Showing posts with label Dept of Mineral Resources. Show all posts
Showing posts with label Dept of Mineral Resources. Show all posts

Monday, April 8, 2013

Important Cultural, Religious and Historical Resources Threatened by Drilling


(Courtesy Dakota Goodhouse/TheFirstScout.blogspot.com)
Killdeer Mountain, home of the Singing Butte, looms on the edge of the North Dakota Badlands. (Courtesy Dakota Goodhouse/TheFirstScout.blogspot.com)

Important Cultural, Religious and Historical Resources

Threatened by Drilling

April 08, 2013
The Hess Corporation’s development of oil resources on Taĥċa Wakutėpi (Killdeer Mountain) on the edge of the North Dakota badlands threatens to destroy the integrity of a site sacred to tribes and important to historians, wildlife biologists, archaeologists and local landowners.
In a June 2010 report on the preservation of North Dakota battlefields, the National Park Service wrote, “Each of North Dakota’s battlefields remains a good candidate for comprehensive preservation, but Killdeer Mountain is most at-risk. While exploratory oil well drilling has had little effect on the battlefield’s condition so far, industrial scale extraction of the sub-surface resources at Killdeer Mountain could destroy the landscape and associated view-sheds in the near future.”
Killdeer Mountain was the site of an attack by U.S. Army Brigadier General Alfred Sully against a traditional summer gathering of American Indians for trading, socializing and ceremonies. On July 28 and 29, 1864, the general’s troops killed an estimated 150 Dakota and Lakota warriors and executed uncounted women and children. They destroyed as many as 1,800 lodges, 200 tons of buffalo meat and dried berries, clothes and household utensils, tipi poles, travois, and piles of tanned hides and slaughtered horses and perhaps 3,000 dogs. It was the final significant battle in the Dakota-U.S. War of 1862, but its deliberate brutality led to other conflicts. Among the survivors of the Battle of Killdeer Mountain were Sitting Bull and his lieutenant, Gall, who would fight again at the Battle of Little Big Horn in 1876.
The mountain was a sacred site long before the battle. Dakota Goodhouse, an enrolled member of the Standing Rock Sioux Tribe, says, “Killdeer Mountain is a place people still go to pray, [and there are] still people at Fort Berthold who visit the site for vision quests.”
Gerard Baker, an enrolled member of the Three Affiliated Tribes and a former National Park Service superintendant, is 59. As a child, he learned the ceremonial importance of Taĥċa Wakutėpi from his father, who learned it from tribal elders. “He told us the stories of Singing Butte, where Earth-naming ceremonies once took place. Many of the ceremonies are lost because of time, but they are still extremely important. Medicine Hole is associated with lost ceremonies. Many were lost during the smallpox epidemic of 1837.” Baker explains that unless a ceremony’s owner sells or gives away the ceremony before he dies, it can no longer be performed. So many Indians died so quickly during the smallpox epidemic that they did not have time to ensure the survival of their ceremonies.
Sioux leader Sitting Bull, left, and Hunkpapa Chief Gall survived the Battle of Killdeer Mountain. (AP; Courtesy National Archives)
Sioux leader Sitting Bull, left, and Hunkpapa Chief Gall survived the Battle of Killdeer Mountain. (AP; Courtesy National Archives)
But the spirits still live on Singing Butte. “The spirits live in different areas throughout the Dakotas in various buttes from Canada to the South Dakota line. The Hidatsa consider that their ancestral territory,” says Baker. Other lifeways that once took place on Killdeer Mountain included burials, fasting, trapping to get eagle feathers, deer-hunting and dressing.
A fundamental problem—and one of the challenges in opposing oil drilling on the mountain—says Baker, is that “not enough people know about the ceremonies. Even though people know the site is sacred, not so many know about the ceremonies.” He has a very pragmatic approach to dealing with Hess’s current oil drilling proposals. “I wish we could say ‘No drilling,’ but that’s not going to happen. They’re going to get that oil one way or the other.… We could hold up protest signs, but I think education would work better,” says Goodhouse. “I feel the issue is people don’t care because they don’t know” about Killdeer Mountain’s cultural or historical significance. “In an ideal world, there would be no wells near that area, but I have to be a realist. My suggestion is to drill laterally” for four miles, instead of the two miles of lateral drilling Hess is planning.
Opponents have won two concessions. “They have agreed that if they come across artifacts they will cease operations. But I know from experience that road companies do not stop development to save what’s there. They call in salvage archaeologists to survey,” says Goodhouse.
Richard Rothaus, president of Trefoil Cultural and Environmental, an archaeological consulting firm, had been planning to look at the Killdeer battlefield in 2014 or 2015, but when he heard about the imminent oil drilling there, he got permission to do a quick surface survey. He found three sites, two of them major. “This is an area that could have good, important information about the battle. It would be a shame to see it torn up without some work.”
Rothaus says he would need one excavation season, roughly one summer, to do 80 percent of the archaeological work that needs to be done at the battlefield. He has applied for funding for the work to the National Park Service American Battlefield Protection Program and will know in July whether the money will come through.
According to Rothaus, “Oil development is growing so fast out there that no one can keep track of it. People didn’t know this was being leased,” so they couldn’t do the archaeological work earlier. “Hess says it avoided the battlefield, but is 2.5 miles away from the historical marker for the battlefield, not three miles away from the battlefield.” The marker, he says, occupies just a couple of square feet of the vast battlefield. The wells Hess proposes are within the battlefield area.
The current situation on Killdeer Mountain, says Rothaus, came about through “a series of fairly innocent mistakes. I’ve almost never encountered anyone who doesn’t care about this history, but the right people are not at the table.”
Anne Marguerite Coyle, assistant professor of biology at Jamestown College in Jamestown, North Dakota, who spent three years studying golden eagles on Killdeer Mountain, concurs with Rothaus. “People don’t know when a plot of land might come up for lease.” The North Dakota Industrial Commission, she says, has no obligation to call other state agencies when they are planning to sell oil and gas leases.
Hess has agreed to a second concession, says Goodhouse. “The community did not want wells to be drilled during the school year because of the increased traffic, so they agreed to drill them in July.” But this concession brings its own problems. “The time they are going to put in the wells conflicts
Sully led the 1864 assault on a summer gathering of tribes at Killdeer. (Joel Emmons Whitney)
Sully led the 1864 assault on a summer gathering of tribes at Killdeer. (Joel Emmons Whitney)
with religious pilgrimages to area. If someone went to pray up there this summer, drilling would have an adverse effect, based on the impacts I saw of drilling at Bear Butte. There the development is five to 10 miles away from the sacred site. The dirt roads there were expanded to accommodate additional traffic. The traffic is heavy, loud and constant—not conducive to a vision quest.”
Goodhouse says a January meeting between the Mineral Resources Department and those with concerns about the drilling was “very civil, very cordial,” but whether education and goodwill can lead to other compromises is doubtful. Hess responded to a request to ICTMN’s request for an interview via e-mail: “Throughout the regulatory process, members of the community have had an opportunity to raise their concerns with the North Dakota Industrial Commission. We believe that the commission remains the best forum for concerns to be raised and addressed.”
Loren Jepson, a landowner on Killdeer Mountain, cattle rancher and former Hess employee, did raise the issue with the commission when he filed a petition in February asking the commission to suspend its order to allow the drilling and to rehear the case. The commission denied Jepson’s petition on February 20. One argument he made—in keeping with his intent to slow down the process in order to allow more time for study and compromise—was that the commission “failed to consider the best alternative of drilling the requested wells,” referring to the concept that the wells could be started further away from the battlefield. The commission found: “What Jepson has characterized as the failure to consider ‘the best alternative’ does not constitute grounds for rehearing or reconsideration.” In order to reopen the case, says Alison Ritter, spokeswoman for the commission’s Division of Mineral Resources, new information would have to be brought forward. “The commission carefully weighed the evidence,” she says, and the case has already been reopened once, last fall, which does not happen often.
Hess began preliminary work on the site one-quarter mile from Jepson’s house on February 21. He says an archaeologist is on site, but since the work moves so quickly and so much is destroyed in the process, it was unlikely anything would be found, an assessment Rothaus confirms. “Monitoring is just the last safeguard, not where you would want to start an archaeological investigation.”
Ritter explains that Jepson has run through his options at the executive level of the North Dakota state government and his next move would be to file an appeal in district court. Jepson says he does not know whether he will appeal. His attorney has told him that he would need $20,000 just to begin the process.
“I’m 60 years old,” Jepson says. “There are 30 [oil] wells here now and there will be 90 before the end of summer. I will never see the end of this. A way of life is gone, and it won’t come back.”

Read more athttp://indiancountrytodaymedianetwork.com/2013/04/08/important-cultural-religious-and-historical-resources-threatened-drilling-148622

Monday, April 1, 2013

Table’s turned: Lynn Helms goes from oil industry to oil regulator


Table’s turned: Lynn Helms goes from oil industry to oil regulator

During a contentious hearing about drilling for oil in the Killdeer Mountains, a critic of Lynn Helms, North Dakota’s top oil and gas regulator, inadvertently called him “Mr. Hess.”
By: Amy Dalrymple, Forum News Service

BISMARCK -- During a contentious hearing about drilling for oil in the Killdeer Mountains, a critic of Lynn Helms, North Dakota’s top oil and gas regulator, inadvertently called him “Mr. Hess.”
The comment didn’t seem intentional, but it reflected an underlying question some people have about Helms and potential conflicts of interest involving Hess Corp. and others in the oil industry he once worked for.
Helms worked for Texaco and later what is now Hess Corp. before becoming director of the North Dakota Industrial Commission Oil and Gas Division in 1998. He’s served as director of the Department of Mineral Resources since 2005.
Helms said he takes his independence as a regulator seriously and works hard to avoid the appearance of conflicts of interest.
“We do have a very, very strict ethics policy,” Helms said. “For myself, I hold myself to an even stricter policy.”
The North Dakota Industrial Commission had an ethics policy in place when Helms assumed his role, but he added additional guidelines to prevent possible conflicts for employees of the Oil and Gas Division.
For example, employees are not allowed to acquire mineral rights unless they inherit them or marry someone who has them, Helms said.
Helms and his family own minerals at their family ranch in South Dakota, but his family does not own minerals in North Dakota, he said.
Employees are not allowed to have more than $5,000 in stock of an oil and gas company.
Helms said he used to have a significant amount of Hess and Texaco stock, but he divested himself of that and does not own any oil and gas stock under the $5,000 limit the policy allows.
“I refuse to own any,” Helms said. “I think it would, if nothing else, create the appearance of a conflict of interest.”
Even his retirement plan is immune, Helms said.
“My pension benefits from Hess are completely independent of any decision I would make,” Helms said.
Anne Marguerite Coyle, a Jamestown College biology professor who opposed the Hess plan to drill in the Killdeer Mountains, referred to Helms as Mr. Hess during the hearing. Coyle said Helms should have at least stepped back and let someone else handle the issue that had widespread opposition.
“It was a direct conflict of interest,” Coyle said. “He had worked for Hess for 18 years.”
Helms recommended in favor of the drilling plan, which the Industrial Commission unanimously approved, with some stipulations to try to address some of the concerns.
Coyle said Helms misrepresented data she had gathered about eagle habitat in the Killdeer area and downplayed the significance of cultural artifacts.
“He is very good at promoting oil,” Coyle said. “With his industry experience, I think that’s a perfect position for him.”
Helms said his industry experience gives him the knowledge that he needs to regulate the industry.
“I spent a decade sitting on the other side of the table testifying to the Industrial Commission with regard to things that Hess wanted to do in the state,” Helms said. “I really do understand what’s going on with that expert witness and what they may or may not be telling us that we need to know.”
His background working for industry can sometimes be an easy target for critics, Helms said.
“When a discussion of the issues fails or the science isn’t there for somebody who’s passionate about what they believe in or feel, it makes it an easy target to criticize me or bring it up as a criticism,” Helms said. “It’s painful, it always is. But part of this job is developing a thick skin so that when you have to do something that one of your former co-workers in industry doesn’t like, you can go ahead and do it.”
Carol Booth, communications manager for the Interstate Oil and Gas Compact Commission, which consists of the oil- and gas-producing states, said it’s common for oil and gas regulators to have industry experience.
“You’ll be hard-pressed to find a state regulator who has not worked for industry,” Booth said.
In Colorado, three of seven appointed members who serve on the Colorado Oil and Gas Conservation Commission are on the payroll of companies the group regulates, said Peg Perl, attorney for Colorado Ethics Watch, a government watchdog group. Perl said she testified against that process last week to Colorado legislators.
Booth said some regulators have it written into their contracts that they will step aside and let someone else handle a particular issue if there is a conflict of interest.
Helms said he once recused himself from an issue that involved a former classmate from the South Dakota School of Mines and had someone else in his department handle the matter.
Helms said he gets frustrated when people confuse him with Ron Ness, who leads the North Dakota Petroleum Council, which is an industry group. Although the Department of Mineral Resources is involved with promoting oil and gas development, it devotes more attention to regulating the industry, Helms said.
Helms also objects to being called a cheerleader for the oil industry. He points to 12 strict rules the commission implemented about a year ago, some involving the regulation of hydraulic fracturing, that met strong opposition from the industry and other groups.
“I am not a cheerleader for the industry. I am a proponent of the industry because I recognize what it does for North Dakota’s economy and all for the government and private investment and jobs that it can create,” Helms said.
http://www.grandforksherald.com/event/article/id/260166/publisher_ID/40/

Friday, March 29, 2013

Killdeer rancher has muddy spring mess from unwanted wells


Killdeer rancher has muddy spring mess from unwanted wells

KILLDEER MOUNTAINS — Loren Jepson paid an attorney and fought as hard as he could to keep oil wells from being built alongside his Killdeer Mountain ranch.
He lost, and now he says he’ll have another mess on his hands — this one caused by clay mud and silt running off the drill pad into his stock dam less than 50 yards downhill.
“I told the state (Industrial Commission) this would happen,” Jepson said Thursday, while he watched the slow spring melt carry a stream of mud into the water he uses for livestock and to water his yard and garden.
As he stood out on his private road that runs parallel to the construction of Hess Corp.’s multi-well pad, a contractor walked through the muddy ditch to talk about the situation.
The newest idea was to try to slow water on the other side of the pad to hopefully get the melt water to drop silt on that side, he told Jepson.
The same contractor installed several straw wattles and plastic sheet dams to try to tame the muddy water slide, but Jepson said the fix was too little, too late, partly because none of it made effective contact with the cold, thawing soil.
Construction on the massive pad started in February within a day or two of Jepson losing his appeal.
The wells are on the south end of a state school land section and Jepson’s case to the state Industrial Commission was to relocate them to the other end of the section, or farther.
The Killdeer Mountains area is historically and archaeologically important, though an archaeological survey prior to the pad being built didn’t turn up any artifacts, Jepson admitted.
No one from Hess returned phone calls or emails asking for comment. The contractor at the site was busy and the Tribune was unable to talk to him.
Hess’ attorney, John Morrison of Bismarck, said Hess installed erosion control and twice installed additional controls at Jepson’s request.
“Hess is not aware of any mud or silt migrating on Mr. Jepson’s property or into a stock dam,” Morrison said in a letter to Jepson’s attorney dated Thursday.
Jepson said he contacted the company and waited a week for them to show up, while the silt kept running.
“I tried to tell them I’ve got quite a grade coming through here. They can put down all the straw wattle they want to,” he said.
He said he knows in the whole scheme of development, his silted-in stock dam is a relatively small deal.
The water is important to him, but so is the principle of the matter.
“I’ve lived all my life here to build what we got and now to be encircled by wells and then to put up with their mud,” Jepson said. “I knew this mud was going to happen.”
Lynn Helms, director of the Department of Mineral Resources and the state’s primary oil regulator, said he would have an inspector look at the Jepson problem.
He said wells are exempt from certain federal stormwater rules, but under a state drilling permit companies are not allowed to contaminate surface or groundwater sources.
Soil can be a contaminant, Helms said.
Jepson said he enlarged his stock dam last summer because it was so dry and he wanted to catch and hold more water.
“I’m not a tree hugger,” he said. “Someone’s got to stand up to these people.”

Monday, February 11, 2013

Case No. 18618 RESPONSE OF HESS CORPORATION TO JEPSON PETITION FOR SUSPENSION, RECONSIDERATION AND REHEARING


BEFORE THE INDUSTRIAL COMMISSION
OF THE STATE OF NORTH DAKOTA
In the matter of the application of Hess )
Corporation for an order amending the )
applicable orders for the Little Knife - )
Bakken pool to authorize up to 8 horizontal )
wells to be drilled on four 1280-acre spacing )
units described as all of Sections 25 and 36, )
T. 146 N., R. 97 W. and all of Sections 14 )
and 23 and Sections 15 and 22, T. 147 N., R. )
97 W., and all of Sections 27 and 34, T. 148 )
N., R. 97 W., Dunn County, ND, and )
granting such other and further relief as may )
be appropriate. )
Case No. 18618
RESPONSE OF HESS
CORPORATION TO JEPSON
PETITION FOR SUSPENSION,
RECONSIDERATION AND
REHEARING
By application dated August 24, 2012, Hess Corporation ("Hess") requested that the
Commission authorize up to 8 horizontal wells to be drilled on each of four spacing units in the
Little Knife-Bakken pool on which then-current orders of the Commission authorized up to four
horizontal wells to be drilled. In accordance with the policies of the Commission, Hess
submitted affidavits and exhibits supporting its request for additional wells and the affidavits and
exhibits were received in the record without objection. However, Loren Jepson ("Jepson"), who
owns an interest in the surface of Section 1, Township 145 North, Range 97 West, directly south
of the spacing unit described as all of Sections 25 and 36, Township 146 North, Range 97 West,
filed a written objection and appeared at the hearing on October 24, 2012 and objected to the
request for authorization of additional wells that would have surface locations on the south end
of Section 36. Other individuals submitted comments by email prior to the hearing date. A
hearing was had on October 24, 2012 and the record was reopened on November 21, 2012 to
receive additional information on the schedule for site construction and the existence of any
known archeological sites. The Commission also included certain public documents in the
record in accordance with Section 28-32-25, N.D.C.C. The record of the case was closed on
January 7, 2013.
On January 24, 2013, the Commission at a scheduled meeting considered the approval of
an order in this case. There was considerable publicity about the scheduled meeting and to
afford the public and all interested parties an opportunity to attend the meeting, the meeting was
held in the Brynhild Haugland Room of the State Capitol. The Commission generously allowed
Jepson and a number of other members of the public, including those who had not previously
appeared in the case, an extended opportunity to comment. The record was not re-opened and
neither Jepson, nor any of the other individuals who offered comments on January 24 were
sworn and their comments do not constitute part of the record in this case. Later that day, the
Commission approved Order No. 20920, which authorized the infill wells requested by Hess but
imposed substantial safeguards and restrictions on drilling operations that are intended to address
the concerns of Jepson and others, including those who timely entered appearances in the case
and those who did not do so.
Jepson now seeks a suspension of Order No. 20920, reconsideration of Case No. 18618,
and a rehearing to allow the submission of additional evidence. Jepson's request is not supported
by the law or the facts and Hess in all things opposes the request.
1. Statutory Authority and Procedures. As authority for his petition, Jepson cites
N.D.C.C. §38-08-13 and N.D.A.C. §43-02-02-41. N.D.A.C. §43-02-02-41 relates to the
regulation of "subsurface minerals" such as volcanic ash, precious minerals, and carbonates.
§38-12-01(7), N.D.C.C. The rule addressing rehearing of oil and gas matters was repealed in
1992 and petitions for reconsideration or rehearing on oil and gas matters are governed by §§38-
08-13 and 28-32-50, N.D.C.C. Section 28-32-40, N.D.C.C., provides in part that a party seeking
reconsideration must "submit with the petition for reconsideration a statement of the specific
grounds upon which relief is requested or a statement of any further showing to be made in the
proceeding." There is no statutory authority, and no administrative rule, which authorizes the
"suspension" of an order while a petition for reconsideration or rehearing is considered. In fact,
it has long been held that the Commission has no authority to suspend an order pending
rehearing or to require the filing of a bond in such circumstances. Thomas Producing Company
v. Pan American Petroleum Corp., 229 F. Supp. 433, 435 (D.N.D.1964). Upon filing an appeal
to the District Court, an appellant may request a suspension of the order, but if the Commission
suspends the order, the Commission must fix the amount of a supersedeas bond running in favor
of the Commission for the use of any person who may suffer damage by reason of the suspension
of the order, and the order is only suspended upon filing the bond. §38-08-14(2), N.D.C.C.
The Industrial Commission is an administrative agency and its actions in deciding matters
presented to it are subject to Chapter 28-32, N.D.C.C., the "North Dakota Administrative
Agencies Practice Act." As such, the Commission is required to "make and state concisely and
explicitly its findings of fact and its separate conclusions of law and the order of the agency
based upon its findings and conclusions." §28-32-39 (1), N.D.C.C. Pursuant to §28-32-24,
N.D.C.C., the findings must be based upon evidence submitted in accordance with the Rules of
Evidence, as supplemented in accordance with §28-32-25, N.D.C.C. On appeal, orders of the
Commission are to be sustained "if the commission has regularly pursued its authority and its
findings and conclusions are sustained by the law and by substantial and credible evidence."
The Commission is authorized to appoint examiners, who have the power and duty to conduct
hearings and to prepare a report and recommendation for the disposition of the matter, which
report may be in the form of a proposed order. §§43-02-03-93, 43-02-03-95, and 43-02-03-98,
N.D.A.C. Petitions for review of a recommended order and oral arguments following the
issuance of a recommended order and pending issuance of a final order are expressly prohibited.
§43-02-03-90.3.
Against this statutory and regulatory backdrop, the Commission, through a duly
appointed examiner, conducted a hearing on October 24, 2012. Following the hearing, the
Commission received additional evidence in accordance with its statutory authority. On January
24, 2013, the examiner presented his report and recommended order in the form of a proposed
order to the Commission. Despite the prohibition against oral argument on a recommended
order, and in probable recognition of the substantial publicity this case has received, the
Commission patiently and admirably allowed Jepson, Jepson's attorney and a number of other
members of the public to make public comment at the January 24 meeting. The Commission
also allowed the Director of the Department of Mineral Resources, Lynn Helms, who was also
the examiner, to respond to the public comments and to explain his recommended order. The
Commission approved the recommended order, subject to an understanding with respect to the
need to minimize flaring.
2. Jepson's Basis for Rehearing or Reconsideration.
Jepson's primary objection regarding Order No. 20920 is that Mr. Helms, in presenting
his recommended order to the Commission, utilized an illustrative aid which set forth a number
of alternatives (the "Summary of Alternatives") that Mr. Helms considered in arriving at his
recommended order. Jepson asserts that the Summary of Alternatives should have been
transmitted to the parties of record in advance pursuant to Section 28-32-25. He argues that
some of the statements are "untrue" and "prejudiced." He complains that that Mr. Helms
incorrectly stated in the Summary of Alternatives that Section 36 is "approximately five miles
from Killdeer Mountain" instead of "within the Killdeer Mountain Range" and that he identified
a "rural residential subdivision" without stating the number of structures contained in Section 26.
He disputes Mr. Helms' estimation of how much of Section 36 is within the Killdeer Battlefield
study area even though Mr. Helms clearly displayed the plat with the depiction of the study area
to the Commission. He argues that Mr. Helms statement that no further development would
"leave more than three million barrels of oil stranded" is "inscrutable and impenetrable."
Initially, Hess disagrees with Jepson's characterizations. The record established at the
hearing and supplemented after notice to Jepson supports that Section 36 is located "in the
foothills to the southwest of Killdeer Mountain." See, for example, OGD SA, page 2, paragraph
2. A portion of Section 36 (as well as the portion of Section 1 on which Jepson and his family
reside) is located in the "Killdeer Mountain Battlefield Study Area" but is several miles from the
"Killdeer Mountain Battlefield Core Area" (OGD 1) and 2.8 miles from the Historic Marker for
the Battlefield (OGD SA). Section 26 does indeed include a residential subdivision and two
residences. The record does indeed establish that each additional well in this spacing unit is
expected to recover 433,000 barrels of oil and 7 (the difference between the eight requested wells
and the one existing well) times 433,000 barrels is 3,031,000 barrels. Hess Exhibit 6.
More importantly, however, while critical of the presentation Mr. Helms made to the
Commission in support of the recommended order, Jepson identifies no deficiencies in Order No.
20920 and identifies no "specific grounds" or "further showing to be made" that is material - or
that would make any difference in the outcome. The Summary of Alternatives is not part of the
evidentiary record in this case and is not cited in the order as support for any finding of fact.
Resolving whether Section 36 is "five miles from Killdeer Mountain" as stated by Mr. Helms or
"within the Killdeer Mountain Range" as urged by Jepson or "in the foothills to the southwest of
Killdeer Mountain" as described in OGD SA will not impact the outcome of this case.
Determining how many residential and commercial structures are located in Section 26 ("rural
residential subdivision, plus two additional residences" as stated by Mr. Helms or "two ...
residential structures and one ... commercial structure" as asserted by Jepson) will not impact the
outcome of this case.
Order No. 20920 is supported by findings and conclusions that are sustained by the law
and by substantial and credible evidence. In entering Order No. 20920, Mr. Helms, as examiner,
and the Commission, regularly pursued their respective authority. There is no basis in law
allowing, and Jepson has presented no cogent argument supporting, a suspension of Order No.
20920. He has not identified any grounds or further showing that will make any difference if a
rehearing or reconsideration is granted.
Hess recognizes that this case presents complex and difficult issues for the Commission
to resolve. The Commission must balance the interests of Hess as a lessee and its mineral
owners, including the State Department of Trust Lands, in realizing the economic benefits
against the legitimate concerns of Jepson and others who see their way of life impacted by oil
and gas development. In Order No. 20920, the Commission struck an appropriate compromise.
Order No. 20920 allows the oil and gas interests to be developed, which will provide substantial
benefits to the State of North Dakota through severance taxes and royalties to the Common
Schools Trust Fund, with appropriate restrictions to promote safety and preserve cultural and
other resources. Hess is committed to complying fully with the requirements of the Commission
and the State Department of Trust Lands.
For the foregoing reasons, Hess respectfully requests that Jepson's petition be denied.
Dated this 11th day of February, 2013.
HESS CORPORA nON
CROWLEY FLECK PLLP
Attorneys for the Applicant
Suite 600, 400 East Broadway
P.O. Box 2798
Bismarck. D 58502
By: John W. Morrison

CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing document was on the 11th day of February,
2013, mailed and electronically mailed to the following:
Thomas A. Gehrz
Mackoff, Kellogg, Kirby & Kloster, p.e.
38 2nd Avenue East
Dickinson, ND 58601

JOHN W. MORRlSON