciate our

oilfield customers.

oil patch. Located in Bismarck, North

quick turnaround times. We can have

Dakota, the service center specializes

vehicles repaired and back to customers

in Ford truck repairs, offering expertise

within three days. For a lot of service

and experience in servicing Ford F-250,

centers, there’s a three-week wait just to

F-350, F-450 and F-550 pick-up trucks.

have your truck looked at, so the time

Quick turnaround times, full warranties

savings we offer is quite significant.”

and friendly, dependable service have earned Eide Ford Diesel & Fleet Services an excellent reputation and a growing clientele of satisfied customers.

“Eide Ford Diesel & Fleet Services was created to support the Bakken oilfield,” Bius says. “The dealership’s service centre was extremely busy servicing oilfield customers. We had to expand, but there was no room to build a larger facility. The

Eide Ford Diesel & Fleet Services is a

diesel service center is just a mile away

division of Eide Ford Lincoln, who has

from the dealership. We’re on the corner

been serving the Bismarck-Mandan area

of 26th Avenue and Morrison Avenue,

since 1981. The full-service dealership

just off of Bismarck Expressway, so it’s a

“Our goal is to get customers in and out

offers new and pre-owned vehicle sales,

great location with easy access for our

as quickly as possible, so that there is very

leasing, service, parts and collision




eide ford diesel and fleet

Eide Ford Diesel & Fleet Services provides

hours drop-off and pick-up is available,

Eide Ford Diesel & Fleet Services is

repairs to a wide range of oilfield support

and the service center can arrange for

located at 2508C East Morrison Avenue in

vehicles, including water trucks, welding

tow service. For customers who prefer to

Bismarck. Hours are: Monday to Thursday

trucks, and vehicles to transport people

wait for vehicle repairs, a shuttle service is

(7:30 a.m. to 5:30 p.m.) and Friday

and equipment. The repair center’s

available to transport people to the Eide

(7:30 a.m. to 5:00 p.m.). Closed Saturday

team of certified technicians and master

Ford Lincoln dealership, where there is a

and Sunday. For more information,

certified technicians has a combined

comfortable customer lounge, complete

call 701-595-0251, or visit

experience of 65 years. Ford factory-

with WiFi service. w

trained truck and diesel technicians participate in on-going training and skills

development to keep abreast of changes in the industry. Such expertise ensures that technicians know Ford vehicles

General Equipment & Supplies locations: Fargo, ND Bismarck, ND Minot, ND Williston, ND Shakopee, MN Sioux Falls, SD

better than anyone to offer quality workmanship and speedy service. The service center offers 10 bays to accommodate a large volume of vehicle repairs on a daily basis. Staff has access to the latest Ford diagnostic software and

General Aggregate Equipment Sales locations: Regina, SK Winnipeg, MB

stays current with updates, as soon as they are available. A well-stocked parts department provides on-site inventory of Ford/Motorcraft parts. If parts do have to be ordered, they are usually delivered by the next day. Eide Ford Diesel & Fleet

The Complete Source For All Your Aggregate Needs! We have the right equipment for the job and experienced service technicians with access to a large parts inventory.

Services also offers a two-year unlimitedmile warranty on parts and labor. “We’re highly specialized and very organized, which is why we can offer such great service,” Bius says. “We always keep our customers informed about the

Ask us about power generation vans

progress of their repairs and we have a master certified warranty officer onsite, so we can deal with warranties very quickly. Our technicians are capable and willing to undertake any challenge, and we have all resources available to us to handle any situation.” Eide Ford Diesel & Fleet Services can accommodate single trucks or entire fleets, and provides regular maintenance services for fleet customers. Customers come from as far away as Williston, Watford City and Montana, and include several high-profile companies. After-

Sales  Rental  Parts  Service

800-437-2924 BAKKEN OIL REPORT – SPRING 2015



Is there a better option for your survey needs in the Bakken? There are multiple quality survey companies operating in the Bakken. How should you choose one? If unparalleled Bakken survey experience provided by a local North Dakotan, and the opportunity to acquire other quality services from the same company are important to you, read on. Taney Engineering, with offices in Minot and Williston, provides these advantages to its Bakken clients.

analysis, and civil engineering design. Does your company ever

Leon Brackey, Taney Engineering’s lead oilfield surveyor, has unparalleled Bakken surveying experience. Since 2002, Brackey has staked hundreds of Bakken well pads, access roads, and pipelines. He has performed hundreds of oilfield boundary and topographic surveys, and produced hundreds of well plats and alignment sheets.

the results. They also provide a full range of civil design services,

Additionally, Taney Engineering is a one-stop-shop for numerous other oilfield services, including material testing, geotechnical

Call Taney Engineering at 701-858-8900 in Minot, or 701-570-4438



need soils, aggregates, asphalt, or concrete tested to ensure quality? Taney Engineering can provide gradation and proctor tests for your well pads, access roads, and pipe beds. Does your company ever need geotechnical analysis of soils? Taney Engineering can drill and analyze geotechnical boreholes, perform percolation testing, and make recommendations based upon including storm water management plans, pollution preventions plans, FEMA flood analysis, traffic studies, grading plans, pad designs, access roadway designs, pipeline plans, pipeline profiles, and utility plans.

in Williston. w


Westcoast Resorts The quintessential Canadian fishing experience

If you’ve been searching for the ultimate angling adventure, look

Our fishing program is designed for a wide range of ages and

no further!

skill levels, from the pros to the first-time anglers. Friendly

Westcoast Resorts is pleased to offer guests a choice of three world-class fishing destinations to choose from, ranging from Canada’s pacific central coast to the most northerly locations only 80 miles south of Alaska. Locations have been carefully selected based on three concepts; exclusivity, remoteness, and proximity to some of the most productive sport fishing grounds in the world. Although they may seem a world away, getting there is easy. Following a private chartered flight from Vancouver, a helicopter brings you directly to the lodge doorstep. Our properties offer

and experienced WCR guides instruct guests on local fishing techniques and the lodge’s current “hot spots” for targeting the regions species, ranging from trophy-sized king salmon and scrappy silvers to mighty halibut and delicious lingcod. Premium fishing gear and use of our custom-designed boats is provided and time on the water is only limited by sunrise and sunset! Join us this season to discover why Westcoast Resorts is known as one of Western Canada’s largest, most diverse and most sought after angling experiences… the legendary salmon are only the beginning!

personalized service, incredible dining, and luxurious amenities | Toll-free 1.800.810.8933

in an unpretentious atmosphere. w BAKKEN OIL REPORT – SPRING 2015


larson electronics

Portability in explosion-proof lighting equipment production lines, refineries, and processing areas where work is commonly performed on a routine basis that causes interaction with hazardous materials, it is practical to utilize integral explosion-proof lighting. Other locations where work is not so routinely performed, but the potential for ignition exists, present new challenges for the workers who must enter them.

Explosion-proof lighting forms an integral part of equipment safety when operating in areas that have been deemed as being hazardous locations. The presence or potential presence of flammable or explosive gases, vapors and materials in the hazardous workplace presents a serious threat to the safety of workers in that area, and the structures, goods and health of nearby private residences, commercial businesses, and the people in these other nearby areas. In many cases, the presence of flammable materials is a normal part of operations and an unavoidable necessity. As a result, preventing the ignition of these materials becomes a critical part of maintaining safety while they are present. In most hazardous locations, explosion-proof lighting is integrally installed and part of a comprehensive approach to safety that benefits from regular inspection and maintenance. Such lighting is generally well suited to the environments at hand and performs quite well. Additionally, the wiring, controls, and power supply for such systems is likewise matched through classification to such lighting systems in order to meet compliance and help provide the highest degree of safe operation possible. The problem, however, is that it is not possible to utilize such integrally installed lighting systems in all hazardous locations. In locations such as 200


Any work area can become a hazardous location if flammable gases or vapors are present. The structure or location need not be the usual control area or work floor within a building in order to require explosion-proof protection. Items such as storage tanks in refinery operations, sealed rail car tanks, ship holds and containers in the commercial marine transport industry, paint spray booths, power plants and the like, all hold the potential for the presence of flammable materials and atmospheres when working within or nearby to them. Servicing, maintenance and repair of such containers and structures often requires worker ingress, and although the contents may be removed, flammable vapors and gases may remain, which can still potentially be ignited by the electrical tools and lighting workers bring with them. As a result, it is necessary to provide portable illumination which holds the same explosion-proof approval and certification as normally integrally mounted lighting. Portable explosion-proof lighting is constructed similarly to fixtures designed for permanent mounting, but there are a couple notable differences that must be taken into consideration. Since such lighting is portable, providing power for the lighting will require external cords and connections rather than the protected conduit and wiring permanently mounted fixtures use. This presents the first important difference that can cause potential problems. The primary problem with such cords and connections is that every time the device is connected and disconnected, it is possible for arcing and sparking to occur at the point of connection. As a result, it is usually safest to connect the device to a properly rated explosion-proof extension cord, then connect the cord to an outlet outside of the hazardous area. In this way, the operator completely removes the potential for sparking that could ignite a flammable atmosphere. Another important consideration is the durability of the portable lighting in question. Due to its very nature, portable lighting is subject to a great deal more abuse and rough


handling than a permanently mounted fixture. Portable light fixtures are prone to being knocked over or dropped, as well as receive accidental shocks and impacts from the high amount of activity occurring around them. The problem here is that although a light may be properly classified, it is possible to damage the unit, or even shatter a bulb or lens, which can then result in an extremely unsafe condition as the hot parts of the lamp can be exposed to the flammable outside atmosphere. This potential is greatest with explosion-proof lights, which rely on incandescent or HID bulbs for their light output as both these lamp styles utilize a fragile glass bulb, which is prone to breaking or shattering under heavy impacts. One great way to avoid potential shattering or exposure of hot lamps to hazardous atmospheres is to utilize newer portable explosion-proof LED lamps. These lamps run far cooler than HID or incandescent lamps, and are much more durable. LEDs have no fragile glass or wire filaments to break or shatter, and their solid-state design can withstand substantial shocks and impacts without any serious degradation in performance or protection. The use of portable lighting within hazardous locations has grown significantly over the last decade as regulations continue to tighten and OSHA pays ever-closer attention to operations in potentially hazardous industries. By paying an extra bit of attention to how this portable lighting is chosen and operated, workers can maintain safety and compliance while reaping all the benefits that portable explosion-proof lighting holds. w



lt environmental

Remediation solutions for remote oil and gas locations By Steve Kahn, P.E., ( (LT Environmental, Inc., Arvada, Colorado, USA); Rob Rebel, P.E., ( (LT Environmental, Inc., Arvada, Colorado, USA); and Dan Hosler, staff geologist, (LT Environmental, Inc. Arvada, Colorado, USA)

Remote oil and gas locations present unique challenges

and well circulation systems. The solar soil vapor extraction

for the remediation practitioner. A variety of solutions have

and well circulation systems are low capital cost and have been

been implemented to overcome infrastructure limitations

effective at remediating smaller footprints of impacted soil and

and high transport and personnel mobilization costs. While

groundwater. The solar systems have reduced cost by an average

the remediation concepts are not new, the remediation

of 35 percent when compared to dig and haul techniques used

implementation is innovative through the utilization of

at similar locations.

alternative power sources and on-site mechanical/chemical soil treatment.

A third technology is being employed at remote locations with long hauls to landfills and/or high tipping fees. On-site treatment

Site wellhead natural gas and solar power systems have filled

of petroleum hydrocarbon impacted soil via mechanical

the niche where traditional remediation systems utilized a public

shredding with chemical oxidation is emerging as a viable

utility power drop. Two oil and gas operators in Colorado are

technology amidst escalating costs associated with transport

utilizing 14 mobile-air sparging /soil vapor extraction systems

and disposal of waste generated at remote remediation

powered via on-site wellhead natural gas. The air sparging /

sites. Ex-situ mechanical shredding and chemical oxidation

soil vapor extraction systems are constructed in a variety of

technology have successfully been employed on a remediation

configurations housed in mobile trailers equipped with remote

project within an oil and gas-producing field. The treatment

telemetry systems, solenoid controlled manifolds, and a variety

of approximately 30,000 cubic yards of excavated petroleum

of other components to increase flexibility, effectiveness, and

hydrocarbon impacted soil from 23 separate sites containing

reduce operations and maintenance visits/cost. A second remote

earthen, produced-water skim pits, and evaporation pits was

technology is solar-electric power to operate SVE Microblowers™

managed by LT Environmental, Inc. since the fall of 2013.



LT environmental

Treatment of petroleum hydrocarbon impacted soil by ex-situ mechanical shredding and chemical oxidation begins with the identification and characterization of an impacted site and a corresponding economic and technical feasibility analysis of remedial technologies. If ex-situ mechanical shredding and chemical oxidation is selected as an applicable technology, initiation of work may proceed. Initial actions generally include removal and physical separation of soil. The soil is physically separated by mechanical shredding equipment, which promotes biodegradation and increased surface cover of petroleum hydrocarbon contaminants. The shredded soil is then conveyed through an internal spray system that delivers an eight to 14 percent hydrogen peroxide solution, which oxidizes the petroleum hydrocarbon constituents. The treated soil is placed in windrows and reactions are allowed to reach equilibrium prior to confirmation soil sampling. A 20-point composite sample was collected for every 500 cubic yards of treated soil and submitted for laboratory analysis of benzene, toluene, ethylbenzene, total xylenes, naphthalene, and total petroleum hydrocarbons as gasoline range organics and diesel range organics. Approximately 60 composite samples were collected and analyzed throughout the course of the project. Laboratory analytical results indicated all samples were in compliance with applicable, relevant, and appropriate regulations.

locations can be substantially lower than alternative traditional methods of transporting impacted material to a landfill for final disposal. A 31 percent reduction in cost ($430,000) relative to traditional methods was realized during a 2013-2014 project. Health and safety concerns, including fugitive dust emissions, road hazards, and potential public exposure were minimized as a result of treating impacted soil on site. Long-term risk and liability issues were minimized due to the removal of petroleum hydrocarbons from the soil to a level in compliance with applicable, relevant, and appropriate regulations. Overall, greenhouse gas emissions during treatment activities were reduced relative to that of transporting the soil off-site for final disposal. The Denver-Julesburg 2013-2014 project highlights the viability of ex-situ mechanical shredding and chemical oxidation as an emerging, innovative, and economic technology capable of treating petroleum hydrocarbon-impacted soil at remote sites. w

Operation and maintenance costs associated with on-site mechanical shredding and chemical oxidation for remote BAKKEN OIL REPORT – SPRING 2015



Expansion proves positive for Pro Tank Products

Pro Tank Products Inc. (PTP) is a North Dakota-based steel

facility is equipped with the latest CNC technology managed

manufacturing company that produces oil storage tanks for

by an in-shop mechanical engineer. This allows PTP the ability

the Bakken oilfield and surrounding areas. The company has

to design and build an almost unlimited range of products to

two production facilities, one located in Minot, ND producing

meet the unique specifications of our clients,” said Dr. Todd

100 to 400 barrel steel tanks, stairway and walkway, and a new

Marsh, president of Pro Tank Products. “Our shop manager,

70,000-square-foot facility in Plentywood, MT, which opened

supervisors, and foreman are second to none and have over 50

for production in September 2014. The new facility consists

years of combined experience in tank production and pipeline

of a state-of-the-art welding and paint shop, which allows for

construction and maintenance. In the first four months of

efficient production of 100 to 1,000 barrel steel tanks of any

operation in the new shop, we have designed and built products

design. The new 20,000-square-foot paint shop is designed to

in size from simple 100-barrel burp tanks to 1,000-barrel tanks

apply external paint and internal coating for tanks in a controlled

with internal floating roofs. The shop is designed to meet the

environment. PTP’s strategic locations on both the east and

industry demands of complexity, quality, efficiency and safety.”

west sides of the Bakken give clients a financial advantage by

In addition, Pro Tank Products remains at the forefront of

decreasing both the costs and complexity of the logistics of

sustaining an accident-free workplace, consistent with OSHA

moving finished tanks to well sites.

regulations for safe manufacturing workplace standards. Their

PTP’s mission statement is to provide the industry with the highest quality, lowest-cost steel production tank in the Williston Basin region.

safety manager is OSHA trained and certified, ensuring the highest standard of safety will be maintained in their work environment. As a supplier, PTP will comply and honor the Code of Business Conduct of their clients and demonstrate compliance

“There is no comparison between our old shop and the new

with applicable safety, environmental, and transportation laws

state-of-the-art production facility in Plentywood. Even though

and regulations. PTP is also in the process of certifying their

our shop in Minot is still a highly functioning facility, our new

production facilities with the American Petroleum Institute.



pro tank products

Pro Tank Products is committed to the local community. “Pro Tank Products is both an engine for economic growth and a business resource for the region. As an industrial and product manufacturing member of the Williston Basin economy, our company especially values the potential partnerships we can create to help this region realize it’s potential in the petroleum production market,” said Marsh. In terms of product output, Pro Tank Products will double its storage tank output during their 2015 production year, currently underway. In the longer term, PTP will maintain production goal increases that are consistent with revenue and profitability growth, as well as available human resources. By adopting a smart growth strategy, Pro Tank Products will be able to meet the demands of their customers and stay within their goals of providing the highest quality and most cost-efficient product available in the Bakken area. In addition to steel production tanks, PTP also builds steel fuel tanks, grain/fertilizer bins, and offers fiberglass tanks for resale. w

Also producing

400 & 500 Barrel Fiberglass Tanks

Pro Tank Products announces that our new, state-of-theart, 70,000 square foot manufacturing facility is now open and producing 400, 500, 750 and 1000 barrel steel tanks. Located on the NW side of the Bakken Oil Play in Plentywood, MT our new shop can meet all of your Oil Storage Tank needs and save you thousands on shipping! We also manufacture 100, 200, 300 and 400 barrel steel tanks, coated steel tanks as well as Walkways and Walkovers in our Minot, ND facility. Ask about our inventory of 400 & 500 barrel fiberglass tanks available for resale to meet your needs. Visit or contact Butch Hensley - Production Manager at (406) 239-0916 or Sales Rep Lee Vander Vorste at (605) 484-4258 for all your needs. Corporate Office 406-765-2223 Plentywood Facility Main Number 406-895-2445 Minot Facility Main Number 701-838-6346 Trent Odenbach (Plentywood, MT) 605-830-9801 BAKKEN OIL REPORT – SPRING 2015



Get the most out of your “zero-discharge” closed-loop system Whether you are working toward maximizing barite recovery, or looking to get the most out of your “zero-discharge” closed-loop system, Elgin Energy Group’s (EEG) field-proven solids control and dewatering centrifuges are a perfect choice. With over 500 centrifuges installed worldwide, the EEG-1967HD2 represents EEG’s flagship centrifuge. Power and performance Elgin’s EEG-1967HD2 is fitted with a NEMA premium, continuousduty, energy-efficient, poly-chain driven, 125-HP main drive and a direct-coupled 40-HP back-drive. The 125-HP main drive can operate the centrifuge up to a maximum rotational speed of 3,100 rpm, therefore generating more than 2,500 G’s of force. Using an inclined motor mount, motor and belt maintenance is made easy by the adjustment of two jackscrews. No additional motor mounts, brackets, or tensioning devices are required. By utilizing a carbon-fiber poly-chain, no belt retensioning is required after installation is complete. The carbon-fiber tensile cords are length-stable and can withstand shock loads that frequently lead to belt failure. More importantly, EEG’s carbon-fiber poly-chain will not require quarterly replacement. Another significant advantage relative to the use of poly-chains is the lowered energy consumption. Since the poly-chain operates with a positive tooth/groove engagement, there is no start-up or operational slippage. The combination of the poly-chain, sheave selection and shaft-to-shaft distances, the 125-HP motor delivers more than 125 percent of the required power to operate the EEG1967HD2. The 40-HP back-drive coupled with an 80:1 planetary gearbox generates an industry-leading speed differential, which ultimately translates into a larger performance window. This performance window is what grants the EEG-1967HD2 maximum flexibility when managing the solid/liquid cut-point and the moisture content of discharged solids. Centrifuges with a large gearbox provide a smaller differential range. This is more than acceptable when dealing with wastewater and industrial applications. On the other hand, there are a myriad of challenging drilling fluid conditions in which the specific gravity of the materials experienced can vary greatly. As such, a wide differential range is essential to performance and application flexibility. 206


Liquid-end effluent management Elgin’s EEG-1967HD2 centrifuge uses six specially designed, stainlesssteel, epicentric liquid-end discharge ports. Each port can be rotated to the desired setting, therefore allowing the operator to make efficient changes in pool depth by simply loosening the set screws. By using six epicentric fluid ports, the EEG-1967HD2 can manage a hydraulic load up to 500 gallons per minute. After discharge from the liquid-end effluent ports, the fluid is routed to a discharge hopper fitted with two six-inch (152.4 mm) Victaulic™ connections. Solids-end discharge management The EEG-1967HD2 utilizes a 360-degree discharge port arrangement, which ensures smooth directed discharge of the solids. By using eight “wide-mouth” tungsten carbide discharge ports and plows, the EEG-1967HD2 is capable of handling large volumes of erosive solids without damaging the centrifuge. Each solids discharge port maintains an open surface area of 10.6 inches (6.84 cm2) for a total open-surface area close to 85 inches (546 cm2). This industryleading open-surface area allows Elgin’s EEG-1967HD2 the ability to handle large volumes of solids without detrimentally impacting performance. Rotating assembly Elgin’s EEG-1967HD2 304 stainless-steel rotating assembly is 18.5 inches (470 mm) in diameter and 67.5 inches (1,712 mm) in length. By using a length over a diameter ratio of 3.5, EEG achieves an extremely stable centrifuge. During laboratory testing, vibratory analysis measured only 0.19 inches per second at 2,600 rpm, half the industry standard. The rotating assembly is given further stability by the use of premium bearings. Both bearings are installed in Miether™ heavyduty pillow blocks. Equipped with externally accessible grease ports, daily greasing can be performed without the removal of machine guards. The same considerations as above were also given to the internal flights. The internal flights are lined with tungsten carbide tiles along their entire length of both the clarification and the tapered section, extending the EEG-1967HD2’s ability to manage erosive solids. All this combined with onboard monitoring sensors, protecting the system from temperature and vibration overload, and an HMI Variable Frequency Drive control panel, make this the perfect unit for today’s drilling contractor. w

Flameless Heater • Safe – heat without flame • Unmatched versatility – forced air and/or hydronic heat • Huge fuel savings – maximum heat for less • Tough – rugged and reliable 24/7 operation • Safe – full fluid containment

Contact: Mike Gove 612-859-4755

Index to advertisers A-1 Evans Septic Tank Service.................................................... 186

Edgen Murray Corporation......................................................... 185

Ae2s Water Solutions.......................................................................93

Edward Jones......................................................................................45

Aggreko - Americas...........................................................................17

Eide Ford Diesel & Fleet Shop.......................................................49

Alert Plus LLC.......................................................................................38

Emergency Site Protection North.........................................30, 31

Aspen Air............................................................................................ 112

Encore Energy................................................................................... IBC

Bakken Fence.......................................................................................53

Entech Industries............................................................................ 195

Baranko Bros. Inc................................................................................11

FB Industures Inc................................................................................79

Bartlett & West....................................................................................54

Ferguson Waterworks................................................................... 121

Beaver Creek Archaeology.............................................................35

Flo-Back.............................................................................................. 193

Blue Cross Blue Shield of North Dakota....................................13

Franz Construction Inc.....................................................................78

Bobcat of Miles City..........................................................................43

General Equipment & Supplies.................................................. 197

Borsheim Crane Service, Inc........................................................ IFC

Glacier Oilfield Services................................................................ 173

Brady Trucking, Inc............................................................................27

Graham Construction.......................................................................18

Brawler Industries, LLC....................................................................... 6

Grand Hotel..........................................................................................56

Brock White Canada..........................................................................33

Hampton Inn & Suites......................................................................78

Canary USA...........................................................................................59

HC Fusion..............................................................................................91

Capital Lodge......................................................................................77

Hotsy Equipment............................................................................ 127

Cat-tek Cathodic Services Ltd................................................. 123

Jasper Engineering............................................................................69

CCI Thermal Technologies Inc.......................................................99

JMS Crane and Rigging................................................................. 119

Claim Post Resources Inc................................................................24

KC Harvey Environmental LLC......................................................73

Compass Minerals..............................................................................61

Keltek Safety Apparel.......................................................................70

Convey-All USA................................................................................ 181

Kemtron.............................................................................................. 177

D&G Polyethylene Products........................................................ 103

KLJ.............................................................................................................. 3

Dakota Gasification Company................................................... 167

Larson Electronics..............................................................................84

Demilec, Inc................................................................................ 23, 191

LaTech Equipment & Supplies.................................................... 161

Devils Lake Economic Development............................................ 7

Lite-Check.......................................................................................... 169

Diamond B Oilfield Trucking, Inc..................................................62

LT Environmental, Inc.................................................................... 189

Dielco Crane Service Inc..................................................................12



MB Energy Services..........................................................................22


MDU Resources Group, Inc............................................................... 4

Double Diamond Industrial Structures.....................................39

M Space Modular Building.............................................................21

DUG...................................................................................................... 187

Mainstream Investors, LLC..............................................................55



Index to advertisers Manger Insurance, Inc................................................................... 119

Rapid City Development Partnership..................................... 117

Mattracks, Inc.......................................................................................63

Reynolds French & Company..................................................... 153

Mi-T-M Corporation.......................................................................OBC

Richland Pump Supply....................................................................36

Midwest Industrial Supply........................................................... 155

RJ Corman Railroad Group.............................................................81

Millennium Directional Services..................................................25

Rossco Crane and Rigging Inc................................................86, 87

Miller Architects & Builders............................................................47

Schlumberger................................................................................... 131

Miller Insulation Co., Inc..................................................................94

Sioux Steel Company.................................................................... 137

Minnesota Limited, LLC...................................................................58

Southern Glove, Inc........................................................................ 133

Montana Safety Services Council............................................. 127 Motion Industries............................................................................ 113 Mountain Supply & Service, LLC............................................... 183 Ncsg Crane & Heavy Haul Services.............................................. 9 Neset Consulting............................................................................. 190 Netzsch Pumps North America, LLC......................................... 5 Noble Well Services...........................................................................91 North Dakota Petroleum Council................................................80 Northern Plains Rail Services...................................................... 157 Northern Technologies, Inc............................................................98 Noshok............................................................................................. 139 Novaspect / Emerson Process Management..........................67 Nuverra Environmental Solutions............................................ 105 Oilfield Improvements, Inc.............................................................41 Oreco......................................................................................................57 Pec Safety.............................................................................................34

Stephens Welding & Marine....................................................... 141 Sterling Hose, Reel & Supply, LLC............................................. 147 T&R Transport Oilfield Trucking & Water Services.............. 149 Taney Engineering.......................................................................... 198 TCI AEC...................................................................................................91 TCI Oilfiled Factoring........................................................................83 Texas Test Trucks.............................................................................. 171 Thawzall.............................................................................................. 177 The Modern Group (Dragon Products)..........................106, 107 Thermal Energy Products Inc........................................................72 Torqued Heat.................................................................................... 207 Towmaster......................................................................................... 140 Unit Liner Company....................................................................... 171 University of Mary..............................................................................97 Value Place Williston...................................................................... 179

Petroleum Technology Research Centre................................ 111

Veit USA.............................................................................................. 159

Platinum Grover International Int................................................51

Volant..............................................................................................74, 75


Wanzek Construction, Inc...............................................................89

Polyguard Products........................................................................ 179

Weir Minerals North America........................................................15

Pro Tank Products........................................................................... 130

Westcoast Resorts..............................................................................19

QMC Hydraulic Cranes.................................................................. 158


Quality Mat Company......................................................................95

Wood Group PSN............................................................................ 101

R&R Contracting.............................................................................. 135

Xylem, Inc..............................................................................................71



Encore Energy, Inc., a rapidly growing developer of oil and natural gas properties in Kentucky, is currently seeking an industry partner for horizontal New Albany Shale development. Encore has focused it efforts toward the aggressive acquisition of New Albany Shale acreage in south central and western Kentucky. The Company is currently drilling and developing a 30 – well shallow oil project in Kentucky and seeking a Bakken operator to participate in horizontal New Albany Shale projects.

Encore has strategically re-focused it efforts toward the development of New Albany Shale gas and liquids for the following reasons:

• Third-party report(s) estimate gas-inplace of 28 BCFGE per square mile with a company target EUR 0.75 – 1.50+ BCFGE per well.

• Encore Operating Kentucky, LLC has developed strategic business relationships with landowners, well services companies and and other industry experts.

• The projected horizontal AFE approximates ~$550,000 – 625,000 per well, potentially lower.

• Encore owns the rights to extensive geological and geophysical information regarding the New Albany Shale and other potential targets. • New Albany Shale acreage is extremely affordable as compared to similar plays across the US. 82.5 – 87.5% NRI delivered with attractive lease terms. • The liquids-rich New Albany shale reports high TOCs, 100 – 200’ formation thickness and significantly high liquids content.

• Encore owns exclusive rights to the wellbore, which provides what data from the only known core analysis in south central Kentucky. The Company is currently making plans to drill its first horizontal well in 2015. Encore has entered into a gas sales agreement to sell its natural gas directly to industry with a long-term midstream plan. There also exist the potential for new deeper and shallow oil discoveries.

For more information, please contact us at (270) 842-1242 or via E-mail at