North Dakota's Bakken Well Count Eclipses 15,000

The number of wells drilled in North Dakota has eclipsed 15,000 for the first time, underscoring the breakneck development of the state's Bakken shale formation, where more than 1 million barrels of oil are extracted each month.

Crossing the threshold, which happened earlier this summer, according to regulatory data to be released later Tuesday, triggered a release of $587,000 from the state's budget to hire additional oilfield inspectors. Environmentalists, ranchers, farmers and other rural landowners have been clamoring for them.

The state's Bakken shale formation is one of the most-prolific in the world, producing more oil than any state except Texas and even some OPEC members.

The number of wells in the state, including both oil and gas, as well as saltwater disposal and abandoned wells, has jumped sharply in the past decade as Whiting Petroleum Corp , Hess Corp and other oil and gas producers have spent billions on drilling projects and technological improvements.

The saltwater wells are used as depositories for waste byproducts from hydraulic fracturing and water produced when drilling. They are drilled much in the same way as oil or gas wells, though they are not fracked.

The number of actively producing wells, a smaller metric than total wells, stood at 11,079 at the end of June, up 51 percent in the past two years, according to the regulatory data.

In response to the rising production, and also in an attempt to cull to the high volume of natural gas flared, Governor Jack Dalrymple set a goal two months ago for the state's pipeline capacity to nearly double by 2016 to 1.4 million barrels of oil equivalent per day.

The new inspectors are intended to ensure that safety standards are followed while the industry tries to match the ambitious goal, said Alison Ritter, a spokeswoman for the state's Department of Mineral Resources.

"The three will be looking at the pipe installation process and making sure rules are followed," Ritter said. The postings are for Minot, Williston and Dickinson, three oil-rich cities in western North Dakota filled with workers from Enbridge Inc , Oneok Inc and other pipeline operators and gas processors who have more than 19,900 miles of pipe throughout the state.

The three new employees, who will be paid a maximum of $51,000 per year in salary, as well as cost-of-living adjustments and other incentives, will join 32 other inspectors in the field. The cost of living has grown exponentially due to the oil boom so the state will need to provide the adjustments.

The state legislature set aside funds last year for the positions, stipulating money would be released once the 15,000-well threshold was crossed.

(By Ernest Scheyder, Editing by Jeffrey Benkoe)