June 12, 2020 -- Explore it, Adore it
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There's no other place on Earth quite like Medora, ND. It's not every day one can drive into a small town and catch a glimpse of a horse and buggy. The
Medora Musical
will open June 19.
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House Appropriations Chair Loses Primary
Delzer Defeat Will Lead to Legislative Shakeup
Rep. Jeff Delzer, chairman of the ND Legislature's House Appropriations Committee, was unseated in his bid for another term in the primary election on Tuesday.
Delzer, who has chaired the powerful committee since 2011, finished third in the District 8 GOP primary behind newcomers Dave Nehring and David Andahl. The other incumbent in the district, Rep. Vern Laning, did not seek re-election. Nehring and Andahl will square off against Democrats Kathrin Volochenko
and Linda Babb in the November general election.
Delzer's loss will mean a reshuffling of committee chairs. The current vice-chairman of the Appropriations Committee is Rep. Keith Kempenich of Bowman. During legislative session, three subcommittees of appropriations meet. The committees are chaired by Rep. Don Vigesaaa from Cooperstown, Rep. David Monson from Osnabrock and Rep. Jon Nelson from Rugby.
The Western Dakota Energy Association found itself at odds with Chairman Delzer on several issues during the 2019 legislative session. Rep. Delzer voted against
HB 1066, otherwise known as Operation Prairie Dog. He also opposed highway, municipal and school infrastructure bonding proposals, and voted against a provision that would have provided on-time state education funding to K-12 schools, which is especially important to rapidly growing districts in western North Dakota.
With few contested primaries, only one other legislative incumbent was ousted. Rep. Aaron McWilliams, R-Hillsboro, finished third in District 20 to newcomers Mike Beltz and Jared Hagert. In the only contested legislative primary in western North Dakota, Sen. Jay Elkin, R-Dickinson, secured the party nomination with more than 73% of the vote over challenger Steven Hanel.
Click
here to see results of all legislative primaries on the Secretary of State's website.
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Superintendent Race Down to Two
State Superintendent of Public Instruction Kirsten Baesler was the leading vote-getter in a three-way primary, and will square off against Underwood Superintendent Brandt Dick in the general election in November.
Unofficial results show Baesler received 75,049 votes or 54.3 percent of the total. Dick received 35,618 votes, or 26.8 percent. Finishing third was Charles Tuttle of Minot with 19.7 percent.
Baesler was first elected superintendent in 2012. She was previously a member of the Mandan School Board and held teaching and administrative positions with the Bismarck Public School District.
Dick has been superintendent in Underwood since 2011. He also serves as Activities Director, along with teaching a dual credit college Algebra course. He was previously superintendent and high school principal at Hazelton-Moffit-Braddock schools. He serves as President of North Dakota Small Organized Schools, is a governing board member of the ND Association of School Administrators, and serves as an ex-officio member of the interim Education Funding Formula Review Committee.
Click
here to read more about the contest in the Bismarck Tribune.
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Local Elections of Note in Western ND
Dickinson Mayor Scott Decker won re-election to another term in Tuesday's election. Decker handily defeated challenger LeRoy Hendrickson, capturing nearly 70 percent of the vote.
Dickinson City Commissioner Sara Trustem lost her bid for re-election, finishing third behind newcomers Suzi Sobolik and John Odermann. Williston City Commissioners Brad Bekkedahl and Deanette Piesik will both serve another term, facing no challengers on Tuesday. The Minot City Council will have two new faces following Tuesday's election. Tom Ross and Carrie Evans finished in the top three, along with incumbent Stephan Podrygula, who won re-election to another term.
The McKenzie County Commission race has been whittled down to six candidates for the three seats up for grabs. The contest featured what may have been a record with 14 candidates in the running. Incumbent Tom McCabe was the top vote-getter with 719 votes, followed by Joel Brown with 583; Craig Hystad received 467 votes; Clint Wold, 466; H Wayne Olson, 465; and Jeremy Olson 443. The hotly-contested commission race will be decided in November.
Several western North Dakota local office holders may be doing double duty if they win in November:
WDEA President Shannon Holter, who is currently a member of the Bowbells City Council, was the top vote-getter in the District 1 contest for a seat on the Burke County Commission.
Beulah Mayor Travis Frey received the most votes in a three-way contest for two at-large seats on the Mercer County Commission. Liza Taylor finished second and incumbent Dwight Berger was third in the race for the two seats, which will be decided in the November general election.
Larry Lundberg, who is the current president of the Killdeer School Board, was the leading vote-getter for one of two seats up for grabs on the Dunn County Commission. Cody Buehner finished a close second in the county race. Incumbents Bob Kleemann and Reinhard Hauck did not seek re-election, but Kleemann could still find himself on the November ballot after receiving 42 write-in votes.
Click
here to see all election results on the Secretary of State's website.
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April Oil Production Down 15 Percent
Biggest Drop in 50 Years of Record Keeping
North Dakota crude oil production dropped by an average of more than 200,000 barrels per day in April in response to a steep drop in oil prices.
Lynn Helms, director of the Department of Mineral Resources, said the 15% decline was the biggest month-to-month drop since record-keep began in 1970. In his monthly Director's Cut news conference today, Helms said April production averaged 1.22 million bbl/day, down from 1.43 million bbl/day in March. And he said the news is not getting any better. Helms said he expects the May production average will be around 950,000 bbl/day.
The good news is that the drop in production has bottomed out and "turned the corner." Helms said he believes the low point occurred the week of May 16-23 and has climbed 60,000-to-100,000 bbl/day since then. He cautioned that U.S. crude oil stocks are continuing to increase at a time of year when they should be falling, so would prefer to see a slow rebound in crude production.
Click
here to listen to Helms' comments.
It's been widely reported that nearly 7,000 wells have been shut in, but Helms' report lists fewer than 2,200 wells on the "Inactive" list. He said that's because producers are continuing to operate many of their wells at a much-reduced rate to keep them mechanically sound.
Click
here to listen to Helms' comments.
Helms said many of the wells that have been completely shut down fall into the category of conventional or legacy wells. The April report showed just 390 producing wells in that category, which Helms said was the first time in his considerable tenure that he's seen that number fall below 1,000.
Natural gas production also dropped significantly during the month, falling about 13% to an average of 2.7 billion cubic feet per day. Helms said the good news is that 88% of the produced gas was captured, marking the first time producers hit the statewide capture target.
Click
here to read or download the full Director's Cut.
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Well-Plugging Program Gets Praise, Criticism
North Dakota state officials were complimented this week for their plan to launch an abandoned well plugging program with federal funds provided as part of the CARES Act to support the state's economy, but others said the state's efforts are overdue.
The Department of Mineral Resources, which identified 368 potential wells to plug, conducted a hearing on the program Wednesday during which it heard from more than three dozen producers and others interested in the program.
Ron Ness, president of the North Dakota Petroleum Council, said the $33 million program will do exactly what the law intended by putting people back to work. Ness said most of the wells identified as targets for the program are north of Highway 2 in northwest North Dakota.
Click
here to listen to Ness' comments.
Ness and many of the producers who testified said they were concerned that if the state plugs a well, it could also claim the bond posted for the well to ensure it's reclaimed at the end of its useful life. Ness said he believes the COVID-19 relief funds are intended to cover the full cost of the work, so the state can't "double dip" in terms of covering the cost of the project.
Landowner interests represented at the hearing said the state for too long has been neglecting the need to plug abandoned wells and reclaim the land. Troy Coons, chairman of the Northwest Landowners Association, said abandoned well sites can be a nuisance, causing spills or leaks that can leach into land surrounding the well site,necessitating an expensive clean-up process. Coons said his organization has lobbied the state for years to increase bonding requirements to ensure well sites are cleaned up.
"It is a well-known problem in North Dakota that orphan abandoned wells are increasing in number," Coons said. "Landowners in particular risk becoming saddled with significant liabilities unless the ND Industrial Commission and the Legislature can develop a long-term plan to address this problem."
Click
here to read Ness' testimony on behalf of the ND Petroleum Council. Click
here to read Troy Coons' written testimony on behalf of the Northwest Landowners Association.
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PSC Approves Burke County Wind Farm
The ND Public Service Commission approved a siting permit this week for the 200-megawatt Northern Divide Wind Project to be located in western Burke County.
The project, formerly known as Burke Wind, was rejected by the PSC in June 2019 (see
June 14, 2019 WDEA newsletter) based primarily on comments from state and federal wildlife officials that project developers "could not have picked a worse spot in the state" regarding the wind farm's impact to wildlife. The application was subsequently revised to avoid placing turbines in native prairie grasslands/wetlands and resubmitted in December.
Commissioner Julie Fedorchak, who explained changes made by Northern Divide and parent company NextEra Energy, said the new plan significantly reduces the wind farm's impact on wildlife habitat.
Click
here to listen to Fedorchak's comments.
The wind farm will consist of up to 74 wind turbines, and will also require construction of a 41-mile, 345-kilovolt transmission line that extends from the wind farm to Basin Electric Power Cooperative’s Tande Substation in Mountrail County. Basin has signed a 30-year power purchase agreement with Northern Divide to buy all of the electricity the wind farm generates. Estimated cost of the project is $300 million for the wind farm and $30 million for the transmission line.
PSC Commissioner Randy Christmann expressed reservations about approving the project because of the increasing amount of intermittent energy sources on the grid, but said he agreed the developers had met all the requirements of the state's siting act.
Click
here to listen to Christmann's comments.
Click
here to read or download Northern Divide's 500-page siting application.
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EmPower Commission Talks Transmission
Members Discuss Future of Coal Creek Station
With the recent addition of hundreds of megawatts of wind power in North Dakota, the capacity to add new generation sources to the electric transmission grid is almost non-existent. Adding those intermittent sources of electricity, combined with the shut down of baseload coal generation, has also caused serious questions about the future reliability of the grid.
That was part of the message delivered by John Weeda, director of the ND Transmission Authority, to a meeting of the state's EmPower Commission this week. Its members have begun meeting more frequently in hopes of playing a more active role in addressing state energy policy issues. Weeda's presentation was of particular interest to the group, considering last month's announcement by Great River Energy that it plans to shut down the 1,100-megawatt Coal Creek Station by the end of 2022.
Similar to his remarks to the ND Industrial Commission two weeks ago (see
May 29 WDEA newsletter), Weeda warned EmPower members there is a growing urgency to address vulnerabilities in the electric grid related to the region's increasing reliance on wind energy. He said additional transmission facilities are needed, but is concerned about public resistance to such projects.
Click
here to listen to Weeda's comments.
Weeda said it will be difficult to find a buyer for Coal Creek Station, which is located near Underwood in McLean County, especially a buyer willing to run both of the plant's generating units. He believes it will be important to grid reliability that at least one unit continue to operate, which he said would be economical if the buyer installs technology to capture the coal unit's carbon dioxide emissions to take advantage of Section 45-Q federal tax credits.
Click
here to listen to Weeda's comments.
Weeda urged EmPower members to be prepared to collaborate with companies willing to develop solutions for both the transmission issue and efforts to save Coal Creek. He also urged members to work with local officials in McLean County to develop a solution that is best for the entire state.
State energy policy officials say they are actively working on solutions to both issues. James Leiman, director of the Commerce Department's Economic Development and Finance Division, said it's too early to talk about specific ideas, but said he believes a plan will develop in the coming months.
Click
here to listen to Leiman's comments.
The EmPower Commission is focusing on five areas of discussion:
- Energy or other ares of research
- Establishing a business friendly environment (regulation, zoning, etc.)
- Industrial park development and value-added energy
- Electric transmission, both grid impacts and capacity needs
- Public education and communication, promote understanding and dispel myths
Click
here to learn more about EmPower. Click
here to see a list of its members.
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$9.7 Million Awarded for Airport Grants
Dickinson and Watford City Among Recipients
The ND Aeronautics Commission approved $9.7 million in state infrastructure grants this week to numerous public airports throughout the state.
The list includes 141 projects at 55 different airports in the state. The two largest grants went to airports in Dickinson and Watford City.
Dickinson's Theodore Roosevelt Regional Airport will receive $2 million for ongoing work to rehabilitate its primary runway. Watford City Municipal Airport will receive a total of $5 million for its runway relocation and realignment project. (See
WDEA August 23, 2019 newsletter)
The $7 million to fund the two airport projects is part of a $20 million-dollar transfer from the Strategic Investment and Improvement Fund that was approved by the 2019 Legislature. Funds are intended to support the the large-scale projects ongoing at both the Watford City and Dickinson airports.
The remaining $2.7 million comes from the Aeronautics Commission Special Fund, the primary revenue source of which is state tax collections on aviation fuel and aircraft sales. North Dakota’s airports have recently seen a significant drop in travel due to the COVID-19 virus. The drop in passengers, has in turn, created financial concerns for airports that depend on passengers for revenue. The recently passed CARES Act is expected to provide North Dakota’s airports with up to $85 million dollars of federal assistance to help provide financial relief.
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Four Bears Bridge Construction Starting
Anyone who traveled through New Town and over the Four Bears Bridge this week probably noticed construction crews setting up equipment for work on the bridge, which is scheduled to begin on Monday, June 15.
The project will consist of placing a polyester concrete overlay on the bridge deck and sidewalk, modifying the lighting system, and maintenance updates on other areas of the bridge. While the work is underway, the bridge will be open to traffic throughout the project with construction completed in phases.
Short work zones will be in place to help reduce traffic delays and two-way traffic with reduced speed will be maintained throughout most of the project. There may also be times when flaggers will be present to direct traffic on the bridge. Truckers should note that a width restriction of 12 feet will be in place.
Construction work will take place throughout the week and on weekends. No work will take place July 3-5 due to the holiday weekend.
Weather permitting, work on the bridge deck is expected to be completed in August. Lighting and other maintenance work will take place in the fall and will have minor effects on traffic.
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State Ave. Railroad Bridge Work Set to Begin
A bridge maintenance project on the State Avenue Railroad Bridge in Dickinson will begin on Monday, June 15.
During the project there will be one lane of traffic in each direction. Motorists are asked to use caution through the construction zone.
Expectations for motorists during construction:
- Delays will be minimal
- Speed will be reduced to 25 mph or lower
- Lane closures in place
The expected completion date for the project is mid-July.
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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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Scholarships for the Fort Berthold Reservation
A new scholarship fund has been established for graduating seniors on the Fort Berthold Reservation, with the goal of awarding multiple annual scholarships at $1,000 each.
Beaver Creek, LLC, a locally-owned business in New Town, started the fund this spring in order to give back to their community.
“Saving up for college is difficult enough in ordinary times, but with the added pressures and disappointments of COVID-19, as well as the sluggish economy, we wanted to provide students with better opportunities to aid in their pursuit of higher education,” said Dale Little Soldier, owner of Beaver Creek, LLC.
A
website has been created to advertise the scholarships that will be given out annually. For 2020 graduating seniors from Fort Berthold there are four different scholarships available for $1,000 each, for a total of $4,000 that will be awarded this year. Applications must be completed through the website by June 20th, and scholarships will be awarded by June 30th each year.
“This is a great way for my family to become involved in a community that has done so much to support the oil and gas industry,” said Barrett Withers, COO at Beaver Creek, LLC.
Hunting Bear, a Tier 1 energy service company, and Oilfield Support Services, located in New Town, two additional companies, have also joined Beaver Creek in helping to fund the scholarships.
The Minot Area Community Foundation, a North Dakota not-for-profit corporation, was asked to manage the endowment fund to make these scholarships perpetual. To date, the FBIR Scholarship Fund has raised $52,000 but is actively looking for additional donors. For more information, contact Barrett Withers,
barrett@beavercreekllc.com, 701-898-7061.
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Quick Connect
- Illinois regulators reject bid to delay decision on DAPL expansion -- Reuters
- Burgum wins GOP gov primary; Raknerud takes Democrat House primary -- Bismarck Tribune
- Thomas Beadle wins narrow victory in North Dakota GOP treasurer race -- Bismarck Tribune
- Feds propose $95K fine for ND firm accused of Clean Water Act violations -- Fargo Forum
- State's beyond-line-of-sight network is expanding in western ND first -- Williston Herald
- Tioga hotels surviving pandemic with long-term reservations from workers -- Tioga Tribune
- Williams County and state board release weather radar info for western ND -- Williston Herald
- Wenko discusses economic development during COVID-19 at 1 Million Cups -- Williston Herald
- Frac sand mining ordinance approval delayed until courthouse opens -- Beulah Beacon
- Dickinson airport boardings gradually increase, runway const. on schedule -- Dickinson Press
- District 1 and District 8 are talking about reorganizing. What happens next? -- Williston Herald
- Districts deal with transportation, administration, land for reorganization plan -- Williston Herald
- John Kasmer takes seat on Williams County District 8 school board -- Williston Herald
- Recall petition created for District 8 board member Myles Fisher -- Williston Herald
- Dickinson State University plan to return to face-to-face classes in the fall -- KFYR-TV
- Section of South Unit Scenic Drive closed temporarily in TR National Park -- Williston Herald
- Interior Department: About 23% of US gulf oil, gas still offline after Cristobal -- S&P Global
- Exxon, PBF refineries in Louisiana keep running through storm: sources -- Reuters
- Trump administration cuts oil, natural gas fees in hundreds of cases -- Associated Press
- Barclays raises forecasts for oil prices, but expects pace of recovery to slow -- Reuters
- Zaremba: Is a shale comeback on the horizon? Optimistic voices say yes -- OilPrice.com
- BP plans to cut 10,000 jobs worldwide amid coronavirus pandemic -- Associated Press
- OPEC, allied nations extend nearly 10 million barrel cut by a month -- Associated Press
- Natural gas beats renewables in providing reliable power in emergencies -- Energy In Depth
- Opinion: Climate change extremism, bad energy policy, is dividing Democrats -- Inside Sources
- In New England, wind farms are "like siting landfills, nobody wants them" -- Real Clear Energy
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Factoid of the Week
Unofficial North Dakota 2020 primary election results show a 26.48% voter turnout rate among 581,379 eligible voters. With the primary election completed entirely by mail, absentee ballots will continue to arrive and be counted through next Monday, June 15.
To view complete statewide results in all statewide and local contests and ballot measures, go to
vote.nd.gov.
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June 16
Online
June 17
Online
June 18
Bismarck
June 19
Bismarck
June 19
Williston
June 23
Bismarck
June 25
Online
June 25
Bismarck
July 2
Online
July 8
Online
August 20-21
Williston
September 1-3
Bismarck
September 30 - October 1
Bismarck
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Oil prices and rig count
June 12, 2020
WTI Crude: $36.26
Brent Crude: $38.73
Natural Gas: $1.73
North Dakota Active Oil Rigs: 11 (unch)
6/12/2019 -- 61 rigs
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Geoff Simon
Editor/Executive Director
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