March 1, 2019 -- Line 'em up!
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Western North Dakota landowners line up to testify in opposition to SB 2344, which deals with underground pore space that can be used to store saltwater, gas or other substances.
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Pore Space Bill Draws Opposition
Western North Dakota landowners packed a committee room at the North Dakota Capitol today to oppose a bill they say amounts to a “takings” of rights to their land.
SB 2344, introduced by Senator Jessica Unruh, R-Beulah, is aimed at facilitating temporary storage of produced natural gas. It breezed easily through the Senate with a unanimous 45-0 vote, but provisions in the bill that change the definition of land caught the attention of landowner rights groups.
In her testimony before the House Energy and Natural Resources Committee, Unruh said the bill was intended to “ensure landowners, mineral owners and developers maintain their long existing rights.” But Troy Coons, chairman of the Northwest Landowners Association, told the committee that while his group supports efforts to store produced natural gas, he’s heard from members, non-members and law firms upset about the bill and its unintended consequences.
“Many landowners that I have talked to are extremely alarmed that the first solution proposed for these issues is to entirely take away the pore space owner’s right to compensation,” Kunz said.
Dennis Johnson, an attorney from Watford City, said language in the bill conflicts with provisions of North Dakota’s
Surface Owner Protection Act. Johnson said the bill’s definition of land, which excludes pore space, conflicts with existing state law (
NDCC 47-31-03), which specifies that title to pore space belongs to the surface owner.
Industry proponents of the bill are concerned that a recent North Dakota Supreme Court ruling (
Mosser vs. Denbury), which held that a surface owner is the owner of the pore space under the land, could be extended to require compensation to adjoining landowners for neighboring saltwater disposal wells. They said it’s impossible to track the migration of water in underground formations, and presents a “terrifying” prospect in attempting to compensate landowners for use of the pore space.
The committee took no action on the bill. Committee Chairman Todd Porter, R-Mandan, appointed a subcommittee to review the need for changes to the legislation.
Click
here to read a Bismarck Tribune article about the bill.
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Senate Committee to Hear Prairie Dog Bill
The Senate Finance and Taxation Committee has scheduled a hearing next Tuesday on
HB 1066, which has been dubbed Operation Prairie Dog.
The legislation, which passed the House on an 80-12 vote, provides funding to Hub Cities and oil-impacted communities through distribution of gross production tax revenue, and would create new infrastructure “buckets” for non-oil regions of the state.
Senator Majority Leader Rich Wardner of Dickinson, who was instrumental in the development of the funding package, applauded House passage of the bill during an interview on the radio program,
Energy Matters. Wardner said it is especially important that the bill does not contain a sunset clause because it provides certainty to communities impacted by oil production.
Click
here to listen to Wardner’s comments.
Under the legislature’s current revenue forecast that includes an average $42.50/barrel price for oil, the infrastructure buckets would not fill completely. But Wardner expects that number will be adjusted upward when it is reviewed by Legislative Management on March 11.
Click
here to listen to Wardner’s comments about the revenue forecast.
The committee hearing will begin at 9:00 a.m. on March 5 in the Lewis and Clark Room at the Capitol. Witnesses expected to testify in support of the Prairie Dog bill include Mountrail County Commissioner Trudy Ruland, who serves on WDEA’s Executive Committee, as well as Dickinson Mayor Scott Decker.
Click
here and advance to the 00:15 mark to listen to the full
Energy Matters interview with Sen. Wardner.
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Tribal Tax Sharing Compact Signed
Gov. Doug Burgum and Mandan, Hidatsa & Arikara (MHA) Nation Chairman Mark Fox signed a compact that changes how the state and tribe share tax revenue from new oil and gas activity on the Ft. Berthold Reservation.
“This historic agreement lays the foundation for a stable tax and regulatory environment that will help North Dakota compete with other oil producing states while providing certainty to the tribes, the state and private industry,” Burgum said in a
news release.
“The MHA Nation supports continued responsible energy development, and this compact will help us maximize that opportunity by providing certainty and stability to our members and those looking to invest in our lands and natural resources,” said Chairman Fox. The MHA Tribal Business Council approved the compact on February 25.
The compact changes the current 50-50 tax revenue split so that 80 percent of the production and extraction tax revenue from new wells on tribal trust lands would go to the tribe and 20 percent would go to the state. On fee land, 80 percent of the revenue would go to the state and 20 percent to the tribe.
The compact is contingent upon the passage of
SB 2312, which awaits action in the House. Video of the compact signing is posted on the governor’s
Facebook page.
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House Approves Ballot Measure Reform
The North Dakota House of Representatives gave its approval to a proposed constitutional amendment this week that would require a ballot measure sponsoring committee to seek the state’s guidance in drafting the language in a proposed constitutional measure.
HCR 3007 is the product of an
interim committee that examined ways to improve the initiative and referendum process. Rep. Scott Louser, R-Minot, said legislators routinely seek the assistance of Legislative Council in drafting legislation, so it makes sense that a ballot measure sponsoring committee should have the same access to make sure the language is clear.
Click
here to listen to Louser’s comments.
The House approved the measure by a vote of 77-14. If approved by the Senate, it would appear on the statewide ballot in 2020.
The House also approved
HCR 3034, sponsored by Rep. Vicky Steiner, R-Dickinson, which would require that constitutional amendments be considered by voters only on the general election ballot.
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Study Seeks to Preserve Tribal History
Despite supporting testimony from a half dozen tribal representatives, the ND Senate Energy and Natural Resources Committee has given a do-not-pass recommendation to a resolution that seeks an interim study aimed at identifying and preserving historic and sacred Native American sites.
HCR 4017, introduced by Senate Minority Leader Joan Heckaman, D-New Rockford, asks the legislature to consider studying how to capture the knowledge and expertise of tribal elders, and facilitate cooperation to identify and preserve historic and prehistoric sites. Heckaman said the state is gradually losing tribal elders who are familiar with such sites, and their knowledge will soon be lost forever.
Scott Davis, executive director of the Indian Affairs Commission, testified in support of the resolution. Davis said sacred sites are threatened by modern development, so it’s important the state make an effort to protect them.
Click
here to listen to Davis’ comments.
Davis said once a site is identified, the state should look to secure its location so historic relics are not stolen by looters. He said better public understanding of areas that are important to tribal people would help prevent future conflicts such as the Dakota Access Pipeline protest.
Click
here to listen to Davis’ comments.
The resolution will be considered by the full Senate next week.
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Public Hearing set for Burke Wind Project
The public will have an opportunity to provide input to the ND Public Service Commission next week at a hearing on a proposed $289 million wind farm that would include facilities in both Burke and Mountrail Counties.
Two recent applications from Burke Wind, LLC, have been consolidated into a single public hearing set for
March 8, 2019, at 9 a.m. CST, at Memorial Hall in Bowbells. Burke Wind is a subsidiary of NextEra Energy Resources.
The project includes a nearly 23,000-acre wind energy center located approximately 15 miles southwest of Bowbells. Also included is a 37-mile long, 345 kV transmission line to run from the proposed wind farm in Burke County to Basin Electric’s Tande Substation in Mountrail County.
Click here to
view maps of the proposed project included within the ND PSC “Notice of Filings and Notice of Consolidated Hearing.” Click
here to read an article about the project in the Minot Daily News.
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Feb 2019 Among Coldest in ND History
If North Dakota oil and gas production numbers slip a little in February, you can bet the brutally cold weather was a contributing factor.
February 2019 temperatures don’t come anywhere close to those in February 1936, far and away the coldest month in the state’s history. But the bone-chilling numbers in western North Dakota do rank among the coldest ever.
Tables compiled by
Daryl Ritchison with the state climatologist's office show it was the second coldest February ever recorded in
Bowman,
Minot (experiment station) and
Williston, and the third coldest ever for
Dickinson. Note Dickinson tables are split as long-term records ended in 2010, and were replaced by a site at the airport.
Temperatures throughout the west averaged about 20 degrees below the long-term average. Williston was the cold leader, with an average temperature of 4.5 degrees below zero for the month. Minot was next, averaging 2.4°F below zero (airport reading). Bowman’s average temperature was 0.8 degrees below zero, and Dickinson was the “hot” spot with an average February temp of 0.5 degrees below zero.
As cold as it was, there was only one record set during the month. Williston’s temperature dropped to -43°F on February 8, breaking the previous mark of -41°F set in 1899.
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Williston is a Very Busy City
Airport Construction, Redeveloping Sloulin Field and Trampolines!
It’s easy to hear the excitement and optimism in his voice as Shawn Wenko spoke on this week’s
Energy Matters radio show.
Wenko is the executive director of Williston’s Economic Development office and the first question from Geoff Simon, this week’s host of the radio show, asked for a construction update on the city’s new airport. Despite the cold temperatures and snow, work is advancing as planned with a sharp focus on an October 2019 in-service date.
Click
here for Wenko’s comments on the XWA Project.
As if construction of a new airport isn’t exciting enough, the city has
interesting plans for redeveloping the old airport. Sloulin Field, once FAA decommissioned, offers a development space spanning 800 acres and Wenko outlined the plans for this area. Click
here for his comments.
Of course, one of the primary goals of an economic development office is to bring new things to the community to attract and retain a workforce. “We are working to build a community that people really want to come live, bring their families and set up shop,” Wenko said.
A new facility coming to Williston is an example of this strategy in action. Wenko described the
Safari Trampoline Park, a 22,000 square foot complex set to open next week. As he explains, the park offers much more than just bouncing around. Click
here for his comments.
For an article on the park from the Williston Herald, click
here.
To listen to Wenko’s full
Energy Matters interview, click
here and advance to the 41.30 mark.
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First Lady to Speak at “Recovery” Hiring Event
Spring Job Fairs Planned in Western North Dakota
First Lady Kathryn Helgaas-Burgum will keynote a “Recovery Empowered” hiring event March 26 in Minot.
The event will highlight three areas critical to the success of individuals in addiction recovery. It will be held from 4:00 -7:00 pm at the Clarion Convention Center, 2200 E Burdick Expressway in Minot. The First Lady is scheduled to speak at 7:00 p.m.
The first section of the event is dedicated to employment support and includes a community job fair. The second section is dedicated to housing support, and the third section will highlight agencies and groups that support individuals in recovery. Click
here for a list of participating employers and additional details about the event.
Job Service of North Dakota has organized other spring job fairs in the region:
Click
here for details about the March 19 Multi-Industry Job Fair in Dickinson.
Click
here for information about the March 27 Job Fair in Watford City.
Click
here for details about the April 11 Multi-Industry Job Fair in Minot.
Click
here for information about other job fairs around the state.
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Next Tuesday: EnergyNDDay
It will be a full day but come and go as your schedule permits. It’s EnergyNDDay next
Tuesday, March 5, at the Capitol.
The morning session will discuss energy advocacy with a variety of speakers plus highlight the release of the biennial NDSU economic study on the oil and gas industry. Later in the day, participants can enjoy a no-host social at Stonehome Brewery in Bismarck.
Rob Lindberg, director of Bakken Backers, was a guest on the
Energy Matters radio show this week, and he discussed the day. Click
here for his overview of the event.
MHA Nation Chairman Mark Fox will be joining the event and kick off the speaking program at 11:15 a.m. Click
here for Lindberg’s announcement on Chairman Fox’s appearance.
Anyone in the Dickinson or surrounding area who want a special way to attend, Marathon Oil has sponsored a coach bus to bring visitors from Dickinson to Bismarck and back. The bus will leave from the Ramada Grand Dakota Lodge in Dickinson at 5:45 a.m. MST and return to Dickinson at 7:30 p.m CST. To sign up for the bus, send an
email with names and email addresses of everyone in the group that will be riding on the bus. The public is encouraged to invite colleagues and employees to join the bus.
Lindberg concluded his remarks by inviting all listeners to attend. Click
here for his comments.
Click
here to register or to see the complete agenda for ENERGYNDDAY.
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Davis Refinery takes another step forward
Meridian Energy announced this week that the company has signed a letter of intent with an industry leading firm for the midstream logistics support for the Davis Refinery.
Under the LOI, the midstream logistics firm will build, own and operate the crude oil and refined product midstream and logistics facilities for the Davis Refinery, enabling Meridian to focus on operations of the refinery itself. The firm, which has asked to remain in the background pending development efforts on the assets associated with the LOI, has over 70 years of midstream experience focused on providing a full suite of turnkey solutions to producers across the US.
Meridian has initiated site preparation and grading at the Davis Refinery site and is proceeding with final design and equipment fabrication and procurement with full construction resuming in Spring 2019.
Read the full news release
here.
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Foundation Banquets on the Calendar
The Mule Deer Foundation is hosting its annual series of banquets with one coming to a location near you. This is a great opportunity to win some great prizes, socialize with fellow hunters and help out a great organization.
Saturday, March 3
The Grand Hotel
1505 N Broadway
Friday, March 29
WSC – The Well
1410 University Ave
Saturday, March 30
Dickinson Eagles Club
31 First Ave East
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NDPC Scholarship Applications Open
The Al Golden Scholarship Program, sponsored by the North Dakota Petroleum Council, is now accepting applications for the 2019-2020 school year.
The NDPC will award nine $2,000 scholarships to students pursuing degrees or training in an energy-related field.
Award recipients 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 fall semester of 2019 and spring semester of 2020.
Applications must be submitted or postmarked by June 1, 2019. For qualifications and application requirements, click
here.
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ND Asphalt Conference
Drawing from public agencies and private industry, another top-notch panel of speakers has been scheduled for this year’s North Dakota Asphalt Conference.
Topics at this year's conference include pavement designs, chips seals with warranties, a research report from UND, pavement densities and tack coats. There will also be parking lot demos with an IC Roller.
North Dakota Asphalt Conference
April 3 – 4
Ramada Bismarck Hotel
Bismarck, ND
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Write it Down!
WDEA Annual Meeting
Get this on your calendar! The Annual Meeting of the Western Dakota Energy Association will be held:
October 30 - 31, 2019
Grand Hotel
Minot, ND
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Quick Connect
- State revenue forecast could affect raises, behavioral health -- KXMB-TV
- Smooth going for Aurora Wind Farm at public meeting, economic benefits cited -- Tioga Tribune
- ND's first commercial solar energy project, located in Cass County, gets OK -- Fargo Forum
- Burgum talks TR Library, oil production and Legacy Fund in one-on-one interview -- KFYR-TV
- District judge finds 2017 Lake Sakakawea minerals law constitutional -- Bismarck Tribune
- Killdeer Ambulance runs show dramatic climb; 288 in 2012, 620 in 2018 -- Dunn County Herald
- Pipeline leak technology advances: iPIPE gaining out-of-state attention -- Williston Herald
- Rep. Lefor's bill would rename Highway 22 to 'Veterans Memorial Highway' -- KFYR-TV
- Poll finds majority support Theodore Roosevelt Presidential Library in ND -- Bismarck Tribune
- Bakken key to Continental plans to double size in five years, well count to rise -- Williston Herald
- Williston Basin enhanced completion assets to fuel Oasis Permian expansion -- Williston Herald
- North Dakota House committee approves proposal seeking 'veto session' -- Fargo Forum
- Killdeer school puts out a call for help for youth with behavioral health issues -- KXMB-TV
- One size doesn't fit all: A new DHS could be bigger than eastern counterparts -- Dickinson Press
- Board rewrites policies, map for tax incentive program for downtown area -- Minot Daily News
- Halfway through session, most school building bills have been defeated -- Williston Herald
- Presidential library funding, initiated measures resolution dominate forum -- Tioga Tribune
- UMary starts new workforce development initiative thanks to a $2 million donation -- KFYR-TV
- Record production: U.S. oil and gas exports see an impressive start to 2019 -- Energy In Depth
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Factoid of the Week
North Dakota’s lignite coal industry is a big deal in the state. Mining coal and using it to generate electricity is responsible for $5.7 billion in economic activity annually in the Peace Garden State. The industry employs 3,800 workers directly and supports another 10,200 secondary employees.
For more information, see March
Table Topics
from the Lignite Energy Council.
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March 3
Minot
March 5
Capitol
March 7
Stanley
March 8
Bowbells
March 14
Fargo
March 19
Dickinson
March 26
Minot
March 27
Watford City
March 29
Williston
March 30
Dickinson
April 3 - 4
Bismarck
April 11
Minot
April 24 - 25
Bismarck
April 30 - Stanley; May 1 - Grand Forks; May 2 - Jamestown
July 16-17
Bismarck
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Oil prices and rig count
March 1, 2019
WTI Crude: $55.80
Brent Crude: $65.07
Natural Gas: $2.86
North Dakota Active Rigs: 67 (up 1)
3/1
/2018
-- 59 rigs
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Geoff Simon
Editor/Executive Director
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