North Dakota Sets Oil Production Record – In August 1984, North Dakota produced 147,774 barrels of oil a day setting a bench mark that would be untouched for almost 24 years. In April 2008, the Industrial Commission reported that North Dakota oil wells pumped an average of 150,578 barrels of oil per day. Not only did North Dakota surpass its previous daily average set in 1984, but it is also on pace to vastly surpass 1984’s 52.6 million barrels annual totals. North Dakota currently has 3,988 active oil wells, up from the 3,661 active wells the same time last year. In addition, the drilling rig count is 75, which is up 43 from this same time last year. This activity has led to a 50% increase in oil production over the last 30 months.
Oil Tax Revenues for 2008 – The North Dakota Tax Department has collected a combined total of $345 million in oil tax revenues in fiscal year 2008 through the month of May. The Tax Department is expecting to collect an additional $50 million in the month of June. Of these totals collected, $181.5 million came from the oil and gas gross production tax and $163.9 million came from the oil extraction tax.
Tribal Oil and Gas Tax Agreement – Governor John Hoeven and Tribal Chairman Marcus Wells met recently to sign the agreement that will streamline tribal and state oil taxes into one. Prior to the agreement, wells on tribal land were susceptible to a double tax on oil production. The tax agreement goes into effect July 1, 2008. Per the agreement, the tribe will receive half of the 11.5 percent production and extraction tax on tribal land as well as 20 percent of the five percent tax on fee land.
2008 Teacher Education Seminar a Success – 40 teachers and new industry members gathered for the 15th annual Teacher Education Seminar in Bismarck, June 9-12. This year’s course contained an extra day that allowed teachers to spend time learning more about industry issues as well as the fossils behind fossil fuel. The high reviews from teachers who attended are due to generous efforts made by many industry individuals and companies. The Petroleum Council would like to thank all those involved in making our first four-day Teacher Education Seminar a success!
Petroleum Council Annual Meeting – The Petroleum Council Annual Meeting will be held September 16 –18, 2008 at the Radisson Inn in Bismarck. The meeting begins on the 16th with open golf and a reception at the Bistro. The golf tournament, Heritage Center luncheon and history exhibition, sporting clays, and Hall of Fame banquet will be held September 17, 2008. The 18th will be industry presentations along with Governor John Hoeven and Mark Pappa, CEO of EOG Resources as keynote speakers for this year’s industry luncheon. Registration information will be available in July at www.ndoil.org.
Pipeline Authority Seeking Director – The Industrial Commission is currently looking for an individual to fill the Pipeline Authority Executive Director position on a part-time basis. If you are interested in the position, or wish to recommend someone for the position, please contact Karlene Fine at
, Lynn Helms at
, or Ron Ness at
. If you have questions or need assistance from the Pipeline Authority, please contact Karlene Fine, Industrial Commission Executive Director at (701) 328-3722.
Gas Tax Rate for Fiscal Year 2009 Available – The Tax Commissioner has determined that the natural gas tax rate for the fiscal year beginning July 1, 2008 through June 30, 2009 will be $.1476 per mcf. For information regarding the three step process involved in establishing this rate, check out http://www.nd.gov/tax/oilgas/pubs/gasrate.pdf. North Dakota Oil PAC – The North Dakota Oil PAC is looking for contributions to support political candidates in North Dakota who support the oil and gas industry, work to promote good government, and maintain a positive business climate for the industry. In North Dakota, only contributions of more than $200 are reportable. Sorry, but corporate contributions are not allowed. For more information see http://www.ndoil.org/images/stories/PDFs/oilpac.pdf.
ECAP 2008 – The objective of the Energy Career Awareness Partnership (ECAP) is to effectively educate students, teachers, and parents about the benefits and career opportunities provided by the North Dakota energy industry in the classroom, schools, and at career and job fair events. Now in its seventh year, the ECAP has reached 50,000 students, teachers, and parents. In 2007/2008, ECAP presented to 7,000 students, teachers, and parents.
State Land Clarifies Easements, Permits, and Damage Agreements – In a recent letter to the Petroleum Council, the State land Department said:
It is the goal of the State Land Department that no one should wait more than 24 hours for a response from the State Land Department in regards to their issue. To keep true to this statement, the State Land Department has added three new tools for issuing and tracking easements.
1. A right-of-way policy and procedure web site to be released in mid-June, 2008. 2. Scanned rights-of-way and permit documents to be released on the web incrementally as they are completed. Tentatively, scanned documents should be searchable on the web by August 1, 2008 through McHenry County. 3. Custom designed right-of-way tracking software which tracks a right-of-way application through the entire process from the time it enters the office until it is approved, signed, and scanned to the web.
Another common concern deals with damages or easement costs and in turn how much will it cost your business. The answer is that the State asks for payments equal to the private market. The reason for this is that the State is trying to avoid any appearance as a “Price Setter,” but is still looking to receive fair payment for the trust beneficiaries. If you have any further questions about right-of-way and oil well surface damage processes, please call Mike Haupt at 701-328-1916 or Mike Brand at 701-328-1918.
Williston State College Breaks Ground on Training Center – Williston State College recently broke ground for the construction of a 7,500-square-foot building that will serve as a centerpiece to train a new generation of workers for the oil and gas industry in North Dakota. The Rig Training Program, which started in 2004 with 13 oil-related classes, has now increased to more than 300 oil-related classes, and has provided industry training to more than 3,700 individuals. The oil and gas industry has already donated an estimated $1.2 million in cash, equipment, and services.
South Dakota Approves Rezoning for a New Oil Refinery – Union County, South Dakota endorsed the rezoning of 3,300 acres of farm land north of Elk Point with a 58 percent to 42 percent vote June 4, 2008. Texas-based Hyperion Resources requested the rezoning for the $10 billion refinery, billed as a potential step toward national energy independence. If the project moves forward, construction would begin in 2010 and would take four years to complete the refinery, which would process 400,000 barrels of Canadian crude oil a day.
For more information on any of these issues or to be removed from the mailing list, contact the North Dakota Petroleum Council at (701) 223-6380 or
