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Fall

2019

Davis Refinery aiming to be the cleanest and smartest refinery in the world Pipeline operators come together to develop new tools

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

CONTENTS

President & CEO: David Langstaff

Message from the editor, Shayna Wiwierski – 8 Millennial magnet, a report from the Williston Area Chamber of Commerce – 10 New industry initiative targets methane emissions – 12 Project to minimize Bakken road restrictions – 14 Bakken Development and Working Lands Program – 16 Pressure builds for Bakken crude – 18 The Bakken is driving the economy and workforce efficiencies – 20 Time to build Keystone XL – 22 The cleanest and the smartest: Davis Refinery Design Update – 24 Pipeline operators join forces to develop new tools – 28 The all-in-one solution: Dixon – 30 Optimized coiled tubing string design extends lateral length, improves time to bottom – 32 High productivity while maintaining quality with RD-6 Coating System – 34 BLM 3175: From effective date to implementation – 36 Serving the area: Barclay Construction – 38 Here to help: Troutman Welding and Fabricating – 39 Five powerful facts you need to know about refresher safety training – 40 Bakken Oil Report Marketplace – 41

Managing Editor: Shayna Wiwierski shayna@delcommunications.com Sales Manager: Dayna Oulion Toll Free: 1.866.424.6398 Advertising Account Executives Corey Frazer Colin James Mic Paterson Anthony Romeo Contributing Writers Mark Fonda Stephen Forrester Bette Grande Garrett Kalmback Jenna McKinney Rachel Richter Matthew Todd Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director / Design: Kathy Cable

INDEX TO ADVERTISERS

Advertising Art: Dave Bamburak Dana Jensen

Baker Hughes.................................................................IBC

NOV.................................................................................19

Barclay Construction, LLC...............................................38

Oilfield Waste Logistics...................................................13

Bismarck Mandan Chamber...........................................23

PEC Safety.......................................................................21

All rights reserved.The contents of this pub­lica­tion

Bismarck State College...................................................39

Polyguard Products.........................................................35

or in part, without prior written consent of the

Blue Cross Blue Shield of North Dakota............................ 7

Puklich Chevrolet............................................................41

publisher­.

Borsheim Crane Service, Inc............................................. 3

Pump Systems LLC..........................................................41

While every effort has been made to ensure the

Reynolds French & Company........................................... 9

accuracy of the information contained in and

Riverbend Oil & Gas, LLC................................................33

way guarantees nor warrants the information

Dixon.............................................................................. IFC E3 Environmental, LLC....................................................41 Empire Oil Company.......................................................11 Fox Thermal Instruments.................................................. 5 Graham Construction................................................... OBC Heatec Inc..................................................................27, 41 Keller Consulting LLC......................................................41 KLJ...................................................................................25 Miller Insulation Co., Inc.................................................42

4

BAKKEN OIL REPORT – Fall 2019

© Copyright 2019 DEL Communications Inc. may not be reproduced by any means, in whole

the reliability of the source, the publisher­in no

Rocky Mountain Industrial Supply LLC...........................23

and is not responsible for errors, omissions

Stoneham Drilling Corporation.......................................15

and recommendations made by contributors

Taylor Machine Works.....................................................26

or statements made by advertisers. Opinions or advertisers are not necessarily those of the publisher, its directors, officers­or employees.

TCI Business Capital........................................................17 Thermon Heating Systems.............................................16 Troutman Welding & Fabrication, Inc.............................29 Williston Basin Petroleum Conference ( c/o North Dakota Petroleum Council )...................... 6

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MESSAGE

Message from the editor Shayna Wiwierski North Dakota picked up a few accolades this year. The state was recently ranked number-one by MoneyRates.com for the Best Place to Live for Millennials, who called North Dakota “a magnet for young adults.” Seven factors went into their decision, including unemployment, college tuition, housing availability, cost of housing, Internet access, nightlife, and fitness. Thanks to the upswing in energy, Williston actually has a median age of 31, which is four years younger than the state average of 35. But that’s not all… North Dakota was also named a top reducer of carbon emissions, thanks to recent federal data reports that showed that the state “outpaced all other states in cutting its carbon intensity despite a five-fold increase in oil and natural gas production between 2009 and 2016.” So clearly, there is a lot going on right now, both with energy and society. In the fall issue of the Bakken Oil Report, we look at a number of topics that North Dakotans should be excited about. Everything from new industry initiatives that target methane emissions, to a project that will minimize Bakken road restrictions, to even an update on the Keystone XL pipeline. Oh, and let’s not forget all the supplier features that I know you, dear readers, have come to know and love. I hope you enjoy this issue of the magazine, and as always, if you have any questions, concerns, or story ideas, please feel free to send them my way. Strike oil! shayna@delcommunications.com @DELCommInc

8

BAKKEN OIL REPORT – Fall 2019


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REPORT

Millennial magnet By Rachel Richter Lordemann, President, Williston Area Chamber of Commerce TrainND has recently rolled out their One Basin, One Way! program to provide affordable, standardized safety training for producers and contractors in the Bakken.

professionals under 35 in many of those key areas, most notably: • Unemployment: The unemployment rate in Williams County is 1.5 percent compared to a national average of 3.6 percent. According to Job Service of Williston, there were 1,434 available jobs in July 2019. Not only are those job openings in the oil and gas industry, they spread across all sectors, including There is a certain energy in the air around Williston, ND – and it’s not just coming from well sites! Williston is becoming a mecca for young professionals, and the creativity and innovation they are bringing to our community is palpable. North Dakota was recently ranked as the Best Place to Live for Millennials by MoneyRates.com who called our state “a magnet for young adults.” Williston, ND

has a median age of only 31 – four years younger than the state average of 35. When choosing the best place to live for young adults, seven factors were taken into consideration: unemployment, college tuition, housing availability, cost of housing, Internet access, nightlife, and fitness. Thanks to our energy boom, Williston is ahead of the game and leading the charge in North Dakota for

medical, education, agriculture, and more. A visit to jobsnd.com will show the vast opportunities for employment at all education levels, with almost 80 percent of available jobs only requiring an associate’s degree or high school diploma. This means that those for whom a traditional college education isn’t fitting can still find the start to an incredibly successful career.

North Dakota was recently ranked as the Best Place to Live for Millennials by MoneyRates.com who called the state "a magnet for young adults". 10

BAKKEN OIL REPORT – Fall 2019


Summer interns at the Williston Area Chamber of Commerce and economic development.

• College tuition: For those that are looking to kick-start their career with a college education, Williston State College boasts one of the most impressive tuition assistance programs in the nation. Any high school graduate from Williams or one of any nine surrounding counties can attend Williston State College tuition free through the Williston State College Foundation. Students can receive degrees that position them for success at four-year institutions or can earn certificates and associate’s degrees that will set them up for success in any of the Williston area’s booming industries. Additionally, TrainND has recently rolled out their One Basin, One Way! program to provide affordable, standardized safety training for producers and contractors in the Bakken. All of this and so much more make Williston an exciting place for millennials. The career opportunities in our area for those under 35 are unmatched anywhere else in the nation. You will find smart, capable young people leading our energy industry, involved in local politics, teaching our next generation, and owning and operating successful businesses. There are even more exciting, attractive expansions to come. The Williston International Airport will begin operations on October 10th, opening up our region to expanded air travel and making our community even easier to access. The former Sloulin Field Airport site will offer space for increases in affordable housing, schools, and medical facilities, and tremendous opportunities for new retail, dining, and community facilities. Williston Public School District is currently fundraising to create an Innovation Academy that will help to shape our next generation of young leaders.

I would encourage any young person,

energy workforce will prepare you to

especially those looking for a place to

succeed in any career path you choose.

start their career, to come to Williston!

To learn more about the job opportunities

Not only are there a great number of job

and programs mentioned above,

opportunities, but the professional and

visit jobsnd.com, willistonstate.edu,

personal development that comes from

xwaproject.com, and

working in Williston’s fast-paced, high-

willistonschools.org. w

Empire Oil Company offers a comprehensive package of oil and gas land services. Located in the heart of the Williston Basin, the Bakken Shale and Three Forks formations, we are in the midst of the largest on-going energy play in the United States. Our clientele come from a wide spectrum of industries, from closely held corporations to larger publicly traded companies. We currently provide services in the states of North Dakota and Montana.

• Mineral and leasehold ownership • Title research and examination • Lease acquisition • Abstracting land, mineral and royalty title • Title curative • Due diligence • Seismic permits • Site and surface evaluation • Land use permits • Pipeline/ROW agreements • Appraisal of mineral acres Empire Oil Company 510 2nd Street W. Williston, ND 58801

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BAKKEN OIL REPORT – Fall 2019

11


REPORT

New industry initiative targets methane emissions By Matthew Todd

A July workshop by The Environmental Partnership in the Bakken drew more than 75 attendees representing over 20 different organizations. In addition to its status as one of the nation’s top energy-producing states, North Dakota can claim another important distinction: top reducer of carbon emissions. Based on federal data, reports show “North Dakota outpaced all other states in cutting its carbon intensity despite a five-fold increase in oil and natural gas production between 2009 and 2016.” State regulators and operators are working together to build on that progress and further reduce greenhouse gas emissions – including emissions of methane. A groundbreaking new industry initiative is part of the solution. Launched one year ago with 26 companies, The Environmental Partnership (the partnership) now includes almost 70 nationwide member companies focused on concrete actions to reduce the industry’s environmental footprint. Individual companies have their own 12

BAKKEN OIL REPORT – Fall 2019

The workshop also included updates from the North Dakota Petroleum Council on regional production and emissions trends, as well as regulatory developments and challenges.

successful methane reduction initiatives – contributing to a 14 percent reduction in methane from industry operations from 1990 to 2017, even as production has soared. But the partnership brings those competing companies of all sizes together to pool knowledge and jointly tackle methane emissions. The effort’s first progress report, released in July, tracks significant progress. In the partnership’s first year, participating companies conducted more than 156,000 site surveys and discovered leaks in just 0.16 percent of components – a small fraction of EPA’s estimated 1.4 percent leak occurrence rate. Within 60 days, 99 percent of those leaks were repaired. The partnership’s participating companies have made a concerted effort to eliminate aging equipment like highbleed pneumatic controllers – replacing, retrofitting, or removing more than 30,000 of these devices – 3,000 in 2018 alone.

Information-sharing and collaboration represent a key pillar of the initiative. The partnership has held workshops in major producing regions across the country – including the Texas Permian, Oklahoma, Pennsylvania, North Dakota, and Colorado – bringing together operators, regulators, equipment manufacturers, and university researchers to identify solutions and share best practices. A July workshop in the Bakken drew more than 75 attendees representing over 20 different organizations – including Lime Rock Resources, the North Dakota Department of Environmental Quality, and the North Dakota Petroleum Council. Participants heard in-depth presentations from Bakken operators on the optimal usage of equipment, such as high-volume combustors, tank vents and thief hatches, as well as the ongoing challenges local operators face. Given the Bakken region’s large temperature swings during the year, there was added emphasis to


Participants at the Bakken workshop heard indepth presentations from Bakken operators on the optimal usage of equipment, such as high-volume combustors, tank vents and thief hatches, as well as the ongoing challenges local operators face.

ensure proper equipment operation to minimize emissions during all seasons.

participants on efforts to monitor

Partnership is already a model for leading

and improve air quality, noting the

efforts to further reduce methane

The workshop also included updates from the North Dakota Petroleum Council on regional production and emissions trends, as well as regulatory developments and challenges. The North Dakota Department of Environmental Quality briefed

importance of state and federal

emissions from natural gas and oil

regulators working closely with industry

operations, continuously creating

to make the most meaningful impacts.

pathways for new technologies and

That kind of coordinated effort is at the heart of The Environmental Partnership. At its outset, The Environmental

techniques to address environmental challenges – while providing the energy vital to every American family and business, now and for decades to come. w

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REPORT

Project to minimize Bakken road restrictions Anyone who’s driven on gravel roads knows they can turn into a muddy mess when it rains. It’s tough for people who live on those roads, but it’s a real problem for oilfield truckers because weight restrictions are imposed and they’re shut down until conditions improve.

WDEA plans to install up to 50 weather stations throughout western North Dakota, effectively saturating areas with the heaviest oilfield traffic. Seen here are NDAWN installers James Hyde and Alex Rushing at the Arnegard site.

The need to protect the roads from damage is understandable, but because heavy rainfall can be spotty, county highway managers have been known to impose weight restrictions where they’re not really necessary. Oilfield truckers naturally complain, but road managers can’t do much about it because it’s impossible to know the condition of all the hundreds of miles of roads in western North Dakota. That’s about to change, thanks to a project launched by the Western Dakota Energy Association (WDEA). Called Wise Roads (Weather Information System to Effectively Reduce Oilfield Delays and Disruption), WDEA is in the process of installing weather monitoring stations throughout the oil-producing counties to provide local governments with weather information, especially precipitation data, to help guide road restriction policy.

The Wise Roads project kicked off in late June with the installation of the first 10 weather stations (seen here), all of which were sited adjacent to well pads, gas processing plants or other industry facilities.

14

BAKKEN OIL REPORT – Fall 2019

WDEA, which operates the LoadPass Permit system for the counties to manage the movement of oversize trucks, is partnering with the North Dakota Agricultural Weather Network (NDAWN) on the project. WDEA plans to install up to 50 weather stations throughout western North Dakota, effectively saturating areas with the heaviest oilfield traffic. The Wise Roads project kicked off in late June with the installation of the first 10 weather stations, all of which were sited adjacent to well pads, gas processing


Hawkeye storm watch. plants or other industry facilities. Plans call for installing 15 more stations this fall, and if a WDEA grant application to the state Oil & Gas Research Council is successful, another 25 stations will be scattered around the Bakken next spring and summer. In addition to providing temperature and precipitation data, each station is equipped with a subsurface probe that measures soil moisture and temperature, which can guide decisions in the spring when frost law weight restrictions are imposed. Stations are also equipped with a digital camera that can be rotated 360-degrees. Because most of the stations are positioned along gravel roads, the cameras provide a current snapshot of the road’s condition. Another partner in the project is the Upper Great Plains Transportation Institute (UGPTI) which conducts research and provides road management and

training services to counties. UGPTI will assist county road departments in evaluating weather data to ensure that personnel are trained to apply it to roadrestriction policies. UGPTI will also use Wise Roads subsurface soil temperature and moisture data to analyze the performance of road-building materials and possibly build a prediction model for the timing of spring load restrictions. The project could pay huge dividends

to North Dakota’s oil industry. If road restrictions are in place more than a couple days, oil companies can be forced to shut down wells because tanks fill up and trucks can’t get to the well pad to empty them. A shutdown can cost companies thousands of barrels of production, amounting to millions in lost revenue. Reducing road closures could save those millions, which also benefits the mineral royalty owners and the state’s taxpayers. w

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REPORT

Bakken Development and Working Lands Program In July 2018, the Bakken Development and Working Lands Program (BDWLP) became available to landowners in the oil-producing counties of North Dakota. The program, administered by the North Dakota Natural Resources Trust (trust) is funded through the North Dakota Outdoor Heritage Fund, and several conservation, city/county, and energyproducing partners in North Dakota.

• Improving water quality, soil conditions, plant diversity, and animal systems; • Conserving and restoring wildlife and fish habitat; and • Conserving natural areas and creating other areas for recreation.

on their property. Our goal is to work alongside energy-producing companies to make the North Dakota landscape as healthy and productive as possible, while staying focused on conservation and public utilization opportunities.

Since its inception, the program has funded 156 projects totaling over $46 million.

North Dakota's Outdoor Heritage Fund was established in 2013 as a multimillion-dollar program to provide grants for projects that enhance conservation practices in this state by: • Providing access to private and public land for sportsmen;

The Bakken Development and Working Lands Program received $2,170,000 of OHF funds. To date, soil conservation districts and NRCS offices have provided technical support to over 30 landowners to develop grass plantings, fencing developments, and water systems to increase capabilities of rotational grazing systems and increase grassland health.

BDWLP partners, NDSU extension soil scientist Chris Augustin, and the US Fish and Wildlife Service are identifying public land sites which have had energy production facilities in the past. The goal is to enhance surface management and diversity for wildlife through implementing grazing systems. To accomplish this, Augustin is studying soil characteristics within the sites to determine applicable soil amendments and associated grass establishment opportunities where currently none exist.

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BAKKEN OIL REPORT – Fall 2019

Implementing a grazing system and planting grasses and cover crops is one tool the program is using to provide options to landowners while increasing grassland health. The program is beginning to see results: • 2,840 acres of rangeland have been improved through the installation of 58,300 feet of fence, and • 1,120 acres of grasses and cover crops have been planted. BDWLP is a tool that landowners, including those that have energy development on their land, can use to improve/enhance their grasslands. The response has been positive from energy companies and landowners alike. The trust and the North Dakota Petroleum Council (NDPC) have worked together to bring the program to the NDPC’s members and initiate conversations between those companies and the landowners who have development

Recently, the trust and its partners met with an energy company with operating sites adjacent to the Little Missouri River Corridor and discussed reclamation and revitalization opportunities. BDWLP partners with the Department of Mineral Resources (DMR). While DMR reclaims abandoned wells and well sites, BDWLP will revitalize the entire surrounding area. This will give producers options to enhance their grazing systems and will create habitat on irregular lands near development sites. The project will also create urban nature/ interpretive sites near towns within the Bakken. Work is underway to restore and maintain native prairie ecosystems while enhancing public areas. Currently, Watford City has begun construction and Dunn Center is in the planning stages for an interpretive site. w


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REPORT

Pressure builds for Bakken crude By Bette Grande In July 2019, the attorneys general for North Dakota and Montana filed a petition with the U.S. Department of Transportation requesting the review and preemption of a Washington state law that prohibits loading or unloading crude oil that has a vapor pressure more than nine PSI. A law that North Dakota’s congressional delegation referred to as a “de facto ban” on Bakken crude oil in a letter to Washington Governor Jay Inslee. North Dakota’s oil regulator said that

Currently, North Dakota producers ship 200,000 bbls/day to Washington state refineries in PADD V by rail – that is roughly 70 percent of the total daily crude by rail (CBR) shipments of Bakken crude. the state requires a vapor pressure of no more than 13.7 PSI, lower than the national standard of 14.7 PSI. To get to nine PSI, Bakken crude will need to be processed to remove rich natural gas liquids, such as butane. Comments from regulators and industry state that this additional processing would increase costs and decrease the value of Bakken crude. At the March meeting of the North Dakota Industrial Commission, Lynn Helms, director of the North Dakota Department of Minerals Resources, said “If this becomes law, crude oil will no longer come there from North Dakota. It will 18

BAKKEN OIL REPORT – Fall 2019

find another home because it would be devalued.”

Mineral Resources met in closed session

Currently, North Dakota producers ship 200,000 bbls/day to Washington state refineries in PADD V by rail – that is roughly 70 percent of the total daily crude by rail (CBR) shipments of Bakken crude. In response to questions regarding where the oil supply for the Washington State refineries would come from if the legislation is successful, Helms indicated that beginning on January 1, 2020, refiners would need to import oil from West Africa by ship. Bakken producers will not strip valuable natural gas liquids from Bakken crude and will instead find other markets.

June to discuss the state’s legal options.

This will idle CBR facilities constructed in Washington to safely transport Bakken crude oil to refineries on Washington’s coast. Significant capital has been invested in transportation and processing infrastructure and those facilities will be shuttered, causing a substantial loss of capital. The law will cost jobs and lose revenue for Washington State and importing foreign crude stock could require additional capital investment by refineries.

pretreating the crude oil prior to loading

during its monthly meeting in May and The initial result of those meetings was the petition to the Pipeline and Hazardous Materials Safety Administration (PHMSA) at the Department of Transportation. According to the Federal Register, “North Dakota and Montana present two main arguments for why they believe Washington's law should be preempted. First, North Dakota and Montana contend that the law's prohibition on the loading or unloading of crude oil with more than nine PSI vapor pressure poses obstacles to the HMTA because compliance with the law can only be accomplished by (1) the tank car; (2) selecting an alternate mode of transportation; or (3) redirecting the crude oil to facilities outside Washington state. Accordingly, North Dakota and Montana say these avenues for complying with the law impose obstacles to accomplishing the purposes of the HMTA.” The comment period on this petition closed on September 23, 2019 and a

North Dakota has logistical and transportation hurdles in getting Bakken crude to market. Currently, pipeline capacity is at its limit and additional capacity is years away. The loss of 200,000 barrels a day currently shipped to Washington state would put significant price pressure on North Dakota producers.

decision from the PHMSA is expected the

The North Dakota Industrial Commission that oversees the oil and gas industry in North Dakota through the Department of

Environment Division. Grande was born and

end of the year. w Bette Grande is a research fellow for energy and environment issues at The Heartland Institute and CEO of the Roughrider Policy Center. She also served as a North Dakota state representative from 1996 to 2014 and was a member of the House Appropriations Committee, Education and raised in Williston, ND. Visit her website at FracBabyFrac.com.


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REPORT

The Bakken is driving the economy and workforce efficiencies One Basin, One Way! signing ceremony with Governor Burgum and representatives from the NDPC Safety FIRST partner companies.

The results are in! In 2017, the petroleum industry’s total economic contribution in North Dakota was $32.6 billion, according to a study done by North Dakota State University, sponsored by the North Dakota Petroleum Council (NDPC). The industry supported 51,400 jobs with a total payroll of $3.8 billion, which accounts for 15 percent of all privatesector jobs in the state and 16.9 percent of all wages and salaries. The industry has continued to set production records in North Dakota this year. June production numbers were just announced, and we reached 1.42 million barrels per day, a new all-time high. We expect to see increased economic impacts as new data comes in and our reports are updated. This progress is a result of not only rebounding oil prices, but also increased efficiencies and better technology being deployed in the oilfields. As the Bakken play has developed and extraction techniques have been perfected, surface disruption has decreased. We have also seen infrastructure needs catch up with development which has not only eased the strain on local communities, but also 20

BAKKEN OIL REPORT – Fall 2019

contributed to more efficient production. The industry has also made great strides in staffing and training efficiency with a Safety FIRST focus by creating the One Basin – One Way! standardized contractor orientation program. Duplicative contractor orientation was identified by NDPC members as an area where they could increase efficiency and streamline training to improve safety. Before One Basin – One Way!, contractors for the oil and gas industry had to meet orientation and training requirements for each company they performed work for throughout the year. After 18 months of planning and collaboration, the NDPC rolled out One Basin – One Way! and began training classes in June. This program provides safety orientation for all of our Safety FIRST partners, producer, and pipeline companies that will require One Basin – One Way! orientation for their contractors. These companies represent nearly 50 percent of oil and gas production in the Bakken, and we expect participation to grow as this program gets more established. This standardized training eliminates the need for contractors to sit through separate orientations for every site where

they work. By consolidating companyspecific orientation into one program and delivering training on 55 prominent safety topics, the One Basin – One Way! program delivers a robust safety orientation while concentrating on improving the overall industry safety record. Simplifying what contractors need to learn will also lead to a better understanding of the rules and guidelines at all sites, safer work practices, and fewer injuries. The first of its kind, One Basin – One Way! was developed in North Dakota and focuses on North Dakota-specific job hazards such as operating in low temperatures and transportation hazards. The industry needs to attract a strong workforce and showing our commitment to safety on the job will help do that. The program has received a grant from North Dakota Workforce Safety and Insurance (WSI) that will provide partial scholarships for orientation attendees. This is a great commitment from the state that shows the value they place on this training, as well as the enhanced safety and efficiency it will bring to the industry. The NDPC is encouraging all its members to join the One Basin – One Way! program so we can see safety improvements across the oil and gas workforce in the Williston Basin. Currently, the Safety FIRST partners are: Bruin E&P, Crestwood Midstream, Enerplus, Equinor, Hess Corporation, Oasis Petroleum, ONEOK, Inc., QEP Resources, Whiting Petroleum Corporation, WPX Energy, and XTO Energy. w


BAKKEN WORK IS DIFFERENT. YOUR SAFETY SOLUTION SHOULD BE, TOO. This Bakken-specific safety orientation discusses properties and characteristics of Bakken oil, sources of oil extraction, and hazards specific to the region. Additional components covered include: -

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REPORT

Time to Build Keystone XL By Jenna McKinney This September marks the 11th anniversary in the ongoing

“TransCanada estimates that a one-year delay would result in lost

permitting processes on the Keystone XL Pipeline (KXL). The

earnings before interest, taxes, depreciation, and amortization

first presidential permit application was submitted in 2008.

(EBITDA) of approximately $949 million between March 2021

Initial delays began occurring during standard protocols for

and March 2022, based on the minimum take-or-pay shipper

environmental impact studies (EIS), meeting the rigorous

commitment… The company planned to hire 6,600 workers for

Montana Major Facilities Siting Act (MFSA) requirements, and

the pipeline in 2019 but would be unable to do so and the total

similar processes in other states, as well as determining the safest

financial harm to third-party construction contractors and U.S.

and least impactful route for the pipeline to go from Alberta,

workers would be approximately US$2.56 billion.”

Canada to Houston, Texas.

TransCanada is a large company. What about small business

The subsequent delays are a result of litigation, which has

owners, contractors, and sub-contractors? Tyler Smith with

become the battle ground for political gamesmanship and conflicting ideologies. Extreme activists have used shotgun litigation tactics to battle over oil and gas development; they litigate on the grounds of religious implications (possible Indian burial sites, etc.), endangered species, soil, water, or, as seen recently in Montana, litigation over the general feeling that the administration isn’t doing enough with the current procedures and regulations. This litigation resulted in an injunction blocking pre-construction activities that were already underway. You name it, industry regulates it, they litigate it, with a shotgun approach.

Lakeside Construction in Havre, Montana recently told his story. Smith is a small business owner who invested numerous hours in business proposals and equipment relocation to build and develop a man camp for the pipeline construction crew. Smith was moving equipment and in the processes of getting large material supplies and equipment in place when Federal Judge Brian Morris ordered an injunction, which resulted in a major financial blow to Smith and his crew. The proposals and plans for the camp took weeks to develop. Man-camps require more than just a place to sleep. You need adequate water supply, sewage systems, and places to shelter from the seasonally volatile Montana climate. The camp Smith was working on would have

The judicial activism and litigation by the extreme activists have

housed approximately 800 people. Judge Morris’ ruling would

real-life consequences on companies and taxpayers. In an article

have resulted in tens of thousands of dollars in loss to Smith’s

by Geoffrey Morgan in the Financial Post, the calculations of loss

small business, however KXL picked up the costs incurred by

to

Smith.

TransCanada are estimated to be about $2.5 billion:

The oil and gas industry is a pillar to the Montana economy. Alan

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BAKKEN OIL REPORT – Fall 2019


Olson, executive director of the Montana Petroleum Association,

are challenging to meet. The current regulations are effective,

said, “Oil and gas development and industry growth means

they protect and serve the best interest of both industry and

significant job opportunities for Montanans, it means energy

the general public. The oil and gas industry is cooperative

independence for America, and pipelines provide responsible

and supportive of reasonable regulations and understands

and efficient transportation for the oil and gas industry. We

the importance of those regulations to a healthy and thriving

appreciate the Trump Administration’s support of the Keystone

environment. Our industry stands alongside all Americans in

XL pipeline and the oil and gas industry at large.”

being good stewards of development.

The opposition to KXL is one example of how political posturing

The oil and gas industry supports many other industries, such

and extreme activism have harmed the industry, the taxpayers, and our economy. With a projected $3.4 billion added to the U.S. GDP, and the creation of tens of thousands of jobs, multiple EIS’s completed, and numerous legal opinions, isn’t it time to put hard-working Americans and small business owners back to work?

as agriculture, technology, and transportation. It also supports many health and human services programs, public education, and other public programs through tax dollars. It is time for a balanced approach. It’s time to stop slaying the economy on the “alter of the environment.” We can have both healthy and manageable regulations and a thriving industry. Putting every step of the regulatory process on trial is draining our economy

These extremist tactics are divisive and they are hurting our

and the impacts will be widespread across many different

country. The oil and gas industry is heavily regulated at all

industries and public sectors. It is time to complete this project

sectors. Regulations like Montana’s Major Facility Siting Act

and stop hurting tax-paying Americans with extreme activism

are an in-depth permitting process with requirements that

and relentless litigation. w

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The cleanest

and the smartest Davis Refinery Design Update The Davis Refinery, an ultra-modern 49,500-bpd full-conversion refinery being built in Belfield, North Dakota, has extended the front-end engineering and design (FEED) phase of its initial refinery. This will allow its engineering team to further develop the digital footprint and operations technologies that will define its cutting-edge operations, resulting in a projected 2022 start-up date. This continuation of design has allowed us to further develop the refinery for

By Mark Fonda

better efficiency and cost. It has also allowed us to enhance our environmental technology such that we are even more confident that the Davis Refinery will be the cleanest refinery on the planet. Our core team of highly qualified and motivated engineers has continued to investigate state-of-the-art and bestavailable control technologies (BACT). We intend to provide a plant which will have a minimum footprint in terms of sight, sound, and smell. We are also committed

to using only proven, established technology to better ensure performance and reliability. A foundation for this performance is the use of digital technology which will enhance our ability to monitor, control, and optimize operations. This will not only provide greater assurance for safety and environmental compliance, but will also enhance long-term profitability and sustainability.

1

2 3

4

1. The Davis Refinery is an ultra-modern 49,500-bpd full-conversion refinery being built in Belfield, North Dakota. 2. The Davis Refinery is set to be the cleanest refinery on the planet. 3. The Davis Refinery will have a rugged state-of-the-art distributed control system (DCS) with electronic marshalling, wireless transmitters, self-monitoring instruments, advanced process control, and digital twin capabilities. 4. Meridian Energy Group has announced plans for a similar, Davis-style refinery in West Texas. 24

BAKKEN OIL REPORT – Fall 2019


Evolved. In the energy industry, you need to need to see what’s coming, hunt for the next big thing, and pounce on the opportunities. Smart oil and gas infrastructure makes it easier to adapt. And it's second nature at KLJ. KLJENG.COM


Environmental technology

associated with refineries.

Refinery to be not only the cleanest, but also the smartest refinery on the planet.

issued by the NDDEQ in 2018 provides

Any proposed changes affecting air

The benefits of digital technology include:

limits for various pollutant air emissions.

emissions will be thoroughly reviewed

Having now completed the basic design

with NDDEQ for acceptance within the

of our fired heaters and boilers – the

existing PTC.

1) Reduced capital cost from more efficient project execution;

The approved Permit to Construct (PTC)

largest source of emissions – we are very

the typical water vapor plume normally

confident that we will not only meet

Digital technology

the permit parameters, but come in

Our design team has been surveying the

well below them with our sustainable

industry to find the best-available digital

emission levels.

technology to be utilized for project

As planned, the major heaters will have

execution, operational control, quality

ultra-low-NOx burners and selective

assurance, and equipment health, as

catalytic reduction (SCR) in the stacks to

well as process safety and environmental

achieve lowest achievable emissions rates

compliance.

(LAER). They will also utilize continuous

This begins with a rugged state-of-the-

emissions monitoring systems (CEMS) to provide real-time monitoring and control.

art distributed control system (DCS) with electronic marshalling, wireless

We are enhancing the design of our

transmitters, self-monitoring instruments,

cascaded flare system, which provides

advanced process control, and digital

for recovery and recycling of relief and

twin capabilities. It includes a robust and

vent gases. This includes evaluation of

flexible Enterprise Resource Planning

elevated flare designs which will minimize

(ERP) software platform which provides

the impact of a large relief load.

clean and efficient data collection,

Although not required by permit, we have

handling, and analysis.

designed out the need for a conventional

With a complete, ground-up

evaporative cooling water system. Due

implementation of an efficient

to the climate in North Dakota, we can

communications infrastructure, advanced

provide process cooling, utilizing only

equipment automation, and cutting-edge

fin-fan-type air coolers. This eliminates

analytical software, we expect the Davis

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2) Faster project completion leading to earlier operational profits; 3) Increased operating efficiency from better equipment availability, energy, yields, and quality; 4) Increased equipment reliability providing lower maintenance expense; 5) Reduced unscheduled downtime from equipment failures; and, 6) Reduced future capital spending from more efficient use of capital. Process technology Our process technology, primarily supplied by Axens North America, has been selected to provide state-of-the-art performance, flexibility, and durability. The design has been optimized to provide enhanced equipment reliability, including a five-year run length for all process catalyst systems. The fuel products will meet or exceed all current EPA standards for clean fuels, including the 2020 IMO Regulation for Low Sulfur Marine Fuel Oil. We are also poised for any future changes to Renewable Fuels Standards (RFS) and Corporate Average Fuel Economy (CAFE) standards for gasoline mileage and octane. Other sites This winning formula will be utilized in other shale plays to take advantage of stranded, discounted crude supply, that is under-utilized by the U.S. refining industry, which was designed primarily for heavier, higher-sulfur, off-shore crudes. We have announced plans for a similar, Davis-style refinery in West Texas. Meridian is building the refinery of the future today. w

www.suddenserviceinc.com

26

BAKKEN OIL REPORT – Fall 2019

www.taylorbigred.com

Mark Fonda is the chief technology officer for Meridian Energy Group Inc., based in Houston, TX.


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Pipeline operators join forces to develop new tools overflights, drone overflights, and fixed sensors to produce alerts on various changes of interest to the pipeline operator. Satelytics provides a variety of analytical tools to the pipeline operator, including temperature analyses, chemical analyses, leak detections, and change detections. • I ngu Solutions – Pipers™ sensors promise an affordable and easy-todeploy screening tool that identifies risks and performance issues in pipelines, especially for small-diameter (less than eight-inch) pipelines. During a May 2017 meeting with North Dakota pipeline operators, Governor Doug Burgum challenged industry to apply advanced technologies to eliminate pipeline leaks in North Dakota. In response to the governor’s challenge, industry chose a proactive path and

• Demonstrating multiple technologies on working gathering pipelines; • Documenting results of technology demonstrations; and, • Facilitating adoption of technologies into pipeline operations.

engaged in a three-and-a-half-year

Tone Macia, Oasis Midstream’s

program to advance development and

construction and engineering manager,

application of emerging technologies

touted the program, saying, “We believe

that will prevent and detect pipeline

that this acknowledgment of innovation

leaks.

paves the way for more collaborative

The goal of the intelligent Pipeline Integrity Program (iPIPE) (www. ipipepartnership.com) is to develop and demonstrate cutting-edge technology that can prevent and/or detect gathering pipeline leaks. The program assists in the development of multiple emerging technologies to prevent and detect pipeline leaks by: • Selecting the most promising emerging (near-commercial) technologies for demonstration; • Assisting technology providers in refinement of their products; 28

BAKKEN OIL REPORT – Fall 2019

efforts that contribute positively to industry operations and public understanding of our business.” Two technology selection rounds (in May 2018 and October 2018) have resulted in five technologies selected for development activities: • Satelytics – Satelytics is a data and

According to Ingu Solutions, the technology detects and locates leaks, defects, magnetic features, and restrictions in all pipelines, with no interruption of service. •D  irect-C – Direct-C’s “smart paint” sensors promise to instantly and directly measure hydrocarbon and saline leaks, then transmit alarms identifying possible locations of the leak. Direct-C is developing a film-embedded nanocomposite sensor that changes its electrical properties in the presence of a leak, thus triggering a leak alarm. They also promise no false alarms because the method of measurement is direct and not subject to interpretation. • I nsitu (a Boeing Company) -- Insitu offered a project employing drones flying beyond visual line of sight (BVLOS), multiple advanced sensors, and

analytical platform that promises to

advanced analytics to identify pipeline

automate broad monitoring of large

leaks over large areas of operation. The

pipeline systems. Satelytics employs

promise of drone-based leak detection

machine-learning algorithms to

is alluring because it potentially offers

automatically analyze large amounts of

wide area coverage with automated

optical, multispectral, and hyperspectral

systems not subject to weather

data from satellites, commercial airliner

limitations.


• Southwest Research Institute (SwRI)

greatly reduced cost because the costs

• Members demonstrate responsible

– SwRI offered a project to further

are shared with other members and

citizenship to landowners and

develop its Smart Leak Detection (SLED)

even with technology providers.

regulators.

technology that uses commercial-offthe-shelf (COTS) cameras and machinelearning algorithms to instantly identify and categorize hydrocarbon leaks. The promise of this approach is that, if it can be mounted on an aerial platform, it could achieve wide area coverage and instantaneous identification of leaks, even categorizing the types of leaks.

• Members jointly use the program to

The members of the industry-led

demonstrate that industry is leaving

consortium currently include Hess

no stone unturned in its search for

Corporation, Equinor, Oasis Midstream

technologies that enable continuous

Partners, Goodnight Midstream, ONEOK,

improvement of pipeline operations

Andeavor, Whiting Petroleum, and DCP

and pipeline safety – even to the point

Midstream. Several others are currently

of developing new technologies where

in discussions to join this expanding

none currently exist.

consortium. w

“The coalition of businesses and partners that make up iPIPE was impressed with our latest round of submissions for new technologies and is proud to be pushing forward with these new ideas,” said

WELDING PROGRESS TOGETHER

Brent Lohnes, general manager of Hess in North Dakota. “It’s great to see the level of excitement for this industry-led initiative, and we hope to see even more practical applications that can help us reach our goals.” According to the Energy & Environmental Research Center’s Jay Almlie, who manages iPIPE on behalf of industry partners, “iPIPE continues to push the envelope, constantly seeking new technology that shows promise, but Serving Anywhere in USA • 24 Hour Service

needs a bit of guidance to complete The program is currently engaged in operations in the Williston Basin in North

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29


dixon

The all-in-one solution One-piece iron intake manifolds reduce downtime, cut costs To the casual observer, hydraulic fracturing might be considered a relatively new drilling technology that has leapfrogged the United States into the top spot in global oil and gas production.

Their role is crucial in conveying injecting fluids into the shale to start the extraction process. The fluid composition varies, but the constituents always include sand, water, various chemicals, and gel.

But fracking isn’t new; it dates to the Battle of Fredericksburg during the Civil War, where use of explosives to remove the obstruction of a narrow canal led to the discovery of superincumbent fluid tamping.

Operators often observe failures caused by sand building up and blocking movement of injecting fluids entering the fluid end of the pump. Frequently, the reason for this failure is the intake manifold design.

Modern fracking is a product of the 1990s when technologies combining geologyled directional horizontal drilling with hydraulic fracturing allowed explorers to tap shale oil reserves.

Typically, intake manifolds are made from welded standard-steel pipe fittings. For several reasons, this isn’t ideal:

The increase in fracking activity in recent years has revealed process weaknesses. Operators began to scrutinize all operational facets, including the pumping systems used to introduce fracking fluids to wells. Intake manifolds feeding the pumps were identified as one source of failure.

• Erosion and cracks result where components are welded together. • Washed out and leaking areas develop at exposed threads, which are prone to abrasion. Adding to these concerns, conventional intake manifolds aren’t strong fluid flow performers. Plus, the flow path geometry when assembled with standard pipe and

fittings makes it impossible to adjust for optimum performance. Subpar flow paths contribute to slow fluid movement, lack of consistent pressure, and increased wear at key passageway points. When that happens, a variety of problems can result: •  Insufficient fluid velocity, particularly at the final bore, causes sand drop-out that further restricts flow, possibly resulting in cavitation and damaged valves, seats, springs, and cracked fluid end walls. • Inability of the manifold to flow “bad” sand containing oversized rocks, which leads to valve failures, cracks, and early fluid end failure. • Unacceptable levels of wear from additional sand, chemical exposure, and uneven sand distribution in the proppant. • Downtime due to clearing sand blockages and repairing damaged fluid ends.

This diagram shows, in the red areas, where flow slows in a typical welded pipe intake when the final ports. The flow snapshot is taken when the final port valve is completely open and Ports 1 through 4 are either partially open or almost closed in the firing order of the pump.

This five-port intake manifold flow simulation shows that the fluid effectively never slows down during pumping and accelerates at the final port to eliminate sand drop out, port blockage, and damage to the fluid end.

30

BAKKEN OIL REPORT – Fall 2019


Damaged welded intake manifold showing weld wash out and built-up sand from poor flow.

Nearly all issues associated with conventional intake manifold designs can be remedied by switching to a one-piece design. Choice of material is important; certain grades of iron have higher yield strength and hardness than standard A53 steel or A105 pipe. Castings made of these iron grades may be stronger and more wear-resistant than welded versions. Furthermore, machining cast products rather than welding is a more precise procedure that is less prone to damage or loss of product integrity. Additional characteristics of one-piece designs guaranteeing durability and longer performance include: •  No threads or welds that can fail. • Optimized design provides consistent

Weld seams clearly visible on a five-port intake manifold. This technique is time consuming to fabricate, subject to early failures, and causes expensive issues with the fluid end.

pressure throughout. • Slotted base plate holes provide compatibility with multiple fluid ends. • Angled access ports improve valve and process instrumentation access. • Customizable six-inch inlets allow NPT threads or grooved connections. Considering the numerous benefits of the one-piece design, it isn’t surprising that operators who switch to these intake manifolds experience lower overall cost of ownership. The cost of new fluid ends ($50-80,000) and fluid end rebuilds ($1020,000) can skyrocket depending on how many trucks are in the fleet. A one-piece intake manifold reduces many problems leading to repair or replacement while providing an added degree of efficiency

Dixon’s one-piece cast three-port and five-port intake manifolds are designed and manufactured to eliminate issues found with welded manifolds and to increase fluid end life and up time.

and safety. w

BAKKEN OIL REPORT – Fall 2019

31


nov completion

Optimized coiled tubing string design extends lateral length, improves time to bottom By Stephen Forrester and Garrett Kalmback National Oilwell Varco (NOV) recently launched an expansion of their True-Taper™ string design, optimized for extended-reach applications.

The North American land market has changed substantially over the past decade, with the rise of shale signaling a concurrent shift in both well design and completion methods. With extended-reach laterals becoming more commonplace, the need for a change in coiled tubing string design has become more apparent. To address this need, National Oilwell Varco (NOV) recently launched an expansion of their True-Taper™ string design, optimized for extended-reach applications. The improved version, called TrueTaper XR, minimizes the number of bias welds in the tapered string and assures a gauge-to-gauge bias weld in each instance, achieving a linear taper by gradually varying the thickness of the flat steel strip over almost the entire string length. Patriot Well Solutions (Patriot), a premier provider of coiled tubing, nitrogen, pumping, and wireline logging and perforation services operating in the major North American basins, began research into potential ways of extending lateral lengths using coiled tubing in unconventional shale plays. Recognizing the need to adapt to an evolving coiled tubing market, they chose NOV’s new True-Taper XR string design and began implementing it on select Bakken shale projects. The Bakken proved a fertile testing ground for the improved string design, as Patriot was seeing lateral lengths of three miles or more in the region. Furthermore, the total depths (TDs) being reached by various companies in the Bakken often exceeded 26,000 feet. Patriot’s primary objective when using the new string design was to establish the type and magnitude of performance benefits possible versus traditional designs. Patriot first noted that the True-Taper XR strings were able to overcome the challenging weight restrictions of North Dakota, particularly with regards to stringent frost laws in the spring months. Tailoring the coiled tubing string design to the extended32

BAKKEN OIL REPORT – Fall 2019

Recognizing the need to adapt to an evolving coiled tubing market, Patriot Well Solutions chose NOV's new True-Taper XR string design and began implementing it on select Bakken shale projects.

reach laterals effectively allowed Patriot to keep the weight in the string where it was necessary, i.e., Patriot achieved a better balance between lighter-weight sections and heavier sections, with the string appropriately light or heavy based on actual wellbore conditions. Previously, longer taper lengths made achieving such precise string-weight distribution in the lateral significantly more difficult, if not impossible. Performance improvements across two major categories were made possible through implementation of the optimized True-Taper XR string design. First, Patriot noted that by using True-Taper XR, the company was able to regularly increase the length of the lateral – and thus the ultimate production zone – by 800 to 1,200 feet on average. Secondly, and not to be underscored in importance, the True-Taper XR design helped operating companies get to the bottom quicker than with traditional string designs. Though this varied based on the company involved and other factors, Patriot noted that a broad trend was in the reduction of time to TD from 24 hours to 19 hours or less. The greatest improvement was seen on the last 20 percent of in-hole time; in other words, the improvement in time to TD aligned with the extended-reach portion of the wellbore. Though Patriot noted that there was no reduction in the number of sections versus previous designs, each tapered section was shorter, allowing for a quicker transition in pipe wall thickness. Coiled tubing will continue to be an important component of the oil and gas industry, but it will also face new challenges as well paths and geologies change, and companies enter uncharted formations with new campaigns. Companies like Patriot that choose to embrace technical change and innovation will find themselves increasingly far ahead of the competition in the coming years. w


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polyguard products

High productivity while maintaining quality with RD-6 Coating System In 10 hours, 120 field-joint welds, or close to a mile of welds along a pipeline right-of-way, can be coated with RD-6 and inspected.

The temperature will not be the only thing dropping for coating applicators as we push towards winter. Lower temperatures will also mean increased cure times for liquid epoxy coatings, and therefore, productivity will be slowed. In some cases, this can affect the project completion date and any deadlines attached to the job. The curing of the standard two-part epoxy for buried field joints begins to slow or even stop at 50°F. As the weather begins to change, the coating specification should also change to incorporate different strategies to keep the same level of production for the applicators. Polyguard Products RD-6 Coating System will maintain efficiency in cold weather applications while performing as an excellent non-shielding corrosion coating. Unlike epoxy coatings, RD-6 can be immediately backfilled following application due to it not having a cure schedule. The same cold weather pre-heat methods used prior to the application of epoxy coatings to the surface are to be used when applying RD-6. At this point of the project, the level of productivity has not been affected. Once the desired pre-heat temperature is reached, application of the RD-6 coating system can begin. Application will begin with a thin coat of liquid adhesive followed by spiral wrapping the RD-6 to the surface. The total time involved with application of liquid adhesive and RD-6 will be in the range of two minutes to four minutes for a field joint 34

BAKKEN OIL REPORT – Fall 2019

Polyguard Products RD-6 Coating System will maintain efficiency in cold weather applications while performing as an excellent non-shielding corrosion coating.

weld. This time range is given assuming applicators are properly trained. The RD-6 will quickly bond to the heated surface and be permanently adhered. Following holiday detection, the coated surface is ready for backfill. If holiday detection for the weld takes approximately one minute, then most field joint welds are ready to backfill in under 10 minutes from beginning of application. In comparison, a single weld with an epoxy coating can take upwards of 10 hours at 50°F to reach a cure that will be suitable to backfill over. In 10 hours, 120 field-joint welds, or close to a mile of welds along a pipeline right-of-way, can be coated with RD-6 and inspected. If the scope of work for the winter coating project you are completing does not include alternative coating options for when the weather changes, then it should be modified. The RD-6 coating system is an excellent option for applicators with a need to maintain efficiency and get backfill ready. Polyguard Products offers free in-person training to all applicators of RD-6. This service is performed worldwide and free of charge. Further information on the benefits of cold weather application of RD-6 can be obtained at www.polyguardproducts.com/ pipeline/, or by calling directly at (281) 580-5700. Polyguard Products is an employee-owned company and proud to make all pipeline products in the United States. w


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FOX THERMAL INSTRUMENTS

BLM 3175: From effective date to implementation What you need to know before choosing a flow meter BLM 3175: The timeline This rule became effective on January 17, 2017, but implementation has been delayed for a period of two years. The implementation delay was due to the need to develop reporting formats that can be used with the Gas Analysis Reporting and Verification System (GARVS). GARVS is a new database that the BLM is developing as part of the implementation of this rule that will have the ability to receive gas analysis reports from operators. Once implemented, operators will be required to enter all gas analyses into the GARVS. Although GARVS was set to be completed by January 17, 2019, it was announced that the BLM did not expect the GARVS to be ready for use by operators before June 2019, at the earliest. Another reason for the delay is due to unforeseen issues with the formation and functioning of the production measurement team (PMT). The PMT is charged with receiving and reviewing oil and gas measurement technologies, methods, and standards not covered under the regulations, or for equipment and software covered under the regulations. At the conclusion of the PMT’s review process, a recommendation to the BLM will be made to either approve or not approve the device, method, or software. State and field offices have delayed enforcement of 3175 until the BLM 36

BAKKEN OIL REPORT – Fall 2019

has implemented the GARVS, received recommendations from the PMT, and a reasonable compliance time has been afforded to operators. Now that fall approaches, an announcement from the BLM is imminent and operators must prepare to meet the requirements of 3175.

2. Heating Value Uncertainty Levels –

Areas are affected by BLM 3175

3. Bias – The measuring equipment

The 43 CFR 3175 Gas Measurement Rule was entered into law on November 17, 2016 to establish minimum requirements for accurate measurement and reporting of all gas removed or sold from federal and Indian land. This rule updates and replaces requirements laid out in Order 5, but maintains current standards set in NTLs over the phase in period. This rule also incorporates standards from API, GPA, and others*. The goal of this rule is to improve the accuracy of measurement standards, reporting, and accounting to secure correct royalty disbursements to the federal government, tribes, and individual allotment owners. BLM 3175 key take-aways The following are the main criteria stated in the regulation that work to fulfill the goal of more accurate measurement, reporting, and accounting. These criteria are discussed in general terms meant to broadly define each sub-section. 1. Flow Rate Measurement Uncertainty Levels – This rule lays out specific criteria for the flow meter’s accuracy specifications based on the FMP

category (averaging the flow rate of that FMP over the previous 12 months) [3175.31(a)]. When the BLM refers to heating-value uncertainty, it is specific to the average annual heating value uncertainty [3175.31(b)]. used for either flow rate or heating value determination must achieve measurement without statistically significant bias [3175.31(c)]. 4. Verifiability – The accuracy and validity of any input, factor, or equation used by the measuring equipment to determine quantity, rate, or heating value must be independently verifiable [3175.31(d)]. 5. Components to Analyze – Depending on FMPs, gas analyses through hexane+ (C6+) including CO2 and N2 is required and an extended gas analysis through nonane+ (C9+) is required where the concentration of C6+ meets certain criteria [3175.119(a), (b), and (c)]. Choosing the right flow meter – Specific performance requirements for flow meters defined Compare instrument specifications to this summarized list of performance requirements to choose the right flow meter quickly and easily:


Remote FT4X solar-powered thermal mass flow meter installed on a flare gas line in the Bakken.

1. Flow rate accuracy of flow meters must meet these requirements: a. F or high-volume FMPs (200 to 1000 MCFD), the measuring equipment must achieve an overall flow rate measurement uncertainty within ±3 percent. b. F or very-high-volume FMPs (more than 1000 MCFD), the measuring equipment must achieve an overall flow rate measurement uncertainty within ±2 percent. 2. Relative density and heating value of gases must be reported. a. Average annual heating value uncertainty standards: i. ±2 percent for high-volume FMPs ii. ±1 percent for very-high-volume FMPs. 3. Components to analyze: a. Low- and very-low volume FMPs: i. Gas analysis through hexane+ (C6+) b. High- and very-high volume FMPs with concentration of C6+ >0.5 mole percent: i. Extended gas analysis (through C6+) every time the sample exceeds 0.5 mole percent of C6+; or

• API 14.1

Abbreviations:

• API 14.3.1, API 14.3.2, API 14.3.3, API

API – American Petroleum Institute

14.3.3 (1992)

BLM – US Bureau of Land Management

ii. Periodic extended analyses and adjust the hexane-heptaneoctane split to avoid any heating value bias that may exist.

• API 14.5

EGM – Electronic Gas Measurement

• API 21.1

FMP – Facility Measurement Points

• API 22.2

4. Periodic meter inspections of insides of meter tubes every two to five years.

• GPA 2166-05

GARVS – Gas Analysis Reporting and Verification System

5. All meters required to undergo routine verification every three months for measurement certainty and calibration accuracy or re-calibration. *Incorporated API, GPA, AGA, and PRCI standards:

• GPA 2261-13 • GPA 2198-03 • GPA 2286-14 • AGA Report No. 3 (1985) • AGA Report No. 8 • PRCI NX 19

GPA – Gas Processors Association NTL – Notice to Lessees QTR Quantity Transaction Record (a report generated by an EGM system that summarizes the daily and hourly volumes calculated by the flow computer and the average or totals of the dynamic data that is used in the calculation of volume). w BAKKEN OIL REPORT – Fall 2019

37


barclay construction

Serving the area Barclay Construction has been providing a variety of oilfield services in the Bakken since 2012 It was a natural fit for Justin Barclay to return to Montana with

into valve swaps, hydro-vacing, oil spill cleanup, and DRA tote

family originally from the eastern side. He started out doing

moves. Along with site reclamation, erosion control, dirt work

handyman services in Jordan but soon found he missed working

including pads, site work, final grading, and containment round

in the dirt. He dipped his feet in by going to work for others doing

the excavation. The roustabout services include snow plowing,

excavating in the oilfields and quickly discovered there was a need

weed control, mowing (ROW and site locations), and ROW

for reliable, honest companies, so he jumped in headfirst, buying

reclamation (seeding settling, and washouts). Their fleet of semi/

his first skid loader and trailer.

trailers can handle material hauling in the Eastern Montana/

Since then he has added to his business a fleet of trucks, trailers,

Western North Dakota area.

semis, skid loaders, and hydro-vac equipment. He has gone

During the grueling winters in the area it’s nice to have a shop

from surviving in the man camps to building a shop and home in

located in Fairview, MT. The shop space allows the company to

Fairview, Montana. Several homes in the area provide comfortable

maintain the fleet and handle custom fabrication and welding.

places for employees to stay when away from their own homes.

A crew of hard-working employees has helped build the business

The company started out providing excavating, terminal

into what it is today. All employees are trained with safety being

monitoring, and gauging. As the needs of the area evolved, so

the top priority, including OSHA, H2S, and OQ. The company itself

have the services they offer. Their oilfield services have expanded

maintains high standards as part of ISN and Gold Shovel Standards. w

• Offering roustabout, excavation services and material hauling • Reliable services • Gold Shovel Certified • Member of ISN • All staff OQ trained through EWN 406-943-0121 38

BAKKEN OIL REPORT – Fall 2019

mel@barclaycompanies

barclaycompanies.com


TROUTMAN WELDING AND FABRICATION

Here to help Troutman Welding and Fabrication is a welding and fabrication

midway through completion. The customer called Troutman

company that is based in Williston, North Dakota. Their services

Welding requesting them to take over the project and correct

include design assistance & 3-D modeling, welding & fabricating,

measurements. Troutman Welding was willing to help and the

repairs, on-site assembly support, and QA & QC services.

building was completed successfully.

Through the commitment from their management and the buy-in from their field crews, their safety record is above that of their peer groups for the industry. The company’s projects range from simple repairs to large multi-well facilities and compressor stations. They also service drilling rigs and can fabricate new oilfield equipment. For instance, during a recent project in

Troutman Welding and Fabrication’s management team has over 150 years of combined experience in oilfield construction. They have a six-acre fabrication facility west of Williston where most of their work is done, but they also have two spreads of equipment that they can mobilize to their customers’ projects if needed. They

Williston, the company created a truck drag, which can be used to

strive to exceed their customers’ expectations on every project

smooth oilfield locations and gravel roads leading to them.

that they complete.

Recently, a customer had another company start construction on

For more information, you can visit Troutman Welding online at

a building, where problems occurred and the project was halted

www.troutmanwelding.com. w

BAKKEN OIL REPORT – Fall 2019

39


PEC SAFETY

Five powerful facts you need to know about refresher safety training By Chris Swider, director of training success, Veriforce Bakken organizations that perform high-hazard work rely heavily on occupational health and safety training to mitigate risk and keep their workers and communities safe. Safety training is a powerful tool that shouldn’t stop at the initial training certification required for employment. Organizations can reinforce important processes and precautions and help workers better understand and retain information that is critical to their safety by providing ongoing refresher training. Here’s why you should make refresher training an integral component of your safety program: • Safety training isn’t a one-and-done initiative. Workers retain less than half of what they learn within one hour of initial training and forget a staggering 70 percent one day later. Refresher courses reinforce critical information, including correct operation techniques, awareness of machine hazards, and proper use of personal protective equipment (PPE) to make sure employees are protected, confident in their abilities, and have the knowledge needed to perform their jobs. • Refresher safety training helps eliminate costly and potentially deadly mistakes. Refresher training reminds workers of proper techniques and best practices, and reinforces the importance of exercising caution and taking time to follow safety measures to protect themselves and others. Without it, workers are prone to accidentally skipping a step or improperly using specialized equipment, which can lead to injuries, expensive repairs, and disruption to work quality. • Workers expect it. Though most Bakken area workers are aware of the unique risks associated with their jobs, they rely on training to help get them home safely. Sixty-eight percent of workers cite training and development as the most important workplace policy. More than half of those surveyed say they would quit a job that didn’t provide proper training. • Job duties and technologies change. As the Bakken shale area evolves, workers often need to switch 40

BAKKEN OIL REPORT – Fall 2019

gears, sometimes revisiting tasks they have not performed for a prolonged period of time or working with equipment that has since been updated. In either case, they require a refresher on proper use. Utilizing or operating new equipment, even if it performs similarly to earlier models, requires refresher safety training to avoid misuse and prevent accidents. • Refresher training works! According to OSHA Injury and Illness Prevention Programs, employers who adhere to active health and safety programs experience up to 60 percent lower incident rates among their workforce. They also experience increased productivity and lower employee turnover rates. With frequent training, workers are more confident in their abilities to do their jobs, leading to greater job satisfaction. Veriforce ensures effective safety training and refreshing By leveraging Veriforce’s comprehensive safety orientation programs with ongoing refresher courses, you can ensure that your workers start with a strong foundation of high-quality, instructor-led safety awareness training and then regularly reinforce and strengthen their hazard awareness. Veriforce and PEC Safety, which recently merged and provide the industry’s most widely-adopted safety orientation, offer the PEC Bakken Region Overview. This specialized program is tailored to the specific hazards of working in the Bakken region, which maximizes training relevancy and its value to Bakken workers. Employees’ completion of this training program is automatically tracked and easily verifiable by hiring clients, making the PEC Bakken Region Overview course an excellent tool for demonstrating your organization’s ongoing commitment to safety. For more information visit pecsafety.com/bakken. Sources cited: Ebbinghaus Forgetting Curve; Occupational Safety and Health Administration; Udemy Research; and Veriforce. w


BAKKENPLACE MARKET

OIL REPORT

F

Pump Systems has been in business over 30 years. We handle a wide variety of products to meet the needs of our agricultural, residential, oilfield and industrial customers.

Call Dan or Levi at O: 651.282.0650

wmccarthy@go2e3.com

M: 651.319.7456

www.go2e3.com

888-414-2048

701-225-4494

or stop by our store at 530 25th Avenue E in Dickinson ND.

pumpsystems.com

Keller Consulting, LLC strives to find the best on-site supervisors that bring superior levels of experience and personality to your program. They will also provide great dedication to the oil and gas companies they work for.

• Thermal Fluid Heaters • Regen Gas Heaters • Bath Heaters • Electric Process Heaters • Liquid Storage Tanks

423-821-5200

www.heatec.com

Keller Consulting, LLC also has Hotshots available 24/7 to move Tubing, Rods, Equipment, Etc. All at a GREAT low rate.

Keller Consulting, LLC PO Box 824 Tioga, ND 58852 (701) 641-0146

DS ARE MARKETPLACE AD TO MATCH SIZE CONVENIENTLY CARD AND WE CAN YOUR BUSINESSR AD FOR FREE! DESIGN YOU

d call a r u o y e c la To p 8

7 4 4 4 8 2 7 7 1-8 one size only s Marketplace ha 5” x 2.125” 37 1/8th page 3. COLOUR INCLUDES FULL

Rob Leingang – Fleet Manager

Matthew Quesada – Commercial Sales Rep.

3701 State Street, Bismarck, ND • 701.223.5800 • puklichchevrolet.com

BAKKEN OIL REPORT – Fall 2019

41


www.MillerInsulation.com

I N S U L A T I O N

INSULATION, BUILDINGS, & SCAFFOLDING SERVICES, An ESOP Company PAINTING & COATING

OIL FIELD • INDUSTRIAL • COMMERCIAL • RESIDENTIAL

NORTH DAKOTA BRANCH LOCATIONS:

WYOMING BRANCH LOCATIONS:

UTAH BRANCH LOCATION:

3520 East Century Avenue Bismarck, ND 58502-1393 General Manager: Jeff Carlson Phone: 701-258-4323 Fax: 701-222-8045

3700 Salt Creek Highway Casper, WY 82601 General Manager: Fritz Messer Phone: 307-265-5646 Fax: 307-235-0052

50 North 500 West North Salt Lake, UT 84054 General Manager: Blu Penner Phone: 801-936-8352 Fax: 801-936-8397

3258 SW 110 Z Avenue Dickinson, ND 58601 General Manager: Brian Janke Phone: 701-225-5877 Fax: 701-225-7884

2615 Industry Drive Cheyenne, WY 82007 General Manager: Fritz Messer Phone: 307-635-5311 Fax: 307-635-8500

TEXAS BRANCH LOCATIONS:

3222 4th Avenue Southwest Fargo, ND 58103 General Manager: Curt Heiser Phone: 701-297-8813 Fax: 701-297-8816 9124 Derrick Avenue Williston, ND 58801 General Manager: Don Ell Phone: 701-572-2718 Fax: 701-572-7433

MONTANA BRANCH LOCATION: 192 Northstar Lane Bozeman, MT 59718 Project Manager: Sean Reed Phone: 406-624-3701

ARIZONA BRANCH LOCATION: 9040 West Larkspur Drive, Ste. 138 Peoria, AZ General Manager: Bob Conrad Phone: 623-434-8517

704 West 3rd Street Big Springs, TX 79720 Victor Juarez Phone: 432-217-5502 5656 N Sam Houston Parkway E. Houston, TX 77032 Phone: 346-998-5511

INDIANA BRANCH LOCATION: 722 Michigan Street Hammond, IN 46320 Chris House Phone: 708-741-8266


QUALITY. DEPENDABILITY. LUFKIN.

For more than 100 years, the Lufkin™ name has stood for production performance. Today’s Lufkin portfolio – from pumping units and downhole pumps to controls and automation – builds on that legacy, bringing new levels of value to your artificial lift operations. You can always count on Lufkin. Learn more at bhge.com/Lufkin

Copyright 2019 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved. 80266


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Bakken Oil Report 2019 Fall  

Bakken Oil Report magazine, explores the oil industry and the various legislative topics that revolve around this controversial industry.

Bakken Oil Report 2019 Fall  

Bakken Oil Report magazine, explores the oil industry and the various legislative topics that revolve around this controversial industry.