For reasons of efficiency the Department of State is encouraging electronic submittal of comments through the federal government’s eRulemaking Portal. To submit comments electronically, visit this link: http://www.regulations.gov/#!documentDetail;D=DOS-2014-0003-0001

This is a 30-day public comment period and the deadline date is Friday, March 7th at 11:59 p.m. (EST).

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Jobs:

• During construction, the report suggests that the project would support about 42,000 direct/indirect jobs, approximately $2 billion of earnings throughout the United States, and contribute about $3.4 billion to US GDP.

GHG:

• The Final SEIS finds if this project goes ahead, we will see fewer spills, fewer injuries, and fewer fatalities when compared to the alternative of transporting crude oil by rail. On top of that, this project will result in lower GHG emissions; the Final SEIS finds that under any of the alternative scenarios where the project is denied, you will see greater GHG emissions from the movement of this oil.
  • The updated analysis in the Final SEIS concludes that the proposed Project is unlikely to significantly affect the rate of extraction in the oil sands.

• The Final SEIS states that under any of the scenarios where the project is denied, GHG emissions from the movement of this oil would actually increase – 28 per cent more GHGs if all the oil is railed to the Gulf Coast, 42 per cent higher GHGs if a combination of rail and new pipelines is used.

Energy Security:

• The Keystone XL Pipeline will increase energy security, and with the growth of domestic production in the U.S. and Canada, connecting the third largest resource of oil in the world to the largest refining center in the world can do nothing but increase energy security.

• As the Final SEIS points out, the demand persists for imported heavy crude oil by U.S. refineries optimized to process heavy crude. As Canadian production of bitumen from the oil sands continues to grow, the vast majority is currently exported to the United States to be processed by U.S. refineries.
  • The U.S. is a net importer of crude oil. The International Energy Agency and US Energy Information Administration (EIA) have both forecast that the U.S. will still need to import oil to meet its domestic demand for decades, despite growing oil production in the U.S. Today, the United States consumes 15 million barrels of oil per day and imports eight million barrels. The EIA forecast in 2012 stated that the U.S. will continue to import 7.5 million barrels of oil per day into 2035 to meet its needs.

Safety:

• As a Company, we are committed to doing the very best and we will continue to operate Keystone XL, once complete, in the safest and most efficient way that we can. It’s our commitment to the public, it’s our commitment to our customers, and it’s a commitment we take very seriously.
  • As stated in the Final SEIS, the U.S. Department of State, in consultation with PHMSA, has determined that incorporation of the 59 conditions would result in a Project that would have a degree of safety over any other typically constructed domestic oil pipeline system under current code.

Export:

• Keystone XL is not an export pipeline. The U.S. consumes 15 million barrels of oil a day and imports seven to eight million barrels. Both the U.S. Energy Information Administration and the International Energy Agency predict America will continue to import millions of barrels of oil each day until at least 2040.

• So what we are really talking about is a choice – a choice made all that more relevant with the recent unrest in Syria and Egypt – do Americans want their crude oil from a friendly partner in Canada or will they continue to rely on unstable regions such as Venezuela and the Middle East? Based on consistent polls since 2011, the findings prove that the majority of Americans continue to support our project.

By: Chris Sutton
Picture taken by Kyle Jerome. Derrickhand with Sun Well Service in North Dakota

The nature of the energy industry can bring frequent changes resulting in professionals reentering the work seeking world.  Some of these changes are beneficial for oil and gas companies.  For example, acquisitions and divestitures (A&D’s) are a part of the asset allocation strategy for oil and gas companies and are constantly evaluated on both a short and long-term basis.

Operators look for assets where geological knowledge of formations is available, and where technical expertise in specific plays can be leveraged for higher margin recovery. Companies divest assets to raise funding for existing asset development or to acquire new assets more closely aligned with long-term strategic goals.

In a survey conducted by Ernst & Young, when Oil & Gas companies were asked to disclose the main causes for an acquisition, the majority of the respondents listed their top two reasons were to gain shares in existing markets and gain shares in new markets.

Although A&D’s are typically beneficial, they can still impact the workforce on either side of the transaction.  Other workforce changes are less beneficial – but still somewhat common in the volatile oil industry.  For example, if an exploration and production company loses a major project, they will likely have to downsize their workforce by laying off the contractors hired for that project.

Of course, downsizing also occurs for other reasons, such as shifting resources internally and changing company goals.  Following are some common scenarios for professionals during company changes, as well as tips for preparing to reenter the workforce.

What do workforce changes mean for oil and gas professionals?

When a company divests an asset, several things can happen to a professional’s job position.  Often, the professional will be asked to move with the assets to the acquiring company.  Moving to the new company sometimes means relocating, so some professionals will turn down the offer and start by searching for a new job in their area.  The divesting company usually encourages current employees to go to the new company if they have the option, because they will be laid off if they stay.  Higher-level employees may have the option to accept a retirement package instead of relocating.

In other situations, some professionals might be told the asset is being sold and they’re not being offered a new position at the acquiring company.  These professionals are often laid off because they are no longer being used on a project.  This scenario is similar to E&P companies losing a major project –some contractors may be asked to join another project or assignment, but usually there isn’t enough work available to avoid downsizing.

What should oil and gas professionals do?

Because the scenarios above are commonplace in the oil and gas industry, professionals in this field should always be ready with a plan of action.  Luckily, in the case of A&D’s, professionals are usually given several months of notice before a company divests the asset  at which they work and they will know shortly afterwards whether or not they will get an offer from the acquiring company.

Unfortunately, many people don’t start looking for a job until after transitioning out of their role.  And in the case of Exploration & Production (E&P) oil companies losing a project, or other downsizing scenarios, professionals may even have less time to ready for a change in employment.  This causes laid off and retired employees to enter the job searching market at once including those who do not accept an offer from the acquiring company as well as professionals from the acquiring company who quit.  Competition for jobs will be fierce and offered pay may be lower.  Our first tip is to begin looking for a job as soon as you know you’ll need one.

Our second tip is to check location.  Location can be a deal breaker for professionals who are offered a position at the acquiring company.  If you get an offer from the acquiring company, find out if they require relocation.  Do some research into the area and decide early whether or not you are willing to move and find affordable housing.

Thirdly, professionals with a lot of experience should consider taking the exit offer and reentering the workforce as a highly compensated, knowledge-based consultant.  Taking a retirement offer doesn’t necessarily mean the end of your career.

Lastly, it’s important to continuously network with industry professionals and get to know about projects in your area. This way you will be able to forge meaningful relationships with contacts that can get you in front of hiring managers.  Information gained from networking can lead to an easier job transition during a company downsizing or similar situations.

Preparation makes for an easier transition.

Workforce changes are inevitable in the oil and gas industry, and most professionals who work on oil production will switch companies at least once during their career.  Preparing for this transition can make finding a new job easier and might even result in a higher paycheck.  You can prepare for any possible layoff by learning about companies involved in deals affecting you and by networking with industry professionals, who may be willing to help you quickly transition to a new project.

Good luck and good hunting.

Chris Sutton is a Partner at Clover Global Solutions, LP.  He can be contacted at: Chris.S@clovergs.com

By:  Bob van der Valk

Since October 16, 2013 West Texas Intermediate (WTI) crude oil decreased in price from $102.49 to $94.11 a barrel, for an 8.2 percent loss, with more to come on the horizon.  Good news for consumers with oil companies having enough on hand in cash reserves to make it through yet another pricing adjustment as happened in July 2008.

The question on the Oil Producing Export Countries (OPEC) controlling the world’s energy market has been resolved.  It has been exactly 40 years since Saudi Arabia and other members of OPEC imposed an embargo on exports of crude oil.  Since 1973 US consumers have seen gasoline prices go from $.369 to almost $5 per gallon.

Crude oil has rallied back up over to $100 a barrel since the early days of 2009 when West Texas Intermediate crude oil bottomed out at $32 a barrel.  Since then the price has been influenced by wars and rumors of wars as well as being threatened by domestic terrorist attacks such as the Boston Marathon bombing earlier this year.

More downside should be expected for crude oil and the dive is just beginning now. Major technical support lies at $60-$62, and oil may not bottom until it falls to as low as $40

The weekly Department of Energy inventory report shows a rise for seven straight weeks.  Last week, they rose 5.2 million barrels. Over the past four weeks, inventories have risen by 22 million barrels, the second largest increase since February 2009.

DOE Statistics for the Week Ending November 1, 2013:

Table covers crude oil and principal products.  Other products, including residual fuel oil and “other oils” are not shown, and changes in the stocks of these products are reflected in “Total Petroleum Products”. Statistics Source: Energy Information Administration “Weekly Petroleum Status Report” available at www.eia.doe.gov

With domestic oil production on the rise, the good news is North America will become energy secure by the end of 2014. OPEC has slowly been losing control on pricing the world’s crude oil requirements.

Bob van der Valk lives in Terry, Montana and is the Senior Editor of the Bakken Oil Business Journal as well as Fuel-pricing Analyst for US petroleum distributors and retail station owners. He can be contacted at:  editor@bakkenoilbiz.com

Industry representatives will work to find solutions to infrastructure needs

Bismarck, N.D. – The North Dakota Petroleum Council (NDPC) members have formed a task force to spearhead the industry’s efforts to significantly reduce natural gas flaring in the state’s Bakken oilfields.

“We recognize that natural gas is an efficient, clean and valuable resource, and that’s why the industry has invested more than $6 billion in new pipelines, processing plants and other infrastructure to move it from the wellhead to the marketplace,” said Terry Kovacevich, NDPC chairman and regional vice president for Marathon Oil. “This is a significant investment, but we are committed to making North Dakota the model of a modern, efficient and technology-driven oilfield.”

Since 2007, when the Bakken was confirmed to be a prolific and world-class resource, gas plant capacity has increased by 340 percent from 227 million cubic feet per day to more than 1 billion cubic feet per day. Despite this significant growth, production continues to outpace capacity due partly to challenges in building appropriate infrastructure and partly because it was not until recently that experts began to fully comprehend the volume and composition of natural gas trapped in the Bakken.

“We have to remember that the Bakken is still a very young play, and this is just one factor in why production has outpaced our ability to build the infrastructure needed. Furthermore, the Bakken is unlike any other play in the world and requires solutions specifically tailored to its geology, climate, landscape and resources,” said Kovacevich.

Members of the task force will pool the knowledge and experience of companies operating in the Bakken and identify solutions to better optimize the resource at the wellhead and increase and improve existing infrastructure to transport gas for processing elsewhere. The group will also focus on educating the public and working collaboratively across stakeholder groups, including government agencies, the Three Affiliated Tribes, researchers, landowners and key industry players.

The Flaring Task Force will address the North Dakota Industry Commission (NDIC) at 1:15 p.m. on Oct. 22, 2013, and will present a report to the NDIC later this year with recommendations for a collaborative effort to reduce flaring.

“This is a very complex issue without any single simple solution,” said John Paganis, commercial director for Murex Petroleum and co-chair for the Task Force. “Our task force will offer balanced, effective solutions for policy makers and regulators to ensure we keep oil development on pace while making the investments in infrastructure and new technologies to capture more of our natural gas.”

“The member companies of the NDPC want to responsibly develop the natural resources in North Dakota and America.  We also want to optimize the development of our oil and natural gas resources in North Dakota, but this will take significant investments of time and money and will require collaborative efforts between the industry, landowners, government agencies and a number of other key stakeholders,” said Kovacevich. “North Dakotans have a long history of sitting down and working together to find solutions that will meet the needs of all. We are confident that with time, all of the key stakeholders can work together to reach our goals of reducing flaring.”

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.

Contact:  Tessa Sandstrom, Communications Manager, North Dakota Petroleum Council
– ### –

North Dakota has pumped up its crude production in August to 914,617 b/d, about 1.1% higher than the revised July output of 904,927 b/d, according to the North Dakota Industrial Commission.

The preliminary July crude output published last month was at 871,459 b/d.

June output was 821,596 b/d, and May production was at 811,262 b/d.

The Bakken crude output makes up more than 90% of North Dakota’s total oil production.

The number of producing wells in August rose to 9,452 from 9,324 in July and 9,096 in June.

North Dakota is the second-largest oil producer in the U.S., with Texas holding on to the No. 1 spot and Alaska third. Bakken crude is playing a growing role in the U.S. coastal refineries’ crude slate as pipelines, rail and ships offer delivery solutions to the once-landlocked crude output.

–Edgar Ang, eang@opisnet.com, www.opisnet.com
Originally published by Oil Price Information Service (OPIS), Gaithersburg, MD. Additional reproduction is strictly prohibited. For more information on other news, contact Scott Berhang, +1 301.287.2332.

The recent “discovery” of the giant Bakken oil field, described as the “largest continuous oil accumulation ever assessed by the US Geological Survey,” bodes fundamental changes for western North Dakota and eastern Montana. Lots of people are coming! Western North Dakota now faces a daunting challenge: building infrastructure that supports a new way of life and culture.

Just ask Don Nickell, president and COO of Nakota Development, LLC. The morning Nakota opened their two Value Place extended-stay hotels in Williston in September 2012, “we had people sitting in their cars in the parking lot, waiting for us to open the doors,” said Nickell.

Since then, Williston Value Place hotels have achieved enviable occupancy rates (>95 percent in August). They have also exceeded their competitors’ occupancy % for the past four months, which is a significant achievement given they have 248 rooms versus their competitor’s properties which average only 90-100 rooms.

Nickell is confident more customers are waiting. He’s in good company. Lynn Helms, director of North Dakota’s Department of Mineral Resources, told an audience at the 2012 North Dakota Association of Oil and Gas Producing Counties that western North Dakota can expect about 250,000 additional people settling west of Highway 83 to help produce oil and natural gas.

It’s more than just about oil and gas, however.  Housing and lodging are of particular concern. Mike Anderson, director of the North Dakota Housing Finance Agency expects population growth to continue in the state for at least the next 15 to 20 years.

While many thousands of men are today living in temporary man camps, a gaping supply hole remains for those seeking lodging for the many two-to-four-month assignments typical in the Bakken and other shale oil regions.  There are thousands of geologists, landsmen, technicians, engineers, field and construction workers and service personnel in need of housing and lodging.

Nakota Development is already two steps ahead in the game; they acquired the Value Place franchise territory rights for North Dakota, Montana, and Wyoming.  They promptly built two hotels in Williston and recently completed a third in July in Dickinson.  Nakota has also purchased, or acquired options on additional land for future construction. Their construction of another Value Place recently began in Watford City and is expected to open in spring of 2014.

The master plan, according to Nakota CEO Art Cahoon, is to invest an estimated $200 million over the next five years in the development of twenty new extended stay hotels in the Bakken and other developing US shale oil regions. Nakota’s willingness to take the early equity risks and invest millions of their own money to build their first two hotels and complete them on schedule brought Nakota a rare commodity in the Bakken: CREDIBILITY.

Even today, with credit availability increasing, Nakota continues to invest significant equity in each of its hotels.  Despite the Bakken’s significant construction and operating challenges, including the scarcity of materials and high labor costs, Nakota has established itself as the gold standard developer and operator in the Bakken. “Current investors, which include all of Nakota’s senior management team, are enjoying very attractive returns on their investment,” said Cahoon.

Click to see Value Place in the Oct/Nov Issue of the Bakken Oil Business Journal.

Value Place is the largest economy extended stay franchise in America. The Value Place Brand comes from the management team that created and developed lodging brands such as Residence Inn (now owned by Marriott), Summerfield Suites (Hyatt) and Candlewood Suites (Intercontinental). In 2011, Value Place was recognized again as a Top 50 Franchise by the Franchise Business Review’s 2011 Franchisee Satisfaction Awards.  Value Place was also recognized in USA Today in 2010 as a recession-proof business.

Written by Janelle Holden

In December 2012, 5.19 Sales & Marketing connected communities in Eastern Montana with business leaders looking to launch a first-of-its-kind housing project for oil and gas workers in the Bakken region.

With the guidance of the Eastern Montana Impact Coalition (EMIC) and the commitment of IAP Worldwide Services (IAP), the Eagles Landing Housing Community Project was born.

Just nine months later Sidney, Montana is now home to phase one of Eagles Landing, a state-of-the-art housing facility that includes 339 beds, private rooms, chef-prepared meals, free daily breakfast, a commercial grade laundry facility, housekeeping services, fitness center, 24-hour security and ample parking.

In this interview, Troy Selland of 5.19 Sales & Marketing shares lessons learned from the project and the secret to creating successful business ventures in the Bakken region.

Janelle: “So Troy, how did this project get started?”
Last December, I flew into Wolf Point, Montana with senior leaders from IAP to meet with EMIC executives. With over 60 years of expertise in remote site operations, IAP was looking for a community in the Bakken region in which to build and operate a multi-million dollar workforce housing community.

We toured six sites across Montana and North Dakota. All of them were potentially a good fit for a large-scale project, but the company was impressed by the opportunities that existed in Montana and how the EMIC represented the region.

Janelle: “Who is IAP Worldwide Services and why were they interested in building?”
IAP specializes in providing temporary housing solutions in remote locations around the world. It’s a company that has the capability to build specialized housing solutions in virtually any environment around the world. In the past, they have worked primarily with government agencies and were looking to expand into the private sector.

Janelle: “I’ve heard that Montana has had trouble in the past winning contracts like these. Is that true and if so, what made the difference here?
Montana has historically lost out on similar opportunities to other oil states such as North Dakota and Texas and the field was open to IAP to build anywhere in the world.

In early 2012, EMIC formed to address community challenges in the Bakken region and they welcomed IAP into the community. The coalition wanted to help solve a regional housing shortage that was persistent, challenging and frustrating.

When they met, the coalition members spoke with one clear voice about their visions, challenges and hopes for a region that is roughly the size of the state of New York.  This made the difference with IAP as it was clear that an opportunity truly did exist for them in Montana.

Janelle: This project was built in record time and it seems like everyone in the community has been happy with the result. How did that happen?
Good communication and great partners. The coalition worked with the company to ensure that every phase of design, planning and construction would address and resolve the community’s concerns and fit with Montana culture.

As a result, Eagles Landing has become home to more than just oil and gas industry personnel. Current and future residents include county employees, policemen, electricians, and even families.

Janelle: What have you learned about doing business from this project?
When I look at the history of this project, I’m proud of Montana for finding a creative way to work with businesses and solve community challenges in the Bakken. The real secret to the success of the project was combining the visionaries of IAP with the local members of the EMIC. Including community input via the coalition and building local support is the secret for businesses looking for long-term success in Montana’s Bakken region.

Troy Selland is the Founder of 5.19 Sales & Marketing, based in Livingston, Montana. He has over fifteen years of leadership and consulting experience in the commercial airline, ground logistics, and oil and gas sectors. 5.19 Sales and Marketing helps firms of vision find their place, and ultimate success, in today’s unconventional energy industry.

For More Information: 5.19 Sales & Marketing: www.five-nineteen.com
Eagles Landing Project: www.iapeagleslanding.com
EMIC: www.gndc.org/EMIC%20page.htm

By Mark Barnes, Des-Case Corporation
Based on a Customer Testimonial by Jim Pezoldt, Lubrication Engineers, Inc.

From dozers to graders and loaders to haul trucks, diesel engines are everywhere. For companies that rely on diesel power to make their living, there’s no greater emphasis than diesel engine reliability. But when it comes to diesel engines, they also have some of the shortest life expectancies.

Compared to fixed equipment, where mean-time-between-rebuilds is measured in years, most diesel engine original equipment manufacturers (OEMs) recommend an engine overhaul or rebuild every 12,000 to 15,000 hours. Even with oil analysis, which allows the rebuild interval to be optimized, 20,000 to 25,000 hours is about as good as it gets for engine life in off-highway applications.

So why is it that an engine has such a short life expectancy? The issue is less about maintenance than it is about the operating conditions and environment of a typical engine. With temperatures close to 200 degrees F, severe duty and shock loads, internal contaminants like soot, acids and wear debris, and the possibility of fuel or glycol leaks, engines have a tough life.

But perhaps the biggest engine killer is external contamination in the form of dust and dirt sucked into the engine through the air intake each minute of operation. Particle contamination can be lethal for engines –even microscopic particles no bigger than a red blood cell can result in a significant reduction in an engine’s life expectancy. In fact, studies by General Motors, Cummins Inc., and other engine OEMs have proven that particles in the 0–to–5 and 5–to–10 micron size ranges are three times more likely to cause wear in critical piston rings and bearings than larger particles (Figure 1). To put that into context, particles that are less than a tenth of the diameter of a human hair are enough to reduce an engine’s life expectancy by one half or more! These particles, which are often called silt-sized particles, are so small that a large percentage of those ingested into the engine air intake manifold pass straight through the air filter, which, by comparison, is really only equipped to take out rocks and boulders.

Figure 1: Relative wear rates for engine rings and bearings versus particle size distribution (Ref: Cummins, Inc.).

Armed with these facts–which are widely known by OEMs, lubrication engineers and filter manufacturers alike–why is it that most full-flow engine oil filters are at best 70 percent efficient at removing 10 micron particles and are effectively useless at removing silt-sized particles? The answer is largely a question of flow. With any filter, there is always a balance between flow rate and filter efficiency. With most filters, as the micron rating and filter efficiency improves, the flow rate drops off significantly. This should be fairly obvious: the smaller pore sizes necessary to trap smaller particles create a greater barrier to oil flow. But the problem is exacerbated by simple physics: For most mechanical filters, halving the micron rating, say from 10 to 5 microns, would require a fourfold increase in filter surface area to maintain the same flow rate. Because of this and due in part to the physical limitations in the size of an engine filter, it is almost impossible for filter manufacturers to reduce the micronrating to be more efficient at removing silt-sized particles while maintaining adequate flow rates.

So that’s it, right? We’re stuck with accepting the fact that the most harmful particles to an engine are going to be present in an engine with no hope of removing them? Wrong! By thinking outside the box a little, silt particles can be removed from engines effectively, with a dramatic impact on engine life. To illustrate the effect, consider the following example:

Figure 2: Projected engine life, with oil analysis.

Case Study
A maintenance team at a 25,000-acre surface coal mining operation in Montana was seeking to improve profitability by lowering direct maintenance costs and extending the operational life of the engines. They were well aware that the service life of their engines was being cut short by particles that the OEM fullflow filtration was not designed to remove. They contacted Jim Pezoldt from Lubrication Engineers to help them improve their engine life. Starting with their CAT 992G bucket loaders equipped with CAT 3508B engines, the mine developed an approach to reduce silt-sized particles from the engines. Initial oil analysis data on one 992G in the mine’s fleet indicated a particle count of 22/21/18, with copper and iron levels at 118ppm and 53ppm respectively, levels commonly found across the rest of the fleet. Maintenance personnel also indicated that a typical engine “top end” overhaul interval was approximately every 12,000 hours, and when engines were torn down, they were typically very dirty inside with evidence of scuffing on the cylinders. The team set about lowering in-service contamination levels through an aggressive contamination control strategy, as well as switching to an enhanced diesel engine oil – LE’s Monolec Ultra® Engine Oil (8800).

Figure 3: Schematic illustration of engine oil side stream filtration.

Exactly 931 hours after improving their oil filtration, an oil analysis was conducted to evaluate if any improvements had been made in oil cleanliness. To their surprise, ISO cleanliness levels went from 22/21/18 (c) to 17/16/13 (c), soot levels were maintained at or below 0.1% volume and iron levels dropped from 53ppm to 7ppm. Based on this and the standard life-extension tables (Figure 2), the mine has projected a four-fold life extension, resulting in a savings of $129K over five years, equivalent to a 216 percent return on their investment (Table 1). This is just one of many examples that demonstrate the effect of improving slit particles in engines.

Table 1: Oil analysis data and investment analysis for CAT 992G (3508B engine).

Bypass Filtration
So how did they do it? The answer is fairly straightforward as illustrated in Figure 3. Without changing the flow of oil within the engine, a small slipstream of oil is taken after the full-flow filter using a flow control valve. By regulating oil flow through the valve, only 10 percent of the total oil flow is removed at any given time, which is not high enough to cause any harm to the engine. This side stream of oil is passed at normal engine oil pressure through a depth media filter with an efficiency rating of 99.9 percent at 3 microns (β3(c)>1000). The oil is then returned to the sump. For safety, a relief valve is included to avoid over pressurization of the bypass filter during start-up.

Conclusion
Engine overhaul and rebuilds are a significant cost to diesel engine maintenance budgets. With few exceptions, significant improvement in engine life can be achieved by controlling silt-sized contaminants.

Note: Originally published in the December 2011 issue of Uptime magazine. Bypass Filtration Lubrication consultant Jim Pezoldt, MLT I & MLA II, has represented Lubrication Engineers, Inc. since 1992. His company, Pezoldt Petroleum Products, services portions of Montana and North Dakota and has significant experience working with mining and drilling operations. www.LElubricants.com

By: Bob van der Valk

Steve Unterseher of Smiley’s Energy Service was traveling from Williston, North Dakota back home to Fairview, Montana. He did not know his friend was on the train involved in am accident until after another co-worker told him when came upon the scene of the Amtrak train stalled on the track with major damage to the front portion of the diesel locomotive. About a half a mile further was a bulldozer lying on its side with its operator still trapped underneath. Rescuers were already on scene extracting the wounded man from the wreckage.

A construction company is rebuilding a section of ND Hwy 1804 between Trenton, ND and ND Hwy 58. It appears as though they may be building it into a four lane road. The road runs south of and parallel to 1804 until about 5 miles west of Trenton where the highway turns north then northeast and crosses the tracks. Apparently the bulldozer operator was attempting to cross the train tracks from the north side of the highway going toward the highway facing south. The tracks to the west curve around a hill so it is essentially a blind curve for the train engineer. No injuries were reported on the train by Amtrak officials; however, the train passengers were not allowed to get off the train pending the arrival of a replacement diesel engine.

The dozer operator was transported to Mercy Hospital in Williston, North Dakota by Life Flight helicopter, where he passed away.

(Photo) Damage to Amtrak diesel locomotive right after the accident – 7-30-13

The accident was caused by the Amtrak train coming around a blind corner and the engineer not seeing the bulldozer on the track ahead of him. Road 1804 is under construction and parallels the tracks between Trenton and Highway 58. No one on the train was hurt but passengers were not allowed to disembark to get rides with waiting friends. Amtrak waited for another diesel engine to arrive to take over for the damaged one.

A hole in the front of the diesel locomotive of the train was observed along with severe damage to the bulldozer, which landed on its side next the railroad track.

Dick Reed and his wife, who live in McMinnville, Oregon, were on the train while Amtraking to Little Rock, Arkansas via Chicago. Dick Reed stated that it got pretty hot inside the coach because of the lack of HEP*. After the night air started cooling off the train the crew opened doors to try to get an air circulation to the passengers.

*Head End Power is a system of electrical power distribution on a passenger train in which a power source in a central location on the train (usually a locomotive or a generator car) generates all the electricity for “hotel” power (non-traction, or non-motive power uses) needed by the train. Virtually all modern passenger trains have their electrical needs met in this fashion. The acronym HEP is its common usage.

(Photo) Temporary repairs made to damaged Amtrak diesel locomotive parked in Trenton, ND
Pictures by Steve Unterseher
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Bismarck, N.D. – The North Dakota Petroleum Council (NDPC) will host the Oil Can! Community Day on Monday, Sept. 16 during its Annual Meeting at the Alerus Center in Grand Forks. The Community Day will include two Bakken Basics Education Sessions, a barbecue, activities for kids, and access to the NDPC Members-Only Showcase.

“We are able to host educational sessions about the oil and gas industry in western North Dakota throughout the year through our Bakken Rocks CookFests and other events, but many residents in the eastern half of the state haven’t had the opportunity to attend these kinds of events,” said Tessa Sandstrom, NDPC communications manager. “By holding our Annual Meeting in Grand Forks, we are bringing the Bakken east and giving residents of the Red River Valley the chance to learn more about the Bakken and ask industry experts about oil and gas development in North Dakota.”

The Bakken Basics Education Sessions are scheduled for 2:30-4 p.m. and 4-5:30 p.m. and will include talks by Ron Ness, president of the NDPC; Lynn Helms, director for the North Dakota Department of Mineral Resources; and Kathy Neset, president of Neset Consulting Service. A community barbecue featuring smoked pulled pork, smoked sausage and BBQ chicken, courtesy of Halliburton, will follow the educational sessions and go until 7:30 p.m. NDPC member exhibits and activities for kids, including a face painter, balloon artist and bounce house and slide will be open from 3-7:30 p.m. Exhibitors include Grand Forks businesses, as well as leading oil and gas producers and service companies operating in the Bakken. A pumping unit, workover rig, wireline truck, crane and ONEOK’s Natural Gas Mobile Museum will also be on display.

The Oil Can! Community Day is free and open to the public. For more information, visit www.northdakotaoilcan.com/events/2013CommunityDay/.

The NDPC Annual Meeting will run from Monday, Sept. 16 to Wednesday, Sept. 18, and will feature a keynote address from legendary Notre Dame coach, Lou Holtz. An agenda and costs for attending the full meeting are available at https://annualmeeting.risprojects.org. Members of the media wishing to attend may contact Tessa Sandstrom at tsandstrom@ndoil.org or 701-557-7744.

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 420 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. Our members produced 98% of the 243 million barrels of oil produced in North Dakota last year. For more information, go to www.ndoil.org.