North Dakota gives company 6 months to resume oil productionDICKINSON, N.D. (AP) — A Denver oil company says it will comply with regulators' order to restart an oil field production unit in western North Dakota within the next six months.
DICKINSON, N.D. (AP) — A Denver oil company says it will comply with regulators' order to restart an oil field production unit in western North Dakota within the next six months.
The state Industrial Commission has ordered New Millennium Resource Inc. to restart oil production from the Zenith-Tyler "A' Unit, just northeast of Belfield. If the wells are not brought back into production by Nov. 1, the company may have to plug and abandon them, Commissioner Doug Goehring said.
New Millennium President Jeff Collins told the Dickinson Press (http://bit.ly/JJmM3Y ) that the order is fair and the company has plans to bring the wells back into production.
North Dakota mineral resources director Lynn Helms said the unit that covers about 1,500 acres was created in 2002. It used underground water injections to try to boost oil production. Helms said one of the injection wells failed and there have been other problems.
The unit hasn't produced much for the last few years. Two men who get a share of money from production have complained about how New Millennium Resources is running the unit.
Mineral right owners Robert Procive of Belfield and Dan Feragen of Wibaux, Mont., told the commissioners some of the wells had not produced for three years and demanded they take action.
"I wish it would have been done a little sooner, but at least now they will start producing the field like their unit agreement says they are supposed to," Procive said.
Collins said he was surprised the owners brought up discussion about the wells.
"I think we have been doing a pretty good job on the unit," he said. "We got 50-something working interest owners that never complained and have maybe 200-plus mineral owners, and there were just two people that had to complain. So we are doing pretty good."
Information from: The Dickinson Press, http://www.thedickinsonpress.com
Copyright 2012 The Associated Press.