New Members - Thanks to the new Petroleum Council members, Western Standard Energy Corp and Beaver Creek Archaeology, Inc.

Reservation Oil Tax Agreement - The Three Affiliated Tribes has indicated to the State of North Dakota that it believes changes to the current tax rate and its structure are not necessary to spur oil and gas activity on the Fort Berthold Reservation.  The Tribe, therefore, prefers to maintain the current tax rate structure instead of changing the rate or structure as proposed under Senate Bill 2419, which was passed during the 2007 Legislature.  The Tribe, however, has indicated it would like to continue to explore a regulatory agreement with the State that includes the Bureau of Land Management and Bureau of Indian Affairs.
 
Oil & Gas Town Hall Meetings - The meetings will feature state and local officials, along with industry representatives, who will present information on the rights of surface owners and answer questions about the energy development in their area.  Meetings will be held in Bowman (February 11), Watford City and Killdeer (February 12), Tioga and Stanley (February 25), and New Town (February 26).  The meetings are being put together by the Oil and Gas Producing Counties, Petroleum Council, and the Oil and Gas Research Council.  For more information on the meeting time and location check out - http://www.ndoil.org/content/view/88/2/.

Oil Operators Should Maintain Set-back From Military Launch Facilities - Oil operators are urged to maintain a 1,200 ft. set-back from military facilities.  There are approximately 165 military facilities within a 100-mile radius of Minot, North Dakota.  Operations including drilling/hydraulic fracturing and seismic could set off alarms if conducted within 1,200 ft.  If military operations are taking place at one of the locations, operators should also take precautions to keep equipment and staff at a distance to prevent disruptions, as surveillance remains high.  If you have any questions on this matter, please contact Lt. Col. Jim Penrod, 91st Space Wing Director of Plans and Exercises, at (701) 723-2862. Thank you for taking these precautions.

2008 Oil Tax Trigger - The annual price trigger adjustment notice has been published on the Tax Commissioner's website and is available at http://www.nd.gov/tax/oilgas/pubs/trigger.pdf.  The trigger, which is the basis for the lower oil extraction tax rate, rose slightly from the 2007 price.

Petroleum Council Hires Intern - Tyler Rupp, a native of Edgeley, North Dakota, is a student at the University of Mary in Bismarck, and will graduate in May with a Business Administration degree.  Tyler served in Iraq as part of the North Dakota Army National Guard. 

North Dakota Oil Tax Revenues Surge - The State of North Dakota continues to reap huge tax collections from the oil and gas industry.  Oil tax collections were $19 million for the month of November.  That’s $9 million more than anticipated in the state budget.  The $71 million general fund obligation for the 2007–2009 biennium has already been met and $8.2 million was deposited in the Permanent Oil Tax Trust Fund.  Oil production in October was 129,000 barrels per day and there were 3,827 wells producing oil. 

Congress and President Imposes $4,000 BLM Permitting Fee - The Fiscal Year 2008 omnibus appropriations bill – signed into law by President Bush on December 26 – requires that the Bureau of Land Management (BLM) charge a $4,000 processing fee for each new oil and gas drilling permit application, known as an Application for Permit to Drill (APD).  Prior to enactment of the omnibus bill, there was no charge for processing APDs.  The fee includes all Forest Service permits filed through BLM.  North Dakota will see, with estimated 75 – 100 wells per year, a cost to industry of $300,000 to $400,000 per year.  The biggest impact may be on shallow gas wells in the extreme southwest corner of North Dakota.  The BLM has indicated the bill applies to wells on the BLM lands or minerals on the reservation.

Ness Appointed Chair of IOGCC Public Outreach Committee - Governor Sarah Palin of Alaska, Chair of the Interstate Oil and Compact Commission (IOGCC), has appointed Ron Ness to a two-year term as Chairman of the Public Outreach Committee, which began in December.  As Chairman, Ness’s goal is to hold a national roundtable discussion on energy education and public outreach at the IOGCC Annual Meeting next fall in Santa Fe, New Mexico.

Petroleum Council to Host Denver Social - Join the Petroleum Council Board of Directors at the Brown Palace in Denver on March 12 from 5 to 7 p.m.  All members and non-members with oil and gas interests in North Dakota are invited to the social.  More information will be provided as the date approaches.

Oil & Gas Research Council Review Grant Proposals - The Research Council is reviewing five grant proposals equaling more than $1.7 million in funding requests.  The proposals include two Bakken projects as well as a portable multi-phase oil meter flow measurement system.  The next grant round deadline will be June 1, 2008.  To review the projects – http://www.nd.gov/ndic/ogrp-infopage.htm.

Unemployment Insurance Rates Drop - More good news for North Dakota employers as the state’s unemployment insurance rates dropped for the third straight year.  The lower rates will save employers an estimated $11 million per year.

Workforce Safety & Insurance (WSI) Board of Director Candidates Needed - A committee comprised of statewide business associations, including the Petroleum Council, is seeking two employer  candidates to fill vacant seats on the WSI Board of Directors.  The final appointments from a list of three candidates will be made by Governor Hoeven. 

One of the positions represents employers with WSI annual premiums under $10,000 per year and must be the principal owner, chief executive officer, or chief financial officer of a North Dakota business the other is an employer at-large position with no premium requirement.

If you are interested in applying for the vacancies, send your letter of application, resume, and completed questionnaire (available online at www.ndchamber.com on the Legislative Advocate page), postmarked no later than January 18, 2008 to the WSI Board Coordinating Committee at PO Box 2639, Bismarck, ND 58502, or send applications via email to .

16th Williston Basin Petroleum Conference & Expo – Registration for the upcoming Williston Basin Petroleum Conference will be available online at www.ndoil.org on January 21. The conference will be held April 27-29 at the Holiday Inn and State Fair Center in Minot, North Dakota.  Some of the topics include crude oil bottleneck, updates on the hot plays, and Bakken, Bakken, Bakken.  And, you don’t want to miss world-renowned economist Dr. Michael Economides. 

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