Lynn Helms Urges Lawmakers Over Proposed Regulations

Top North Dakota official urged lawmakers to reign in proposed clean air regulations.

Related: Methane Emissions Drop

Lynn Helms, the director of the N.D. Department of Mineral Resources, spoke to a U.S. House Energy and Commerce Subcommittee last week lending his voice to the growing opposition to the proposed regulations by the Environmental Protection Agency.

Helms and others claim that the states are making great strides in regulating oil and gas activity in their states and that the EPA has no right to such overreach. He testified that the new plan will hurt the region's oil and gas production. 

“(The EPA’s plan) will nullify the proven state regulatory program and thereby harm the State’s sovereign interest in planning and developing the use of oil and gas resources within its jurisdiction. The record keeping requirements of the proposed rule are far too voluminous for any kind of reasonable inspection and enforcement to be conducted. ”
— Lynn Helms

Last summer, President Obama revealed a plan designed to cut greenhouse gas emissions 40 – 45 percent by 2025. After almost a year, the EPA finalized the new rule in May setting tougher standards for methane leaks along the natural gas production line.

The new standards are stronger than those proposed last summer and look to reduce 520,000 short tons of methane in 2025 instead of 400,000 in the original proposal. This is equivalent of 11 million metric tons of carbon dioxide.

Read Helms' full testimony here

North Dakota's Taxable Sales Down 33%-Is it Time to Worry?

33% Drop in Taxable Sales for ND

33% Drop in Taxable Sales for ND

North Dakota's Tax Commissioner announces a 33 percent drop in taxable sales for the first quarter of 2016.

Related: North Dakota Revenue Drops

Ryan Rauschenberger, ND Tax Commissioner released the 2016 Q1 report that included data for the largest 50 cities in North Dakota. The report revealed that there was a 33% drop in taxable d blamed the prolonged downturn on drop in sales and purchases state-wide. 

“The first quarter decrease is a direct result of the continued downturn in the oil industry and low ag commodity prices,” stated Rauschenberger. “Fundamentally North Dakota is just returning to a pre-oil boom economy. First quarter 2016 is nearly 50 percent greater than the same timeframe in 2010.”
— https://www.nd.gov/tax/news/314/

Taxable sales and purchases are a key indicator of the economic activity in the North Dakota. This data has followed the pattern of decline that parallels the drop in low crude prices over the last 18 months. 

The report shows that 13 of the 15 state economic indicators dropped during the quarter with mining and oil extraction showing the biggest decline of $716 million. 12 of North Dakota's 53 counties saw any growth

Williston, in the heart of the Bakken, saw the biggest drop in taxable sales and purchases during the quarter of about $432 million, or 61 percent.

It's tough to get a clear read on the reality of North Dakota's post-boom economy as analysts and the media spin the data in a thousand different ways. One industry watchdog says that there really isn't reason to panic, because state revenues are up significantly from pre-oil boom levels. 

Read the full report at www.nd.gov

Bakken Applauds Recent Frack Decision

Federal Court: Frack Rules Unlawful

Federal Court: Frack Rules Unlawful

Bakken Shale operators and industry officials applaud the recent federal court ruling that declared the fracking rules unlawful.

Related:  New Fracking Rules for Public Lands

On Tuesday, U.S. District Judge Scott Skavdahl struck down the Obama administration’s attempt to regulate hydraulic fracturing on federal lands.

“Skaydahl said, “Congress has not delegated to the Department of Interior the authority to regulate hydraulic fracturing. The BLM’s effort to do so through the Tracking Rule is in excess of its statutory authority and contrary to law.”

After a four-year investigation and more than 1.5 million public comments, the Bureau of Land Management (BLM) issued new rules to regulate hydraulic oil and gas fracturing on public lands in March 2015. Industry groups quickly fired back and combined their challenges with state lawsuits to form a massive case that was heard in Judge Scott Skavdahl’s court in July.

The parties claimed the BLM exceeded their authority that new fracking rules aren’t necessary because the EPA has already granted authority to the states to monitor and protect underground water sources. Skavdahl ultimately ruled that permitting of oil and gas wells on federal land will proceed under current regulations for at least another month. Tuesday's ruling made that order final.

Oil industry officials and operators in North Dakota were among dozens who opposed the rules, arguing that the state. 

“North Dakota has adopted sensible fracking regulations that work, because Congress intended the states to regulate fracking,” Attorney General Wayne Stenehjem said in a news release. ”

 

Alison Ritter, spokeswoman for the Department of Mineral Resources confirmed that the majority of minerals developed in North Dakota are privately or state-owned. Since roughly 30% of Bakken oil development contains some percentage of federal minerals, the BLM rule would have had a major effect on the state’s oil development.

Read the full decision here

 

North Dakota Oil Output Plunges 50%

Bakken Output Loses 50%

Bakken Output Loses 50%

The North Dakota Department of Mineral Resources (DMR) reported last week that the state's oil output dropped more than 50% in April.

Related: Has the Bakken Peaked?

During the month of April, North Dakota pumped 1,041,007 barrels of oil per day (bpd), 70,414 bpd less than March, according to the North Dakota Department of Mineral Resources (DMR). 

Low crude prices and bad weather are being blamed on the record drop in production as producers are were forced to cut back the drilling and fracking of new wells.

“Roughly half of the calendar days of the month, the wind was 36 miles an hour or higher, sustained winds and no capability to frack wells,” Helms said. “This is an abnormally high production drop.”

Currently, There are only 28 drilling rigs in the state compared to 77 one year ago. Other important stats for North Dakota include:

  • 1,590 inactive wells during April (up from 67 in March) 
  • Zero drilling rigs operating in Williams County, home to Williston
  • 66 drilling permits were issued in April and 42 in May
  • Natural gas production fell from 1.7 million cubic feet per day (cf/d) in March to 1.6 million cf/d per day in April

Read more at dmr.nd.gov