ND Prepared to Sue State of Washington
Crude by Rail Legislation Likely Unconstitutional
State leaders made it abundantly clear this week the state of North Dakota is prepared to sue the state of Washington if Governor Jay Inslee signs legislation impacting the movement of oil trains in his state.
Upwards of 200,000 barrels of Bakken crude move by rail every day to support the operation of three refineries in the state in Washington. But the state legislature in April approved
SB 5579, a bill that requires crude oil to have a lower vapor pressure than North Dakota officials say is practical. It outlaws unloading of crude with a vapor pressure greater than 9 psi at facilities built after January 1, 2019. Other facilities would face similar restrictions if Bakken crude shipments to Washington increase more than 10% in the next two years.
The bill passed the Washington House 53-40, and received final approval in the state Senate on a 27-22 vote. Gov. Inslee, who is a climate change advocate and opposes the use of fossil fuels, is likely to sign the legislation.
At a meeting this week, the ND Industrial Commission (comprised of the governor, attorney general and ag commissioner), said the state would file a lawsuit to block the legislation and would likely win on constitutional grounds because NDIC believes the legislation violates the interstate commerce clause.
In an interview on the radio program
Energy Matters, Kari Cutting, VP of the North Dakota Petroleum Council, said the evidence shows new rail safety regulations enacted in 2015 have been effective.
Click
here to listen to Cutting's comments.
Cutting said the legislation would negatively impact Washington state refiners, and may prompt other anti-oil state legislatures to pass similar bills.
Click
here to listen to Cutting's comments.
Cutting said Washington's legislation is counter-productive because it would lead to more imports of foreign oil.
Click
here to listen to Cutting's comments. Click
here and advance to 1:05 to listen to the full interview.
An unsuccessful attempt to amend the bill would have required Washington's Department of Ecology to review the environmental impacts of increased oil tanker traffic related to reducing crude delivered by rail. Another amendment that failed would have required the state of Washington to appropriate $2 million to defend the state against North Dakota's impending litigation, or the bill would have been nullified.
North Dakota's Congressional delegation wrote a letter to Gov. Inslee urging him to veto the bill. Click
here to read the letter.
|
|
Oil Industry Growth Reflected in Sales Tax
Big Increases in Williston and Other Western Cities
Communities throughout western North Dakota experienced significant year-over-year growth in taxable sales based on 2018 collection figures released this week by the state Tax Commission.
“You can see how the oil industry has impacted this report when you take note that the majority of the counties with larger increases were in the west,” said Tax Commissioner Ryan Rauschenberger. “Mountrail and McKenzie counties, two major oil producing counties, both grew by over 40% in 2018.”
Of the state's 15 major industry sectors, 14 reported taxable sales and purchase gains when compared to 2017, Rauschenberger said. Most notably, the Mining and Oil Extraction sector increased by $835.4 million (a 42.34% increase).
Williston's sales tax collections jumped more than 26% last year, putting it once again ahead of Bismarck in second place among North Dakota cities, trailing only Fargo. Taxable sales in Williston totaled $1.56 billion for 2018. The city of Dickinson experienced a 14% increase in sales last year, and tax collections in Minot were up nearly 4%.
From a county perspective, Mountrail topped the growth list with a 43.45% increase, barely nudging out McKenzie County, which saw a 43.3% increase.
Click
here to see the 2018 Annual Sales & Use Tax Statistical Report.
|
|
Dickinson School Vote Tuesday, May 7
$115 Million Bond to Build New High School
Dickinson voters will decide next week the fate of a $115 million bond issue to fund the construction a new high school.
The new school would be built adjacent to the existing Dickinson High School, incorporating a 1997 addition and the existing main gymnasium and commons for continued use. The project would result in a property tax increase of $19.38 per month per $100,000 of true and full value on residential property.
School officials say the new school makes economic sense due to steadily growing high school enrollment, which is projected to grow to 1,600 in coming years, exceeding the capacity of existing classroom space. The current building also has significant maintenance needs, including the boiler system, HVAC, and roof repair that would cost $25-$30 million. Avoiding that expense would save the district money that could go toward construction of a new elementary school.
Polls will be open from 7:00 a.m. to 7:00 p.m. Tuesday. Polling locations and other details are available in the
Notice of Election. Click
here to see videos and additional information about the school bond vote.
Bond votes are scheduled May 14 for two other North Dakota school districts with expansion plans. Click
here for information about Williams Co. #8, and
here for information about Nesson No. 2. (Ray) district.
|
|
Burgum Disappointed by School Funding
Governor Doug Burgum said he was disappointed by the 2019 Legislature's failure to provide on-time funding to North Dakota school districts.
Current law provides state financial support to public school districts based on the previous year's enrollment, which means growing districts get no state aid for their new students. During an interview on the radio program
What's on Your Mind, Burgum said the legislature should recognize that it's unfair to expect growing districts to educate new students without state support.
Click
here to listen to Burgum's comments.
The legislature did approve a bill that will move the state closer to on-time funding, providing 50% of the payment in the second year of the 2020-2021 biennium. But Burgum said the state has the financial resources to make the full payment now, and it should because quality schools are an important factor in attracting workforce to the state. He pointed out the legislature spends a lot of money to take care of school districts with declining enrollment, but ignores the needs of those that are seeing big increases.
Click
here to listen to Burgum's comments.
______________________________________________________
Burgum Vetoes Legacy Fund Earnings Shift
Provision would have shorted School Trust Fund
Governor Burgum issued a veto this week of a section of a budget bill that would have counted earnings from the state Legacy Fund earned this biennium as part of next biennium's revenue.
The language in question is in Section 19 of
SB 2015, the appropriations bill of the Office of Management and Budget. The governor's veto message said the language "manipulates the recognition of state revenues which artificially reduces the general fund by hundreds of millions of dollars."
"It misleads legislators tasked with voting on appropriations bills, and taxpayers deserve to know the true financial status of the state," Burgum said.
If allowed to stand, the language would have also prevented the repayment of funds owed to the Common Schools Trust Fund. It was discovered this year that the fund was owed more than $64 million for extraction tax revenue it did not receive from oil produced on the Ft. Berthold Reservation. The bill that provided for repayment,
SB 2362, contained a caveat that the money would only be repaid if Legacy Fund earnings transferred to the general fund at the end of the 2019-21 biennium exceed the legislature's estimate by at least $64,370,000. If there was no transfer this biennium, there would be no repayment.
|
|
WDEA Legislative Info Meetings Set
WDEA members and the general public are invited to attend one of three post-legislative information sessions scheduled in mid-May.
WDEA Executive Director Geoff Simon and WDEA legislative consultant Brent Bogar will recap the most important issues of the 2019 session, and answer questions about the impact of various legislation.
Meetings are scheduled:
- May 15 at 10:00 a.m. CDT in the commission chambers at the Ward County Courthouse in Minot;
- May 16 at 9:00 a.m. CDT in conjunction with a meeting of the Vision West Consortium at the Williams County Highway Department in Williston; and
- May 16 at 4:00 p.m. MDT at a location to be determined in Dickinson
Click
here to read WDEA's three-page final report of the 2019 Legislature.
|
|
McKenzie Co. Flood Claims Nine Homes
McKenzie County Emergency Manager Karolin Jappe said this week that an initial property damage assessment determined that nine homes were completely destroyed by Yellowstone River flooding this spring.
Another 12 homes suffered extensive damage, Jappe said. In addition to property damage, farm land, county roads, irrigation ditches and other infrastructure in the area was significantly impacted.
The flooding this spring impacted areas in the Yellowstone Valley that had never before experienced flooding, so most affected homeowners have no insurance to cover their losses. The unprecedented flooding was attributable to abnormally thick ice that former during a bitterly cold February. As ice broke up and surged down the Yellowstone River, it had nowhere to go when it hit the still-frozen confluence with the Missouri River near Williston.
Jappe said several organizations are scheduling fundraisers to help the flood-impacted families, and noted that the community has already been very generous.
Click
here to listen to Jappe's comments.
Any business or individual that would like to volunteer to help with the clean-up and demolition of damaged property is urged to contact Jappe by
email.
The North Dakota Community Foundation set up a Disaster Response Fund to help flood victims with monetary donations. Money donated will provide grants to agencies assisting individuals affected. Click
here to make a donation. In addition, First International Bank & Trust in Watford City has established an account for flood-stricken families. To donate, go to a
branch office or send the donation to:
First International Bank & Trust
P.O. Box 607
Watford City, ND 58854
Attention: McKenzie County Flood Recovery
The state Industrial Commission budget will also provide some relief for families affected by the flooding. this spring. The bill will provide 1% loans of up to $75,000 to make repairs or replace lost equipment through the Bank of North Dakota.
|
|
State of North Dakota Officially has a DEQ
Dept of Environmental Quality Effective April 29
It’s the first state agency created since 2009. The North Dakota Department of Environmental Quality officially became a separate agency on Monday.
The new department is the result of passage of
SB 2327 by the 2017 Legislature. The legislation provided for the separation of the Environmental Health section of the Department of Health into a separate department. Lawmakers wanted to elevate the importance of environmental protection by creating the cabinet level agency.
The agency’s mission remains the same: to conserve and protect the quality of North Dakota’s air, land and water resources following science and the law. The new department will continue to share services with the Health Department to promote efficiency. Shared services include human resources, payroll and accounting. The DEQ will remain in its current headquarters location on East Divide Avenue.
For more information about the new agency, see its
website. For the news release announcing the new agency, click
here.
|
|
Arnegard Fire Dept Ribbon Cutting Set
There’s a new fire hall in Arnegard and the community's residents are ready to celebrate!
An invitation has been extended to attend a Ribbon Cutting and Grand Opening this Saturday, May 4. The festivities start at 11 a.m. Lunch will be prepared by the McKenzie County Ambulance and Arnegard Volunteer Firefighters. Proceeds from the Silent Auction will go to the Arnegard Rural Fire District.
The McKenzie County Sheriff’s Office and Highway Patrol will provide free car seat safety checks. Cotton candy and popcorn will be available from the Arnegard Booster Club.
|
|
ND Rural Leadership Accepting Applications
NDSU Extension’s Rural Leadership North Dakota is looking for participants for its ninth class, which will begin in November.
The RLND program began 16 years ago to develop agricultural and community leaders for the future. The 18-month leadership development program includes in-state seminars with experts; tours of agricultural and community businesses; out-of-state trips to meet with agricultural, business and government leaders; and a trip to another country (destination to be determined). Previous classes visited Brazil, Costa Rica, Panama, Thailand, Vietnam and Chile.
The program helps participants enhance leadership skills, such as thinking critically and creatively, communicating effectively, self-awareness, decision making, strategic planning and managing conflict. Participants also learn about agricultural and rural policy, future trends that could affect North Dakota, innovative ways to fund local and regional development projects, marketing, civic engagement, industry and community advocacy, and how to work with the state legislature.
Tuition for the RLND program is $4,000, which covers all meals, hotels and travel expenses, including buses to in-state seminars and air fare to out-of-state seminars. The deadline to apply for RLND Class IX (2019-21) is June 30. Applicants must have been a state resident for at least a year and be able to attend all of the seminars. For more information, visit
RLND’s website, or call 701-231-7171.
Click
here to see the program brochure. Click
here for an application form.
|
|
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 Gary Wilz said the association is offering the scholarships to help the industry and western communities meet the workforce challenges now being experienced with the surge in oil industry activity.
“We recognize that North Dakota will see benefits from higher oil prices only if the industry is able to attract the workforce it needs,” said Wilz, who is Superintendent of the Killdeer Public School District. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy industry.”
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 August 31, 2019. Scholarships will be awarded in September.
|
|
TransCanada Scholarships Available
TransCanada is offering educational scholarships across the U.S. and Mexico for soon-to-be college students.
Applicants must currently be enrolled or plan to enroll in college for the 2019-2020 school year, a citizen or permanent resident of the U.S., located in a community near TransCanada's operations or projects, and would benefit from supplementary education training. Qualified applicants could receive a scholarship valued at up to $10,000.
Three scholarship categories are offered. The “Community Leaders” scholarship is in support of students who demonstrate a strong community commitment through leadership, volunteerism, community involvement or other activities that benefit their community. The “Indigenous Legacy” scholarship supports Indigenous students pursuing any full-time, post-secondary program at a registered education institute. The “Trades” scholarship supports students who are entering or enrolled in a qualifying trades program at a registered education institute.
Click
here to pre-qualify for a TransCanada scholarship and become eligible to win a MacBook Pro Student Prize Pack. Applications are due May 17.
|
|
Quick Connect
- Burgum signs last bills, but vetoes Legacy Fund accounting -- Fargo Forum
- Survey suggests solid economic growth ahead for Plains states -- KXMB-TV
- Legislative Management Committee gets new chairman - Rep. Chet Pollert -- Fargo Forum
- Interim study group aims for consensus in using Legacy Fund earnings -- Bismarck Tribune
- North Dakota's largest trade associations seek youth for advisory council -- Minot Daily News
- Public Service Commission approves 77-mile NGL pipeline in McKenzie Co. -- Bismarck Tribune
- Williston #1 seeks energy impact grant to address crowding at high school -- Williston Herald
- Troy Walters, embattled Grenora school superintendent, resigns -- Williston Herald
- Community group finds nuclear waste disposal bill better but not perfect -- Minot Daily News
- Bowman Co. landowners say wind farm company helicopter stampeded, killed cattle -- KFYR-TV
- Williams County updates weight restrictions on chip seal and gravel roads -- Williston Herald
- Dickinson working to become Cardiac Ready Community, must met criteria -- Dickinson Press
- Lake Sakakawea declared ice free on Monday after high-wind weekend -- Minot Daily News
- New election equipment funded by North Dakota Legislature in place by 2020 -- Fargo Forum
- Rachel Richter Lordemann named new Williston Chamber president -- Williston Herald
- Williston faces big daycare crisis, only 25 licensed providers within the city -- KFYR-TV
- Wardner: Digitization of TR materials to happen in Dickinson State University -- Dickinson Press
- Reuters Survey: OPEC supply squeeze seen supporting higher oil prices -- Reuters
- Department of Justice opens investigation into failed CO2-capture coal plant -- ArsTechnica
- Coal plant closure, questions about cost of wind, dominate MDU rate hearing -- Sidney Herald
- U.S. reached record energy consumption in 2018; Fossil energy supplied 80 Percent -- IER
- Greenpeace drops effort to move DAPL lawsuit to a friendlier venue -- Associated Press
|
|
Factoid of the Week
The first commercial lignite coal mine opened in Morton County in 1873 with Lt. Col. George Armstrong Custer providing protection for the early miners. By 1900 there were a total of 73 underground mines operating. Over the next 20 years, mining gradually transitioned to the surface for increased productivity and safety. By 1930, surface mines surpassed the number of underground mines.
|
|
May 5-7
Oklahoma City
May 7-8
Williston
May 9
Dickinson
May 16
Williston
May 27-29
Regina
May 28
Bismarck
June 17-20
Bismarck
July 16-17
Bismarck
July 16
Bowman
July 17
New Town
July 18
Van Hook
|
|
Oil prices and rig count
May 3, 2019
WTI Crude: $61.94
Brent Crude: $70.85
Natural Gas: $2.57
North Dakota Active Rigs: 63 (down 1)
5/03
/2018
-- 62 rigs
|
|
Geoff Simon
Editor/Executive Director
|
|
|
|
|
|
|
