New Member – Thanks to the new Petroleum Council member Bluestar Land Services.

Congress is at it Again – The U.S. House and Senate are doing their best to make themselves look good to voters by pushing legislation that does nothing to increase the supply of energy while trying to punish the oil and gas industry with tax increases.  Last week, the Senate approved energy policy legislation that includes a 36 billion gallon biofuels mandate, a requirement that crude oil demand be reduced by 10 million barrels per day by 2031, gave authority to the Department of Energy to "encourage" coordinated refinery turnarounds, created federal price gouging authority with criminal penalties, and adopted a requirement that half of all new autos in 2015 and beyond must be alternative fuel capable.  Thankfully, a $26 billion tax increase on the oil industry, which would have had the industry pay for tax breaks for a broad array of alternative and renewable energy sources, was successfully stripped from the bill.  Next the House of Representatives will begin debating on their bill, which does many of the same things, none of which does anything to increase the supply of oil or gas which provides our nation with 65% of its daily energy needs.  Senators Dorgan and Conrad voted for the tax increases on the oil and gas industry.

Legislation Takes Effect:  Bills that passed in this year’s legislative session relating to taxes are effective July 1, while all other legislation is effective August 1.

EPA is on the Way – EPA has indicated they are planning random inspections of oil holding tanks in the Williston area in July.  The EPA will randomly choose tank locations and will contact the companies to join them at the inspection.  The tanks they will be inspecting are at least 1,000 gallons and they will be looking to see if the SPCC regulations are being followed.

Petroleum Council Annual Meeting – The Annual Meeting will be held September 18–20 in Medora, North Dakota.  The agenda, meeting and golf registration, sponsorship, and hotel information will be available in mid-July.  On Tuesday, there will be open golf followed by an evening reception at the ND Cowboy Hall of Fame.  Wednesday will be “Fun Day” with a golf tournament at the Bully Pulpit or your choice of tours of the Theodore Roosevelt National Park and local historic sites, or hiking and biking on the Maah Daah Hey Trail.  The day will wrap-up with a pitchfork fondue.  On Thursday, there will be presentations on the Bakken Formation and other hot topics in the state’s oil patch. http://www.medora.com/

Workforce Safety & Insurance Announces 50% Dividend – The new rate plan beginning July 1, 2007 calls for an overall statewide decrease by an average of one percent.   However, premiums will rise by about two percent due to an increase in the statewide payroll wage cap.  Positive balance employers will receive a 50% premium dividend credit on their next statement.  The total dividend will return $69 million in rebates to North Dakota employers.  The dividend is a result of continued positive investment returns and other favorable fund developments.  This is the third year in a row a dividend has been returned to employers, totaling more than $150 million. http://www.workforcesafety.com/news/newsreleases.asp

Oil & Gas Operations   - 5.4%                            Oil & Gas Refining           - 1.3%
Oil & Gas Development/Drilling - 6.1%              Oil & Gas Well Supply/Equip - 2.2%
Oil Well Trucking   +7.6%                                   Oil Well Servicing   - 5.2%
Oil & Gas Instrument Logging -12.3%

Natural Gas Production Tax Rate to Drop Slightly for Fiscal Year 2008 – The State Tax Department has determined that the natural gas production tax rate for fiscal year 2008 (July 1, 2007 through June 30, 2008) is $.1428 per mcf.  The tax rate is computed on an annual basis. http://www.nd.gov/tax/oilgas/pubs/index.html

Bismarck State College Seeks Vice President, Energy Programs and Director, National Energy Center of Excellence – This person will be responsible for working for the development and implementation of the National Energy Center of Excellence’s Strategic Plan.  This will include directing the National Power Plant Operations Technology and Education Center, and other energy and energy-related education and training programs.  The applicant qualifications are a master’s degree or bachelor’s degree (must be willing to work toward a masters) with significant management experience and/or management/leadership professional development.  With either degree, they must have a commensurate record of industrial or applied contributions to an energy-related discipline.  The application deadline is June 29.  Candidates with experience in the energy industry are encouraged to apply.  For more information, go to http://www.bismarckstate.edu/hr/jobs/VPEnergy607.pdf.

Oil and Gas Research Council – The Oil and Gas Research Council met in Bismarck on June 26 to review five grant application requests.  For more information the Oil and Gas Research Council or to view complete project summaries, go to http://www.nd.gov/ndic/ogrp-infopage.htm.  The next grant application deadline is November 1, 2007.

ConocoPhillips Attracts 300 at their Bismarck Town Hall Meeting – ConocoPhillips executives met with a crowd of 300 at a Town Hall meeting in Bismarck on June 20.  The crowd had many questions for ConocoPhillips and a panel comprised of Thomas Erickson, EERC; Randy Schneider, ND Ethanol Producers Association; and Shane Goettle, ND Commerce Commissioner.  The ConocoPhillips representatives also met with business leaders, young professionals, and high school students throughout the day.

For more information on any of these issues, contact the North Dakota Petroleum Council at (701) 223-6380.