WATER ISSUES RELATIVE TO THE 

BAKKEN IN NORTH DAKOTA

James Landenberger, P.E.

October 29, 2012
PRESENTATION AGENDA 

 Bakken overview

 Projected levels of activity

 Current water practices

 Reasons for growing concern

 Conclusion – what are the implications/opportunities?
MAY 2012 IN MILLIONS OF BARRELS OF OIL (194 MBPM US TOTAL) 

1. Texas = 56.9 (1.90 mbpd) 29%

2. North Dakota = 19.8 (0.66 mbpd) 10%

3. Alaska = 16.9 (0.56 mbpd) 9%

4. California = 16.2 (0.54 mbpd) 8%

5. Oklahoma = 7.2 (0.24 mbpd) 4%

US TOP 5 OIL PRODUCING STATES 

0

20

40

60

Texas ND Alaska California OK

Aug = 0.70 mbpd
ROCKIN THE BAKKEN IN NORTH DAKOTA 

Mature area or sweet spot

Total area = 10,000 + sq miles 

2010 population = 40,000 people

160 out of the 190 rigs (~85%)
MAJOR PLAYERS 

Source: Wood Mackenzie Upstream Service, Company reports

Operator Bakken acreage ('000)

Continental Resources ~1,000

Hess ~800

Whiting 702

EOG Resources 600

ConocoPhillips 460

Marathon Oil 416

ExxonMobil/XTO 410

Statoil 375

Oasis 307

Occidental 277

Denbury 202

SM Energy 202

Northern O&G 177

Kodiak O&G 157

Chesapeake 150

Magnum Hunter 125

MDU Resources (Fidelity) 124

Red Arrow Energy 100

Newfield 100

QEP Resources 90
RAMPING UP PRODUCTION 

INCREASING WATER DEMAND 

Source: Wood Mackenzie Upstream Service
 Difficult water sourcing

 Arid region

 Ongoing issues between State 

of ND and US Army COE

 Time factor in attaining permits

 High cost of trucking

 Water disposal issues

 Regulation

 High salinity

 Need additional disposal wells

 Mounting public concern

 Environmental concerns

 Road traffic, accidents, 

and truck emissions 

 Increased regulation

Escalating water demand and costs

WHAT’S ALL THE FUSS ABOUT? 

Source: Wood Mackenzie Upstream Service
 Sources

 Surface water

 Groundwater (becoming increasingly limited)

 Municipal supplies (sporadic)

 Modes of transport

 Generally trucking

 Pipelines (strong movement)

 Current practices at well site

 Average 2-4 million gallons per well

 Increasing frac stages fueling water demand

 Disposal practices

 Underground injection wells

 Saltwater disposal wells

 Minimal recycling (more regulation)

CURRENT WATER PRACTICES 
 Local (County, Township)

 No Local Permits for access and use of water, except 

coordination of State permits with local water boards

 State

 ND State Engineer / ND State Water Commission 

(issues of access, availability, quantity, and environmental)

 ND State Health Department (issues of quality)

 ND State Public Service Commission (new player to the game)

 Federal

 US Corps of Engineers (US F&WS)

PERMITTING / APPROPRIATION 
The Basic Premise of Water Law and Management in 

North Dakota:

 All waters of the State are owned by the State

 All waters managed and appropriated by a beneficial use doctrine

 Water management is by the ND State Engineer and NDSWC

 The ‘State Environmental Agency’ is the ND State Health Dept 

 Follows the typical Conditional to Perfected water right path

PERMITTING / APPROPRIATION 
Priority of Beneficial Use:

 Domestic

 Municipal

 Livestock

 Irrigation

 Industrial

 Fish, Wildlife, Outdoor Recreation

 ...Only applies when competing permits 

are filed within 90 days of each other and 

water availability is in question ...

PERMITTING / APPROPRIATION 
Temporary Water Permit: (modified Dec. 2011)

 Made to the State Engineer

 Issued for a 12 month period

 Conversion of Ag/Irrigation (non-flood) to Industrial

 Based on average annual use of water

 Must be metered

 Must be reported

 Issued year to year

 Does not create a water right

 A public comment period be made part of the 

process starting in 2013

PERMITTING / APPROPRIATION 
From the Federal Perspective:

Surface Water Applicability

 Any alteration of the channel (dredging, 

excavation, intake works) ---- requires a 

regulatory permit (Section 10 and/or 404)

 Within the Reservoir --- (or along the free 

flowing river with Federal land ownership) ---

requires real estate access 

easements/permits 

PERMITTING / APPROPRIATION 

‘There is really only one truly 

“plentiful” and reasonably stable 

source of unappropriated water in 

the state, and that is the Missouri 

River. All smaller rivers are nearly 

fully appropriated. Most of the 

state’s good quality ground water is 

found ... in the eastern, central and 

northern portions of the state.’ 

Water Resource Report 49, NDSWC



ABUNDANT SUPPLY OF WATER 

 2500 new wells drilled per year

 4 million gallons of frac water needed per well

 = 10 billion gallons or 1.3 billion cu-ft

 Lake Sakakawea at elevation1807 (lowest level 

in 50 years of operation in 2007) = 210,600 acres 

in size, or 9.2 billion square feet

 1.3 billion cu-ft / 9.2 billion sq-ft = 0.14 ft or 1.7 inch

 12 years to fully develop the Bakken = 20 inches

 Current elevation of Lake Sakakawea is 1836 

(which is also the long term avg) = 300,000 acres
 Move towards pipelines

 Push for increased reuse and recycling

 Drawbacks are cost and very limited 

reuse percentages (20-40%)

 Movement towards independent closed and 

semi-closed-loop systems

 Increased environmental scrutiny regarding 

hydraulic fracturing

 Safe Drinking Water Act (SDWA)

 Underground Injection Control Program 

(UIC)

 New ND regulations went into effect in 2012

 Allow fresh water ponds for frac water

GROWING TRENDS 
 Continued shift to shale development – will 

only fuel greater water demand

 No slowdown expected in the Bakken in 

the near-term (15-20 years possibly)

 Bakken drilling will remain extremely 

water-intensive

 Current water practices must shift due to:

 Regulatory environment

 Cost/impacts of trucking

 Technology/Treatment

KEY CONCLUSIONS