American Oil and Gas Reporter - November 2019 - 74

ConventionCoverage: North Dakota Petroleum Council

NDPC Helps To Shape
State Regulations
By Dan Holder
WATFORD CITY, N.D.- North Dakota
continues to set oil production records as
it consistently develops efficient and effective ways to operate, Blu Hulsey, chairman of the North Dakota Petroleum Council, assessed in opening the group's 2019
convention, held Sept. 17-19 at the Rough
Rider Center.
"It doesn't look like a slowdown
when you go through Watford City,"
observed Hulsey, senior vice president
for government and regulatory affairs
at Continental Resources in Oklahoma
City. "We have had a consistent growth
rate even with low prices. It is a testimony
to what you are doing that we continue
to grow production here. The state's
15,943 wells are 1,000 more than we
had in 2018 around the same time. We
aren't reviving rigs, so keeping a consistent rig count and consistent development is helping us break those production records."
The association has played a significant
role in shaping North Dakota's regulatory
environment, noted Hulsey, pointing to
its efforts in the state of Washington as
one example. Governor Jay Inslee signed
SB 5579 on May 9. According to his
office, the bill defines vapor pressure
limits for transporting crude oil by rail,
and prohibits facilities built after January
2019 from loading or unloading crude
from a tank car unless the oil has a vapor
pressure below 9 psi.
Before the Washington Legislature
passed the bill, several NDPC members
traveled west to testify against it, he said.
"We lost that fight; that doesn't mean we
have lost the fight. We have gone directly
to the Pipeline and Hazardous Materials
Safety Administration, making the case
that the state doesn't have authority under
the Constitution's Interstate Commerce
clause," Hulsey indicated. "I think we
have a pretty good case."
NDPC continues to work with the
North Dakota Industrial Commission on
state regulations, he reported, making
sure it understands how any proposed
rules will impact oil and gas activities in
74 THE AMERICAN OIL & GAS REPORTER

North Dakota.
On the federal level, the association
continues to work on air quality regulations, as Hulsey emphasized NDPC was
not pushing to eliminate rules, but rather
improve them. "Our industry cares about
clean air and clean water," he said. "We
should say that every day. But these regulations are burdensome and are not helping clean air or water."
Assessing 2019
Reviewing the year, Hulsey told the
association in 2019, NDPC increased its
membership numbers, expanded available
benefits and created a foundation to distribute revenues raised by oil and gas
production.
"Growth in membership, even in these
low-price times, is a testament to the
staff," Hulsey praised. "They continue to
find better ways to add member value. I
am talking about the ONE BASIN-One
Way, the Emerging Leadership program
and other membership benefits. We realize
that every dollar you spend is a dollar
from your bottom line and is important
to your business."

North Dakota's oil and gas industry has
seen consistent growth even with low
commodity prices, Blu Hulsey, chairman
of the North Dakota Petroleum Council,
observes in his remarks opening the
group's 2019 convention, held Sept. 1719 in Watford City, N.D.

2019 saw a number of victories for the
oil and gas industry, Hulsey pointed out,
citing the examples of a new tax compact
signed by the state and the Mandan, Hidatsa
and Arikara Nation that resolved a dispute
on oil tax revenues by increasing the share
allocated to the tribal government, and
legislative approval of SB 2344, which
rewrote laws governing pore space.
More than 200 industry members attended the 2019 Energy Day at the statehouse, Hulsey said.
"I cannot tell you enough how important
your work at the capital is," he revealed.
"Every time you speak to your legislators
matters. I encourage you to continue that
advocacy. They need to know that your
jobs are impacted by their legislation."
As the country readies for the 2020
elections, Hulsey stressed the need for a
strong association to advocate for oil and
gas interests at the local, state and national
levels. "We need to continue to grow our
advocacy efforts," he said. "2020 will be
a pivotal year in what we are doing as an
industry and as the NDPC. We should
not be afraid of saying oil and gas is
good for North Dakota. We need to advocate for American oil as aggressively
as we can."
ONE BASIN-One Way
In January 2018, NDPC organized a
strategic planning session in Grand Forks,
N.D., to discuss oil field safety, recalled
Kari Cutting, the association's vice president. "There are 30,000 jobs available
in the Bakken Shale. How are we going
to entice people to come to North Dakota
to take those jobs?," she posed. "And, if
we cannot get people to come here, how
are we going to be more efficient with
the workforce that we have?"
Session participants decided any
such program needed to emphasize
leadership training, a rigorous safety
initiative and a clear path for helping
the workforce. Cutting said NDPC then
brought together more than 100 Williston
Basin safety professionals, tapping into
experts from well service and production
companies, as well as contractors. The
group became the ONE BASIN-One

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