More Than 400 Industry Professionals Set to Gather in Bismarck, North Dakota

BISMARCK, ND – (July 11, 2017) – The 3rd Annual Bakken Conference & Expo will begin Monday, July 17th at the Bismarck Events Center in Bismarck, North Dakota. Produced by BBI International and North American Shale magazine, the event is expected to draw 400+ shale oil industry professionals, including representatives from major operating producers, completion companies and active drillers. The event will include nearly 70 exhibitors, making this the largest Bakken-focused conference in North America this year.

The conference agenda includes more than 60 speakers, focusing on operator updates, investor perspectives and technology trend explanations. “The diversity of speakers we’ve assembled will provide attendees with a full overview of what is currently happening in the Bakken,” says John Nelson, director of marketing and sales at BBI International. “In the past two years, the Bakken play has experienced some exciting changes despite low crude prices. This event will highlight what’s new in the Bakken and how to navigate the play in the future.”

The 2017 program will provide in-depth analysis and timely presentations from speakers focused on the following:

  • exploration and production trends
  • new completion strategies for improved production
  • infrastructure and construction updates
  • logistical challenges
  • investor perspective
  • new product and technology offerings

“As Bakken-focused businesses continue to navigate this new era of shale energy development, three themes continue to emerge: how to find efficiencies, how to reduce operating costs, and how to thrive in an ever-changing oil and gas market. We’ve worked with industry leaders to find the stories and presentations that show what efficiency and cost-reduction efforts look like,” says Luke Geiver, program director of The Bakken Conference & Expo and editor of North American Shale magazine. Featured throughout the agenda are multiple case studies and perspectives offering proven results by operators, service providers and new technology firms. “Because the event mimics the content of our print publication, attendees will receive valuable insight on multiple elements of the Bakken play.”

New this year is a pre-conference seminar titled, The Bakken Vs. The World. The one-day event includes perspectives from multiple entities that are currently working in and out of the Bakken. The agenda is designed to give attendees perspective on what investors, businesses, jobseekers, regulators and others think about when they think of the Bakken, Permian or other shale plays. Presentations from investor analysts, regulators, multi-play service and operations firms, job service personnel and community leaders will highlight what’s better, what’s different and what needs to change in the Bakken.

To view the agenda, visit www.TheBakkenConference.com.

jessica-senaBy: Jessica Sena

If you haven’t heard of the Dakota Access pipeline protest across the North Dakota border, now’s the time to pay attention.

The project, a 30-inch-diameter pipeline owned by Energy Transfer Partners that would move up to 570,000 barrels per day from the Bakken oil fields to Patoka, Illinois, was scheduled to be operational by the end of the year. The pipeline operator purchased voluntary easement agreements on 100% of the properties along the route in North Dakota and 99% of the properties across the entire four-state route. All permits, including approval by the U.S. Army Corps of Engineers in July, have also been obtained by the company; however, protests have stopped construction in its tracks.

Yesterday, two decisions marked a precedent setting action by the federal government, with respect to land use and lawful development. Judge James Boasberg of the U.S. District Court denied the South Dakota Standing Rock Sioux Tribe’s lawsuit to block pipeline construction, siting a lack of evidence that building the pipeline would harm the Tribe.

The Departments of Justice, the Interior and the Army then immediately announced an indefinite suspension of pipeline construction to reassess cultural impacts to what the Tribe calls “sacred ground”. The pipeline route does not cross the Standing Rock reservation, however, the Tribe fears harm to Lake Oahe on the Missouri River in North and South Dakota.

Consultation with GeoEngineers, a subcontractor to Dakota Access, provided information which indicates the boring process would not be of a magnitude to impact natural features, cultural resource features or above ground structures. The crossing at Lake Oahe will be placed approximately 140-210 feet below the ground surface and approximately 92 feet below the bottom of Lake Oahe. The pipeline would utilize the best available safety and monitoring technology.

The Dakota Access team held 154 meetings with local elected officials and community organizations in North Dakota since the project was announced last summer. Over the course of the year-long approval process with the North Dakota Public Service Commission, the Tribe did not once appear to voice concerns over the impacts of the pipeline’s route.

Protests arose after the project was approved and easements secured, and have since become violent and unlawful. Construction workers (100% of which are union per the project agreement) have needed protection by security guards and law enforcement. National Guardsmen have also been alerted by the North Dakota Governor to standby for support.

Allies of the Tribe in its protest have been extreme environmental groups, the Black Lives Matters movement, a handful of celebrities, and Green Party candidate for President, Jill Stein. Stein was among many seen vandalizing construction equipment last week, for which a warrant was issued for her arrest. Multiple arrests of protesters have been made along the pipeline route for trespassing and criminal mischief.

The suit filed by Earthjustice on behalf of the tribe states that, “the tribe relies on the waters of Lake Oahe for drinking water, irrigation, fishing and recreation and to carry out cultural and religious practices. The public water supply for the tribe, which provides drinking water for thousands of people, is located a few miles downstream of the proposed pipeline crossing route.” It goes on to say, “the cultural and religious significance of these waters cannot be overstated. Construction of the pipeline … and building and burying the pipeline would destroy burial grounds, sacred sites, and historically significant areas on either side of Lake Oahe.”

In the federal agencies’ announcement to halt construction on federal land and beneath Lake Oahe, it was said the conflict highlights the need to consider “nationwide reform with respect to considering tribes’ views on these types of infrastructure projects.” “Reform” is the word that should have everyone concerned.

In a 1988 case, Lyng v. Northwest Indian Cemetery Protective Association, wherein The U.S. Forest Service attempted to complete a logging road through the Six Rivers National Forest in northwestern California, despite the religious use of the area by three Indian tribes, the Supreme Court ruled against the Tribes.

By ruling in favor of development, the Court avoided a situation in which tribes could guarantee the nonuse of significant portions of government land. The Court, reportedly, realized that the veto power requested by the tribes “could easily require de facto beneficial ownership of some rather spacious tracts of public property,” and it accordingly acted to prevent such an occurrence.

Following the decision, the Supreme Court stated, “however much we might wish that it were otherwise, government simply could not operate if it were required to satisfy every citizen’s religious needs and desires.”

And here we are, now faced with the very question of satisfying desires of some people over the laws which govern all people. The federal government has gone against its own agencies and judges’ lawful determinations to allow the heavily regulated construction of a $3.7 billion dollar pipeline which would create between 8,000-12,000 construction jobs and millions in beneficial tax revenue to the states in which it operates.

It’s worth noting that there are more than 2 million miles of pipeline traversing the country. Seventy percent of domestic crude is transported by pipeline, the safest means of moving oil and natural gas according to the federal government’s own Pipeline and Hazardous Materials Safety Administration.

Those resources, moved by pipeline, provide the necessary living essentials to all people, regardless of their beliefs or support. Every one of the protestors along the Dakota Access pipeline is a consumer of petroleum products, and benefits from the monies which result from pipeline infrastructure.

This decision, perhaps a Keystone XL sequel, will set the stage for what appears to be a frightening and uncertain future. If unlawful protests can reverse lawful permits, then the rule of law itself as it pertains to pipelines, permits, people and public lands as a whole, is imperiled.

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The 2016 annual meeting of the Montana Petroleum Association (MPA) will take place in Billings August 30th and 31st at the DoubleTree Hotel, formerly the Crowne Plaza.

Event highlights include special guest, Congressman Ryan Zinke to speak Tuesday night at Pryor Creek Golf Course during the MPA barbeque. Recent past speakers include former Lt. Governor Angela McLean and Attorney General Tim Fox.

On Wednesday, the morning will commence at the DoubleTree with breakfast speaker Paul Babb of Butte, Community Relations Manager for NorthWestern Energy. Babb is a current member of the REAL Montana Program, a public-private partnership through the MSU Extension office, engaged in educating leaders of Montana on agriculture and natural resource development industries and issues. His presentation will be focused on the importance of “Telling the Story of Our Employees”.

The general meeting of MPA will follow, ahead of three panels which will address subjects including landowner relations, community engagement, methane rules, federal proposals, and collaboration with local government.

mpa_alan-olson“This year, we wanted to tailor our meeting to address Montana-specific issues that appeal to both industry and the general public,” said Alan Olson, Executive Director of MPA. “We’re hosting a good mix of industry experts and the regulators we work with on each of our panels.” (Olson, pictured right with MPA President, Greg Brown, CHS Refinery).

Panelists include Jack King of Billings, longtime landman and former commissioner with the Board of Oil and Gas Conservation; Steve Durrett, current BOGC member and President of August Energy Partners; recent past president of the Montana Association of Professional Landmen, Nicole Bement of Sidney, now with XTO. Each panelist will address how industry can balance public concerns with oil and gas operations by improving communication.

On the Community Engagement panel, speakers will discuss how oil and gas businesses are preparing the next generation of industry leaders, and making lasting investments in the community. Panelists will be Dan Carter, Public and Government Affairs Manager at ExxonMobil; Danette Welsh, Government Affairs Manager at ONEOK, representing the midstream; and Shawna Bonini, Montana Tech grad and past president with the Society of Petroleum Engineers, and former Drilling Engineer for Chevron, and SM Energy in Billings.

A final panel on industry topics will address issues facing the oil and gas sector at the state and federal level, including hotly contested methane rules. Speakers include Tony Lucero, Lead of Regulatory Programs at Enerplus Resources; Karl Christians, Conservation District Specialist, DNRC; and Brian Fakharzadeh, VP of Development and Operations at Western Energy Alliance.

Keynote speaker of this year’s Petroleum Industry Appreciation Day luncheon will be author and filmmaker, Mark Mathis. Mathis has spent most of his career challenging widely accepted ideas that are he describes as “simply untrue”. Mathis’s resume includes a decade as a TV news anchor and reporter, talk radio host, media trainer, founder of Citizens’ Alliance for Responsible Energy, speaker and documentary film producer/director.

In his film, spOILed, Mathis highlighted the public’s ignorance of the central role oil plays in our lives. Mark’s new film, Fractured, exposes how language is used to dangerously deceive us about the most essential component to the function of the modern world—energy.

Registration is available online at montanapetroleum.org, and the public is invited to attend. Press requests and additional questions can be directed to Jessica Sena, 590-8675.

Recently, the U.S. Supreme Court issued a nationwide stay on the Environmental Protection Agency’s (EPAs) new regulations on coal-fired power plants. This decision provides states like Montana – and over half of the states in our nation – relief from these overreaching and misguided regulations while they are being challenged in court.

These latest EPA regulations are part of the Obama administration’s relentless attacks on affordable energy and good-paying Montana jobs. The federal government’s misguided plan would lead our country in the wrong direction – away from being an energy leader—and would destroy thousands of good-paying Montana jobs.

As a member of the Senate Energy and Natural Resources Committee, I’m working to move forward commonsense policies that help secure an all-of-the-above energy solution and push back on job-killing regulations that threaten Montana’s energy future.

By promoting innovation and responsibly developing Montana’s vast resources, we can secure abundant energy that is clean, affordable and reliable.

The 2015 Economic Outlook recently published by the University of Montana Bureau of Business and Economic Research showed how technology and innovation have already revolutionized the American energy industry to make made-in-America energy resources more accessible than ever.

Montana is ranked at the top in U.S. coal deposits, has rich oil and gas deposits including portions of the Bakken and Three Forks formations, has immense hydropower, solar and biomass potential, and is first in wind potential. Montana is truly an example of what an all-of-the-above energy plan can look like and is well-equipped for continued growth.

But despite this encouraging news – and even with the U.S. Supreme Court’s recent ruling to halt the Obama administration’s new regulations— Montana still faces challenges in reaching its full energy potential. We need to work toward comprehensive solutions that encourage innovation, grow our economy and revolutionize how we produce and distribute energy.

That’s why I’m hosting Montana Energy 2016 in Billings from March 29 to 31. Back for its third year, this comprehensive conference will focus on made-in-Montana energy and the good paying jobs it creates.

Montana holds a vital role in securing our nation’s all-of-the-above energy strategy and this conference comes at a vital time when our nation needs leadership. Montana Energy 2016 will bring together energy leaders to help increase innovation and move Montana’s energy opportunities to the next level.

Registration is open, with discounted rates for service members and students. Please visit www.MontanaEnergy.net to learn more and to register. Join me for Montana Energy 2016 so that we can work together to ensure that Montana remains an energy leader for years to come.

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Bismarck, N.D. – The Bureau of Land Management’s (BLM) unnecessary and duplicative proposed rules for venting and flaring could reduce production on impacted leases, reduce state tax revenues and cost thousands of private royalty owners millions in lost royalty income, according to the North Dakota Petroleum Council (NDPC).

“The industry supports the goals of capturing greater quantities of associated gas and reducing waste but this one-size-fits-all federal process could come at a huge cost to North Dakotans while providing few – if any – benefits,” said Tessa Sandstrom, communications manager for the NDPC.

Early industry estimates anticipate production could decrease by more than 20 percent from more than 2,780 affected wells. This would cost the state $23.8 million in oil and gas severance taxes and North Dakota mineral owners more than $39.1 million in lost royalty income if the rule were fully implemented.

“The BLM claims that they could collect $23 million in additional royalty revenues for the federal government, but even if that were true, it would be at the expense of more than $62.9 million in tax revenues and royalty income in North Dakota alone,” said Sandstrom.

“North Dakota already has some of the most comprehensive regulations addressing flaring in the nation. Over the past two years, North Dakota has adopted a series of strict gas capture targets. At the same time, the industry has voluntarily made huge strides in natural gas capture by investing more than $13 billion in natural gas infrastructure since 2006. As a result, flaring has declined even as natural gas production increased.

“This progress has been despite federal regulations, which is often responsible for delays preventing industry from building infrastructure needed to capture more gas. BLM’s staff, time and resources are already overtaxed. Implementing rules and regulations that are already covered by state or other federal agencies is unnecessary and will only further burden employees and dilute their ability to perform their duties. BLM and other federal agencies could make a larger, more immediate impact on reducing flaring by instead fixing permitting, infrastructure and pipeline delays.”

About the North Dakota Petroleum Council
Since 1952, the Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 500 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. For more information, go to www.ndoil.org.

Media Contact:
Tessa Sandstrom, Communications Manager  | ND Petroleum Council
701.223.6380, tsandstrom@ndoil.org

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“Doing it Right in the Bakken” & Beyond!  Mailed Nationwide.

BOBJ Publisher, Mary Edwards, got the opportunity to speak via SKYPE with Mark LaCour, Oil & Gas Sales Expert… about what’s happening for 2016, the publication’s “Industry niche” and so much more…. check it out! A great interview.

About: In his career Mark has sold over $205 million to the oil & gas industry and has had over 2200 meetings with almost every oil & gas company that you can name. He’s done business in the North Sea, the Gulf of Mexico, the UK, Middle East, Mexico, Canada, Norway, Scotland, Brazil and in the good ol’ US of A. He is the Director of Public Relations for the American Petroleum Institute (the API) Houston chapter, the largest group representing the oil & gas industry to congress. And he has a well-earned reputation as an industry “insider” and independent 3rd party market researcher. He is an author, sits on several oil & gas boards, has one of the top oil & gas presences in social media and when he not volunteering his time teaching STEM’s at local schools he helps other companies sell their products and services to oil and gas companies at modalpoint.com.

 

Will falling shale oil production lead to a reduction in crude-oil prices

By: MyraP. Saefong, Markets/commodities reporter

U.S. Energy Information Administration

Key U.S. tight oil and shale gas regions.

Oil production from the Bakken and Eagle Ford shale plays in the U.S. has been falling since March, but traders shouldn’t be quick to assume that will translate into lower supplies and higher prices.

Total oil output from seven major U.S. shale regions is expected to fall by 118,000 barrels a day to about 4.95 million barrels a day in December, according to the Energy Information Administration’s monthly Drilling Productivity Report released Monday. The data show that production from the Bakken and Eagle Ford shale regions are both likely to show declines next month, which would mark 10 months in a row.

Read: Discontent with OPEC spills into the open

“Bakken oil producers are still going after the low hanging fruit and leaving the high ones until prices go back up,” said Bob van der Valk, senior editor of the Bakken Oil Business Journal

Indeed, analysts have been quick to attribute the declines to low oil prices, with West Texas Intermediate crude futures CLZ5, -2.58%  down more than 17% year to date—and some have said that once a trend of production declines forms, higher oil prices will follow.

“There is no evidence at current prices that rig drilling activity will recover any time this year, so we can expect ever lower production every month well into 2016,” said James Williams, energy economist at WTRG Ecomomics.

He expects December production in the shale plays to be down 550,000 barrels a day from the peak seen in April.

But a closer look shows that production from the Permian Basin, which is located in West Texas and southeastern New Mexico, is forecast to climb by 11,000 barrels a day to roughly 2.02 million barrels a day next month. Output from that shale play has been climbing all year.

U.S. Energy Information Administration

“Right now, the Permian looks like the most profitable play,” said Michael Lynch, president of Strategic Energy & Economic Research (SEER).

That is due in part to location, he said. The Eagle Ford shale play is in South Texas, but Bakken Shale is located in eastern Montana and Western North Dakota as well as parts of Canada.

“You have to bring workers from outside North Dakota and so salaries for everything, even hamburger flippers, is elevated,” Lynch said. “Much less so in Texas.”

‘Quite possibly, the redeployment of money, rigs and personnel to the Southwest will mean that even low drilling activity allows shale-oil production to expand.’ ~ Michael Lynch, SEER

So, “quite possibly, the redeployment of money, rigs and personnel to the Southwest will mean that even low drilling activity allows shale-oil production to expand,” he said.

Williams, however, pointed out that the EIA report shows that the number of new oil barrels we can expect per rig showed no improvement in the Eagle Ford and Bakken, and the increase in the Permian was “minimal.”

“Previously, the barrels per rig often showed substantial gains as drillers became more efficient and focused drilling to the sweet spots,” said Williams. “We cannot expect efficiency gains at the same level that we experienced over the last year.”

Still, Lynch noted three key reasons why oil prices won’t climb soon: higher shale output, the return of Iran’s oil to the global market as sanctions are lifted following its nuclear agreement with western powers, and production increases elsewhere in the world.

The combination of those factors will mean there is “no room for prices to rise,” he said.

Retrieved 11-11-15 from MarketWatch.

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Washington, D.C. – Kari Cutting, vice president of the North Dakota Petroleum Council (NDPC) will appear before the U.S. House Committee on Agriculture tomorrow, Wednesday, July 8, to urge lawmakers to lift the ban on exporting crude oil and to highlight the positive economic impacts oil and gas development has had on rural communities, especially in North Dakota.

“In 2006, horizontal drilling technology unlocked the Bakken, resulting in a surge of oil and gas production, making North Dakota equivalent to the nineteenth largest oil producing country,” says Cutting. “With development came a rural economic renaissance for our state. Once shrinking rural communities are now growing, as new people move to the state and others return home to be closer to family. Oil development has helped supplement incomes for many local farmers and ranchers who once worried about holding on to the family farm. A new diesel refinery that recently began operating and proposed fertilizer plants and other value-added projects will help further lower input costs for ag producers further helping rural growth.”

“But this rural renaissance is being threatened by foreign entities not always friendly to the United States and by restrictions imposed on the sale of oil abroad. The U.S. government should lift the ban on crude oil exports and allow oil produced in places like North Dakota to reach global markets. Lifting the ban on crude oil exports would immediately restore our competitiveness and revive the renaissance in rural America.  Not only would rural America prosper, but all U.S. citizens would benefit from lifting the ban.”

The hearing is scheduled for 10 a.m. Eastern time in the Longworth House Office Building. The hearing may be viewed live at http://agriculture.house.gov/hearing/full-committee-agriculture-public-hearing-energy-and-rural-economy-economic-impact-exporting#. Cutting’s prepared testimony for the hearing is attached.

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Since 1952, the Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 525 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. For more information, go to www.ndoil.org.

Media Contact:
Tessa Sandstrom
Communications Manager
ND Petroleum Council
701.223.6380
tsandstrom@ndoil.org

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From Alex Epstein – CENTER for INDUSTRIAL PROGRESS
On Earth Day, I’m asking my friends and fans to join me in celebrating fossil fuels—coal, oil, and natural gas—by watching and sharing “Why You Should Love Fossil Fuels”, a video I helped create with Dennis Prager and his team at Prager University. The five minute “course” has already drawn over 130,000 views since it was posted yesterday. (In comparison, my most-viewed video before this has 22,000.) Please share far and wide, for it’s time we stop thinking about how to save the planet from human beings, and instead resume thinking about how to improve the planet for human beings. — Alex

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INTRODUCTION by Bob van der Valk, Senior Editor  |  Bakken Oil Business Journal

“In October 2014 crude oil barrels went down 4M barrels/day from 1,186,228 to 1,182,174 barrels/day.  The drilling rig count dropped 2 from September to October, an additional 3 from October to November, and has since fallen 5 more from November to today. The number of well completions decreased from 193(final) in September to 134(preliminary) in October. Three significant forces are driving the slow-down: oil price, flaring reduction, and oil conditioning.”

NDIC Department of Mineral Resources Director’s Cut Newsletter
December 13, 2014 – Lynn Helms

Crude Oil production:
Sep Oil 35,586,832 barrels = 1,186,228 barrels/day
Oct Oil 36,647,393 barrels = 1,182,174 barrels/day (preliminary)
1,118,010 barrels per day or 95% from Bakken and Three Forks
64,164 barrels per day or 5% from legacy conventional pools

Natural Gas Production:
Sep Gas 42,400,766 MCF = 1,413,359 MCF/day
Oct Gas 44,317,381 MCF = 1,429,593 MCF/day (preliminary)(NEW all-time high)
Sep Producing Wells = 11,758
Oct Producing Wells = 11,892 (preliminary)(NEW all-time high)
8,406 wells or 71% are now unconventional Bakken – Three forks wells
3,486 wells or 29% produce from legacy conventional pools

Permits issued:
Sep Permitting: 261 drilling and 2 seismic
Oct Permitting: 328 drilling and 1 seismic
Nov Permitting: 235 drilling and 1 seismic (all time high was 370 in 10/2012)

Crude oil pricing:
Sep Sweet Crude Price = $74.85/barrel
Oct Sweet Crude Price = $68.94/barrel
Nov Sweet Crude Price = $60.61/barrel
Today Sweet Crude Price = $41.75/barrel (lowest since March 2009) (all-time high was $136.29 7/3/2008)

Rig Count:
Sep rig count 193
Oct rig count 191
Nov rig count 188
Today’s rig count is 183 (all-time high was 218 on 5/29/2012)
The statewide rig count is down 16% from the high and in the five most active counties rig count is down as follows:
Divide -69% (high was 3/2013)
Dunn -26% (high was 6/2012)
McKenzie -15% (high was 1/2014)
Mountrail -20% (high was 6/2011)
Williams -16% (high was 10/2014)

Comments:
The drilling rig count dropped 2 from September to October, an additional 3 from October to November, and has since fallen 5 more from November to today. The number of well completions decreased from 193(final) in September to 134(preliminary) in October. Three significant forces are driving the slow-down: oil price, flaring reduction, and oil conditioning. Several operators have reported postponing completion work to achieve the NDIC gas capture goals. There were no major precipitation events, but there were 9 days with wind speeds in excess of 35 mph (too high for completion work).

Over 95% of drilling still targets the Bakken and Three Forks formations.

The drillers outpaced completion crews in October. At the end of October there were about 650 wells waiting on completion services, an increase of 40.

Crude oil take away capacity is expected to remain adequate as long as rail deliveries to coastal refineries keep growing.

Rig count in the Williston Basin is set to fall rapidly during the first quarter of 2015. Utilization rate for rigs capable of 20,000+ feet is currently about 90%, and for shallow well rigs (7,000 feet or less) about 60%.

Drilling permit activity peaked in October as operators worked on their summer programs, planned locations for next winter, and adjusted capital budgets.

The number of rigs actively drilling on federal surface in the Dakota Prairie Grasslands is down from 6 to 3.

Activity on the Fort Berthold Reservation is as follows:
28 drilling rigs (11 on fee lands and 17 on trust lands)
386,679 barrels of oil per day (149,547 from trust lands & 237,131 from fee lands)
1,371 active wells (1,044 on trust lands & 327 on fee lands)
172 wells waiting on completion
346 approved drilling permits (306 on trust lands & 40 on fee lands)
1,997 additional potential future wells (1,224 on trust lands & 773 on fee lands)

Seismic activity is slowing down with 5 surveys active/recording, 1 remediating, 0 suspended, and 1 permitted. There are now 3 buried arrays in North Dakota for monitoring and optimizing hydraulic fracturing.

North Dakota leasing activity is very low, consisting mostly of renewals and top leases in the Bakken – Three Forks area.

US natural gas storage is now 10% below the five-year average indicating slowly increasing prices in the future. North Dakota shallow gas exploration could be economic at future gas prices. As you are aware there is some exploration underway in Emmons County. The first well will be on confidential status until 12/23/14.

The price of natural gas delivered to Northern Border at Watford City is down $0.76 to $2.98/MCF. This results in a current oil to gas price ratio of 14 to 1. The percentage of gas flared dropped to 22%. The Tioga gas plant remained below 70% of full capacity due to delayed expansion of gas gathering from south of Lake Sakakawea.
capture percentage was 78% with the daily volume of gas flared from Sep to Oct decreasing 32.8 MMCFD. The historical high flared percent was 36% in 09/2011.

Gas capture statistics are as follows:
Statewide 78%
Statewide Bakken 78%
Non-FBIR Bakken 79%
FBIR Bakken 75%
October 2014 capture target =74%
January 2015 capture target =77%

BLM revised final regulations for hydraulic fracturing on federal and Indian lands were sent to the White House Office of Management and Budget for interagency review on Oct 26 and Department of Interior continues to be committed to their goal of issuing a final rule by the end of 2014. After initial publication in 2012, BLM received over 177,000 comments and withdrew the rule. A new proposed rule was published in the federal register on 5/24/2013 and the comment period ended 8/23/2013. This time BLM received over 1.2 million comments. Thanks to all who provided comments in support of a “states first” policy.
BLM has started the process of new venting and flaring regulations with input sessions in Denver, Albuquerque, Dickinson, and Washington, DC.

EPA published an advanced notice of proposed rule-making to seek comment on the information that should be reported or disclosed for hydraulic fracturing chemical substances and mixtures and the mechanism for obtaining this information. The proposed rule-making is in response to a petition from Earthjustice and 114 other groups who are opposed to the use of the GWPC-IOGCC FracFocus website process of chemical disclosure and any type of trade secret protection for hydraulic fracturing fluid mixtures. These groups are requesting EPA regulation of chemical disclosure under the federal Toxic Substances Control Act.

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