December 20, 2007

Brian Johnson
Enbridge Pipelines (ND)
2625 Railway Avenue
Bismarck, ND 58703

RE: Support of increased pipeline capacity Expansion #6

Dear Mr. Johnson:

The North Dakota Petroleum Council represents nearly 150 companies involved in all aspects of the oil and gas industry including oil and gas production, refining, pipeline, transportation, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region.  The Petroleum Council represents 29 of North Dakota’s top 40 oil producers who account for approximately 80% of the nearly 39 million barrels of oil produced in North Dakota in 2006.

The North Dakota Petroleum Council supports the proposed pipeline expansion of the Enbridge North Dakota Pipeline System.  Oil production in North Dakota continues to increase and it appears that the current expansion will be at capacity before the project is completed.  We anticipated continued growth in the state’s oil production and this pipeline expansion is a critical upgrade to the infrastructure that carries the crude oil to markets outside the state. 

The Petroleum Council encourages Enbridge and regulators to continue to implement more stringent penalties and regulations to reduce the amount of air-barrel nominations on the pipeline.  This is a severe problem which must be addressed through a commitment to the enforcement of the regulations and the imposition of the penalties.

Thank you for providing information on the expansion proposals and for taking into consideration the impact on North Dakota’s oil and gas industry in determining to move ahead on your expansion plans.

Sincerely,
    
      
Ron Ness

cc: Governor Hoeven
      Attorney General Stenehjem
      Agriculture Commission Johnson
      Senator Conrad
      Senator Dorgan
      Representative Pomeroy
      Public Service Commission