.

Williston development continues to ease the housing crunch

2008-06-19T15:33:00.000-05:00

A blighted trailer park can become a master planned oil industry housing complex in a vision offered to the City of Williston by Mike Marcil of the Marcil Group of Fargo. "We tend to think onesies-twosies in North Dakota, when we should be thinking master planned developments," Marcil said Tuesday. The Williston City Commission Tuesday night took the first step toward making Marcil's vision a reality, by agreeing to negotiate a purchase agreement on 17.7 acres of the former Cimarron Trailer Park. The commission set a deadline of June 20 for the negotiations. The deal is contingent on the construction of at least two more 36-plex apartment buildings like the one opening this month in Marcil's Bakken Heights, bringing to 144 the total number of units through this phase of the project. "We got the idea because we built a senior living facility just like this in Fargo," Marcil said, but he sees the concept as totally adaptable to the unique needs of oil service companies who more and more are having to provide housing as an incentive to attract workers. Ultimately, Marcil envisions up to 5 phases and a total of as many as 360 apartments, including a public community center including food services, recreation, entertainment and social spaces, to name but a few amenities. These would be luxury apartments, fully furnished, with maid service. His vision would cater exclusively to the needs of oil field service companies willing to fix the costs of housing for their workers by signing master leases of five years. "It's a city within a city. Not a sequestered city, but an industry supported city." Such a concept is not unprecedented. Marcil points out that oil companies are accustomed to moving into remote areas in other parts of the world and literally raising cities out of sand. The beauty of Marcil's plan, as he envisions it, is that industry bears much of the burden for helping to develop housing, instead of local or state government. "The industry needs to be financially committed to those units in order for us to make the investment," he said. In exchange, he would like to see the state offer a tax credit for energy service companies who partner on projects that help expand the stock of housing in North Dakota. He believes such a project will relieve the inflationary stress on the local housing market and workers who aren't making oil field wages, by meeting a pent up demand. "This is Texas-style vision. We're talking about fundamentally changing the landscape and economy of western North Dakota," Marcil said. "We can't do this piece-meal." The purchase price is $156,477, which is equal to the price per square foot agreed upon for the purchase of Sand Creek Trailer Park last year. Marcil estimates the cost of development of the next two 36-plex apartments at up to $6 million. He would remove the old unusable infrastructure in the old trailer park and install new utilities, water, sewer and pavement. The sale of the land is contingent upon the project qualifying for tax increment financing. Tax increment financing is not a tax exemption, however the taxes paid on the property would go toward improvement on the site for a limited period of time. Once the improvements are paid off, local government entities would begin receiving much greater revenues than they would have without the project. The property is generating no tax income now. The commission agreed to negotiate the final terms of the agreement by June 20, which may include a limited amount of tax increment financing. The commission also agreed to request proposals from other companies for the development of the remaining 60 acres of the Cimarron Trailer Park, with specific details of the request to be ironed out by the June 24 commission meeting. "Since Build Williston Day we've had a great deal of interest from developers. Hopefully this RFP will provide for a mix of housing solutions for the community," said Tom Rolfstad, economic development director.

Williston Grows to the West

2008-06-19T15:28:00.001-05:00

So much is happening in the way of industrial development in Williston, it's hard to keep up. But when one local realtor stopped to consider this week, he counted five new buildings for either new or existing oil field service businesses in the past year, with two more companies on the way. "There's probably more companies coming here than Minot," said Craig McIvor, they just haven't sought out publicity. McIvor has handled the sales of a number of parcels recently, developed by Williston's Abe Owan. Several of the companies have located in a new subdivision in Judson Township, about seven miles west of Williston, referred to commonly as the "Judson Township Industrial Park." "Knight Oil located here last fall," purchasing about 20 acres. They're operating in a 30,000 square foot shop. Quail Tools, a company that rents oil field tools, opened this spring. Pat's Offroad, another oil field service company, which heats water for big facturing jobs, is building in the same area. "Stallion built a new facility," said McIvor, four miles west and 1 mile south of Williston, where they will be moving their operation in September. That area is referred to as the "Stallion Subdvision." Nearby, west of Lindsey Implement, Thomas Tool is beginning groundwork and hopes to start building this month. "These are big companies," McIvor said, and they've all made major investments to do business in Williston. The Sunset Subdivision where Thomas Tool is locating contains 80 acres of commercial and 45 acres of residential land for development, so there's room for growth. None of these companies have sought incentives or public funding of any kind to locate in Williston, McIvor said. McIvor handles the sales of land and buildings, while Owan develops the properties. McIvor said two more companies are on the way, planning to set up shop in the Sunset Subdivision, but representatives for those companies have chosen not to be identified by name at this time.

Sanjel USA has new shop in Williston

2008-06-19T15:23:00.000-05:00

Sanjel Has a 26-year history in the oil field service industry in Canada, but it's only recently the company has had a higher profile in Williston. Sanjel USA opened a new 55,000 square foot shop on 15 acres on the east edge of Williston earlier this year. The shop includes eight truck maintenance and repair bays, a truck washing station, wet and dry material storage, and offices. "We plan to have an open house," said Kevin Corcoran, district service line manager, but it's easy to keep putting that off. Could be, they're too busy. Sanjel's Williston team supports all five of Sanjel's service lines, including acidizing, cementing, coiled tubing, fracturing and nitrogen services. The Williston District office is one of six in the United States, servicing the Rocky Mountain Region. The Williston district covers an area from Buffalo, S.D. to Sherwood, N.D., Corcoran said. They employ 55 workers out of the Williston shop, and they need more. Corcoran hesitates to give a starting wage because people move up fast at Sanjel. "The growth is, how fast do you want to move up? " he said. The company recruits across the state and the nation. He encourages people to check out websites like www.rigzone.com, or any one of a half dozen other firms who recruit oil field workers, but he'll also talk to people who walk in the door. The company's website, www.sanjel.com, also has career information. "If they've got a CDL they can come to work," Corcoran said. Any other necessary training is done on the job. Most of Sanjel's jobs involve hauling equipment to oil rig sites, which is why the driving background is so important. Once on site, Sanjel employees conduct the service work necessary with the tools and materials they bring with them. Each rig may be visited at one or more stages during drilling. They might put in surface pipe at 2,100 feet, for example, then come back to install intermediate pipe later. Interest from prospective employees comes from across the nation. "I've got a phone interview with a guy in Pennsylvania tomorrow," Corcoran said last week. Sanjel is a privately owned, Canadian-based firm, founded in Lac Labiche, Alberta. The company has had a presence in Williston since 1999. "The Williston community has been very supportive of our company and operations," said Shawn Reed, vice president of Sanjel USA, in a press release announcing the opening of the Williston District Office. "Williston's location within the Rocky Mountain Region is strategic to our company's operations and has definitely furthered our presence and expansion throughout the region," he added. In the oil field service business himself since 1990, Corcoran sees a bright future ahead at Sanjel USA. "We're going to continue to grow," he said, because there's plenty of work to go around.

2008-05-12T09:04:00.000-05:00

The Williston Basin will benefit from increased oil exploration over a period that could last nearly two decades, according to information released Monday by North Dakota's Department of Mineral Resources.

"It will take us almost 19 years to drill up the thermally mature area of the Bakken," said Lynn Helms, DMR director, based on the number of rigs currently operating.
"That was, to me, the catch of the day," said Williston Mayor Ward Koeser, who was among the estimated 1,200 people in attendance at the annual Williston Basin Petroleum Conference and Expo in Minot, where the announcement was made.

The new state estimate, Koeser said, puts a whole new perspective on the need for increased housing development and worker recruitment.

Helms said the amount of oil recoverable from the Bakken in North Dakota is
2.1 billion barrels, but the total of oil in place could be closer to 150 billion barrels of oil.
Ten days ago, the U.S. Geological Survey released a study estimating the total of recoverable oil in the Bakken field, including portions of Montana, at as much as 4 billion barrels of oil.

According to a summary of the report, of which Helms is a co-author, the projections are based on "a wealth of public geology and engineering data generated since 2004," and differs from previous studies that focused on the potential of the Bakken as a source rock only.

Helms said, the estimated recovery amount is based on current drilling and completion practices within the thermally mature portion of the formation.

An area not thermally mature could hold another 18 billion barrels of oil.
District 1 Rep. Pat Hatlestad (R-Williston), said it sounds to him like there could be even more oil recovered in the future.

"You've got to believe, with technology, they're going to increase the recoverable amounts," Hatlestad said. "For Williston, it's going to be great."

Vicky Steiner, executive director of the North Dakota Association of Oil and Gas Producing Counties, said the impacts of the Bakken will reach far beyond the Williston Basin.

"North Dakota is poised to help out the rest of the nation," she said, by easing the country's reliance on foreign oil and ultimately, enhancing the national security of the United States.
Beyond the Bakken, she said, there are other formations that could be developed, keeping the current play going even longer than currently projected.

People involved in local projects aimed at servicing both the existing oil activity and the new people oil activity brings are prepared for even more growth ahead.

A company working on plans for a transloading facility on the east edge of Williston sees the potential for loading rail cars for years to come.

"For the short term, we'll use it to haul crude and natural gasoline condensate," said Tad Butt, president of Pioneer Oil, but in the long term, there's a big demand for bringing in the materials the oil industry needs to complete and service wells.

He said Williston was chosen for the facility after considering a variety of locations.
"We do feel like that's going to be the center of the activity," Butt said.

John Deneen, vice president of property management for The Marcil Group, a development company with 144 units already either under construction or in planning, said more development will follow.

"We're going to keep building," Deneen said. The group is already purchasing more land and buildings in Williston.

"It's going to take some investment on our part to serve the industry," said Chris Brostuen, business development manager for Mountrail Williams Electric Cooperative.
Monday's announcement, he said, "supports the investment we need to make."

Koeser said there should be plenty of prosperity to share across the whole region.
"It's exciting, yet tremendously challenging," Koeser added, as cities and small towns try to meet the growing demand for workers and housing.

"We've been trying to react and work diligently, but they keep setting the bar higher."
Koeser said the biggest question he faces everyday from people in the area is how long will the "boom" last?

Monday's announcement should go a long way toward answering that question.
"You're not just building for a boom, but a whole new future," Koeser said.

The information released by the state includes projections by county.
Williams County is estimated to have 26 billion barrels of oil in place and
474 million barrels of oil recoverable with current technology.

Mountrail County is estimated to have 424 million barrels of recoverable oil and McKenzie County, 382.

Counties to the north don't fare quite as well in the study, but they, too, have billions of barrels of oil in place and millions of barrels recoverable.

Divide and Burke counties together are estimated to have 30 billion barrels of oil, with 187 million barrels recoverable in Burke and 123 million in Divide.Supporting documentation from the Department of Mineral Resources study may be viewed at www.rockinthebakken.com.

We'ere Rockin the Bakken - Come Ride The Wave!!!

2008-04-22T11:48:00.000-05:00

The Bakken Oil Formation encompasses some 25,000 square miles in North Dakota, Montana, Saskatchewan and Manitoba. About two-thirds of the acreage is in western North Dakota, where the oil is trapped in a thin layer of dense rock nearly two miles beneath the surface.

Recently, a U.S. geological survey report on just how much oil is potentially in the Bakken Formation estimated that western North Dakota holds up to 4.3 billion barrels of recoverable oil.

For the oil industry, there isn’t a better time to tap that economic prosperity than right now.

Located in the center of the basin’s oil service, Williston, ND has been serving the industry since 1951. Home to over 150 oil companies, we are the community you choose when you need experience, reliability and results.

2008-04-15T10:05:00.000-05:00

Outdoor Life magazine ranks Williston, ND among the best.

“Outdoor Life” magazine has ranked Williston, ND number 18 of the top 200 places in the nation for the outdoorsmen to call home.

The rankings are featured in the April edition under the article titled “Paradise Found”.

The nationally published magazine based its search criteria by reviewing several quality of life and sporting factors within the community that included growth rate, economy, crime, distance of commute, hunting and fishing opportunities, trophy quality, gun laws, and year- round accessibility.

Each category was rated on a scale of 1 to 10 (10 being the best).

Then, all this information was put into a computer database, which ranked cities using a formula that gave slightly heavier emphasis (60-40) to the sporting opportunities than to the quality-of-life rankings.

Williston Mayor Ward Koeser says he is pleased that Williston was listed.

“We have always felt that Williston is a great place for outdoorsmen.” “Recognition in a national publication by someone outside of our community only reinforces that feeling.“

This is just one more thing in a long list that makes Williston an excellent place to call home!

2008-04-08T15:39:00.001-05:00

AP Associated Press:

America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.
In the next 30 days the USGS (U.S. Geological Survey) will release a new report giving an accurate resource assessment of the Bakken Oil Formation that covers North Dakota and portions of South Dakota and Montana. With new horizontal drilling technology it is believed that from 175 to 500 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951. The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel.
It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil that real excitement and money started to flow in North Dakota. Marathon Oil is investing $1.5 billion and drilling 300 new wells in what is expected to be one of the greatest booms in Oil discovery since Oil was discovered in Saudi Arabia in 1938.
The US imported about 14 million barrels of Oil per day in 2007 , which means US consumers sent about $340 Billion Dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World, if 200 billion barrels of oil at $90 a barrel are recovered in the high plains the added wealth to the US economy would be $18 Trillion Dollars which would go a long way in stabilizing the US trade deficit and could cut the cost of oil in half in the long run.