American Oil and Gas Reporter - February 2015 - 35

waste disposal issues-especially materials with elevated radioactivity-Ness says
North Dakota began to evaluate its disposal regulations while legislation was drafted to increase penalties for illegal dumping.
As a rule making by the Department of
Health (NDDH) proceeded, he says hearings for HB 1113 and HB 1114 were held
the second week of January before two
House committees. The former is a
"housekeeping bill" to align state statutes
with the NDDH rule making, while the latter would increase penalties for violations
to $12,500 and make willful violations
felony offenses, according to NDPC's
summary.
The association says the NDDH rule
making will raise the threshold to 50 picocuries from 5 pCi for TENORM (technologically enhanced naturally occurring
radioactive material) that can be disposed
in licensed North Dakota landfills. A requirement that anyone hauling materials
testing above the 5 pCi threshold must be
licensed would remain in effect.
A trio of pipeline bills was heard in January. Ness says SB 2120 would raise application fees on pipelines and transmission facilities to $25,000 from $5,000.
Meanwhile, SB 2122, which would increase the penalty for violating the Con-

version and Transmission Facility Siting
Act, was given a "do not pass" recommendation by the Senate Energy and Natural
Resources Committee, he says.
In the House, Ness says, HB 1124 was
given a unanimous "do pass" recommendation by the Energy and Natural Resources Committee following testimony in
support from NDPC. The bill would require utilities to update 10-year operation
and transmission-capacity plans every
other year instead of every second year.
Ness says NDPC also expects legislation
that will reflect the recommendations devel-

oped by its pipeline and right-of-way task
force. The industry group was formed as part
of its response to new rules on flaring associated gas to address delays in developing gathering lines and treatment facilities.
"We need help working with reluctant
landowners. Without something, we will
continue to see delays in getting rights-ofway agreements," Ness remarks. "Otherwise, we are seeing the usual 'poke in the
ribs' bills on setbacks, flaring and bonding. It is shaping up to be another interesting session."
Ì

Kinder Morgan Signs Deal To Acquire Hiland Partners
HOUSTON-Kinder Morgan Inc. has
agreed to acquire Hiland Partners from its
founder, Harold Hamm, and certain Hamm
family trusts for $3 billion, including
debt assumption. Hiland's assets consist
of crude oil gathering and transportation
pipelines and gas gathering and processing systems, primarily serving production
from the Bakken formation in North
Dakota and Montana.
The transaction creates a premier midstream platform, with a significant amount
of acreage dedicated under long-term
gathering agreements, KMI says. The
company notes that these acreage dedica-

tions are with some of the Bakken's
largest producers, including Continental
Resources Inc., Oasis Petroleum Inc.,
XTO Energy Inc., Whiting Petroleum
Corp. and Hess Corp.
Hiland's crude oil transportation
pipeline, the Double H Pipeline, is a
485-mile pipeline that will transport crude
oil from Hiland's Dore Terminal in North
Dakota to Guernsey, Wy., where it interconnects with Pony Express Pipeline for
further transportation to Cushing, Ok.
Kinder Morgan says it expects the
transaction to close in the first quarter of
2015.
Ì

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FEBRUARY 2015 35

American Oil and Gas Reporter - February 2015

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