NPDC President Ness: Oil Industry "Is in a Funk"
The president of the North Dakota Petroleum Council says oil industry CEOs are telling him they're struggling to attract capital, which he attributes in part to the shrill rhetoric of political candidates pushing renewable energy.
Ron Ness, who spoke to the North Dakota Chapter of NARO this week, said America is becoming split between consumer states and producing states. And even in producing states such as Colorado, there's a growing anti-oil movement. Ness pointed out legislation has been enacted in some states that bans hydraulic fracturing, Washington state passed a bill targeting Bakken crude by imposing a more stringent vapor pressure standard, and legislation proposed in Oregon would place a tax on every crude oil rail tanker coming through the state to build a fund in case there's a spill.
Ness said he's concerned many young people who hear about the "Green New Deal" may not understand the importance of reliable energy. He said he recently met with a number of industry CEOs at an NDPC board meeting in Denver, and they told him attracting capital is a huge problem.
Click
here to listen to Ness' comments.
Ness said while North Dakota has a positive business climate that is supportive of the oil industry, the state is not immune to political changes.
Click
here to listen to Ness' comments.
Ness said "there is something that is badly amiss" in the country today. He told of another CEO who is adding a rig because his company owns a lot of federal minerals and "he's sincerely concerned what's going to happen in November 2020 and how quickly a decision can be made to not allow leases to go forward and permits to be granted."
Ness said it's a challenge to get the message out to "states that don't produce oil," which he said includes Fargo and Grand Forks which see a lot of in-migration of students from Minnesota which has a new governor who wants to be 100% renewable.
"That's okay in his house, but at my house when I want heat I want heat, and when I want light I want light," Ness quipped.
"We're losing the game is what I'm trying to say," Ness said, and encouraged the NARO crowd to have a conversation with their children and grandchildren about the importance of reliable energy.
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ND NARO Ponders Need for a Lobbyist
Members of the North Dakota chapter of the National Association of Royalty Owners (NARO) met this week in Bismarck, and one topic that came up over and over was whether the group should consider employing a lobbyist to represent their collective interests.
Several times throughout the two-day meeting NARO members expressed frustration when questioning oil company deductions on royalty statements. One individual described it as a “David and Goliath” matchup wherein the royalty owner felt overmatched and found it difficult to get satisfactory answers from the industry.
Grant Black, executive director of NARO at the national level, spoke during the meeting. Black said some state NARO chapters do hire lobbyists, and that it comes down to the perceived need in each state.
Click
here to listen to Black’s comments.
Black said 11 states have NARO chapters, and North Dakota’s is one of the strongest.
Click
here to listen to Black’s comments.
Click
here to learn more about NARO. Join WDEA Executive Director Geoff Simon on Tuesday, June 25, for an interview with North Dakota NARO Chapter President Tony Watterud on the radio program,
Energy Matters. Watterud’s interview will air at approximately 3:35 CDT.
Energy Matters airs every Tuesday from 3:00–5:00 p.m. on KFYR and KLTC Radio, and is rebroadcast Saturday on WZFG and KTGO Radio.
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EPA Finalizes Affordable Clean Energy Rule
The U.S. Environmental Protection Agency (EPA) issued the final Affordable Clean Energy (ACE) rule this week, replacing the Obama administration’s overreaching Clean Power Plan (CPP).
EPA Administrator Andrew Wheeler said the rule will continue to assure Americans access to affordable and reliable energy, which he said the CPP would have jeopardized.
Click
here to listen to Wheeler's comments.
Wheeler said the new power plant regulation complies with the intent of the Clean Air Act, empowering states and restoring the rule of law.
Click
here to listen to Wheeler's comments.
The ACE rule establishes emissions guidelines for states to use when developing plans to limit carbon dioxide (CO2) at their coal-fired power plants. Specifically, ACE identifies heat rate improvements as the best system of emission reduction for CO2 from coal-fired power plants, and the improvements can be made at individual facilities. States will have three years to submit plans, which is in line with other planning timelines under the Clean Air Act.
Also contained within the rule are new implementing regulations for ACE and future existing-source rules under Clean Air Act Section 111(d). The guidelines will inform states as they set unit-specific standards of performance. For example, states can take a particular source’s remaining useful life and other factors into account when establishing a standard of performance for that source.
Click
here for more information, including a version of the Federal Register notice and fact sheets. Click
here to see the EPA news conference which also featured remarks from members of Congress.
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Final EIS Issued for Little Mo Crossing
The Federal Highway Administration and other cooperating agencies have released the Final Environmental Impact Statement (EIS) and Record of Decision for the Little Missouri River Crossing Project.
The EIS reviewed a number of possible alternatives for another Little Missouri Crossing between the Long X Bridge and Interstate 94. The project area is about 20 miles north of Medora and due west of Fairfield. The new bridge would connect Belle Lake Road with East River Road.
The preferred alternative would include construction of a bridge, about 600 feet long with three to five spans, resulting in one to three piers within the banks of the Little Missouri River. The final number of spans and piers would be determined during final design, based on hydraulic and geotechnical studies. The clear roadway width through the bridge would be a maximum of 36 feet. Total width of the bridge would be 38 to 40 feet depending on the traffic barriers.
Click
here to see the proposed alternatives. Click
here to see the 192-page Final EIS/ROD. Click
here for additional details about the project.
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Dunn County Dedicates New Courthouse
The Dunn County Commission held a community dedication ceremony yesterday in Manning, officially dedicating the county’s courthouse expansion project.
About 300 people turned out for the dedication ceremony that featured remarks from Senator Rich Wardner, who said he has a strong affection for the area because his wife, Kayleen, is a Dunn County native. Wardner said he suspected there would be legislative critics who would call the new facility extravagant, but he described its design as “conservative, and built for growth.” The building is organized along a two-level concourse that provides public service windows, shared meeting rooms and limits direct access to county staff.
Following closing remarks from Commissioner Reinhard Hauck, commissioners and county staff lined the sidewalk in front of the building for a ribbon cutting ceremony.
The project was completed in phases in response to growing demands on county staff primarily related to oil development. The initial phase which opened last August included the new commission chamber and office space for county Social Services, the Extension Service, Veterans Service and other staff, many of whom previously worked out of offices in Killdeer. The second and third phases provided new and remodeled space for the county sheriff, clerk of courts and the existing courtroom.
The price tag for the entire project was $14.3 million, paid through the county’s Capital Project Fund. Dunn County ranks No. 2 among oil-producing counties, pumping around 8 million barrels per month.
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NDIC Awards Outdoor Heritage Grants
Little Mo Rec Area Gets Money for Campground
The North Dakota Industrial Commission awarded nearly $5.2 million in Outdoor Heritage grants yesterday, including $86,500 to support redevelopment of the Little Missouri Recreation Area north of Dunn Center.
Outdoor Heritage Advisory Board Chairman Jim Melchior said the project, total cost of which is $214,000, will result in development of 34 camping spots along with other improvements.
Click
here to listen to Melchior’s comments.
Another project that had its origins in Dunn County received an additional $1,225,000 grant to keep it going. Melchior said the Working Grassland Partnership program developed by the North Dakota Natural Resources Trust has been very popular.
Click
here to listen to Melchior’s comments.
The Industrial Commission also approved a $275,800 grant to the City of Stanley for development of a walking path leading from Main Street to the Stanley City Pond and Stanley Scout Facility. Beulah Parks and Recreation will also receive $10,000 to help with work in Beulah’s Troy Park.
The largest grant among the 11 approved is more than $3 million to the ND Conservation District Employees Association for a Statewide Tree Planting Initiative. The ND Petroleum Foundation also received $88,650 to support its Planting for the Future tree-planting project.
Chairman Melchior, who retired from a career in the coal industry a few years ago, is a charter member of the Heritage board, but plans to step down to be replaced as chairman by Bob Kuylen of South Heart. Melchior said serving on the advisory board was a rewarding experience.
Click
here to listen to Melchior's comments.
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WDEA Exec to Host Energy Matters Radio Show
WDEA Executive Director Geoff Simon will be the guest host next week on the radio program,
Energy Matters.
The list of guests to appear on the show with Simon include Brent Bogar of Jadestone Consulting talking about WDEA’s new
Wise Roads Project. Also scheduled to appear is Tony Watterud, president of the
North Dakota chapter of the National Association of Royalty Owners. Ed Woods with
North Dakota LNG will talk about the future of the LNG industry. Simon will also talk with Senate Majority Leader Rich Wardner, who will be interviewed during the final half hour of the program to discuss the numerous topics to be covered by the legislature’s interim committees.
Energy Matters is broadcast on KFYR and KLTC Radio from 3:00 to 5:00 p.m. (CT), and is rebroadcast Saturday on WZFG and KTGO Radio.
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Workers Compensation Rates Drop
Average Decrease of 8.5 Percent Expected
In a bit of good news, North Dakota Workforce Safety & Insurance completed an annual premium rate review and indications for 2019-20 were for a statewide average rate decrease of 8.5%. The decrease recommendation came from WSI’s consulting actuaries and was approved by the WBI Board of Directors and Governor Doug Burgum.
WSI also announced oil-related rate class premiums for next year also showing decreases for all six oil-related rate classes.
The WSI Board of Directors also made a recommendation to issue a 50% premium dividend credit to policyholders. The credit will be applied against policyholders renewing during 2019-20 which are in good standing with the agency and are not minimum premium accounts. The credit will reflect 50% of the prior year’s premium less safety discounts, ensuring no account total is less than $250 after the dividend credit is applied. This recommendation is pending approval by the Governor.
For specific information on the rate decreases including details of the oil-related rate class premiums for next year, click
here.
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Housing Development Subsidy Program
Pilot Program to Begin in McKenzie County
One of the challenges facing all of western North Dakota is an inadequate supply of quality, affordable housing. Many industries report a workforce shortage attributable, in part, to the housing crunch.
McKenzie Country Job Authority recently announced what could be a partial solution in the form of a pilot program to incentivize the construction and sale of quality housing. Qualified developers could receive a development subsidy up to $50,000 per single-family home to be used to offset infrastructure costs.
Click
here for complete details about the program along with the application form, an agreement, and declaration of lien interest.
McKenzie County officials estimate the probable impact of the program could be the construction and sale of 20-to-30 stick-built single-family homes in McKenzie County in 2019-20.
Applications will be reviewed on a first-come, first-served basis and awards will be issued until the allotted funding opportunity for the program has been depleted. Total funds expended during the pilot stage of the program are set at $1 million.
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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 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.
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Quick Connect
- Bakken Midstream to announce first project by year end -- Tioga Tribune
- Ruso wind farm goes before PSC public hearing in Minot -- KFYR-TV
- Gov. Burgum names Fargo businesswoman new chief operating officer -- Bismarck Tribune
- North Dakota Supreme Court hears arguments on oil mineral royalty case -- KFYR-TV
- Selection for Ethics Commission finds early consensus, three front-runners -- Bismarck Tribune
- Oregon House proposes oil train fees to fund spill prevention and planning -- Associated Press
- ND to ask federal agency to intervene in oil-by-rail dispute with Washington -- Bismarck Tribune
- ND to loan $200,000 to company striving to be a petrochemical precursor -- Williston Herald
- Ward County Commission begins drafting its 2020 budget, outlook positive -- Minot Daily News
- North Dakota oil industry, state officials laud uniform safety orientation -- Bismarck Tribune
- Ray fractionation plant meets little resistance at public meeting last week -- Tioga Tribune
- Lightning blamed for fires and spills at two saltwater disposal sites -- Bismarck Tribune
- Williston API reaches $1M in donations with gift to Williston State College -- Williston Herald
- ND panel called for 5,000 megawatts of wind power by 2020, state falling short -- Fargo Forum
- Some lawmakers want special session after PSC rejects wind farm permit -- SayAnything Blog
- Electric vehicle tailgate party discusses tailpipe emissions and healthy air -- KXMB-TV
- Dan Donlin, former Bismarck police chief, named director of State Radio -- Bismarck Tribune
- Reclaiming a pipeline corridor subject of upcoming field day in Ray -- Williston Herald
- How to improve congestion and safety on Highway 83 still up in the air -- KFYR-TV
- ND crude capacity gets a relief with Liberty pipeline, but is it enough? -- Williston Herald
- “Keep It In The Ground” activists going all out to block federal leasing -- Energy in Depth
- Williams County to host adjacent counties for new human service zone -- Williston Herald
- Belfield School Board updated on bleachers, asbestos testing -- Dickinson Press
- Prison plan impacts counties as state women's prison system fills -- Bismarck Tribune
- Invasive weed called reed canary grass making its way into the state -- KXMB-TV
- Kelly Miller named publisher of the Williston Herald succeeding Ken Harty -- Williston Herald
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Factoid of the Week
When examining county-by-county oil production in the U.S., McKenzie County ranks as the largest single oil producing county in the nation at 17.3 million barrels/month. In second place is Lea County in New Mexico with 14.6 M barrels/month followed by Weld County in Colorado with 13.7 M barrels/month and Midland County in Texas with 12.5 M barrels/month (Jan. 2019 data)
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June 24
Bismarck
June 26
Bismarck
June 27
Bismarck
July 6
Williston
July 11 -12
Eagle Ridge Golf Course and The Links of ND
July 16-17
Bismarck
July 16
Bowman
July 17
New Town
July 18
Van Hook
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Oil prices and rig count
June 21, 2019
WTI Crude: $57.43
Brent Crude: $65.20
Natural Gas: $2.19
North Dakota Active Rigs: 64 (up 3)
6/21
/2018
-- 64 rigs
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Geoff Simon
Editor/Executive Director
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