Board member Leslie Messer presents former Sidney Mayor Brett Smelser with a thank you gift in recognition of his status as a founding member of the MonDak Energy Alliance.
The MonDak Energy Alliance held their February meeting Thursday, February 12, 2015 at the Williston Grand Hotel and Conference Center. The overall topic of the evening was current and future energy development.
The meeting was called to order by Williston Mayor Howard Klug who is a co-chair of the board followed by Sidney Mayor Rick Norby, also a co-chair of the board, who gave an update on the MonDak Energy Alliance. Recognition Awards were presented to four founding members: Bret Smelser, former Mayor of Sidney, E. Ward Koeser, former Mayor of Williston, Mel Falcon with Dakota Oil Processing, LLC, and Tom Rolfstad, former Executive Director of Williston Economic Development.
Stephen McNally, General Manager of the Hess Corporation out of Minot, ND, talked about the current situation in the oil-field, that they are currently producing about 100,000 barrels of oil net per day and that the company has 1,000 direct employees and another 2,000 indirect employees in the field. He spoke about preparation for future years saying, "We believe that oil prices will turn around; as supply and demand curves it will balance out in an estimated six months to two years."
For 2015 the company plans on investing in infrastructure such as the Tioga Rail Terminal Currently operating nine crude oil sets, they plan on purchasing five more trains within the year. The Hawkeye Compression Project, Tioga Gas Plant, and pad drilling were all topics with the current plan for pad drilling being based on a 7/8 spacing, however if 9/8 spacing pilots are successful the future count could increase.
"There is tremendous value in the ground," McNally noted and commended the area officials by saying, "North Dakota is unusual in that your civil servants are all incredibly friendly and civil." He went on to say that while his career had taken him all over the world, he was impressed with the people in the area and their commitment.
Cindy Sanford, Manager of the Williston Job Service was next up, discussing that she has seen no big lay-offs, no super-commuters, and plenty of skilled laborers getting jobs in the area. As of February 11, 2015 she said that there are 1,912 jobs in the area that still need to be filled.
She commented on the number of qualified people who are finding work saying, "It is unbelievable the number of educated people out here and we are servicing more people all the time."
Western Area Water Supply Project (WAWSP) Coordinator, Cory Chorne out of Bismark, ND addressed rural infrastructure in the form of distribution lines being one of their top priorities. He spoke about the partnership between WAWSP and the City of Williston as the city has access to the Missouri River and can meet the large water supply need and is also contracted to do all of the water treatment. WAWSP supplies water to the Ray, Tioga, Stanley and Watford City areas, and in 2014 averaged 7.1 million gallons daily. The WAWSP has added $180 million in assets since 2011 and has submitted a $120 million request to the ND legislature to continue with infrastructure in the area, bringing the total project cost to $360 million.
Chorne also added that they saw an opportunity in supplying water to the oilfield in addition to domestic water because the cost for oilfield service is higher and has controlled domestic rates.
Dennis Haider, Executive Vice President of Business Development with MDU Resources Group, Inc., talked about the beginnings of MDU as a company which started in Wibaux, MT 91 years ago. They are currently present in 44 states and surpassed 1 million customers in 2013. MDU's plans for 2015 include enhancements to infrastructure, finishing the refinery they are currently working on with a potential for a second and pursuing value added projects and specifically noted that MDU intends on putting an excess of $50 million dollars into the Sidney community in the form of two projects. He regarding pollution control and the other in the form of a gas refinery.
Anyone who is interested in learning more about the MonDak Energy Alliance, can visit their website at http://www.MonDakEnergy.com.
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