Tappin' The Bakken

Read about oil industry employeesgiving back to the community

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Wells Fargo Sidney101 2nd Avenue SW • 406-433-2321

Wells Fargo Baker24 S Main • 406-778-3348

Wells Fargo Circle301 Main • 406-485-2731

Wells Fargo Forsyth325 N 9th Avenue • 406-346-2961

Spring Tappin’ the Bakken2 WEDNESDAY, APRIL 28, 2010 SIDNEY HERALD

Spring Tappin’ the BakkenSIDNEY HERALD WEDNESDAY, APRIL 28, 2010 3

Helping community from oil industry

BY BILL VANDER WEELESIDNEY HERALD

On Christmas Eve, Marty Shaide, own-er of Interstate Industrial and part own-er of IIS Services, was having the time ofhis life.

He and Vess Hurley were deliveringgifts for the new “A Gift For Every Child”program in Fairview. Shaide, wearing aSanta’s hat, and Hurley, in an elf ’s outfit,were placing the presents in front ofhomes and then ringing the door bell.

“We would ring the door bell and runlike heck,” Shaide laughed.

Wife Kim Shaide added, “Vess and Mar-ty did a lot of knocking and running.”

The idea for “A Gift For Every Child”came when a few Fairview residentswere discussing the addition of a WinterFestival to the town’s Silver Bells week-end. The Winter Festival included newactivities such as a bingo for turkeys andhams, a cash giveaway and the lighting oftrees at Sharbono Park (thanks to dona-tions by Hurley, Shaide and W.L. NeuConstruction).

Then, Kim Shaide came up with anoth-er idea – funds should be raised so everychild in the community has not just agift, but a great gift.

“Christmas is a hard time for a lot offamilies,” Kim said.

The Shaides explained to their chil-dren that they wouldn’t have as manyChristmas presents because they wantedto give to others who were a little less for-tunate. The children’s reaction was a pos-itive one.

In its first year, “A Gift For EveryChild” project enjoyed great success.More than $4,000 was raised in just a fewmonths time as people put money intothe account at First Security Bank-West.

“I was really surprised by how muchmoney we had,” Kim Shaide said.

The money was used for such items aseight Xboxes and Wii units completewith all controls. They also helped fami-lies obtain winter clothing, bikes andeven diapers.

“It sure turned out great. There weresome happy kids,” Kim Shaide said.

Marty added, “Christmas is a time thatI think every kid in the world should begiven something. It was the best thingthat I’ve ever done.”

The Shaides were amazed of how muchgiving was done. They noted Neu Con-struction along with Vess and SheyeneHurley were “unbelievable.” Neu Con-

struction donated all the turkeys andhams for the turkey bingo fundraiser.

“I don’t think there’s a company in thiscounty that gives more,” Marty said ofNeu Construction.

With people already making donationsat the bank for next Christmas, theShaides are optimistic the program willcontinue for years to come.

“We’re already working on it for nextyear so that everybody can have a MerryChristmas again,” Marty said. “What agreat testament of what Christmas is allabout.”

The Shaides are grateful for the oppor-tunity to help others in the community.Marty started Interstate Industrial 15years ago. At that time, he also worked atHolly Sugar and performed some rough-neck work on rigs to make ends meet.

Now, Interstate Industrial has 16 em-ployees. The business specializes in sandblasting, steam cleaning and painting ofdrilling rigs and gas plants.

“When it got busier, I was the first oneto offer services like that around here,”Marty said. “I was kinda at the rightplace at the right time.”

IIS Services, meanwhile, was startedfour years ago by Shaide and Dan Cayko.

“We rent, sell and service all electrical,explosive-proof cleaners especially foroil rigs,” Shaide said. “There’s no openflame.”

IIS Services’ equipment is engineeredtested and configured for extreme envi-ronments.

Both of the companies are very activein Montana, North Dakota and Wyomingas well as doing business in Utah, Texas,

Oklahoma, Arkansas and Louisiana.As if he wasn’t busy enough, Shaide al-

so gives to the community by volunteer-ing as the high school football team’s as-sistant coach.

“You really get some neat kids in therewho need the football program,” Shaidesaid. “It’s the only structure of theirlife.”

Shaide explains it’s not an easy sched-ule for him as he starts his day earlierand gets home later during football sea-son. He sometimes needs to take phonecalls during practice. But the sacrificesare worth it for him.

“You make it work. It’s never ever beenabout money or anything like that,”Shaide said. “I’ve had more fun coachingand really enjoy working with the kids.”

Shaides help make sure every child celebrates Christmas with gift

BILL VANDER WEELE | SIDNEY HERALD

The Shaides, from left, Jonathan, Marty, Teigan, Kim and Mitchell assisted with the new “A Gift for Every Child” project.

Mon.-Sat. 6 a.m.-9 p.m. • Sun. 9 a.m.-6 p.m. 1281 South Central Ave., Sidney • 433-1401

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U.S. Rep. Denny Rehberg, R-Mont., hasresponded to the decision by the Bureauof Land Management to suspend 61 Mon-tana oil and gas leases issued in 2008. Theleases were suspended, due to a lawsuit,until additional environmental reviewsare completed.

An economic analysis by Montana StateUniversity-Billings concluded that oil andgas development has a total impact ofmore than $8.6 billion in Montana andsupports more than 12,000 Montana jobs.

“Unfortunately, as is too often the case,our engines of economic growth arestalled by an alliance between powerfulenvironmental special interest groupswho file limitless lawsuits and Washing-ton, D.C. bureaucrats,” Rehberg said.“The longer we wait to start producingour own energy, the longer we’ll be relianton foreign sources. This is yet another at-tack on good-paying jobs in the West.”

Rehberg has consistently been a cham-pion for an all-of-the-above energy strate-gy, which includes increased domestic tra-

ditional energy production.As a member of the Energy and Water

Appropriations Subcommittee, he recent-ly criticized the administration’s decisionto slash traditional energy programs by20 percent in the president’s budget. In thelast month alone, he has strongly advocat-ed for American jobs through increasedoffshore energy production and a stream-lined permitting process, and has opposedincreased taxes on oil and natural gas pro-duction.

Rehberg speaks against rulingsuspension of state oil, gas leases

‘The longer we wait to startproducing our own energy, the

longer we’ll be reliant on foreign sources.’

Denny RehbergU.S. House representative

CCaallll bbeeffoorree yyoouu ddiigg!

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Lower Yellowstone Rural Electric Assoc.

" d b hHighway 16 NW, Sidney - 488-1602

When moving equipment or tall structures,always use extreme caution near powerlines. Call the local electric energyprovider for assistance.

For Safety’s SakeLook up and Locate

Please notify the appropriate One Call service 48 hours in advance of excavation,construction or similar activities.

Montana One Call 1-800-424-5555 orwithin MT simply dial 811

North Dakota One Call 1-800-795-0555 or within ND simply dial 811One Call location service is free of charge.

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Safety is one of the main con-cerns of many businesses in theoil and gas industry. Dirty equip-ment, such as oil/gas products ona rig floor, can be a major acci-dent waiting to happen. Ron’sPower Wash and Steam Cleaningis a business that specializes intaking care ofthose dirty jobs.

Ron’s PowerWash is a mobilepower wash sta-tion, which own-er/operator RonPeterson, Sidney,comes straight tothe source thatneeds some deep and thoroughcleaning.

Ron’s business tackles heavyequipment in the oil field, farm,ranch and residential or othercommercial businesses.

Peterson, originally from Lig-nite, N.D., has 32 years of experi-ence in the oil field. He knowsthis area well. Besides North

Dakota and Montana, he has ex-perience in Wyoming, Colorado,Utah, New Mexico and off shorein California.

Ron’s Power Wash and SteamCleaning will travel to cleansmall to very large jobs. He haspower washed sidewalks and

driveways and evengraffiti removal.Some of his largestjobs have includeddrilling rigs and bigmining equipment.

Ron’s Power Washwill travel to yourdestination. Peter-son has a 500-gallon

water supply tank and specialcleaning chemicals to rid thedirt, grease and other oils. “I canhaul potable water as well,” Pe-terson said. He also has a trailermount with a 750-gallon tank.

Contact Ron’s Power Wash andSteam Cleaning today at 406-489-1813 or e-mail Peterson at [email protected].

Ron’s Power Wash and Steam Cleaning ready for business

DENIECE SCHWAB | SIDNEY HERALD

Ron’s Power Wash will travel to your destination. Peterson has a 500-gallon water supply tank and special clean-ing chemicals to rid the dirt, grease and other oils.

If you have a lease question,we are more than happy toanswer it for you. Feel free to give us a call.

We are actively acquiringleases in parts ofRichland and Rooseveltcounties, Montana,McKenzie andBillings counties,North Dakota.

to all the mineral owners whohave contacted us andhave leased to us.

Lee E. ArmstrongLicensed in Montana

and North Dakota

104 2nd Ave. S.W. • Sidney(lower level - CPA building)

433-7700 e-mail: [email protected]


BY LOUISA BARBERSIDNEY HERALD

These are busy days for Judd Burman,a Fairview native, who juggles family, funand his job in the oil industry.

It’s a two weeks on, two weeks off workschedule as a mud engineer (or drillingfluid technician), a position he’s heldwith National Oil Well Varco for almosttwo years. That was after roughneckingfor two and a half years. “I decided I was-n’t going to do another winter in the der-rick,” he said. “It’s just too cold.”

Today, he’s in charge of the drillingmud. He’s in charge of properties such asits weight, viscosity and chlorides. Bur-man works on two rigs in North Dakota,running a series of tests on the drillingfluid and making recommendations ofwhat products to add to bring it to its de-sirable state. He believes he has “The bestjob in the patch for a family man.”

Unfortunately, the job doesn’t alwaysleave enough time for Burman to do whathe really loves: disc golf. “I love disc golf.The main reason is it’s the only sport I’veever flourished at,” he said, chuckling.

He grew up playing golf, inheriting itfrom his late father, Don. And while at-tending college in Billings, Burmanpicked up disc golf, playing with friendsat various parks and fields. He becamesort of a pioneer (along with friends JimRott and Travis Frickle who designed thecourses) helping to build the leaguethere. But whenever he returned toFairview, there wasn’t much to do. So in2001, he began building a course at Sund-heim Park, holding a tournament thatyear with friends he played with inBillings.

Following leaving his previous comput-er job in Billings, Burman moved his

family of four, which includes his wife,Alyssa, two children, Braden and Audrey,and three dogs to Fairview, where he nowworks on his days off – if he can – tobuilding support for the sport.

Disc golf is similar to traditional ballgolf as players use golf discs instead ofballs and clubs, then throw them at anabove-ground target. The object of thegame is to throw a golf disc into the tar-get for “par” or better, i.e., in the fewestnumber of throws. There are differenttypes of golf discs used for different pur-poses, much like ball golfers use differentclubs. The player begins by “driving”from a designated concrete tee pad andcontinues toward the target, throwingeach consecutive shot from the spotwhere the previous throw has landed.


Fairview native creates disc golf course

LOUISA BARBER | SIDNEY HERALD

Judd Burman with one of the holes at Sund-heim Park.

SEE DISC GOLF | PAGE 8


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Finally, a successful“putt'”sends the disc intothe target, and the hole iscompleted. The combina-tion of challenges to play-ers, including distance, ac-curacy, wind, trees, shrub-bery, water and terrainchanges, offers plenty ofaction and excitementduring the course of agame.

There are currently fivebaskets so far of what’splanned to be a nine-holecourse at the park. He isfundraising for more bas-kets, tee pads and a coursesign with sponsor names,a course map and golf eti-quette. “It’s a fun and chal-lenging course,” he said.“It’s difficult too.” Thecourse, he said, gets play.Not a lot. But it gets moreand more.

While he won’t bragabout his accomplish-ments in the sport, the

disc golf “pro” has gone tofour Big Sky State Games,coming back with gold inall of them. He also usedto earn decent money dur-ing summer tournaments.

So now it’s Fairview’sturn to build a following.

Burman says he’s lookingforward to building inter-est in the area’s young-sters. “I’m all about thekids,” he said. “I want thekids to have something todo, somewhere to go andplay and do somethingcompetitive.”

He’s held two clinics atFairview High School andplans to eventually holdanother one for any inter-ested students who wantto learn from Montana’sbest.

Burman plans to havethe course complete andready for players withinthe next few months. Whatwith balancing home andwork, it’ll take some time.“I thought I’d have a ton oftime with two weeks ontwo weeks off but turnsout those two weeks offare still pretty full withtwo kids,” he said.

[email protected] proposed course, which will be named the Wade Davidsen Memorial Disc Golf Course.

FROM PAGE 7

Disc golf: Hope is children use course for activity


Judd Burman has won goldmedals at four Big Sky StateGames.


“We love seeing the oil workers in our store!”

Thanks for your

hard work.

203 2nd St. NW, Sidney

482-3737

“We are grateful forthe work you do and

value what youbring to our area.”

111 S. Central Ave., Sidney, MT www.johnsonhardwareandfurniture.com

We arethankful

for thegood

jobs theoil field

provides!

LambertPublic Schools

WWee aapppprreecciiaatteebeing able to

uuppddaattee oouurr sscchhoooolldue to oil revenue.

Thanks to all the oil producers

and service companiesfor making it possible

for Richland County

to grow.Richland CountyCommissioners

“We’ve been in Richland Co.since 1925, but the oil has

been here for a million years!We appreciate all those who keep it flowing…”

1151 South Central433-2305

We appreciate the oil field’s contribution

to the community as a whole.

Sidney Paint & Glass611 S. Central • Sidney

482-5032

433-2714118 South Central, Sidney

We appreciate all the positive

growth our area is experiencing because

of the oil field.

Tues.-Sat. 9 a.m.-6 p.m.after hours by appointment

Weappreciate

all the oil fieldworkers!

433-HUNT4868

South of Sidney • 433-4709

Weappreciate

the businessfrom all the

oil field personnel.

FairviewPublic

Schools

215 E. Main St., Sidney • 433-1810

Join us in recognizing the contributions of the local oil & gas industry to our communities.

We enjoy yourcompany duringdinner & beyond!

Thanks for supporting

our school.

From sales to service we appreciatethe oil field workers

and businesses.

We appreciate thecontribution oil makes

to our community.

We are fortunate forthe boost oil has givento our local economy.

We are thankful for the economic

growth oil brings to our community.

Thanks to all the guysand gals of the oil field

for their patronage.

We have enjoyed bring the oil story to our community for the last five yearswith our Tappin the Bakken special editions.

100 14th St. SE.,Sidney • 433-2012

Convenience Store & Deli2201 W Holly • Culbertson Hwy.

Across from fairgrounds406-433-4041


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• Mineral Owner Rights & Leases• Oilfield Service Companies

• Title Examination & Curative• Drilling Opinions • Division Orders

• Licensed Montana & North Dakota 1977• Culbertson & Bainville City Attorney

HENNESSY LAW OFFICE, P.C.Greg W. Hennessy

Oil & Gas law since 1977 from the Overthrust Belt in Montana to the Williston Basin in North Dakota

BY BRIAN SCHWEITZERMONTANA GOVERNOR

Oil and natural gas production arebright spots in the Montana economy, andthey will continue to be instrumental inmeeting the nation’s energy supply. I con-gratulate Richland County, and I amproud of the work we’ve done together toincrease oil production. I look forward tomany more years of successes as we con-tinue to capitalize on value-adding oppor-tunities in the energy sector.

Last month, I called together a meetingof Montana oil producers and one of theworld’s largest developers of energy in-frastructure. The purpose of the meetingwas to confirm to TransCanada that Mon-tana needs an “on-ramp” to their Key-stone XL pipeline.

The Keystone XL pipeline would trans-port oil sands crude oil from Alberta toOklahoma and is proposed to traverse 282miles of eastern Montana. The affectedMontana counties stand to collect nearly$60 million in annual property taxes. Thisis great news for eastern Montana, and Ihave supported this project based on thenumber of good paying jobs and othereconomic benefits it would bring. But Iwas disappointed Montana oil producersinitially weren’t going to be allowed ac-cess in order to move their product.

The strong turnout at the Billingsmeeting clearly illustrated that Montanaoil producers are interested in this newaccess to markets. The pipeline wouldpass right through the Bakken play, andwe all know the significance that theBakken’s estimated current reserves of3.65 billion barrels holds to our energy se-curity. TransCanada now knows we herein Montana are serious about access forour oil, and that we need a seat at the table.

I was very encouraged by the responsefrom TransCanada. They heard our mes-sage and said that they were “open forbusiness” to Montana producers. Overthe coming weeks and months, Tran-sCanada will meet with Montana oil pro-ducers to gauge actual production figuresfor the pipeline. The specific location ofany “on-ramp” would also be determinedthrough those conversations, and it ispossible we could be shipping Montanaoil to southern markets by 2013.

I look forward to sharing the progressof this project with you in the future.

If you have ideas about how we can im-prove the energy industry, oil production,wind generation or anything else, pleasedo not hesitate to contact me. You canreach me at [email protected] or byphone at 406-444-3111. And if you are everin Helena, please stop by – my door is al-ways open.

Governor says oil productionis bright spot in state’s economy BY DENNY REHBERG

U.S. REPRESENTATIVE

As many of you know, I visit each ofMontana’s 56 counties every congressionalterm, which means I’ve seen a lot of Mon-tana’s 69,567 road miles. It also means Ispend a lot of time talking to Montanans atgas stations, and those conversations andfill-ups ensure that energy issues are al-ways on my mind.

First, my thanks go out to those who sup-port the oil industry in Montana. While it’spopular to group everyone in with hugemultinational oil corporations, the realityis our industry is made up of small busi-nesses owned by hard-working Montanans.I know how difficult the work is, and howimportant the jobs are to the local economy.Oil industry wages and royalties are vitalto our local communities and schools, andhelp provide a more secure future for ourMontana way of life.

I assure you that I will never tire of fight-ing for true energy solutions. The need fora national energy policy, and the time forMontana to be part of the comprehensiveplan, is now.

America should focus its energy policywith an all-of-the-above approach: re-searching new energy alternatives, provid-ing incentives for conservation, utilizingmore renewable resources, and environ-mentally sound development of fossil fuels.The lengthy process of environmentalplanning must be made more efficient andcost effective. We don’t need more bureau-cracy; we need the kind of common senseregulations that are balanced and reason-able. Protecting the environment and pro-ducing energy are not mutually exclusive.

I’ve consistently fought for an all-of-the-above energy strategy. As a member of theEnergy and Water Appropriations Sub-committee, I expressed frustration over theadministration’s decision to slash fossil en-ergy programs by 20 percent. In the last

month, I sent letters urging offshore ener-gy exploration, criticizing unnecessary en-ergy permitting delays, and opposing in-creased taxes on oil and natural gas pro-duction. These tax increases would dispro-portionately affect independent producerswho supply 68 percent of American oil and82 percent of American natural gas.

Our “dependence” on foreign oil fromplaces like Venezuela and Saudi Arabia en-tangles us in the Middle East and makes usdependent on countries that are hostile toAmerica. Simply put, the greater Ameri-ca’s dependence on foreign energy, thegreater the threat to American national se-curity. While some think the only solutionto our foreign oil addiction is to stop usingoil, I think the better solution must includeincreased production right here in our ownbackyard.

And, as we’ve seen when the cost of oilsky-rocketed to $150 a barrel, a balancedenergy policy is also vital to the financialsecurity of every household in Montana.That’s why I oppose any effort to burdenthe American people with a “cap and tax”policy that would raise the cost of energyfor every household by thousands of dol-lars per year.

Cap and tax is particularly bad for Mon-tana and other rural western states. At atime when our economy is hemorrhagingjobs, the non-partisan Heritage Foundationwarns that cap and tax will cost more than8,600 jobs in Montana alone. In places likeSidney or Colstrip, real Montanans workreal jobs that depend on traditional sourcesof energy, and though Nancy Pelosi and theHouse Democrats have already passed thisbill, I am working with any willing col-league to ensure this misguided legislationdoesn’t become law. To that end, I encour-age you to continue to make your voicesheard, and together, we can turn back thejob-killing, energy-dependent, deficit-spending tide in Washington, D.C.

Rehberg supports country’s oil industry

406-433-8338Fax 433-8340

Mon.-Fri., 7 a.m.-5:30 p.m.

Sat., 8 a.m.-2 p.m.

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BY BILL VANDER WEELESIDNEY HERALD

This is where she wanted toraise her family.

In 2006, Lorilee Norby and herhusband, Jeremy, made the deci-sion to move back to RichlandCounty after living in Alaska.

“It’s been great,” Lorilee saidof her return to eastern Mon-tana. “You can’t beat havingboth families here, and we want-ed our kids to have the same ex-periences we had growing up.”

A part of Lorilee’s enjoyablelife has been being controller forMitchell’s Oil Field Service forthe last year and a half.

Duties of her job include tak-ing care of all financial records,including accounts and bal-ances, at Mitchell’s.

Her first job in Sidney was be-ing in a CPA office. After taking

time off from the workplace tohave her second baby, Norbyfound a new home at Mitchell’s.

“This is often a career moveCPAs make. Public accountantsmove into individual business-es,” she explained. “There areinteresting challenges to this.You get to be deeply involved inone industry.”

Norby explains busy times aremore spread out in this fieldcompared to working mainly ontaxes. “This is perfect for havinga family, plus it challenges youprofessionally.”

Challenges for her atMitchell’s Oil Field Services in-clude the constant changes inthe oil industry.

“We can be extremely busy,and then the oil prices go down,and it’s slow,” Norby said.

Mitchell’s Oil Field Service employee becomes very active in communityHelping community from oil industry

BILL VANDER WEELE | SIDNEY HERALD

Lorilee Norby has become involved in such organizations as the Sidney Area Chamber of Commerce and Agricul-ture and Mentor Moms.SEE NORBY | PAGE 44

Changing Times BringChanging Financial Needs

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1511 South Central Ave., Sidney, MT • 406-488-8706

From Sidney to Stanley


BY HARRY LIPSIEASIDNEY HERALD

While it’s not what he expected to be do-ing, Sidney native Travis Sergent is happywith how things have worked out.

“Coming out of high school, I wouldhave never pictured myself doing this,”the 2007 Sidney High School graduate saidof his job as a measurement technician forEpic Integrated Resources. “The opportu-nity came up, and I just kind of luckedout.”

Sergent’s journey began the night of hishigh school graduation as he began towork on the oil rigs as a way to “bypasstime in the summer,” he said.

In November of 2007, an opportunitypresented itself. “I was eating at a restau-rant and this guy asked me if I would beinterested in a job,” Sergent said. “That’swhat I’ve been doing ever since.”

As a measurement technician, he in-stalls and programs meters that read theflow of gas. “Right away, it was a lot to get

used to with all the programming andeverything. It’s very repetitious,” Sergentsaid. “I’m definitely gotten comfortablewith the job, I like it.”

As apart of his job, he is also an appren-tice electrician. “It’s something to fallback on,” he said.

Driving is also a major part of Sergent’s

position as his work takes him throughoutthe MonDak region. “It’s a lot of wind-shield time, but you get used to it.”

Sergent stays busy in the winter monthsby coaching in the Richland Youth HockeyProgram. He served as an assistant coachfor the pee wee hockey this past season.

“Coaching makes the winter months go

by quick,” he said. “It’s also a good chanceto travel and see people I know from othertowns.” Sergent, who participated in theRichland Youth Hockey Program for 14years, has continued to have a love for thesport. “I played a lot of different sports,but hockey was always my favorite,” hesaid.

Office: 406-482-7870 • Toll Free: 1-888-287-7808Dispatch 406-489-2712 • Sidney Mobile: 406-489-2097 or 406-489-0999

Locally owned andoperated since 1988

• QUALITY WORK • Years of experience

For all your vac truck and hot oil truck needs.



Sidney native finds working in the oil field suits him

FILE

Travis Sergent still stays active in the hockeyprogram.

Proud to beparticipating in the

Bakken playadding to theeconomy of

Richland County.

Drilling and ProductionSidney • 406-482-4000


Stephen C. Bowman, President Victor J. Lawson, Vice-President Daryl Sorenson, Operations ManagerCell: (406) 765-7954 Cell: (406) 765-7687 Cell: (406) 765-8563

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In the Community to Serve™


BY LINDSEY BRIGHTSIDNEY HERALD

The area has been mapped. You saw theseismograph teams barbecuing last weekoutside one of the local motels. The coun-ty offices are full of men and womenscouring through land deeds. It’s official– there’s oil under the ground, and theproducers aren’t going to let it just sitthere. It will be coming out.

The lease men will knock on the land-owners door, give them a call on thephone and discuss the terms of a con-tract to lease acres of the person’s proper-ty with the right to drill on it. Within thiscontract, not only the percent of thewell’s potential earnings will be clarifiedbut also what will happen to the wellwhen the company has finally decidedthe well is costing more than it is mak-ing.

“When the well is plugged and aban-doned, the area might have been farm-land before,” says Dan Larson, public af-fairs liaison for Enerplus, an active pro-ducer in the Williston Basin. “Theymight want to graze their cattle on it orgrow wheat, we [as a company] will re-turn the site to the way it looked before-

hand.”The restoration and reclamation

process of the well after it has beenplugged and abandoned is both federallyand state regulated. Each state will varyslightly in their requirements. It isagreed amongst producers, though, thatMontana’s guidelines are very strict.

This, however, does not take place untilthe end of the well’s life.

Let’s go back to the beginning.The leaseman has made the deal be-

tween the oil and gas production compa-ny and the landowner. The contract hasbeen signed.

In places like the Williston Basin, thereservoir is distinct from many of theolder – meaning longer developed – reser-voirs. It’s an unconventional shale reser-voir, and the economically recoverable oilis deep. The oil is located in the Devon-ian-Mississippian zone – approximately11,000 feet below the surface of the earth.Beneath the Bakken, not much furtherdown, is the Three Forks/Sanish. It wasjust within the last decade that oil thisdeep became economical for companiesto recover. To get to this oil requires both

‘Life of a Well’ from beginning to end

SEE WELL | PAGE 38


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Oil & Gas Revenue - Richland County by fiscal year

Fiscal Year Quarter Total Revenue CollectRichland Co. Contributions Money retained by state To all counties To Richland County To RC County Gov.

2002-2003 2002 1 12,337,290 4,005,953 8,331,337 1,127,122 360,2522 13,458,063 4,270,685 9,187,377 1,084,604 355,4463 14,695,554 4,764,568 9,930,986 1,250,726 416,5774 16,451,454 O/G 11,450,258 1,377,108 462,614

Total $56,942,361 $13,041,206 $38,899,958 $4,839,560 1,594,889

2003-2004 2003 1 22,361,842 3,045,472 11,244,243 11,117,599 1,377,467 632,9462 18,289,476 2,535,280 9,384,924 8,904,552 1,146,708 526,9123 23,610,176 4,182,454 12,146,372 11,463,804 1,445,965 664,4214 20,434,442 3,390,267 10,526,073 9,908,369 1,533,418 704,606

Total 84,695,936 13,153,473 43,301,612 41,394,324 5,503,558 2,528,885

2004-2005 2004 1 23,434,182 4,182,454 12,122,070 11,312,111 1,922,674 883,4692 27,054,589 5,214,936 14,387,152 12,667,437 2,397,309 1,101,5633 30,127,979 6,396,731 16,083,639 14,044,340 2,940,667 1,351,2364 34,907,380 7,959,139 18,676,177 16,231,204 3,718,684 1,708,735

Total 115,524,130 23,753,260 61,269,038 54,255,092 10,979,334 5,045,003

2005-2006 2005 1 35,966,557 9,448,140 19,254,625 16,711,932 4,354,548 2,000,9152 39,884,873 11,647,001 21,476,521 18,408,352 5,441,917 2,500,5613 50,429,199 15,414,443 27,252,528 23,176,671 7,201,625 3,309,1474 55,236,648 16,590,752 29,545,521 25,691,127 7,751,196 3,561,675

Total 181,517,277 53,100,336 97,529,195 83,988,082 24,749,286 11,372,298

2006-2007 2006 1 48,159,165 16,600,568 25,889,308 22,269,857 7,902,611 3,631,2502 52,582,180 19,618,325 28,604,000 23,978,180 9,312,660 4,279,1673 56,014,548 22,271,286 30,035,690 25,978,858 10,579,532 4,861,2954 48,565,918 18,925,596 26,238,649 22,327,268 8,984,220 4,128,249

Total 205,321,811 77,415,775 110,767,647 94,554,163 36,779,023 16,899,961

2007-2008 2007 1 50,196,265 19,944,495 27,092,740 23,103,525 9,467,418 4,350,2792 58,529,455 23,159,499 32,135,779 26,393,676 10,987,382 5,048,7023 62,909,112 26,551,704 34,206,734 28,702,378 12,604,188 5,791,6244 74,131,464 31,512,083 40,133,249 33,998,215 14,958,732 6,873,538

Total 245,766,296 101,167,781 133,568,502 112,197,794 48,017,720 22,064,143

2008-2009 2008 1 83,895,426 34,180,335 45,166,426 38,728,999 16,225,404 7,455,5732 106,200,438 40,834,000 57,286,806 48,913,632 19,383,931 9,800,8953 96,500,034 44,932,553 51,997,854 44,502,181 21,329,479 8,906,9164 44,814,568 18,589,308 23,982,318 20,832,250 8,824,339 4,054,784

Total 331,410,466 138,536,196 178,433,404 152,977,062 65,763,153 30,218,168

2009-2010 2009 1 32,361,772 13,472,942 17,305,188 15,056,584 6,395,600 2,938,7782 42,253,260 18,992,172 22,809,243 19,444,018 9,015,580 4,142,6593 45,954,851 20,723,320 24,810,898 21,143,953 9,837,360 4,520,2674

Total thru 3rd quarter 120,569,883 53,188,434 64,925,329 55,644,555 25,248,540 11,601,704

Oil and gas revenue comparison – Richland CountyInformation from Richland County Treasurer

Fiscal Y ear Quarter Total Revenue Richland County Money Retained To All To Richland To Richland Co.Collected Contributions By State Counties County Government

Hamm & Phillips Service Company...... over 40 Years of Servicein the Oil & Gas Industry

Hamm & Phillips Service Co. has been servicing the oil &gas industry since 1968. The company’s corporate head-quarters are located in Enid, Oklahoma. The companyestablished operations in Marmarth, North Dakota in 1995and have since opened facilities in Sidney, Montana andDickinson, North Dakota. They are proud to be a part of thegrowing oil and gas industry in the Williston Basin andBakken Shale.

Ron Boyd, President of Hamm & Phillips, has led the company through the cyclical nature of the oil industry since1995. He contributes the continued success of Hamm &Phillips to the hardworking and dedicated employees.Quoted from Mr. Boyd “We can buy trucks, but peoplebuild companies.”

Hamm & Phillips looks forward to many more years oftaking care of our customers to which we have the privilegeto serve.

Service and EquipmentÙ Vac & Gear Pumps Ù Bobtail Ù Hot Oiler TrucksÙ Frac Tanks Ù Winch Trucks Ù Super Heaters Ù Water Filtering

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LocationsSidney Dickinson

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“Have the power fuels team go to work for you.”

Field OfficesTioga/Lignite (701) 664-2594 Fax: (701) 664-2002 Baker/Beach (701) 872-4456 Fax: (701) 872-4459

Stanley (701) 628-5151 Fax: (701) 628-5152Dickinson/Killdeer (701) 483-5971 Fax: (701) 483-5973

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Office: 701.774.3273Fax: 701.774.1960

636 East Broadway P.O. Box 2660 Williston, ND 58802-2660

Dan Redka - OwnerField ManagerCell: 770-7461

Lois B. Redka - OwnerOffice ManagerCell: 770-7319

Res:572-2451

Celebrating

30 years!

BY BRUCE LARSENURSA RESOURCES GROUP LLC

The Bakken is back. Not that it ever re-ally went anywhere, considering it isburied 10,000 feet below the surface of theEarth, but many of you have probably no-ticed an increase in oil activity through-out the area in recent months. As theeconomy sputtered in early 2009 and oilprices sank below $50/bbl, many opera-tors in the Williston Basin and around theUnited States cut capital spending andsettled upon a “wait and see” approach.As the price of oil steadily reboundedduring the second half of 2009 and into2010, most operators decided the wait wasover and have come back into the Willis-ton Basin with a vengeance in the past sixmonths. During the past 10 months, rigcount has tripled from 35 to more than100.

WHY DRAMATIC INCREASE IN ACTIVITY?This uptick is somewhat related to the

rising price of oil, but also the result of adramatic increase in the use of drillingand completion technologies that have ex-panded the boundaries of the BakkenFormation. These drilling technologiesinvolve the use of advanced drilling fluidsand electronic devices that allow thedriller to keep the hole straight and with-in the boundaries of the Bakken Forma-tion for up to two miles of lateral length.

The completion technologies have ad-vanced to allow focused stimulation,sometimes called staged completions,which permit an engineer to distributethe energy of the artificial stimulationevenly over the entire horizontal section.This is critical because the Bakken For-mation alone is not capable of producingoil and gas. Production from the reservoirrequires fractures that will act as con-

duits to deliver the oil to the wellbore.These fractures occur naturally in someparts of the basin, but in the vast majori-ty of the basin, horsepower is required atthe surface to artificially create thesefractures. It is the advancement of stagedcompletions that has driven the expan-sion of the Bakken Play from its humblebeginnings to where it is today.

As many of you know, horizontaldrilling and artificial fracture stimula-tions are not new in the area and spurredthe initial development of the MiddleBakken Formation between Sidney andLambert in the early 2000s. The ability tocontact multiple thousands of feet ofreservoir rock and increase deliverabilityof the well with hydraulic fracturing wasalso the critical component of the earlyplay. Geology, which is near and dear tomy heart, played an important role in theearly developments as companies initiallytargeted areas with more porosity. Whatstarted around Sidney and jumped toStanley, N.D., in 2007 was the result of abeautiful combination of geology andtechnology.

The Bakken Formation in both of theseareas was perfectly composed to be “un-locked” by the technologies of the day. Ascompanies tried to expand the boundariesof these two “sweet spots” at Elm Couleeand Parshall Fields using the same tech-nologies, the well results were generallypoor and the efforts uneconomic.

Oil and gas companies at the time knewthat the Bakken was present over largeparts of the basin, and thermally matureenough to generate oil in most spots. Inorder to get enough oil from a well to justi-fy the capital investment, it was thought awell would have to be drilled in one ofthese core areas where geology and

New completion technologies enhance wellproductivity, expand Bakken Play boundaries

SEE BAKKEN | PAGE 40

OPERATIONS:Montana Montana North Dakota North DakotaSidney Glendive Williston Belfield

406-482-5601 406-365-3312 701-774-0127 701-575-4335

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Oil & Gas PropertiesPetroleum Land Services

Office: 406-482-4610Home: 406-482-4755Fax: 406-482-5836

P. O. Box 77 • Sidney, MT 59270

Kirby L. Dasinger Certified Professional Landman


As the only seismic surveying companylocated in the Williston Basin, EricksonContract Surveying, Inc., a family ownedand operated company based out of Sid-ney, has seen it all. As a company that hasbeen around for more than 40 years, onecan bet its employees have seen technolo-gy in seismic surveying change overtime.

Back in the 1960s, seismic surveyingwas done using the plane table method.“That’s where you set an instrument upon a plane table and you looked throughit,” operations manager Shandon Erick-son said. “You had a head surveyor, headchainer and a rodman. You measured dis-tance with the chain and elevations withthe alidade instrument.”

Today, it’s all about technology wheresurveyors carry hand held data collectorsthat are linked by Bluetooth to the GPSunit that is mounted on a pole or in abackpack. “It’s really helped the produc-

tion and decreased the workforce,” Erick-son said. What was once a three-mancrew, is now down to a one or two mancrew, and the work is done much faster.“The one-man crew can get more done ina day–probably twice as much done, thana three-man crew could.”

Having been in the oil field for severalyears, naturally Erickson Contract Sur-veying has grown. The company has mul-tiple divisions that include the followingareas: seismic permitting, seismic sur-veying, seismic drilling and a land sur-veying division.

“We survey every phase of an oil com-panies field from the seismic survey, tothe staking of the well site, to thepipelines that move the oil to the refiner-ies.” Erickson said. The company haspermit agents who meet with landownersto negotiate fees to cross their property,followed by Erickson’s survey crews whostake certain spots where seismic equip-ment will be deployed to eventually deter-

Family operated Erickson ContractSurveying performs well for customers

SEE ERICKSON | PAGE 23

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The gratification of workingwith people is the reason he en-joys both of his jobs. Brent Kalle-vig, a Sidney native, has servedthe Williston Basin as an inde-pendent petroleum landmansince 1983. In the winter months,Kallevig is a basketball referee,something he has done for morethan 20 years.

“I really like to get out and meetas many people in RichlandCounty as possible. Getting toknow and having a good workingrelationship with people is an im-portant part of my job,” he said ofhis job as a landman.

Kallevig’s daily activities in hisposition include researchingcourthouse records to determineproperty and rights ownership,negotiating and preparing oil and

gas leases, determining surfacedamages and inspecting well lo-cations. For the most part, hegives his clients good news.

“Most people are really recep-tive to the idea of being given gasleases so oil wells can be drilledon their land,” Kallevig said.“Lease checks can really helpsupplement a family’s income.”

While most clients are pleased,one downside is drilling can in-terrupt farm operations for a pe-riod of time. Despite that, Kalle-vig enjoys his job day in and out.

Through the years, the busi-ness has continued to grow partlydue to new technologies.

“Technology has helped compa-nies find and retrieve oil wherethey haven’t been able to do so inthe past. Because of that, localdrilling has increased in thearea,” he said.

As busy as his job keeps him,

Kallevig continues to enjoy thegame he loves: basketball. Kalle-vig, a Sidney High School gradu-ate, played on the 1974 Eagle staterunner-up team and went on toplay college basketball. Original-ly, he looked into coaching, “but itseemed like all the coaches werein place in the area,” Kallevigsaid.

Then the opportunity to be-come a referee came up. “TonyVetter told me that they werelooking for officials and said itwould be a good way to give backto the kids. Once I thought aboutit that way, I told him I would giveit a try,” Kallevig said.

He has now been an active offi-cial for more than 20 years andcontinues to enjoy the position.Brent, who is married to Joneen,has a stepson, Treavor, a daugh-ter, Brittny, and a son, Mitch. Be-tween watching his children play

and officiating, Kallevig haswatched his fair share of basket-ball.

“Refereeing gives me thechance to see local teams play and

keep in touch with the game,” hesaid. “It’s been a great opportuni-ty to watch a lot of special ath-letes and teams. There’s a lot oftalent out there.”

Brent, who plays city leaguebasketball and is an avid golfer,enjoys reuniting with peoplethrough basketball.

“It’s been enjoyable to see peo-ple I’ve played against or maybemet through my job,” he said.

While both of his jobs havetheir ups and downs, Kallevigcontinues to enjoy what he does.

“In every occupation you’re go-ing to have bad days. As an offi-cial you may walk away andthink of what you could do differ-ently, but there’s always anotherday,” he said. He feels the sameway about his job as a land man.Despite facing possible setbacks,“I continue to enjoy coming intowork every morning.”

Kallevig enjoys working with people in oil field, on basketball courtHelping community from oil industry

Brent Kallevig playing in a recentalumni game.


mine where the oil is located thousandsof feet below Earth’s surface. Drillingcrews then come in and drill a 40-60 footshot hole, load it with an explosive chargeand plug the shot holes to state specifica-tions. Once the charge is set off, the ener-gy from the blast travels undergroundand waves bounce off the oil bearing for-mations and back to the geophonesplaced in the ground. The seismic geo-phones pick up the vibrations to map outwhere the oil is located.

Seismic exploration is always busy pri-

or to when oil drilling rigs enter thescene (anywhere from two months to twoyears prior). Erickson said his companyhas been “swamped” in North Dakotawith seismic jobs up to 300 square milesin size – something considered huge inhis line of work.

“You’re looking at 100,000 points to sur-vey on the 300 square miles job,” he said.“You assign 10-15 crews to a job that size,and you’re looking at a three-month job.That was unheard of until they found theBakken.” A big job just 10 years ago was40 square miles with the average job be-

ing between 5 and 10 square miles. Today,a big job is 400.

Since 1995, ECS has surveyed 80 per-cent of all seismic jobs done in NorthDakota according to the states oil and gaswebsite.

Ultimately, Erickson wants to take hiscompany in the direction of being a “onestop shop” for oil companies in whichECS will survey the seismic portion oftheir field, stake the oil wells to bedrilled, survey pipelines after oil wellsare drilled and then put it all in a GIS (Ge-ographical Information System) to show-

case a base map of their field.As a business that considers itself mo-

bile (its crews have field offices located intrailers), ECS has grown and expanded toinclude not only Montana and NorthDakota but other states as well. Whereverthere’s oil, Erickson Survey Contractingis there, from New York to California,Texas and back to the Bakken. Andthere’s no time to quit now as plans are inplace to allow the company to be aroundfor years to come.

“We’re in it for the long haul,” Ericksonsaid.

FROM PAGE 21

Erickson: Technology throughout years changes work for local surveying company


For the last three years, Sid-ney native Kristan Haugen hasbeen working as a receptionistfor two companies in the oil in-dustry. What was formerly PearlDevelopment is now Epic Inte-grated Services, a transitionthat took place in January.

As receptionist, Haugen doesmuch of the paperwork, relay-ing messages and orderingparts, all so that her companycan move for-ward. It’s a 40-hour work weekposition,though some-times longer de-pending onwhat’s going on.But she enjoysit. “I love it.There’s a lot offlexibility. I’vemet great peo-ple,” she said. Not to mention,the people she works with areyoung and newlyweds. “So we’reall kind of on the same page, andthat’s what makes it really nice,”she said.

After graduating from SidneyHigh School in 2004, Haugenearned her AAS degree in busi-ness administration from North-west College in Powell, Wyo.Now married to Lane Haugen(who works as an XTO Energy

lease operator), she must bal-ance her work life and her per-sonal life.

Lately, that’s been focusing herattention on the Neal Herman-son Memorial Ranch Rodeo, anevent that will be part of theTown and Country Festival forthe second straight year. It hon-ors her friend.

“Neal was a bright, positive,fun person to be around,” shesaid. “We wanted something tokeep that memory alive.”

They also wanted to donateproceeds to dif-ferent charities.“I mean, he wasthe first one tohelp anybody,”Haugen said.

This year, or-ganizers are hop-ing for bigger andbetter, thoughlast year was “ex-cellent.”

There was a lotof positive feedback. “It was soawesome. It was such a great dayto honor Neal,” Haugen said,adding she’s looking forward tothis year’s rodeo. “We’ve just gota lot of momentum going, and Ithink that’s really, really good.Everybody has brought their ‘A’game as far as planning goes.”

Aside from planning the up-coming rodeo, Haugen is also ac-tive within the community inother ways. She’s past president

of the Boys & Girls Club of Rich-land County, she teaches pilates,serves on the Chamber’s leader-ship task force, is a Mary Kaysales director and serves as sec-

retary for the MonDak Ameri-can Petroleum Institute GolfTournament committee.

But being active is what she’sused to, and it keeps her busy.

“Ever since I was a little girl Iwas always in stuff,” she said.“I’ve always been involved.”

[email protected]


Epic Integrated Services employee stays involved in community activities

‘It was so awesome. Itwas such a great day to

honor Neal.’

Kristan HaugenNeal Hermanson Memorial Rodeo volunteer


Kristan Haugen has been involved in such projects as a memorial ranch rodeo, the Boys & Girls Club of RichlandCounty, the Sidney Chamber’s leadership program task force and the API golf tournament committee.



The April 6 meeting of the MonDak En-ergy Alliance held in Williston, N.D., wasa venue for those in attendance to seewhat North Dakota leaders have done toimprove the state’s energy and overalleconomy.

“I have to applaud Gov. John Hoeven forhis effort in increasing the production inNorth Dakota’s oil industry. His leader-ship has been extremely valuable thepast 10 years,” Williston, N.D., MayorWard Koeser said in his opening remarkscommending the keynote speaker for hiswork as the state’s governor.

Koeser associated new policies adapted

by the state with growth in energy in theregion. The mayor is pleased with thecurrent position of the economy in NorthDakota and is excited about the future.

“We are all very proud to be from astate that has a budget surplus consider-ing the hardships that many states arefacing right now,” he said.

Sidney Mayor Bret Smelser also wel-comed everyone in attendance to themeeting. Smelser thanked area oil pro-ducers for their effort. “All of your hardwork is paying off. We really appreciatewhat you do,” he said.

Hoeven told the audience that thestate’s success is largely due to NorthDakota’s focus on economic developmentand has legislators that strive to pass

bills that help the entire state.“There is quite a litany of programs

that create a good business environ-ment,” he said. “We have reduced taxesfor businesses and have been able to at-tract people to our great state.”

North Dakota, which has added morethan 5,000 people during Hoeven’s term,has seen the oil tax fund go from $50 mil-lion to an estimated $165 million for the2010-2011 fiscal year.

“It’s fun to come here and work withyou because you are working hard tomake good things happen,” Hoeven saidto close his speech.

Bruce Hicks, deputy director of theNorth Dakota Oil and Gas Division, dis-cussed possible timelines for Bakken oildevelopment.

“We expect production will go up sig-nificantly in the next few years,” Hickssaid.

The next meeting of the MonDak Ener-gy Alliance is set for July in Sidney.

MonDak Energy Alliance hears success stories from North Dakota during recent meeting

Oil & Gas Revenue Comparison

3rd Quarter 2005 (July-Sept.)




3rd quarter 2009 (July-Sept.)

Richland County allocations $7.2 million $10.5 million $12.604 million $19,384 million $9.837 millionCounty government $3.309 million $4.861 million $5.792 million $8.907 million $4.520 millionElementary retirement $295,000 $433,761 $516,000 $794,741 $403,332High School Retirement $282,000 $414,718 $494,000 $759,850 $385,624County Transportation $162,000 $239,097 $285,000 $438,077 $222,324Schools $3.152 million $4.631 million $5.517 million $8.484 million $4.306 million

Elementary/H.S. districtsSavage/Savage $12,550.00 $14,831 $18,340 $19,391 $7,571Brorson/Sidney $619,550 $961,965 $1.212 million $1.830 million $983,479

Rau/Sidney $68,659 $108,643 $181,300 $312,935 $195,898Lambert/Lambert $1.326 million $1.969 million $2.112 million $3.242 million $1.618 million

Rural District/Sidney $319,978 $436,064 $547,170 $930,533 $476,676Brorson/Lambert $5,931 $18,624 $31,337 $36,906 $25,020

Fairview/Rural District $432,621 $410,643 $491,163 $737,078 $309,268Lambert/Sidney $66,296 $111,139 $126,530 $207,284 $118,823

Culbertson/Fairview $19,234 $18,993 $63,933 $119,509 76,468Richey/Savage $49,872 $68,599 $100,029 $145,740 $69,993Sidney/Savage $3,629 $0 $0 $0 $0

Fairview/Lambert $24,043 $32,948 $45,435 $70,736 $39,000Lambert/Savage $146,908 $343,827 $437,782 $600,765 $264,894

Culbertson/Sidney $4,196 $24,121 $9,553 $14,616 $7,947Lambert/Fairview $52,007 $100,705 $106,788 $149,321 $73,901

Culbertson/Lambert $0 $10,711 $13,946 $33,512 $15,901Culbertson/Savage $0 $0 $19,722 $34,896 $23,186

Oil, gas and natural resources account

One-third to county governmentRichland County $74,000 $96,822 $208,650 $270,569 $126,135

Two Thirds to incoporated cities and towns (allocated based on population)

Sidney $128,760 $168,533 $365,800 $474,722 $221,431Fairview $19,240 $25,110 $51,500 $66,417 $30,839

Five year comparison of Richland County oil and gas revenue

Information provided by Richland Co. Treasurer

‘We have reduced taxes forbusinesses and have been able toattract people to our great state.’

Gov. John HoevenNorth Dakota Governor


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Gen. Govt. 15.6%

Public Safety31.28%

Public Works29.23%Culture & Rec.6.61%

Gen. Govt.32.88%

Public Safety 3%

Public Works24.24%

Culture & Rec.41.39%

Culture & Rec.3.78%

Gen. Govt. 31.37%

Public Safety7.85%

Public Works41.71%

Gen. Govt.46.45%

Public Safety6.37%

Public Works59.37%

Culture & Rec.12.51%

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Information provided by the city of Sidney

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Working construction in the oil indus-try isn’t Ken Herman’s first time aroundthe block. But for the born and raised Sid-ney native, working in construction foroil companies wasn’t something that wasplanned.

“It’s not that I was looking for it. It’ssomething that happened,” said Herman,owner of Ken Herman Construction. Af-ter doing a variety of jobs, Hermanformed his own construction companyand after some advertising, was contactedby Landtech manager Elmer Christensento do some projects for the company. Forthe last three years, the constructionworker’s been working with Landtechbuilding just about everything for thecompany. The company specializes in oilfield treater houses, pump houses and saltwater disposal buildings. Lately, however,employees took a break to spend timeworking to expand Landtech’s breakroom in its Sidney office.

These last few years weren’t the firstHerman has been around oil. Herman hasspent 10 years in it – first for seven years

during the 1980s’ oil boom working as apumper for Shell Oil and later as a con-tract pumper from 2004-2006, before tak-ing a life-long skill and transforming it in-to a business. With the knowledge gainedfrom his father (who was also a carpen-ter) and from his experience in the oilpatch, that combination has given him anadvantage.

“I know pretty much about all the loca-tions, how everything works, whereeverything goes and the safety,” he said.“It was nothing new to me.”

Each building he and his employeeshave built take roughly one month, andwith new oil wells being drilled all thetime, the work keeps them busy. With thesalt water disposal buildings, Landtechstarted with six or seven and now, be-cause of Herman Construction, the com-pany has about 16. “We just keep addingto it all the time,” he said.

Now with talk of the oil industry boom-ing again in and around the area, Hermanhopes to go along for the ride and expand.“I want to go with it,” he said. “We dopretty much any and everything.”

The four-person staff currently em-ployed with Herman may expand as well

as demand calls for it.One thing is for sure, though, had it not

been for the oil, the business may nothave been so successful, and Herman sayshe’s looking forward to seeing what thefuture holds.

“I’m looking forward to it,” he said. “Ithink it’s going to be a lot of fun. God onlyknows what’s going to happen in this val-ley.”

[email protected]

Herman Construction is making mark with oil field work

Ken Herman showing the expansion to the break room at Landtech.

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Sidney High School library remod-eled. Check. The 200 wing redone.Check. Administrative offices remod-eled. Check. So what’s next at SidneyHigh School? The 300 wing, cafeteriaand kitchen, a project estimated at $3.9million.

After that? “Then the high school willbe done,” Daniel Farr, Sidney Superin-tendent of Schools, said. For now, theboard of trustees approved a remodel ofthe 300 wing that includes social stud-ies, math classes, the kitchen and thecafeteria that’s also used for the studyhall. But with the new construction andremodeling that will take place startingin May, a new teachers’ lounge, schoolstore and commons area will be added.

In April, work had already been underway as a geothermal heating and cool-ing system was being installed behindthe school. The geothermal system willbe used for the 300 wing with the intentto eventually hook up the 100 wing (thewing that will soon become the oldest)when the time comes to remodel it. Thelibrary, 200 wing and administrative of-fices already use a geothermal system.

“Our community has got to realizehow blessed we’ve been with our oil andgas revenues to do as many infrastruc-ture projects as we can without increas-es the taxes to the local property own-ers,” Farr said. “Without the oil and gasrevenue, that simply would not havehappened. We would have had to run alot of bond issues over a long period oftime to accomplish what we have.”

Pam Radke, food service supervisor,said she’s looking forward to a newkitchen. “It’s really exciting for me tocome in and have something happen sofast. Who wouldn’t be excited for some-thing like that?” she said.

The kitchen is soon to be demolishedand completely redone to be larger withmore cooking equipment (i.e. ovens) toprepare the food for not only the highschool but the other schools as well.And after 49 years of the coolers andfreezers sitting outside, the addedkitchen space means the units can final-ly move in. And a garage will also bebuilt in which the delivery van will sitinside so the food inside hot carts canbe loaded indoors and transported to

the schools. Staff currently load the ve-hicle outside.

Also, more ovens mean less holdingtime in hot carts as they wait to betransported to the various schools. “Nu-trient content won’t be compromisedbecause they spend less time beingheated,” Radke said.

The high school kitchen staff ’s lastday of cooking in the old area was April23. For the remainder of the schoolyear, preparations and catering will bedone from St. Matthew’s CatholicChurch. Hot meals will still be providedalmost every day with some sack lunch-es. “I’ve identified 16 items I think I canmake without too much work,” Radkesaid.

Radke said she wasn’t unhappy aboutthe move to the church (one-third of theoven space is available there) becausethe end result will be “so spectacular.”

“The few short weeks we have to cookoutside of our norm is a small price topay, don’t you think?” she said.

Sidney High School uses oil revenue for improvements


Part of the project is replacing the current kitchen at Sidney High School.


A crew works on the geothermal system project.

Construction under wayin high school’s 300 wing



Last year was a good year for oil and gas exploration.Oil prices might not have rebounded to the near astro-nomical $140 per barrel, but that didn’t mean drillingstopped in America – at least not in unconventionalshale reservoirs like the Williston Basin’s Bakken andThree Forks/Sanish formations.

According to the U.S. Energy Information Administra-tion, 2009 was the first year national oil production in-creased since 1991. This was in large part due to the pro-duction development in the Williston Basin as well as anincreased production in the Gulf Coast. And, althoughoil production in Montana went down 12.45 percent lastyear, production in North Dakota was up close to 30 per-cent, largely due to the Bakken.

As most know, it was the combination of horizontaldrilling and hydraulic fracturing that unlocked, so tospeak, the oil trapped in the Bakken. Since this techno-logical strategy first was used in 2000, it has evolved

quite a lot from drilling vertically down 11,000 or so feet,drilling horizontally in one lateral leg and then doingone large, uncontrolled frac job to 20 plus frac stimula-tions completed on a lateral.

One company, more than many others, is central tothis evolution – Brigham Exploration. The oil and gasexploration company headquartered in Austin, Texas,has continually pushed the limits of hydraulic fractur-ing, and 2010 is starting out in the same way. It was justlast year that companies had settled on, what thenseemed a high number, 10 to 12 fracture stimulations.

Brigham surpassed that, however. In March 2010, thecompany completed the Jack-Erickson 6-31 well with a30 stage fracture stimulation. The initial 24 hour flowback rate was 2,652 barrels of oil equivalent per day[boepd].

However, it was a well with less frac stages that set therecord to date for early 24 hour peak flow back rate inthe Bakken. The Sorenson 29-32 in Mountrail County,North Dakota, was completed with a 27 frac stimulationjob and produced 5,133 boepd in the first 24 hours.

Early in April, Brigham announced commencement ofa proposed underwritten public offering of 13 millionshares of common stock. The company plans to makeapproximately $213 million, in which the majority of theamount would fund an increase in drilling in the compa-ny’s Bakken and Three/Forks acres. The company cur-rently has four rigs operating and with this announce-ment is hoping to have eight rigs operating by 2011.

Other companies in the Bakken, such as American Oiland Gas, have also completed 20 plus stage fracture stim-ulations in 2010. Each company seeks to find the mosteconomically, profitable formula when drilling. Whilethe more stages of fracture stimulations generally pro-duces a higher yield, nothing is certain when drilling10,000 to 11,000 feet under the surface of the earth. In ad-dition, the more frac stages, the more the well costs.Each frac stage costs an approximate $100,000. Thus,throughout the Bakken each company’s well will reflecttheir economic formula, from companies still perform-ing one uncontrolled frac job to companies like Brighamwho will use a 30 stage frac job.

Fracturing stimulations continue rise in country


North Dakota has seen itsshare of growth spurts in the oilproduction industry. The tremen-dous increase in crude oil pro-duction has definitely challengedofficials in the state to build theinfrastructure that can handlethe growth.

That’s why the North DakotaPipeline Authority is looking forways to export the oil out of thestate. The North Dakota Oil andGas Commission has predicted400,000 barrels of oil per day willbe produced, a number that cur-rently sits at 250,000 barrels a day.

“From a pipeline perspective,we need to look at these forecasts,and we need to start working onour projects now so that we’renot in a position 10 years fromnow...saying we weren’t preparedfor this,” North Dakota PipelineAuthority director JustinKringstad said at the MonDakEnergy Alliance meeting April 6.

The authority is looking at op-tions to expand pipelines. First isthe Tesoro Mandan Refinery,which can process about 58,000barrels a day; second is the ButtePipelines which can carry morethan 100,000 barrels; third is En-

bridge Pipeline that can carry161,600 barrels per day andfourth option to transport the oilis a new EOG Rail in Stanley,N.D., in which three unit trainscarry 60,000 barrels of oil.

There are several projects,however, that North Dakota offi-cials are working on to expandthe state’s pipelines. The En-bridge Bakken Pipeline Expan-sion Project has a potential ofcarrying 115,000 barrels of oil ormore per day to add on top of theexisting takeaway capacity. Theexpansion project travels fromManitoba, Canada, into NorthDakota. The project could beready by 2013.

The Kinder Morgan Bakken

Crude Project travels throughNorth Dakota to Michigan and isactually a propane pipeline.However, room can be made totransport the state’s light sweetcrude through the pipeline. De-tails are scheduled to come outin the next couple months.

The much talked about Key-stone Pipelines from Canada areanxiously looked forward to inNorth Dakota. The main line,which runs from Saskatchewanthrough North Dakota to Illinois,is scheduled to begin transport-ing in the middle of 2010. Thepipeline has an initial capacity of435,000 barrels of oil per day.

The Keystone Cushing Exten-sion, which runs from Nebraskato Cushing, Colo., increases ca-pacity to 590,000 barrels. “Theseare major pipelines. Very mas-sive. So again, these give someadditional space on these linesfor producers in our area,”Kringstad said. The extension isexpected to be in use by 2011.

The Keystone XL Pipeline,which runs from Saskatchewanthrough eastern Montana to Ne-braska and onto the Gulf of Mex-ico, has an additional capacity of700,000 barrels per day andshould be in service by 2012.

Officials did a study to find out

how to get the oil from producersonto the TransCanada Pipeline,keeping in mind the shortestroute, lowest capital investment,lowest tariff and one that followsthe Bakken development trend.To develop a pipeline that con-nects to the system, costs are esti-mated at $195-252 million, de-pending on which direction theconnecting pipeline goes.

Kringstad said steps are now

being taken to become connectedincluding identifying the shipperand their needs, determinewhere they want to go (Cushingor Gulf) and agree to terms andpricing for getting the oil on thepipeline.

“We’re really excited aboutwhat we have here coming in thefuture,” he said.

[email protected]

North Dakota prepares for increased oil production through pipeline

HARRY LIPSIEA | SIDNEY HERALD

A visual on the crude oil pipelines in North Dakota were a part of thepresentation during the MonDAk Energy Alliance meeting April 6 in Willis-ton, N.D.

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It’s a natural cause and effect. When theoil activity increases, the area just natu-rally tends to benefit from it. Some in obvi-ous ways, but in other ways not so much.

Take, for instance, the Sidney-RichlandAirport. Who would have thought such abusiness would benefit from extra revenuewhen the oil is in town? It’s called fuel flowrevenue. Sure, it’s the revenue generatedfrom fuel flow at the airport pumps. TheSidney Airport charges fuel flow revenueinstead of a landing fee. The businesses atthe airport (also called fixed base opera-tors) who fuel aircraft, pay a revenue tothe airport each month,according to how manygallons they sell and usethemselves,”airportmanager Bill Hendersonsaid.

“The more airplanesthere are to fuel up, themore money that’s gen-erated.One corporate jetalone holds a hugeamount of fuel. So, oneor two of them a weekcan really increase our fuel flow income.When they get business, we get revenue,”Henderson said. “That’s the way it works.”Having met several people when theyland, Henderson says many oil companiesfly into Sidney, which can be a convenientlocation for where they do their business.The charter and private planes the compa-nies use for the oil executives fly in ran-domly. “Since the oil boom has increased,they come in more often,” he said.

Companies like Continental Resourcesfly in ever so often. Spokesman Brian En-gle said the company averages flights ofone to two per month, purchasing fuelfrom a fixed base operator. “The airport isa big benefit because it saves valuable

time,” Engle said.In addition to the fuel flow, the airport,

which is operated by an authority board,leases land to the airport businesses.These businesses include teaching to fly,charter service, aircraft maintenance,spraying and fuel service, as well as air-craft storage. So if businesses need to ex-pand, that means building on more air-port land and leasing from the airport au-thority.

Rates for land leases, space rental andfuel flow tax increase as the cost of airportoperations increase. There’s a continuouscost increase in maintenance, upgradingand keeping the airport in compliance.

Even companies that aren’t exactly localhave benefited fromthe oil industry. GreatLakes Airlines offi-cials say they’ve seenan increase in busi-ness in the airportsaround the Bakken.Although there’s noway to be real cer-tain, Great Lakesspokesperson MonicaTaylor says the air-line can see where

the passengers are flying to and from.Many are coming from Texas.

Sidney, Williston, N.D., and Dickinson,N.D., are said to be some of the busiestmarkets in Great Lakes’ operations in 16states and 60 cities.

With the oil business picking up, the ex-tra air traffic gives way to extra income tothe airport, something that’s needed tokeep it running. “Revenue goes to upkeepfor lighting, runways and the terminal,”Henderson said.

To be sure, a booming oil industry is im-portant to the airport and businesses lo-cated there. “It’s very helpful,” he said.“It’s a boost to all of our economy to havethat happen.”

Airport benefits from oil activity

‘Since the oil boom has increased, they come

in more often.’

Bill HendersonAirport manager

Sidney is one of Great Lakes’ top locations.


Plans for new pipeline infrastructuregoing through and around the WillistonBasin are moving forward. Enbridge justfinished phase 6 of its Bakken expansionproject.

Lorraine Grymalia, public relations as-sistant for Enbridge, explained that in thelast several years the Bakken feederpipelines have over doubled their capaci-ty to 161,000 barrels of oil per day [bpd].The Bakken crude, once onto Enbridge’smainline, can access refineries in Illi-nois, Michigan, Oklahoma and a fewmore.

Grymalia says that the company is dis-cussing a phase 7, but it is still very muchin the formative stages. “The shippers inthe area are showing a interest,” she said.

In the case of TransCanada’s KeystoneXL pipeline [KXL], it’s moving forwardwith or without an access point, or “on-ramp,” for Montana, North Dakota andSouth Dakota Bakken producers.

At the beginning of March, there was ameeting between TransCanada, some

government representatives from Mon-tana and North Dakota and interested oilcompanies producing crude oil from theBakken and Three/Forks Sanish reser-voir.

“The market has changed since we hadour initial open-season,” Jeff Rauh, theTransCanada Keystone project represen-tative, said. The open-season refers to thetime periods where the pipeline operatorwill allow interested producers to showinterest in committing to filling a certaincapacity of the pipeline With the marketchange, Rauh says many Bakken produc-ers are now showing interest in shippingon the KXL.

The Keystone pipeline system is al-ready in place. The current pipelinestarts in Hardisty, Alberta goes throughSaskatchewan, down eastern NorthDakota and ending in Cushing, Okla., orPatoka, Ill. The proposed Keystone XLpipeline will start in Hardisty but thistime cut through eastern Montana, rightthrough Bakken territory, and continueall the way to the markets on the Gulf.

Pipeline surrounding Bakken moving forward

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The Gulf Coast is a major internation-al hub for oil. The differential on themarket price would decrease for produc-ers. By going to market on the GulfCoast, producers will get the best pricefor their oil.

Keystone’s goal is to initially transportup to 700,000 bpd Western Canadian sedi-mentary basin crude oil to the U.S. mar-ket. Right now, the system is contractedout mainly, 89 percent, to Canadian tarsands producers. The KXL would providethis rougher oil a straight route to theU.S. market.

In the Draft Environmental ImpactStatement, both federal and the state ofMontana, for the KXL project was offi-cially accepted last week and is now en-tering into the comment period. In it thedocument states that one of the benefitsof the KXL would be to supply the UnitedStates with a reliable source of oil. With-out the KXL, the United States would bedependent on less reliable sources of oil

from South America and the MiddleEast.

The report also said that the KXLwould have equal or less environmentalimpact than the other ways producerswould find to ship their oil if the pipelinewere not to be constructed.

As far as location for an on-ramp forBakken crude, that is still a matter fordiscussion.

Rauh reiterates that even without theopportunity for American Bakken pro-ducers to use the KXL, the additionalpipeline will take Western Canadian sed-iment basin crude from systems like En-bridge and make room for Bakken crude.

Still, though, the Montana governorand many Bakken producers are pushingfor U.S. Bakken crude access on thepipeline.

At press time, it was reported thatthere will be another meeting betweenproducers and TransCanada in the com-ing week. In these meetings, possible ac-cess point, cost and contract length willall be in discussion.

FROM PAGE 31

Pipeline: Officials say on-ramp forBakken crude on pipeline is still undecided


Oil production in North Dako-ta is running full speed ahead.During the MonDak Energy Al-liance meeting April 6, BruceHicks, the deputy director ofNorth Dakota Oil and Gas Divi-sion, said the projection for thestate is more than 1,100 permitsthat will be issued this year fordrilling. “That’s going to sur-pass our all-time high back in1981,” he said.

Currently, North Dakota’s is-sued permits are three times ashigh as the average in the past 10years.

“This is another indicationthat companies are out there,they’re gearing up, gettingthings in place because theyhave to have a good business cli-mate to drill these wells,” Hickssaid.

The state currently has 102 oilrigs with 37 in Mountrail Coun-

ty, 20 in McKenzie County, 18 inDunn, 13 in Williams and therest in other counties.

The Bakken Formation, whichhas an estimate of between200,000 to 300,000 billion barrelsof oil in place has a potential ofsupplying the United States for34 years.

“The problem is we can’t get itall out of the ground,” Hickssaid. “We’re talking only about1.5 percent recovery in today’stechnology. That’s going to giveus a little over 2 billion barrelsof oil.”

To put that into perspective, todate, oil producers haven't yetproduced 2 billion barrels since1951 when oil was first discov-ered in the state.

The Bakken is expected to pro-duce 2.6 billion of recoverableoil in North Dakota, which ispart of the largest continuousresource ever assessed in thelower 48 states, according to theU.S. Geological Survey.

Hicks: North Dakota excels at oil production


Bruce Hicks, the deputy director of North Dakota Oil and Gas Division, speaks during the MonDak Energy Al-liance meeting held in Williston, N.D.

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Richard Bogaard, secretary and treas-urer of Dakota Oil Processing LLC, does-n’t deny that the planned construction ofa diesel topping plant located near Tren-ton, N.D., is in its early stages.

“Now is the time to get feedback on theidea and gain momentum in favor of theproject,” Boggard said April 6 at a meet-ing of the MonDak Energy Alliance inWilliston, N.D.

That, however, is no reason to not belooking ahead to the possibilities involvedwith the facility.

“This would be a huge asset to bothNorth Dakota and Montana’s oil and gasindustries,” Bogaard said. “Everyone wehave talked to about the plant is very opti-mistic. A lot of people are very excitedabout it.”

With Montana and North Dakota beingtwo of the top oil-producing states in thenation, there needs to be somewhere toproduce the oil locally, Boggard said.

“There’s no reason we should be send-ing our oil out of state or depend on othernations for our diesel. It makes completesense to have a diesel topping facility in

this area,” he said.A tentative timeline for the project is

two years. The three major stages for theproject are fundraising, engineering andthe manufacturing of the plant. Current-ly, they are raising money from interestedinvestors to get the engineering underway. To go ahead with the engineeringprocess, $6.9 million must be raised first.

“The goal is to have the money in thenext six months,” Bogaard said. “It willtake about six months for engineeringand a year to construct the facility.”

Bogaard expects the plant, that wouldproduce both diesel number one and two,to cost around $200 million. He has beenapproached by two companies that haveshown interest in investing into the plant,but if at possible, Bogaard would like tokeep the project a locally-funded one.

The state-of-the-art facility will be some-thing completely new to the area, Bor-gaard said. The plant will have the abilityto produce as much as 20,000 barrels in asingle day.

“I am sure this facility would be a greatinvestment and opportunity for the entireMonDak region,” he said.

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horizontal drilling and hy-draulic fracturing.

The rig and the crew whichshow up on the land will be slight-ly larger when the hydraulic frac-turing actually occurs. It looks asif a small town has sprouted inthe middle of farmland, hills,mountains. Trucks and trucks ofwater, trucks of equipment andcrew men walking around mak-ing sure the operation runssmoothly.

The well is drilled and complet-ed. A pump jack or tree is put onthe top, and before you know it oilstarts being pumped to the sur-face.

Time passes. More time passes.“With all wells, over time, produc-tion declines,” said RickMuncrief, senior vice presidentof operations for Continental Re-source, a major player inBakken/Three Forks production.“Generally speaking, wells canhave a production life that lastsdecades.”

As an example, a well drilled in-

to the Bakken could start produc-ing 600 barrels of oil per day[bpd]. After a couple of years,production may drop to 300. Acouple of more years pass; theproduction then drops lower than100.

“There are a couple things acompany will try,” Tom Rich-mond, president of the MontanaBoard of Oil and Gas Conserva-tion, said. They might try tochange the pump sizes. Convertthe well to a fresh water well or awater disposal well, re-stimulatethe well or try enhanced oil re-covery.

ENHANCED OIL RECOVERYOne of the first steps that an oil

and gas company will take, or atleast evaluate, is enhanced oil re-covery.

“There’s about three to four dif-ferent processes they can try inenhanced oil recovery,” Rich-mond said. They include carbondioxide flooding, hi pressure airor water flooding.

This process may take place

within the first decade of thewell’s life.

RE-STIMULATION A well may also be restimulat-

ed. For the Bakken and ThreeForks/Sanish wells this will mostoften mean refracturing or re-fracing at various intervals andon various laterals. The wells willgo down almost two miles, andthen, will go out horizontally,what is known as a lateral leg.Wells may have more than one.These laterals are each fractured.Early hydraulic fracturing tech-niques used in the Bakken weregeneral one big fracture. Now,however, they are fractured inisolated intervals throughout thelateral.

However, every well and everyplay within a reservoir are differ-ent. The companies operatingthese wells are also different. De-pending on their evaluations of awell, some companies may re-fraca well that had only one originalfrac within the well’s first fiveyears.

Moncrief says that across thecountry it’s typical for restimula-tion to occur between the eighth

and the 15th year of the well’s life.

DRILLING INTO A DIFFERENT ZONE“In the Williston Basin, there

are multiple pays a well bore willdrill through,” Moncrief ex-plains. These different pays,zones in the geology of the wellwhere oil can be recovered, canbe drilled into from the same wellbore. Moncrief explains that theoriginal zone will be plugged off,and the well will be recompletedin a different zone.

“Wells can have a productivelife for decades,” Moncrief said,adding that because of the natureof the Bakken reservoirs, mostwells do and will produce for along time.

Companies will try a variety ofeconomically viable techniquesto keep a well producing.

However, there is another rea-son to keep the well in produc-tion. In addition to the revenue itmay add to the company, keepinga well producing at a low produc-tion can enable the companies tohold onto their leases.

“People that have the acreage,have the best position in a boom-ing reservoir, Moncrief ex-

plained. The Williston Basin is aperfect example. Producing at rel-atively low levels, with a highpoint in the early 80s, it was gen-erally passed off by many pro-ducers. In early 2000, the reser-voir started to show promise. Theproducers who went in early andleased the acres have had theprime positions and have thus be-come the most successful.

“It’s how we pay salaries andthe landowners,” Moncrief said.

THE END OF THE WELLThe longevity of an oil and gas

well will vary greatly dependingon the geology of the area and theformation. The initial productionmay be high, but at some time, itwill start to decline.

Is there anything that can bedone to get the well producing atan economical level? The answersare no, no, no. Larson says this isthe well’s final discussion. Thewell no longer pays.

It is at this point the well will fi-nally be plugged and abandoned.

The time it takes to plug thewell normally takes a day. If thelandowner wants, the well maybe turned into a fresh water well.


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Well: Wells can in be production for decadesFROM PAGE 15

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technology overlapped. Al-most all of the early wellsdrilled outside of the“sweet spots” producedsome oil, but the drillingand completion technolo-gies were not sufficient tojustify continued develop-ment and the expansionstalled.

Rather than continue totest the limits of theBakken play, companies in-stead focused on develop-ment within and aroundthe “sweet spots.” As theydid so, they started to ex-periment with drillingtechniques and implement-ed new completion tech-nologies in an effort tomaximize recovery. As theexperimentation contin-ued, more and more com-panies began to use multi-stage completion systemswith very good results. Inthe middle of 2009, a coupleof the companies decidedto again try their luck in

the middle of the basinusing these new and im-proved completions sys-tems. The initial effortswere encouraging as com-panies utilized 7-10 stagesin their completions withimproved results over theearly single stage fracturestimulations. Rememberthat each stage of a com-pletion is isolated over aparticular portion of thehorizontal hole, so morestages means more effec-tive stimulation of agreater rock volume. Com-panies are now utilizing 20-30 stages in their most re-cent completions, the re-sults have been consistent-ly good, and the pace of de-velopment has acceleratedrapidly.

As development hasmoved away from the“sweet spots” and into oth-er parts of the basin, moreand more operators havepicked up leases and arestarting to drill wells. Cur-

rently, more than 35 differ-ent operators either havedrilling rigs active in theWilliston Basin, or haveannounced plans to have arig active in the near fu-ture. Expansion of the playinto other parts of thebasin, as well as the in-crease in active industryparticipants, has meant adramatic increase in theoverall activity levels.

IS IT HERE TO STAY?That answer will depend

on a number of factors thatonly fools try to predict. Itis certain, however, thatthe Bakken is a world classpetroleum system and, giv-en the low price of naturalgas, the one certainty to-day is that oil is a preferredcommodity by many com-panies. Since the Bakken isthe king of domestic oil, Iwould guess things will re-main interesting aroundthe area for quite sometime.

Ursa Resources GroupLLC is a privately heldcompany focused on leas-ing, drilling and develop-ment of the Bakken andThree Forks Formations inMontana and North Dako-ta. The principals at Ursahave a deep understandingof shale drilling and devel-opment, and have drilledand completed hundreds of

horizontal wells utilizingmulti-stage systems in oth-er basins around the Unit-ed States. In total, mem-bers of the team have near-ly 100 years of experience,most of them focused onthe science and technolo-gies necessary to maxi-mize well results in theBakken.

Ursa is actively leasing

in Richland and Rooseveltcounties in Montana andin McKenzie, Williams andBillings counties in NorthDakota.

Ursa Resources Group LLC canbe contacted at 713-456-3000 orby e-mail [email protected], or visitthe company online athttp://www.ursaresources.com

Bakken: technology increases activity in MonDak areaFROM PAGE 18

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What started as a one-man operation has in timegrown into a successful oilfield service business serv-ing Sidney and the sur-rounding area. Sevenyears ago, Jay Reedbrought Hanson Hot OilService, based in WatfordCity, N.D., to the area withsuccessful results.

“When I started, it wasjust me and one truck,”Reed, the manager of theSidney branch of HansonHot Oil Service, said.“Right away, people didn’tknow if the businesswould work here or not.”

It didn’t take long for thecompany to add two addi-tional trucks at the Sidneylocation and seeing contin-ued growth in the busi-ness.

“Within six months ofstarting in Sidney, we be-

gan to get quite a fewjobs,” Reed said. “Thebusiness really grew in thefirst year, and we’ve beenbusy ever since.”

The early success wasdue to the long hours andhard work put in by Reed,who has worked in the oilfield for 31 years. “Heworked so much early on,”Linda, Jay’s wife, said. “Allthe effort he put in really

paid off.”As time went on, Jay be-

came the manager of theSidney branch. While hestill fills in if needed, Reedspends much of his timeoverseeing the entire oper-ation and assisting work-ers with anything theymay need. The transitioninto the position was not adifficult one for Jay.

“It was easy for me. I re-ally like being my ownboss and to be able to keeptabs on the trucks,” hesaid.

In the past several years,the business has taken ona family dynamic as Jayand Linda’s sons, Josh andJamie, have moved hometo work for Hanson Hot OilService. Josh, who was amechanic in Twin Falls,Idaho., and came back towork in Sidney three yearsago while Jamie, who livedin Billings and was em-ployed by a roofing compa-ny, began at Hanson HotOil Service nearly a year

ago.The experience has been

a positive one for the en-tire family. “It has gone re-ally well,” Jay said. “It’sbeen very nice, because itcan be tough to find goodworkers.”

Josh and Jamie are alsopleased with how thingshave worked out, Lindasaid. “I think they are hap-py to be back home. It’sbeen a good opportunityfor them in a number ofways. I’m very proud ofthem.”

While Linda is happy tohave her two sons backhome, she can’t help butworry for the safety of herfamily.

“It’s a very dangerousjob, especially in the win-ter,” she said. “But safetyis extremely important toJay. He takes all the pre-cautions possible to ensurehis employees are safe.”

Reed builds Hanson Hot Oilin Sidney with help from sons

SEE REED | PAGE 44

HARRY LIPSIEA | SIDNEY HERALD

Jay Reed brought Hanson Hot Oil Service to Sidney sevenyears ago with one truck. The company has added two addi-tional trucks.

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“Adjusting to the economic environ-ment is always a challenge. Right now,we’re gearing up for a big summer.That’s what we’re expecting.”

Another adjustment is recording allthe ongoing federal requirements beingmade regarding safety. “That requires alot more documentation. That’s compa-ny-wide, that’s not just me.”

With Mitchell’s working in both Mon-tana and North Dakota, Norby has to beextremely aware of the different taxstructures in each state. “That’s some-thing fairly new to us,” she said.Mitchell’s has Montana offices in Sid-ney, Baker and Glendive and NorthDakota offices in Watford City, Killdeerand Bowman.

Outside the office, Norby is busy withorganizations that she hopes makes hercommunity a better place to live.

She is one of the leaders of MentorMoms, a breastfeeding support group.

“Our main goal is to get informationout to moms who want to breastfeed,”Norby said. “And we give support how-ever we can to those that breastfeed.”

The organization relies on volunteersas well as a small grant from the Foun-dation for Community Care.

Norby is currently serving her thirdyear as treasurer for the Sidney AreaChamber of Commerce and Agricul-ture’s board of directors.

She explains she was working in aCPA office when the Chamber ap-proached her about being on the board.

“I’ve learned a lot from being on theboard,” Norby said. “I’ve figured outwhere I can fit in to do my part forRichland County.”

She’s glad she got to work with boardmembers close to her age such as MarciAlbin, Lisa Aisenbrey and Ben Larsonas well as having the chance to networkwith more experienced individuals.

“Everything is improved when we’reunited,” Norby said of the chamber ofcommerce. “When you have a groupwho want to all bring more businesshere, they can accomplish those goalstogether.”

After nearing the end of her firstterm on the board, Norby plans to con-tinue for another stint.

“As long as my job at Mitchell’s al-lows it,” she noted. “Mitchell’s is verygood at supporting the community.”

Norby is a member of the chamber’smembership committee and is agradute of the chamber’s leadershipclass program.

In the class, she learned about chal-lenges facing the area such as housingand infrastructure. “The more you’reconnected with different organizations,the easier you can work together.”

With two young daughters, and an-other on the way, her schedule has in-creased to such functions as preschool,Mini-Eaglettes, dance class and T-ballgames. “We’ve already started to run.That is why we moved here so our kidscan participate in those activities.”

Her husband, Jeremy, is also extreme-ly active in programs ranging from theSidney Community Education Founda-tion to emergency medical care tomen’s city basketball.

“In Sidney, you can be involved in alot of things,” Lorilee said. “It was abig draw for our family, that’s for sure.”

Norby: Having young family will lead to more activities for herFROM PAGE 11

Hanson Hot Oil Service has had noaccidents in its seven years in Sidney.“I am very proud of our record,” Jaysaid. “The job is only as dangerous asyou make it. It’s important to complywith all of the regulations and to keepyour equipment up to date.”

Josh and Jamie each have broughtdifferent strengths with them to thebusiness. Josh has a strong set of tech-nical skills, and Jamie has a good busi-ness mind, Linda said.

“They both balance each other verywell. I think that’s why it has workedout so well,” she said.

Both sons have one thing in common,“They’re very hard workers,” Jay said.

As for the future, there is no reasonto think it is anything but bright forHanson Hot Oil Service in Sidney.

“I am happy how it’s all worked out,and now we’re excited to see what’s tocome,” Jay said.

Reed: Family membersworking well togetherFROM PAGE 42

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Continental Resources is a crude-oilconcentrated independent oil and naturalgas exploration and production companywith operations in Rocky Mountain, Mid-Continent and Gulf Coast regions of theUnited States. The company focuses itsoperations in large new and developingresource plays where horizontal drilling,advanced fracture stimulation and en-hanced recovery technologies provide themeans to economically develop and pro-duce oil and natural gas reserves from un-conventional formations. In Sidney, Con-tinental Resources is active in the Rich-land County Bakken field and has to date,45 full-time employees.

But did you know Continental Re-sources Inc. gives back to the communi-ties in which it has area offices in theBakken field? Through the local foodbanks and also area schools, ContinentalResources is giving back to the communi-ty.

Last year, the Schlumberger Company,based in Williston, N.D., gave in a roundabout way. Schlumberger is a vendor of

Continental Resources, and every year itgives Christmas goodies such as meat andcheese trays to those it does businesswith. The company asked Continental ifit would like to give up the goodie trays sothat a lump sum may be given to area foodbanks, which is just what Continental did.

“We opted to give up the goodies in or-der to help out the food bank,” RussellAtkins, area supervisor for ContinentalResources, said. “Five-hundred dollars isa lot of canned goods. That was a nice lit-tle deal. A different deal than what we’veever done before.”

Another way Continental has takencare of the community is by supportinglocal schools, providing backpacks filledwith supplies to elementary students inRichland County and McKenzie County’sEast Fairview School.

“Supporting youth and education in ourcommunity has been a priority for Conti-nental Resources,” Atkins said. “Servingas an active member of the communitywhere we operate is an important value ofour company. We have been here sixyears, and we look forward to providingcivic leadership for a long time to come.”

Continental Resources will also provide

students in North Dakota with at least 800filled backpacks, along with continuingits mission for Richland County’s stu-dents for the 2010-2011 school year. “We doimpact the area,” Atkins said. “We bringjobs and hopefully, a good place to work.These jobs bring a lot of money in thearea. These employees do their shoppinghere in Sidney, or in our basin. That inturn helps us all.”

Continental Resources, as most compa-nies in the industry, pay attention to edu-cation in academics such as math and sci-ences. If you’re in the industry, it’s most

likely that some of what the job entails isnumbers and working with math/science.“We’re competing with Pakistan, Chinaand Japan. Those guys are good,” Atkinssaid. “I work with them. This companywants to see to it that we take care of ourfuture employees – our students. Corpo-rate guidance covers what our area of-fices do – we give back.”

Giving also means donating to the Cros-by Hospital, as Continental Resources isworking on right now. Sometimes a com-pany doesn’t have time to get a manshipped or another family member to adifferent hospital miles away. “We’ve gotto make sure we’ve got a good medicalteam for our communities, which in-cludes Crosby, as it flows right throughour heavy traffic area (Bakken play) inthe industry,” Atkins said.

If you work in this industry you maynot see a state line anymore, as it’s a dailycommute to different sites. Atkins is onethat doesn’t really see a border betweenstates (Montana/North Dakota) anymore,and he says, “We have to take care of ourown, and our industry is throughout east-ern Montana and much of western NorthDakota. I’m proud of Montana. I was bornand raised in Cut Bank, but the companyI work with covers this entire area.”

Continental Resources has 13 rigs inplace at this time, 19 rigs in place by June2010, and as a company, Atkin says, “It’sgood that we give back. We employ the lo-cals, which includes 45 employees in theBakken play. We’ve been in Sidney for sixyears now and that’s not bad, consideringwe started out with a pickup and one full-time employee.”

As long as Continental Resources ishard at work, the communities it reacheswill also reap the rewards. For more infor-mation about Continental Resources, goto www.contres.com

[email protected]


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Continental Resources believes in giving back to community

Russell Atkins, area supervisor for Conti-nental Resources, left, makes a backpackdonation to Sidney Superintendent ofSchools Daniel Farr.

A COMMITMENT TOQualityBrian R. Bjella Ken G. Hedge Adam M. Olschlager

Colby L. Branch John R. Lee Fred C. Rathert

Gary G. Broeder Molly A. Litzen Garth Sjue

Craig B. Burns Wade C. Mann Kristen M. Sjue

Christopher D. Friez John W. Morrison Craig C. Smith

Shane A. Hanson Jennifer M. Nasner Paul W. Summers

North Dakota Contacts

North Dakota Offices:

400 East Broadway, Suite 600, P.O. Box 2798,

Bismarck, ND 58501-4013 • 701-223-6585

111 East Broadway, P.O. Box 1206,

Williston, ND 58802-1206 • 701-572-2200

Montana Offices:490 North 31st Street, Ste. 500,

P.O. Box 2529, Billings, MT 59103-2529 • 406-252-344145 Discovery Drive,

P.O. Box 10969, Bozeman, MT 59719-0969 • 406-556-1433100 North Park Avenue, Ste 300,

P.O. Box 797, Helena, MT 59624-0797 • 406-449-4164431 First Avenue West,

P.O. Box 759, Kalispell, MT 59903-0759 • 406-752-6644305 South 4th Street East, Ste 100,

P.O. Box 7099, Missoula, MT 59807-7099 • 406-523-3600

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CommentaryBY TRAVIS KAVULLAPSC CANDIDATE

Here is a puzzling couplet of contradicto-ry decisions from the Obama administra-tion.

Last month, the Bureau of Land Man-agement switched sides in an environmen-tal lawsuit before the Missoula-basedJudge Don Molloy (the greenest judge inthe West). BLM announced 61 drilling leas-es on federal land would be cancelled and,for the first time ever, the reason given wasthe drilling process’ release of greenhousegases into the atmosphere. The decisionputs tens of thousands of acres of otherdrilling leases into question.

Then something strange and starklyhypocritical happened. In a much-publi-cized announcement, President Obama de-clared on March 31 that he was re-openingthe eastern seaboard of the United Statesto drilling. It was necessary, he said, to se-cure America’s energy independence.

The obvious question is: What gives? I’m not much into conspiracy theories,

but I am willing to accept the premise thatObama’s tactic is calibrated to make him

look the best to all worlds. Drilling off theeastern seaboard may never happen – Con-gress could act and the EPA could tie it up– and even in the best scenario, no drillingwill happen for years.

Environmentalist groups know this, andexpressed their dislike of Obama’s move –but not too loudly. After all, they’d just wonthe drilling-leases lawsuit, a wink to themthat was not reported with anything nearthe decibel level Obama’s announcementfor drilling was given. Meanwhile, outletslike the Houston Chronicle were bluffed in-to praising Obama for his action on off-shore drilling (or, rather, his suggestionthat some action should occur).

Call me a cynic, but I find Obama’scourse of action dishonest at best. Thepresident could have single-handedly in-tervened to stop the removal of energy-rich public lands in Montana from produc-tive use. He chose not to. But now he pro-poses an idea which is virtually impossi-ble, hoping to take credit for its seemingboldness.

Really, the course we should be takingwith respect to energy policy is rather ob-vious: Develop wherever we can, as quick-ly as we can. Our competitors in the worldhave not pussyfooted around their energy

future. They’ve realized controlling andexploiting the first commodity on thechain of production is essential to havinga secure and growing economy. But Ameri-cans have been squeamish about develop-ment, and in some areas – like the near-moratorium on power plants fired by coal,our most abundant resource – we have ut-terly ground to a halt.

The president has enormous sway whenit comes to energy matters, if only becausehe and his secretary of interior representthe nation’s largest landowner, which I amsad to say is the federal government. Addto that the federal power over environmen-tal aspects of drilling, no matter whoseland it is, and you have a situation wherethe president’s clear “yes” or clear “no”counts enormously. There is little questionthat, with the stroke of his pen, Obamacould open up hundreds of thousands ofacres of federal land to drilling. But todate, Obama’s seriousness about achievingenergy independence has lacked clarity.

Of course it is not just the feds to blame.The state of Montana profits enormouslybecause of the oil development occurringin the northeastern part of the state. Yet,the state government has not shown dueappreciation for this area’s resources. If it

had, we would look a lot more like NorthDakota – where more than 100 drilling rigsare stationed, as opposed to the paltry half-dozen or so West of the boundary line. InJanuary, when the Legislature is in sessionat Helena, I hope lawmakers will be madeto realize that one could achieve muchmore revenue in the long term with a low-er tax rate, because such a rate will inspiremore development. Let’s hope they resistthe temptation to pick the route of imme-diate taxes in the short term. Such an ap-proach will put Montana at a further com-petitive disadvantage with North Dakotaand Saskatchewan.

Oil is going to be in demand for at least ageneration and probably longer. This is acommodity which must come from some-where. Can we imagine China or SaudiArabia or even Canada to have its oil in-dustry overcome by a petty and self-defeat-ing concern over the drilling process’ re-lease of “greenhouse gases”? I think not.Neither should we. It is well past time toend the double-speak on oil.

Travis Kavulla is a Republican candidate for Mon-tana Public Service Commission, and a writer who hasworked for National Review and Fox. He lives near Belt.

Trying to figure out Obama’s double talk regarding oil policy

SK & SOILFIELD SERVICES, Inc.

701-572-7698Fax: 701-774-8628 • [email protected]

PO Box 1797, Williston, ND 58802-1797

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Gene Trudell • Owner Operator406-482-3800 (Home) • 406-480-1202 (Cell)35013 County Road 126 • Sidney, MT 59270

“An Hour’s Workfor an Hour’s Wage”


BY MAX BAUCUSU.S. SENATOR

Montana’s expansive landscape pro-vides us with an outdoor lifestyle like noother. It also gives us more than just aplace to enjoy. It provides us with naturalresources unmatched by any other state.The oil in eastern Montana’s Bakken For-mation is one of our state’s most valuableresources, one that needs to be celebratedand utilized.

FINDING SOLUTIONS FOR MONTANAMontana has a bright future in energy

production, and that means more good-paying jobs for Montanans. Everydayfolks in Sidney and in eastern Montanaare doing their part to increase domesticoil production in a safe and effective way.

As a part of these efforts to boost do-mestic energy production responsibly,I’m working to ensure we provide tax in-centives for coal-fired power plants thatcapture and sequester their carbon out-

puts through innovative new technolo-gies. CO2 captured from these powerplants could then be injected into exist-ing oil wells for enhanced oil recovery,thereby increasing our domestic oil pro-duction.

We must also invest in new resourcesand technology. Montana’s universitiesand research facilities must be a leaderin these efforts, blazing a trail to find themost effective, cost-efficient way to ex-tract these resources while protectingour outdoor heritage. That’s why I’mworking to find funding to keep our re-search facilities and schools among thebest in the world.

PROTECTING OUR SAFETYIt’s clear that America needs to reduce

its dependence on foreign oil, but the re-ality of this task is complicated. In addi-tion to making sure Montana’s reservesare part of the solution, it also means

Baucus says state’s oil leadingthe way to energy security

SEE BAUCUS | PAGE 50

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drilling for oil offshore on the outer con-tinental shelf.

KEEPING OUR MOMENTUMWhile great strides have been made to-

ward ensuring America’s energy inde-pendence, we must still do more to devel-op our domestic energy sources. Mon-tana has the unique opportunity to leadthe way in opening additional areas to oildrilling while honoring our country’soutdoor heritage and protecting its natu-ral beauty.

Oil is a huge part of our energy supplyand will continue to play a large role nowand into the future. Developing our vastoil resources will help Montana remainat the forefront and keep our economystable during these uncertain times bycreating jobs and keeping them in Mon-tana. Supporting the research and tech-nology development in these areas willkeep good-paying jobs in Montana andwill show the world that Montana is com-mitted to effective, safe energy produc-tion. Together we are moving forward toa bright future.

Baucus: Support needed for research, technology developmentFROM PAGE 49

2,000,0001,800,0001,600,0001,400,0001,200,0001,000,000

800,000

600,000

400,000

200,0000

1986

1987

1988 19

89 1990

1991

1992

1993 19

94 1995

1996 19

9719

9819

9920

0020

01 2002

2003

2004 20

0520

0620

0720

0820

09

Information provided by Montana Board of Oil and Gas

Richland County production, December 1986 through 2009

Ba

rrel

sp

erm

on

th

Year

Call 701-572-8345or 701-572-8393

RED RIVER SUPPLRED RIVER SUPPLYY, INC., INC.•Bulk and Bagged Transportation•Calcium Chloride Water•Calcium Chloride Pellets•Calcium Bromide Water•Bulk and Bagged Salt•Bulk Flyash•Liquid Storage Rental Available•Warehousing for NOV Drilling Fluids

and Newpark Drilling Fluids

1-800-735-4934Rich Vestal Cell:

701-770-0080Kathy Vestal Cell:

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P.O. Box 11461202 E. Broadway

Williston, ND 58802-1146


Continental Resources is proud

of its leadership in the Bakken

Shale, with 652,000 net acres in

the #1 crude oil play in the lower

48 United States.*

We are accelerating our growth in North Dakota,

having increased to 11 operated rigs with a goal of

15 by mid-2010.

Innovation — Continental Firsts:

• We were the first to drill the Three

Forks zone in 2008.

• We were the first to initiate dual zone

development of the Middle Bakken

and Three Forks zones with Mathistad

2-35H in 2009.

• In 2010, we have begun drilling on the

ECO-Pad™ concept, which reduces

environmental impact while increasing

well productivity.

These milestones are characteristic of Continental’s

history as a leader in the explorationand production

of unconventional crude oil and natural gas resources

in the United States. With our success, we’ve grown

to become the third largest oil producer in the Rocky

Mountains.

From our founding 43 years ago in Enid,Oklahoma,

we have built a consistent record of finding significant

new crude oil and natural gas resources, harvesting

them in an environmentally responsible manner, and

investing in the communities where we work and live.

With our excellent, growing team of employees, we

are building an even brighter future for Continental

Resources in North Dakota.

Good Plays KeepGetting Better

The Bakken Keeps Growing

*USGS assessment

www.contres.com • (406) 433-30063001 Red River Drive • Sidney, MT 59270

A Domestic Energy Producer

T


Tappin' The Bakken

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