this was shown on local CBS TV eve news. KXnet. don
Several people have already been hired to operate the new diesel refinery near Dickinson.
Some with experience, some with none.
The more inexperienced hires are going through an accelerated training program right now at Bismarck State College.
David Maxwell is one of eight men being trained to run the new diesel refinery.
A job that they have already been hired for.
"They're going to be working at a plant that's currently being built." says Paul Zimmerman, Refinery Operations Trainer.
Most of the them will be working their first job as operators, but they are required to go through four months of accelerated training first.
"We bring folks in here for training, bring 'em up to speed as soon as possible and then send them back to the plants and allow them to go back to work more confident and able to do their jobs better." says Zimmerman.
Trainees work with valves and pumps here that are very similar to what they'll see at the refinery.
"Everything's on a smaller scale, little safer here..." says Bill Michelsen, operator trainee.
Trainer Paul Zimmerman says it is becoming more and more common to not only teach college students, but also employees in the energy industry.
"This doesn't substitute a degree but what it does is get these guys, very confident in a quick pace, to where they can get out there and do a stellar job of operating a plant." says Zimmerman.
They work together now learning the pressure systems, how to monitor levels and how to troubleshoot.
"You've got to know what you're doing because you're working with some dangerous stuff." says Michelsen.
The operators come from all backgrounds, from North Dakota, to Alabama, and as far away as Zimbabwe.
"It's cool to have everyone's different perspective..." says Maxwell.
Some have experience working in plants, and some do not, but they are all being geared toward safety as the number one priority.
The eight men will finish their training Ap
And then lastly, I will put in the bucket of risk management type systems. This includes things like fire protection for our fireproofing of some of the facilities as well as some of our building design. So, all those things affected us, each of them kind of adding to our increase in overall costs. As I said, some of those are related or were beneficial to Knife River, but certainly not all of them. If you look at where we are at today, we are about little over 70% of the total cost of the project is either under a fixed price bid or under purchase order. So we feel pretty good about our costs. We have got over 90% of the engineering completed as we sit here are approximately 90%. So we feel pretty good where we think the costs are going to come on this. And just a reminder, we are planning to still on track to bring it online by the end of 2014 and notwithstanding the increase in cost certainly I look forward to the $70 million to $90 million EBITDA associated with our investment here and our share of that.
this is from the Q+A portion of CC . question deals with DP cost increases. don
Capital Markets. Your line is now open.
Matt Tucker - KeyBanc Capital Markets
Few follow-up questions on the refinery, can you discuss what contributed to the increase in the cost estimate? How constant are you that you have got the estimate right now and does any of that increase represent increased work for your other segments?
Steve Bietz - President and Chief Executive Officer, WBI Energy
Sure, Matt. This is Steve. No, there isn’t any one specific thing that drove the cost increases, a number of items and I will try to give you a flavor for that. First of all, some of the site work in concrete-related activities would help drive those costs as we did our geotechnical interpretations of the soil there. We ended up having to increase the thickness of our foundations by about a third. That certainly was beneficial to our Knife River Group who did some of that work. Another area that we saw increase was environmental related things like wastewater handling systems, the processing water systems or storm water system, all those things to ensure environmental compliance just added up being more significant than we had originally expected relative to some of our pipe racks and so forth, we had to increase the height of those from our original design that helped drive the increase costs.
I See the 50 yr old CEO of BCEI resigned/retired on Friday jan 31st. here is press release.. don
Denver, Colorado, February 3, 2014 - Bonanza Creek Energy, Inc. (BCEI) ("BCEI" or the "Company") today announced that Mr. Michael Starzer, BCEI` s President and Chief Executive Officer ("CEO"), is retiring from the Company and as a member of the Company`s Board of Directors (the "Board"), effective January 31, 2014. Mr. Starzer served as a member of the Board and President and CEO of the Company`s predecessor, Bonanza Creek Energy, LLC ("BCEC"), since BCEC`s formation. Mr. Starzer has served as founder, director, and President and CEO of each of the Company`s predecessor Bonanza Creek companies.
I think if you look at 25 or so the real high P/E tech stocks these could implode.. this is JMHO , I have been wrong before, but we all know after a long hard party , their is a day of reckoning. don
Part 2. this article appeared in the Hartford Courant. don
Murphy said that a solution to the capacity issue will require major federal and state involvement, from approvals to funding and construction.
"If we're going to site new natural gas transmission capacity, we have to have the private sector, the federal government and states aligned," Murphy said. "That's why it's important to us as the department sets its priorities in the Quadrennial Energy Review to dedicate resources to fix this problem in the Northeast."
In his State of the Union speech Tuesday, President Obama mentioned cutting the "red tape" involved in building new factories that run on natural gas. He called on Congress to help build fueling stations for automobiles that run on natural gas, and said he would work with the industry to "sustain production and job growth while strengthening protection of our air, our water and our communities."
While the president didn't directly address building gas pipelines, his words encouraged Murphy. "I don't think he has put meat on that bone yet, but I take President Obama at his word."
The exact date of the New England meeting hasn't been set, Murphy said, though he expects the hearings to begin in the next several months. The goal of the meetings and overall review, Moniz said in the letter, is "to identify the threats, risks, and opportunities to energy infrastructure and to develop a roadmap of policy recommendations to enhance the economic, environmental, and national security benefits provided by these vast networks
The head of the U.S. Department of Energy is calling for a review of New England's natural gas shortage, which has led to higher electricity prices and concerns that the region's electric grid is overly dependent on the fuel.
Secretary Ernest J. Moniz said in a letter to New England senators that the issue of tight natural gas supplies will be one of the first raised in a broad federal review of the country's energy system, which President Barack Obama requested earlier this month.
A stakeholder meeting in the next few months will kick off the review, Moniz said.
"As a New Englander myself, I am acutely aware of the constraints that existing infrastructure to and within the New England region present for the transmission of natural gas to customers, industrial facilities, and power plants," Moniz, who is from Massachusetts, wrote in a letter to U.S. Sen. Chris Murphy and others
There is an ample supply of natural gas because of new drilling techniques, like hydraulic fracturing or fracking, but it has become costly to transport it into New England. Pipelines into the region are packed, as cold weather raises demand for heating and the region's power plants have increased their reliance on the fuel in recent years.
With supply into the region tight, electricity prices have jumped and some industrial and commercial gas customers have been called on to temporarily switch fuels in order to maintain adequate supply. In December, the six New England governors signed a pact agreeing to address these and other issues in concert.
The senators wrote to Moniz in late December expressing their concerns about "the natural gas and energy market challenges facing the New England region and the effect that high energy prices are having on consumers and businesses."
Murphy expects the regional meeting to explore how the federal government can support the New England governors' effort. "Even with this creative state financing mechanism, new pipeline capacity only arrives once you have the full participation and support of federal agencies," he said in an interview Thursday.
Last week, the New England governors proposed to levy a new tariff on power plants that would fund the building of new pipelines and the expansion of existing lines into the region. ISO New England, the operator of the region's power grid and wholesale electricity market, called the approach "novel" and said it would submit the idea to federal regulators.
from the DNR in their presentations , they have NEVER said anything about any partner in the belle creek project.. So I believe DNR owns 100 % of the belle creek project
About 80 miles south at the Grieve oil field they have a JV for EOR with a Aus. micro cap Elk petroleum ticker is ( EKPTF ) .
8:12 am Mattel misses by $0.13, misses on revs (MAT) : Reports Q4 (Dec) earnings of $1.07 per share, $0.13 worse than the Capital IQ Consensus Estimate of $1.20; revenues fell 6.3% year/year to $2.11 bln vs the $2.37 bln consensus
I believe this pipeline is one of the elements needed to reduce flaring of the Bakken NG. don
WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc. (MDU), announced that planning for a 375-mile natural gas pipeline stretching from western North Dakota to northwestern Minnesota is underway and an open season seeking capacity commitments has begun.
“The Dakota Pipeline offers another avenue to move Bakken-produced natural gas out of the area and complements our other ongoing activities to build connections to several natural gas processing facilities,” said David L. Goodin, president and CEO of MDU Resources. “The increase in natural gas pipeline capacity out of the region will provide additional transportation opportunities for new production as it comes on line, as well as more capacity for natural gas captured through industry’s efforts to reduce the flaring of this valuable resource.”
North Dakota Governor Jack Dalrymple has been concerned about the amount of natural gas flaring in the state and has asked an industry task force to provide recommendations. “We are committed to working with WBI Energy and the entire energy industry so that we continue to reduce flaring, add value to our energy resources and help meet the nation’s energy needs,” Dalrymple said. “This pipeline is part of the solution and I commend MDU Resources and WBI Energy for their commitment to North Dakota and to the responsible development of our energy resources.”
In Rural area's the Federal Government has NRC ( old ASCS ) offices in almost every county. These fed employees are involved with crops, crop assistances to the Farmers/Ranchers for Compliance of government crop payments for acreages for CRP. this office is typically located in the town of the county seat./County court house.
Also in this town is the County or Local High school.. By using CNG in The School busses and the federal government vehicles they would have a refueling station every 30-50 miles.. use a credit card and fill the piece of equipment.. don
Also Bruce on Jan 26th had a comparison on his blog of OAS( oasis pet ) versus KOG ( Kodiak pet ) on flaring ... this was for NOV 2013 only and OAS has 365 wells and Flared 25.3% of the ng, where KOG had has 238 wells and flared 54.4 %
Gundersen said flaring numbers in more remote areas are much higher. In the Mandaree area of the reservation, 60 percent of natural gas is flared, 67 percent is flared in the Four Bears area and almost all natural gas produced in the Twin Buttes area is flared. The amount of gas produced is rising with the amount of oil produced on the reservation.
“There is a lot of activity,” Gundersen said. “The pace is moving so fast infrastructure just can’t keep up.”
In more accessible and developed areas of the reservation’s oil field, flaring is as low as 17 percent, Gundersen said.
Oil produced on Fort Berthold accounts for 20 percent of oil production in the Bakken, Hall said. The Mandaree area leads the way as the highest producing zone.
There are 640 wellheads on the reservation. Gundersen said as the number of units per well site increases, wellhead numbers are projected to peak at about 3,000. About 150,000 barrels are produced on the reservation per day. That number is expected to reach 175,000 barrels per day, Hall said.
Hall said construction is underway on the $450 million, 20,000-barrel Thunder Butte Petroleum Services Refinery located near Makoti. A rail transload facility will be operational this summer and the refinery, which is being built modularly by a company in Texas, should be ready by winter 2015, Hall said.
The Fort Berthold reservation property is managed by the bureau of Land Management. this article is from the Bismarck tribune Nov 25th 2013.
The Three Affiliated Tribes are planning for a natural gas plant on the Fort Berthold Indian Reservation.
Tribal Chairman Tex Hall said the tribal council is considering potential gas plant locations best for gathering the fuel and determining what size of plant would be needed to serve gas production on the reservation.
The gas plant is among several other changes related to the oil and gas industry on the reservation being discussed at the Mandan, Hidatsa & Arikara Tribal Employment Rights Office Ordinance Seminar & Expo held in Bismarck on Monday and today.
Hall said he expects the project to cost between $200 million and $300 million. He said the council is working on obtaining funding for the plant.
About 55 percent of natural gas produced on the Fort Berthold Indian Reservation is being flared, said Steven Gundersen, president of Tallsalt Advisors, a financial advisory firm contracted by the tribe to audit oil royalties on wells with tribal interests.
“We’re entirely too high,” Hall said.
Natural Gas Soars to Four-Year High
By Nicole Friedman
NEW YORK—Natural-gas prices rocketed more than 10% to a four-year high on concerns that sustained frigid weather would lead to robust demand for the heating fuel well into February.
Natural gas for February delivery jumped 52.4 cents to $5.557 a million British thermal units on the New York Mercantile Exchange, the highest closing price since Jan. 25, 2010. Futures posted their largest one-day percentage gain since June 14, 2012, and the biggest one-day dollar gain since Sept. 17, 2008
The February contract expired at settlement. The more actively traded March contract rose 52.4 cents, or almost 11%, to $5.465/mmBtu.
Prices have soared 31% this month as forecasts continue to call for colder-than-average weather, keeping demand for indoor heating high. About half of U.S. households use natural gas as their primary heating fuel, according to the U.S. Energy Information Administration