� A S S O C I A T I O N S & E V E N T S

� D R I L L I N G & C O M P L E T I O N

� M E R G E R S & A C Q U I S I T I O N S

Vol. 2, No. 24 • www.PetroleumNewsBakken.com A weekly newspaper for industry and government Week of September 29, 2013 • $2.50

page6

Rising Bakken oil productionshapes WPX transformation

ND

PC

The North Dakota Petroleum Council inducted Bob Mau into itshall of fame at the organization’s annual meeting in Grand Forks.

Year in reviewNDPC board chair Terry Kovacevich recaps 2013 at 32nd annual meeting

By MIKE ELLERDPetroleum News Bakken

In his opening remarks at the third dayof the North Dakota Petroleum

Council’s annual meeting in GrandForks on Sept. 18, not only did thecouncil’s board Chairman TerryKovacevich point out North Dakota’srecord-breaking oil production in July,but he also pointed out that the councilitself broke a record with its membership at 501members, up more than fivefold from the 87members the council had in 2008.

That increased membership, Kovacevich said,is important in the face of a growing oil and gas

industry in North Dakota that bringschallenges. “This continued growthhas brought with it some challenges,making our membership in thePetroleum Council more and moreessential as we work with state, localand federal governments to find solu-tions to the local impacts, bottlenecks,workforce, housing and regulatoryissues we and our communities face.”In addition, he said, the council is

dealing with a host of other issues including reg-ulatory matters, sportsman and conservationissues, flaring and the proposed Bureau of LandManagement hydraulic fracturing rules.

TERRY KOVACEVICH

see YEAR IN REVIEW page 8

Mau, Sample, Porter recognized byNorth Dakota Petroleum Council

Three individuals received special recognition from theNorth Dakota Petroleum Council during its 32nd annualmeeting held earlier in September in Grand Forks. Long-timeindustry service provider and MW Industries President BobMau was inducted into the council’s hall of fame. KennySample, who is retiring this fall from his regional sales posi-tion at Wyoming Casing Service after a long career in theindustry, received one of the council’s two outstanding serv-ice awards. The other outstanding service award went to staterepresentative Todd Porter of Mandan who has been instru-mental in passing key industry-related bills.

Bob Mau in the hall of fameThe hall of fame was created by the council in 2005, and

Correction: ND pipeline construction 9-22-13 story

An article on the pace of pipeline construction in NorthDakota that appeared in the Sept. 22 edition of PetroleumNews incorrectly reported that 17,540 miles of new pipelinewere constructed in North Dakota in 2012. The actual num-ber of miles of new pipeline constructed in the state in 2012was 2,470. Those miles brought the total miles of pipeline inNorth Dakota at the end of 2012 to 17,540.

In addition, the Sept. 22 article incorrectly reported that15,070 miles of pipeline were constructed in the state in2011, 12,717 miles in 2010 and 11,707 miles in 2009. Thosewere not the number of pipeline miles constructed each year,but instead were the total number of miles of existingpipeline in the state in each respective year.

The 2,470 miles of pipeline that were constructed inNorth Dakota in 2012 was a 5 percent increase over the

see NDPC AWARDS page 10

see CORRECTION page 14

Norstra spuds its first S. Alberta well in Montana

After months of planning and preparation, Norstra EnergyInc., the Texas-based exploration company looking toexplore the Southern Alberta Bakken in northern Lewis andClark County, Mont., reported Sept. 25 that the first well inthat play has been spud and that 850 feet of surface casinghave been set.

According to the company, Norstra Chief ExecutiveOfficer Glen Landry was onsite overseeing the initial drillingof the 13-11 Milford Colony well and collected cuttings andmud samples. “A notable observation is that there were sev-eral shows of heavy crude oil in the Marias formations,which is not necessarily indicative of hydrocarbons in eco-

see NORSTRA WELL page 15

GMX out of options2011 oil acquisitions fail to spare pummeling from natural gas price exposure

By STEVE SUTHERLINFor Petroleum News Bakken

GMX Resources Inc. is pressing forward witha plan to sell its major assets, subject to a

$338 million stalking horse bid from a group of itssenior lenders.

The subject of a well attended bankruptcy courthearing Sept. 10 was a debtors’ motion for an orderestablishing bidding procedures in connection withthe sale of substantially all of the debtors’ assets.

GMX asked the court to authorize and approvethe form of a stalking horse asset purchase agree-ment, to set dates for an auction and sale hearing,and to establish procedures to determine cureamounts related to the assumption and assignmentof contracts and unexpired leases.

GMX also asked for an order approving the saleof the assets free and clear of all liens, claims andencumbrances to the winning bidder; and authoriz-ing the assumption and assignment of contracts andunexpired leases.

It is hoped that the stalking horse bid will attractadditional bidding and preserve the company’s

EOG infilling Parshall480 infill wells planned on 80 units; incremental gains up to 2.7 mm barrels

By MIKE ELLERDPetroleum News Bakken

EOG Resources submitted an application withthe North Dakota Industrial Commission in

late September seeking authority to drill, com-plete and produce six additional wells on 80 sep-arate spacing units in Parshall field in southeastMountrail County for a total of 480 infill wells inthat field. Of the 80 spacing units, 36 are 1,280-acre units and 44 are 1,920-acre units. That appli-cation is on the commission’s Sept. 26 hearingdocket.

As a base case for estimated well economics,EOG presented data from three of its Parshallfield wells, the Burke 1-34H, Burke 2-35 and

Burke 18-27H. For the 1,280-acre units, EOGreports an estimated ultimate recovery of 1.295million barrels of oil for a scenario of two Bakkenwells, for an average of 647,500 barrels per well.In the eight-well scenario, EOG reports an EURof 3.020 million barrels for an average of 377,500barrels per well. Those EURs represent 3.4 and7.9 percent recoveries of original oil in place forthe two scenarios. The increased density willresult in an estimated incremental gain of 1.725million barrels. The six new wells on the 1,280-acre units will be split between the Bakken andThree Forks formations.

For the 1,920-acre spacing units, EOG reportsan existing three-well scenario EUR of 1.71 mil-

JUD

Y P

ATR

ICK

see GMX MOVES page 15

see EOG INFILLING page 14

“The debtors have been unable to raisesufficient capital to continue operatingand developing their assets because of

the debtors’ current capital structure andthe decline in the price of natural gas.”

—GMX Resources Inc.

2 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

Petroleum News Bakkencontents

MOVING HYDROCARBONS

NDPC ’13 WRAP-UPBAKKEN STATS

ASSOCIATIONS & EVENTS

FINANCE & ECONOMY

LAND & LEASING

COMPANY UPDATE

GOVERNMENT3 NDPC opposes second conservation fund

7 NDPC gathers for 32nd annual meeting

4 Keystone XL faces its foes

PEOPLE TALK

5 Keystone XL decision ‘not imminent’

5 Tankers filling Bakken crude delivery gap

15 Whiting closes $260 million acquisition

14 NDPC elects directors at annual meeting

11 Montana well permits and completions, Sept. 13-19

11 Bakken producers’ stock prices

12 North Dakota oil permit activity, Sept. 17-23

13 IPs for ND Bakken wells, Sept. 17-23

14 NDPC elects directors at annual meeting

SIDEBAR, Page 13: Top 10 Bakken wells by IP rate

Mau, Sample, Porter recognized by North Dakota Petroleum Council

Norstra spuds its first S. Alberta well in Montana

Correction: ND pipeline construction 9-22-13 story

ON THE COVERYear in review

NDPC board chair Terry Kovacevich recaps 2013 at 32nd annual meeting

GMX out of options

2011 oil acquisitions fail to spare pummeling from natural gas price exposure

EOG infilling Parshall

480 infill wells planned on 80 units; incremental gains up to 2.7 mm barrels

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C O M P A N Y U P D A T E

A S S O C I A T I O N S

L A N D & L E A S I N G

Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013

Crude on rails in for long haul

VER

N W

HIT

TEN

PH

OTO

GR

APH

Y

Plains All American’s Manitou crude oil and NGL rail facility nearRoss, west of Stanley in Mountrail County, North Dakota. Phototaken this winter by Vern Whitten. See rail story below.

WLL gets bum rapJames. T. Brown: Whiting Petroleum is not running out of drilling inventory

By RAY TYSONPetroleum News Bakken

Denver-based E&P independentWhiting Petroleum Corp. is finding

it difficult convincing investors that thecompany is not running out of suitableplaces to drill.

“The knock against Whiting is that youguys don’t have any inventory and in threeyears you’re going to be done,” James T.Brown, Whiting’s president and chief operating offi-cer, told industry analysts Feb. 6 at the Credit Suisse2013 Energy Summit in Vail, Colo.

The lack-of-inventory perception seems to be par-

ticularly acute when it comes to findingnew targets in Whiting’s flagship Sanishfield in North Dakota’s Williston Basin,which accounts for around 30,000 barrelsper day, or nearly 40 percent of the compa-ny’s roughly 80,000 barrels per day of pro-duction.

By the end of 2012, a total of about 300production wells had been drilled in theSanish field, with at least another 200 to bedrilled and completed.

“It seems that when we get to the end of everyyear, we have two-and-half to three years of drilling

Riverbed draws top bidsQEP Energy high bidder on 22 Missouri River leases; shore zone included

By MIKE ELLERDFor Petroleum News Bakken

A total of 27,370 acreswere leased in 306 tracts

in nine western North Dakotacounties in the Feb. 5 NorthDakota Department of TrustLands oil and gas lease auctionbringing in a total of$24,609,206 at an averageprice of $899 per acre. The auction was dominated bytracts between the former high water marks on thetwo banks of the Missouri River under LakeSakakawea in Dunn County.

Of the 27,370 acres leased, slightly less than one-

third or 9,900 acres were in106 Missouri riverbed tracts inDunn County and those tractsbrought in a total $21,227,455,a sum that accounted for morethan 86 percent of the grossauction proceeds.

The Dunn County leaseactivity was, in turn, dominat-ed by 22 Missouri riverbedtracts totaling 1,465 acres that

fetched a total of $16,536,197 at an average price of$11,291 per acre, all purchased by Denver-basedQEP Energy Co.

Galt: MPA ever vigilantMontana Petroleum Association chief keeps tabs on several bills during session

see WHITING INVENTORY page 18

LANCE GAEBE DREW COMBS

see ND LEASE AUCTION page 21

By MIKE ELLERDFor Petroleum News Bakken

Numerous oil and gas-related billshave been introduced thus far in the

63rd session of the Montana legislaturecurrently in session in Helena, and whileMontana Petroleum Association ExecutiveDirector Dave Galt follows all of themclosely, he recently spoke with PetroleumNews Bakken and discussed those that hethinks are most important to his membership.

The key bills Galt identified fall into a variety ofcategories. Some deal with compensation forlandowner surface damage, eminent domain andforced pooling, all of which Galt lumps together intowhat he considers to be “property rights” legislation.Other bills that Galt considers key deal with taxation,

temporary leasing of water rights, financialrelief to oil and gas-impacted communities,and carbon sequestration and enhanced oilrecovery using carbon dioxide.

Property rights: surface damage compensation

House Bill 431, introduced by Rep.Austin Knudsen of Culbertson, is a surfacedamage compensation bill that would addto the existing oil and gas surface damage

and disruption compensation statue the definition of“lost land value” as “the value of the highest and bestreasonably available use, including the proposed use.”The bill would also require that the surface owner andthe oil and gas developer or operator attempt “in good

DAVE GALT

see ENERGY LEGISLATION page 22

Rail will survive pipeline additionsThe need for rail to move crude from

Midcontinent fields will likely persist,even if plans for expanding pipelinelinks from the Bakken to the Gulf Coastgo ahead, EOG Resources ChiefExecutive Officer Mark Papa told aColorado conference.

He said rail will still be used fiveyears from now to deliver Bakken crudeto all three Lower 48 coasts — the Gulf,East and West — but expects the cur-rent advantage of Louisiana Light Sweet, LLS, crude pricesin the Houston market will probably change within 18

Bakken threatens Alberta upgraderThe Bakken might be about to register a friendly-fire vic-

tim — a C$11.6 billion Suncor Energy upgrader to convert oilsands bitumen into synthetic crude for refining into fuels.

Suncor, with France’s Total as a 49 percent partner, expectsto decide no later than March 31 on the immediate fate of itsVoyageur project, which has been in a holding pattern for thelast four years, putting an end to its original startup date of2016.

Since taking control of the oil sands giant nine monthsago, Suncor Chief Executive Officer Steve Williams hasincreasingly hinted that economic challenges could be theundoing of Voyageur.

His explanation has been delivered in clear-cut terms.

Helms slams U.S. Fish & Wildlife Two new slides have appeared in

Lynn Helms’ presentation packet —slides with information that he thinksindicate an attempt bythe U.S. Fish & WildlifeService to take over oiland gas permitting inNorth Dakota.

One is a map backing up his agency’srecent analysis that shows 83 percent ofNorth Dakota’s oil and gas spacing unitshave some federal land ownership, surface and/or minerals.

Helms, director of the North Dakota IndustrialCommission’s Department of Minerals, Oil and Gas Division,told North Dakota lawmakers in January, “It was really sur-prising to me when we did this analysis to find out that 83

see RAIL SURVIVAL page 24

MARK PAPA

see ALBERTA UPGRADER page 24

see PERMITTING page 10

JAMES T. BROWN

LYNN HELMS

page6

Senate majority leader weighs in onNorth Dakota oil, gas legislation

GETTHE LATESTBAKKEN NEWSSUBSCRIBE TODAY!907-522-9469PETROLEUMNEWSBAKKEN.COM

3 Nine new wells for Arsenal Energy

At 94% liquids, North Dakota production is sweet reward for Calgary-based Arsenal; Lindahl wells performing ‘typically’

6 Rising Bakken oil production shapes WPX

Company’s oil production surges 30%, operatingefficiencies improve; management hints ’14 shift in oil vs. gas production ratio

4 Pension fund sues Hamm over pipeline

Continental minority shareholder claims oilman, boardmembers breached their fiduciary duty to protectinterests of little guy

8 Helms updates NDPC on oil production

ND oil production could reach 1.6 million barrels per day; 20 years of ‘phase 3’ ahead; NDIC looking at rule changes

6 Hamm, Kaiser rank among richest oilmen

Energy executives’ substantial Bakken holdings contributeto assets that place them among world’s 400 wealthiest businesspeople

By STEVE SUTHERLINFor Petroleum News Bakken

Calgary-based Arsenal Energy Inc.,which operates in the United States

under its wholly owned subsidiary ArsenalEnergy USA, drilled or completed ninenew wells in the third quarter, the compa-ny said in a Sept. 9 operational update.

Arsenal said it completed four Bakkenwells at Lindahl in northwest WilliamsCounty, North Dakota, drilled four wellsat Princess in Alberta, and drilled one wellin the Alberta Deep Basin at Chauvin, alsoin Alberta.

The four completed Bakken wells werefracked and put into production at Lindahl,the company said, adding that “the wellsare performing typically of other Bakkenwells in that field.”

Arsenal has begun permitting work ontwo Bakken wells at Stanley in centralMountrail County and one Bakken well atRennie Lake in central Burke County. Thewells are scheduled for drilling in the firstquarter of 2014.

North DakotaArsenal has 11,509 net mineral acres in

three areas of the Bakken and Three Forksformations. Stanley is 4,182 acres, Lindahlis 743 acres and Rennie Lake is 6,584acres.

Current production at Stanley is 1,400barrels of oil equivalent per day from theBakken and Three Forks formations. AtLindahl, current production is 200 boe perday from the Bakken and Three Forks. AtRennie Lake the planned 2014 well willtest the company’s acreage.

At Stanley, horizontal wells into theBakken cost slightly over $8 million todrill, complete operations, equip and tie-in— typically drilled on two section spacingunits approximately 9,200 feet verticallyand approximately 9,500 feet horizontally,Arsenal said. Wells are completed utiliz-ing multi-stage fracking technology.Fracked wells have initial production ratesof approximately 1,000 boe per day butdecline within six months to approximate-ly one-third of the initial rate followed byan extended low-decline profile. Each wellis expected to recover a total of approxi-mately 500,000 barrels of light oil,depending on the size of the spacing unit.

At Lindahl, Bakken and Three Forkswells drilled from a multi-well pad costapproximately $8 million to drill, com-plete, equip and tie-in — drilled to a verti-cal depth of 9,800 feet and horizontally9,200 feet over the two section spacingunit, Arsenal said. Well performance issimilar to Stanley wells, with total recov-ery slightly lower at 475,000 barrels of oil.

Arsenal said it participated in fourwells in which it sports a working interestof approximately 6.3 percent. These wellswere completed and put onstream in firstquarter 2013. Arsenal expects the operatorto drill four additional wells (0.025 net) in2013.

At Rennie Lake/Black Slough, thereare no Bakken wells on company lands,Arsenal said, but “competitors have sur-rounded the Company’s acreage with pro-ducing oil wells.”

AlbertaAlberta accounts for 63 percent of

Arsenal’s corporate production butaccounts for just 44 percent of corporatefunds from operations due to the highnatural gas component — 39 percent ofthe company’s Canada production. Incontrast, U.S. production is 94 percentoil and natural gas liquids.

At Princess the company brought intwo oil wells and one gas well. Thefourth well was suspended.

A vertical exploratory well tested ahalf section structural closure identifiedon seismic. After two weeks the well pro-duced 90 barrels of oil per day.

Arsenal said it had identified six fol-low-up locations at Princess.

At Chauvin, Arsenal completed itsfirst Leduc horizontal well, which swabtested at 110 barrels of oil per day. Thewell is scheduled to be in production bythe end of September.

The company has identified six fol-low-up locations at Chauvin. It drilled asimilar prospect at Edgerton, Alberta, in2012, which continues to produce 30bpd.

In the Alberta Deep Basin atColumbia, Arsenal participated for a 50percent working interest in a horizontalexploration test of the Falher formation.The well will be completed in the thirdquarter and is scheduled to go into pro-duction in the fourth quarter.

Arsenal said it is maintaining 2013exit rate guidance at 4,400 boe per daybut is increasing cash flow guidance for2013 to $44 million due to higher real-ized oil prices. In September Arsenal’scurrent production of 4200 boe per dayconsisted of 44 percent light oil, 32 per-cent medium oil and 24 percent naturalgas. �

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 3

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GOVERNMENTNDPC opposes second conservation fund

The North Dakota Petroleum Council’s board of directors passed a formal res-olution during the council’s annual meeting in Grand Forks on Sept. 17 opposinga ballot initiative that would create a conservation fund for parks or habitat proj-ects. According to the Petroleum Council, the initiative would divert 5 percent ofoil and gas extraction taxes from roads, schools and other funding priorities.

The proposed fund would be in addition to the Outdoor Heritage Fund that waspassed during the 2013 North Dakota legislative session. The Petroleum Councilsupported that legislation.

“The board wholly believes this initiative is a wrong approach and would takeaway from other critical needs across the state without any legislative prioritiza-tion and very little oversight in how a significant amount of money is spent,” saidTerry Kovacevich, Petroleum Council board chairman in a Sept. 20 press release.“The industry supports conservation efforts and advocated for the creation of theOutdoor Heritage Fund last session. We need to give that fund time to work.”

Constitutional amendment requiredThe initiative would require an amendment to the state’s constitution, and in

order to be put on the November 2014 ballot, initiative backers need to get 26,904signatures. According to the Petroleum Council, if the initiative were to pass, thefund could collect from $75 million to $100 million annually and requires that 75percent of the funds collected each year be spent each year. The initiative alsoauthorizes the funds to be used for land acquisitions.

At the projected funding level, Kovacevich says that at $2,000 per acre, thefund could purchase 150 acres or a nearly quarter section of land each day. “That’san average-sized North Dakota farm every 10 days. Clearly this initiative is acause for concern on many levels, and we will be working with the agricultureindustry and business organizations to educate voters about the possible ramifi-cations this measure could have on agriculture, our state’s business climate, andour ability to fund priorities in the future.”

—MIKE ELLERD

� C O M P A N Y U P D A T E

Nine new wells for Arsenal EnergyAt 94% liquids, North Dakota production is sweet reward forCalgary-based Arsenal; Lindahl wells performing ‘typically’

4 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

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MOVING HYDROCARBONSKeystone XL faces its foes

Opponents of the Keystone XL pipeline have completed a barn raising, butfailed to raise much of a storm in Washington, D.C.

They have just finished a barn on XL’s planned right of way in Nebraska,which they say TransCanada will eitherhave to destroy or divert around.

To drive home their resistance to theshipment of crude from the Alberta oil sandsand the Bakken formation to Cushing,Okla., volunteers have provided for solar-and wind-power to operate the barn.

To celebrate completion of the structurethey invited billionaire investor and philan-thropist Tom Steyer, who has funded a $2million campaign to fight XL, to join the ceremonies.

TransCanada has already shifted the pipeline’s proposed route to bypassNebraska’s sensitive Sandhills region and the Ogallala Aquifer.

Turnout lightMeanwhile, there was only a paltry turnout of protestors at Washington’s

Lincoln Park on Sept. 21 in what had been billed as a nationwide day of actionagainst XL.

Organizers, who had claimed there would be more than 200 “actions” in citiesand towns across the United States and Canada, attracted only a few dozendemonstrators for their main event.

The protests coincided with the fifth anniversary of TransCanada’s initial reg-ulatory filing for the 1,140 mile, $5.3 billion pipeline.

“It’s going to take a lot more Americans for President Obama to say ‘No’ toKeystone,” said David Barrows, who wore an anti-Keystone T-shirt. “I had hopedthere would be more people.”

The latest indication from the White House points to a final decision by Obamaearly in 2014.

—GARY PARK

They have just finished abarn on XL’s planned right ofway in Nebraska, which theysay TransCanada will either

have to destroy or divertaround.

� F I N A N C E & E C O N O M Y

Pension fund suesHamm over pipelineContinental minority shareholder claims oilman, board membersbreached their fiduciary duty to protect interests of little guy

By ROSE RAGSDALEFor Petroleum News Bakken

Aminority shareholder filed a lawsuitin Oklahoma County district court

seeking damages from Harold G. Hammand other executives of ContinentalResources Inc. over a pipeline dealbetween Continental Resources andHiland Partners LP.

The Laborers District CouncilConstruction Industry Pension Fund, in asuit filed Sept. 18 in the District Court ofOklahoma County, claims Hamm unfair-ly benefits from a deal struck on a newpipeline from North Dakota to Wyomingbecause of his ties to both companies.

In addition to Hamm, the suit namesContinental Resources and members ofits board of directors, Hiland Partners LP,Hiland Holdings GP LP and Hiland CrudeLLC.

Hamm, family, majority ownersNoting that Hamm, Continental’s

founder and CEO and his family own 68percent of the company, the pension fundobserved that Hamm and trusts benefitinghis family own controlling interests in theHiland companies. Hamm also serves aschairman of the board of both HilandPartners and Hiland Holdings.

The suit references Continental’s fil-ings with the Securities and ExchangeCommission that outline an agreementwith an “affiliate” (later identified asHiland) for a yet-to-be-built pipeline forcrude oil transmission. Under the agree-ment, Continental committed to pay theaffiliate $95.8 million over five years forpipeline capacity of 10,000 barrels ofcrude oil per day for five years, butplanned to use on a fraction of thepipeline’s capacity to ship oil, while con-tinuing to transport oil by more costlyrail.

The pension fund also claims theagreement was entered into despite theapparent lack of need for a new pipelinein the area, and despite Hiland’s lack ofexperience developing and operating aninterstate crude-oil pipeline.

The complaint noted that Continental

failed to seek an independent, outsidereview to determine whether the transac-tion was fair before inking the agreementwith Hiland. Nor did the companyappoint a special committee of independ-ent directors to negotiate the deal withHiland.

Charge breach of fiduciary dutiesThe pension fund charged Hamm and

the other defendants with breaching theirfiduciary duties to Continental and itsminority shareholders, and that all profits,benefits and other compensation obtainedby Hamm and the other defendants to besurrendered.

“Under Oklahoma law, becauseHamm, Continental’s majority sharehold-er, stands on both sides of the transaction,the heightened ‘intrinsic fairness’ stan-dard of review applies. Under this stan-dard, Hamm has the burden of provingboth that the transaction is ‘financiallyfair’ to the company and that the processemployed in negotiating the transactionwas procedurally fair. Based on the factsalleged herein, Hamm cannot satisfy thisburden,” the suit said.

The pension fund also asked the courtfor damages for the company, with pre-and post-judgment interest to the compa-ny and for a jury trial.

A spokeswoman for ContinentalResources Sept. 25 said the company hadnot been served with the suit. “We justwould not feel comfortable commentingon any lawsuit when we have not beenserved,” she told Petroleum NewsBakken. �

The Laborers District CouncilConstruction Industry Pension

Fund, in a suit filed Sept. 18 in theDistrict Court of Oklahoma

County, claims Hamm unfairlybenefits from a deal struck on anew pipeline from North Dakotato Wyoming because of his ties to

both companies.

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 5

� M O V I N G H Y D R O C A R B O N S

Keystone XL decision ‘not imminent’

By GARY PARKFor Petroleum News Bakken

North Dakota Bakken producers are stepping uptheir use of tankers to maintain crude deliveries to

the Irving Oil refinery, Canada’s largest with capacity of300,000 barrels per day.

Having lost their main rail route following the deadlyJuly accident in the Quebec town of Lac-Megantic, theproducers expect to double shipments from Albany,N.Y., to Saint John, New Brunswick.

Despite a setback last December when a tanker carry-ing Bakken crude ran aground in the Hudson River, ship-ments on the tanker Afrodite has been moving crude

every eight days (representing about 70,000 barrels) andare expected to double, said Port of Albany general man-ager Rich Hendrick.

He told the Canadian Broadcasting Corp. that a sistership of Afrodite is expected to make those increased vol-umes possible “in the very near future.”

Riverkeep concernedBut John Lipscomb, a spokesman for the environ-

mental watchdog Riverkeep, said he is concerned aboutthe doubling of tanker traffic on a 150-mile stretch ofnarrow river.

He said there is a serious question about whethercrude tankers should even be allowed on an “extremely

sensitive estuary.”Lipscomb doubts that emergency responders would

be able to handle a spill on the Hudson River’s upperreaches, although more will be known from results of amock oil spill exercise this fall.

Last December, the 600-foot tanker Stena Primorskwas delayed when it ran aground, carrying 11.7 milliongallons (279,000 barrels).

The vessel, whose outer hull was breached, returnedabout 10 miles to Albany, where the contents wereoffloaded to barges.

There has been no subsequent report from CoastGuard investigations into the incident.

� M O V I N G H Y D R O C A R B O N S

Tankers filling Bakken crude delivery gap

see DELIVERY GAP page 15

By GARY PARKFor Petroleum News Bakken

Stalling by the Obama administration on the KeystoneXL pipeline — viewed as a much-needed shipping

option for Bakken and Western Canadian crude — isprodding the Canadian government to intensify its effortsto find oil export markets beyond the United States,Natural Resources Minister Joe Oliver said.

He told a Calgary audience earlier in September thatbased on information gleaned during his latest trip to theU.S. a final decision on the TransCanada project “is notgoing to be imminent,” despite five years of waiting sincethe application was first filed.

Oliver noted that the State Department has still tocomplete a 90-day review, after which other U.S. govern-ment agencies have to offer their opinions, followed by

more public consultations.He declined to predict when President Barack Obama

might render his decision beyond suggesting early 2014.Oliver pointed out that governors in all states that

Keystone XL will cross now support the project.

Call for diversifying“Canada must diversify its energy markets, since vir-

tually all of our oil and gas exports go to the UnitedStates, whose recent discoveries mean it will needCanadian resources less in the future,” he said.

“Our plan for responsible resource developmentinvolves meaningful engagement with Canadians acrossour country to enhance Canadian jobs, security and theenvironment.”

Oliver said the petroleum industry supports 1.8 mil-lion Canadian jobs, almost one-fifth of the Canadian

economy, generates C$30 billion in annual governmentrevenues and accounts for half of Canada’s export values.

Reiterating his government’s commitment to safetyand the environment, he said Canada has introduced newfines of up to C$100,000 a day that will “preventivelyaddress” contraventions of the law in the pipeline sector.

In addition, Oliver said annual oil and gas pipelineinspections will be increased by 50 percent, comprehen-sive audits of pipelines will be doubled and major crudepipeline companies will be required to arrange a mini-mum financial capability of C$1 billion to clean up dam-age from spills.

The Canadian government is also promising legisla-tion to raise absolute liability for companies operating inthe Atlantic and Arctic offshore to C$1 billion, he said. �

By STEVE SUTHERLINFor Petroleum News Bakken

WPX Energy Inc. is undergoing amultifaceted transformation that

allows it to take advantage of lower costsand a surge in oil production from itsWilliston basin properties.

“We have high-performing assets andwe are continuing our track record ofoperations and exploration success,”Ralph A. Hill, WPX president and chiefexecutive officer said in the company’s

second quarter 2013earnings report.

In remarks at thecompany’s Aug. 1conference call, Hillsaid a rise in produc-tion ratios of oil togas might occur in2014, after newBakken oil produc-tion comes online.He cautioned, however that the ratiowould not change much in 2013.

“I think for the mix, at the end of theyear, I don’t think we will see a substan-tial change in the mix,” he said addingthat 2013 levels would remain near thosequoted by the company earlier in the yearof about 78 percent gas.

“I would guess that mix would beabout the same, just because a lot of theBakken production out there will be com-ing on at the end of the year but notenough to change overall percentage for

the year,” he said.

Technological improvementsWhile higher oil ratios would likely

lead WPX to higher sales in a market-place soft on natural gas, executivesemphasized that the company has alsoenjoyed a dramatic positive impact ofrapid technological improvements withinits Bakken operations.

“In the Williston, we’re now doingsimultaneous operations like we’ve donein the Piceance, allowing us to both drilland complete wells concurrently on thesame pad”, Hill said. “This is one waywe’re driving down drilling days and

� C O M P A N Y U P D A T E

Rising Bakken oil production shapes WPXCompany’s oil production surges 30%, operating efficiencies improve; management hints ’14 shift in oil vs. gas production ratio

6 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

� P E O P L E T A L K

Hamm, Kaiser rank among richest oilmenEnergy executives’ substantial Bakken holdings contribute to assets that place them among world’s 400 wealthiest businesspeople

By ROSE RAGSDALEFor Petroleum News Bakken

While Harold Hamm, chairman and chief execu-tive of Continental Resources Inc., has topped

Forbes magazine’s ranking of wealthiest oilmen inAmerica again, another energy mogul with significantassets in the Bakken, George B. Kaiser, made the list atNo. 3.

Hamm, worth $12.4 billion, is the 33rd-richest per-son in America overall and was ranked No. 90 amongthe world’s billionaires. Forbes released its list of 400richest Americans Sept. 16, and Hamm, 67, climbed twoslots from No. 35 last year. Microsoft founder Bill Gatestopped the magazine’s 2013 list in America and world-wide with a net worth of $72 billion.

Kaiser, 71, is president of privately held Kaiser-Francis Oil Co., which has operations in a number of oilstates, including North Dakota. Tulsa, Okla.-basedKaiser-Francis operates as a subsidiary of GBK Corp., aholding company which Kaiser also heads as presidentand CEO.

Kaiser, worth $10 billion, trailed Richard Kinder,chairman and CEO of pipeline operator Kinder MorganInc. who has assets worth $10.2 billion. Kinder rankedNo. 2 on the Forbes list of U.S. energy executives andNo. 39 overall, down from 36th place last year. Kaiserranked No. 3 among oil and gas execs and No. 40 over-all, down from No. 33 in 2012.

Kaiser’s uncle founded Kaiser-Francis Oil, and he

took charge of the company in the 1960s. In the newsmost recently for Solyndra, the solar company thatfailed after receiving hundreds of millions in taxpayerbacking, Kaiser also established the $3 billion GeorgeKaiser Family Foundation, which makes more than $40million a year in charitable donations, primarily forearly childhood education.

In the 1990s, Kaiser bought the Bank of Oklahomaout of federal receivership for $60 million; his stake isnow worth $2.5 billion. The banker/oilman is currentlypursuing energy plays in North Dakota, Wyoming andCanada. He also founded Excelerate Energy, whichships liquefied natural gas around the world and ownsnumerous other assets. �

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RALPH HILL

“Our well costs are still in the $11million range — that’s soup tonuts; that includes everything.” —WPX Energy President & CEO Ralph Hill

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 7

� A S S O C I A T I O N S & E V E N T S

NDPC gathers for 32nd meetingOver 800 register for council’s 32nd annual meeting held for first time ever in Grand Forks

BY MIKE ELLERDPetroleum News Bakken

The North Dakota Petroleum Council

had more than 800 registrants at its

32nd annual meeting held at the Alerus

Center in Grand Forks on Sept. 16, 17 and

18, marking the first time the council held

its annual meeting in Grand Forks. The

three-day event included a trade show and

exposition as well as numerous speakers

ranging from technical to inspirational.

The first day of the meeting was free

and open to the public as part of the coun-

cil’s ongoing community outreach efforts.

The council held two Bakken education

sessions on that first day in which council

President Ron Ness, council board mem-

ber Kathy Neset and North Dakota

Department of Mineral Resources Director

Lynn Helms provided the public with a

primer on the oil and gas industry in North

Dakota. Those sessions were attended by

an estimated 325 people. The first day was

topped off with a community barbeque

where members of the public were able to

meet and visit with council members.

Statoil in the BakkenOne of the speakers at the meeting was

Statoil US President Bill Maloney, who

said Statoil, which operates in 34 countries

worldwide, is currently producing 2 mil-

lion barrels of oil equivalent per day, and

has set a production target of 2.5 million

boepd by 2020. Statoil’s North American

operations, including the Bakken, will

contribute to that production increase.

Statoil has three premium portfolio

core plays in the U.S.: the Bakken; the

Eagle Ford in Texas; and Marcellus in

Ohio, West Virginia and Pennsylvania.

Current production from those three plays

totals 167,400 boepd, with the Bakken

contributing 45,100 boepd of that total.

Maloney noted that Statoil’s recently

completed Beaux 18-19#7H well came in

with a 24-hour production rate of 7,139

boe. That IP, he said, is the second-highest

24-hour IP in the basin and a record

Bakken IP for Statoil.

Statoil has approximately 339,000 net

acres in the Williston Basin. The

Norwegian company entered the Williston

in 2011 through the acquisition of

Brigham Oil and Gas, which is the most

significant move that Statoil has made in

North America in years and the company

is very pleased. Along with Shell and BP,

Statoil is one of the largest foreign

investors in the U.S. energy market in the

last two years.

Maloney said Statoil takes a long-term

view of its operations in these plays and is

committed to operating safely, minimizing

the company’s environmental footprint,

earning trust and continually improving.

BNSF in North DakotaBurlington Northern Santa Fe Chief

Executive Officer Matt Rose talked about

the importance of rail transport in export-

ing crude oil from the Williston Basin.

Rose said BNSF had much of the infra-

structure and foundation for its crude-by-

rail in place before the oil boom because of

its long history of exporting agricultural

products from the state. Rose said BNSF is

now carrying more than 600,000 barrels of

crude out of the Williston Basin per day,

and he predicted that by year’s end that

volume would increase to 750,000 bpd.

Rose continued, saying that BNSF car-

ried 145 million barrels of crude in the first

eight months of 2013, and that number is

expected to reach 200 million barrels by

the end of the year. BNSF is running 11

loaded unit trains per day and 500 manifest

units per week in the U.S.

BNSF not only moves crude out of the

state, but also brings oil field supplies such

as sand, pipe, aggregates, bentonite and

cement into North Dakota. Each horizontal

well, he said, requires about 40 rail car

loads in inbound products, and last year,

BNSF shipped more than 15 million tons

of sand and building materials. Rose added

that the railroad is also shipping down-

stream products from refineries.

As the oil industry continues to grow in

North Dakota, Rose said BNSF will con-

tinue to invest and build infrastructure to

meet the demands of that growth.

Bakken reservoir researchJohn Harju, associate director for

research at the Energy and Environmental

Research Center, EERC, at the University

of North Dakota, and Stan Wilson, manag-

er of resource development with

Continental Resources gave a presentation

on Bakken reservoir research.

Harju discussed the optimization pro-

gram that EERC partners with a number of

stakeholders. That program’s goal is to

facilitate ongoing efforts to optimize

Bakken and Three Forks production

through advanced reservoir characteriza-

tion, improved drilling, and improved

completion and production techniques.

The program also looks at optimization of

surface operations and reduced surface

impacts.

Wilson’s presentation began with dual

zone tests that Continental conducted in

the middle Bakken and first bench Three

Forks formations in McKenzie and Dunn

counties. Those studies, he said, found that

neither zone can be adequately drained by

the other; that wells are necessary in both

zones to harvest the reserves; and that mid-

dle Bakken and Three Forks reserves are

similar in magnitude.

In addition, Wilson said Continental

conducted a 10-well deep coring program

in 2012 to evaluate oil saturation in the

second, third and fourth benches of the

Three Forks formation. One core had satu-

ration in only the second bench, but two

cores showed saturation in the second and

third benches and three cores showed sat-

uration in all three lower benches.

Continental is currently drilling 20

gross wells to evaluate deep bench pro-

ductivity along with several pilot density

tests according to Wilson. He said

Continental has been able to delineate an

area covering approximately 3,800 square

miles in northwest North Dakota that is

potentially productive in the lower Three

Forks formation.

Wilson also said Continental is con-

ducting multiple-bench testing in its

Charlotte unit in northern McKenzie

County. In that test, Continental drilled

wells in the middle Bakken and the first

three benches of the Three Forks and to

date has seen no evidence of production

interference between any of the wells.

Key regulatory issuesNDPC board member Dave Searle of

Marathon Oil gave a rundown of some of

the more important regulatory issues the

council’s Regulatory Committee is deal-

ing with. One of those issues is manage-

ment of naturally occurring radioactive

material, NORM, in produced water.

Searle said produced water contains

small amounts of radioactive isotopes

that typically don’t pose a problem unless

concentrated, but they do become con-

centrated in the filtering process. He said

current North Dakota law does not allow

for the disposal of solid NORM waste in

landfills, but the regulatory committee is

working with both the North Dakota

Department of Health and the

Department of Mineral Resources to try

to find a solution. However, Searle said

North Dakota does allow underground

injection of NORM-impacted water, and

while no wells have been permitted, the

state is waiting to see its first application.

Wildlife, including sage grouse, is

another issue the committee is dealing

with. Searle said the sage grouse is an

important issue and he is not dismissing

it, but added that it affects only a very

small portion of North Dakota.

Another bird, however, the Sprague’s

Pipet, is found in 46 of North Dakota’s 53

counties according to Searle. It is current-

ly listed as “warranted but precluded,”

which means the population and habitat

are threatened but the U.S. Fish and

Wildlife Service doesn’t have the

resources to list the species as endan-

gered. Searle said if the agency takes the

next step and lists the species as endan-

gered, that could have a significant

impact on North Dakota.

Searle noted that the regulatory com-

mittee continues works closely with

numerous federal and state agencies on a

regular basis, including the Bureau of

Land Management and the Forest

Service. He said the industry has a very

good working relationship with those

agencies, but noted that both are dealing

with staffing shortages and BLM is get-

ting farther behind on issuing permits.

Other speakersNumerous other speakers gave

addresses at the meeting, including Grand

Forks City Council President Hal

Gershman who welcomed the council to

his city. Terry Kovacevich, Petroleum

Council board chairman, reviewed the

council’s activity over the last year (see

story on page 1).

The keynote speaker at the meeting

was legendary college football coach Lou

Holtz. In his inspirational address titled

“Making Good Choices,” Holtz talked

about the importance of trust, commit-

ment and accountability and stressed the

importance of keeping things simple.

North Dakota Gov. Jack Dalrymple

talked about how his state is benefitting

from the oil and gas industry and also

about the challenges the industry poses to

the state. North Dakota’s lone U.S.

Congressman Kevin Cramer addressed

the conference in person, and U.S. Sen.

Heidi Heitkamp addressed the meeting

via a prerecorded video.

Brian Cebull of GTUIT/G2G

Solutions of Billings, Mont., discussed

the flaring problems facing North Dakota

and various solutions, including his com-

pany’s technology which captures natural

gas liquids at the wellhead through com-

pression and refrigeration. Jamie Harris

of Halliburton talked about her compa-

ny’s H2O Forward initiative which

revolves around the reuse of flowback

and produced water. Jim Sorenson of

EERC gave a presentation about

enhanced oil recovery in the Bakken for-

mation using carbon dioxide.

Jim Albano, chief of the fluid minerals

branch of the Bureau of Land

Management’s Montana/Dakotas office

discussed the working relationship

between BLM and the Petroleum Council

as well as an update of BLM activities.

In his presentation, Alex Epstein of the

Center for Industrial Progress stressed the

importance of the oil industry taking a

more aggressive role in countering anti-

industry rhetoric and misinformation. �

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8 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

Kovacevich was elected to a two-year

term as chairman of the council’s board in

2012. He is a regional vice president with

Marathon Oil Co. and has more than 35

years of experience in domestic and inter-

national oil and gas operations.

Kovacevich was transferred to North

Dakota as operations manager in 2006.

2013 North Dakota legislatureThe council was busy during the 2013

North Dakota legislative session, which

Kovacevich noted was the longest session

in the history of the legislature. There

were more than 800 bills introduced in

the session, many of which were either

directly or indirectly related to the oil and

gas industry. “An overall successful ses-

sion,” Kovacevich said. “We saw changes

to the oil tax structure, a new Tribal tax

agreement, the development of the North

Dakota Outdoor Heritage Fund, flaring

tax incentives, positive changes to the

One Call system, a bill to make acquiring

easements easier, changes to the permit-

ting process for some pipelines, water and

surface rights bills, and an energy corri-

dor study.” In addition, he said, the

Petroleum Council worked for increased

funding to address impacts to oil commu-

nities, and added that “never before seen

levels of funding for oil impacts are a

positive step toward meeting the needs of

the communities.”

The council introduced a new legisla-

tive website at the beginning of the 2013

legislative session, and through that web-

site, council members sent more than 600

email messages to legislators during the

session.

Looking forward, Kovacevich identi-

fied several key upcoming legislative

issues include flaring, oilfield waste,

reclamation, landowner issues, royalty

issues and a more organized opposition to

issues the council does not support. Those

issues, he said, will be addressed by the

council’s seven ad hoc committees and

their numerous subcommittees.

NDPC regulatory committeeKovacevich said the council’s regula-

tory committee had a busy year, working

closely with a number of federal and state

agencies. He said the committee has a

memorandum of agreement with BLM

and provided funding for a BLM worker

program to provide additional staffing to

address the backlog of drilling permits.

The committee has also been involved in

BLM’s controversial proposed hydraulic

fracturing rule.

The committee worked with both

BLM and the U.S. Forest Service to

streamline the permitting process,

Kovacevich said, and he noted that nearly

200 council members attended BLM per-

mit application writing and inspection

and enforcement workshops in April and

September. The committee also continued

working with the Forest Service to pro-

vide third-party completion of National

Environmental Policy Act requirements

for activities on the Dakota Prairie

Grasslands.

On a state level, Kovacevich said the

regulatory committee continues to work

with the North Dakota Department of

Health on disposal of oilfield wastes,

including naturally occurring radioactive

material, proper waste transport, proper

use of pesticides and proper handling of

wastewater and saltwater.

He added that the committee is work-

ing with the U.S. Fish and Wildlife

Service, North Dakota state government

and the North Dakota agricultural com-

munity on fish and wildlife issues, and

recently began efforts to prevent the list-

ing of four North Dakota species as

endangered.

During the next few weeks, he said,

the committee will be working to provide

comments on the North Dakota Industrial

Commission’s 2014 administrative rule-

making process.

“The committee meets quarterly with

federal and state agencies to further

address these important issues,” he added.

North Dakota Oil Can!The Petroleum Council’s stakeholder

outreach program, “Oil Can!,” estab-

lished in 2008, had what Kovacevich

called “another very successful year” in

2013. “Oil Can! is an effort to educate

and inform the general public about our

industry and strive to continue to be bet-

ter neighbors and communicate with local

policy-makers, farmers and ranchers and

the public in and around areas with

increasing oil activity.”

The first Oil Can! fishing derby was

held this year with more than 150 partici-

pants raising $14,000 for conservation

projects. Another fishing derby is planned

for next year.

The Oil Can! program put on two

Bakken Rocks CookFests in 2013,

Kovacevich said, one in Powers Lake and

the other in Parshall, hosting more than

3,000 people at those two events. Next

year CookFests will be held in Kenmare

continued from page 1

YEAR IN REVIEW

see YEAR IN REVIEW page 10

� A S S O C I A T I O N & E V E N T S

Helms updates NDPC on oil productionND oil production could reach 1.6 million barrels per day; 20 years of ‘phase 3’ ahead; NDIC looking at rule changes

BY MIKE ELLERDPetroleum News Bakken

At the North Dakota Petroleum Council’s annual

meeting in Grand Forks on Sept. 17, Department of

Mineral Resources Director Lynn Helms gave an update

on oil production in the state and said department pro-

jections indicate that oil production in the state could

eventually reach just under 1.6 million barrels per day as

more and more acreage in the Bakken petroleum system

moves into full development stage.

Most of the Bakken petroleum system is now in the

full development stage with ongoing infill drilling,

according to Helms, which he identifies as “phase 3.” He

identifies “phase 1” as the exploration phase, and “phase

2” as “de-risking” of leases, e.g., holding leases by pro-

duction. Helms estimates phase 3 will continue for

another 20 years during which an estimated 40,000 to

45,000 additional wells will be drilled.

Helms said there are approximately 185 drill rigs

operating in the state. The rig count, he said, peaked at

218 in July 2012, but with new drilling technology, he

added, 185 rigs can put as many wells in the ground now

as 218 rigs did over a year ago.

According to Helms, those 185 drill rigs equate to

some 22,000 temporary drilling jobs with yet another

13,000 temporary jobs in building

infrastructure. In addition, he

said, the oil industry is creating

between 2,000 and 3,000 perma-

nent jobs in the state per year.

Other potential formationsIn addition to the Bakken and

Three Forks formations, Helms

said the Tyler formation in western and southwestern

North Dakota has production potential, with develop-

ment of the Tyler at the same stage that the Bakken and

Three Forks formations were in 2003 and 2004.

The Spearfish formation is also showing potential,

and he noted that Corinthian Exploration, a private

Canadian oil and gas company, is planning to drill

almost 400 wells into that formation in Bottineau County

over the next five years. There is less activity in the

Mission Canyon formation, mainly because of the high

sulfur content of the oil in that formation.

Softening light crude prices?On crude oil prices, Helms said predictions are

appearing that suggest light sweet crude oil prices could

soften in 2014 due to a shortage of refining capacity for

light crude oil. He said the Bakken and Eagle Ford plays

are pushing production of light, sweet crude so high that

currently there is only approximately 650,000 barrels per

day of light, sweet refining capacity, and that capacity,

Helms says, will be utilized very quickly.

“So there’s going to be, perhaps, some softness in

light, sweet crude next year that’s going to have to be

incorporated into budgets and thinking.”

ReclamationIn his address, Helms com-

mended the oil industry in North

Dakota on its reclamation efforts

in the state, and said industry

doesn’t brag enough about recla-

mation. “What people have failed

to grasp is how good you are at

making your footprint disap-

pear.”

Helms said there are more than 8,000 reclaimed well

sites across North Dakota, “and I would challenge you to

go find them,” adding that the oil industry is very good

at erasing its footprint. “I think you take your environ-

mental responsibility and your social responsibility very,

very seriously, and you are truly amazingly good at what

you do.”

FlaringThe North Dakota Industrial Commission is getting

more aggressive on natural gas flaring, and Helms said

the commission has identified three goals related to the

flaring issue: reducing flaring volume; reducing the

number of wells flared; and reducing the duration of flar-

ing from wells.

Helms said those goals are not going to be easy to

achieve, but added that the Industrial Commission “is

not interested in destroying the economics of the Bakken

and Three Forks play in pursuit of this.” He believes the

state can work with industry to develop a policy that will

move faster to achieve the three goals.

Rule changesThe Industrial Commission is also working on a num-

ber of rule changes, and Helms said the commission will

hold a hearing on those rule changes in Bismarck on Oct.

1. Of the 41 rule changes, 16 are due to statute revisions

that came out of the 2013 legislature. An additional 11

changes apply specifically to treating plants and the

remaining 13 are administrate or are industry requested

changes.

The Oct. 1 hearing will begin a 10-day public com-

ment period, and the commission will make final deci-

sions on the proposed rule changes during its Nov. 26

meeting. New rules go into effect on April 1, 2014.

Helms said all of the proposed rule changes are posted

on the department’s website.

North Dakota Geological SurveyIn closing, Helms talked about some work that the

North Dakota Geological Survey is doing, beginning

with a map that Steve Nordeng of the survey developed

that ranks areas of production in the northwest North

Dakota counties according to color and makes it easy to

see the areas of highest oil production.

Helms also discussed a thermal gradient study the

survey is conducting that will map geologic temperature

profiles. That study was funded in part by the legislature

but also in part by the Petroleum Council.

In that study, the Geological Survey acquires temper-

ature data from temporarily abandoned wells that are

coming up for mechanical integrity testing. Helms said

those data are critical for computer modeling and he

asked that operators allow the Geological Survey access

to selected wells from which the temperature data can be

acquired.

Finally, Helms said the department is revising its drill

cutting sampling requirements, and is looking for input

from industry on those revisions. Helms doesn’t believe

that all wells on a multi-well pad need to be sampled,

and the department is looking at changing sample inter-

val requirements on both vertical and horizontal sec-

tions. �

“I think you take your environmentalresponsibility and your social

responsibility very, very seriouslyand you are truly amazingly good at

what you do.” —Lynn Helms

ND

PC

Lynn Helms

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 9

10 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

Bob Mau is the 10th inductee. He was

recognized by past inductees for his more

than 35 years of service and his commit-

ment to promoting and developing North

Dakota’s oil and gas industry.

According to the Petroleum Council,

an inductee must have least 25 years of

oil and gas industry experience, the

majority of which must be in the

Williston Basin. Another requirement is

that an inductee has to have made signifi-

cant contributions to the functions and

activities of associations that represent

the industry in North Dakota and have

supported promotion and development of

the industry “through hard work on behalf

of the membership, commitment to well-

being of the industry, and participation in

association activities,” according to coun-

cil criteria.

Mau was raised on a farm near Mohall

in east-central Renville County. After

studying geology at Minot State, he began

his career in the oil and gas industry by

pumping wells and working on service

rigs, He continued his career reclaiming

well sites through most of the 1980s. He

later founded several businesses includ-

ing Eagle Operating Inc. in 1991,

Wolverine Drilling Co. in 1996 and Eagle

Well Service in the early 2000s. In 2005

he founded the drill rig manufacturing

company MW Industries in Kenmare in

northwest Ward County and serves as

president. Mau has served on the

Petroleum Council board of directors and

executive committee since 1999 and for

two of those years was board chairman.

In addition to contribution to the

Petroleum Council, Mau has also volun-

teered his time to numerous boards and

councils, including Kenmare’s first Fund-

It committee and the Economic

Development Board. Then North Dakota

Gov. and now U.S. Sen. John Hoeven

appointed Mau to serve on the Interstate

Oil and Gas Compact Commission as

well as the Oil and Gas Research Council.

Mau has also served on the North Dakota

Chamber of Commerce board of direc-

tors. In 2007, he was awarded the Energy

and Environmental Research Center’s

Pioneer Award.

“Bob is a tremendous asset to the

North Dakota Petroleum Council, and has

been a part of North Dakota’s oil past, as

well as its future,” said Perry Pearce,

Petroleum Council vice chairman.

“Through previous boom and bust cycles

to the current era of development that is

revolutionizing the industry, state and

nation, Bob has lent decades of insight

and experience to the Petroleum Council

and the oil and gas industry to help make

North Dakota the energy leader it is

today.”

Mau and his wife Kathy reside in

Kenmare. They have four children and

eight grandchildren.

Kenny Sample’s outstanding service Kenny Sample got his start in the oil

business as a driller in his native

Nebraska and as an employee with serv-

ice provider BJ Services, later BJ-Hughes

and now part of Baker Hughes. He left the

industry for a while when he and his

brother sold trucks and wholesale fuel

and also operated two truck stops. In

1980, Sample returned to the oil business

going back to work in Dickenson for BJ-

Hughes. He went to work for internation-

al oilfield service provider Weatherford in

2002, but then joined Wyoming Casing

Service where he has been for the last

nine years.

Petroleum Council board member Jim

Arthaud said Sample “has been a tremen-

dous advocate and mentor for many peo-

ple in the oil industry. He is also a

respected and trusted representative for

the industry in community outreach

efforts, such as the Petroleum Council’s

teacher tours and CookFests, as well as

through his volunteerism and involve-

ment in community organization and

events.”

“It is an honor to receive this award,”

Sample said. “I would have never thought

to see this kind of an oil boom in North

Dakota, but it has been exciting to be a

part of it and work alongside so many

other individuals who are equally deserv-

ing of this award for their service to our

industry and our communities.”

Not only has Sample been active in the

Petroleum Council, but also in the

Dickinson chapter of the American

Petroleum Institute. He was a long-time

volunteer fireman, past-president of the

Chappell Jaycees and a member of the

Dickinson Elks. Sample and his wife

Shirley live in Dickinson. They have

three sons.

Todd Porter’s outstanding serviceTodd Porter has served in the North

Dakota legislature since 1999 and chairs

the House Natural Resources Committee.

Porter has been instrumental in passing

key industry-related bills as well as in the

creation of the state’s Outdoor Heritage

Fund. In the last legislative session,

Porter actively promoted several key

industry bills, including House Bill 1134

which provided tax incentives for flaring

alternative technologies. That bill passed

the legislature and was signed into law by

Gov. Jack Dalrymple. Porter also promot-

ed legislation providing tax incentives for

environmental upgrades at refineries.

“Todd has been a leader promoting

responsible energy development and

improving and maintaining the North

Dakota business climate,” said Petroleum

Council board Chairman Terry

Kovacevich. “As a long-time legislator

and chairman of the House Natural

Resources Committee, he has been at the

forefront of virtually every piece of major

energy legislation over the past decade

and has led legislative efforts to encour-

age better communication among the

industry, landowners and mineral owners

to foster an understanding rather than leg-

islating burdensome and adverse regula-

tions.”

In receiving the award at the council’s

Grand Forks meeting, Porter said that he

knew nothing about the oil and gas indus-

try when he began his political career in

the North Dakota legislature. He said

when he was assigned to the House

Natural Resources Committee in his

freshman session, he thought he would be

dealing with hunting and fishing issues,

little realizing what that committee deals

with today. “I’ll tell you that you guys

have the world’s best group of govern-

ment relations people and industry lead-

ers that help teach us, the lay citizen leg-

islators that don’t know anything about

your business how it’s done — how to

make a business model that works inside

the State of North Dakota.”

Porter is a paramedic and co-owner of

Metro-Area Ambulance Service in

Mandan, where he has other business

ventures and is active in local organiza-

tions. Porter and his wife Shirley have

two sons.

The Petroleum Council’s Outstanding

Service Award is awarded each year to

one public servant and one industry rep-

resentative “who go above and beyond

their duties and obligations in their

respective roles.”

—MIKE ELLERD

Congratulations Bob Mau!

–From your friends at Empire Oil Companywww.empireoil.net

PHOT

O C

OU

RTES

Y N

DPC

continued from page 1

NDPC AWARDS

and Dunn Center in July.

Another campaign in the Oil Can! program is “Pick

Up The Patch” which was started in April 2012 to clean

up trash along highways. Thus far in 2013 more than

1,600 bags of trash have been picked up during numer-

ous cleanup events, and since the program began last

year, more than 3,800 bags of trash have been picked up.

In the past year the program also hosted an annual

three-day seminar to educate teachers about the oil and

gas industry with more than 50 teachers attending. That

seminar included an oilfield tour.

Other newsKovacevich said the council has been running out of

room in its Bismarck office and will be moving to the

Broadway Center just a few blocks away where it will

have expanded office space, workspace for guest mem-

bers, a larger conference room and better parking. The

new building also has a restaurant where the council can

hold larger meetings.

The Petroleum Council continued with its advertising

campaign, intended to reiterate the positive impacts that

the oil and gas industry has on North Dakota. Five new

television advertisements were developed, two of which

will air this year and the other three in the spring of 2014.

In late 2011, the Sakakawea Area Spill Response pro-

gram was formed to provide resources to assist in a

response to an open water incident in the Williston Basin

area, including Lake Sakakawea and its tributaries.

There are currently 10 companies that actively partici-

pate in the program, and Kovacevich encouraged other

companies to join the group.

Bismarck will host next year’s annual Williston Basin

Petroleum Conference, scheduled May 20-22 at

Bismarck’s Civic Center. The center is working to dou-

ble the exhibit space over what was available the last

time the conference was held in Bismarck in 2012.

Bismarck has added more than 1,000 new hotel rooms

since the 2012 conference. The Williston Basin

Petroleum Conference alternates between North Dakota

and Saskatchewan, and in May of this year it was held in

Regina.

Closing remarksIn closing, Kovacevich offered a few comments as the

Petroleum Council enters another year and the industry

continues to face challenges. “Oil country has seen enor-

mous growth the last few years, providing unprecedent-

ed economic benefit for our state, including billions in

economic impact and thousands of high-paying jobs,”

Kovacevich said. “As we know, this great success comes

with many challenges and impacts affecting all of us in

industry, the state, the counties and cities, and our local

citizens. I am proud of our members’ efforts in aggres-

sively addressing these issues. However, we must not be

complacent. I encourage each of you and your compa-

nies to continue your efforts as we go forward, and I am

confident we will once again achieve, and to continue to

achieve, great success.” �

continued from page 8

YEAR IN REVIEW

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 11

BAKKENStatsMontana well permits and completionsSeptember 13—19, 2013

COMPILED BY DARRYL L. FLOWERSFor Petroleum News Bakken

New locationsIn Roosevelt County’s East Tule field

Weil Oil LLC has been approved to drill

the Weil-Bridges 2 at SE NE 15-30N-48E

(1947 FNL/325 FEL). The well targets

the Nisku formation at a PD of 7,600 feet.

New locations — horizontal wellsIn Roosevelt County, Oasis Petroleum

North America LLC was approved to drill

the Faye Federal 2759 43-19H, with an

SHL at SW SE 19-27N-59E (510

FSL/1680 FEL) and a PBHL of 20,985

feet at SW SE 31-27N-59E (250

FSL/2100 FEL). The well targets the

Bakken formation.

Re-issued locationsIn Richland County, Continental

Resources Inc. was permitted for three

wells. The Custer 1-7H has an SHL at NE

NW 18-27N-54E (508 FNL/2125 FWL)

and a PBHL of 19,852 feet at NE NW 6-

27N-54E (200 FNL/1980 FWL). The

Washburn 1-18H has an SHL at NE NW

18-27N-54E (547 FNL/2096 FWL) and a

PBHL of 18,947 feet at SE SW 19-27N-

54E (200 FSL/1980 FWL). The Snow 1-

13H has an SHL at NW NE 13-23N-54E

(280 FNL/1980 FEL) and a PBHL of

19,864 feet at SW SE 24-23N-54E (200

FSL/1980 FEL).

The three wells

will target the

Bakken forma-

tion.

In Sheridan

County, a permit

was re-issued to

Sinclair Oil &

Gas Co. for the

Chisholm 1-

31TFH, a Three

Forks formation well with an SHL at NW

NW 3-32N-56E (250 FNL/1130 FWL)

and a PBHL of 19,982 feet at N2 NE 30-

33N-56E (200 FNL/1320 FEL).

CompletionsIn Fallon County’s Lookout Butte

Field, Denbury Onshore LLC filed a

completion report for the Unit 12-15 at

SW NW 15-6N-60E (1800 FNL/690

FWL). The well reported an IP of 44

BOPD and 384 BWPD. The well pro-

duces from the Red River formation.

In Richland County, Continental

Resources Inc. reported the completion of

four Bakken formation wells. The

Hitchcock 1-9H, with an SHL at NE NW

9-26N-53E (200 FNL/1672 FWL) and a

BHL at SE SW 16-26N-53E (231

FSL/1977 FWL) reported an IP of 340

BOPD, 242 MCFPD and 255 BWPD.

The Revere 1-31H has an SHL at SE SW

31-27N-53E (250 FSL/1980 FWL) and

two laterals with BHLs of 14,970 at NE

SW 30-27N-53E (1341 FSL/2022 FWL)

and 18,680 at NE NW 30-27N-53E (239

FNL/2026 FWL). The Revere reported an

IP of 613 BOPD, 610 MCFPD and 402

BWPD. The Tower 1-4H, with an SHL at

NE NW 9-26N-53E (200 FNL/1627

FWL) and two

laterals with

BHLs of 14,791

feet at SE SW 33-

27N-53E (565

FSL/2378 FWL)

and 19,277 feet at

NE NW 33-27N-

53E (236

FNL/2331 FWL)

reported an IP of

508 BOPD, 325

MCFPD and 277 BWPD. The Pine 12-1

1H, with an SHL at SE SE 12-24N-51E

(280 FSL/740 FEL) and two laterals with

BHLs of 10,244 feet at NE SE 12-24N-

51E (2057 FSL/763 FEL) and 14,744 feet

at SE SE 1-24N-51E (1267 FSL/813

FEL) turned in an IP of 158 BOPD, 430

MCFPD and 173 BWPD.

Also in Richland County, Oasis

Petroleum North America LLC reported

the completion of the Stilt Federal 2658

42-22H, with an SHL at SE SW 22-26N-

58E (200 FSL/1670 FWL) and a BHL of

20,730 feet at SW SW 34-26N-58E (357

FSL/1236 FWL). The Bakken formation

well turned in an IP of 970 BOPD, 846

MCFPD and 2,051 BWPD.

In Roosevelt County, Oasis Petroleum

North America LLC filed a completion

report for the Ma 2758 41-11B, a Bakken

formation well with an SHL at SW SW

11-27N-58E (390 FSL/600 FWL) and

two laterals with BHLs of 10,475 feet at

SW SW 11-27N-58E (351 FSL/602

FWL) and 20,475 feet at SW SW 23-

27N-58E (334 FSL/609 FWL). The

reported IP was 1,626 BOPD, 1,201

MCFPD and 8,470 BWPD.

In Sheridan County, Unit Petroleum

Co. reported the completion of the

Abenroth 1-2H. The Bakken formation

well has an SHL at NE NW 2-36N-54E

(300 FNL/1940 FWL) and a BHL of

11,959 feet at SE SW 2-36N-54E (665

FSL/1945 FWL). The IP was reported as

3 BOPD and 300 BWPD. �

Editor’s note: Darryl L. Flowers, acontributor to Petroleum News Bakken, isthe publisher of the Fairfield Sun Timesin Fairfield, Mont., www.fairfieldsun-times.com, and can be reached at pub-lisher@fairfieldsuntimes.com. The infor-mation is derived from the online recordsof the Montana Board of Oil & GasConservation Commission.

Abbreviations & parametersWith a few exceptions, the Montana weekly oil activity report includes horizontal well activity in

the Bakken petroleum system in the eastern/northeastern part of the state within the Williston Basin. It

also includes the Heath play and what is referred to as the South Alberta Bakken fairway in northwest-

ern/west-central Montana, which is at least 175 miles long (north-south) and 50 miles wide (east-west),

extending from southern Alberta, where the formation is generally referred to as the Exshaw, south-

wards through Montana’s Glacier, Toole, Pondera, Teton and Lewis & Clark counties. The Southern

Alberta Bakken, under evaluation by several oil companies, is not part of the Williston Basin.

Following are the abbreviations used in the report and what they mean.

BHL: bottomhole location | BOPD: barrels of oil per day | BWPD: barrels of water per day

IP: initial production | MCFPD: thousand cubic feet per day | PBHL: probable bottomhole location

PD: proposed depth | SHL: surface hole location | TD: total depth

And public land survey system abbreviations:

FNL = from north line | FEL = from east line | FSL = from south line | FWL = from west line

Looking for a rig report?

PHOTO COURTESY CONTINENTAL RESOURCES

North DakotaThe best list for North Dakota is updated daily by the North Dakota Oil and Gas Division at www.dmr.nd.gov/oilgas/riglist.asp

SaskatchewanWeekly drilling activity report from the government of Saskatchewan: www.economy.gov.sk.ca/Daily-Well-Bulletin-Weekly-Drilling-Reports

ManitobaWeekly drilling activity report from the government of Manitoba: www.manitoba.ca/iem/petroleum/wwar/index.html

Company Exchange Symbol Closing price Previous Wed.

Abraxas Petroleum Corp. NASDAQ AXAS $2.57 $2.60

American Eagle Energy Corp. AMZG OTC $2.31 $2.22

Arsenal Energy USA, Inc. TSE AEI $4.88 $4.76

Baytex Energy Corp. NYSE BTE $41.37 $41.04

Burlington Resources Co. (ConocoPhillips) NYSE COP $70.32 $70.56

Continental Resources, Inc. NYSE CLR $106.70 $106.26

Crescent Point Energy Corp. TSE CPG $38.73 $38.23

Enerplus Resources USA Corp. NYSE ERF $16.76 $17.54

EOG Resources, Inc. NYSE EOG $171.38 $171.79

Fidelity Exploration and Production (MDU) NYSE MDU $27.72 $27.89

GMX Resources, Inc. PINK GMXRQ $0.25 $0.30

Hess Corp. NYSE HES $78.72 $79.22

HRC Operating (Halcon Resources Corp.) NYSE HK $4.68 $4.77

Kodiak Oil and Gas (USA), Inc. NYSE KOG $11.50 $11.37

Legacy Reserves Operating LP NASDAQ LGCY $27.06 $26.88

Marathon Oil Co. NYSE MRO $35.46 $36.40

Newfield Production Co. NYSE NFX $28.02 $26.67

Oasis Petroleum, Inc. NYSE OAS $48.13 $44.75

Oxy USA (Occidental Petroleum Corp.) NYSE OXY $92.91 $92.31

QEP Energy Co. NYSE QEP $28.49 $29.02

Resolute (Resolute Energy Corp.) NYSE REN $8.65 $8.78

Samson Resources Co. (KKR & Co.) NYSE KKR $20.09 $20.49

SM Energy Co. NYSE SM $76.47 $76.55

Statoil Oil and Gas LP NYSE STO $22.67 $22.95

Sundance Energy, Inc. SEA ASX $1.07 $1.07

Triangle USA Petroleum Corp. NYSE TPLM $9.65 $9.51

Whiting Oil and Gas Corp. NYSE WLL $58.86 $55.84

WPX Energy, Inc. NYSE WPX $18.93 $19.69

XTO Energy, Inc. (ExxonMobil) NYSE XOM $87.14 $89.58

Bakken producers’ stock pricesClosing prices as of Sept 25, along with those from previous Wednesday

In Sheridan County, Unit PetroleumCo. reported the completion of the

Abenroth 1-2H. The Bakken formationwell has an SHL at NE NW 2-36N-54E

(300 FNL/1940 FWL) and a BHL of11,959 feet at SE SW 2-36N-54E (665FSL/1945 FWL). The IP was reported

as 3 BOPD and 300 BWPD.

12 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

North Dakota oil permit activitySeptember 17—23, 2013

Billings Co.Permits issuedSequel EnergySND 2-28R; NWSW 28-142N-100W; 1,623FSL and1,229’FWL; Tree Top; Madison; vertical; 2,718’ ground;23923; 33-007-01756; 9/19/2013

Bottineau Co.Permits issuedCorinthian ExplorationCorinthian Berg 16-32 1-H; SESE 32-164N-78W;330’FSL and 750’FWL; Northeast Landa; N/A**; onconfidential status; 1,523’ ground; 26492; 33-009-02341; 9/17/2013

Burke Co.Permits issuedCornerstone Natural ResourcesSwenson B-0904-6391; SESW 9-163N-91W; 240’FSLand 1,980’FWL; Wildcat; N/A; on confidential status;1,949’ ground; 26495; 33-013-01740; 9/17/2013

Divide Co.Permits issuedAmerican Eagle EnergyArnette State 14-36-164-101; SESW 36-164N-101W; 300’FSL and 1,500’FWL; Colgan; N/A*; on con-fidential status; 2,281’ ground; 26562; 33-023-01107;9/23/2013Dena State 14-36-164-101; SESW 36-164N-101W;300’FSL and 1,700’FWL; Colgan; N/A*; on confidentialstatus; 2,277’ ground; 26563; 33-023-01108;9/23/2013

Permits renewedSamson ResourcesBakke 3229-7TFH; LOT1 32-164N-99W; 230’FSL and1,248’FEL; Ambrose; N/A*; on confidential status;2,065’ ground; 23832; 33-023-00911; 9/20/2013Thomte 0508-7TFH; SESE 32-164N-99W; 230’FSL and1,273’FEL; Ambrose; N/A*; on confidential status;2,065’ ground; 23831; 33-023-00910; 9/20/2013

Dunn Co.Permits issuedOxy USA (Occidental Petroleum)Mildred Sadowsky 2-11-14H-142-97; NENW 11-142N-97W; N/A; 550’FNL and 2,167’FWL; Willmen;Bakken; horizontal; 2,522’ ground; 26538; 33-025-02300; 9/20/2013

WPX EnergyIndependence 2-35HD; NWNE 11-149N-93W;565’FNL and 1,699’FEL; Mandaree; N/A*; on confiden-tial status; 2,236’ ground; 26519; 33-025-02299;9/19/2013Independence 2-35HY; NWNE 11-149N-93W;568’FNL and 1,799’FEL; Mandaree; N/A*; on confiden-tial status; 2,237’ ground; 26517; 33-025-02297;9/19/2013Independence 2-35HZ; NWNE 11-149N-93W;566’FNL and 1,749’FEL; Mandaree; N/A*; on confiden-tial status; 2,236’ ground; 26518; 33-025-02298;9/19/2013Mabel Levings 14-23HA; SWSW 11-149N-93W; -485’FNL and 743’FWL: Mandaree; N/A*; on confiden-tial status; 2,183’ ground; 26513; 33-025-02296;9/19/2013Mabel Levings 14-23HB; SWSW 11-149N-93W;465’FNL and 843’FWL: Mandaree; N/A*; on confiden-tial status; 2,181’ ground; 26511; 33-025-02294;9/19/2013Mabel Levings 14-23HW; SWSW 11-149N-93W;461’FSL and 793’FWL: Mandaree; N/A*; on confiden-tial status; 2,183’ ground; 26512; 33-025-02295;9/19/2013Mabel Levings 14-23HX; SWSW 11-149N-93W; -485’FSL and 893’FWL: Mandaree; N/A*; on confiden-tial status; 2,179’ ground; 26510; 33-025-02293;9/19/2013

Permits renewedKodiak Oil and GasSkunk Creek 4-8-17-14H; NWNW 8-148N-93W;

300’FNL and 1,090’FWL; South Fork; N/A*; on confi-dential status; 2,054’ ground; 19818; 33-025-01201;9/23/2013Skunk Creek 4-10-11-8H; NWNW 8-148N-93W;1,270’FNL and 220’FWL; South Fork; N/A*; on confi-dential status; 2,041’ ground; 19780; 33-025-01192;9/23/2013Skunk Creek 13-18-17-16H; SWSW 8-148N-92W;600’FSL and 400’FWL; Heart Butte; N/A*; on confiden-tial status; 2,013’ ground; 21699; 33-025-01499;9/23/2013

Newfield ProductionJorgenson Federal 2-10H; SWSE 10-148N-96W;784’FSL and 2,161’FEL; Lost Bridge; N/A*; on confi-dential status; 2,377’ ground; 19912; 33-025-01215;9/23/2013Jorgenson Federal 2-15H; SWSE 10-148N-96W;780’FSL and 2,236’FEL; Lost Bridge; N/A*; on confi-dential status; 2,378’ ground; 19911; 33-025-01214;9/23/2013

Oxy USA (Occidental Petroleum)Federal Otto Boehler 1-3-10H-142-94; LOT3 3-142N-94W; 440’FNL and 1,980’FWL; Murphy Creek;Bakken; horizontal; 2,187’ ground; 23819; 33-025-01868; 9/19/2013Nels Wold 1-36-25H-141-97; SWSW 36-141N-97W;839’FSL and 924’FWL; St. Anthony; Bakken; horizontal;2,611’ ground; 23844; 33-025-01870; 9/19/2013

McKenzie Co.Permits issuedContinental ResourcesJerry 2-8H; SWSW 8-151N-100W; 200’FSL and1,242’FWL; Poe; N/A*; on confidential status; 2,151’ground; 26525; 33-053-05294; 9/20/2013Jerry 3-8H; SWSW 8-151N-100W; 200’FSL and1,287’FWL; Poe; N/A*; on confidential status; 2,147’ground; 26526; 33-053-05295; 9/20/2013Jerry 4-8H; SWSW 8-151N-100W; 361’FSL and2,144’FWL; Poe; N/A*; on confidential status; 2,136’ground; 26531; 33-053-05300; 9/20/2013Jerry 5-8H; SWSW 8-151N-100W; 385’FSL and2,107’FWL; Poe; N/A*; on confidential status; 2,136’ground; 26530; 33-053-05299; 9/20/2013Jerry 6-8H; SWSW 8-151N-100W; 290’FSL and987’FEL; Poe; N/A*; on confidential status; 2,182’ground; 26536; 33-053-05305; 9/20/2013Jerry 7-8H; SWSW 8-151N-100W; 290’FSL and1,032’FEL; Poe; N/A*; on confidential status; 2,176’ground; 26535; 33-053-05304; 9/20/2013

Hunt OilAntelope 1-31-30H; LOT2 3-148N-102W; 530’FNLand 1,570’FEL; Sather Lake; N/A*; on confidential sta-tus; 2,340’ ground; 26527; 33-053-05296; 9/20/2013Bear Butte 1-12-1H; SWSW 12-148N-101W; 350’FSLand 1,066’FWL; Bear Butte; N/A*; on confidential sta-tus; 2,171’ ground; 26493; 33-053-05289; 9/17/2013

Kodiak Oil and GasSmokey 146-99-2-3-10-15H; LOT2 3-146N-99W;345’FNL and 1,640’FEL; Ranch Creek; Bakken; horizon-tal; 2,554’ ground; 26542; 33-053-05309; 9/23/2013Smokey 146-99-2-3-10-15H3; LOT2 3-146N-99W;345’FNL and 1,670’FEL; Ranch Creek; Bakken; horizon-tal; 2,555’ ground; 26541; 33-053-05308; 9/23/2013Smokey 146-99-2-3-10-16H; LOT2 3-146N-99W;345’FNL and 1,580’FEL; Ranch Creek; Bakken; horizon-tal; 2,554’ ground; 26544; 33-053-05311; 9/23/2013Smokey 146-99-2-3-10-16H3; LOT2 3-146N-99W;345’FNL and 1,610’FEL; Ranch Creek; Bakken; horizon-tal; 2,554’ ground; 26543; 33-053-05310; 9/23/2013

Newfield ProductionRolfsrud State 152-96-29-32-1H; SESE 20-152N-96W; 370’FSL and 738’FEL; Westberg; N/A*; on confi-dential status; 2,361’ ground; 26532; 33-053-05301;9/20/213Rolfsrud State 152-96-29-32-2HZ; SESE 20-152N-96W; 370’FSL and 828’FEL; Westberg; N/A*; on confi-dential status; 2,354’ ground; 26534; 33-053-05303;9/20/213Rolfsrud State 152-96-29-32-10H; SESE 20-152N-96W; 370’FSL and 783’FEL; Westberg; N/A*; on confi-dential status; 2,358’ ground; 26533; 33-053-05302;9/20/213Skaar 150-99-15-22-2H; NWNW 15-150N-99W;250’FNL and 800’FWL; South Tobacco Garden; N/A*;on confidential status; 2,165’ ground; 26545; 33-053-05312; 9/23/2013Skaar 150-99-15-22-10H; NWNW 15-150N-99W;250’FNL and 860’FWL; South Tobacco Garden; N/A*;on confidential status; 2,167’ ground; 26547; 33-053-05314; 9/23/2013Skaar 150-99-15-22-30H; NWNW 15-150N-99W;250’FNL and 830’FWL; South Tobacco Garden; N/A*;on confidential status; 2,166’ ground; 26546; 33-053-05313; 9/23/2013Wahus State 152-97-12-1-3H; SESE 12-152N-97W;315’FSL and 545’FEL; Westberg; N/A*; on confidential

status; 2,370’ ground; 26491; 33-053-05288;9/17/2013Wahus State 152-97-12-1-4H; SESE 12-152N-97W;315’FSL and 635’FEL; Westberg; N/A*; on confidentialstatus; 2,370’ ground; 26489; 33-053-05286;9/17/2013Wahus State 152-97-12-1-11H; SESE 12-152N-97W;315’FSL and 590’FEL; Westberg; N/A*; on confidentialstatus; 2,370’ ground; 26490; 33-053-05287;9/17/2013

QEP EnergyTat 2-33-28TH; SESW 33-149N-95W; 280’FSL and1,906’FWL; Grail; Bakken; horizontal; 2,477’ ground;26524; 33-053-05293; 9/20/2013Tat 3-33-28BH; SESW 33-149N-95W; 280’FSL and1,878’FWL; Grail; Bakken; horizontal; 2,479’ ground;26523; 33-053-05292; 9/20/2013Tat 3-33-28TH; SESW 33-149N-95W; 280’FSL and1,850’FWL; Grail; Bakken; horizontal; 2,479’ ground;26522; 33-053-05291; 9/20/2013Tat 4-33-28BH; SESW 33-149N-95W; 280’FSL and1,822’FWL; Grail; Bakken; horizontal; 2,479’ ground;26521; 33-053-05290; 9/20/2013

Whiting Oil and GasBratcher 14-36H; SWSW 36-149N-100W; 300’FSLand 460’FWL; Ellsworth; Bakken; horizontal; 2,213’ground; 26540; 33-053-05307; 9/20/2013Bratcher 14-36-2H; SWSW 36-149N-100W; 300’FSLand 520’FWL; Ellsworth; Bakken; horizontal; 2,213’ground; 26539; 33-053-05306; 9/20/2013Cherry State 21-16-2H; NENW 16-149N-99W;325’FNL and 1,590’FWL; Pleasant Hill; Bakken; hori-zontal; 2,119’ ground; 26568; 33-053-05315;9/23/2013Wisness 14-34H; SWSW 34-149N-99W; 560’FSL and330’FWL; Juniper; Bakken; horizontal; 2,305’ ground;26529; 33-053-05298; 9/20/2013Wisness 14-34-2H; SWSW 34-149N-99W; 560’FSLand 390’FWL; Juniper; Bakken; horizontal; 2,308’ground; 26528; 33-053-05297; 9/20/2013

Permits renewedEnerplus ResourcesBeaver Creek 149-94-31D-30H TF; SWSE 31-149N-94W; 441’FSL and 2,190’FEL; Eagle Nest; N/A*; onconfidential status; 2,483’ ground; 24111; 33-053-04490; 9/20/2013Brugh Bear 2-11H; SWSE 31-149N-94W; 441’FSL and2,140’FEL; Eagle Nest; N/A*; on confidential status;2,481’ ground; 24112; 33-053-04491; 9/20/2013Zion 148-95-02N-11H; SWSE 31-149N-94W; 441’FSLand 2,090’FEL; Eagle Nest; N/A*; on confidential sta-tus; 2,480’ ground; 24113; 33-053-04492; 9/20/2013

Statoil Oil and GasRaymond 17-20 2TFH; NENE 17-151N-101W;432’FNL and 887’FEL; Ragged Butte; N/A*; on confi-dential status; 2,033’ ground; 24142; 33-053-04502;9/23/2013

Permits cancelledZenergyGrasslands USA 21-16H; LOT2 21-150N-103W;375’FSL and 1,654’FEL; Foreman Butte; N/A*; on confi-dential status; 2,349’ ground; 24240; 33-053-04532;9/19/2013McKenzie Ranger 22-15H; LOT3 22-150N-103W;388’FSL and 1,921’FWL; Foreman Butte; N/A*; on con-fidential status; 2,305’ ground; 24214; 33-053-04525;9/19/2013USA FS 26-35H; LOT3 22-150N-103W; 234’FSL and1,923’FWL; Foreman Butte; N/A*; on confidential sta-tus; 2,165’ ground; 24301; 33-053-04559; 9/19/2013

Location resurveyedStatoil Oil and GasHovde 33-4 #3H; NWNW 33-151N-100W; 230’FNLand 705’FWL; Sandrocks; N/A*; on confidential status;2,248’ ground; 23862; 33-053-04417; 9/23/2013

Mountrail Co.Permits issuedContinental ResourcesLinbeck 1-6H; SENE 6-153N-93W; 1,609’FNL and855’FEL; Alkali Creek; N/A*; on confidential status;2,011’ ground; 26548; 33-061-02731; 9/23/2013Linbeck 2-6H1; SENE 6-153N-93W; 1,647’FNL and831’FEL; Alkali Creek; N/A*; on confidential status;2,013’ ground; 26549; 33-061-02733; 9/23/2013Linbeck 3-6H; SENE 6-153N-93W; 1,685’FNL and808’FEL; Alkali Creek; N/A*; on confidential status;2,015’ ground; 26550; 33-061-02733; 9/23/2013Linbeck 4-6H1; SENE 6-153N-93W; 1,723’FNL and784’FEL; Alkali Creek; N/A*; on confidential status;2,016’ ground; 26551; 33-061-02734; 9/23/2013Linbeck 5-6H; SENE 6-153N-93W; 1,705’FNL and669’FEL; Alkali Creek; N/A*; on confidential status;2,023’ ground; 26552; 33-061-02735; 9/23/2013Linbeck 6-6H1; SENE 6-153N-93W; 1,748’FNL and645’FEL; Alkali Creek; N/A*; on confidential status;

2,023’ ground; 26553; 33-061-02736; 9/23/2013Linbeck 7-6H; SENE 6-153N-93W; 1,781’FNL and622’FEL; Alkali Creek; N/A*; on confidential status;2,023’ ground; 26554; 33-061-02737; 9/23/2013Linbeck 8-6H1; SENE 6-153N-93W; 1,819’FNL and598’FEL; Alkali Creek; N/A*; on confidential status;2,026’ ground; 26555; 33-061-02738; 9/23/2013Linbeck 9-6H; SENE 6-153N-93W; 1,858’FNL and575’FEL; Alkali Creek; N/A*; on confidential status;2,028’ ground; 26556; 33-061-02739; 9/23/2013Linbeck 10-6H1; SENE 6-153N-93W; 2,100’FNL and801’FEL; Alkali Creek; N/A*; on confidential status;2,027’ ground; 26557; 33-061-02740; 9/23/2013Linbeck 14-6H1; SENE 6-153N-93W; 1,979’FNL and602’FEL; Alkali Creek; N/A*; on confidential status;2,028’ ground; 26561; 33-061-02744; 9/23/2013Linbeck Federal 11-6H; SENE 6-153N-93W;2,106’FNL and 756’FEL; Alkali Creek; N/A*; on confi-dential status; 2,027’ ground; 26558; 33-061-02741;9/23/2013Linbeck Federal 12-6H1; SENE 6-153N-93W;2,112’FNL and 712’FEL; Alkali Creek; N/A*; on confi-dential status; 2,028’ ground; 26559; 33-061-02742;9/23/2013Linbeck Federal 13-6H; SENE 6-153N-93W;1,973’FNL and 647’FEL; Alkali Creek; N/A*; on confi-dential status; 2,024’ ground; 26560; 33-061-02743;9/23/2013Vachal 6-27H; NENE 27-154N-94W; 380’FNL and617’FEL; Alkali Creek; N/A*; on confidential status;2,054’ ground; 26500; 33-061-02723; 9/18/2013Vachal 7-27H1; NENE 27-154N-94W; 380’FNL and572’FEL; Alkali Creek; N/A*; on confidential status;2,055’ ground; 26501; 33-061-02724; 9/18/2013

EOG ResourcesAustin 40-3204H; NENW 32-154N-90W; 450’FNL and2,000’FWL; Parshall; Bakken; horizontal; 2,255’ground; 26516; 33-061-02729; 9/19/2013Austin 41-3204H; NENW 32-154N-90W; 450’FNL and2,100’FWL; Parshall; Bakken; horizontal; 2,254’ground; 26514; 33-061-02727; 9/19/2013Austin 134-3204H; NENW 32-154N-90W; 450’FNLand 2,050’FWL; Parshall; Bakken; horizontal; 2,255’ground; 26515; 33-061-02728; 9/19/2013

Oasis PetroleumDawson 5494 11-1 2T2; LOT4 1-154N-94W; 280’FNLand 1,280’FWL; Alkali Creek; Bakken; horizontal;2,271’ ground; 26506; 33-061-02725; 9/18/2013Dawson 5494 12-1 3T3; LOT3 1-154N-94W; 280’FNLand 1,330’FWL; Alkali Creek; Bakken; horizontal;2,277’ ground; 26507; 33-061-02726; 9/18/2013

Sinclair OilMartens 5-5XH; LOT2 5-154N-92W; 229’FNL and1,661’FEL; Sanish; N/A*; on confidential status; 2,344’ground; 26537; 33-061-02730; 9/20/2013

Permits renewedWPX EnergyArikara 15-22HB; NENW 15-150N-93W; 450’FNL and2,603’FWL; Reunion Bay; N/A*; on confidential status;2,179’ ground; 23964; 33-061-02283; 9/23/2013Arikara 15-22HD; NENW 15-150N-93W; 152’FNL and2,630’FWL; Reunion Bay; N/A*; on confidential status;2,181’ ground; 23967; 33-061-02286; 9/23/2013Arikara 15-22HW; NENW 15-150N-93W; 401’FNLand 2,608’FWL; Reunion Bay; N/A*; on confidentialstatus; 2,180’ ground; 23965; 33-061-02284;9/23/2013Arikara 15-22HX; NENW 15-150N-93W; 500’FNL and2,599’FWL; Reunion Bay; N/A*; on confidential status;2,178’ ground; 23963; 33-061-02282; 9/23/2013Arikara 15-22HY; NENW 15-150N-93W; 201’FNL and2,626’FWL; Reunion Bay; N/A*; on confidential status;2,180’ ground; 23966; 33-061-02285; 9/23/2013

Location resurveyedOasis PetroleumFreya 5892 44-34T; SESE 34-158N-92W; 950’FSL and300’FEL; Cottonwood; Bakken; horizontal; 2,440’ground; 26186; 33-061-02665; 9/23/2013

Statoil Oil and GasCvancara 20-17 #5H; SWSW 20-155N-92W; 238’FSLand 1,005’FWL; Alger; N/A*; on confidential status;2,370’ ground; 26344; 33-061-02688; 9/17/2013Cvancara 20-17 #6TFH; SWSW 20-155N-92W;238’FSL and 1,035’FWL; Alger; N/A*; on confidentialstatus; 2,370’ ground; 26345; 33-061-02689;9/17/2013Cvancara 20-17 #7H; SWSW 20-155N-92W; 238’FSLand 1,065’FWL; Alger; N/A*; on confidential status;2,370’ ground; 26346; 33-061-02690; 9/17/2013

Renville Co.Permits issuedFram OperatingPeterson #1; SWSW 29-160N-86W; 660’FSL and

LEGENDThe county name is on the upper line, thetype of permit issued is on the second line,and company names are next, followed byindividual wells with data in this order: wellname; location; footages; field; geologicaltarget; well bore type; elevation; NDIC filenumber; API number; date permit shows onNDIC website.

AbbreviationsFollowing are the abbreviations used in thereport and what they mean:FNL = From North Line | FEL = From East LineFSL = From South Line | FWL = From West Line

see ND PERMIT page 13

IPs for completed North Dakota wells

Continental Resources23077; Oscar 2-24H; Stoneview; NWNW 24-161N-95W; 4SEC; Divide;Bakken; horizontal; 18,684; 8/30/2013; 455 bbl23078; Oscar 3-24H; Stoneview; NWNW 24-161N-95W; 4SEC; Divide;Bakken; horizontal; 18,954; 8/28/2013; 259 bbl23663; Zimmerman 2-13H; Stoneview; NWNW 24-161N-95W; 4SEC;Divide; Bakken; horizontal; 19,162; 8/28/2013; 207 bbl

HRC Operating (Halcon Resources)22383; Fort Berthold 147-94-1B-12-3H; McGregory Buttes; NWNW 1-147N-94W; 2SEC; Dunn; Bakken; horizontal; 20,453; 5/21/2013; 2,710 bbl

Hunt Oil24585; Bear Butte 1-6-7H; Little Tank; NWNE 6-148N-101W; 2SEC;McKenzie; Bakken; horizontal; 20,601; 9/9/2013; 318 bbl

Kodiak Oil and Gas23668; Koala 8-5-6-4H3; Poe; SENE 5-151N-99W; 2SEC; McKenzie;Bakken; horizontal; 20,930; 9/19/2013; 2,432 bbl23669; Koala 8-5-6-5H; Poe; SENE 5-151N-99W; 2SEC; McKenzie; Bakken;horizontal; 20,489; 8/17/2013; 2,660 bbl23670; Koala 8-5-6-5H3; Poe; SENE 5-151N-99W; 2SEC; McKenzie;Bakken; horizontal; 20,440; 8/15/2013; 1,043 bbl

Oasis Petroleum 24645; Pingora 5200 41-20B; Camp; SWSW 20-152N-100W; 2SEC;McKenzie; Bakken; horizontal; 20,509; 8/12/2013; 3,107 bbl

Statoil Oil and Gas23991; Johnston 7-6 2TFH; Banks; SESE 7-152N-98W; 2SEC; McKenzie;Bakken; horizontal; 21,953; 8/19/2013; 4,071 bbl23630; Reiten 23-14 2H; Painted Woods; NWNE 26-154N-103W; 2SEC;Williams; Bakken; horizontal; 21,105; 8/21/213; 1,975 bbl

Whiting Oil and Gas25386; Liebl 31-13H; Alger; NWNE 13-155N-93W; SEC; Mountrail;Bakken; horizontal; 15,135; 8/11/2013; 1,142 bbl

IPs for ND wells released from confidential status

Baytex Energy24216; Leo 5-8-161-97H 1XH; Frazier; SESW 32-162N-97W; 2SEC; Divide;Bakken; horizontal; 18,948; 5/21/2013; 224 bbl23602; Pulvermacher 34-27-162-99H 1NC; Ambrose; SESW 34-162N-99W;2SEC; Divide; Bakken; horizontal; 18,467; 5/6/2013; 284 bbl

Burlington Resources Oil and Gas (ConocoPhillips) 24259; Glacier 14-9MBH; Clear Creek; SESW 9-151N-96W; N/A;McKenzie; Bakken; horizontal; N/A; N/A; N/A24260; Glacier 24-9TFH; Clear Creek; SESW 9-151N-96W; N/A; McKenzie;Bakken; horizontal; N/A; N/A; N/A

Continental Resources24966; Tangsrud 10-1H2; Hayland; LOT2 1-160N-96W; N/A; Divide;Bakken; horizontal; N/A; N/A; N/A24928; Tangsrud 11-1H1; Hayland; LOT2 1-160N-96W; N/A; Divide;Bakken; horizontal; N/A; N/A; N/A24929; Tangsrud 12-1H3; Hayland; LOT2 1-160N-96W; N/A; Divide;Bakken; horizontal; N/A; N/A; N/A

24809; Wahpeton 9-16H; Banks; NWNE 16-152N-99W; N/A; McKenzie;Bakken; horizontal; N/A; N/A; N /A24808; Wahpeton 10-16H2; Banks; NWNE 16-152N-99W; N/A; McKenzie;Bakken; horizontal; N/A; N/A; N /A

EOG Resources20329; West Clark 4-2425H; Clarks Creek; SWNE 24-151N-95W; ICO;McKenzie; Bakken; horizontal; 19,594; 5/9/2013; 1,203 bbl

Fidelity Exploration and Production (MDU)24074; Enander 41-32H-29; Stanley; NENE 32-155N-91W; 2SEC;Mountrail; Bakken; horizontal; 15,875; 3/29/2013; 285 bbl24030; Larry 41-7H; Heart River; NENE 7-139N-97W; SEC; Stark; Bakken;horizontal; 14,695; 3/31/2013; 654 bbl

Hess24870; EN-Fretheim A 155-93-3334H-7; Robinson Lake; SESE 32-155N-93W; N/A; Mountrail Bakken; Mountrail; N/A; N/A: N/A24869; EN-Fretheim A 155-93-3334H-8; Robinson Lake; NESE 32-155N-93W; N/A; Mountrail Bakken; Mountrail; N/A; N/A: N/A24783; LK-Bice-147-97-1 1201H-4; Big Gulch; SWSE 12-147N-97W; N/A;Dunn; Bakken; horizontal; N/A; N/A; N/A25095; LK-Bice 147-97-1201H-5; Big Gulch; SWSE 12-147N-97W; N/A;Dunn; Bakken; horizontal; N/A; N/A; N/A

Kodiak Oil and Gas24786; Smokey 13-7-19-14H; Pembroke; LOT4 7-149N-98W; N/A;McKenzie; Bakken; horizontal; N/A; N/A; N/A24787; Smokey 13-7-19-14H3M; Pembroke; LOT4 7-149N-98W; N/A;McKenzie; Bakken; horizontal; N/A; N/A; N/A

Liberty Resources24303; Anderson 152-103-21-16-1H; Glass Bluff; SWSE 21-152N-103W;2SEC; McKenzie; Bakken; horizontal; 20,098; 4/8/2013; 554 bbl

Marathon Oil24973; Brigner 24-24H; Bailey; NENW 25-145N-94W; 2SEC; Dunn;Bakken; horizontal; 20,990; 7/25/2013; 2,437 bbl25113; Glenn Scott 24-31H; Murphy Creek; SESW 31-144N-95W; 2SEC;Dunn; Bakken; horizontal; 20,779; 7/16/2013; 1,592 bbl

Newfield Production24996; Lawlar 150-98-18-19-2H; Siverston; SESW 7-150N-98W; 2SEC;McKenzie; Bakken; horizontal; 22,013; 7/10/2013; 1,541 bbl24998; Lawlar 150-98-18-19-3H; Siverston; SESW 7-150N-98W; 2SEC;McKenzie; Bakken; horizontal; 21,578; 7/9/2013; 1,565 bbl

North Plains Energy24137; Sorenson 160-100-27-34-4A-1H; Smokey Butte; NWNW 27-160N-100W; 2SEC; Divide; Bakken; horizontal; 18,912; 5/4/2013; 266 bbl

Oasis Petroleum (Oasis)24022; Autumn Wind State 5601 14-16B; Tyrone; NENE 16-156N-101W;2SEC; Williams; Bakken; horizontal; 20,200; 3/13/2013; 1,549 bbl23702; Taylor N 5200 14-29B; Camp; NENE 29-152N-100W; 2SEC;McKenzie; Bakken; horizontal; 20,690; 4/2/2013; 3,072 bbl

QEP Energy23097; MHA 2-06-31H-150-92; Heart Butte; SWSE 6-149N-92W; N/A;Dunn; Bakken; horizontal; N/A; N/A; N/A23093; MHA 3-06-31H-150-92; Heart Butte; SWSE 6-149N-92W; N/A;Dunn; Bakken; horizontal; N/A; N/A; N/A

Statoil Oil and Gas24633; Blanche 27-22 #2TFH; Painted Woods; NENE 34-154N-102W; N/A;Williams; Bakken; horizontal; N/A; N/A; N/A24634; Blanche 27-22 #7H; Painted Woods; NENE 34-154N-102W; N/A;Williams; Bakken; horizontal; N/A; N/A; N/A

Triangle USA Petroleum23464; Dwyer 149-101-2-11-1H; Antelope Creek; LOT2 2-149N-101W;2SEC; McKenzie; Bakken; horizontal; 20,498; 5/19/2013; 428 bbl

WPX Energy23312; Good Bird 36-25HB; Moccasin Creek; SWSE 36-148N-93W; 2SEC;Dunn; Bakken; horizontal; 20,664; 6/9/2013; 690 bbl

XTO Energy (ExxonMobil)24038; FBIR Darcie 34X-14D; Heart Butte; SWSE 14-148N-92W; 2SEC;Dunn; Bakken; horizontal; 20,077; 6/20/2013; 1,620 bbl24943; Sax 41X-26D; Siverston; NENE 26-151N-98W; 2SEC; McKenzie;Bakken; horizontal; 20,683; 8/4/2013; 1,780 bbl

—Compiled by Ashley Lindly

This chart contains initial production rates, or IPs, for active wells that were filed as completed with the state of North Dakota from Sept. 17 to Sept. 23,2013 in the Bakken petroleum system, which includes formations such as the Bakken and Three Forks. The completed wells that did not have an avail-able IP rate (N/A) likely haven’t been tested or were awarded confidential (tight-hole) status by the North Dakota Industrial Commission’s Department ofMinerals. This chart also contains a section with active wells that were released from confidential status during the same period, Sept. 17 to Sept. 23.Again, some IP rates were not available (N/A). The information was assembled by Petroleum News Bakken from NDIC daily activity reports and othersources. The name of the well operator is as it appears in state records, with the loss of an occasional Inc., LLC or Corporation because of space limita-tions. Some of the companies, or their Bakken petroleum system assets, have been acquired by others. In some of those cases, the current owner’s nameis in parenthesis behind the owner of record, such as ExxonMobil in parenthesis behind XTO Energy. If the chart is missing current owners’ names, pleasecontact Ashley Lindly at alindly@petroleumnewsbakken.com.

LEGENDThe well operator’s name is on the upper line, followed by individual wells withdata in this order: NDIC file number; well name; field; location; spacing; county;geologic target; wellbore type; total depth; IP test date; IP oil flow rate. (IPstands for initial production; in this chart it’s the first 24 hours of oil production.)

IPs for ND Bakken wells September 17—23, 2013

Top 10 Bakken wells by IP rate

Oasis Petroleum 24645; Pingora 5200 41-20B; Camp; McKenzie; 3,107 bbl23702; Taylor N 5200 14-29B; Camp; McKenzie; 3,072 bbl

HRC Operating (Halcon Resources)22383; Fort Berthold 147-94-1B-12-3H; McGregory Buttes; Dunn;2,710 bbl

Kodiak Oil and Gas23669; Koala 8-5-6-5H; Poe; McKenzie; 2,660 bbl

Marathon Oil24973; Brigner 24-24H; Bailey; Dunn; 2,437 bbl

Kodiak Oil and Gas23668; Koala 8-5-6-4H3; Poe; McKenzie; 2,432 bbl

Newfield Production24996; Lawlar 150-98-18-19-2H; Siverston; McKenzie; 1,541 bbl

Statoil Oil and Gas23630; Reiten 23-14 2H; Painted Woods; Williams; 1,975 bbl

XTO Energy (ExxonMobil)24943; Sax 41X-26D; Siverston; McKenzie; 1,780 bbl24038; FBIR Darcie 34X-14D; Heart Butte; Dunn; 1,620 bbl

Note: This chart contains initial production rates, or IPs, from the adjacent IP chartfor active wells that were filed as completed with the state of North Dakota fromSept. 17 to Sept. 23, 2013 in the Bakken petroleum system, as well as active wellsthat were released from tight-hole (confidential) status during the same period. Thewell operator’s name is on the upper line, followed by individual wells; the NDIC filenumber; well name; field; county; IP oil flow rate in barrels of oil.

660’FWL; Norma; N/A**; on confidential status; 1,845’ ground; 26508;33-075-01447; 9/19/2013

Stark Co.Permits cancelledHessRC-Lonna-140-95- 2932H-1; NENW 29-140N-95W; 325’FNL and2,320’FWL; Davis Buttes; N/A*; on confidential status; 2,494’ ground;24025; 33-089-00748; 9/19/2013

Williams Co.Permits issuedHessGN-Avinder- 158-98-1423H-1; SESE 10-158N-98W; 364’FSL and294’FEL; Rainbow; N/A*; on confidential status; 2,207’ ground; 26499; 33-105-03223; 9/17/2013GN-Ringabeu- 158-98-1102H-1; SESE 10-158N-98W; 364’FSL and327’FEL; Rainbow; N/A*; on confidential status; 2,207’ ground; 26498; 33-105-03222; 9/17/2013GN-PNR- 158-98-1003H-1; SESE 10-158N-98W; 364’FSL and 393’FEL;Rainbow; N/A*; on confidential status; 2,207’ ground; 26496; 33-105-03220; 9/17/2013GN-Ring- 158-98-1522H-1; SESE 10-158N-98W; 364’FSL and 360’FEL;Rainbow; N/A*; on confidential status; 2,207’ ground; 26497; 33-105-03221; 9/17/2013TI-Blikre- 158-95-1324H-2; NENW 13-158N-95W; 257’FNL and

1,341’FWL; Tioga’ N/A*; on confidential status; 2,350’ ground; 26509; 33-105-03228; 9/19/2013

Kodiak Oil and GasP Peterson 155-99-3-15-22-13H3; NENW 15-155N-99W; 320’FNL and1,955’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26564; 33-105-03229; 9/23/2013P Peterson 155-99-3-15-22-14H; NENW 15-155N-99W; 320’FNL and1,985’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26565; 33-105-03230; 9/23/2013P Peterson 155-99-3-15-22-14H3; NENW 15-155N-99W; 320’FNL and2,015’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26566; 33-105-03231; 9/23/2013P Peterson 155-99-3-15-22-15H; NENW 15-155N-99W; 320’FNL and2,045’FWL; Epping; Bakken; horizontal; 2,219’ ground; 26567; 33-105-03232; 9/23/2013

Oasis PetroleumHendricks 5602 43-36 #2T; SWSE 36-156N-102W; 220’FSL and1,680’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26502; 33-105-03224; 9/18/2013Hendricks 5602 43-36 #3B; SWSE 36-156N-102W; 220’FSL and1,630’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26503; 33-105-03225; 9/18/2013Hendricks 5602 43-36 #4T; SWSE 36-156N-102W; 220’FSL and1,580’FEL; Tyrone; Bakken; horizontal; 2,270’ ground; 26504; 33-105-03226; 9/18/2013Hendricks 5602 43-36 #5B; SWSE 36-156N-102W; 220’FSL and1,530’FEL; Tyrone; Bakken; horizontal; 2,271’ ground; 26505; 33-105-03227; 9/18/2013

Triangle USA PetroleumState 154-102-25-36-5TFH; NENW 25-154N-102W; 500’FNL and2,070’FWL; Rosebud; Bakken; horizontal; 2,108’ ground; 26494; 33-105-03219; 9/17/2013

Permits renewedStatoil Oil and GasSyverson 1-12 3TFH; LOT1 1-155N-100W; 425’FNL and 390’FEL; StonyCreek; N/A*; on confidential status; 2,271’ ground; 24001; 33-105-02831;9/23/2013Syverson 1-12 4H; LOT1 1-155N-100W; 425’FNL and 360’FEL; StonyCreek; N/A*; on confidential status; 2,272’ ground; 24002; 33-105-02832;9/23/2013

* Note-The geologic target for these wells was not listed in its well file because they are atight (confidential) hole, but the following fields produce from the Bakken pool; Alger,Alkali Creek, Ambrose, Banks, Bear Butte, Colgan, Davis Butte, Eagle Nest, Foreman Butte,Heart Butte, Lost Bridge, Mandaree, Poe, Ragged Butte, Rainbow, Reunion Beach,Sandrocks, Sanish, Sather Lake, South Fork, South Tobacco Garden, Stony Creek, Tioga, andWestberg.

** Note-The geologic target for these wells was not listed in its well file because they are atight (confidential) hole, but the Norma field produces from the Madison pool and theNortheast Landa field produces from the Spearfish/Madison pool.

—Compiled by Ashley Lindly

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ND PERMIT

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 13

14 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

Oil Patch Bits

ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS

Bakken PlayersAbrasivesAlaska TextilesAlliance PipelineAllstate Peterbilt GroupAmerican Association of Railroads (AAR)..............16Anvil Corporation....................................................15Arctic CateringBakken Solids Control ServicesBeaver Creek ArchaeologyBTL LinersCancade Company LimitedCESI ChemicalCity of Grand Forks, NDClearSpan Fabric Structures .....................................5Cruz Energy Services LLC (A CIRI Co.)CST StorageDakota LandingDAWA Solutions GroupDeep Casing ToolsE3 Energy and Environmental Experts ..................15Ebeltoft SicklerElite Tank

Fortis Energy ServicesFour Seasons Equipment ........................................15FutarisGray WirelineGuard-AllHalcon ResourcesHMG Automation, Inc.Investors First CapitalIseman HomesKilo Technologies Ltd.Larson Electronics LLCLister Industries.........................................................3LT EnvironmentalLyndenM SPACE.....................................................................4Marmit PlasticsMidwest Industrial SupplyMiller Insulation Co.MT Rigmat LLC ..........................................................4Muth Pump LLCNetzsch Pumps North AmericaNorth Dakota Petroleum Council

North Slope Telecom (NSTI)Northern Oilfield Services, Inc.OFS Energy FundPetroleum News BakkenPierce LeasingPlainsman Mfg. Inc.Polyguard ProductsPremier Community Homes Ltd.Quality MatReef Oil & GasRigid Global Buildings ............................................16Ritchie Bros. AuctioneersShelterLogicSpartan EngineeringTenCateTremcar Inc.Trinity Health Occupational Medicine......................3UmiaqUnconventional Resources TechnologyUNICO Inc.Unit Drilling CompanyWanzek Construction

Ebeltoft . Sickler . LawyersEbeltoft . Sickler . Lawyers consists of nine lawyers

serving Bakken-based businesses in North Dakotaand Montana. Practice groups provide legal expertisefor: corporate due-diligence, merger, acquisition andbusiness sale negotiation and completion, and leas-ing, purchase or sale of real estate and developercontracts, appearances for planning and zoning andlitigation relating to governmental decisions, andenvironmental claims litigation.

Haylee Cripe, Associate Lawyer

Lawyer Haylee Cripe is a graduate of theUniversity of North Dakota School of Law. At Ebeltoft. Sickler . Lawyers, Cripe’s Bachelor of Accountancyhas proven to be an invaluable asset in advisingclients in the practice areas of business solutions and personal planning. Additionally,Cripe’s education and experience allows her to spot legal and business issues for clients.

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ASSOCIATIONS & EVENTSNDPC elects directors at annual meeting

At its annual meeting in Grand Forks on Sept. 18, the North Dakota PetroleumCouncil elected two new members to its board of directors, and one new memberto its executive committee. The council also reelected two members to the exec-utive committee, and reelected 12 board members whose terms were expiring. Inaddition, the council named three people to existing board seats that had beenvacated.

The two new members elected to three-year terms on the board of directors arePam Roth of WPX Energy and Sean Smith of QEP Energy. Kent Beers of OasisPetroleum was elected to a two-year term as a new member of the executive com-mittee. Steve McNally of Hess Corp. and Blu Hulsey of Continental Resourceswere reelected to the executive committee.

The 12 members reelected to three-year terms on the board were: MikeArmstrong, Armstrong Corp.; Jim Arthaud, MBI; John Berger, Tesoro; Eric Dille,EOG Resources; Jim Glenn, Halcon; Blu Hulsey, Continental Resources; BobMau, MW Industries; Steve Pine, Pine Petroleum; Jim Powers, Powers Energy;Craig Smith, Crowley Fleck; Tad True, True Cos.; and Robert Steede, EnbridgePipelines.

Terry Kovacevich of Marathon Oil is chairman of the board, and Perry Pearceof ConocoPhillips is the board’s vice chairman. Jeff Herman of Petro-Hunt is thesecretary/treasurer. All three are in the middle of current terms.

Other members of board currently serving three-year terms are: DarylAndersen, Hams Well Service Inc.; Lawrence Bender, Fredrickson & Byron;Mike Fitzgibbons, Oneok; Greg Harrison, OXY USA; Mark Johnsrude, BadlandsPower Fuels; Don Kessel, Murex Petroleum; Ryan Kopseng, Missouri RiverRoyalty; Dan Larson, Enerplus; Ryan Leininger, New Wave Energy Service; KenLuff, Luff Exploration; Lynn Moser, Inland Oil and Gas; Kathy Neset, NesetConsulting; Russell Rankin, Statoil; Tony Straquadine, Alliance Pipeline; DarwinSubart, Fidelity Exploration and Production; and Lisa Wynn, XTOEnergy/ExxonMobil.

—MIKE ELLERD

HAYLEE CRIPE

2,353 miles of pipeline constructed in2011, and well over double the 1,010miles of pipeline that were constructed inthe state in 2010.

The Sept. 22 article also incorrectlyreported that from 2009 through 2012,

more than 57,000 miles of pipeline wereconstructed in North Dakota. In fact,from 2010 through 2012, a total of 4,823miles of pipeline were constructed in thestate.

—MIKE ELLERD

lion barrels, for an average of 570,000barrels per well. For a nine-well scenario,EOG reports an EUR of 4.41 million bar-rels for an average of 490,000 barrels perwell. Those EURs represent reservoirrecoveries of 3.0 and 7.6 percent. The1,920-acre infilling is estimated to resultin an incremental gain of 2.7 million bar-rels. As with the 1,280-acre units, the newwells on the 1,920-acre units will be splitbetween the Bakken and Three Forks for-mations.

Of the three reference wells, the Burke1-34 well went on production inNovember 2008 with a 24-hour initialproduction, IP, of 1,206 barrels andthrough July 2013 produced a total of287,648 barrels. The Burke 2-35H alsowent on production in November 2008,and that well came in with a 24-hour IP of1,937 bpd and has produced 274,589 bar-

rels through July. The Burke 18-27H wellwent on production in September 2009with an IP of 765 bpd and has produced159,645 barrels through July.

According to North DakotaDepartment of Mineral Resources Oil andGas Division records, EOG currently has447 wells on active status in the state andanother 46 that are on confidential status.In the Parshall field alone, EOG has 192active wells and 29 on confidential status.Other areas where EOG has focusedactivity include the Alger, Clear Water,Stanley, Spotted Horn, Squaw Creek andVan Hook fields in Mountrail andMcKenzie counties.

According to Oil and Gas Divisionrecords, EOG ranked fifth among NorthDakota oil producers in July averaging47,399 bpd, not counting production fromconfidential wells. �

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CORRECTION

continued from page 1

EOG INFILLING

nomic quantities, but is potentiallyindicative of oil migrating from otherdeeper accumulations, one hypothesisbeing seepage up faults with the origi-nating formation being the Bakken,”Norstra said in the Sept. 25 announce-ment.

Earlier in September, Norstraannounced that it entered into anagreement with Faith Drilling to setthe surface casing on the company’sfirst well. In subsequent phases,Norstra plans to complete the well to avertical depth of 8,800 feet with a one-mile lateral.

As Petroleum News Bakken report-ed in early September, Norstra hadreceived notice from DirectionalDrilling LLC, a potential joint ventureinvestment partner in the project, indi-cating it had nearly completed its duediligence and was satisfied with the

documents and other materials thatNorstra provided. However, the letterof intent on that venture expired withno agreement reached. Since then,Norstra announced that it had partiallycompleted a debenture financing forthe project in addition to other fundsthe company previously raised tofinance its Montana exploration proj-ect.

—MIKE ELLERD

value.“The stalking horse APA is, in the busi-

ness judgment of the debtors, an agree-ment that allows the debtors to preserve,maintain and improve the marketability ofthe purchased assets, while at the sametime allowing the debtors to seek higherand better bids,” the company said in anearlier motion to the Oklahoma bankrupt-cy court.

No other optionsGMX told the court that it was not able

to raise enough capital elsewhere to con-tinue operating. The company had beenhammered by the decline in natural gasprices.

“The debtors have been unable to raisesufficient capital to continue operating anddeveloping their assets because of thedebtors’ current capital structure and thedecline in the price of natural gas,” GMXsaid.

In its April 1 bankruptcy filing GMXlisted assets of $281.1 million and debt of$458.5 million as of Dec. 1.

In June, GMX reported losses for eightconsecutive quarters.

According to court documents, thecompany’s cash position dropped from$107 million in the fourth quarter of 2011

down to $18 million in the third quarter of2012.

In 2010, the company made a strategicdecision to expand from East Texas intobasins with oil potential. In early 2011, thecompany acquired positions in more than75,000 undeveloped net acres in theWilliston Basin of North Dakota andMontana, targeting the Bakken and ThreeForks formations, and in the DenverJulesburg Basin of Wyoming, targeting theemerging Niobrara play.

GMX did boost production to about5,400 barrels of oil equivalent per day —but that was only 11 percent of the compa-ny’s total net output according to lastyear’s third quarterly financial statementto the SEC. �

PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013 15

Multiyear agreementBuckeye Partners, which operates

a terminal at Albany, has a multiyearagreement with Irving to providecrude shipments from its 1.8 millionbarrels of storage.

Buckeye and another Albany ter-minal run by Global Partners hadbeen receiving more than one unittrain a day of crude from NorthDakota before Lac-Megantic.

Neither privately owned Irving northe terminal operators was availableto comment about the current status oftheir operations, or what they haveplanned. �

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DELIVERY GAP

continued from page 1

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Earlier in September, Norstraannounced that it entered into

an agreement with FaithDrilling to set the surface

casing on the company’s firstwell. In subsequent phases,

Norstra plans to complete thewell to a vertical depth of 8,800

feet with a one-mile lateral.

LAND & LEASINGWhiting closes $260 million acquisition

Whiting Petroleum Corp. has closed a previously announced $260 millionacquisition from an undisclosed private party of producing oil and gas wells anddevelopment acreage in the WillistonBasin. The closing was announced in aSept. 20 release from the company.

The properties consist of approxi-mately 17,282 net (39,310 gross) acresin Williams and McKenzie counties ofNorth Dakota and Roosevelt andRichland counties of Montana.

The properties produced an averageof 2,420 barrels of oil equivalent a dayin August.

Whiting said it estimates proved reserves of 17.1 million barrels of oil equiv-alent, about 85 percent of which is oil. It estimates 24 percent of the reserves are“proved developed producing” and 76 percent are “proved undeveloped.”

The acquired assets include 13 operated 1,280-acre Bakken/Three Forksdrilling spacing units with an average working interest of 58 percent and net rev-enue interest of 48 percent. Ninety-two percent of the acreage is held by produc-tion.

Denver-based Whiting funded the acquisition with borrowings under its exist-ing bank credit facility.

The $260 million purchase price is subject to customary post effective dateclosing adjustments for revenues and expenses, Whiting said.

—STEVE SUTHERLIN

continued from page 1

GMX MOVESAccording to court documents, thecompany’s cash position droppedfrom $107 million in the fourthquarter of 2011 down to $18million in the third quarter of

2012.

The properties consist ofapproximately 17,282 net

(39,310 gross) acres in Williamsand McKenzie counties of North

Dakota and Roosevelt andRichland counties of Montana.

costs in North Dakota, making it possibleto do more drilling and completions thisyear than originally planned withoutincreasing our rig count and all within ourcapital guidance range.”

Hill said operational improvements ledto seven more wells drilled and 11 addi-tional completions in 2013 — a total of46 spuds and 52 completions.

“We expect this to increase the year-end exit rate for our Williston oil produc-tion by more than 2,000 barrels per day— or 15 percent — to a new total of15,000 barrels of oil per day. For 2014this additional activity should increase

our Williston production by eight per-cent.”

Oil production growthHill said the oil production growth rate

achieved by WPX in the Williston basinhas been impressive — up 30 percent inthe second quarter compared with a yearago.

The company said production would

have been higher yet were it not for in-transit rail shipments awaiting delivery.The rail delays sliced deliveries by about500 barrels per day in second quarter 2013,to a level of 12,300 barrels per day.

Still, production grew, Hill said, addingthat WPX put nine wells on first sales inthe second quarter — seven in the MiddleBakken, and two in the Three Forks.

“We spud 11 wells with the four rigs;our wells continue to perform at or aboveour expectations,” he said. “We have low-ered our well costs throughout the basins.”

Honing company techniqueHill said a variety of operating efficien-

cies were allowing WPX to make moreheadway in the Bakken, in a shorter lengthof time.

“We have now fully transitioned to paddrilling and we have implemented simulta-neous operations which allows us to drill,produce, and complete at the same time onthe same pad,” he said. “Over the last year,we reduced our drilling times by 35 per-cent; our last two wells have averaged 22and 24 days respectively in drilling.

“In addition to faster drilling times, weare now drilling all our wells with brinewater, and two of our wells TD’d at

drilling rates exceeding 1,000 feet per day— or less than 20 days drilling.” he said.

Early in 2013, WPX completed its first“triple zipper frack,” completing threewells at once. Hill indicated that multiplezipper frack results were positive.

“Our zero frack completions have beenvery successful, and we recently complet-ed our first triple zipper frack successful-ly.” Hill said. “On a go-forward basis, weintend to use these dual and triple-zipperfracs.”

Hill added that infrastructure to thecompany’s Williston operations is improv-ing. The company will electrify 51 of its 55Van Hook wells by the end of the yearwhich will slash its lifting costs, and it isbuilding all of its winter pads in summer tosave money.

Target well cost eludesWhile efficiency improvements have

been many, WPX still finds its well costslooming above the company’s target cost.

“Our well costs are still in the $11 mil-lion range — that’s soup to nuts; thatincludes everything,” Hill said. “Our targetwell costs are more like $10 million. Weexpect to be headed that way in the thirdand fourth quarter.”

Given challenging 2013 weather condi-tions, Hill said, he felt fortunate that WPXwas able to make the strides it did.

“Obviously, in the first quarter, we hada severe winter. We had severe floodingthe second quarter,” he said. “You can seewe will still get a number of spuds off andcompletions done, so we did very wellthere.”

Some costs — notably ceramic prop-pants — are higher by design and judgedwell worth the cost.

WPX said it is using ceramic proppantin the Bakken rather than just sand.

“We’re currently using about a two-thirds to one-third ratio of ceramic tosand,” the company’s operations depart-ment said. “Although that adds about $1million to our costs, ceramic completionsare more predictable than sand, leading tobetter results.”

As for the future, Hill has yet to throwout specific numbers but he does say thefuture looks bright.

“We have not given out guidance for‘14,” he said, “But obviously we expectvery impressive growth rates for theWilliston basin for 2014.” �

16 PETROLEUM NEWS BAKKEN • WEEK OF SEPTEMBER 29, 2013

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Privately owned freight railroads invest more than $20 BILLION annually on the rail network to ensure that America’s energy sources are moved in the safest, most efficient and cost-effective way possible.

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continued from page 6

WPX SURGE

C O M P A N Y U P D A T E

A S S O C I A T I O N S

L A N D & L E A S I N G

Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013

Crude on rails in for long haul

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Plains All American’s Manitou crude oil and NGL rail facility nearRoss, west of Stanley in Mountrail County, North Dakota. Phototaken this winter by Vern Whitten. See rail story below.

WLL gets bum rapJames. T. Brown: Whiting Petroleum is not running out of drilling inventory

By RAY TYSONPetroleum News Bakken

Denver-based E&P independentWhiting Petroleum Corp. is finding

it difficult convincing investors that thecompany is not running out of suitableplaces to drill.

“The knock against Whiting is that youguys don’t have any inventory and in threeyears you’re going to be done,” James T.Brown, Whiting’s president and chief operating offi-cer, told industry analysts Feb. 6 at the Credit Suisse2013 Energy Summit in Vail, Colo.

The lack-of-inventory perception seems to be par-

ticularly acute when it comes to findingnew targets in Whiting’s flagship Sanishfield in North Dakota’s Williston Basin,which accounts for around 30,000 barrelsper day, or nearly 40 percent of the compa-ny’s roughly 80,000 barrels per day of pro-duction.

By the end of 2012, a total of about 300production wells had been drilled in theSanish field, with at least another 200 to bedrilled and completed.

“It seems that when we get to the end of everyyear, we have two-and-half to three years of drilling

Riverbed draws top bidsQEP Energy high bidder on 22 Missouri River leases; shore zone included

By MIKE ELLERDFor Petroleum News Bakken

A total of 27,370 acreswere leased in 306 tracts

in nine western North Dakotacounties in the Feb. 5 NorthDakota Department of TrustLands oil and gas lease auctionbringing in a total of$24,609,206 at an averageprice of $899 per acre. The auction was dominated bytracts between the former high water marks on thetwo banks of the Missouri River under LakeSakakawea in Dunn County.

Of the 27,370 acres leased, slightly less than one-

third or 9,900 acres were in106 Missouri riverbed tracts inDunn County and those tractsbrought in a total $21,227,455,a sum that accounted for morethan 86 percent of the grossauction proceeds.

The Dunn County leaseactivity was, in turn, dominat-ed by 22 Missouri riverbedtracts totaling 1,465 acres that

fetched a total of $16,536,197 at an average price of$11,291 per acre, all purchased by Denver-basedQEP Energy Co.

Galt: MPA ever vigilantMontana Petroleum Association chief keeps tabs on several bills during session

see WHITING INVENTORY page 18

LANCE GAEBE DREW COMBS

see ND LEASE AUCTION page 21

By MIKE ELLERDFor Petroleum News Bakken

Numerous oil and gas-related billshave been introduced thus far in the

63rd session of the Montana legislaturecurrently in session in Helena, and whileMontana Petroleum Association ExecutiveDirector Dave Galt follows all of themclosely, he recently spoke with PetroleumNews Bakken and discussed those that hethinks are most important to his membership.

The key bills Galt identified fall into a variety ofcategories. Some deal with compensation forlandowner surface damage, eminent domain andforced pooling, all of which Galt lumps together intowhat he considers to be “property rights” legislation.Other bills that Galt considers key deal with taxation,

temporary leasing of water rights, financialrelief to oil and gas-impacted communities,and carbon sequestration and enhanced oilrecovery using carbon dioxide.

Property rights: surface damage compensation

House Bill 431, introduced by Rep.Austin Knudsen of Culbertson, is a surfacedamage compensation bill that would addto the existing oil and gas surface damage

and disruption compensation statue the definition of“lost land value” as “the value of the highest and bestreasonably available use, including the proposed use.”The bill would also require that the surface owner andthe oil and gas developer or operator attempt “in good

DAVE GALT

see ENERGY LEGISLATION page 22

Rail will survive pipeline additionsThe need for rail to move crude from

Midcontinent fields will likely persist,even if plans for expanding pipelinelinks from the Bakken to the Gulf Coastgo ahead, EOG Resources ChiefExecutive Officer Mark Papa told aColorado conference.

He said rail will still be used fiveyears from now to deliver Bakken crudeto all three Lower 48 coasts — the Gulf,East and West — but expects the cur-rent advantage of Louisiana Light Sweet, LLS, crude pricesin the Houston market will probably change within 18

Bakken threatens Alberta upgraderThe Bakken might be about to register a friendly-fire vic-

tim — a C$11.6 billion Suncor Energy upgrader to convert oilsands bitumen into synthetic crude for refining into fuels.

Suncor, with France’s Total as a 49 percent partner, expectsto decide no later than March 31 on the immediate fate of itsVoyageur project, which has been in a holding pattern for thelast four years, putting an end to its original startup date of2016.

Since taking control of the oil sands giant nine monthsago, Suncor Chief Executive Officer Steve Williams hasincreasingly hinted that economic challenges could be theundoing of Voyageur.

His explanation has been delivered in clear-cut terms.

Helms slams U.S. Fish & Wildlife Two new slides have appeared in

Lynn Helms’ presentation packet —slides with information that he thinksindicate an attempt bythe U.S. Fish & WildlifeService to take over oiland gas permitting inNorth Dakota.

One is a map backing up his agency’srecent analysis that shows 83 percent ofNorth Dakota’s oil and gas spacing unitshave some federal land ownership, surface and/or minerals.

Helms, director of the North Dakota IndustrialCommission’s Department of Minerals, Oil and Gas Division,told North Dakota lawmakers in January, “It was really sur-prising to me when we did this analysis to find out that 83

see RAIL SURVIVAL page 24

MARK PAPA

see ALBERTA UPGRADER page 24

see PERMITTING page 10

JAMES T. BROWN

LYNN HELMS

page6

Senate majority leader weighs in onNorth Dakota oil, gas legislation

GETTHE LATESTBAKKEN NEWSSUBSCRIBE TODAY!907-522-9469PETROLEUMNEWSBAKKEN.COM

Hill said the oil production growthrate achieved by WPX in the

Williston basin has beenimpressive — up 30 percent in thesecond quarter compared with a

year ago.