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ND Industrial Commision adopts conditioning standards for Bakken crude
BISMARCK - The North Dakota Industrial Commission today adopted new conditioning standards to improve the safety of Bakken crude oil for transport.
By: North Dakota Industrial Commission, Prairie Business Magazine







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BISMARCK - The North Dakota Industrial Commission today adopted new conditioning standards to improve the safety of Bakken crude oil for transport.


Order No. 25417 sets operating standards for conditioning equipment to properly separate production fluids into gas and liquid. The order includes parameters for temperatures and pressures under which the equipment must operate to ensure that light hydrocarbons are removed before oil is shipped to market.


“The North Dakota Industrial Commission reiterates the importance of making Bakken crude oil as safe as possible for transportation,” commission members--Gov. Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring-- said in a joint statement following today’s meeting. “This order will bring every barrel of Bakken crude within standards to improve the safety of oil for transport.”


The three-member commission approved Commission Order 25417 after receiving additional comments on the working draft which the Commission discussed on Nov. 13, 2014.


The new standard -- Commission Order No. 25417 -- requires operators to condition Bakken crude oil to a vapor pressure of no more than 13.7 pounds per square inch (psi). National standards set crude oil stability at a vapor pressure of 14.7 psi. Under the order, all Bakken crude oil produced in North Dakota will be conditioned with no exceptions. The order requires operators to separate light hydrocarbons from all Bakken crude oil to be transported and prohibits the blending of light hydrocarbons back into oil supplies prior to shipment.


Lynn Helms, director of the state’s Department of Mineral Resources, said the department’s Oil and Gas Division staff will conduct field inspections to enforce compliance. He said oil companies that do not comply could face a penalty of up to $12,500 for every day in violation.


Commission members said the effective date of April 1, 2015, allows time for producers who want to utilize alternative conditioning or stabilization methods to request a hearing before the commission and also allows time for companies to install needed equipment.


The commission developed the new oil conditioning standards after a Sept. 23, 2014 public hearing and receipt of additional comments. In considering new standards, the commission heard from a wide range of stakeholders including North Dakota residents and representatives from the energy industry. Also taken into consideration were recent crude oil quality and safety studies including the federal government study conducted by the U.S. Pipeline and Hazardous Materials Safety Administration.


Tags: energy and mining, transportation, oil, bakken, crude, safety, regulations





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