May 22, 2020 -- Why Wise Roads?
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An isolated rain shower that soaked the Epping weather station Saturday demonstrated the need for WDEA's
Wise Roads project
, aimed at reducing road restrictions after rain events.
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McLean County Puts GRE on Notice
County Wants to Determine Reclamation Costs
McLean County Commissioners say they hope that Coal Creek Station can remain in operation beyond 2022, but in the event the power plant is shut down, the county has begun the process of determining costs to reclaim the land where the plant sits and the Falkirk Mine that supplies lignite to CCS.
The plant's operator, Great River Energy, announced earlier this month that it intends to shut down the 1,100-megawatt generating station at the end of 2022. In a
letter to GRE this week, county commissioners said they hope another company is willing to take over operation of Coal Creek Station, but they need to start planning a future without it. If the plant is leveled and the mine abandoned, the reclamation bill will likely be expensive.
"Generally speaking, we want to ensure that reclamation laws for things such as infrastructure, and potentially the bulk return of mine land to private property are not in want of either legislative or rulemaking attention," the commissioners wrote.
The commission indicated it would like to see a coordinated process for any rules or law changes that may be needed to resolve reclamation issues, and welcomes GRE to be a part of it.
"While we have had some initial discussions about these issues with state officials and legislators, as we continue our research and discussions, your staff is welcome to be involved with us to try and reach mutually beneficial ends," the letter said.
The letter also thanks GRE for the "wonderful working relationship" with McLean County, noting that the company "turned a once controversial project into a treasured asset."
A copy of the letter was sent to the three members of the ND Public Service Commission, which administers the state's reclamation laws. A copy was also sent to North American Coal, which operates the nearby Falkirk Mine. Click
here to see the letter.
Click
here to read an article from the Institute for Energy Research that explains how Coal Creek Station experienced financial losses due to the intrusion of subsidized wind in the electric market.
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Faces of North Dakota Coal Urges Members to Write
The Faces of North Dakota Coal Facebook group has urged its more than 2,700 followers to let their feelings about the coal industry be known by writing to their elected leaders.
The group, formed by Mark Pierce, purchasing manager for Coteau Properties Company in Beulah, has gained prominence and attracted hundreds of new "Likes" and followers as a result of its efforts to call attention to the threatened closing of Coal Creek Station.
Pierce wrote in a post this week that he has received requests in the last couple of months for a draft form letter to be sent to elected officials, but he thinks it's important people express their own feelings.
"I am a firm believer in the power of each individual’s own words and thoughts," Pierce said. "Passion and heart are mightier than the sword."
Although he didn't provide a form letter to the group's followers, Pierce did share one of his own letters he'd sent to the Mercer County Commission, urging members to oppose an application for the Garrison Butte Wind Farm. The commission subsequently imposed a two-year moratorium on further wind farm development in Mercer County (see
May 8 WDEA newsletter).
Click
here to read the words from Pierce's letter.
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Most Say They Oppose Oil Waste Action
Continental, NDPC Take Opposite Sides of Issue
State regulators held a hearing this week to make a determination if action is required under a state law - Section
38-08-02(19) - that production of oil or gas in excess of transportation or marketing facilities or in excess of reasonable market demand constitutes waste.
The stated purpose of the hearing was to determine what price constitutes waste under the law, to consider consequences of determining that waste is occurring, and what relief may be appropriate and necessary to prevent the waste of crude oil production.
Regulators received a mix of views on the issue, with most asserting they would prefer to leave the decision to the market and individual producers. However, Continent Resources, the state's top producer, argued that the state should step in. Blu Hulsey, Senior Vice President of Government Relations and Regulatory Affairs for Continental, said that leaving production cuts to the whim of industry players is not an inefficient way to reduce crude oil output.
Click
here to listen to Hulsey's comments.
Hulsey said Continental is generally supportive of free markets, but that oil is not one of them.
However, the North Dakota Petroleum Council took the opposite point of view, urging the state not to intervene in the market. NDPC President Ron Ness said oil producers have differing obligations and financial needs, so the decision to shut in a well or curtail production is best left to individual operators.
Click
here to listen to Ness' comments.
Ness encouraged the state to prepare a cost-benefit analysis of industry regulations and remove those that do not have an impact on improving health, safety or the environment.
Mineral owners who testified at the hearing were generally opposed to the imposition of mandatory production limits because they could lead to jurisdictional disputes and affect the terms of oil leases. No decision was made at the hearing. If any action is taken, it will likely occur at the next meeting of the ND Industrial Commission on May 29.
Click
here to read Williston Herald coverage of the meeting. Click
here for a Bismarck Tribune article.
KX News television coverage of the hearing can be found
here.
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Webinar Provides Revenue Update
WDEA Executive Director Geoff Simon and "Numbers Guy" Brent Bogar provided an update to members this week on North Dakota oil price and production, gross production tax and sales tax revenue expectations, Bakken re-start challenges and planning for an uncertain future.
Simon and Bogar were joined by Dustin Bakken, Kompleks Assessment Solutions, who provided a review of the central assessment process and the downturn's likely impact on commercial and industrial property values and future property tax revenue.
A few key takeaways from the presentation:
- WDEA members can expect a 20-50% lost of GPT revenue in the current biennium.
- Oil prices remain low, but stable, suggesting supply/demand balance has been restored
- Oil production is down 510,000 barrels, but the decline has likely leveled off
- Crude storage is mostly full, and will have to be "burned down" before prices improve
- Demand resurgence may not occur until 4Q, challenging the state to find workers in the winter
- Interim employment opportunities are needed to keep industry workforce in the state
- Re-opening the economy could produce an infection surge, further slowing recovery
- Herd immunity and an effective coronavirus vaccine are both many months away
WDEA members are urged to share information about their budget plans with the association to ensure state policy makers have a good understanding of the detrimental effects of the downturn on cities, counties and school districts in the oil, gas and coal-producing counties.
Click
here to view the webinar on WDEA's YouTube page.
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NDDOT Creates Western Liaison Position
Individual Will Help City, County Road Planning
The North Dakota Department of Transportation, in partnership with the Upper Great Plains Transportation Institute, announced the creation of a new position this week to work with western cities and counties in a multi-jurisdictional transportation planning and operations effort.
NDDOT will provide funding for the position for five years, but the individual hired will work under the direction of UGPTI and its Local Technical Assistance Program (LTAP). The western transportation liaison program will serve many purposes, according to NDLTAP Director Dale Heglund.
"We want to work closely with western counties to coordinate road construction planning and scheduling, promote uniform level-of-service concepts for local road networks, and be able to identify potential problems before they become a serious issue," Heglund said. "The individual we hire will key in on the four major oil-producing counties, and work closely with the MHA Nation as well."
The program is also expected to help identify training and technology needs for local jurisdictions, and coordinate delivery with the appropriate state or university provider.
Heglund said the program will also include a half-time position intended to assist with coordinating planning and communication efforts, engaging with local elected officials and staff. He said the job title of the position is Western North Dakota Local Government Advocate.
"This 'boots-on-the-ground position help with the Wise Road weather station and Toward 365 projects, participate in council meetings, assist with project and regional planning, help with the Geographic Roadway Inventory Tool (GRIT) data entry and share best practices," Heglund said. "Both positions are being funded by NDDOT in an effort to support and advocate for the challenges that face western oil county roadway leaders, recognizing that synergistic efforts of these leaders can grow our business climate through an enhanced roadway network."
Click
here to see the Scope of Work for the liaison position. Click
here to see the job announcement.
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Truck Permit Advisory Board to Meet
WDEA's Loadpass Truck Permit Advisory Board will hold its spring meeting via the Zoom meeting platform next Wednesday, May 27, at 10:00 a.m. CDT.
The advisory board, chaired by Mountrail County Commissioner Trudy Ruland, traditionally meets at least twice a year to discuss oversize truck permitting issues and improvements to the LoadPass system. County and city members of LoadPass Permits typically assign their public works director, road superintendent or sheriff to represent the city or county in discussing operation of the permit system.
The agenda for the meeting includes a financial report, election of advisory committee members and officers, a Wise Roads update, a presentation by Dale Heglund about the western liaison position described above, and updates on the LoadPass routable map and statewide expansion efforts.
The Zoom meeting invitation has been distributed to active LoadPass members. Any industry or local government reps or other interested parties who did not receive the notice but would like to participate in the meeting should email their request to
permits@ndenergy.org or call 701-566-5576.
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$400 Million in Projects for NDDOT
Construction Season Officially Kicks Off
The North Dakota Department of Transportation this week announced the launch of the 2020 construction season with about $400 million in projects spread throughout the state.
Projects in the Dickinson District include:
- Surfacing and widening on ND 22 from Junction 12 to New England
- Major rehabilitation on ND 8 from Junction 200 to Twin Buttes
- Lighting and signals on Villard Street in Dickinson
- Pedestrian Bridge on I-94 Business loop in Dickinson
Projects in the six-county Williston District include:
- Concrete overlay on US 2 from Blaisdell to west of Berthold
- Reconstruction of ND 1804 from Red Mike Area to west of Williston
- Major rehabilitation on ND 73 from Junction ND 23 to mile 6
- Bridge deck overlay on ND 23 Four Bears Bridge
- Reconstruction of intersection of ND 1804 and 7th Avenue East in Williston
Projects this summer and fall in the Minot District include:
- Major rehabilitation on ND 37 from Parshall to 4 miles east of Junction 1804
- Reconstruction of 31st Avenue from Broadway to 13th Street Southeast in Minot
- Overlay on ND 37 from Garrison to Junction 83
- Micro surfacing on ND 43 from Junction ND 14 to Junction US 281
NDDOT officials urged motorists to slow down, obey speed limits and drive distraction free to help increase safety throughout work zones.
“In 2019 we had two work zone related fatalities on our highways,” said Ron Henke, NDDOT deputy director. “Our hope is that motorists can take the necessary precautions when in a work zone to make this number zero in the future.”
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TR Library Board Picks Design Finalists
The Theodore Roosevelt Presidential Library Foundation named three finalists to compete to become the design architect of the Theodore Roosevelt Presidential
Library, to be built at the park entrance near Medora.
Renowned architectural firms Henning Larsen; Snøhetta; and Studio Gang were selected after an extensive search and interview process.
“These architects share our vision and values,” said Melani Walton, chair of the Design and Architecture
Committee. “They want to listen and spend time with the community, study the ecology of the Badlands,
and embrace the complexities of Theodore Roosevelt’s life.”
The three finalists were selected from 12 firms that responded to the T.R. Library request issued in April. One of the three architects will be chosen to work alongside an executive architect and construction management team that will be based in North Dakota. Design concepts are due July 17, and will be made public on August 10. The TRPLF board is scheduled to hold its next meeting August 17-18 in Medora, at which time a decision may be made.
Ken Vein, director of design and construction, is working with city officials in Medora and the Theodore Roosevelt Medora Foundation to facilitate safe working sessions in Medora by each architectural and design team in June.
“This is an exciting next step in creating not just the T.R. Library but also an economic stimulus for North Dakota,” said Vein, “The project is an investment in construction and jobs, and the T.R. Library will add to our state’s economy for generations to come.”
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H.E.A.T. is Coming This Summer!
H
ighway
E
nforcement of
A
ggressive
T
raffic
Law enforcement will be adding extra patrols starting June 1 to enforce speed limits and remove aggressive drivers from the road. They will be turning up the summer H.E.A.T. (Highway Enforcement of Aggressive Traffic), all part of the
Obey the Sign or Pay the Fine enforcement campaign.
Speeding and/or aggressive driving is defined as speeding, driving too fast for conditions, following too closely, or operating a vehicle in a reckless, negligent or aggressive manner. In 2019, speeding and/or aggressive driving was a factor in 29% of fatal crashes in North Dakota.
H.E.A.T. will continue through August to encourage everyone to wear a seat belt, use appropriate child passenger safety seats, drive sober and distraction-free, and follow all posted speed limits.
Obey the Sign or Pay the Fine is part of the
Vision Zero Summer H.E.A.T. strategy to eliminate motor vehicle crash fatalities and serious injuries on North Dakota roads.
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WDEA Offering Energy Scholarships
The Western Dakota Energy Association will award five $1,000 scholarships this fall to students in an energy-related field at a North Dakota college, university or technical school.
WDEA President Shannon Holter said the association is offering the scholarships to help the industry and western communities meet the workforce challenges historically experienced with oil industry growth.
“We recognize that North Dakota will see benefits from the oil industry only if it is able to attract the workforce it needs,” said Holter. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy sector.”
Funding for the scholarship program is generated by sponsorships of WDEA’s annual meeting, as well as royalties from advertising in Basin Bits magazine.
Click
here to learn more about the selection criteria and how to apply.
Click
here to view or download an application form.
The application deadline is September 18, 2020. Scholarship winners will be announced at WDEA's annual meeting October 7-8 in Williston.
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NDPC Al Golden Scholarships
Application Process Now Open
The Al Golden Scholarship Program, sponsored by the North Dakota Petroleum Council through its philanthropic foundation, is now accepting applications for the 2020-21 school year.
The program will award up to nine $2,000 scholarships to students pursuing degrees or training in an energy-related field.
Scholarship winners are selected based on academic achievement, work or internship experience in the oil and natural gas industry or a demonstrated commitment to a qualified area of study. Students must be attending a North Dakota college or university and remain a full-time student for the 2020 fall semester and 2021 spring semester.
Applications must be submitted or postmarked by June 1, 2020. For qualifications and application requirements along with a list of previous scholarship award winners,
click here.
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COVID-19 Useful Information Resources
Here is a list of useful information resources for addressing both individual and family concerns along with pertinent information for business and employers related to managing the current coronavirus outbreak.
Information at these links is usually updated to be the most current to help focus on facts not fear, and preparation over panic.
North Dakota SMART Re-start
North Dakota Information
U.S. Small Business Administration
Small Business Loans
Center for Disease Control & Prevention
U.S Department of Agriculture
U.S. Department of Housing and Urban Development
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Quick Connect
- Oil and gas industry leaders look for solutions for labor market -- KFYR-TV
- First piece of Keystone XL pipeline finished; crosses U.S. border -- AP
- Industry coalition files emergency motion seeking stay in Keystone XL case -- Williston Herald
- Biden's campaign says he would revoke permit for Keystone pipeline -- Fargo Forum
- As oil rigs come down in the Bakken, two find use in CO2 storage projects -- Bismarck Tribune
- GRE's decision to close Coal Creek is based on $1B taxpayer subsidy -- SayAnything Blog
- Meridian Energy retains Pinkerton to provide security at Davis Refinery -- Williston Herald
- Voters to determine DPI superintendent, treasurer races on fall ballot -- Bismarck Tribune
- Legislative Council: Legislative session at Capitol may be impossible -- Associated Press
- Workforce Coordination Center has COVID-related job openings statewide -- Williston Herald
- ND attorney general warns of unemployment scams during pandemic -- Bismarck Tribune
- North Dakota teachers' names used in fraudulent unemployment claims -- KFYR-TV
- North Dakota to use $750,000 coronavirus aid to livestream hearings -- Associated Press
- COVID-19 info raises questions about Tioga developer’s dual roles -- Tioga Tribune
- Zippia: North Dakota No. 2 most open for business state in nation -- Williston Herald
- Fischer Industries lands $1.3B border wall contract, the biggest so far -- Dickinson Press
- Northwest Area Water Supply project plans for a busy year in 2020 -- Minot Daily News
- District 8 board hears financial impacts of dissolving or reorganizing -- Williston Herald
- School districts look over plans for redrawing boundary lines or merging -- Williston Herald
- Six candidates running for three open seats on Minot School Board -- Minot Daily News
- CARES Act to provide $33M for North Dakota schools in technology upgrades -- KXMB-TV
- Ward County 4H leader reaction to cancellation of North Dakota State Fair -- KFYR-TV
- Trump administration cuts royalty rates for oil and gas operators -- Associated Press
- Oil price soars on bullish Energy Information Administration inventory report -- OilPrice.com
- Oil prices surging after plunging into the abyss; worst may be behind us -- Rigzone
- Report: U.S. pipeline incidents dropped more than 35% in last 5 years -- Energy In Depth
- Here's why United States oil shale plays are just too important to fail -- OilPrice.com
- Coronavirus creates maintenance headache for oil and gas industry operators -- Reuters
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Factoid of the Week
Replacing coal-generated electricity with wind or solar would require a huge investment and redundancy because of the intermittent nature of renewable sources. If 500 MW were replaced with wind power, about 2,000 MW would need to be built along with battery storage so a steady and reliable 500 MW was available to the grid. This is a quadruple investment for capacity to make it available at all times.
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May 27
Bismarck
May 27
Zoom meeting
May 28
Bismarck
May 29
Bismarck
June 1
Bismarck
June 2
Bismarck/online
June 2
Bismarck
June 8-11
Bismarck
June 19
Williston
August 20-21
Williston
September 1-3
Bismarck
September 30 - October 1
Bismarck
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Oil prices and rig count
May 22, 2020
WTI Crude: $33.25
Brent Crude: $35.13
Natural Gas: $1.73
North Dakota Active Oil Rigs: 13 (up 1)
5/22/2019 -- 64 rigs
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Geoff Simon
Editor/Executive Director
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