State May Get a Share of Wind Energy Taxes
The 2019 North Dakota Legislature will be asked to consider legislation that would eventually channel one-third of taxes paid by the wind industry to the state treasury.
Currently 100% of the revenue paid by the wind farms stays in the county where the wind installation is located.
Representative Mike Brandenburg, R-Edgeley, who is a leading advocate for wind energy, told members of the interim Energy Development and Transmission Committee last week the wind industry pays about $18 million per biennium on the 2,600 megawatts currently installed in the state. He said he’s heard complaints that “wind wasn’t putting anything into the state coffers, it’s all going to the counties,” so now is probably the right time for the state to begin collecting a share of the tax.
“I think it (a one-third share) balances things out,” Brandenburg said. “Looking at it from a megawatt basis, when you compare (taxes paid by the coal industry vs. the wind industry), it levels it on a megawatt basis, energy-for-energy, it levels that field.”
Brandenburg said he’s “catching it back home” from people who don’t like the idea, but from a policy standpoint it’s the right thing to do so “everybody benefits.”
Wind farms currently pay different rates of taxation depending on the date they were constructed, but all will eventually migrate to the same rate as they repower, Brandenburg said. The tax paid is a combination of a capacity and production tax, intended to be equal to a 4½ percent rate of property taxation.
The interim committee voted to support the concept of the state receiving a share of wind taxes, but did not consider any specific legislation.
Click
here to read a background memo on Wind Energy Taxation and Revenue Distribution.
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Coal Conversion Counties to Meet Oct 24
The annual membership meeting of the Coal Conversion Counties will be held Wednesday, October 24, at Washburn High School.
This is an important meeting for residents of McLean, Mercer and Oliver counties whose lives are affected by mines, plants and associated businesses, according to current CCC chairman John Phillips. The meeting will include election of a full slate of officers to the CCC Board of Directors, Phillips said.
The tentative agenda also includes presentations from the Lignite Energy Council, Basin Electric Power Cooperative and North American Coal, as well as a budget report and legislative preview. The business session concludes with election of directors.
The meeting begins with dinner at 6:00 p.m. with the meeting to follow at approximately 6:30. Those interested in attending are asked to RSVP Treasurer
Steve Frovarp.
Click
here to see the agenda.
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Truck Permit Panel at WDEA Annual Meeting
Room Block Availability Extended to October 26
Companies in the trucking business, county highway officials and others will hear a lively discussion of issues related to the movement of oversize trucks in North Dakota at the annual meeting of the Western Dakota Energy Association.
The meeting will be held November 7-8
at 4 Bears Resort and Casino in New Town. The meeting kicks off at 1:00 p.m. with a presentation and panel discussion about the LoadPass permit system, which WDEA operates for North Dakota cities and counties. The panel will be moderated by Ron Ness, president of the ND Petroleum Council. Panel members include Mountrail County Commissioner Trudy Ruland, NDDOT Williston Region Engineer Joel Wilt, ND Township Officer Tom Wheeler, and Daryl Anderson, owner/operator of Ham’s Well Service.
“We want to have a free-ranging discussion of any issues, problems or ideas to improve the permit system,” said LoadPass Manager Janet Sanford. “We operate the system for the benefit of the cities/counties and the industry, and want it to work well for all the parties.”
The
agenda
for the two-day gathering includes a number of other topics of interest to the oil/gas and coal-producing counties. Topics include a discussion of gas capture challenges, reclamation issues, energy research efforts, as well as funding challenges facing western communities.
Click
here for additional details. A block of rooms at a reduced rate is available at 4 Bears Lodge through October 26. Contact the lodge at (800) 294-5454. Mention Western Dakota Energy when registering. Early registration fee for the annual meeting is just $75, but will increase to $100 after October 26.
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ND Farm Bureau, ND Rural Electric Co-ops
Announce Opposition to Measure One
The list of groups and organizations opposed to Measure One, the so-called anti-corruption measure, continued to grow this week with announcements by the North Dakota Farm Bureau and the ND Association of Rural Electric Cooperatives that they are urging their members to
Vote No on the measure.
The ND Farm Bureau
news release said Measure One “would create problems where none exist and will establish un-elected bureaucrats with an unlimited budget to ride herd over the non- existent problem.”
NDFB President Daryl Lies said the constitutional measure undermines one of the organization’s founding beliefs about Freedom of Speech.
Click
here to listen to Lies’ comment.
Lies added that NDFB believes “this effort is driven by out-of-state funding and is an attempt by the political elite to limit or prohibit basic interaction between citizens and elected officials.”
The ND Association of Rural Electric Cooperatives, at its October 11 board meeting, also went on record in opposition to Measure One. The prevailing view of the NDAREC board is that Measure 1 contains too much ambiguity, which will limit the organization’s ability to advocate on behalf of its members, according to Josh Kramer, NDAREC executive vice president and general manager.
“As cooperatives, we strongly support transparency, ethics and good governance practices, and know there is always room for improvement in these areas,” Kramer said. “However, the cooperative movement was born out of grassroots advocacy and there is too much uncertainty in Measure One’s impacts on the ability to engage at the grassroots level.
Click
here to read the NDAREC news release.
Several state newspapers have published editorials urging a No vote on Measure One.
Click
here to see WDEA Exec Geoff Simon’s Measure One presentation to the Lignite Energy Council.
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Bakken Propels North Dakota to Top Rankings
North Dakota has emerged as a national growth star according to a
State of the Heartland Report by the Brookings Institution. Driving North Dakota's growth is the surge in employment opportunities.
The report says North Dakota led the nation with its strong growth rate for employment at new firms. The state is leading the
nation with annual job growth of 2 percent since 2001, largely driven by the state’s oil and gas boom.
As to the state's output, North Dakota has seen the fastest economic
growth in the Heartland and the nation as a whole, with real annual growth of five percent since 2010, largely due to the rapid growth of the state’s energy sector and the advent of hydraulic fracturing.
Click
here for the full report.
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Slight Rise Expected in Heating Fuel Costs
The Energy Information Administration forecasts the average U.S. household will spend more for home heating fuels this winter.
Natural gas prices could rise by 5%, home heating oil by 20%, and electricity by 3%, while propane expenditures are forecast to remain similar to last year.
The EIA's latest report show nearly half of all U.S. households heat primarily with natural gas. The EIA expects households heating with gas to spend about $30 more this winter compared with last winter.
Households are expected to spend about $36 a month more for electricity than they did last year.
Click
here for more details.
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Williams County Downtown Offices Open
At the end of the month, residents in and around Williston will be able to enjoy the convenience of the new Williams County downtown campus.
"People will find it easier and more convenient to access the services they need," said Williams County Communications Officer Lindsey Harriman.
With the growth of the county population, more staff public "touch points" with the county were needed, Harriman said. The new facility will help people find the information and services they need more easily.
The $50 million facility includes the remodeling of three existing buildings along with additional parking.
The opening ceremony is scheduled at 1:00 pm on October 29, at 206 East Broadway in what local residents will remember as the MDU building.
Click
here to learn more on Williams County's Facebook page.
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Highway Safety Vision Zero Plan is Refined
The 5-year highway safety plan called Vision Zero has been updated to include a short-term 2-year goal.
The North Dakota Department of Transportation (NDDOT) says the updated plan incorporates the vision, mission, and short-term goal of the newly launched strategy, Vision Zero.
- Vision: Establish a culture of personal responsibility
- Mission: Eliminate fatalities and serious injuries caused by motor vehicle crashes
- Short-term goal: Reduce motor vehicle crash fatalities to fewer than 75 by 2020
There were 116 crash fatalities in 2017. To reach the short-term goal, fatality trends would have to decrease approximately 4.6 percent a year. Click
here for the latest on Vision Zero from NDDOT.
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Public Comment Open on Coyote Creek Mine
Two federal agencies are seeking public scoping comments on an environmental assessment that will analyze impacts from leasing 320 acres of federal coal to the Coyote Creek Mining Company adjacent to its existing Coal Creek Mine in Mercer County.
The two agencies are working together to streamline federal policy that requires compliance with the National Environmental Policy Act.
The purpose of the scoping process is to obtain public feedback on relevant issues that may influence the development of the environmental analysis. Comments will be accepted for a 15-day period ending on Oct. 29.
Click
here to read more from the BLM.
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Quick Connect
- Protesters disrupt Energy Transfer Partners meeting in Dallas -- KDFW
- ND spends $54,000 in legal battle against DAPL Security Tiger Swan -- AP
- Rural SD counties fear costs if Keystone XL pipeline protests occur -- KSFY-TV
- North Dakota mineral owners may need a voice in the legislature -- Tioga Tribune
- Ethics policy finalized for ND Governor's office, $50 value gift limit -- Bismarck Tribune
- Favorable winter weather, mild with less snow, remains likely -- Minot Daily News
- Survey: North Dakotans aren't too efficient with their energy use -- KX News
- US gasoline consumption stalls as higher prices take their toll -- Reuters
- Energy independence: American Jewish Organizations tour the Bakken -- KFYR-TV
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Factoid of the Week
Gasoline is the most consumed petroleum product in the United States.
In 2017, consumption of finished motor gasoline averaged about 9.33 million barrels per day (392 million gallons per day), which was equal to about 47% of total U.S. petroleum consumption.
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October 23
Bismarck
October 24
Bismarck
October 24
Washburn School
October 25
Bismarck
October 25
Bismarck
October 29
Williston
November 7-8
4 Bears - New Town
November 15
Bismarck
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Oil prices and rig count
October 19, 2018
WTI Crude: $69.20
Brent Crude: $79.86
Natural Gas: $3.25
North Dakota Active Rigs: 71 (up 4)
10/19/2017 -- 56 rigs
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Geoff Simon
Editor/Executive Director
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