The Oil and Gas Division of the Department of Mineral Resources has scheduled a special hearing to address the oil price that constitutes waste pursuant to North Dakota Century Code § 38-08-02(19); the consequences of determining that waste is occurring, and what relief may be appropriate and necessary to prevent the waste of North Dakota crude oil production.
The Commission is seeking testimony on the following:
- market price, production costs, and post-production costs that result in economic waste of North Dakota crude oil
- volatility of North Dakota crude oil price
- crude oil price differential projections
- hedged crude oil production and challenges of getting to market
- oversupply and reduced demand of North Dakota crude oil
- storage capacity for North Dakota crude oil
- North Dakota refinery crude oil demand
- implications of temporary crude oil storage
- prevention of waste of North Dakota crude oil
- protection of correlative rights and jeopardized title to leasehold
- impacts on royalty owners when crude oil price reaches a negative value
- processes and challenges of curtailing or shutting in crude oil production from North Dakota wells
- processes and challenges of protecting the environment, health and safety of the public when curtailing production or shutting in crude oil production from North Dakota wells
- impacts on continuation of business for the entities that service curtailed or shut in North Dakota oil wells
- impacts on continuation of business for the entities that provide transportation, storage, marketing, and refining of North Dakota crude oil
- impacts on continued employment of North Dakota operator’s staff
Submit written comments to the
Oil and Gas Division, 1016 E Calgary Ave, Bismarck, ND 58503-5512 or
brkadrmas@nd.govbefore 5 p.m. CDT, Friday, May 15, 2020.
Listen online at https://www.dmr.nd.gov/oilgas/docketindex.asp
COVID-19 Hearing Testimony Procedure
- To testify at the hearing, provide your telephone number to brkadrmas@nd.gov before 12 p.m. CDT, Tuesday, May 19, 2020. Submit any documents to be used during your testimony to brkadrmas@nd.gov before 12 p.m. CDT, Tuesday, May 19, 2020. Commission staff will call your number in an order to be determined by the Hearing Examiner.
- 15-minute limit on testimony
- Parties will be asked not to repeat testimony of others
Click here for Hearing Procedures and More Information
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