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Bakken goes Hollywood: American's fascination with North Dakota boomtowns

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Message from the editor, Shayna Wiwierski 10 Message from the Governor of Montana, Steve Bullock 14 Economic growth tied to more than just the price of oil 16 Williston seeks entrepreneurs through video marketing campaign 20 Greater North Dakota Chamber advocates for pipelines 24

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5

Williston Basin is ready for reload 84 Multi-prong approach to preventing saltwater spills in the Bakken 86 Port of Vancouver USA: The route to success 88 Financial focus: Control your emotions in volatile markets 90 Digging in the dirt: Baranko Bros. augments environmental services in the Bakken 91 With oil success, there’s still a need 92

President David Langstaff Publisher Jason Stefanik Managing Editor Shayna Wiwierski Sales Manager Dayna Oulion Toll Free: 1.866.424.6398

Tioga, ND to host Enbridge’s Sandpiper Pipeline 26

Engineering firm integrating technology to streamline pipeline workflows 94

Keystone XL in temporary limbo following presidential veto 32

Performance products for productivity in hydraulic fracturing low-pressure systems 96

Advertising Account Executives Gladwyn Nickel Mic Paterson Anthony Romeo Gary Seamans Colin James Trakalo

Ozone rule may mean “no zone” for oil and gas development in the West 34

Using dissolved oxygen to remediate frack water 98

Cover photo courtesy of The Smithsonian Channel.

Changes to oil tax distribution formula: More money for local government 36

Competition: A necessary evil? 100

Production services provided by: S.G. Bennett Marketing Services

Oil-by-rail: When crisis strikes 40

Pro Tank Products surging ahead in the Bakken 102

Steady as she goes: City of Minot still going strong 48

Vapor recovery units comply with new EPA standards and increase profits 104

Infrastructure development catching up to growth in Williston 54 Dakota Prairie Refining gets in the diesel business 62 Behind the boom: Faces of the Bakken grace the small screen 64 Not all that glitters is gold: Black Gold Boom 66

Under pressure: Transmitter basics for application and selection 106

Layout/ Design Dana Jensen

Oil change: Adjusting with the economy 108

Advertising Art Sheri Kidd Joel Gunter

PEC Basic Intro to Pipeline: The only safety orientation for the pipeline industry 112 What does “sensor speed” mean and why is it an important aspect of gas monitors? 114 Is there a better option for your survey needs in the Bakken? 115

The FBI battles the dark side of the Bakken oil boom 70

Keeping the industry connected: Midwest Hose & Specialty 116

Fighting the good fight: Drug and alcohol use in the oilfields 72

Cold-weather girth weld coating application issues 118

BLM introduces new rule: Lawsuits ensue 74

Service cost reduction strategy 120

The new domestic war: A veteran’s fight for basic human needs 76 Small community with big opportunities: Devils Lake 78 Rail makes Midwest a new shipper of crude oil 80 Up close and personal: Testimonials of Salvation Army’s effectiveness 82 8


Art Director Kathy Cable

D&G Polyethylene Products 122 Eide Ford Diesel & Fleet Services offers expertise and experience to Bakken customers 124

© 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.

Larson Electronics LLC – Explosion-proof lights for hazardous locations 128 Six planning imperatives for oil and gas companies in volatile times 130 Index to Advertisers 132


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Message from the Editor Shayna Wiwierski The number-one question I get asked when it

Not only that, but America – and the world –

comes to the Bakken is always “Where do you

has been obsessed with taking a look at what

see the industry going? Do you think oil will

life is really like out here in North Dakota. As

rebound soon?” Well, as they say, what goes

we explore on page 64, Hollywood has come

up must always come down.

calling, and you may have come across one

Yes, the oil industry is currently lagging

of the many reality shows based on Bakken

behind what it’s done in previous years, but

life on your TV (perhaps a Real Housewives of

we’ve seen that all before. Everything goes

Williston is coming down the pipe next?).

through highs and lows. And, just because oil

So yes, dear reader, oil may be down, but the

may not be what it once was a year or so ago, that isn’t to say that the region isn’t bustling. Williston, North Dakota, the hub of oil activity in the Bakken region, is going through a surge of new activity in terms of economic growth. The city has recently completed a five-year assessment as they prepare for a population increase. As a result, there is lots of investment

region isn’t down and out, as you will find out in this issue of the Bakken Oil Report magazine. I truly hope you enjoy this edition, and make sure to check out us online at the, or come find us and say hello at many of the oil shows going on across the continent.

in the city, including a relocation of their

Yours truly,

airport, a new high school, a new wastewater

Shayna Wiwierski

treatment plant, and so much more. w

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Message from the Governor of Montana Steve Bullock



There is a little bird that is the topic of big discussions right now: the Greater Sage Grouse. This bird makes it home throughout much of the western United States, and has received a lot of attention because of recent discussions about the possibility of listing through the Endangered Species Act. Listing of this bird would take management out of the hands of Montana and put it into the hands of the feds. In Montana, we recognized that having this bird listed is not in the best interest of anyone. It could impact agriculture, recreation, and the ability to responsibly develop oil and gas and other natural resources in many parts of the region. And it would have huge negative impacts on local economies, as well as the economy of our entire state.

and its habitat. It recognizes the important

It is with this in mind that in the early months of my administration, I brought together representatives from the conservation community, agriculture, government, the oil and gas industry, as well as other resource industries, to propose a framework that would actively work to ensure management of the bird remains in state hands, while protecting habitat and ensuring continued development of our natural resources. For more than a year, these men and women put aside their political differences and focused on solutions for our state.

all walks of life and political backgrounds

The plan they proposed was the foundation of an executive order I issued last fall. It takes a science-based approach to protecting the bird

Made-in-Montana solution will be successful,

role that private landowners must play in sage grouse conservation. And it strikes the appropriate balance to preserve the sage grouse and its habitat, while protecting valid rights and existing land uses. At a time when discord and disagreement rule the day in Washington, D.C., here in Montana our legislators put aside their partisan backgrounds and recognized that taking the steps outlined in this plan were crucial to the economic future of our state and the well-being of the bird. Our efforts to stand up and fund an active sage grouse management program received bipartisan support in the legislature, and I signed it into law in May. The collaboration between Montanans from show that when we put aside past disagreements, and instead focus on common solutions for our state and region, we can tackle even the most monumental challenges. There is still a long road before us to ensure management of this bird remains in state hands. In the coming month, the federal government will notify states about their decision whether or not to list sage grouse. Even then, we know that the hard work of implementing the plan is just beginning. Ultimately though, I’m confident that this and the future of the greater sage grouse and our state’s economy will be better for it. w

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Economic growth tied to more than just the price of oil By Scott Meske, President, Williston Area Chamber of Commerce

The mainstream media is painting the oil price downturn as a ‘bust’ in our area of the country. Last year at this time my office received dozens of phone calls and emails asking about ‘boomtown’ and what’s really going on in Williston, North Dakota. Now we get calls – sometimes from the same news outlets –

downturn has slowed the pace of growth in the Bakken region, but looking at the rest of the story (tip my cap to Paul Harvey), this pause in the industry has given the local communities a chance to catch up, and prepare for continued economic expansion.

Peace Garden State? Nowhere.

The city recently completed a five-year assessment as they prepare for a population increase of about 15,000 over the next five to seven years. The price tag for all of the facilities, infrastructure, support and services comes in at $1 billion. That’s a lot of investment for any city, including Williston.

Economic growth in a regional economy usually has a major

Here’s a just a portion of what is happening in Williston alone:

industry or two that employs the most people, has the most

• Sloulin International Airport will be relocated – $240 million • Truck reliever route completion – $162 million (state funded) • Renaissance on Main multi-use development downtown – $20 million

asking about ‘the bust’ and what’s it like in Williston. After I slowly put down the phone and back away from the keyboard, I take a breath and just smile. Where else in the country has there been so much economic growth and activity than in our corner of the

businesses tied to it, and has staying power. In Western North Dakota, certainly the agriculture industry and energy industry dominate the labor markets. One can’t deny that the oil market 16


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The oil and gas industry is beholden to the world markets and adjusts accordingly. • Williston Main Street reconstruction completion – $15 million • New Williston High School – $50 million • New Williston wastewater treatment plant – $105 million • Continued investment in parks and recreation facilities

More than 2,000 new apartment units and hundreds of single-family homes are expected to be available by the end of 2015. We’ve opened six new restaurants since January, with several more planned. Retail development continues to provide options and quality of life improvements

for residents. According to Job Service ND, more than 1,700 open jobs are listed by Williston area employers. The need for professional services, medical professionals, attorneys, teachers, and financial services is still real. The oil and gas industry is beholden to the world markets and adjusts accordingly. Whether we will ever see oil selling for $110 per barrel again is anyone’s guess. From my point of view, way too many prognosticators give differing views on when (and if) things will return to the 2013-14 insane pace of growth, or when crude oil prices will reach more profitable levels. In the meantime, many local businesses and city officials are doing their level best to be ready when drilling activity does increase. There are some business decisions being delayed or modified until the industry picks up the pace a bit, there’s no doubt about that. The crush of people moving to Williston and Williams County has eased a bit, and employers are now able to hire and seek out quality employees with experience and credentials; people who want to live in Williston and not just work. That’s a key point as the region’s economy matures and we continue to transition from a boomtown into a hometown. As we move forward it is vital that government resources be properly allocated on quality of life, transportation, and infrastructure investments to

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Williston seeks entrepreneurs through video marketing campaign By Barbara Peterson

Cal Klewin, executive director of Theodore Roosevelt Expressway Association, is interviewed by The Creative Treatment’s owner Matt Fern. Shawn Wenko, executive director of Williston Economic Development.

A marketing campaign that sells the city

found a good paying job, or improved

of Williston as one of the most business-

their quality of life in the city.

friendly places in the U.S. is generating positive reviews.

“There is a lot of false information out there regarding Williston, its people and

Treatment, a Bismarck-based video production company. In addition to the trailers, WED is using social media, the Williston Wire and its website to promote

Williston Economic Development (WED)

their quality of life. I always say that the

launched its “Williston, the last great place

further you are from Williston, the taller

its vision and mission.

for opportunity!” tagline in 2015. The bold

the tale,” says Shawn Wenko, Williston

“Williston has been the fastest-growing

strategy aims to solidify WED’s position as

Economic Development executive

the development leader in western North

director. “I believe these videos put real

small city in the nation for the past four


people of this community in the spotlight

The series of video clips features all types of people who have bettered their lives in Williston. Each person explains in their own words how they started a business, 20


to tell their story. The more personal we can build our message, the more impact the videos will have on outside entities.” The videos were produced by The Creative

years. We have undergone a tremendous amount of growth,” says Wenko. The dust has settled and we have shifted from a boom to a business model. Williston is an emerging market that is ripe for business growth. The video imagery shows that

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Housing is catching up with demand; new restaurants and retail shops have opened; a new $76 million recreation center was built; infrastructure projects have been completed and a new high school is under construction.

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Williston is a real city with real people with a future that is exciting.” According to the U.S. Census Bureau, Williston’s population was 14,716 in 2010 compared to an estimated 31,000 today based on recent data from North Dakota State University (NDSU). The NDSU study also estimates an additional 15,000 people are living just outside of the city’s immediate area and utilizing services daily. “The city has a five-year master plan in place that prepares the community for what we may encounter in regards to population growth in the future,” says Wenko. “With this plan comes a $1 billion price tag for infrastructure development, including a new airport, roads, water system and wastewater treatment facility; everything we need to accommodate additional population growth to 50,000 people by 2020.” While Williston may not look like it did before the Bakken shale oil and gas boom, it is starting to feel more like a complete community again. Housing is catching up with demand; new restaurants and retail shops have opened; a new $76 million recreation center was built; infrastructure projects have been completed and a new high school is under construction. “Regardless of where we are today with oil prices, our studies still show Williston growing, maturing and settling in for a long period of sustainable economic development,” says Wenko. The “Williston, the last great place for opportunity” videos can be viewed on WED’s website at www. and their Facebook page at www.facebook. com/WillistonEconomicDevelopment.

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WED will continue rolling out its new videos via social media and its website over the next few weeks. In addition, The Creative Treatment is working on new videos that will be released later this year. w

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


Greater North Dakota Chamber advocates for pipelines By Andy Peterson, President & CEO, Greater North Dakota Chamber

The Greater North Dakota Chamber has been long interested in transportation. We're not experts in transportation per se, but we know enough to say that one cannot make a living without getting his or her goods or services to market without transporting it somehow. It’s within this transportation paradigm that we've been interested in the safe and efficient transport of crude oil to markets around the U.S. Like everyone else, we have seen the numerous trains loaded with oil pass through our communities to thirsty refineries around the country. We've also been interested in what those seemingly non-stop trainloads of oil do to rail "bandwidth”. This is especially concerning for manufactured goods and commodities produced in North Dakota. Of course, we want those commodities or manufactured goods shipped safely and efficiently to markets around the world. It’s to this end that we've recently testified at numerous pipeline hearings In North Dakota, Minnesota, and South Dakota. Specifically, we've made a push for the Sandpiper pipeline that will run across North Dakota and into Minnesota to hook up with a line that might carry crude to the Chicago markets. We've testified in favor of the Energy Transfer Pipeline that runs south through North Dakota and into South Dakota and Iowa, eventually carrying crude to refineries in the Gulf region, and we've testified in South Dakota and Montana in favor of the Keystone XL pipeline. We know rail now provides a method of moving oil and most likely will for some time. However, the most efficient and cost-effective method of oil transport is via pipeline. 24


Contrary to what most people might think, pipeline hearings are interesting. Some people come with the knowledge that our country runs on oil. They know oil supports agriculture, transportation, packaging, healthcare, and any industry one might remotely think about, and they know this will power our economy until some other acceptable and costeffective energy source emerges. These folks come prepared to testify in favor of energy transportation, knowing that challenges can be overcome. Others come with less expertise hoping to slow down the transport of oil or to stop it altogether. Mostly these folks testify to the evils of oil and how it is destroying the planet. It’s ironic, however, that those in opposition drive to the hearings like everybody else, some of them come from other states. A few landowners in each hearing plead their case before the regulators, whether they be in Minnesota, or in North or South Dakota. In these cases one begins to understand the effects of the rapidly

expanding energy industry. Overall, the complexities of the hearings assures the best final outcome and provides the person participating a front row seat. Hearings can be long, but one always comes away with a new and interesting tidbit, story, or knowledge of the oil industry. Whatever one’s viewpoint, we understand and appreciate the significant impact of the oil industry, the necessity of oil to our economy, and the jobs it provides our citizens, and its place in our society. We also understand the risks to environment and the importance of using energy wisely. At any rate, we understand that oil is here to stay and that we must transport it out of North Dakota to be used by those who need it. Lastly, you can count on the Greater North Dakota Chamber to stand up and be counted when it comes to the safe transportation of crude oil. w

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Tioga to host Enbridge’s Sandpiper Pipeline By Jillian Mitchell

Black gold can change a town forever – even more so when it's accompanied by the construction of a new pipeline. Tioga, ND, is poised to become a significant pipeline hub by 2017, serving as the start line of Enbridge's new Sandpiper Pipeline. The $2.6-billion project ($1.3 billion in MN, WI, and $1.3 billion in ND) interstate crude oil pipeline will span 600 miles from Enbridge's Beaver Lodge Station south of Tioga to Clearbrook, MN, and then onto an existing company terminal in Superior, WI, and is anticipated to move 225,000 barrels of oil per day, more than doubling current Enbridge pipeline exports in North Dakota. The little town that keeps getting bigger Tioga has experienced a population influx since 2010 – from an estimated 1,300 to today's conservative estimate of 2,500 – and projections show the numbers will continue to rise. "We're always excited to have new and different ways to employ people in Tioga and to bring new people to our area," says Melissa Koch, community development director for the City of Tioga. "The pipeline does both, in my opinion. We certainly look forward to housing workers on the pipeline and seeing some of that spinoff business and development in Tioga." Between 200 to 450 workers are anticipated to work on the Sandpiper Pipeline during peak construction of the two-year construction contract. Koch, who moved here with her fiancée, an oil-patch worker, stresses the importance of retaining workers and their families through infrastructure and commercial development. Currently, the city is working to expand its current wastewater treatment plant; the city's lagoon was recently redeveloped in 2014, while supplementary water infrastructure is on the books. Housing is naturally top of mind, with ongoing construction of multi-family housing and single-family homes. A fourth extendedstay hotel just reached completion (three have been constructed 26


Tioga, ND is poised to become a significant pipeline hub by 2017 thanks to Enbridge’s new Sandpiper Pipeline.

Additional developments, such as a new community center with an indoor track and pool, are expected over the coming years. Our grade school has doubled in the past few years, and you see quite a few young families walking on Main Street.

since 2012), and Koch reports a rise in RV parks, a popular housing option for individuals coming to the area on a work hitch. "We are already, in the city of Tioga, playing catch-up to the 2012 oil play, and so as the Sandpiper Pipeline moves forward, it presents the same infrastructure needs we've needed for the past couple of years," Koch adds. Additional developments, such as a new community center with an indoor track and pool, are expected over the coming years. "Statistics show that the majority of people who have moved here to work within the oil play intend on leaving in five years – and we have to ask ourselves why, and how do we get them to stay?" shares Koch. "Our grade school has doubled in the past few years, and you see quite a few young families walking on Main Street. Part of my job is to give those wives and girlfriends a reason to move here." Moving forward Enbridge confirms that the new pipeline is on track for a 2017 completion, pending permits, and will proceed despite fluctuating oil prices. "Wells in the Bakken region will continue to produce crude oil for many years to come. As long as there is commodity in the region that needs to be moved, the need for pipeline infrastructure, like Sandpiper, will be in existence," says Katie Haarsager, ND community relations advisor, U.S. Public Affairs Liquids Operations, Enbridge. Actual construction of the mainline system will be broken down into segments and constructed simultaneously, while work on the stations and tanks will occur as needed. "While the permitting process has taken longer than anticipated we have been very grateful to those who have supported the project and the quality of life that petroleum products are able to provide," the Enbridge rep affirms. “We have worked hard throughout the development process to work in feedback from landowners, community members, our regulators, as well as many others." w 28


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Keystone XL in temporary limbo following presidential veto By Leonard Melman In one of the most impressive examples of lengthy delays brought about by both government and special interest, after seven years of hearings, inquiries and debate, the proposed Keystone XL pipeline remains 'on hold' and facing indefinite prospects. The proposed pipeline has been designed to move Canadian petroleum through the central U.S. and eventually down to major refining facilities located on the American Gulf Coast. The project could be of vital interest to the Canadian provinces of British Columbia, Alberta, Saskatchewan, and

Manitoba where intense exploration and development efforts relating to both 'natural' petroleum deposits and those associated with oil sands developments are ongoing. However, the great problem the industry now faces is transporting abundant production from Western Canada to major refinery facilities and markets in the U.S.A. and perhaps beyond. Keystone XL is actually only one part of the "Keystone Pipeline System" with three phases already carrying crude oil from Alberta. The Keystone XL pipeline – Phase 4 of the total system – will be an entirely

new pipeline from Hardisty, Alberta directly to Steele City, located in southernmost Nebraska. It is the Nebraska portion which lies at the heart of a major environmental controversy relating to Nebraska's and neighboring states fresh water supplies. Powerful interests are supporting opposite sides of the controversy. To a large extent, forces opposed to the construction of Keystone XL are funded by billionaire Tom Steyer, founder and former chairman of Farallon Capital Management. Steyer has stated that he was dedicating himself to tackling energy and climate issues.


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Meanwhile, Charles and David Koch, chairman and executive vice president of giant Koch Industries, have consistently promoted Keystone XL on the basis of the huge potential economic and job-creation benefits which could accrue upon its construction and successful completion. Political influence has played an important part in the overall debates regarding the project. Generally, those on the political Left, apparently including President Obama, are fervently opposed to the project on environmental grounds. On the opposite side, those favoring the project point toward two significant considerations. First, there are the direct economic benefits, which would specifically include construction employment and permanent operational job creation, which would be distributed throughout the economy. Second, successful completion of the pipeline would further diminish America's dependence upon foreign oil from unreliable sources. Since the Keystone XL pipeline originates in Canada but passes through U.S. territory, relations between Canada and the USA are also involved and therefore, the issue comes under the scrutiny of America's secretary of state, formerly current Democratic presidential candidate Hillary Clinton, and presently John Kerry. Throughout late 2014 and into 2015, the conflict entered the U.S. Congress with President Obama leading the opposition while the Congressional Republican leadership stood steadfast in favor. Two major developments then took place in early 2015. First, despite advance warnings of a presidential veto, in late February the Republican-led Congress passed a bill entitled "Keystone XL Pipeline Approval Act". Next, as promised, the president vetoed the legislation and the Republicans were unable to muster sufficient votes to over-ride the veto. While the project presently remains in some form of political 'limbo', it still commands attention. For example, Warren

Buffet, known as the "Sage of Omaha" and a frequent supporter of the president, came out in direct opposition, saying he would have approved the project. Democratic 'left-wing' flag bearer, Senator Sanders of Vermont criticized Hillary Clinton for not being a sufficiently committed environmentalist on the XL project while Republicans of all stripes continue to campaign for its approval.

overhang is having a negative influence

In the meantime, the oil which might have been transported via the Keystone XL pipeline continues to pile up in storage facilities in Alberta and this supply

Many partisans on both sides of the


on the economies of Alberta and B.C. by rendering many borderline projects unprofitable and the diminished ability to move end petroleum production to end markets has discouraged further exploration and discovery efforts, thereby driving business away from drillers, suppliers, etc.

Keystone XL debate continue to monitor developments closely. This story is a long way from its conclusion. w


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Ozone rule may mean "no zone" for oil and gas development in the West By Michael Sandoval

Natural gas has been described as the “building block” of the Obama administration’s Clean Power Plan (CPP) to move the nation from coal-based electricity towards renewables in the coming years. However, this natural resource bridge faces endangerment by the next Environmental Protection Agency rule: the new ground-level ozone regulation. EPA administrator Gina McCarthy has endorsed natural gas as the “game changer” for the CPP. But recent examinations of the efforts to promote fuel switching from coal to natural gas in the context of the ozone rule demonstrate two serious concerns. It not only undermines the direct economic growth of billions of dollars of private investment and thousands of jobs created, but also upends communities across the West that depend on that

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natural resource development for severance and property tax revenue due to “nonattainment”. A complicated scenario North American “background ozone” is a product of naturally occurring volatile organic compounds, global methane production, international emissions, and western wildfires. The EPA’s own research shows that many areas in the Rocky Mountain interior – from Arizona and New Mexico to Colorado and Wyoming – demonstrate elevated background levels that place those areas closer to nonattainment before a single human activity that contributes to ground-level ozone has occurred. Practically, it means that areas like the Grand Canyon National Park in Arizona and the Rocky Mountain National Park in Colorado would frequently be in nonattainment, not due to heavy industry or widespread oil and gas development, but simply due to background ozone levels. A 2015 National Association of Manufacturers (NAM) study showed that at the proposed rule’s less stringent 70 parts per billion level (down from 75 ppb), 43 of Colorado’s 64 counties would be out of compliance. That level rises to 56 counties at the more restrictive 65 ppb level – with nonattainment areas seeing a “significant curtailment of natural gas production”, and energy production in general, in order to comply with the ozone rule. The Institute for Energy Research noted the threat that the ozone rule placed on natural gas development in Colorado. “Most of Colorado’s natural gas output, for instance, is concentrated in the northern Front Range, much of which NAM expects to receive a nonattainment designation under a 65 ppb ozone standard.” IER concluded, “That could jeopardize Colorado’s thriving energy industry, whose dramatic growth has made the state the sixth-largest natural gas producer.” The Case of Weld County Weld County sits in the Denver Basin, cranking out 85 percent of Colorado’s 2014 oil production of 91 million barrels. Approximately 64 percent of the county’s assessed property value, $5.7 billion, is derived from oil and gas production,


according to the Denver Business Journal. But even before the new ground-level ozone rule is instituted, the county faces stark reductions in property and severance tax revenue due to recent volatility in prices. Property taxes fell $47 million between 2016 and 2017, and the county’s share of state severance tax revenue will halve just next year, Weld County finance director Don Warden told the DBJ.

investment and jobs in the region, as well as the property and

In 2015, $20 million of the state’s severance tax fund was moved for state budget purposes, and with Weld County among the largest recipients, the effects were expected to be particularly onerous for the county. Half of the state’s severance taxes go to energy-impacted communities, for everything from infrastructure enhancement due to energy development and impact mitigation, to recreation centers and fire stations in the county’s several municipalities.

background ozone levels. Setting a new, arbitrary goal of 65 to

With price volatility affecting production, and state severance taxes being used to backfill state budget contingencies, Weld County certainly has cause for concern. However, the prospect of facing little to no additional development of oil and gas in the near future due to the realities of compliance with the proposed 65 to 70 ppb ground-level ozone threatens continued private

severance taxes the county’s municipalities, residents, and school children rely upon to maintain a rich, growing economy. Colorado Department of Public Health and Environment Air Pollution Control Division director Will Allison explained in a recent interview what he described as the “confounding factors we have in the West and in areas at altitude,” including 70 ppb would be, as Allison said, “particularly challenging in the West.” The standard is particularly challenging not only for state regulators and federal agencies, but most especially for the local communities finding themselves in nonattainment. In areas where oil and gas production contribute to those prospective violations – areas like Weld County, most of Colorado and a large portion of the interior – the choices for mitigation in order to reach attainment will be clear. And costly. Michael Sandoval is an energy policy analyst and investigative reporter for the Independence Institute, a free-market think tank based in Denver, Colorado. w

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Changes to oil tax distribution formula:

More money for local government By Melanie Franner

Kathryn Strombeck, director of research and communications, North Dakota Office of State Tax Commissioner. “In the end, the 30/70 proposal that was enacted was a great compromise piece of legislation.”

Mayor of Williston, Howard Klug.

North Dakota Governor Jack Dalrymple.

North Dakota Tax Commissioner Ryan Rauschenberger.

The 30/70 percent split of the oil tax revenue to the local government versus state may not have turned out to be exactly what oil-patch communities were looking for, but it’s a step – at least – in the right direction. The North Dakota State Legislature endorsed the formula change (from the 25/75 percent that it was during the last two years) in April 2015. Big expectations “The drastic drop in oil prices between the summer of 2014 and January 2015 when the legislature convened meant a complete re-examination and prioritizing of all state spending,” says

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According to Strombeck, the new funding formula will affect all of the state’s major oil-producing counties, along with the cities, schools and townships located within them. Additionally, for the first time, the legislature also identified hub cities outside the oil patch – those with populations greater than 12,500 and with more than one percent of their employment base working in the oil and gas industry – and provided them with direct funding from gross production tax as well. One of the larger communities in the oil patch, with a population of around 36,000, is the city of Williston. And Williston’s Mayor Howard Klug isn’t too pleased with the final formula. “The 30/70 split was not what Williston was looking for,” he states. “I think it could have come a lot closer to the 60/40 split in our favor that was being proposed by Governor Jack Dalrymple. We need that kind of money for at least the next 10 years or so in order to catch up.” That being said, Mayor Klug was very pleased with the $1.1 billion, one-time emergency funding known as the “Surge Bill” that was also passed in the same session and was signed into law. “The amount of money in the Surge Bill was huge,” states Mayor Klug. “It was unprecedented. I don’t think we will ever see that kind of upfront money again.” According to the mayor, the Surge money will bring about $64 million into Williston’s coffers. But as significant as this is, it isn’t enough. “The projects that we currently have ‘shovel-ready’ amount to $120 million,” he says. “There’s a big shortfall in between. To clear the books, we’re going to need about $1 billion by the year 2020


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Imminent changes

have funded the additional needs

The North Dakota Office of State

through the formula, thereby keeping

Mayor Klug suggests that the population

Tax Commissioner’s Strombeck

the burden off of local property

of Williston will grow to between 60,000

acknowledges that the new

taxpayers – but they certainly

to 70,000 during the next five years.

distribution formula may fall short of

understand the impact low oil prices

The $220 million anticipated to be the

the expectations of some community

have on state revenues.”

combined result of the surge money and

leaders, but refers to lower oil prices as

the new oil tax distribution formula falls

being the main reason behind the new

In the meantime, Williston Mayor Klug

well short of the mayor’s needs.


is trying to juggle the costs inherent in

“Give me 10 years of fully funded money

“I think impacted communities and

so I can plan for the future and then we

their leaders are grateful for the

can be ready for anything they throw at

funding increase,” she says. “Many

$240 million airport – the old one was

us,” he says.

would have liked to receive more – to

built to handle 10,000 people per year

– for road, sewer, water, personnel, new facilities and equipment, etc.”

major infrastructure projects. There’s the city’s $60 million share of the new

and is busting at the seams trying to handle 12,000 people each month. There’s the $105 million needed for the new wastewater treatment plant. And there’s the significant shortage

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Mayor Klug isn’t content to let the issue rest. “We’re going to come up with a plan,” he says. “We have two years with this formula. Somewhere during that period, we’re going to see oil prices rise. And that’s when we’re going to go back to the legislature and tell them that they were too cautious with their numbers and that they need to take another look at the formula.” w

A DOT inspector taking a crude oil sample to confirm proper hazardous materials classification. Photo courtesy of the DOT.

Oil-by-rail: when crisis strikes Industry stays proactive in the face of derailments By Jillian Mitchell As North American oil production continues to outpace pipeline capacity, shipment by rail is increasingly common. Today, an estimated two-thirds of North Dakota's crude oil is transported by rail. It's a big business, with accordingly, big responsibilities. And when incidents happen en route, safety protocols and concerns are brought into focus – and with a little diligence, so too are the associated solutions. When things go off track Nearly 493,126 tankers of crude moved through North America last year, up from just 9,500 in 2008. And while the overall rate of oil train accidents remains low – stats indicate that 99.9 percent of crude shipments reach their destination safely 40


– industry recognizes there's still more to be done. Case in point, the BNSF Railway Co. derailment near Heimdal this May marked 2015's fifth oil-by-rail derailment in Canada/U.S. The Hess Corp.-owned train heading eastbound experienced a derailment of six of its total 109 tank cars (107 loaded with crude oil and two buffer cars loaded with sand). A fire broke out in the derailed cars, while all other cars were pulled away from the scene. BNSF crews and local emergency personnel were quick to respond. A command center was set up near scorched wheat fields adjacent to the train tracks, and crews erected berms to protect nearby wetlands from the blaze. BNSF HAZMAT responders with assistance

from local fire fighters extinguished the fires. A total 40 residents were evacuated from the nearby town of Heimdal. No deaths or injuries were reported. What happened? Though the Heimdal incident is still under investigation, there is speculation surrounding the train's model of tanks cars – the unjacketed CPC-1232 models (a model publicly touted by CEO William Furman of railcar manufacturer Greenbrier Companies to be "as dangerous as older cars if they derail and ignite, causing a ripple effect of fire and explosions"). Concerns surrounding this particular model are not new to industry. In May, Transport Canada and the U.S. Department of Transportation announced

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new regulations to improve the safety of volatile shipments, which included phasing out older tank cars, such as the CPC-1232s. The new regulations also involved the addition of electronic braking systems and enforcing speed limits. The development and adoption of a more fortified railcar (the TC-117, as one example), with thicker steel, head

shields and protected valves and fittings, is another goal for the plan aimed at reducing the frequency and severity of oil train crashes by 2020. BNSF, a public supporter of the new regulations, released the following statement after the regulations announcement in early-May: "BNSF has advocated for a safer tank car in the

movement of crude oil, and finally setting a new federal standard will get the nextgeneration tank car into service and substantially reduce the risk of a release in the event of an incident." Though BNSF has since retracted its request for proposal for 5,000 nextgeneration tank cars, it continues to support the new regulation. In a customer

Oil-by-rail: A Q&A with PHMSA1 About two-thirds of all North Dakota oil produced is shipped by rail. Why do you suppose rail is a top choice? Is it because of safety reasons? Cost efficiency?

the notification. In May, DOT announced that it will make the notification requirements of the Emergency Order permanent.

DOT spokesperson: The United States is in the midst of an unprecedented increase in domestic energy production. Moving hazardous materials by rail, including crude oil, is not new and the vast majority of rail shipments are safely delivered. What is new is that petroleum crude oil and ethanol are being shipped in larger quantities, over greater distances. DOT is committed to ensuring that crude oil is transported safely and reliably, regardless of the mode of transportation.

DOT also recently launched the web-accessible Transportation Rail Incident Preparedness and Response (TRIPR) training for emergency responders, and awards more than $21 million in grants on an annual basis through PHMSA’s Hazardous Materials Emergency Preparedness (HMEP) grant program to states, territories, and tribes to carryout hazardous materials planning and training activities. Also in 2015, PHMSA will award our Assistance for Local Emergency Response Training (ALERT) grant to support hazardous materials training for volunteer emergency responders in rural areas.

What are the top safety considerations when transporting oil by rail? Safety is our top priority and DOT has taken more than a dozen actions to minimize risk and strengthen the safe transport of crude oil by rail, including a comprehensive rulemaking and multiple safety advisories and emergency orders. The Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Train rule was finalized earlier this year, and it raises the bar on the safety of transporting crude oil by rail. The rule requires stronger tank cars and 21st century electronically controlled pneumatic (ECP) brakes that activate simultaneously on all tank cars, proven technology that reduces the distance and time needed for a train to stop and keeps more tank cars on the track if a train does derail. DOT is committed to making certain that emergency responders have the information they need to prepare for and respond to incidents involving hazardous materials, including crude oil. In May 2014, DOT issued an Emergency Order that directed railroads to notify State Emergency Response Commissions (SERCs) and Tribal Emergency Response Commissions (TERCs) of the expected movement of Bakken crude oil trains through individual states and tribal regions. Trains with a million gallons or more of Bakken crude oil – approximately 35 tank cars – are subject to



Earlier this year, Transport Canada and the U.S. Department of Transportation announced new reforms to improve safety of volatile shipments. Could you elaborate on these new reforms? The Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Train rule was developed in coordination with Canada and focuses on safety improvements that prevent accidents, mitigate consequences in the event of an accident and support emergency response. Our close collaboration with Canada on new tank car standards is recognition that the trains moving unprecedented amounts of crude by rail are not U.S. or Canadian tank cars – they are part of a North American fleet and a shared safety challenge. Data supporting the Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains final rulemaking can be found in the Final Regulatory Impact Analysis for this rulemaking available here:!documentDetail;D=PHM SA-2012-0082-3442. footnote: 1 The US Department of Transportation's Pipeline and Hazardous Materials Safety Administration.


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The new DOT-117 tank car standards. Image courtesy of the DOT.

letter earlier this year, the railway confirmed its stance that DOT-111 tank cars and unmodified CPC-1232 tank cars should be removed from BNSF shale crude service in one year and three years, respectively. The company also stated that it intends "to work with our customers to transition the next generation or appropriately retrofit tank cars into shale crude service as soon as is practicable." At this time, BNSF reports that it has a broad-based, multi-level risk reduction program, which includes prevention, mitigation and response, to reduce incident risk on the railroad and is designed to ensure that all commodities are handled in a safe and damage-free manner. The company inspects tracks and bridges more often than required by the Federal Railroad Administration (FRA) with most BNSF key routes inspected four times weekly; the busiest inspected daily. BNSF performs geometry car inspections at least two times on crude oil routes annually. 44


On the right track Though the Heimdal derailment wasn’t prevented, its impact was mitigated – and for a few very important factors. The removal of select flammable gasses from crude oil, for instance, as required by the state of North Dakota, prevented the fire from escalating to an explosion. Reports confirm that the oil on the Heimdal train was tested at 10.83 psi, about 21 percent lower than the maximum allowed under the state’s new rules. Secondly, North Dakota’s first responders were prepared to deal with the incident, thanks to the training they received after the Casselton derailment of December 2013. (An oil train collided with a derailed train near Casselton, spilling 400,000 gallons of crude and resulting in a fire. An estimated 2,400 residents were evacuated; no injuries or deaths were reported.)

Lastly, the 2015 oil-by-rail regulations were in full effect, short of the new tank cars, thus preventing further disaster. Cecily Fong of the North Dakota Department of Emergency Services (NDDES) illustrates the following example. "When you compare the Heimdal incident to the Casselton incident, the big difference you saw was Heimdal was after the new conditioning rules were in place. The Casselton derailment was fire and explosion; the Heimdal incident was just fire," says the NDDES public information officer. "State government officials see the conditioning rules put into place as a success because they were able to avoid the explosion as a result." The big picture Research on rail accidents has found human error to be a leading cause (i.e. speed, fatigue), while cold weather presents special considerations when the ground opens up in spring (i.e. shifts

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tracks, rails snap, wheels shatter). The new regulations, as well as existing safety standards and protocol, continue to address and monitor these factors.

spots on crude-by-rail shipments.

Editor’s note:

Of course, there is no one-solution-fits-all,

On July 16, 2015, a train derailed east

but Fong concurs that industry is on the

of Culbertson, Montana, spilling 35,000

right track. "Obviously we could avoid

gallons of crude oil and forcing the

And thanks to industry's continued diligence, incidents like the Lac-Mégantic, Quebec, derailment in July 2013 – the fourth-deadliest rail accident in Canadian history – are few and far between. (The incident involved an unattended 74car freight train carrying Bakken crude oil that rolled downhill and derailed, resulting in fire and explosions, a total 47 deaths, and the desecration of the town's business district.) The incident has since been attributed to a variety of causes: a neglected defective locomotive, maintenance issues, driver error, flawed operating procedures, regulatory oversight, and lack of safety redundancy.

derailments if we were using pipelines,"

evacuation of 30 people. About 20 cars on

Fong concludes, "but if the track is up

the Berkshire-Hathaway-owned BNSF crude

to snuff, if speeds when going across

oil train went off the rails; there was no fire

crossings are lowered [we can avoid

and no injuries reported. The spilled crude


did not reach any waterways. w

With each incident, industry learns and grows with the common goal of safety. Accordingly, high on the priority list is the development of patented new technologies, such as sensors, aimed to proactively warn of defects and trouble



A DOT inspector in the background at the recent tank car derailment in Culbertson, MT. Image courtesy of the DOT.




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Steady as she goes:

City of Minot still going strong By Melanie Franner

Things may have slowed down a bit in the Bakken, but the city of Minot – population 50,000+ – is still dealing with the after-effects of a prolonged growth spurt. “It’s been steady; we haven’t seen a big decline,” states Stephanie Hoffart, president and CEO, Minot Area Development Corporation (MADC). “Even though it’s a bit slow in the oilfields right now, everything in Minot is business as usual.” Hoffart concedes that people may be a little less busy or a little less hurried than they have been in the past, but she believes the current spell is providing a bit of much-needed relief, as well as an opportunity to catch up on infrastructure and housing. “We still have stability for the workforce,” she says. “The workload may have leveled off and workers may not be putting in the crazy overtime, but they are still working for good companies that have good benefits and pay.” The Halliburton effect Of course, the city is dealing with the recent closure of the Halliburton facility on 72nd Street. The facility has been a fixture in the city since it broke ground in March 2010 through its close in April 2015. “The company’s Artificial Lift facility on Broadway remains open,” states Susie McMichael, senior public relations representative, 48


Halliburton. “Artificial Lift is one of the 13 product service lines of Halliburton.” Although McMichael did not release specific numbers, she did say that the majority of employees at the facility were transferred to either Williston or Dickinson. General opinion puts the number of employees at the facility at about 150. “Halliburton adapts to market conditions and activity levels of its customers,” says McMichael, in answer to whether the facility may re-open in the future. “It will depend on our customers’ business needs at the time.” MADC’s Hoffart remains optimistic that the plant will re-open. “My understanding is that they aren’t selling the building,” she says. “We felt that there were probably going to be some changes, with the whole Baker Hughes acquisition. We expected a bit of a slow down as a result, so I don’t think the community was completely shocked when the news finally came. In Halliburton’s announcement, they said they were suspending operations, which is encouraging because projections indicate oil prices will move back to a more stable price within the next year.” Playing catch up The recent slow down in the oil patch – and in Minot – has had some “calming” effect in the area. According to the MADC’s

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Year-to-Date Economic Indicators, the unemployment rate (in Ward County) was 4.4 percent on April 15th of this year. This compares to 2.7 percent and 2.8 percent for 2014 and 2013 respectively. Cost of living has decreased in the interim as well, with housing, groceries and transportation prices all having dropped. According to a local property management firm in Minot, the recent slow down has been countered, in part, by the continued presence of the Minot Air Force Base. The base is home to two major wings: the 5th Bomb Wing and the 91st Missile Wing. “This time last year, we had no vacancies,” says the firm. “The property owners like to see the vacancy rate at about five percent. I would say that we’re a bit higher than that today.” Rent prices have all seen a decline. According to the property management firm, one-bedroom apartments are near the $995 price range, as opposed to the $1,595 experienced during the boom period. Similarly, two-bedroom apartments can be had for $1,095 versus the $1,900 they were going for a year ago. “We have to think of this as the new normal,” states MADC’s Hoffart. “Oil prices may not go as high as they have been, at least not in the near term. We’re coming back to the new normal, where quality of life is important and family is important. I think Minot continues to provide a good quality of life. For the most part, the people rooted in this community have not left and have no intentions of leaving.” Positive climate Despite the economic slow down, the city of Minot remains pumped for growth. 50


“We are quite confident of the business climate here,” says Hoffart. “Companies still have a lot more work than they do employees to do the work. I think the higher unemployment rate is good in that it provides a bit of opportunity for people to move up the chain or get a bit of mobility. The people moving into the community can still find good jobs.” According to Hoffart, the MADC is committed to “growing and diversifying” the economy. “It’s important to remember that in addition to oil, Minot has a significant presence in the value-added agriculture industry,” says Hoffart, who speaks to the expansion underway at the Port of North Dakota. The port is strategically located in Minot at the intersection of two Class-1 railroads and three U.S. highways. The expansion includes 3,000+ acres – or six square miles – of rail-served and non-railserved development. The port expansion includes 45 miles of new track for rail service, city services, indoor storage, and shovel-ready land. MADC owns 800 acres within the port expansion and is in the process of building out the first 150 acres. “Businesses can start breaking ground on the first 150 acres of property in the spring of 2016,” states Hoffart, who adds that the MADC has received a lot of interest to date. “AGT Foods has committed to a $30-million expansion of its Food Ingredient Production Facility. The company will be our anchor tenant in the port expansion lands, with a potential of adding 41 acres to its existing facility. The expansion will double the capacity of its facility and create 35 additional jobs.”

Minot Area Development Corporation’s CEO Stephanie Hoffart.

Ripe with opportunity The city of Minot will continue to be known as an important hub in the Bakken oilfields. But the MADC is also working hard to grow its already significant presence in the agricultural industry, as well as growing within the knowledge-based business sector and manufacturing/warehousing industry. “The MADC has identified these four sectors as key for our economy moving forward,” concludes Hoffart. “Minot is a cost-efficient and cost-effective business location. The community and local government are pro-business and offer needed resources, business counseling, and innovative financing opportunities. And we have the numbers to show how Minot can reduce the cost of doing business by anywhere from 35 to 60 percent, depending on the type of industry. We’re the perfect choice for potential businesses, whether they be oil-based or not.” w

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Ribbon cutting of the 18th Street Underpass/US Highway 2 Overpass. By Amanda Lefley The sole proprietor behind the city of Williston’s influx in development over the past five years is the oil boom in the Bakken formation. While the area’s growth has slowed for the time being, executive director at the Williston Economic Development Office Shawn Wenko doesn’t expect the area’s spark to dwindle any time soon. “With this current slowdown it is giving the city a chance to catch its breath a little bit,” explained Wenko. “We’re five years behind the game in infrastructure developments… We have not seen the dramatic slowdown with which some of the outside media outlets are talking about.” Williston is the hub of activity in the Bakken region. The current population of 31,000 is a huge jump from the 12,000 within city limits just five years previous. In fact, Williston has been the fastest-growing micropolitan in the nation the last four consecutive years. The tremendous amount of growth has seen the city triple in size. And, by 2020 the city is anticipating to service 50,000 people, which is why they have implemented a five-year growth plan of $1 billion in infrastructure. “It is a supply and demand factor,” Wenko commented. “Obviously with that many people coming to the area you’re going to need housing. That is reflecting the housing development that you’re 54


seeing… At the same time, with that comes the need for goods and services... It just comes back to the intense amount of growth that we saw these past couple years. We have to somehow figure out how to address that growth.” What $1 billion gets Williston The five-year plan includes $120 million in road infrastructure, a new wastewater treatment facility, a new water treatment facility, and a new fire station, to name a few projects. “Everything that makes a city go round, that is what we’re going to be developing,” said Wenko. The city is in the midst of relocating the Sloulin Field International Airport. The current airport sits on 800 acres, whereas the new facility will be situated on more than 1,500 acres. This will allow larger planes and more flights daily. The city is also working on a public-private partnership with the CARDON Development Group to rehab the land once the airport is decommissioned. City amenities Other city services are also affected. “Your calls for service have gone up significantly, and really that is in relation to the increase in population,” explained Wenko.

Photos courtesy of Williston Economic Development Office.

Infrastructure development catching up to growth in Williston




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Crime has increased, which has resulted in the opening of an FBI office, an enlargement of the city’s police force and in the Sheriff’s office. Wenko explained the city has implemented a one-cent sales tax in partnership with Williams County, which was voted in by the taxpayers, called the Public Safety Tax. This translates into the expansion of the current jail, the building of a new fire station, as well as new equipment for emergency responders. “We’re going to have top-quality fire and medical response systems here as a result of that tax,” said Wenko.

Construction of the Renaissance on Main, a new mixed-use development in downtown Williston. The building will house retail, office and residential. Construction was set to be completed in September 2015.

Currently under construction is a $56 million high school that will help ease the growing pains seen in the city’s public school sector, he said. He also explained the $72 million recreational facility completed last year is one of the largest of its kind in the Midwest. The building houses an indoor water park, a wave pool, a full-sized lap pool, tennis and basketball courts, batting cages, golf simulator, infield turf, workout facilities, in addition to meeting rooms. “It has everything you can think of when it comes to parks and recreation,” said Wenko. The private sector reacts

The citizens of Williston have been excited for the opening of home improvement chain Menards, which is scheduled to open in fall 2015.

“In addition to the tremendous amount of growth in the oil and gas industry, the city has grown so much that the demand for goods and services in other sectors has grown as well,” Wenko said. Williston is starting to attract a restaurant and retail base. Alongside housing developments the private sector has reacted. Williston has seen approximately 20 new restaurants open, in addition to big box retail stores. Sportsman’s Warehouse opened July 3, while Menards has yet to announce their opening.

Culver’s, the Wisconsin-based restaurant chain, opened its fourth North Dakota location in Williston in February 2015. 56


“There is still a huge need for restaurant and retail, and that is coming along. It is probably coming along slower than what I would like, but I think eventually it is going to take care of itself,” said Wenko.

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Sportsman’s Warehouse, located in the Sand Creek Shopping Center, is the first location in North Dakota and the seventh store announced for 2015. There are also several rail yards in the area that, alike the city, are expanding. Wenko explained this industry helps the city move goods and services in and out of the community. One of those companies is Red River Oilfield Services, which has been operating in the Williston area for 38 years. VP of business development Curtis Shuck explained their yard at Stony Creek, which opened in 2012, had 3,400 rail carloads last year. He said that yard is

tracking to have 6,000 by the end of this year.

Overall, with the mass amount of growth

“We’re diversifying our operations from not only oil and gas, but a bunch of industrial products,” said Shuck.

seeing, comes jobs and economic vitality.

The rail yard expansion currently has approximately five miles of track in the yard today, with the project starting this past spring. The plan is to double that in size, by commencing with the master plan later this year, said Shuck.

and for them to hire employees,” said

and development the city of Williston is Shuck explained it as the multiplier effect. “It allows other businesses to locate here Shuck. “It is not just about Red River and what our impact on the economy is, it’s what we allow other businesses to do… Good, stable, long-term employment. That is what we’re all about.” w

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A Fitterer Oil truck pulls into the terminal at Dakota Prairie Refining to fill the first load of diesel to leave the refinery.

Dakota Prairie Refining gets in the diesel business A gray and red Kenworth spent about half an hour parked at the terminal at Dakota Prairie Refining on May 15. When the truck rolled out of the gates of the refinery southwest of Dickinson, North Dakota, it signified a big change for the facility: It was the first truck to leave there without an empty tanker following behind the cab.

Refining. “It’s a diesel-topping refinery,

The Fitterer Oil Company truck pulled a tanker with 7,500 gallons of diesel fuel onboard. And that load meant Dakota Prairie Refining officially had entered the business of selling diesel fuel.

operation a little over two years later.

“This is what it’s about,” said Jeff Rust, vice president of operations, WBI Energy, an MDU Resources company. Rust previously served as project director at Bilfinger Westcon and was the lead project director for the construction of Dakota Prairie 62


and once diesel hits the market, we’ve accomplished our goal.” On March 26, 2013, WBI Energy and Calumet Specialty Products Partners broke ground on what would become the first greenfield refinery built in the United States since 1976. The approximately $425-million facility went into commercial “To actually have diesel leave the plant is significant to WBI Energy, and it’s going to be significant to MDU Resources,” said Tim Michelsen, vice president of administration at WBI Energy. Pipelines and tanker trucks bring 20,000 barrels per day of Bakken crude oil into Dakota Prairie Refining. Every day, the facility turns the oil into 7,000 barrels of

diesel fuel, 6,500 barrels of naphtha, 6,000 barrels of atmospheric bottoms, and 300 barrels of natural gas liquids. The need for the diesel produced at the facility is obvious: In 2014, North Dakota used more than 70,000 barrels per day of diesel, and about 70 percent of the supply was imported into the state. The diesel demand has increased in the past decade, along with oil production in the western part of the state, leading to supply shortages that have hindered oil production and North Dakota’s agriculture industry. Chris Fitterer co-owns Fitterer Oil Company of New England, North Dakota, with his two brothers. His company purchased the first tanker of diesel from Dakota Prairie Refining, and he sees the facility as a “stepping stone” for western

Pipelines and tanker trucks bring 20,000 barrels per day of Bakken crude oil into Dakota Prairie Refining.

North Dakota because of the jobs it has created, as well as the new supply of diesel. “We’ve been waiting for this refinery to open to alleviate a lot of the shortages of diesel fuel in the area, and knowing this refinery is here, now we won’t … see any shortages in western North Dakota,” Fitterer said.

Diesel flows from the Dakota Prairie Refining terminal into a tanker.

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James Richard, Dakota Prairie Refining’s terminal supervisor, said getting the facility to the point where diesel is going out has been “a team event”.

“We’ve learned a lot to get to this point, but you’re going to learn a lot more once you’re operational and you actually have product going to our customers,” Michelsen said. He said the facility has been communicating with approximately 15 wholesale diesel customers in North Dakota, as well as customers for the refinery’s other products. The diesel customers have been anxious for the beginning of sales from Dakota Prairie Refining because of the proximity of the supply compared to most of their sources. “It’s a great fit for our customers, less transportation costs, so it’s better for them and should be good for us as well,” Michelsen said. w

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Behind the boom

Photo courtesy of the Smithsonian Channel.

Faces of the Bakken grace the small screen By Jillian Mitchell For hazmat driver and father-of-two Ben Moorhead, the workday starts at the crack of dawn, transporting oil and safely testing his precious cargo in Sidney, Montana – and he's bringing folks along for the ride! Moorhead, touted a "very engaging (ruggedly handsome) character who moved his family to the Bakken to pursue the adventure and the paycheck," is one of many familiar faces gracing the Smithonian channel's docu-series Boomtowners. The six-part series chronicles the daily lives of folks living and working in the Bakken, one of the world’s leading oil-producing regions. The show, which premiered in April 2015, centers on the societal impact fueled by this modern-day black gold rush. Other Boomtowners faces tapping into the American Dream include Moorhead's wife, Phoebe, a court reporter; Judge Greg Mohr; Sean Banks, a street preacher/oil worker; Travis and Justin, two 20-somethings working in the patch; Sandi Beagle Angel, a lifelong resident of Sidney with an affinity for nostalgia. “The Bakken boom is a modern-day gold rush, fueled by the American dream of rags to riches,” said executive producer for the Smithsonian Channel, David Royle, in a press release earlier this year. “It’s like the Wild West all over again, with compelling characters from all walks of life and from all across America seeking their fortunes. And like the Wild West, it’s transforming some lives but leaving others with shattered dreams. It is certainly one of the most important economic developments of our time ... but at what cost?” Of course, where there's a spark, there's a flame. Naturally, additional Bakken-inspired television shows have been announced 64


recently. The Starz network is set to release a new crime drama entitled Black Gold, which has attracted the likes of director James Ponsoldt, known for his work in the TV series Parenthood. Bravo is slated to release a reality show entitled Why not, Minot?, produced by Leftfield Entertainment of the History Channel's PawnStars and Bravo's The Real Housewives of New Jersey. So, what does this mean for Bakken towns/cities? What was once an anomaly is no almost commonplace, as thousands upon thousands flock to the Bakken shale region of North Dakota and Montana for work in the oilfields. Accordingly, this surge in population leads to a surge in infrastructure and housing needs. Minot (soon to be the home of Bravo's Why not, Minot?) has experienced 20 years of growth in the past six years – from 38,000 in 2008 to today's 50,000 – and continues to manage growth while maintaining the Magic City’s high quality of life. "Considering back in 2008 we were around 38,000, that's quite a jump," says Stephanie Hoffart, president/CEO of the Minot Area Development Corporation (MADC). "A lot of the oil servicing companies have a presence here in Minot, and a lot of [the workers] live here and go out to the sites, mostly because we are a hub city with a lot of amenities that other communities don't have." As Hoffart confirms, continual development is required to keep up with the ever-increasing population and its needs. Recent developments include a new grade school in the city's southeast, redevelopment of the downtown, new water and sewer infrastructure, 180 acres reserved east of town for value-added agriculture businesses, a new rail system scheduled for service in

Photo courtesy of the Smithsonian Channel.

TV network Bravo is slated to release a reality show entitled Why not, Minot? in the near future. Left: Boomtowners star Ben Moorhead and his family. "There have been a whole lot of pioneers here, but not a whole lot of settlers," says Ben Moorhead. "You come here and make your cash, and then you go back and do whatever it was that you needed cash for. It's fantastic money."

early 2016, and a new airport opening in January 2016. And of course, housing is a recurrent focus. In 2011, the city lost 25 percent of its housing to a massive flood – and during an influx of oil activity, no less. "We didn't have a downturn in 2008 like the rest of the states had. We've come a long way in the housing area [since the flood] – we've caught up," says Hoffart, adding that the average time a house is on the market is under 90 days. MADC is focused on diversifying its city, staying true to the belief that "a more diversified economy leads to a stronger and more stable economy." As such, the city's active Business Expansion and Retention (BEAR) program is top priority as it continues to identify companies looking to expand their operations into Minot. As of 2014, the MADC business attraction list contained 24 companies actively pursuing Minot as a possible expansion location. "There's a new normal in town. Things popping up in all directions," says Hoffart. "We're growing in all areas of Minot, which is great to see. Even though oil prices have come up and down in the last six months, all the businesses I've talked to are busy." Suffice to say, the introduction of a TV show to the city's lineup doesn't surprise Hoffart. "We are the hub city for western North Dakota and now the state is starting to realize that," she says. "Things have really changed in our community, and it's constantly changing. It doesn't surprise me that they would want to [film here], but I don't think it's as bad as the Wild West; we have very good people that live here." And then there's Williston, the fastest growing micropolitan* in the nation for the last four years running – an equally intriguing candidate for TV. "What's happening in western North Dakota is something of historic value, along the lines of the California Gold Rush in the

1800s," says Shawn Wenko, executive director, Williston Economic Development. "We've had tremendous inquiries, as far as media goes, wanting to film here in the Bakken. It makes for good TV, but the further you are from Williston, the taller the tale. You really have to experience Williston for yourself." Williston has also experienced a tremendous population surge over the past few years, tripling in size since 2008. What was once a stagnant population of around 12,000, today Williston averages at about 32,000 inside city limits with an additional 15,000 on the outskirts. Wenko cites 2012 to 2014 as the city's largest influx, at a whopping 20 percent. "To put that into perspective, manageable economic development is about 2.5 percent, so we're drinking from a fire hose," he says. Accordingly, the city has identified approximately a billion dollars worth of infrastructure needs and development that they are aiming to accomplish over the next five years. "We need to prepare for a population of about 56,000 over the next five years," says Wenko. "The billion-dollar price tag means hundreds of millions in roads, a $240-million airport, a $100-million wastewater treatment facility, another several million in city government buildings, a landfill expansion – it's everything that makes a city go 'round." Housing development in the city is also at an all-time high. In 2014, a half-billion-dollars in permit evaluations were issued. Wenko anticipates the same for 2015. Apartments are developed by the thousands, houses by the hundreds, and temporary housing units under special permit applications are ever-increasing. According to Wenko, 60 percent of the city's population can be attributed to the oil and gas industry, whether directly or indirectly. Accordingly, the city has grown to support its ever-flourishing industry. "Williston has really shifted from a boom to a business model," Wenko concludes. "You're starting to see tremendous growth in other industries—retail, restaurants, professional/technical services." All told, it seems the Bakken shows no signs of slowing down. And suffice to say, as the Bakken continues to flourish, so too will interest from the small screen. w *Micropolitan refers to cities with populations under 50,000. BAKKEN OIL REPORT – FALL 2015


Photos courtesy of Todd Melby.

Not all that glitters is gold Black Gold Boom By Amanda Lefley

One of the most famous economic events created from Mother Nature that ensued a ‘boom’ of opportunity and job creation was the California Gold Rush. Dating back to 1848, gold was first discovered in Coloma. In today’s era, another boom is happening. Reporter and producer Todd Melby has coined it ‘Black Gold Boom’.

“All I would hear about them would be their name, their age, how they died and where they were from, and then the story would just kind of disappear... People aren’t really talking about the men who have died. I think that is super important. These are human lives. Their lives are important, and the causes of that loss of human life has to be examined,” said Melby.

“People have placed that Wild West narrative on it,” said Melby, referring to the oil boom in western North Dakota. “Outsiders think it is like the California Gold Rush all over again.”

As a result, Melby produced a four-part radio series on worker deaths, including an examination of how a Montana man named Dustin Bergsing died on Jan. 7, 2012. He was a well watcher that took measurements of oil tankers. One night he opened up a tanker lid and was overcome by noxious fumes. He suffocated to death at the age of 21. Bergsing’s story is also one of the major narratives in an interactive documentary Melby produced called “Oil To Die For”, which was launched on May 18, 2015. This project explores the hidden price behind the oil boom. Melby explained critics often focus on the environmental downsides. Whereas those are definite problems, Melby’s focus is on the human price.

Melby started reporting Black Gold Boom in 2012, submitting a proposal for the public media project to Localore that was running a contest for stories that were important in the reporter’s local community. “The reason I created Black Gold Boom was because it was a big news story for North Dakota… It changed everybody’s life. Western North Dakota before the oil boom was a sparsely populated place without a whole lot of economic development,” explained Melby. The project started as a radio series airing on Prairie Public radio network and Localore. Through this reporting, Melby heard instances of men dying on oilrigs and in other related accidents. This triggered him to start exploring the dangers of working in the oilfields. 66


“I want the public to be more aware of the dangers of working in the oilfield,” said Melby. “I want these lives to be remembered and I want everyone to go home safe.” Lindsey Wagner was the user experience designer with “Oil To Die For”. She explained the thought process in making the timeline for the documentary, merging Bergsing’s story with that of Mr. X, an industry whistleblower.

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“They overlap in timing, so putting them into one interface on our website that is also mobile accessible was very interesting. It is almost like we have little bits of each of their stories that together made one complete story, but then we were also comparing their complete stories together in terms of timing so you can see how the two really play off of one another,” explained Wagner. “Oil To Die For” has many components. The project has a straightforward navigation system, a simple scroll feature to see the linear story, because there were a lot of different parts to the stories within the documentary, Wagner explained. The project also intertwines video, both as a part of the narrative and for building atmosphere, in addition to audio clips, documents and reports. “You can mimic TV and radio somewhat in an interactive piece. You can combine them and then add the element of self exploration to it,” said Wagner, who has worked on more than 12 interactive documentaries. “You can control the pace and you can control when you go to it.” To date, more than 8,500 people have gone through the interactive documentary at The documentary is accessible on all platforms, including mobile devices and tablets. Melby also recently completed a television documentary titled “Black Gold Boom”. It focuses on the Mandan, Hidatsa and Arikara tribes of western North Dakota and their different points of view on the Bakken boom. “That will be airing on public television stations in the U.S. during the

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The FBI battles the dark side of the Bakken oil boom By Deb Smith

About nine years ago, before the Bakken oil boom became its own entity, the western part of North Dakota was a peaceful, wind-swept state offering many national historic sites and museums illustrating a long history of explorers and settlers. The history is still there, but "peaceful" wouldn't be the description that comes to mind these days. The state currently has a population of approximately 725,000 and that's about a four percent growth rate in just two years, much of it because of the Bakken oil boom, the largest explosion of oil activity the state has ever seen. Once ninth in the line-up of oil producing states, North Dakota is now second only to Texas in annual production. The Bakken formation in North Dakota was producing about 200,000 barrels of oil daily in 2009. Five years later, more than one million barrels were moving up and out of the ground. It takes a lot of workers to make that happen. And they came in droves from all around the country, looking for the chance to work hard and make a good living. There is no doubt that rapid influx of thousands of workers to the Bakken oilfield has brought unprecedented progress and prosperity to North Dakota. In June 2015, according to state budget director Pam Sharp, the surplus was estimated to be more than $450 million. But such wealth and opportunity also caught the dark attention of organized crime, looking to the temporary camps set up to accommodate workers with big wages and money to spend – huge potential markets for prostitution and illegal drugs. The small town of Williston, North Dakota is situated pretty much right in the middle of all the Bakken interest and activity and has experienced its own dramatic 20 percent population growth since the oil boom really got going in 2007. Its police department has been struggling valiantly to keep up with increased calls for assistance as the city crime rate keeps pace with the number of workers pouring in from out of the state. The Washington Post estimated that violent crime in the Williston basin region increased by 121 percent between 2005 and 2011 alone – everything from robbery to assault to murder. The majority of these crimes are associated with drugs – alcohol, marijuana and crystal meth are popular, with heroin coming more into play as the traffickers become better established. People in this previously quiet community are now hearing about such 70


things as drug cartels from Mexico and travelling prostitution rings. Former U.S. attorney Tim Purdon stated that in 2009 there were 107 criminal cases prosecuted in North Dakota; by 2014 there were 254. This increase in crime and drug use has put heavy demands on social services departments already stretched to the limit trying to help workers and families new to the area. At the same time, the planning and economic development departments are pushed to the limit, striving to accommodate the growing demands on housing, health and schooling for people looking to make a home in the city and area. And the bad guys keep coming. "It's not Mayberry anymore," said Purdon. "Our police and prosecutors are going to have to adapt to keep pace. We have organized criminal gangs selling drugs, sex trafficking and out-ofstate flim-flam men coming in. And the cases have become more and more complicated." In response to these high levels of organized crime in western North Dakota, the FBI is establishing a permanent satellite office in the City of Williston. "We've had a presence in the area for a couple of years in another temporary space in Sidney, Montana with agents going in and out of the Bakken as needed," says Kyle Loven, chief division counsel, Minneapolis Division of the FBI. "With a more permanent solution, we hope to ward off unseemly elements that tend to come in and follow progress." The new 6,000-square-foot office will join four others that are already operating in the state – located in Fargo, Grand Forks, Minot and Bismarck, all serving as sub-offices of the same FBI Minneapolis Division. The Williston permanent office will be set up in the city's new downtown retail/commercial space, the Badlands Town Center, with a grand opening planned for the fall of 2015. Richard Thornton, special agent in charge of the Minneapolis FBI division states, “The opening of this office is in response to the unprecedented growth in population and economic activity associated with the oil exploration and production in the Bakken region and the corresponding increase in criminal activity. The FBI will be in a better position to effectively address these issues in this region of North Dakota through this new office.”

Kyle Loven, chief division counsel, Minneapolis Division of the FBI, says that with a more permanent office in the Bakken area, they hope to ward off unseemly elements that tend to come in and follow progress. The FBI agents are already working with other law enforcement departments in order to control and eliminate the criminal elements looking to cash in on the success of the Bakken oil boom. In June 2015, the Bakken Strike Force came into effect, set up with existing drug task forces in Williston, Minot, Bismarck and Dickenson, plus FBI and other federal task forces – a total of 50 agents focused on the illegal drug trade in the Bakken.

primarily young women into an area for prostitution. These are

"We will continue to aggressively investigate organized crime wherever it may be found," says Thornton. "We will work with our law enforcement partners through the Bakken Organized Crime Strike Force to ensure that those who engaged in this type of criminal activity pay a high price."

nearby, the FBI is in place to more effectively battle the violent

The FBI mainly investigates federal violations, while other crimes are generally handled at the local level.

collaborative effort among the FBI, our federal, state and local

"Our primary concerns will be the drug trade and human trafficking, both having unfortunately become issues in the area," explains Loven. "Human trafficking is where people bring

organized operations that see a market with a large influx of men and move quickly to exploit the situation." Williston Police detective Amber Dickerson has commented that the FBI will be able to prosecute cases involving interstate prostitution rings under federal human trafficking laws, taking some of the burden from the local forces. With its new office world of drugs and prostitution. With an excellent track record in its three-state area of responsibility, the Minneapolis division of the FBI will continue to work with its local and state partners. "This is very much a partners, and the U.S. Attorney's Office in North Dakota," says Loven. "We're all committed to ensuring that federal violations are addressed, and working together very closely in trying to keep the people of western North Dakota safe." w



Fighting the good fight: Drug and alcohol use in the oilfields By Melanie Franner

The recent slow down in the oilfields of North Dakota and Montana may have produced some unforeseen, but positive results. Chief Deputy Verlan Kvande of Williams County, North Dakota, suggests that the use of alcohol and drugs may have declined somewhat in the past little while. “There has been a bit of a slow down in alcohol and drug use as a result of the downturn, at least as far as we in the sheriff’s office are concerned,” he says. “I would have to admit that the numbers have gone down slightly.” On the other hand, other crimes have been on the upswing. “The number of thefts is substantially higher than what it was,” continues Kvande. “And even the domestic violence calls, which have also increased, tend to have some nexus to substance abuse of some fashion – be it drugs or alcohol.” Although the Williams County Sheriff’s Office remains “stretched” in terms of having adequate resources to deal with ongoing crime in the area, Kvande says that the office is better prepared today than it was in the past. “We’re still stretched, but the saving grace is that we have some guys now who have been here three or four years so they have experience behind them,” he explains. “It 72


was a lot harder to handle things when they were still relatively new.” That being said, Kvande says he is “just happy that they’re keeping their heads above water”. Drug of choice According to Kvande, alcohol and drugs have long been a part of the daily scene in Williams County. “It’s the quantities of the alcohol and drugs that are new,” he reports. “Take heroin for example. I worked here for 15 years before I saw heroin, and in the last couple years it has become very prevalent. We’ve seen a dramatic spike in the number of medical calls regarding people who have overdosed on heroin. Ten to 15 years ago, marijuana was the most prevalent, with some methamphetamine. Now, heroin and methamphetamine are everywhere.” The increasing transient nature of the workers has also proven to be problematic for the sheriff’s office. “The community has a grown a lot over the past few years,” says Kvande. “And the oilfields have brought a lot of diversity and other good things to the community. Unfortunately, as law enforcement personnel, we don’t deal with the good people who come here, the ones who

bring their families and put down roots. The ones we deal with tend to be the suspects or victims of crime. There are a lot of times when we arrest a suspect and go back to follow up with the victim or witnesses and they’ve since left the area. We try to contact them but they typically don’t return our calls. It can certainly make our job more challenging.” The numbers have it A detailed look into the use of alcohol and drugs within the states of Montana and North Dakota reveal higher percentages than the national average – according to reports from the Substance Abuse and Mental Health Administration (SAMHA), Behavioral Health Barometer Montana, 2014, and Behavioral Health Barometer North Dakota, 2014. In the case of Montana, the number of people (aged 12 or older) dependent on or who abused alcohol within the year prior to being surveyed was deemed to be “significantly” higher than the national average – coming in at 9.3 percent compared to the U.S. average of 7.3 percent between 2009-2010, and reaching 8.3 percent compared to the 6.7 percent national average in 2012-2013. The numbers are just as revealing for North Dakota. The state’s average was 8.4 percent between 2009-2010 (compared

to the 7.3 percent national average) and 8.4 percent between 2012-2013 (compared to the 6.7 percent national average). It actually rose to 8.8 percent and 8.7 percent in 2010-2011 and 2011-2012 respectively (compared to the respective national averages of 6.8 percent and 6.6 percent.) Unfortunately, the number of adults aged 21 years or older who reported heavy alcohol use within the month prior to being surveyed (2009-2013) was again significantly higher for the two states than the national average. The national average came in at 6.8 percent, while the state of Montana recorded 9.4 percent and the state of North Dakota 9.1 percent.

increased from 98 in 2009 to 203 in 2012. Enrollment in substance abuse treatment actually decreased in North Dakota, dropping from 2,108 in 2009 to 1,785 in 2013 (single-day counts). Of those in treatment in 2013, some 13.3 percent were for drug use only, 26.1 percent were for alcohol use only, and 60.5 percent were for both drug and alcohol use.

to 2013, falling from a high of 28 in 2012 to nine in 2013. The ongoing battle Although there would appear to be bright spots in the battle against crime, chances are that the battle will remain an ongoing one. That’s no reflection of the personnel who try to police the front lines of the oilfields, so to speak. It’s more

The number of individuals in North

the transient nature of the workforce

Dakota who received buprenorphine as

itself, coupled with the firmly entrenched

part of their substance-use treatment

practice of seeking out the growing

(single-day counts) decreased from 2009

availability of alcohol and drugs. w

The numbers are less alarming for illicit drug use, with both Montana and North Dakota recording similar percentages in the number of adults aged 12 or over who abused illicit drugs (2012-2013). The national average hovered around 2.7 percent, with Montana recording the same average. North Dakota showed an average that was as low as 2.0 percent from 2009-2011, but which rose to 2.6 percent and 2.7 percent respectively for the rest of the period through to 2013. Treatment on the rise On the good news front, an increasing number of people in Montana are seeking treatment for their dependency. There was a total of 4,429 individuals enrolled in the state in substance-use treatment (single-day counts) in 2013 – an increase of 827 individuals over 2009. (Although there was a spike of 9,885 individuals who received treatment in 2011). Approximately 19 percent of the 4,429 individuals in 2013 sought treatment for drugs, 29 percent for alcohol use and 52 percent were for both drug and alcohol use. The number of individuals enrolled in opioid treatment programs in Montana receiving methadone (single-day counts) rose from 70 in 2010 to 150 in 2012. Likewise, the number receiving buprenorphine as part of their substanceuse treatment (single-day counts) BAKKEN OIL REPORT – FALL 2015


BLM introduces new rule: Lawsuits ensue By Melanie Franner

The Bureau of Land Management’s (BLM) introduction of its final rule March 20, 2015 was designed to regulate fracturing activities on public and tribal lands. It followed on the heels of the 2012 first iteration of that rule – one that was subsequently sent back to the drawing board twice and which lay dormant until now. And although better than the first, this final iteration still fails to satisfy. “The BLM has failed to justify the reasons behind the need for this final rule,” states Kathleen Sgamma, vice president of government & public affairs, Western Energy Alliance (Alliance), one of several industry representatives leading the charge against BLM’s latest actions. “It is completely redundant with what the states are already doing with regards to fracking.” The BLM oversees about 700 million subsurface acres of federal mineral estate and carries out regulatory duties of the Secretary of the Interior for an additional 56 million acres of Indian mineral estate across the U.S. Within the state of Wyoming, the BLM manages more than 17.5 million acres of land and has mineral rights to another 40.7 million. In North Dakota, it manages 1.7 million federal mineral acres – about 30 percent of the total. The issue The alliance is a non-profit trade association (headquartered in Denver, CO) representing more than 450 companies engaged in exploration and production of oil and natural gas in the west. Once the BLM introduced its final rule, the alliance and the Independent Petroleum Association of America (IPAA) immediately filed suit in the U.S. District Court. Others have since joined the battle, including the state of Wyoming, North Dakota, Colorado and Utah – not to mention the Ute Tribe and the Southern Ute Tribe. “States have been regulating fracking for many years and have strengthened their regulations recently, as activity has increased and technology improved,” says Sgamma. She purports that the new rule will discourage investment and job creation in the West, that it infringes upon state and tribal regulatory primacy, and that the rule’s redundant regulatory process will exacerbate existing delays – suggesting that the rule would likely add an additional 100 days to permitting times. Sgamma cites the results of an economic analysis from respected economics firm John Dunham & Associates, which suggests that 74


the implementation of BLM’s proposed rule will impose a cost to society of $345 million annually, with an average per well cost of $96,913. “The economic analysis was completed on the BLM’s first iteration of the rule,” adds Sgamma. “The cost of this final version will actually be higher than the original estimate.” It’s in the details The official BLM press release speaks to four key components that form the basis of the new rule. These include: 1. Provisions for ensuring the protection of groundwater supplies by requiring a validation of well integrity and strong cement barriers between the wellbore and water zones through with the wellbore passes; 2. Increased transparency by requiring companies to publicly disclose chemicals used in hydraulic fracturing to the BLM through the website FracFocus, within 30 days of completing fracturing operations; 3. Higher standards for interim storage of recovered waste fluids from hydraulic fracturing to mitigate risks to air, water and wildlife; and 4. Measures to lower the risk of cross-contamination with chemicals and fluids used in the fracturing operation, by requiring companies to submit more detailed information on the geology, depth and location of pre-existing wells to afford the BLM an opportunity to better evaluate and manage unique site characteristics. In her April 30, 2015 presentation before the Senate Energy and Natural Resources Committee, Subcommittee on Public Lands, Forests and Mining, Sgamma addressed these four components. In the matter of the first one, she states: “Looking at Applications for Permit to Drill (APDs) last year, which are a good indicator of future activity affected by this rule, 99.97 percent are in states that have updated their wellbore integrity and hydraulic fracturing disclosure rules in the last few years. That number would be 100 percent, except for one APD in Kansas, a state currently undergoing rulemaking. That percentage will likely be 100 once those wells are actually completed. I mention recently updated state rules, but all states with active oil and natural gas development have had wellbore integrity rules, the focus of BLM’s rule, for many years, if not decades.”

In terms of the second component regarding public disclosure, the alliance contends that companies already voluntarily disclose chemicals via or in compliance with state regulations. And the third component is addressed through the alliance’s suggestion that state rules specifically tailored to each state’s unique geological and hydrologic conditions better protect the environment and groundwater than a one-size-fits-all federal rule.

“A favorable decision on the preliminary injunction to stay the

As for the fourth point about lowering the risk of crosscontamination, Sgamma indicates that the incidence of such has been very low – she can recall only two cases in the past few years – and, in both cases, states moved very quickly to address the issue.

Regardless of which side Judge Skavdahl rules in favor of – and

Sgamma also calls attention to an additional problem with the BLM’s rule, one she mentions in her presentation before the Senate Energy and Natural Resources Committee:

of the fact that the fracking industry has an impressive safety

“Finally, a major problem of this rule is that BLM simply does not have the resources or wherewithal to implement this vast new regulatory regime.”

standards are needed to ensure safety and protect ground water.

rule will prevent its implementation before the courts have had a chance to hear the case,” explains Sgamma. “If this happens, then the BLM will most likely file to have the court case heard as soon as possible. If the decision is unfavorable to our cause, then we will do the same.” Industry’s day in court

when that ruling will actually take place – the crux of the matter is that industry, state, and Indian tribes have taken issue with BLM’s new rule. They claim there is no justification for the BLM to assume these new regulatory responsibilities – especially in light record that spans decades. BLM, on the other hand, contends that new oversight and And that they should be the ones to oversee the new standards, albeit on federal and Indian lands only (at this time).

EPA results

“I feel that the federal government should have taken a look

In March 2015, the Environmental Protection Agency (EPA) released a “Draft Assessment on the Potential Impacts to Drinking Water Resources from Hydraulic Fracturing Activities”. The assessment, done at the request of Congress, found “specific instances where well integrity and waste water management related to hydraulic fracturing activities impacted water resources, but they were small compared to the large number of hydraulically fractured wells across the country”. The EPA goes on to cite the report as one that “provides valuable information about the potential vulnerabilities, some of which are not unique to hydraulic fracturing to drinking water resources…”

at this situation and acknowledged that the states have an exemplary record when it comes to fracking,” concludes Sgamma. “It’s a shame that they didn’t opt to put their resources toward something that actually needs regulatory oversight, some issue where they could get better bang for their buck.” w

“The recent EPA study essentially said that fracking is safe,” adds Sgamma. What next? The alliance et al were able to attain a legal temporary stay by Judge Skavdahl of the Wyoming U.S. District Court on the implementation of the BLM rule (which was supposed to come into effect 90 days after its March 2015 introduction). “The temporary stay was granted primarily because the BLM was unable to provide the full administrative record to the judge,” says Sgamma. “The temporary stay was originally granted until July, but the BLM has asked for more time – after having taken years to introduce the final rule. The current deadline has now been set for August 28th.” Once the full administrative record is handed to the judge, the alliance attorneys and the states’ attorneys will have seven days to review the materials and cite to it. No new arguments can be heard. The attorneys will then have to submit their briefs to the judge, who has previously said he will take two weeks to make his decision.

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The new domestic war A veteran’s fight for basic human needs Kenneth “Steve” McQueen spent eight years, one month and 28 days in the Marine Corps, working in mortars tech, avionics, offshore medical services, and even as a game warden on base. He never imagined, however, that following his service he would become one of 49,933 homeless veterans living in the United States, and one living with a rare form of malignant cancer.

Kenneth “Steve” McQueen, a Marine Corps veteran, who recently fell on hard times.

Born of a strong military background, McQueen decided to join his familial ranks of service in the Marine Corps. In his service, he visited the Philippines, Taiwan and other Pacific nations, as well as served stateside in the U.S. He describes this time as one of perpetual “readiness,” for any threat or deployment needed in non-wartime conditions. Upon honorable discharge, he, his wife

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and children moved to Kentucky, North Carolina and Colorado, where he worked in various industries, including as a police officer in a rural town, retail sporting goods, driving taxis and construction. For McQueen, the employment was never as stable as he would have liked, especially in supporting his then-wife and five kids. Last year, one week before Thanksgiving, McQueen noticed acute pain in the left side of his abdomen, and was taken to the hospital for treatment. What was originally thought to be appendicitis, turned out to be a rare form of t-cell lymphoma – a one in 6,000 diagnosis, which later became b-cell lymphoma; an even rarer and more aggressive classification of the disease. Sadly, McQueen and his wife grew apart during the initial stages of his treatment, as she was suffering her own medical issues, and by mid-spring the two had separated and were going through the process of divorce. McQueen didn’t have many options. His diagnosis and subsequent chemotherapy treatments prevented him from working, and created thousands of dollars of medical costs. And, he and his wife’s separation meant he didn’t have a stable residence either. He reached out to his brother for guidance – also a military veteran, who was going through hard times and staying at a homeless shelter in Aurora, Colorado, called Comitis Crisis Center. Veterans and their families are eligible for a free room with a bathroom for two whole years at Comitis. The Comitis Crisis Center provides emergency, short and long-term shelter and care for many populations in need, including veterans and their families, single and dual-parent families, individuals, runaway teens, and women just out of incarceration. Each population is given access to medical, dental and



Join our fight for our veterans! Learn more or consider making a tax-deductible, charitable donation today at, or call 720-975-0155, ext. 13 mental health services, and is offered personal and professional development courses, such as parenting classes, group therapy, substance use treatment, resume and work skill-building classes. Comitis’ goal is to see that every resident who enters the shelter is given case management and guidance to determine the “next best step” in their path to recovery and economic stability. For McQueen, this meant the opportunity to stay with his brother during one of the most difficult times of his life. “If it wasn’t for Comitis, I know I’d be sleeping under a bridge. Who knows what my treatments would be like?” he said.

that you can’t be ashamed to reach out for help when you need it. Comitis has helped me, and I’m on a new path and looking forward to a new future.”

The Comitis Crisis Center also provides

At the time of this interview, Kenneth McQueen’s cancer is 100 percent in remission, and he is looking forward to moving into a new residence – a house – with a few friends he’s made at Comitis. As a matter of fact, Comitis is Latin for “friendship”.

veterans were recorded as “waitlisted for

substance use disorder and mental health treatment 100 percent free-ofcharge. In a time when over 900,000 services” through the VA (2013) and with one veteran committing suicide every 65 minutes (2013), we believe that those who have served should not come home to only fight another war; this one being on a personal front.w

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Six months after his first round of chemotherapy, McQueen is slowly regaining his strength and energy. The staff at Comitis helped him connect to his benefits through the VA and disability, offering him income as he undergoes treatment. “This place has given me support through my struggles. I’ve found many people here with similar struggles… hearing their stories and getting to share mine has given me hope that things will turn around. Everyone is supportive of everyone here.” When asked what his favorite class to take at Comitis is, McQueen replied with a smile, “the cooking ones. Eating healthy and nutritiously is critical to my recovery, and they’re teaching me how to do this for myself.” McQueen’s story is one of hundreds at Comitis, where individuals and families struggle at any given time to make ends meet. Coupled with medical and health issues, the loss of a home can be devastating. McQueen said, “You can’t control what’s happening in your life, but by taking it one day at a time, things will improve. I never thought I would be homeless, since I’ve always prided myself on work ethic and had been working since I was 16. But what I learned is

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Small community with big opportunities By Tammy Schuster Get up, go to work, come home, go to sleep. Repeat. Does this scenario sound familiar? For people living in Devils Lake, North Dakota, they strive for something more. Devils Lake, a small community of 8,000 people living on a big lake covering over 200,000 acres of land in northeast North Dakota, promotes more of a balance between work and life. Situated approximately 90 miles west of Grand Forks, Devils Lake is considered a year-round mecca for outdoor sports and recreation. There is boating, skiing and fishing on the lake in the summer, and ice fishing, snowshoeing and hunting in the winter. Add lush city and state parks, and a national game preserve, and you have endless opportunity to add some life into your lifestyle. “The lake is a great resource for all seasons,” says Rachel Lindstrom, executive director, Forward Devils Lake, a not-for-profit organization working on the economic development of the region of Devils Lake. “We are focused on all industry, and are open for any opportunities.” Given its proximity to the Bakken oilfields, and the upcoming construction of the new American Dakota Refinery in Devils Lake, the organization is turning their 78


focus from agriculture to the oil and gas industry. “We’ve never lost sight of agriculture, but we feel the dips when it struggles,” says Lindstrom. “By diversifying our economy, it helps us weather the storm a bit easier.” North Dakota is the second largest oil producer in the U.S., generating approximately one million barrels per stream day (BPSD). Texas is the numberone producer. The oil refinery is scheduled to begin construction in spring 2016 and is expected to be completed in two years. This will create immediate jobs during construction, runoff jobs for the rest of the community in all sectors, and long-term jobs for the operation and maintenance of the refinery once it is operational in 2018. Adjacent to the refinery land is 130 acres of industrial parkland available for development. The property is minutes away from the U.S. Interstate, Devils Lake Regional Airport, and the Northern Plains Railroad, making access easy for future businesses. Forward Devils Lake is keen to attract families to continue growing the community. A family moving into the area with a parent working in the oil industry may have teenagers who can help fill jobs

in the service and tourism industries. This trickle-down effect helps strengthen the workforce and also helps strengthen the school system, which currently includes four elementary schools, a middle school, a high school, and a community college. An increasing population means an increasing need for small business and services. Forward Devils Lake offers incentive programs and grants for new and existing business owners in the region to help facilitate growth. Being a small, but growing community, Devils Lake has something other towns in North Dakota may not have. “It’s a safe environment with big enough opportunities. It’s a lake community,” she says. “It’s a relaxed and fun environment and there is always something going on.” There is a lot of emphasis on the lake all year around. The summer brings street festivals, fireworks over the lake, and shows on the water. In winter there is ice fishing, hockey tournaments, and a youth fishing derby. There is even ice golfing. “We utilize our lake to emphasize our community,” says Lindstrom about the work/life balance in Devils Lake. “You are off work at 5:00 p.m. and on the lake at 5:30.” That’s a balance worth repeating. w


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Rail makes Midwest a new shipper of crude oil By Deb Smith By the end of May 2015, an average of 1.7 million barrels of crude oil per day (b/d) was leaving the Midwest, and 638,000 b/d of that production was being transported by rail. After a four-year growth in production of 500 percent, pipelines running at maximum capacity could not handle the huge output of the Bakken oilfield. A lack of local refining capacity and limited access to pipelines meant producers had to find another way to get the oil to market. Crude-by-rail (CBR) was the answer. A report released by the U.S. Energy Information Administration (EIA) sums it up. "Shipments of crude oil out of the Midwest region to other U.S. regions have steadily increased as a result of pipeline reversals and rail transport. Rail movements out of the Midwest contributed to the region becoming a new shipper of crude oil,” said the report, which was posted on the EIA’s website. Without the ability to use rail transportation, the region would still be a net recipient. In recognition of significant increases in CBR over the past five years, now for the first time ever, the EIA is providing monthly data of rail movements of crude oil. "Monthly rail receipts of crude oil accounted for more than half (52 percent) of the crude oil supply to East Coast refineries in February 2015. As U.S. and Canadian production of crude oil has increased, crude supply by rail to East Coast (PADD 1) refineries has grown, displacing waterborne imports of crude oil from countries other than Canada, such as Nigeria. While refinery utilization in Petroleum Administration for Defence District (PADD) 1 in early 2015 has been below typical levels, this still marks the first time in EIA's dataset that crude deliveries by rail have accounted for such a high percentage of East Coast refinery supply." Why the railroad? The Burlington Northern Sante Fe (BNSF) Railway transports 75 percent of the crude oil out of North Dakota, while the Canadian Pacific Railway handles most of the remainder. BNSF states that a single unit train can haul 81,000 pounds of crude oil and get it to market five times faster than a pipeline. It is estimated that moving oil by train from North Dakota to the Atlantic coast is about a five-day trip; to cover the same distance through a pipeline, the crude would be in transit for over a month. 80


As well, with extensive, flexible routes (more than 50 destinations both inland and coastal), producers can take advantage of changing market values and choose the destination for each shipment, many of which may not be linked to the existing pipeline network. According to the Pipeline and Hazardous Materials Safety Administration (PHMSA) division of the U.S. Department of Transportation, there are currently 61,000 miles of crude oil pipeline in the nation. In contrast, the Association of American Railroads claims almost 140,000 miles of railroad. BNSF officials have stated that in 2015 the railroad plans to invest more than $335 million on capacity and track maintenance in North Dakota. By upgrading tracks and signal systems to accommodate higher speeds, and by building passing sidings and parallel tracks, the railroad can increase its capacity very quickly and effectively. One downside to railroads is that rail shipments can be susceptible to the weather, sometimes resulting in bottlenecks that can affect the entire rail network. In that regard, pipelines are generally more reliable–if they can cover the route. Refineries need crude oil There are currently 115 oil refineries in the U.S. and almost all domestically produced oil finds its way into one of those facilities, each depending on a certain grade or blend of crude oils for operation. Some refineries use the "sweet, light" crude that is produced in the Bakken shale formation. As the price of that Bakken crude goes down, some of those refineries can then compete against Gulf Coast refineries that are using the cheaper heavy crude. As a result, East Coast refineries, especially those without access to pipelines, have been making heavy investments to install such things as high-speed rail unloaders to facilitate unloading crude oil from trains. Some facilities can handle individual rail cars or manifest trains (a small number of cars); others are able to handle unit trains of 80 to 120 cars at a time. These investments have been key in making the growth in CBR possible. The oil industry and railroad equipment leasing companies are also investing heavily in the CBR future. As of April 2014, manufacturers are reported to have had 50,000 crude oil tank cars on order. This production will not only increase the capacity of the railroads, but is also in response to new safety

standards for train cars hauling crude oil, recently put into place early this year.

There is much uncertainty about the future price of oil, the

Railroads have one other big advantage to offer. As was stated by the Congressional Research Service on December 4, 2014, "Railroads are more willing to enter into shorter-term contracts with shippers than pipelines, offering more flexibility in volatile markets."

factors and the extent of production growth in tight oil plays.

In an article published on the website "Financial Sense", which is dedicated to the financial education of the investing public, on February 18, 2015, author Robert Rapier explained how the falling price of oil has benefited the Bakken producers and the CBR industry. The price of oil in the future of CBR Over the past few years as oil production continued to expand in places like the Bakken, there was downward pressure on oil prices. Meanwhile, global crude oil demand continued to grow, and crude oil production outside the U.S. was relatively flat. While U.S. crude oil production rose by 3.2 million bpd between 2008 and 2013, global production outside the U.S. only rose by 0.5 million bpd during that time. As a result, there was upward pressure on the price of crude oil that could be sold internationally, and downward pressure on crude oil in the continental U.S. This opened up a price differential that provided an incentive to ship Bakken crude to the coasts. As a result, shipments by rail skyrocketed." ( growing-risk-transporting-crude-oil-rail)

timing of new pipeline capacity, regulatory and environmental For example, if oil prices continue to decline, Bakken producers may very well also slow down production and that could reduce the volume of oil carried by rail. It all depends. There are some members of congress advocating to change the law that generally prohibits exports of crude oil, looking to expand the market for the large increases in U.S. production. Because the crude pipeline network is not oriented to serve export ports, this would no doubt mean greater use of rail to transport even larger amounts of crude oil as it is extracted out of the Bakken shale. If several proposed large pipeline projects and expansions through North Dakota go online by 2016 to 2019, then CBR will likely peak out at 10 percent of the total North American production. But even if the projects don't go through‌there is a huge demand for crude oil in North America, whatever the price. No one can predict how the cards will fall or how the players will use them, but there is no doubt that the Bakken oilfield producers have the product, and the railroads have the ability to help move it to market. w



Salvation army

Up close and personal Testimonies of Salvation Army's effectiveness

Nearly 2,600 people in need of food got some at the Williston

Happy ending for homeless man with cancer

Salvation Army last year. We gave out more than 4,000 items

“Ron” was doing great in Williston, enjoying the new life he had made for himself after moving here from out of state. Then, tragedy struck. He was diagnosed with cancer.

of clothing and 500 Christmas toys. We provided emergency lodging to 174 people, and rent assistance to 181 individuals and families. Indeed, it’s relatively easy to illustrate the Williston Salvation Army’s positive impact through statistics. But numbers and figures don’t tell the whole story. They don’t connect us to the people whose lives have changed because of the Williston Salvation Army and its community partners and volunteers. Below are three short stories about real people served by the Williston Salvation Army. They are the people behind the statistics. Their stories reflect the reason the Williston Salvation Army works hard, every day, to provide critical services to people in need of help and hope. 82


Ron began treatment and grew sicker. Eventually, he could no longer work. The longer he went without work, the further behind he got on his bills. It didn’t take long before he became homeless. When Ron arrived at the Williston Salvation Army, he was very ill, thin, and dependent on a feeding tube for his nutrition. Worst of all, he was living on the streets. Our caseworker discovered that he had family in another state – he just needed help getting there. One problem: Ron’s doctor said he shouldn’t interrupt his cancer treatments. Doing so could be dangerous.

salvation army

The caseworker was determined to help Ron continue his treatment in a safe environment until she could help get him home to his family. She made some calls and found a solution. The Salvation Army and other local organizations came together to help pay for Ron to stay in a hotel for six weeks while he finished his cancer treatment. He had a safe, warm place to stay until he was able to get home, where his family was able to provide permanent housing and a support network. Ron’s story illustrates that people in need are often battling layers of complicated circumstances. The Willison Salvation Army is committed to finding creative solutions.

everything “right” still find themselves in the position of needing help. Thankfully, the Williston Salvation Army is here for them. Success achieved with eyeglasses, doctor visit “John” is a homeless senior citizen who has been working day labor jobs since he arrived in the Bakken a year ago. Even though he has been working as much as he can, he still lacks enough funds to afford housing. He wants to get back into truck driving, a trade he is skilled and experienced at.

When doing everything ‘right’ still goes wrong

John’s barrier to resuming his trucking career is that he cannot pass the eye exam or afford the required physical exam. He needs glasses and an appointment with a doctor.

“Joe” and his family had been living in Williston for two years. Joe had a great job and his family enjoyed being part of the community.

Through working with a Williston Salvation Army caseworker, he realized that his goal of becoming a truck driver is attainable through our medical assistance program.

Then, out of nowhere, Joe’s employer started cutting his hours. Before long, the company was forced to let him go.

Glasses have been ordered and the process has started to get John in for a physical. He will soon be able to get his commercial driver’s license.

The family was facing a financial crisis. Homelessness had become a genuine concern. Joe decided to apply for jobs back in his hometown. By the time he secured one, he could no longer afford to move his family back. Joe turned to the Williston Salvation Army. We rallied together with other local churches and were able to help Joe and his family with fuel and a moving truck to get back home, where a permanent job was waiting. Joe and his family were ecstatic. Unexpected problems like Joe’s can cause families to experience unforeseeable crises. Often times, families that are doing

John is able to move forward thanks to the Williston Salvation Army’s ability to remove barriers for those who can’t break through them alone. How to partner with the Williston Salvation Army 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 BAKKEN OIL REPORT – FALL 2015



Williston Basin is ready for reload By Tessa Sandstrom, North Dakota Petroleum Counci

Low oil prices have meant a slowdown in domestic oil exploration, but it hasn’t meant the end. In fact, behind each news article that paints a picture of doom, gloom and bust, there’s at least one (if not more) that is touting the industry’s latest innovation or technology that has helped create efficiencies and cut costs. In fact, in the Bakken, we’ve seen the free market at work as such efficiencies and innovations have made it economic to produce oil at just $70 a barrel or slightly less. But this should not be surprising. After all, there are three things to keep in mind

about the petroleum sector. First, we have gone through many commodity cycles in the past, and we will continue to in the future. It’s the nature of commodities. Second, the industry has survived each and every one of these cycles, coming out stronger through innovation and optimization. After all, hydraulic fracturing and horizontal drilling were born from a bust, and they’ve helped create perhaps the single greatest opportunity for our nation to improve its economic trajectory and standing in the world. Third, this industry and the latest shale revolution was born from ingenuity, and it still has

some of the brightest people working within it. Instead of meaning the end of unconventional development, this downturn is an opportunity for the industry to reload and be ready to come back stronger and more efficient than before. Already, the industry’s best and brightest are working on ways to make this happen. Ingenuity got us to where we are and ingenuity will ensure both the United States and Canada continue on their paths toward energy security for both our nations.

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This has been the theme of the Bakken for the past decade, and it will be a theme in the 2016 Williston Basin Petroleum Conference to be held in Bismarck from May 24-26, 2016. This conference, which is one of the biggest that is focused on the Bakken, will include talks from industry leaders and exhibits from companies highlighting the industry’s newest “ammo” that may be used to continue driving domestic oil production. These are exciting times for the industry as the U.S. and Canada inch closer to being energy superpowers. We invite you to be a part of it by attending the 24th Annual Williston Basin Petroleum Conference. Registration will open in January 2016. Visit for more information as we get closer to the conference, and we look forward to seeing you there! 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









Multi-prong approach to preventing saltwater spills in the Bakken Hidden Bench Produced Water Gathering Systems Installation of produced water gathering pipeline.

Curl saltwater disposal system facility.

The environmental and financial impacts of a saltwater spill can be significant. Unfortunately, the Bakken region has seen its share of spills. One particular produced water-gathering system is leading the way with advanced technology that focuses on leak prevention and detection, as well as streamlining operation costs and efficiencies. The Hidden Bench Produced Water Gathering Systems use pipelines to gather production water 86


from oil well pads and deliver to off-site saltwater disposal facilities. “One of the major benefits of this pipeline system is the reduction of heavy truck traffic in the Bakken. Minimizing the traffic dangers related to transporting water is one of the fundamental goals of the Hidden Bench project,” says Grant Slick, AE2S Water Solutions lead engineer. The Hidden Bench infrastructure, which

was designed and built by AE2S Water Solutions and its affiliated companies, has multiple high-tech risk management measures in place to prevent leaks and spills from occurring. The Supervisory Control and Data Acquisition (SCADA) System allows for real-time monitoring of pipeline conditions. OpWorks™, a unique web-based reporting and operator logging application, consolidates instrumentation data from SCADA,


operator field readings and other sources to monitor and report performance and operational parameters. Dual metering simultaneously monitors input and delivery, plus verifies the safe transfer of all source water captured by the Hidden Bench Systems. Together, OpWorks™ and SCADA can calculate the expected flows and pressures at critical locations within the pipelines. By continuously measuring and recording the actual flows and pressures, SCADA is able to detect a possible leak and activate an alarm to shut down the well pad pumps, nearly immediately with no required direct operator action. Both CloudSCADA” and OpWorks™ can be accessed by mobile, as well as desktop devices, to ensure those working in the field have real-time access to Hidden Bench Systems data.


“We are able to remotely monitor and automate so many safety features with our SCADA system. For instance, the back pressure of the pipeline is continuously monitored at the inlet piping at the salt water disposal facility. If an acceptable system pressure cannot be maintained, the pumping systems and isolation valves are automatically shut down and an alert is sent to the system operators,” says Slick.

and send an alert to dispatch a truck to

The tank levels at the disposal site are also monitored by the site's SCADA system to prevent the pumps from operating when the tanks are full. When a tank reaches a certain level, an alert is automatically sent to an operator or manager to determine the cause. When a tank reaches the lockout level, a signal is sent to the pump control system to automatically shut down the pumps. The system can even recognize a full oil tank at the disposal site

regulations in the state. AE2S Water


empty the tank. The system was recently toured by a project team from the Energy and Environmental Research Center (EERC) to learn about its operations systems. The EERC is performing a study, funded by the state of North Dakota, to gather and report on leak detection methods and processes, which will drive future Solutions is part of the work group initiated by the EERC to assist in their study mission. “The Hidden Bench Project utilizes industry-leading monitoring equipment and safety practices that will hopefully pave the way for a more reliable and trustworthy gathering pipeline future for the entire industry,” says Slick. w



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



port of vancouver

Port of Vancouver USA – The route to success

Loading proppants to rail cars at the Port of Vancouver USA, bound for North Dakota via The Advantaged Supply Chain™. In 1804, Lewis and Clark formed an expedition to find a viable route across the western half of the continent to the Pacific Ocean and open up possibilities for commercial trade. Through its prime location, logistics expertise, and longterm connections with the people and resources that streamline importing and exporting, the Port of Vancouver, USA is carrying on this tradition and making it infinitely easier, faster, and more costeffective to ship goods to and from the U.S. midcontinent and Pacific Rim. The Advantaged Supply Chain™ – the most direct, uninterrupted route from the Pacific Rim to the U.S. midcontinent Efficient trade routes to and from the U.S. midcontinent and Pacific Rim have never been more critical as shippers seek to cut costs and save time when importing and exporting goods. That’s why many 88


Customers ship smarter and faster via the Advantaged Supply Chain™, the most direct, uninterrupted route from the Pacific Rim to the Port of Vancouver USA and through to the U.S. midcontinent. of them are partnering with the Port of

situated on a 43-foot deep-draft shipping


channel. It specializes in handling break

The Port of Vancouver, located only 106

bulk, bulk and project cargos, with

river miles from the Pacific Ocean, is

dedicated facilities for shipping wind

port of vancouver

energy components, automobiles, grains, wood pulp, mineral ores, and agricultural commodities, among others. The port’s strategic advantage is that it can offer its customers the Advantaged Supply Chain, the most efficient, direct, uninterrupted route between the Pacific Rim and the U.S. midcontinent. Customers save almost half the time – and thousands of dollars – compared to shipping through Gulf ports. Two Class 1 railroads – BNSF Railway and Union Pacific Railroad – serve the Port of Vancouver and offer cost-effective rates. The port has nearly completed a $275-million rail expansion that will allow trains carrying millions more tons of cargo annually to move easily through the port and reduce rail mainline congestion by as much as 40 percent. Terminal 5, the port’s newest shipping terminal, offers

unit train-loading capability and features a dedicated track specially designed to load cargo to rail for transport to the U.S. midcontinent and Canada.

The port also has a staff of logistics

The Port of Vancouver makes moving products via heavy-haul trucks easy, too. Its location near key freight corridors, including I-5 and I-84, provides quick access to major north-south and eastwest routes. Transloading goods to barges on the Columbia River ensures easy access to inland ports serving the midcontinent.

“We’ve made numerous strategic moves

Minimize handling times and costs with the port’s streamlined ship-to-rail transfer with state-of-the-art cargo loading assets; 54 acres of land for on-port storage; specialized equipment, including two 140-metric-ton Liebherr mobile harbor cranes; and highly skilled equipment operators.

appreciate our high level of service and

experts who work closely with customers to plan the best routes that save time and cut costs. in the last several years to invest in the equipment, people, facilities, and infrastructure to ensure our customers can get their products to market stressfree,” said Alastair Smith, chief marketing and sales officer at the Port of Vancouver. “It’s paid off through satisfied customers who tell us repeatedly that they logistics expertise.” Companies that partner with the Port of Vancouver USA not only save time, they also cut costs and ship smarter, taking the worry out of shipping across the country or across the ocean. w

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.



edward jones

Financial focus Control your emotions in volatile markets For the past few years, the stock market has moved up fairly steadily, with no major “corrections”. But thus far in 2015, we’ve already seen periods of volatility – enough, in fact, to make some investors jittery. Nervous investors may be more prone to make decisions based on shortterm market movements – so how can you stay calm? First of all, when evaluating your investment decisions, stay focused on those factors that have historically driven stock prices. The U.S. economy is growing at a reasonably good pace, and corporate earnings remain fairly strong. Plus, stocks may not be as undervalued as they were a few years ago – as measured by the price-to-earnings ratio (P/E) – but they still aren’t overly expensive, either. Things can change, of course, but when market volatility seems to be primarily caused by short-term events, such as plunging oil

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prices, it’s important to look beyond the headlines to these less glamorous, but probably more important, fundamentals of good investing. By doing so, you can help avoid making fear-driven investment choices. What else can you do to help ensure that you don’t let feelings of anxiety influence your investment moves? For one thing, evaluate your investment mix. If you own too many stocks and stock-based vehicles, you could take a big hit if stock prices fall sharply during periods of volatility. Historically, however, bond prices have typically increased when stock prices fell – although, of course, there are no guarantees. So, if your portfolio consists of stocks and bonds, you are better positioned to weather the harshest effects of market turbulence. To further prepare yourself for downturns, you may also want to diversify your fixed-

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

income holdings to include investments such as U.S. Treasury bills, certificates of deposit (CDs), and municipal bonds. The percentages of each type of investment within your portfolio should be based on your goals, risk tolerance and time horizon. Finally, you can help yourself maintain an even-keeled approach to investing by always looking for quality. Typically, higher-quality investments fare better during market declines and recover more quickly when the markets rebound. How can you judge whether a particular investment is of good “quality”? A longterm track record is useful to study. It’s certainly true that, as you have no doubt heard, “past performance is no guarantee of future results”, but it’s nonetheless valuable to know how a particular stock, for example, has performed in various economic environments. If it seems to have done well relative to others in its industry and over long periods of time, that may give you a good idea of its quality. It’s never easy to take all the emotions out of investing, especially during periods of market volatility. After all, you count on your investments to help provide you with the type of future you’ve envisioned. But by focusing on the fundamentals, putting together an appropriate investment mix, and constantly looking for quality, you can help “de-stress” yourself – and, as the American poet, novelist and historian J.G. Holland once said, “Calmness is the cradle of power”. This article was written by Edward Jones for use by your local Edward Jones financial advisor. w


Digging in the dirt Baranko Bros. augments environmental services in the Bakken By Jillian Mitchell

Big dirty jobs and a rock-solid reputation – that's the Baranko Bros. way. In essence, the family-owned-and-operated company out of Dickinson, North Dakota attributes its nearly 50 years to a strong foundation built on three key principles: honesty, reliability and readiness. "We've been in business since 1967; we're closing in on 50 years – it's a real accomplishment," says current president and CEO Glenn Baranko. The secondgeneration owner took over for his father, Emil, 15 years ago. "We've got a good safety track record, a good reputation for quality work, and many long-term customers and employees." Baranko Bros. stems from modest roots – namely, two brothers (Emil and Ernie) with a shared desire for stock dams on the family ranch, and two pieces of soil-moving equipment. Today, those modest roots have flourished into 200 earthmovers, trucks and trailers, plus pickups, and anywhere between 100 and 150 employees, depending on the season, as well as clients in both Dakotas and into Montana. True to its beginnings, the original shop still exists on the family ranch, 20 miles north of Belfield, though the majority of work is situated out of the 22,000-squarefoot Dickinson headquarters, which was expanded in 2013 to better cater to the oil boom. On the cutting edge is where the company likes to be, and where there's an unfilled niche, Baranko Bros. is

typically on it. Last year, for instance, the company specializing in heavyearth moving, pipelines, trucking and oilfield services acquired the assets of an environmental company, shortly thereafter adding services such as remediation of contaminated soils and saltwater, NORM surveys and transportation, 24/7 spill response and related services to its already extensive lineup. "This is a newer venture," says Baranko of the company's environmental branch. "We've been doing this type of work for sometime, but just now we've taken it to a whole 'nother level." Baranko cites the company's building of a special-use landfill south of Belfield for oilfield waste as a prime example of this next level. The idea of creating a one-stop shop is one that appeals to the company president. "There aren't a lot of companies that can come in and do

everything," he says. "We can come in and do the remediation, testing, and we have the construction side to support it." Technology, naturally, serves an important role in supporting this new cutting-edge venture. Baranko's company, which has decided to go paperless where possible, leaning toward iPads and laptops, continues to operate intelligent dozers armed with GPS for efficiency and accuracy. But Baranko is particularly excited about the company's recent acquirement of its first drone, which will be introduced into the surveying branch. The drone is among the first of its kind in the region. When it comes to the future, Baranko affirms that he and his team will continue to build upon the company's existing legacy. And of course, there'll be lots of "big dirty jobs”. For more information on Baranko Bros. Inc., please visit the official website at w BAKKEN OIL REPORT – FALL 2015


With oil success, there’s still a need In “Highway Headin’ South“, Dolly Parton sings about North Dakota getting the best years of her life. Undoubtedly, people from across our state would heartily nod their heads in agreement, that North Dakota truly provides a wonderful place to live.

homelessness, by HUD’s strict definition

realize that is only half of the picture,” says

of literally homeless. The primary cause

Michael Carbone, executive director of

is lack of affordable housing. According

the North Dakota Coalition for Homeless

to a report released from the National

People. “People don’t realize the incredible

Low Income Housing Coalition, people

cost of living in North Dakota.”

Life for many, however, has changed dramatically within the state. As the tagline of the city of Williston so aptly states, “Welcome to Boomtown, USA”. North Dakota is certainly booming; from income from oil revenue, revenue from property sales, and in homelessness.

working between 61 to 79 hours a week

Since 2010, homelessness has tripled in North Dakota. This year alone, more than 10,000 people are expected to experience

“The reality is that people come to North

is 28,085. While the Department of

Dakota being told there are good jobs,

Education definition of homelessness is

but when people pull into town they

broader and includes families who are

living in North Dakota need to be at minimum wage in order to afford a one-bedroom unit in which to live. This is hardly news for most North Dakotans, as prices for apartments in Williams County are listed from anywhere between $2,000 up to $5,000 per month.

One of the most difficult pieces of this hardship is the large number of children who do not have a place to call home. In North Dakota, students who experience homelessness automatically qualify for free meals in school. According to the North Dakota Department of Public Instruction, that number for 2015

SD TouriSm

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doubled up in unsustainable solutions, this heartbreaking reality is hard to grasp. In a state that is so prosperous, so well off – with over 1.3 billion sitting in the bank – we have children going to bed hungry and homeless. Homelessness continues to severely impact people’s lives. People experiencing homelessness are at a much higher risk of infectious and chronic illness, and are more often victims of violence. According to the CDC, the mortality rate is four to nine times higher than those who are not homeless. Exposure to the elements, sheltering in crowded areas, and lack of access to healthcare and hygiene products are all elements that contribute to that factor. “When we talk about preventing homelessness in the first place, we have to talk about providing affordable housing for everybody; providing accessible health care for everybody, and providing adequate income to function in our society for everybody,” states John Lozier, the executive director for the National

Healthcare for the Homeless Council. “We have failed on all three fronts, so far.” The question certainly then becomes, what is the solution to this epidemic of homelessness gripping our state? One key component is partnership with the multiple companies that have come to do business in North Dakota. Homelessness is a complex problem that requires a complex solution and we need the resources and expertise of many. It is incredibly beneficial having the leaders in these companies step up and share their ideas and input with the organizations in our communities that impact change. Many organizations coming to North Dakota also realize the importance of good stewardship, and the importance of giving back to the communities that their workers call home. They know that by investing in the communities, they are investing in their workers lives, and the quality of the entire community. The challenges that cause a person to become homeless can affect anyone. The need for support and resources for

the organizations on the front lines of homelessness is paramount. And the need has never been greater. We have a wonderful opportunity for companies to provide that support; to come alongside organizations throughout our state to help ensure that everyone has a place to call home. “With wealth comes responsibility, and with opportunity comes challenges,” says Carbone. “I believe that North Dakotans are ready to step up to those responsibilities and challenges.” w

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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.



bartlett & west

Engineering firm integrating technology to streamline pipeline workflows For Bartlett & West and the firm’s pipeline clients, the answer has been the integration of technology solutions to provide an environment that allows collaboration of individuals working on components of the project across location divides and multiple applications. This was accomplished by leveraging enterprise-level spatial database management systems as a central repository for project data, then providing customized interfaces to the data tailored for each group working on the project. Whether it be planning, design, surveying, right-of-way, permitting, or completion of as-builts, each group has specific needs for consuming and contributing data for the project, and each group is dependent on one another’s data. Interaction with a project’s data must be dynamic and collaborative or schedule, budget and integrity issues can quickly arise.

When activity really started ramping up in the Bakken in the past decade, Bartlett & West – an engineering and technology solutions firm that has had an office in the region for the past 35 years – felt well positioned to provide producers and midstream companies the engineering solutions to be successful in the play. However, the firm quickly learned the complex dynamics of energy projects. “Although Bartlett & West has installed more than 30,000 miles of cross-country pipeline throughout the midwest, we were not totally prepared for the pace in which our energy pipeline clients desired to have their projects completed during the boom that was happening in the Bakken,” said Jame Todd, energy director at Bartlett & West. It quickly became evident that business as usually was not going to cut it. Bartlett & West needed a fresh approach that would allow them to complete work in near real-time, or in other words, to design on the fly, while still maintaining the high-quality standards needed to meet regulatory commitments. This is a very difficult task, and with the technology that existed at the time, nearly impossible. 94


Jason Fetch, senior GIS project manager at Bartlett & West, explains, “The need for technology arises far before the conception of a project. At the beginning of the relationship with a client, we will build a web-based mapping application complete with relevant geospatial data from both public and private data sources. This allows project planners and business development resources to easily access the data they need to make the best possible business decisions.” Through the comprehensive mapping site the firm has developed, the project team can conceptualize a pipeline project where the routes that have been created can be accessed directly by others on the project team. Once a project is given the green light, the team can immediately began work without having to wait for data. The right-ofway group can generate a landowner line list on-demand and begin the process of obtaining the right-of-entry and easements. The data generated by land agents is managed though an application tailored to their workflows, but is stored in the same repository as all other project data. The data is then visualized in real-time and can be accessed on-demand by other project groups through the mapping website, with mobile devices or through desktop applications. The key is that no matter what interface a group uses, everyone is consuming the same data. This means that team

bartlett & west

members are consuming data or contributing data when they need it, without having to wait for data transfers or having to worry about the data not being the most up-to-date version. As the project progresses, the surveyors and other field staff can track the right-of-way efforts to see if they can enter a property without having to wait for a report to be compiled or to speak with a land agent that has limited accessibility. As field data is acquired, it is loaded into the project’s database, which provides direct access to the engineering staff, whom may be spread out in many different geographical locations. Through the construction phase of the project, reroutes are quickly vetted. When as-built data is captured, it’s maintained within the project database alongside of inspection reports and pipe tallies, providing efficient QA/QC process and the ability to visualize progress in near real-time. Since all project data is maintained within a central repository, project closeout is made easier. “Although technology has greatly enhanced our ability to effectively complete pipeline projects, there is much more to it than simply using computers, software, and websites. It requires the application of people, technologies, and procedures to provide a successful solution,” said Todd of the Bartlett & West’s approach to pipeline projects. w

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

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!





Performance products for productivity in hydraulic fracturing low-pressure systems Dixon Valve & Coupling Company has been building a credible reputation in the petrochemical industry since 1916, and regularly demonstrates that it’s a responsible manufacturer that produces safe, reliable, and long-lasting products. Over the last few years, a Dixon focus has been on the upstream segment due to the technology evolution within the directional drilling and hydraulic fracturing processes. New product line development began by investigating and understanding the challenges end users experience when transferring hazardous and non-hazardous materials. They zeroed in on the low-pressure system transfer applications that exist between water

Today, Dixon has many Boss LPS (lowpressure system) parts being used in hydraulic fracturing applications within North America. The products in service include hose fittings, flange adapters, repair split-nuts, caps, plugs and suction manifolds with no reported failures and/or safety issues.

storage tanks, blenders, manifolds, and

Tony Haston, marketing specialist/energy,

the high-pressure pumps.

for Dixon explains their team’s approach.

“We visit end-user worksites and study the challenges that exist on the low-pressure side of fluid transfer. We’ve learned that threads and welds are common failure points because they have a higher likelihood of succumbing to abrasion and aggressive liquids. We then utilized Dixon technology to eliminate welds and threads by developing one-piece iron, steel and forged products to address the safety and environmental challenges when transferring hazardous materials.” “An exciting product is the one-piece suction intake manifold that feeds slurry into high-pressure pumps. Customer input has been invaluable on this application, and the feedback has helped guide our direction on a solution.” End-user feedback on manifolds: • Leaks along the weld seams are a regular nuisance. • Repairs consist of re-welding and/or using rubber washers with screws. • Sand dropout causes flow restrictions, and pump cavitation is common. • CO2 transfers at -30°F temperatures, and can cause performance issues.




• Manifold working pressures are 350 PSIG, with test pressures of 525 PSIG. • Acidizing well treatments use Hydrochloric (HCL) and Hydrofluoric (HFL) acids in concentrations ranging from 15 to 28 per cent. Dixon objectives & results: • Eliminate flow restrictions and welds when designing intake manifolds. • Utilize flow geometry in the manifold design to minimize sand dropout existing in the suction manifolds used today. • Use one-piece iron manufacturing technology to eliminate seven to 18 weld seams. • Include user-friendly inspection ports. • Designed and patented 3-Port and 5-Port intake manifolds for HHP pumps. • Lab tests completed for pressure (350 PSI) and cold (-62° F), and test results are available by sending a request to • Field testing was conducted, and results are available by requesting brochure IMBP415-1P1M to marketing@

Port intake manifold velocity profile.

Three-port intake manifold parts explosion.

Open communication with customers and following through with solutions strengthens trust in Dixon as a supplier of both current and future products. Dixon is committed to delighting customers by being the easiest company they do business with every day. Dixon, founded in 1916, is a premier manufacturer and supplier of hose couplings, valves, dry-disconnects, swivels, and other fluid transfer and control products. The company’s global reach includes a wide range of products for numerous industries, including petroleum exploration, refining, transportation, chemical processing, food & beverage, steel, fire protection, construction, mining and manufacturing. w

Three-port intake manifold.

How can Dixon help you? For more information, visit, or call (877) 963-4966. BAKKEN OIL REPORT – FALL 2015



Using dissolved oxygen to remediate frack water By Shea Casey

Rockwater Energy fracturing tank.

QEP pit.

Fracturing operators are responsible for


the costs of remediating, recycling, and/ or disposing of frack flowback water. The recent drop in oil prices, coupled with ongoing regulations, has prompted many of these operators to search for ways to reduce these costs. A growing number of such operators are discovering the lowcost benefits of using dissolved oxygen. Dissolved oxygen (DO) works through


at least four pathways in frack water treatment. First, when injected via an

Contact Don Ell, Williston General Manager


STOP BY AND VISIT US AT 9124 Derrick Avenue Williston, ND

aerator, DO keeps the flowback water from entering a state which is similar to sepsis. Septic conditions can arise when flowback water is left idle for weeks or months. This water can become resistant to all but the most high-dollar, chemically severe biocides. Second, DO can form oxides with the metals and other constituents in flowback

water. Being heavy, these oxides typically will drop to the bottom of the pit bringing some clarity to the water.




Third, DO ramps up the population of aerobic microbes. These microbes can “process” and remove the hydrocarbons and various organics in the water. In effect, they reduce the food source needed by the anaerobic microbes, causing these microbes to die off. Many of the challenges of flowback water are caused by anaerobes such as acidforming bacteria, which cause corrosion and sulfate-reducing bacteria, which create H2S. Once the food sources in the frack pit are diminished, the aerobic bacteria themselves begin to die off. By using DO, the operator can often reduce the amount of biocide needed, thus saving considerable money. Fourth, DO is known to retard the formation of ice in a body of water. By injecting copious amounts of DO below the surface of the water, the operator can

continue operations year round in very cold temperatures. In a few cases, DO can actually bring the flowback water to the point that it can be injected directly into a disposal well or else to the point of recycling. In those cases where more sophisticated remediation is needed, DO can act as a pre-treatment making the other remediation equipment more cost effective. There is no shortage of aerators on the market. However, a new self-aspirating aerator has recently become available which is causing quite a stir for its lowcost, high-efficiency, and flexibility in operation. Already the aerator has been purchased repeatedly by such companies as QEP Energy, Rockwater Energy Solutions, Purestream Services, and FlexChem Corporation, to name a few.

This aerator is sold by FracCure, LLC, and it operates equally as well in large fracturing pits as it does in portable 500-gallon frack tanks. It has been reported to operate continuously where nighttime temperatures reached 20-degrees-belowzero Fahrenheit. FracCure has been approached by both Rio Resources and HED Environmental Systems among others, each wanting to make the FracCure aerator a part of their large-scale remediation technology. Operating on the physics principles of centrifugal force and precession as applied to rotating fluids, this aerator offers the best all-around value in fracturing pit aeration. Shea Casey is the managing director of FracCure LLC. FracCure can be reached by calling 866-802-2455 or visiting w

INTRODUCING THE STATE-OF-THE-ART AERATOR WHICH CAN OUTLAST AND OUTPERFORM OTHER AERATORS WHICH HAVE FIVE TIMES THE HORSEPOWER • Cuts power consumption in half • Never needs to be greased • Virtually clog free • Has no internal moving parts • Requires no maintenance • Made of corrosion-resistant materials

Works great in Frac pits and Frac tanks as well as municipal treatment plants, aquaculture farms, wineries, breweries, animal feedlot lagoons, and more. FracCure LLC is a distributor for VaraCorp LLC.

Go to or call 512-847-5026 (Shay) or 325-245-9783 (Richard). Toll free at 866-802-2455. BAKKEN OIL REPORT – FALL 2015



Competition: A necessary evil? By Reed Reimer This is where I feel that competition serves its true purpose: innovation. Innovation doesn’t necessarily mean that you have to invent something new. What it means to me is you have to find a new way, or more importantly, a better way to do something that everyone else is doing. For our company, beyond improving production or response times, or the ability to handle more work, we can work to do things that our competition doesn’t. Our innovation is to provide a complete solution for customer problems. They can make one call to solve a problem and trust that the company will not only come up What is competition good for? I mean, besides causing frustration when they outbid you, or when they cause that little tiny bit of rage when you see their logo? Competition is really good for the customer, especially if all they care about is the price point, but really, competition is good for each person or company who has a competitor. I know that given the choice, each of us would most likely choose to have an exclusive deal, or control the entire market through a monopolistic situation, but that’s when problems begin. For many years, our company R&R Contracting had a regional advantage on our home turf in North Dakota. Because of this, we had a lot of customers, and were able to handle that workload. When our company started expanding and the Bakken formation began developing, we had to make a decision: do we keep serving the customers we had, or do we do our best to grow by adding new customers and adding some massive jobs to our backlog. 100


For a while, we did our best to serve both, but over time reality caught up with us and we focused on new customer and company growth. Over a couple years, those old customers were calling less and less, and we began seeing competitor’s vehicles more and more. This situation made sense, as we wouldn’t have been able to serve every customer at a competitive price as there was too much work, but it didn’t change the fact that we still don’t like seeing our competitors stomping around our turf.

with and offer that solution, but they will

With oil and gas markets cooling down, and our company’s growth expanded to a national level, our list of competitors has grown. With growth, we have built up our resources to better serve not only the new customers, but the historical ones as well. So here’s our dilemma; how do we get back the customers that are now entrenched with competition that filled the void we left… and, how do we win more new customers on the national stage?

better ways to offer our services. I want

do it all in-house, thereby improving the communication, and the experience factor. Yes, we offer the same services that our competitor can offer, but can the competitor say that they’re performing every step of the process themselves and taking complete control and responsibility of each step? We can. Our competitors aren’t going away, and I don’t want them to. I want them to keep pushing our company to find new and them to push us to continue improving. There is nothing greater than when a new customer calls on you when your competitor didn’t do as good a job as the customer expected. And even better, when you win work because the quality of the work performed was the reason the customer calls you back. Reed Reimer is vice-president of business development at R&R Contracting. w

Railroad and Civil

New Construction Inspection Maintenance Repair Design

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


Pro Tank Products surging ahead in the Bakken Pro Tank Products Inc. (PTP) is a North Dakota-based steel manufacturing company that produces oil storage tanks for the Bakken oilfield and surrounding areas. The company has two production facilities, one located in Minot, ND producing 100-to 400-barrel steel tanks, stairway and walkway, and a new 70,000-square-foot facility in Plentywood, MT, which opened for production in September 2014. The new facility consists of a state-of-the art welding and paint shop, which allows for efficient production of 100- to

1,000-barrel steel tanks of any design. The new 20,000-square-foot paint shop is designed to apply external paint and internal coating for tanks in a controlled environment. PTP strategic locations on both the east and west sides of the Bakken give clients a financial advantage by decreasing both the costs and complexity of the logistics of moving finished tanks to well sites. PTP’s mission statement is to provide the industry with the highest-quality, lowestcost steel production tank in the Williston Basin Region.

“There is no comparison between our old shop and the new state-of-the-art production facility in Plentywood. Even though our shop in Minot is still a highly functioning facility, our new facility is equipped with the latest CNC technology managed by an in-shop mechanical engineer. This allows PTP the ability to design and build an almost unlimited range of products to meet the unique specifications of our clients,” said Dr. Todd Marsh, president of Pro Tank Products. “Our shop manager, supervisors, and foreman are second to none, and have

CSI™ dryers are the industry standard in Vertical Cuttings Dryer. Every major solids control and waste management service provider relies on CSI™ vertical cuttings dryers.


Durability Triple the screen life when compared to competitor products.

Expandability Proprietary and patented screens developed specifically for water-based drilling fluid applications.

Innovation Patent-pending direct drive system that removes the need for sheaves, a belt tunnel and belts. 102


PRO TANK products

over 50 years of combined experience in tank production and pipeline construction and maintenance. In the first four months of operation in the new shop we have designed and built products in size from simple 100-barrel burp tanks to 1,000-barrel tanks with internal floating roofs. The shop is designed to meet the industry demands of complexity, quality, efficiency and safety.” In addition, Pro Tank Products remains at the forefront of sustaining an accidentfree workplace, consistent with OSHA regulations for safe manufacturing workplace standards. The 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 with

Pro Tank Products is committed to the local community. applicable safety, environmental, and transportation laws and regulations. PTP is also in the process of certifying their production facilities with the American Petroleum Institute.

In terms of product output, Pro Tank

Pro Tank Products is committed to the local community.

increases that are consistent with revenue

“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.

Products will double its storage tank output during their 2015 production year, currently underway. In the longer term, PTP will maintain production goal 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 new, state-of-the art, 70,000 square foot manufacturing facility is now 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. 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 – FALL 2015



Vapor recovery units comply with new EPA standards and increase profits If you’re an energy producer in the United

combustor or a vapor recovery device) by

States, you are probably already familiar

April 15, 2015.

with the EPA’s Quad O regulations. These regulations were designed to establish emission standards for the control of volatile organic compounds (VOC) and sulfur dioxide (S02) emissions specific to on-shore oil and natural gas facilities constructed, modified or reconstructed

Affected facilities include hydraulically fractured gas well completions, storage vessels, continuous bleed pneumatic controllers, reciprocating and centrifugal compressors, equipment leak detection and repair, and S02 sweetening units.

after August 23, 2011. Quad O states that

Crude oil storage tanks hold oil for a

all storage tanks must have employed

period of time to stabilize flow between

a control device (either an enclosed

production wells and pipeline or trucking

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


Vapor Recovery Units are automated systems which automatically start, stop, and bypass as pressure is increased in

• 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


transportation sites. During storage, part of the crude oil vaporizes or “flashes” and collects in the space between the liquid and the top of the tank. As the temperature of the crude oil increases, the amount of vaporization increases along with the pressure in the tank. As the vapor cools, it condenses and pressure inside the tank decreases.



the tanks, and capture up to 95 percent of vapors to prevent them from escaping and posing health and environmental risks. Here’s another significant benefit that VRUs provide to producers: recovered vapors consist of light hydrocarbons containing propane, butane and gasoline, which contribute to the gravity of crude oil. When they are vented to the atmosphere, a reduction of gravity in the oil occurs, decreasing its value. Because recovered vapors have a much higher BTU content than pipeline-quality natural gas, they can result in substantially increased profits for the producer. To ensure optimal control and monitoring of vapors, a VRU must have reliable instrumentation in place that is capable

of accurately measuring low pressure, such as the NOSHOK 625/626 Series Intrinsically Safe Transmitter. This sensor offers low-pressure ranges, including -4 oz/in2 to 12 oz/in2, 0 oz/in2 to 12 oz/in2, 0 oz/in2 to 16 oz/in2, 0 inH2O, to 50 inH2O and 0 inH2O, to 100 inH2O (as well as standard ranges from vacuum to 15,000 psi with absolute ranges available). The 625/626 Series transmitter provides the high level of accuracy required for this application, ±0.125 percent Full Scale (BFSL), and is Factory Mutual & CSA compliant for Class I, II and III Div. 1, Class II and III Div. 2, & Class 1 Zone 0. This transmitter features welded 316 stainlesssteel construction with no internal o-rings, gaskets or seals, and is entity approved for use with all approved Zener barriers where required. w


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




Under Pressure Transmitter basics for application and selection By Carl Wilmarth

Pressure measurement is one of the most important process measurements made not only in oil and gas applications, but across all industries. We use pressure and differential pressure transmitters to make gauge, absolute and differential pressure measurements directly, as well as for level, flow and density measurements in a variety of applications. After selling and working with pressure transmitters for over 38 years, we still see a lot of application and performance questions on a daily basis. This article is an abbreviated overview of an initial discussion of the information that we train and discuss from a sales and application standpoint to ensure that we provide the correct transmitter for the application with the best possible accuracy at the most cost-effective price. Correct selection and application begins with an understanding of what the basic pressure measurements are, how they are related, and the transmitters capability to make the correct measurement. Pressure by definition is force per unit area. The units are pounds, kilograms, bar or other units of weight applied to a unit area, usually a square inch, yielding for example pounds per square inch (PSI). The next thing that is required is to determine what the reference point of the measurement is (Figure 1). All pressure measurements are related to some type of atmospheric, or lack of atmospheric, influence on the measurement, so it is important to know which reference point should be used, and if the atmospheric conditions are to be included in the measurement or not. At sea level, we have approximately 14.7 PSI pressure on the surface of the earth due to the effect of the atmosphere. If this pressure is to be included in our measurement, we would reference it to complete vacuum and we would use an absolute transmitter. If we negate (compensate) for the effect of the atmospheric pressure on the measurement, we would use a gauge measurement and use the appropriate transmitter to make that measurement. In the case of a gauge pressure transmitter, the low-side pressure port is open so it sees the influence of atmospheric pressure on it, and on the absolute unit it is sealed and evacuated so that the 106


influence of the atmosphere will add to the high-side pressure port and is included in the measurement. Typical applications for gauge pressure are either straight process pressure measurement or as a tank level measurement. For instance, in an open-top tank, the level is a combination (sum) of the atmospheric pressure, the height of the liquid level in the tank times the specific gravity of the liquid that creates the pressure on the high-side diaphragm, minus the atmospheric pressure from the low-side port of the pressure transmitter. This yields a true level in inches, minus the effect of atmospheric conditions on the measurement. Level = [ATM+ {liquid height x specific gravity of liquid}] from highside port – [ATM] from low-side port Inches may be converted very easily to PSI and a gauge pressure transmitter can be used for this application. A differential pressure transmitter open on the low side may read out directly in inches H2O and is often used for the same liquid level measurement with the advantage that if the tank is closed-topped, the internal pressure may be routed into the low-side pressure port to negate the tank pressure on the level measurement. Absolute measurements, which take into account the effects of atmospheric conditions, are made for certain gas calculations and also for air-handling systems where volumes of air need to be exchanged based on current atmospheric conditions. The last area that we will reference in this article is differential pressure measurement. This measurement is made at process conditions usually across an orifice plate that will create a differential pressure drop across it, high pressure being upstream and low pressure downstream of the plate. A differential pressure transmitter makes this measurement relative to the two points upstream and downstream from the plate, which creates the differential measurement, usually measured in inches of water column. We most often see this measurement across an orifice plate or used as an indicator of a filter or backwash fouling or plugging indicating a filter cleaning or back wash is required.

pressure drop  across  it,  high  pressure  being  upstream  and  low  pressure  downstream  of  the  plate.   differential  pressure  transmitter  makes  this  measurement  relative  to  the  two  points  upstream  and downstream  from  the  plate,  which  creates  the  differential  measurement,  usually  measured  in  inch water  column.  We  most  often  see  this  measurement   across  an  orifice  plate  or  used  as  an  indicator LATECH EQUIPMENT a  filter  cleaning  or  back  wash  is  required.       filter  or  backwash  fouling  or  plugging  indicating   Figure 1

Figure  1  

Further discussions from this point revolve around applications Carl Wilmarth is the owner of LaTech Equipment, a manufacturer’s and transmitter selection, understanding transmitter turndown representative in the Rocky Mountain States, who has been andFurther   complete d discussions on understanding true transmitter applying and selling pressure transmitters for overs37 years to iscussions  from  this  point  revolve  around   applications   and   transmitter   election,   underst accuracies in field applications and may be addressed in further all major industries. He is the local Autrol pressure transmitter transmitter  turndown  and  complete  discussions  on  understanding  true  transmitter  accuracies  in  fi articles. representative. w

applications and  may  be  addressed  in  further  articles.    

Carl Wilmarth  is  the  owner  of  LaTech  Equipment,  a  manufacturer’s  representative  in  the  Rocky  Mo States,  who  has  been  applying  and  selling  pressure  transmitters  for  over  37  years  to  all  major  indu He  is  the  local  Autrol  pressure  transmitter  representative.       Cut Monitor Combustible and Toxic Gas Detection

Not just Smart Transmitters, It’s Smart Business

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


modern group

Oil change Adjusting with the economy By Tammy Schuster

Changes in the economy means making adjustments in business, and that means Mandy Raps, marketing manager for Dragon Products, is busier than ever. “We aren’t big on titles and corner offices over here,” says Raps from the head office in Beaumont, Texas. “We wear whatever hat needs to be worn to get the job done.” Dragon Products, family owned and operated since 1963, manufactures severe-duty energy and industrial equipment from facilities located throughout the United States. While the phone rings and emails ping in the background, Raps talks about how the changing economy is changing the way her customers are spending. “With oil prices where they are, customers are looking to extend the life of their current equipment,” she says. “They’re looking to liquidate idle equipment or buy used equipment at competitive prices.” Dragon recognizes the value they can offer customers with their vast inventory of used equipment. “Given the current climate in the oilfield, it’s the right time to show the market what we’ve got.” Dragon, a respected supplier to the oilfield for more than 50 years, knows how to acclimatize to a changing environment. The company has expanded its manufacturing facilities and service centres in all major shale plays, and recently opened a 40-acre usedequipment super center in Midland,



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.

modern group

Texas. Hundreds of pieces of used oilfield equipment are on display at the super center, with additional distribution centers in Oklahoma, North Dakota, Colorado, Ohio, and Pennsylvania.

dip in oil production. Operators have been forced to run more efficiently and be more innovative with their practises, which are positioning them for success in the changing economy.

“We are trying to offer our customers an alternative to going to auctions where they face uncertain outcomes. If they want to buy, sell, or consign with us, they have more control over the outcome and, quite possibly, a better financial outcome.”

Another sign of longevity is the need for permanent employees in the Bakken region.

At the Dragon Service Center in Williston, North Dakota, a change in the economic climate means a change in strategy. “The wild west show is over,” says Ben Braslawsce, regional sales manager. “Several companies have moved out of the shale play due to excessive overhead, while others have committed to the long-term play and have adapted to the current and future market.”

“Most employees in the Bakken are on rotation and that is beginning to change,” Braslawsce says. “Companies are starting to require employees that want to work in the Bakken to move there. Man camps are becoming an aspect of the past.” Dragon continues to increase its service line and add production equipment, while focussing on its newest venture, the full-line of used equipment sales.

Braslawsce says Dragon Products is one of those companies committed to a long-term presence in the shale play and has adapted accordingly.

The Dragon Service Center in Williston has a full warehouse of aftermarket parts to support all of its equipment for same-day delivery, and the company’s expert service teams are equipped to handle the on-time delivery of parts that succumb to the cold weather operations.

Even with the current rig count in the Bakken at 73 in midAugust – down from 83 in May – it did not translate into a

With people, equipment, and strategies in place, this operation is ready for the challenges of any approaching economic cold front. 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


PEC Basic Intro to Pipeline The only safety orientation for the pipeline industry

PEC Safety, in conjunction with Veriforce, is proud to announce

Some of the topics covered in Basic Intro to

the creation of Basic Intro to Pipeline, an orientation module,

Pipeline are:

which can be used to enhance PEC’s Basic Orientation, Basic/10,

• Agencies and regulations relating to the pipeline industry

or Core Compliance. This module is customized for workers in the midstream/pipeline segment of the oil & gas industry. Basic Intro to Pipeline will be available to anyone that has already completed

• Preparation for pipeline transportation • Pipe handling • Hazardous materials

PEC’s Basic Orientation, Basic/10, or Core Compliance; or as an

• Transportation of hazardous materials

additional module to PEC’s Basic Orientation, Basic/10, or Core

• Equipment operation and maintenance

Compliance class. This module is available via instructor-led (PEC

• Excavation and guidelines for pipeline

Safety), as well as computer-based 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. Upon completion of the Basic Intro to Pipeline module, proof of training will be entered into PEC Safety’s training database. Training can be verified through

Instructor Led – Available through PEC Safety’s nationwide thirdparty trainer network. To find a trainer in your area, visit www. Computer-Based Training (CBT) – Available in Veriforce’s online safety training library. To gain access to CBT Basic Intro 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/become-an-instructor. For a limited time only! The Basic Intro to Pipeline Train the Trainer course will be offered free of charge to current authorized PEC instructors. Upon completion of your instructor update, you will have the opportunity to watch a short webinar and take an exam on this module, thus authorizing you to teach the module. Materials will be available to complement instructor-led PEC Basic Orientation, PEC Basic/10, or PEC Core Compliance; Basic Intro to Pipeline workbook and SITAS will be sold together for $25. For more information regarding the PEC Basic Intro to Pipeline module, or to purchase workbooks and SITAS, please contact PEC Safety’s training support department at 844.848.5884, or email us at trainingsupport@ w



PEC H2S END USER (4-HOUR) PEC Safety has developed a 4-hour standalone H2S course titled “PEC H2S End User.” This course can be used to enhance PEC’s Basic Orientation, Basic/10, or Core Compliance. These PEC courses have shown employee safety performance improvements throughout the oil and gas industry. PEC H2S End User can do just that for industry workers who may come in contact with hydrogen sulfide during their regular day to day job duties. The PEC H2S End User (4-hour) course prepares general industry workers by providing crucial knowledge of the dangers of H2S and the precautions, tools and controls necessary when working in H2S environments. This course covers the classroom requirements of ANSI Z390.1. PEC H2S End User is available as a standalone course via Instructor or can be taken as a predecessor to PEC Basic Orientation, PEC Basic/10, or PEC Core Compliance course. There are no prerequisites for this course, however, it is recommended students complete PEC Basic Orientation, PEC Basic/10, or PEC Core Compliance to meet general industry safety awareness and orientation requirements.

With hundreds of authorized PEC trainers nationwide and a Train the Trainer available for companies with in-house trainers, PEC Safety makes it easy for your company to obtain PEC H2S End User. Ensure your employees are trained on standardized H2S topics required by operators and regulatory agencies in the most complete and cost effective program developed by PEC Safety, the leader in safety training for the oil and gas industry. Upon successful completion of PEC H2S End User course, the student will be issued a PEC ID card that displays their photo, name, company name, and scannable barcode on the front and training documentation on the back. Also, all training will be entered into PEC Safety’s training database. In addition, PEC Safety has a completely free tool called ( that allows employees, employers, customers and noncustomers to view and verify employee completion of PEC H2S End User.


Date Topic


H2S End User (4-Hour) 01-15

DISCLAIMER: This card-holder has not met the requirements to work in H2S environments above the Occupational Exposure Limits (OEL) until such time as the Employer provides and documents additional, applicable training required by 29CFR, including medical evaluation, fit test, and use of respirator, monitor and rescue equipment specific to the work place.

PEC Safety | 866.647.2338 | |




What does “sensor speed” mean and why is it an important aspect of gas monitors? By Robert Zurek, communication & sales marketing manager, oil and gas, Dräger

Seconds can mean the difference between life and death in the oil and gas industry; it is important that gas monitors’ sensor speed be considered when selecting the right instrumentation to safeguard workers from harmful gases. While a disparity between five and 10 seconds may seem minimal on paper, in a real-life situation those few seconds can determine whether or not a worker walks away from a lethal gas event, especially one involving H2S (hydrogen sulfide). H2S is one of the most deadly gases and is commonly known as sewer gas, and sour gas, among others. It is incredibly lethal and any inhalation of H2S in a sufficiently high concentration can cause death.

As the gas concentrations increase, both monitors will continue

It is vital that gas monitors featuring rapid sensor speeds

to respond to the gas. After a minute and 35 seconds of gas

be used, as they are commonly the first line of defense in

exposure, the device with the 15 second T-90 time will measure

protecting workers from toxic gas. Vividly illustrating the

15 ppm and go into an A2 alarm. The worker wearing this

importance of rapid sensor speed on life safety during an H2S

monitor, having been notified of the dangerous conditions, will

event is the following scenario showcasing the difference

be able to evacuate the area. Even though the monitor with

between a sensor with a T-90 time (the time it takes for a sensor

the longer T-90 time will have been exposed to the same level

to read 90 percent of the test gas concentration) of 15 seconds

of gas for the same amount of time, it will take an additional

versus a sensor with a T-90 time of 25 to 40 seconds.

42 seconds for it to reach full A2 alarm to alert the user of the

When H2S gas is introduced to these two monitors neither

presence of 15ppm of H2S.

monitor will immediately react. After a few seconds, the

During these 42 seconds of 15ppm exposure, the worker will

instrument with a T-90 time of 15 seconds will begin to register

be subject to eye irritation, headache, dizziness, nausea, throat

a gas amount. The device that has a T-90 time of 25-40 seconds

and eye irritation, and coughing and breathing difficulty.

will show no digital readout on the screen.

Additionally, by the end of these 42 seconds the actual level of

The numbers on the device with the T-90 time of 15 seconds

exposure will have risen to nearly 20ppm. At this point, all of

will continue to climb until they read 10ppm (parts per

the previous symptoms will continue to worsen and memory

million). At this point, the other device with the longer T-90

loss may occur.

time will have yet to register a reading even though it will

As companies strive to keep their workers safe, it is essential

have been exposed to the same amount of gas. The worker

that they equip their crews with the solutions that will warn

wearing this device will start to suffer from a decreased level

them of harm before it is too late. Through using a device with

of muscle activity and oxygen in the blood. This same worker

a lower T-90 time, companies can achieve this and provide

will experience this for a total of 10 seconds without the alarm

greater assurance to workers that they have the safety support

sounding to warn of the dangerous H2S level.

needed to quickly and effectively escape a harmful gas event. w




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. 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. Additionally, Taney Engineering is a one-stop-shop for numerous other oilfield services, including material testing, geotechnical analysis, and civil engineering design. Does your company ever 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 the results. They also provide a full range of civil design services, 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. Call Taney Engineering at 701.858.8900 in Minot, or 701.570.4438 in Williston. w




Keeping the industry connected Midwest Hose & Specialty Founded in 1983, Midwest Hose & Specialty has steadily grown into one of the largest industrial hose suppliers in North America. We specialize in oilfield products, and offer a large variety of hydraulic, rotary and industrial hoses, fittings, adaptors, valves, and thousands of other specialty items. In addition to highquality MWH-branded hoses, we provide second-to-none service and unmatched value to all our customers. We have worked hard to become the premier hose distribution company in the United States, and we are grateful for the trust our customers have placed in us. During the past few years, Midwest Hose has added several new products that have contributed to our dramatic sales growth. One of those products, large diameter layflat hose, is constructed from thermoplastic urethane (TPU) and reinforced with a woven

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 116


polyester jacket. TPU layflat hose is used to move large volumes of water very long distances, and it solves many problems in the field caused by traditional aluminum pipe. Layflat hose deploys quickly, and two workers can lay down a minimum of three miles of hose per hour. Layflat hose also transports more efficiently than hard pipe, with three miles of eight-inch diameter hose per truckload. Layflat hose is offered in 660-foot lengths (eight sections per mile), versus 176 sections of hard pipe per mile. With fewer connections, layflat hose has far less potential for environmental leaks, and the flexible nature of hose eliminates time-consuming and expensive path-cutting work by adapting to the natural ground contours of each job site. From the beginning, Midwest Hose & Specialty committed to offering our customers a tough, high-quality layflat hose, and we have consistently improved our QC system to ensure that our customers receive the best hose on the market. Every single layflat hose that we ship is proof-tested and serial-numbered for traceability, and test certificates accompany each TPU layflat hose order. In 2014, Midwest Hose began offering our own MWH fieldattachable layflat hose fittings in two styles – grooved and Storz – along with cast aluminum clamps. Both are machined in-house, at our headquarters in Oklahoma City. In addition to layflat hose and fittings, in January 2015 Midwest Hose & Specialty proudly rolled out its engineered hose deployment system. With design features aimed at increasing efficiency, our deployment system has further reduced the time required to deploy one length of hose to under a minute on level ground. Our sturdy hose reels are designed to work with our deployment system, and make for easy, compact storage without the need for cradles or stands. Midwest Hose & Specialty is a trusted name in water transfer products, with hundreds of miles of layflat hose in service. We also offer a large selection of suction hoses, flanges, pigging products, flow meters, menders, strainers and crossings. We truly are a one-stop-shop for all your water transfer needs. All you need to do is just add water! Midwest Hose isn’t satisfied with offering quality layflat hose and a great system for picking it up and putting it down in the field. We’ve recently introduced a lease/purchase option on our layflat


hose, kindly inquire directly for more information on our lease/ purchase program. With 24 locations nationwide, Midwest Hose & Specialty carries one of the largest inventories in the United States. No matter where you are, we can quickly service your requirements for timely deliveries. This is the same philosophy we have for all our products, and the formula for the growth we’ve enjoyed the past three decades. Excellent service is our specialty.

Every single layflat hose that we ship is proof-tested and serial-numbered for traceability, and test certificates accompany each TPU layflat hose order. These days, hard work is not just limited to our hose products. Expansion continues at our main Oklahoma City campus, with over 300,000 square feet of additional space currently under construction. By the end of 2015, we will have three hydraulic repair facilities performing maintenance on motors, pumps,

cylinders, valves, actuators, and accumulators. Rebuilds and repair work will also be performed. The Midwest Hose marketing team recently updated and released a new 100-page product catalog. Our IT department has been busy updating our website, and we are thrilled to announce the development of the MyMWH smartphone app. The MyMWH app is now available for download from Apple iTunes and Google Play stores. MyMWH allows users to access contact information and get directions to each of our locations. More importantly, it will allow users to scan barcodes in our catalog, accessing upto-date sales and technical information on all the products we offer. One of the more powerful features of the MyMWH app will be to also scan labels of our products in the field, immediately accessing detailed information on that specific hose assembly and also track historical data, like when it was built or recertified. Quality, service, innovation, and 24 convenient locations nationwide. Midwest Hose & Specialty is keeping the industry connected! Visit, call (800) 375-2358, or email w

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 – FALL 2015



Cold-weather girth weld coating application issues By David D’Ambrosio and Richard Norsworthy, Polyguard Products, Houston, Texas, USA

There are many types of coatings that have been used on pipelines around the world. Some older technologies are no longer used and new coatings are being developed to meet the demands of the changing environments in which pipelines are constructed. The environment considered in this discussion is that of extreme cold weather. When coating girth welds on plant-coated pipelines during cold weather conditions, the applicator must consider many factors in selecting the type of coating to be applied. The extent of preparation and amount of money the contractor or owner is prepared to spend will be determining factors in the selection criteria. Coatings systems must be properly selected for the environment in which they are to be used. Environmental conditions are not specific to application, but also include the storage environment, service life conditions, such as operating temperature, soil stress and backfill conditions. Successful coating performance also requires proper surface preparation and adequate cure time prior to backfill. Existing low-temperature coating solutions all have limitations. Cold temperature in North Dakota can average 2.2 degrees Fahrenheit in the depth of the winter and reach extreme low temperatures of less than -50 degrees Fahrenheit with average high temperatures of 23 degrees Fahrenheit. These extreme conditions demand products and processes able to withstand such conditions. Many coatings work well in cooler temperatures, but few work in these frigid conditions. Some coatings can be formulated for these harsh environmental conditions, but still require additional work process modifications. Even those materials designed to work at extreme low temperatures may require long cure times and may not cure at all if the temperature drops below the acceptable range. If the weather is too cold, the coatings may not cure or mix properly. If the substrate is too cold, curing and proper adhesion may not occur. The procedure in general includes ensuring that the product is kept in a warm environment immediately prior to application. All coating materials must be stored in heated storage containers in the temperature ranges identified in the manufacturer’s recommendations. Even when transported to the job site, the coating materials must be properly stored in the proper temperature ranges, as well as being kept out of inclement weather 118


such as snow, rain, wind-blown debris and other things that may affect the coating performance. Once at the job site, the coating material must continue to be kept in the proper temperature range during the surface preparation stage, mixing and application (wrapping, brushing, troweling, rolling, spraying, etc.). One of the most common mistakes is to throw the coating in the back of the construction truck early in the morning when the coating is warm and within a short time, the coating temperature is out of the required temperature range for proper application. The other issue is the temperature of the pipe. This relates to the cure of the coating, the primer or the adhesion of the compound to the pipe. If the pipe is not heated to the proper temperature based on the manufacturer’s recommendations, the coating will not function as intended. Overheating the pipe can also cause the coating to fail by causing over cure or compound damage. If the pipe or air temperature cools too quickly, that will also affect the coating performance. When air or pipe temperatures drop below 45 degrees Fahrenheit, some coating types are not only difficult to apply, but may not cure properly. This has been the case with some two-part epoxies and other liquids coatings that have been used in the Bakken shale area during the cold weather months. Even the cold weather cure varieties do not always provide acceptable service when applied in some of these extremely cold environments. Two-part epoxies and other liquid-applied coatings are very good coating systems when used and applied properly. Surface preparation is a critical component of coating performance and the pipe surface must be blasted for proper adhesion and the surface warmed for these epoxies to cure properly. Even if these coatings appear to cure, the cure may not be complete. When the pipe is handled during construction activities, the epoxy can crack because of the under cure. In some cases, even when cured properly, the extremely cold temperatures can cause these epoxies to crack during normal construction activities. For these reasons, many companies are now turning to using meshbacked tapes that allow more flexibility in these extreme conditions. When stored properly and applied properly, these products have been proven to perform well once applied to the pipe.


As with all coating systems, the pipe surface must be properly prepared and protected from the elements during the application process. The pipe should be preheated to remove moisture and provide enough temperature in the pipe to provide a quick cure for the primer and residual heat for providing good adhesion of the tape’s compound to the pipe surface. When applied with proper tension on a pipe that is properly prepared in the right temperature range, then these products have a proven history of success without significant disbondments or issues with cathodic protection (CP) shielding if disbondments were to occur. A non-CP-shielding, non-adhering outer wrap is then applied over the mesh-backed tape to provide a slip plane in the event of soil stress problems. This outer wrap also provides additional protection to the soft compound under the mesh backing in the event of rocks or other hard places with backfill. This is a simple economical process that provides a great advantage to the coating performance. The advantage of the mesh-backed tape is that as soon as it is applied there is no more curing to take place. The pipe can be buried or allowed to cool and handled without concern for damage to the coating from the weather conditions. Caution during construction handling will prevent damage to the mesh-backed girth-weld coating.

The time to apply this coating system is less than most systems, so the work is not exposed to the extreme weather conditions as much as with some of the other coating types. The equipment needed for the application is minimal and simple to operate. Once the applicators are properly trained, they can quickly apply this coating system without much waste or excessive work or equipment. As with any coating in extreme conditions, the best practice is to protect the girth-weld area using a tent to allow for better control of the air and pipe temperatures. This is an expensive process and is not always available when coating field joints in extreme weather. The mesh-backed tapes may be the best option, especially at times when these areas are not being tented with proper temperature control. The mesh-backed tapes have been used for over 25 years with excellent success. In the extreme cold environments of the Bakken shale and other such areas around the world, these products provide the end user and contractors with a reliable coating that can be easily applied during these conditions. Once properly applied, these products need no cure time and can be immediately backfilled. Because of the flexibility of these products, the coated pipe can be left above the ditch until the time the construction process allows for it to be installed in the ditch. w

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 smart device or call us at


Innovation based. Employee owned. Expect more.




Service cost reduction strategy By Dennis Zerbst

Now, more than ever, there is an increasing amount of pressure on service centers, both fleet and for hire, to increase efficiency while decreasing costs. How can service managers and directors of maintenance work to bring about a service cost reduction strategy in the midst of increasing costs or labor force reductions? Automation and technology are the best answers to this question. These help the technicians to work smarter and to produce better results in less time. We at Lite-Check

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 •




have been helping shops to increase efficiency and reduce costs since 1986. How can your service operation reduce costs? The Lite-Check Inspector 920 advanced diagnostic trailer tester allows a single technician, using a remote control, to check the lights, brakes, and PLC ABS on a trailer in 10 minutes. That’s right, one technician and once around the trailer to complete the inspection. The tester can also dramatically decrease the time to diagnose an ABS problem and limit the parts needed to repair the fault. How can your service operation increase efficiency? If there is a fault, the Inspector 920 assists in troubleshooting electrical,

air, and PLC ABS faults. This speeds the detection of the root cause and eliminates guessing and parts swapping. For example, using PLC Technology, a technician can see the stored faults in the ABS ECU. These are faults that occurred on the road, but self-corrected. That usually means they are intermittent faults that will steadily get worse to the point of becoming an active fault. Using the Inspector 920 is like looking into the future and seeing the next ABS road failure. Fixing it proactively in the shop saves you from fines, road repairs, and lost productivity. How can your service operation decrease your CSA score? Using an advanced diagnostic tester with a consistent inspection process

yields consistent results. I have been a trailer technician in a fleet shop and know that every technician has their own way of doing inspections. That can lead to inconsistent results and does not serve the fleet well. Using an Inspector 920 with a regimented 10-minute once around the trailer inspection process provides structure and consistency to the inspection process, which will in-turn lead to catching problems in the shop instead of out on the road. And that is at the heart of a strategy to lower your CSA score. Please check out and call us at 1-800-343-8579 if we can assist you with your service cost reduction strategy. w

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 – FALL 2015



Maximize your investment dollars

King shelter. D & G Polyethylene Products Ltd. is proud to offer one of the

buildings which can be utilized for storage, and freeze protection

largest rotational molding services in Western Canada, and is

for water injection wells, gas wells, and headers. A new addition

committed to manufacturing quality innovative products at

to our product line is a variety of switch valve shelters for oil

exceptional prices.

sands tailings ponds. Our shelters are all shipped fully assembled

The main product line of our well-established company focuses on maintenance-free insulated polyethylene shelters and

and require no on-site construction. D&G Polyethylene Products Ltd. has one of the largest bi-axial rotational molding ovens in Western Canada. This allows us the capability to mold exceptionally large seamless products, like our nine-inch by nine-inch-by-nine-inch-high “King” shelter. Our rugged, durable, insulated shelters come in a variety of sizes ranging from a seven-inch-three-foot “Conical”, to a spacious 16-inch-by-48-inch modular building. We offer a complete line of accessories, such as plexi-glass windows, panic hardware, louvered vents, Cata-Dyne heaters, and an affordable, prompt

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

delivery service throughout Canada and the United States. In 2003, D&G Polyethylene Products Ltd. expanded from our NORTH DAKOTA FARGO: 701.232.1822


foot modernized facility. We are able to offer in-house product design, as well as mold fabrication. With our 125,000-pounds

GRAND FORKS: 701.219.0920

capacity silos and automated material handling system in place,

MINOT: 701.839.5400

of purchasing our raw materials in bulk, along to our valued

BISMARCK: 701.425.5791

our clientele better.

D&G Polyethylene Products Ltd. is able to pass the savings customers. We are constantly upgrading our equipment to serve


Our management team has over 40 years combined experience

ST. PAUL: 651.389.4191

service, as well as affordable, and prompt delivery services.

3522 4th Avenue South • Fargo, ND 58103 • 701.232.1822 122

original 4,000-square-foot production area to a 14,500-square-

in rotational molding and product design. At D&G, we take pride in assuring clients superior quality control of products, friendly D&G Polyethylene Products Ltd. is committed to manufacturing quality products at exceptional prices. Please visit us at www. w


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




Eide Ford Diesel & Fleet Services offers expertise and experience to Bakken customers By Lisa Fattori

For more than two years, Eide Ford Diesel & Fleet Services has served energy producers and field support businesses operating in the Bakken oilpatch. A division of Eide Ford Lincoln in Bismarck, North Dakota, Eide Ford Diesel & Fleet Services was created to offer Bakken oilfield customers a dedicated service center that specializes in Ford truck repairs. With some of the most experienced certified technicians and senior master certified technicians in the area, Eide Ford Diesel & Fleet Services 124


offers a high level of expertise, quick turnaround times, full warranties, and dependable service. "We just welcomed our second senior master Ford-certified technician, who specializes in transmissions," says Jackie Bius, manager of Eide Ford Lincoln. "These are highly sought-after specialists, so we're very lucky to have two. Our repair center's team has combined experience of 67 years, with technicians who know Ford vehicles better than anyone. Our customers can be sure that they are

getting the best-quality workmanship and speedy service." Eide Ford Diesel & Fleet Services offers expertise and experience in servicing Ford F-250, F-350, F-450 and F-550 pickup trucks. The service center provides repairs to a wide range of field support vehicles, including water trucks, welding trucks, and vehicles to transport people and equipment. Located on the corner of 26th Ave. and Morrison Ave., Eide Ford Diesel & Fleet Services is situated just off of the Bismarck Expressway, with convenient,


easy access. Customers also experience quick service so that there is minimal disruption to operations because of broken-down vehicles.

The service center offers 10 bays to accommodate a large volume of vehicle repairs on a daily basis. “Our goal is to get customers in and out as quickly as possible, so that there is very little downtime with their vehicles," Bius says. "We know how important it is to get these trucks back into service and our customers really appreciate our quick turnaround times. We can have vehicles repaired and back to customers within three days. For a lot of service centers, there's a three-week wait just to have your truck looked at, so the time savings we offer is quite significant." The service center offers 10 bays to accommodate a large volume of vehicle repairs on a daily basis. Ford factorytrained truck and diesel technicians participate in ongoing training and skills development to keep abreast of changes in the industry. Staff has access to the latest Ford diagnostic software and 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 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 progress of their repairs and we have a master-certified warranty officer onsite, so we can deal with warranties very 126


quickly. Our technicians are capable and willing to undertake any challenge, and we have all resources available to us to handle any situation."

customer lounge, complete with Wi-Fi

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. Afterhours drop-off and pick-up is available, and the service center can arrange for tow service. For customers who prefer to wait for vehicle repairs, a shuttle service is available to transport people to the Eide Ford Lincoln dealership, just a mile down the road, where there is a comfortable

customers, and we continue to grow and

service. "This service center was created because of the high demand for services by oilfield expand to meet that demand," Bius says. "Customers appreciate our dedication to customer service and our commitment to repairing vehicles quickly so that they can get back to the field." Eide Ford Diesel & Fleet Services is located at 2508C East Morrison Avenue in Bismarck. Hours are: Monday to Thursday (7:30 a.m. to 5:30 p.m.) and Friday (7:30 a.m. to 5:00 p.m.). Closed Saturday and Sunday. For more information, call 701-595-0251 or visit 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



Larson Electronics LLC – Explosion-proof lights for hazardous locations Larson Electronics’ explosion-proof lighting is a heavy-duty, high-output lighting solution for hazardous locations. Consisting of industrial-grade construction, intense illumination, and Class 1&2 Division 1&2 ratings, these lights are built to provide operators with a safe, luminous work environment. At Larson Electronics, we pride ourselves on providing the latest and greatest in lighting designs to help enhance performance, efficiency, and extreme longevity. We offer a wide variety of powerful, energy-efficient lighting solutions. Product offerings include light towers, portable lights, surface-mount lights, light masts, handheld lights, task lights, and work area lights. Ideal for hazardous locations, these lights can be used for rigs, tank cleaning, paint booths, refineries, offshore drilling, and other applications where flammable chemical/ petrochemical vapors exist or have the potential to exist. Larson Electronics HAL-24-16W-LED is a low-voltage explosion-proof lighting solution Class 1 Division 2 environments and ETL 1598 compliant for use in wet locations. 128


Portable lighting Portable lighting can range anywhere from lights on pedestal mounts to lights on quad-pods with wheels for easy movement from one workspace to another. For example, our EPL-TL-C-F is a metal halide light fixture mounted atop a wheelbarrow-style cart. This unit is available in 18-inch or 24-inch diameter versions and is considered a universal tank light as it can be passed through most conventional manholes and entries. To provide added versatility, the upper cage light portion of this light has a flange-mount option that enables users to mount the light head in a suspended position from an overhead man-way. Larger-scale portable lighting includes the EPL-QP-2X150RT-100, which is a quad-pod mounted light tower equipped with two Class 1&2 Division 1&2 LED light heads capable of illuminating an area 8,500 square feet in size. This light tower is equipped with two solid rubber wheels to allow the operators to tilt the unit back and simply roll the entire assembly to a new location when fully deployed. Surface-mount lights Among our product offerings is the HAL-48-3L-LED-BMSW which is a fourfoot-long, three lamp, Class 1 Division 2 hazardous area LED surface mount light, best known as a rig mast light. This fixture is constructed of copper-free aluminum alloy and powder coated for added durability. Equipped with three of our specially designed T-series bulbs, this unit

is visibly brighter and has over twice the life service of a standard T8 fixture. Another one of our surface-mounted lights is the HAL-13-8W-LED-1227, which is an LED strip light, also known as a cabinet light. This fixture is a lowvoltage hazardous location lighting solution approved for Class 1 Division 2 environments and U.L. 1598 compliant for use in wet locations. This powerful LED strip light produces 442 lumens, operates on 120-240V AC with a step down transformer and is suitable for a variety of applications. Power distribution Other product offerings include portable power distribution systems, which will convert one type of voltage to another type of voltage, while enabling operators to power a variety of devices from multiple receptacles. We offer several pre-configured substations. Many times, however, these temporary power distribution substations are built to the customers’ specifications. One of our most popular power distribution systems is the MGL7-4802X120V, which transforms 480V threephase to single-phase 120V AC and 240V AC 60Hz. This power distribution system provides operators with the ability to safely tap into and distribute 480V AC power from sources like generators and direct power grid. It’s on a dolly cart-style systems, so operators can tip it back, roll it where needed and connect primary power.


LED lighting Maintaining lights in hazardous locations is not only expensive, but is also a safety risk. With little to no maintenance, LEDs provide operators with less downtime due to loss of light for maintenance and also prevents a safety hazard. While we do offer a wide variety of incandescent and metal halide lighting solutions, most of our focus is on LED lighting. The solid-state This quadpod-mounted design, explosion-proof LED cool light tower from Larson running Electronics produces 24,000 lumens of light. operation and extremely long operation life are just some of the

many beneficial attributes provided by LEDs. Customize your lighting At Larson Electronics we like the challenge of creating new lighting configurations. With 40-plus years of manufacturing experience, Larson Electronics has an extensive knowledge of how to quickly develop new lighting solutions that will fit our customers’ specific lighting needs and requirements. Supporting the continued development of new products for customers, we can provide lighting layouts and 3D models of the lights themselves. Please, give us a call or send us an email to discuss any special requirements or needs. About Larson Electronics Since 1973 Larson Electronics has manufactured industrial lighting and

power distribution products. Our products are used by refineries, military bases, paint spray booths, oilfield operations, shipyards, and manufacturing facilities around the world. Larson Electronics continues to develop custom solutions while maintaining an extensive inventory of established products for immediate shipping. Learn more by browsing our collection of information and products at Contact details Larson Electronics LLC 9419 E US Highway 175, Kemp, Texas, 75143 USA Toll-free: 1-800-369-6671 International: 1-903-498-3363 Fax: 1-903-498-3364 w



Six planning imperatives for oil and gas companies in volatile times By Geoff Hill, Deloitte

When I think about the price of oil these days, Newton’s law of universal gravitation inevitably comes to mind: what goes up must come down. After five years of commodity prices well “up,” sure enough they came back down, the price per barrel of oil sliding to under $50 from over $100 in only eight months. Even if the slight uptick we started to see at the time of writing in February holds or continues, this is neither the first nor the last price bust we will see. The opportunity now, then, is to apply lessons learned from past business cycles and avoid repeating the same mistakes. When times are tough, it’s tempting to retreat. Hard choices must be made – but it’s critical that companies do not put long-term goals in jeopardy.

efficiency. The goal is to cut the right costs to meet short-term needs without impeding long-term goals. But don’t cut anything that would harm the company in normal times, because that will leave you at a disadvantage when higher prices return. Beyond cuts, meanwhile, costs can be reduced by optimizing operational efficiencies and by analyzing vendor contracts, among other approaches. It is also important to distinguish between indispensable “business partners” and those who are simply “vendors.” This will better ensure you’re reaping maximum cost benefit from these relationships while still reducing costs. In any event, before you cut, you must know the impact of each cost so you can be aware of potential ripple effects.

We’ve already seen the headlines about layoffs and cancelled/ suspended projects, but it’s not too late to implement a strategy to see you through the current low-price environment so that you are poised for growth when prices inevitably rebound.

2. Portfolio management

More specifically, we see six key areas, as follows, that demand careful and deliberate planning – even if the plan is to do nothing.

fiscal position, now may be the time to make acquisitions. If your

It’s too simple to say it’s either a buyer’s or seller’s market. Depending on your assets and liquidity, you may be in a position to buy or a position to sell. For instance, if you are in a strong company is fiscally challenged, however, divesting non-essential assets may bring new strength and stability. Optimize your portfolio by examining your assets to determine whether they

1. Sustainable cost reduction

support your strategy. Consider what business you want to be in

Cost reduction initiatives are often the first resort when the market turns sour, but they often fail to deliver lasting results. Our view is that you cut if you must, but use a scalpel and magnifying glass. Cost reductions must support strategy, mitigate risk (including any new risk you plan to accept) and enhance

and how you will get there. Is it a time to diversify or specialize? 3. Financial management Money talks, so listen up. The key to financial management in volatile times is to have a stable foundation to weather the storm

LT Environmental, Inc.

1400 North Broadway Minot, North Dakota


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 | 130


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

and proactively position yourself for future growth. This may require corporate or tax restructuring, or changes in how you balance shareholder value with reinvestment in the business. Remember that companies need liquidity to survive, which could come from optimizing working capital or external debt, but must be sufficient to meet the organization’s short- and long-term needs alike.

for growth or risk mitigation. Create a foundation of action

4. Talent management

Strategic decisions are usually based on conditions the

Layoffs appear to be inevitable in tough times, but they shouldn’t have to be. Now more than ever it is crucial to retain top talent wherever possible. Some down- or right-sizing may be called for, but it is imperative that you keep your best people – they’re very hard to get back. Besides, you don’t want your competitive advantage going to a competitor. Given how costly it is to re-train and re-hire employees, now is the time to innovate engagement programs and performance management systems to maximize the passion and productivity of all employees. Workforce analytics, for instance, can offer a deeper look at corporate and HR data to identify efficiencies and cost savings, especially in terms of over-time or productivity.

that you can bring to your stakeholders to engage them with your strategy. Of course, central to all this planning is careful communications that keep all stakeholders informed and engaged. 6. Strategy

organizations sees directly ahead of it. However, the world moves fast, and the full effect of these decisions may not be implemented until conditions have changed. Scenario planning challenges management to take a long-term view and to make more sustainable decisions – including establishing contingency plans for when the future unfolds counter to plan. Just remember, hope is not a strategy. We’ve been through these price environments before, and will surely experience them again. The key is not to hope the boom days return, but to craft a strategy that prepares your company to take a stronger position when they inevitably do. These are, after all, exactly the sorts of times that distinguish leading companies

5. Stakeholder engagement

from everyone else.

Leaders don’t follow, they lead, so have a plan to manage relationships with banks, boards and shareholders – all key stakeholders, ultimately. Analyze the company’s position with regards to its stakeholders and look for potential opportunities

Geoff Hill is a Calgary-based partner in Deloitte’s Consulting Group, where he focuses on operational excellence and leads the firm’s national oil and gas sector practice. He can be reached at w



Index to advertisers A-1 Evans Septic Tank Service................................................. 10

Hotsy Equipment....................................................................... 33

Ae2s........................................................................................... 87

Inland Tarp & Liner, LLC.......................................................... 11

Alert Plus LLC........................................................................... 84

Jasper Engineering Equipment Co.......................................... 29

Aspen Air................................................................................... 76

JMS Crane & Rigging................................................................ 93

Baranko Bros. Inc..................................................................... 21

Keltek Safety.............................................................................. 81

Bartlett & West.......................................................................... 39


Blue Cross Blue Shield of North Dakota................................. 55

Larson Electronics.................................................................. 129

Bobcat of Miles City................................................................... 57

LaTech Equipment & Supplies............................................... 107

Borsheim Crane Service, Inc...................................................... 2

Litecheck................................................................................. 121

Brady, Martz & Associates, P.C................................................ 58

LT Environmental, Inc............................................................. 130

Cambridge House International Inc....................................... 133

Lynden........................................................................................ 17

Cat-Tek Cathodic Services Ltd................................................. 41

Mattracks, Inc............................................................................ 30

CCI Thermal Technologies........................................................ 73

MDU Resources Group, Inc........................................................4

Claim Post Resource.............................................................. 116

Mi-T-M Corporation................................................................ 136

D & G Polyethylene Products................................................. 123

Midwest Industrial Supply, Inc................................................. 49

Dakota Gasification Company................................................... 23

Millennium Directional Service Ltd.......................................... 59

Devils Lake Economic Development..........................................6

Miller Architects & Builders................................................... 125

Diamond B Oilfield Trucking..................................................... 63

Miller Insulation Co., Inc........................................................... 98

Dixon.......................................................................................... 15

Minnesota Limited, LLC.......................................................... 113

Draeger Safety Inc..................................................................... 12

Motion Industries...................................................................... 67

Edward Jones............................................................................ 25

Netzsch Pumps North America LLC..........................................5

Eide Ford Diesel Services........................................................... 9

Noble Well Services.................................................................. 75

Elgin Separation Solutions..................................................... 102

North Dakota Petroleum Council.................................................

Encore Energy......................................................................... 135

Northern Plains Rail Services.................................................. 35

FB Industries............................................................................. 47

Northern Technologies, Inc.................................................... 122

Fraccure LLC............................................................................. 99

Noshok..................................................................................... 105

Franz Construction................................................................... 10

Oreco.......................................................................................... 19

General Equipment & Supplies................................................ 22

PEC Safety............................................................................... 113

Graham Construction............................................................... 18

Pirtek Fluid Transfer Solutions................................................ 38

Grand International Hotel....................................................... 120

Platinum Grover International................................................ 111

Hampton Inn & Suites............................................................. 130

Plidco......................................................................................... 36

HC Fusion Company.................................................................. 95

Polyguard Products................................................................. 119



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Index to advertisers continued Port of Vancouver...................................................................... 51

Taney Engineering................................................................... 115

Power Service, Inc..................................................................... 71

TCI Oilfiled Factoring................................................................. 34

Pro Tank Products................................................................... 103

Texas Test Trucks.................................................................... 117

QMC Hydraulic Cranes............................................................. 46

Thawzall LLC........................................................................... 131

Quality Mat Company.............................................................. 127

The Modern Group (Dragon Products)................................... 109

R & R Contracting................................................................... 101

Thermal Energy Products......................................................... 90

Rapid City Economic Development.......................................... 92

Trinity Energy LLC..................................................................... 79

Reynolds French & Company................................................... 77

UnitLiner.................................................................................... 32

RJ Corman Railroad Group....................................................... 27

Value Place Williston................................................................. 89

Rossco Crane And Rigging Inc................................................. 60

Volant......................................................................................... 52


Wanzek Construction Inc.......................................................... 69

Sioux Steel................................................................................. 43

Weir Minerals North America.....................................................7

Southern Glove........................................................................ 104

Westcoast Resorts.................................................................... 45



Encore Energy, Inc., the most active operator in south central Kentucky, is currently seeking industry partners to drill shallow oil projects, secure 100,000 lease acres and develop the New Albany Shale in the future. Encore has focused it’s efforts toward the aggressive acquisition of shallow oil and 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 shallow oil and horizontal New Albany Shale projects.

Encore has recently made significant new oil discoveries in Kentucky and is moving forward with an aggressive exploration and production campaign for the following reasons: • Encore Operating Kentucky, LLC has developed strategic business relationships with landowners, well services companies and other industry experts. • Encore owns the rights to extensive geological and geophysical information regarding new oil discoveries, 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.

• 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. • The projected horizontal AFE approximates ~$550,000 – 625,000 per well, potentially lower. • 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 oil and gas discoveries.

For more information, please contact us at (270) 842-1242 or via E-mail at

Profile for DEL Communications Inc.

Bakken Oil Report Fall 2015  

This issue of the Bakken Oil Report takes a look at the Bakken region in the media, construction and infrastructure updates in Williston, an...

Bakken Oil Report Fall 2015  

This issue of the Bakken Oil Report takes a look at the Bakken region in the media, construction and infrastructure updates in Williston, an...

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