The Mandan, Hidatsa and Arikara (MHA) Nation, a Native American tribe in North Dakota, will buy the Plaza/Wabek pipeline from Enbridge for $5 million, the energy company said.
The Plaza/Wabek Pipeline, a six-inch-diameter pipeline measuring 31 miles from a gathering system in the Plaza/Wabek fields to Enbridge’s terminal in Stanley, North Dakota, will connect the oil output of the Fort Berthold reservation on the Enbridge pipeline. net. The line has a carrying capacity of 15,000 barrels per day, Enbridge said.
The MHA Nation, which has more than 17,000 registered members, operates an energy division that includes petroleum production and processing. The purchase was made through MHA Nation subsidiary Thunder Butte Petroleum Services Inc. and will make the MHA Nation the first tribal charger in the Enbridge system, according to an Enbridge press release Friday.
Departure from Fort Berthold
According to the latest report from the North Dakota Department of Mineral Resources, the Fort Berthold reservation has 2,641 active wells producing a total of 144,190 barrels of oil per day. Potential future oil and gas wells in the area could reach 3,911, the regulator said.
The purchase of the pipeline is “another important step and a positive investment that will support the development of our energy trust assets for MHA Nation and its members,” said MHA Nation President Mark Fox. “This will also be an important catalyst for improving economic development in our region of influence.”
“Enbridge’s purchase is a positive step in providing Thunder Butte Petroleum Services with an asset that will lead to economic self-sufficiency and a future source of revenue for the MHA nation,” said Bernie Fox, CEO of Thunder Butte Petroleum, in the press release.
According to its company website, Enbridge operates the world’s longest and most complex liquids transportation system, with about 17,800 miles of active pipelines in North America and delivering more than three million barrels a day.
“This is an important step in connecting MHA Nation with new markets and industry partnerships,” said Mike Koby, Enbridge’s vice president of US liquids pipeline operations.
Enbridge said economic inclusion and partnerships with tribes are part of its plans in the regions where the company operates. In September 2022, Athabasca Indigenous Investments saw 23 First Nations and Métis acquire an 11.57% stake in seven pipelines operated by Enbridge in northern Alberta, which was the largest indigenous economic transaction related to power in North America so far, the company said.
North Dakota oil and gas sector
In a separate news release from the North Dakota Department of Natural Resources, the regulator said the state’s oil and gas industry remains a “powerhouse” for its economy, which accounts for more than $42.6 billion of dollars in gross business volume, nearly 50,000 jobs and $3.8 billion in state and local tax revenue by 2021. The state’s oil and gas industry has learned to maintain production through efficiency despite the COVID-19 pandemic, and most of the industry’s key economic metrics are at or near pre-COVID-19 levels, according to the report.
“The oil and natural gas industry continues to be a game changer for North Dakota,” North Dakota Gov. Doug Burgum said in the report. “The taxes and royalties paid by the industry support our state’s important investments in infrastructure, schools, communities, tax credits and the Legacy Fund, among other areas. The industry’s resilience in the face of challenges such as the pandemic, extreme weather, volatile prices and misguided federal policies demonstrates that it will continue to play an important role in North Dakota’s economy for generations to come,” said Burgum.
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