Showing posts with label Loren Jepson. Show all posts
Showing posts with label Loren Jepson. 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

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.”

Rig collapses at Hess well site in Killdeer Mountains


Rig collapses at Hess well site in Killdeer Mountains



While Hess Corp. was dealing with mud runoff from a contested drilling site in the Killdeer Mountains on Thursday, it had some major problems at a drilling site three miles north in the mountains.
A drilling rig owned by Precision Drilling collapsed at about noon Wednesday during a move to the last well on a six-well pad, said Lynn Helms, director of the Department of Mineral Resources.
One of the rig legs collapsed in the process, he said. No injuries were reported.
By Thursday, Precision Drilling had personnel parked out on the road to prevent access to the site. Cranes were at the scene lifting the rig equipment.
No one answered phone calls Friday to Precision Drilling for an update on the accident.

Wednesday, March 13, 2013

Battle for Killdeer Mountain decided: Foes of drilling near historic site out of options


Published March 13, 2013, 12:00 AM

Battle for Killdeer Mountain decided; Foes of drilling near historic site out of options

FARGO — Oil developers appear to have won the battle for the Killdeer Battlefield, a historic site in the western North Dakota Badlands near where a New York-based company has begun laying groundwork for wells.
By: Dave Kolpack, The Associated Press
FARGO — Oil developers appear to have won the battle for the Killdeer Battlefield, a historic site in the western North Dakota Badlands near where a New York-based company has begun laying groundwork for wells.
Preparations by Hess Corp. come despite objections by some area residents, American Indians, historians and others who wanted further study on the idea before drilling started.
The company’s plans persuaded one couple who live near the Killdeer Mountains to hire an attorney and another couple to join them as leaders of a protest group. But most opposed to the oil development fear it’s too late to stop it.
“I don’t know if it’s a hopeless case yet. It looks that way,” said landowner Rob Sand, whose grandparents once owned the land in western North Dakota where U.S. Army and American Indian soldiers clashed nearly 150 years ago.
Hess officials declined to be interviewed but said in a statement they are “progressing with early site preparation” and expect construction to take place in the coming weeks.
“Hess Corporation is committed to meeting the highest standards of corporate citizenship by protecting the health and safety of our employees, safeguarding the environment and making a positive impact on the communities in which we do business,” the statement said. “We seek to minimize our impact on the environment in all aspects of our operations in North Dakota.”
Sand and his wife, Mary, along with fellow landowners, Loren and Lori Jepson, have led the opposition to the drilling plans and formed the Killdeer Mountain Alliance. The Jepsons have filed unsuccessful appeals with the state Industrial Commission — which granted drilling permits to Hess — but apparently have run out of options.
Thomas Gehrz, attorney for the Jepsons, said a lawsuit doesn’t appear likely at this point because it would cost too much.
“My clients throughout this whole thing have said, ‘Let’s sit down and talk about it.’ We don’t need to make a big fight out of it. We just want our concerns dealt with and we don’t think they’re unreasonable,” Gehrz said. “Hess was apparently not interested.”
The Industrial Commission, made up of Gov. Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring, in January approved a request from Hess to drill up to eight wells in the Killdeer Mountains area. The commission later rejected an appeal to reconsider by the Jepsons, who said state Mineral and Resource Director Lynn Helms was biased in his recommendation to approve the new wells in an area where four have already been approved.
“I just can’t predict where it’s going to go,” said Rob Sand, 65. “I have a personal love for the land. I grew up riding horses there and playing all over the place. And I have an interest in history. These things matter.”
Richard Rothaus, a Sauk Rapids, Minn., archaeologist who has an office in Fargo, and Tom Isern, a North Dakota State University history professor, have applied for a National Park Service grant to study the battlefield. They and other historians believe the 1864 skirmish may have been the most important encounter between the U.S. forces and Native Americans.
“For people who are Indian war buffs, this is the fight they should be looking at,” Isern said. “This sets the mold.”
During the one-day battle, Gen. Alfred Sully’s troops essentially formed a giant square with thousands of soldiers on the outside and horses and artillery on the inside. The group marched across the prairie toward Killdeer Mountain and the Dakota village, where U.S. soldiers destroyed tipis, belongings and the winter food supply.
“If you could view it from above, this would be like a Star Wars scene of some sort of futuristic warfare,” Isern said.
Although the U.S. soldiers claimed victory, Rothaus said the experience taught Indian warriors like Sitting Bull and others how to combat mountain howitzers.
“To me, that right there is the start of the war that ends in Little Big Horn and Wounded Knee,” Rothaus said.
Calvin “Bear” First, whose ancestors were among the Indian warriors at Killdeer battle, organized a “wipe away the tears” ceremony at the site in July 2001 to honor the participants and shed light on details from the event. He said the area has cultural meaning to many people and is worried that oil development will diminish its significance.
“The written history doesn’t show how important it really was,” said First, the compliance officer for the Fort Peck Tribes in Montana. “It really shaped the war for what happened after that. And really there are still so many unknowns about that time.”
The North Dakota Senate last month rejected a bill that would have provided a small amount of money to the state Historical Society to study the battlefield. Lawmakers from both parties originally lined up in favor of the bill, but backed off after complaints by some residents who said they didn’t want government in their business.
Rothaus said his study will continue, despite possible damage to the area around the Killdeer Mountain Battlefield, because “there are still large portions of the battlefield left.”
Loren Jepson said he’s mainly worried about oil traffic on what is a main road for Killdeer residents and one where children catch the school bus. He said alternate oil extraction options should have been considered, but “no one was willing to listen.”

This Nov. 25 photo provided by archaeologist Richard Rothaus shows a panoramic view of the Killdeer Mountains Battlefield site in western North Dakota. The historic battlefield is near the site where early oil well site preparations have begun, Hess Corp. said.

http://www.thedickinsonpress.com/event/article/id/66400/

Friday, March 1, 2013

The New Battle of Killdeer Mountain


The New Battle of Killdeer Mountain

icon
Friday March 1st, 2013 - 03:27 - Source: Losing a Landscape
A recent fight for preserving part of the Killdeer Mountain Battlefield is now lost in favor of commercial gain.
The Battle of Killdeer Mountain (otherwise known as Tahkahokuty Mountain) took place over a century ago on June 28, 1864. On that day, Brigadier General Alfred Sully led over 4,000 soldiers against reportedly 1,600 Sioux warriors, during the time of the Sioux Wars. History would come to know this as the largest expedition that the U.s. Army ever carried out against Native Americans. It's result was massive destruction and death.

Killdeer Mountain battlefield - Source: WikipediaA place where such a battle occured would likely be a National Park, correct? No, it is not. However, there is a state historic site. But this did not stop applications for drilling to the area, though. Four wells have already been approved, and Hess Corp made the request to add two more. 

This did not go over so well with a Killdeer Mountain resident. Loren Jepson filed a request against this earlier this month. Jepson stated that the State Mineral Resources Director, Lynn Helms, presented incorrect information that was clearly biased in Hess Corp's favor.

On February 21, the Jepsons' petition was dismissed by the North Dakota Industrial Commission. Workers have already moved in to fill the area of archaeological interest to begin drilling, which is likely to destroy any archaeological evidence present.


Wednesday, February 20, 2013

Industrial Commission upholds Killdeer Mountain drilling decision


Published February 21, 2013, 12:00 AM

Industrial Commission upholds Killdeer Mountain drilling decision

BISMARCK — In a unanimous decision on Wednesday, the North Dakota Industrial Commission voted to uphold a recent decision allowing oil drilling in an area in Dunn County near Killdeer Mountain.
By: Bryan Horwath, The Dickinson Press
BISMARCK — In a unanimous decision on Wednesday, the North Dakota Industrial Commission voted to uphold a recent decision allowing oil drilling in an area in Dunn County near Killdeer Mountain.
The IC — comprised of North Dakota Gov. Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring — voted last month to approve a series of well pad sites to be developed by Hess Corp. Dunn County resident Loren Jepson and his legal counsel, Tom Gehrz of Mackoff Kellogg in Dickinson, filed an appeal of the January IC decision.
Jepson, who was not present at Wednesday’s monthly IC meeting at the State Capitol, had requested the commission take a second look at its decision based on several factors, including the presentation of incorrect information by Director of Mineral Resources Lynn Helms’ office.
“We were asked to reconsider order 20920 and the response is a recommendation to deny that request for reconsideration,” Helms told the commission before its vote. “The grounds that the appeal was brought on don’t meet the legal test for a reconsideration.”
Jepson and other Killdeer Mountain drilling opponents had requested that Hess drill in a different area near the pad sites in question, although Helms said such a move would create new mineral rights issues for landowners.
The land in question could hold as much as 3.5 millions barrels of oil, according to DMR estimates. Wednesday’s decision does not mean Jepson is out of options as far as appealing Hess’ drilling, but any future appeals would need to be brought in District Court.
An opposition to the drilling of up to eight wells near the sacred Native American destination Medicine Hole developed last year. A number of individuals voiced concerns ranging from added local truck traffic to wildlife management in the area and oil exploration encroachment into an area where Native American artifacts are known to have been found. In its decision last month, the IC added stipulations to its approval of the development of the land.
Hess must make an attempt to limit the flaring of natural gas on well sites and must alert the State Historical Society prior to site construction so an independent archeologist can check for artifacts, according to the IC’s original decision. Also, hydraulic fracturing can only occur in the area during the summer so as not to cause safety concerns with truck and school bus traffic on rural roads.
“I’m obviously disappointed with the decision,” Jepson said. “The thing that is most disappointing is that I didn’t even know there was a meeting (Wednesday). I think the story is that that the commission doesn’t let people know what they’re doing and what they’re talking about at these meetings.”
Gehrz sent a letter requesting that Jepson’s Killdeer Mountain appeal be heard at a later meeting. In his appeal, Jepson had also stated concerns that Helms was in a position of bias in his recommendation to the IC, an accusation rebuffed by Goehring.
“I cannot say that I have found at one time where (Helms) has approached us with a bias,” Goehring said. “Mr. Helms has given us options and provided pros and cons of situations. Still, we have to consider how we fulfill our obligations and duties.”
Goehring and Stenehjem stated that the time to provide information and evidence against drilling on the sites in question was before the matter came to the IC.
“I’m happy with the commission’s decision,” Helms said. “I truly believe that the right decision was made in this case. The grounds weren’t there to reconsider this case.
“Originally, this case was on the September (DMR hearing) docket and we continued it a month so that people could secure legal counsel and do research and come to the hearing prepared,” he said. “We actually re-opened the record for some additional written documents based on some archeological concerns and Hess’ plans around timing of the drilling. Normally, we wouldn’t do that. We really took our time with this case.”

http://www.thedickinsonpress.com/event/article/id/65904/

Industrial commission rejects Killdeer drilling request


Industrial commission rejects Killdeer drilling request

The North Dakota Industrial Commission on Wednesday denied a Killdeer Mountains landowner’s request to reconsider a permit granted by the commission in January to drill eight new oil wells by Hess Corp.
Loren Jepson filed a request with the commission Feb. 7, saying among other things, state Mineral Resources Director Lynn Helms was biased in his recommendation to approve the new wells in an area where four already have been approved.
Hope Hogan, an assistant attorney general for the state, told the commission none of Jepson’s four reasons for requesting reconsideration were valid under state law.
Jepson’s attorney, Thomas Gehrz, said he was not given advanced notice of Wednesday’s meeting and requested a delay in a letter to the commission.
State Attorney General Wayne Stenehjem said the meetings are public record and notification is not required.
A second reason Jepson cited was not being given an opportunity to respond to testimony at a Jan. 24 meeting when the commission granted the permit.
Stenehjem said public comment was accepted at that meeting because of the high profile nature of the area in question.
Other contentions from Jepson that the commission did not follow proper procedure for allowing evidence in the matter and that Helms was biased also were rejected.
Neither Jepson nor his attorney were at Wednesday’s meeting.
Reach reporter Brian Gehring 250-8254 or brian.gehring@bismarcktribune.com.

Oil Drilling in the Killdeer Mountains


Oil Drilling in the Killdeer Mountains | Video

Jennifer Joas | 2/20/2013 

There are more than 8,000 wells drilling out oil in western North Dakota. But the proposal to put even more wells near the Killdeer Mountains has struck a cord with local landowners.

Loren Jepson appeared at an Industrial Commission meeting in January to speak in opposition to the proposed drilling. He, along with several others, were in favor of Hess drilling a three mile long lateral to reach the minerals.

The commission voted to approve the drilling. But since then he`s filed a petition for reconsideration by the Industrial Commission. In his petition he brought up several reasons for opposing the drilling, but the state says its too late.

"This was another issue that was no raised at the hearing in any way shape or form. So I don`t believe that established any grounds for reconsideration or re-hearing either," said Assistant Attorney General Hope Hogan.

The commission voted to deny his petition for reconsideration.
http://www.kfyrtv.com/News_Stories.asp?news=62215
http://www.kfyrtv.com/Video_News.asp?news=62215

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

Saturday, February 9, 2013

A mountain to climb


Published February 09, 2013, 12:00 AM

A mountain to climb

Continuing his fight to limit oil drilling around the Killdeer Mountains, Dunn County landowner Loren Jepson on Thursday filed a petition requesting a rehearing on a North Dakota Industrial Commission decision issued late last month.
By: Bryan Horwath, The Dickinson Press
Continuing his fight to limit oil drilling around the Killdeer Mountains, Dunn County landowner Loren Jepson on Thursday filed a petition requesting a rehearing on a North Dakota Industrial Commission decision issued late last month.

Through his attorney, Thomas Gehrz of Mackoff Kellogg in Dickinson, Jepson filed a formal appeal to the IC asking for a suspension of the commission’s Jan. 24 decision to allow Hess Corp. to drill up to eight wells in an area next to the Killdeer Mountains near a sacred Native American religious destination.

The nine-page appeal questions state Department of Mineral Resources Director Lynn Helms’ presentation of certain information while adivsing the IC.

“Helms asserted that ‘the proposed locations in case No. 18618 are approximately five miles from Killdeer Mountain’ and that statement is untrue on its face,” the appeal states. “The proposed well locations in this care are in fact located directly within the Killdeer Mountain Range.”

In a statement received by The Press Friday through DMR spokesperson Alison Ritter, Helms said “the petition for reconsideration will most likely be heard at the Feb. 20 meeting. Since the petition will be before the commission, we would not be able to elaborate on the circumstances any farther.”
In addition to Medicine Hole — a site considered sacred by many Native Americans — the area in question is known to be home to embedded artifacts and natural beauty, according to a number of archaeologists and conservationists. In his recommendation to the IC — which consists of Gov. Jack Dalrymple, Attorney General Wayne Stenehjen and Agricultural Commissioner Doug Goehring — Helms said leaving close to 3.5 million barrels of oil in the ground by not allowing Hess to drill in the area would go against state policy, which is to develop North Dakota’s mineral resources responsibly for the benefit of all North Dakotans.

Ritter said proper stipulations and safeguards for issues like added truck traffic and possible negative effects on native habitat in the area were addressed.

“As was laid out in the meeting (Jan. 24), the now approved locations are approximately five miles from Killdeer Mountain and Medicine Hole,” Ritter said. “Stipulations were placed to address the concerns of truck traffic and habitat. One stipulation places limits on when hydraulic fracturing is to take place. Another stipulation is to build the east pad location with fill only.”

Constructing the east pad with fill material would erase the need for excavation on that location, which would serve to preserve potential artifacts, the IC’s decision states. Under the ruling agreement, fracking could only occur between June 1 and Aug. 15 to minimize truck traffic on an area school bus route.

Also in the ruling, it was stated that Hess would be asked to work with Jepson to develop access to the wells that would minimize impact to residents. Gehrz said Friday that Hess has not been in contact with his client. An attempt to reach a Hess representative by The Press Friday was unsuccessful.

“Hess Corp. has made no attempt over the last few months to seek a reasonable resolution and has generally refused to return Jepson’s phone calls,” the appeal states. “Hess Corp. cannot be expected to look out for the interests of the landowners of North Dakota, as is the duty of the commission.”

When reached Thursday evening, Jepson said he doesn’t believe he and other opponents of the IC’s decision received a “fair shake.”

“We’re looking for the commission to reconsider its order,” Gehrz said. “We’d like the commission to take a further look at an option that would still allow Hess to drill, but in an area that wouldn’t be right across the street from my client.”

Jepson said he is not opposed to oil exploration, but feels that other options he says are feasible would be “better for everyone involved.” Ritter said Helms is “bound in statue to not only promote development, but also to regulate it” and added “there are many different parties he must protect in his role as director.”


The view from atop the Killdeer Mountains (photo by Bryan Horwath).
http://www.thedickinsonpress.com/event/article/id/65553/

Thursday, January 24, 2013

Drilling Dispute


Drilling Dispute

Posted: Jan 24, 2013 8:42 PM CST




The North Dakota Industrial Commission has decided to wait to make a decision on where permitted wells should be drilled near the Killdeer Mountains.
A hearing was held today on Hess Corp plans to drill wells in that location.
Residents from that area along with those interested in the land's history and habitat have opposed the wells saying they are too close to the Killdeer Mountains, Medicine Hole and near eagle nesting areas.
The North Dakota Department of Minerals has been examining and looking at different sceneries.
Director, Lynn Helms, presented six alternatives to the commission.
He says rugged terrain and nearby homes make it difficult to move the proposed well site.
Helms says doing nothing would leave 3 million barrels of oil stranded - that has a value of $250 million.
He proposes an approving Hess' application that would permit eight wells with stipulations.
<<(Lynn Helms / Dir. of Mineral Resources) "Two small pads with activity spread out will have the minimal amount of impact and also allows us to accomplish our statutory mission of preventing waste and protecting rights.">>
Several members of a group opposing the well sites explained why they don't support the oil development in that specific spot.
<< (Loren Jepson / Resident ) "That's all I'm looking for is to get these wells away from where everybody is living, we are going to live there for the rest of our lives."
"To leave it in the ground, is not to waste it. They're gonna be after it in the future, what's the rush? "
( Dr. Marguerite Coyle / Eagle Researcher) What is the price to habitat? Do we also have a price on the archaeological artifacts and what the impact would be? Do we have a price on that? You can not buy them back. They are not replaceable.">>