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Cleanup Crews Work On Hess Well
Cleanup crews using absorbent booms were mobilized April 12 after two barrels of oil spilled over an overflowing reserve pit from an oil well near Ray, ND.
The incident occurred at the Hess Corporation’s GO-Solberg 15-8H well just west of Ray.
The reserve drilling pit was breached by too much runoff water that spilled off the site and ran into a ditch along the north side of Hwy. 2, according to Glenn Wollan, field supervisor for the ND Dept. of Mineral Resources. “The water continued through culverts along the drainage and south into a body of water identified as McLeod Lake.”
“Further runoff was reported as contained on the well site,” Wollan said. His agency and the ND Health Dept. are monitoring cleanup efforts.
No Harm Expected By ND Spill
North Dakota authorities said that some of the 100 barrels of saltwater that was accidentally released from a McKenzie County well location April 2 was diluted because it was mixed with snow before it entered Lake Sakakawea.
“The saltwater was diluted with runoff before entering Lake Sakakawea, and any of the diluted saltwater reaching the lake would not be recoverable,” said Glen Wollan, field supervisor for the ND Dept. of Mineral Resources on April 7.
The mishap occurred at the Petro-Hunt CMNU D-406 well in Sec. 6, T153N-R95W when a three-inch line ruptured, releasing the salt water and three barrels of crude oil.
“Any pooled oil along the spill path was being recovered and any oiled vegetation along the spill path was to be burned off with propane torches,” Wollan said.
His agency, the ND Health Dept., and officials from the US Forest Service have monitored the cleanup work.
Because of ice on the lake and because the spill was considered minor, no damage to fish was expected by authorities.
Industry Turnout Urged For April 14 BLM Drilling Rule Change
Yates Petroleum is holding three special meetings in Gillette, WY on April 14 to get public support for what it considers to be “unneeded regulations” on drilling being proposed by the Bureau of Land Management.
The BLM is considering “unneeded, undesirable and potentially unsafe changes in drilling requirements that have strong potential to further delay drilling and reduce the number of coalbed methane wells drilled in the Powder River Basin,” said Tim Barber with Yates.
The company is calling for support of the industry, drilling contractors, businesses, landowners, and public officials to “hold BLM accountable”.
The meetings will be held at the Clarion Inn, 2009 South Douglas Hwy., with the first starting at 1:30 pm, the second at 3:45 pm, and the third at 7:00 pm.
Because of space limitations, Yates is asking people to make reservations by calling Barbara Underwood at 307-685-8432 or email: bunderwood@yatespetroleum.com; or contact Tim Barber by phone at 307-685-8423, or by email at tbarber@yatespetroleum.com.
Japan Firms Buys Into Niobrara Play
A Japanese company, Marubeni Corp. of Tokyo, has agreed to pay Marathon Oil Corp. $270 million for a 30% working interest in new Niobrara wells drilled in the DJ Basin. Marathon plans at least a dozen wells in 2011.
The transaction amounts to $5,000 an acre to participate in the wells on Marathon’s holdings of 180,000 net acres in southeast Wyoming and northern Colorado.
“Marathon is pleased to partner with Marubeni as we prepare to explore and evaluate the full potential of this emerging, liquids-rich resource play,” said Dave Roberts, executive vice president, upstream for Marathon. “Our significant acreage position in the DJ Basin reinforces our strategy of targeting unconventional, oil-focused resource places in the US that provide low-risk, scalable growth opportunities.”
“It also allows us to apply expertise developed over the past several years in other unconventional shale plays such as the Bakken formation in North Dakota,” Roberts said.
Marubeni has been looking for an opportunity to participate in the US oil and gas business for the last two years. “We believe this project is not only in line with our long-term business strategy, but also contributes to the recent US energy policy which is aiming to increase domestic crude oil production,” a Marubeni spokesman said.
Knife River Sets Up ND Paving/ Cement Operation
Knife River Corp., a subsidiary of MDU Resources, said it will open a new facility near Williston, ND to provide full aggregate ready-mix, asphalt, and concrete construction services.
The company plans to move an asphalt plant from Boise, Idaho to Williston, where it already has secured a paving contract.
“One of the biggest critical needs in that area is to rebuild the highway infrastructure,” said Knife River CEO and president Bill Schneider. “Knife River also excels in highway reconstruction and rehabilitation, and will be ready to make safer, stronger roads that can handle the increased truck traffic.”
Brad Arntson, who has 35 years experience in the construction industry, will supervise the new operation, which will have full ready mix operations in place by May.
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