Two Saltwater Leaks in North Dakota

June 24, 2015 Elizabeth Alford

Two separate saltwater spills in North Dakota this week have health officials scrambling to assess the damage and monitor the environmental impact of nearby wetlands.

News agencies from across the state reported that 50 barrels of brine were spilled at a site in Burke County owned by Petro Harvester Operating Company in Burke County. Company officials also indicated they believe that the damage might not have been an accident.

“Karl Rockeman, head of the NDDoH division of water quality said “The company believes someone damaged the pump jack at the well head. They’re alleging that it was intentional.”

A second unrelated spill was reported by Condor Petroleum, Inc. in Divide COunty and involved one barrel of oil and 39 barrels of brine were spilled. NDDoH officials are evaluating a nearby wetland for water quality impacts. Health department officials report that a some saltwater reached a nearby wetland and they promised to work with the company to develop a remediation plan for the impacted site.

Wasterwater disposal has become a hot topic as hydraulic fracturing has increased over the last few years. After drilling, the wastewater is cleaned and then pumped deep into injection wells. The potential risks of this practice are still unknown but are commonly connected to increased earthquakes, water contamination and danger to the ecosystem.

Dakota Access Pipeline Concerns

June 22, 2015 Elizabeth Alford

Energy Transfer Pipeline is moving forward with plans to build a massive 1.134 mile pipeline that will transport crude from the Bakken through South Dakota and into Patoka, Illinois amid public concerns.

Energy Transfer Partners moved one step closer this week as officials from the McKenzie County Commission approved zoning for the first of six terminals it will need for the project. Along with permission to move ahead the company also received vigorous opposition and criticism from landowners who see the company as arrogant.

“According to the Tri-City Herald, “Commissioner Kathy Skarda that said she has received numerous phone calls from landowners upset about the company’s negotiating style.”

Last week, more than 80 people turned out for a public hearing in Killdeer to express their concerns to the Public Service Commission. This was the second of three such hearings while PSC officials decide if they will grant permits for the project. The concerns ranged from people not being offered enough money for their easements to the fear of security issues resulting from much energy infrastructure being clustered together.

Once the project is complete in late 2016, the pipeline will transport approximately 450,000 barrels per day and could potentially represent approximately half of Bakken current daily crude oil production.

Turning Drilling Waste into Roads

June 17, 2015 Elizabeth Alford

Saltwater Waste — ND Tests New Technologies to Recycle Waste

The North Dakota Department of Health has approved a pilot project to test new technologies to recycle solid drilling waste.

One of the companies involved in the project is promising to revolutionize the industry by recycling Bakken drilling waste into material for roads or other uses. Nuverra has invested more than three years and $30 million into this initiative. Its process called Terrafficient can recycle 100 percent of that waste, according to company spokesperson.

Recycling drilling waste is a common practice in other states, but the Bakken’s high salt content has made it more challenging to develop a process that protects the environment.

“Scott Radig with the North Dakota Department of Health said “Nuverra proposes to reuse the drilling waste in three ways: mix it with gravel so the gravel will compact better and not wash off the roads; reuse it as a road base material; and use it within municipal landfills as daily cover material.”

Nuverra’s testing will include using the recycled material to construct a road within their landfill facility near Arnegard and a gravel road in central McKenzie County will be used to test mixing the recycled material with gravel.

North Dakota Fights Fracking Rule

June 15, 2015 Elizabeth Alford

North Dakota officials are warning that a new federal fracking rule will likely cost the state $300 a year in income and 1,900 jobs.

In March,the Bureau of Land Management (BLM) finalized new rules to regulate hydraulic oil and gas fracturing on public lands. Several states have filed suit, arguing that the new rules supersede the state’s authority and “invade” the jurisdiction of the state regulatory bodies.

The ruling is particularly significant to North Dakota because of it vast public lands. It is estimated that BLM has an interest in about a third of the drilling units in North Dakota that were acquired the mineral rights on defaulted farms during the the Great Depression.

Lynn Helms, director of the Department of Mineral Resources believes that the ruling will cause companies to leave North Dakota, which could cost the state $9.4 billion in royalties and taxes.

The rule is set to take effect on June 24th and to delay implementation, North Dakota filed a request for a preliminary injunction against the BLM while the court reviewed previous challenges. A hearing is set for June 23 in U.S. District Court in Casper, Wyo.

OPEC Decision Doesn't Intimidate

June 10, 2015 Elizabeth Alford

Crude Plunges to Six Year Low — OPEC to Keep Oil Production High

OPEC announced last Friday that it will stick with its policy to produce oil at a high rate, a measure that may signal they are underestimating Bakken producers.

If the measure by OPEC was meant to intimidate U.S. energy producers, they may want to try again. Despite this tactic to crush competitors, U.S. oil companies have worked to streamline operations an become more efficient. Many now claim they can remain profitable at the lower crude prices for some time.

“Lynn Helms, head of North Dakota’s Department of Mineral Resources says that “OPEC is still is our main competition. But what you’re seeing now is the Bakken becoming the swing producer, something that has happened relatively quickly because of efficiencies in drilling and completion technology.”

In response to OPEC’s announcement, oil prices fell on Monday and analysts project this will prolong the supply glut for the rest of the year. But despite forecasted demands and increasing supplies, OPEC said it expected that the world’s oversupply of crude will likely ease over the coming quarters and that U.S. production will decline in the third quarter.