Bear Paw Energy pursues natural gas project
A natural gas processing plant near Watford City capable of handling 100 million cubic feet per day could be fully operational in December 2011 after the state’s Public Service Commission reviewed a letter of intent Tuesday morning.
A natural gas processing plant near Watford City capable of handling 100 million cubic feet per day could be fully operational in December 2011 after the state’s Public Service Commission reviewed a letter of intent Tuesday morning.
Bear Paw Energy, LLC, a subsidiary of ONEOK Partners, LP, anticipates construction to begin this month on a $150 million to $175 million natural gas processing project, according to a letter of intent dated Aug. 19, filed with the PSC Aug. 23.
While state law requires a year waiting period after a notice of intent is filed, PSC Commissioner Tony Clark said because of the speed of energy development, it is often requested that time period be waived.
Bear Paw was granted a waiver and can file its application after 10 days if it so chooses.
Located about eight miles northeast of Watford City, the Garden Creek Gas Plant would process gas developed from the Bakken Formation in eastern McKenzie and southwestern Mountrail counties, with the capability of recovering about 25,000 barrels of natural gas liquids per day, according to the letter of intent.
After traveling through a low pressure gas gathering system and compressor stations, the gas is then routed to the Garden Creek Plant to be processed for natural gas liquid extraction, according to the letter.
The product will then be transported via pipeline to Bear Paw’s Riverview rail terminal near Sidney, Mont. and again transported via railcar or pipeline to various facilities for further processing, according to the letter of intent.
Clark said by North Dakota standards, the proposed Bear Paw plant is of substantial size.
“The growth associated with the plant and gathering system will likely result in 25 Bear Paw Energy jobs in the area,” Megan Washbourne, ONEOK media contact, said in an e-mail.
McKenzie County Commissioner Richard Lawlar, Watford City, farms near the proposed plant, and said the project will be “a good deal.”
Many oil wells flare off natural gas as pipeline construction cannot keep up with production.
In 2008, almost one-third of natural gas produced in the state was flared due to a lack of collecting systems and pipelines needed to move it to market, according to The Associated Press in April.
But, construction of new facilities is helping capture those gases.
“They need these things around someplace,” Lawlar said. “The country around here is pretty well lit up at night, you know, so it’ll be nice when they get it all captured and can do something with it.”
Clark said the PSC is beginning to see more applications for gas plant and related projects.
“Natural gas is such a valuable commodity right now and it’s really, really important to the nation’s energy consumers and so you see more and more attempts to capture and refine that natural gas,” Clark said.
Clark describes the plant as “value-added energy.”
“Generally speaking, as long as it’s developed right, it’s a good thing to have those processing plants here because they bring in jobs and revenue and expand the property tax base,” Clark said. “This is a way of doing more of the processing here at home as opposed to just shipping the raw liquid.”
After the application is officially filed, a public hearing will be held in the project’s proposed county and though no date has been set, Clark anticipates a hearing will be held in Watford City.
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