January 10, 2020 -- Winter Sunset
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The glorious colors of a winter sunset over Watford City are captured in this photo
taken from the parking lot of the new McKenzie County Public Works facility.
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Property Taxes Key to Solving
Education Funding Debate
Establishing the appropriate level of property taxes in rapidly-growing school districts will be one of the key components in ensuring equity in the state's education funding formula.
State lawmakers on the Education Funding Formula Review Committee discussed nearly a dozen different components of the formula at a meeting this week at the Capitol. Among them was a requirement in state law that school districts levy 60 mills to support local education. It's intended to ensure all districts are making a "local effort" to fund education, but as committee members learned at their last meeting (see
Oct. 4 newsletter), there is wide variation in the
value of a mill.
Another state law that limits property tax increases to 12 percent has created a problem in western North Dakota districts that experienced huge increases in property values the past decade. For example in the McKenzie County School District, the district's local level was down to 34.77 mills last year, but because property values have increased, that levy still contributed 19 percent of the district's total school revenue. By contrast in West Fargo, another rapidly growing district, its 58.29 mills generated just 17 percent of the district's total revenue.
Despite such disparities, state law requires all districts to move toward 60 mills and provides that those that don't reach that level will see a reduction in funds the district receives through the funding formula.
McKenzie County Superintendent Steve Holen, who serves as an ex-officio member of the committee, said requiring his district and others to increases taxes to get to the 60-mill level will create a funding inequity for those districts.
"If you now go to 60-mills across-the-board where everybody has to pay equal, the shift is going to be to the other end because your markets have gone up more than other areas," Holen said. "If you're going to be compared to another district that's at 60 mills, your taxes actually went up more and you've created another inequity."
Holen said he would like a solution that doesn't require districts to impose a large tax increase on local residents who've already seen their taxes go up because their property value has gone up.
"If we go to 60 (mills), has it gone too far? Is it over-balanced now because not only have you had fixed income residents go up twice as much in the taxable value of their home as other areas of the state, now you're going to tax them at the same level?" Holen said. "Is there a middle ground that would account for the fact that you're living in an area where valuations have gone up for one very basic reason?"
The funding committee is chaired by Senator Don Schaible, R-Mott, who indicated the panel would meet at least three more times during the 2019-20 interim.
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Company Plans Williams County Gas Plant
Denver-based Outrigger Energy II announced this week plans to construct a 250 million cubic feet/day natural gas processing plant west of Williston in Williams County.
The plan includes a long-term gas gathering and processing agreement with XTO Energy, Inc. to service XTO’s Williams County production. The gathering system will include a 70-mile, 20- and 24-inch diameter, rich gas pipeline originating in eastern Williams County and terminating at the plant west of Williston. Plans are also under consideration for expanding the proposed processing plant with an additional capacity of 200 MMcfd, for total gas processing capacity of 450 MMcfd.
Outrigger will construct, own and operate the cryogenic processing plant and gathering system, which will include ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets.
Outrigger is a privately-owned, full service midstream company specializing in greenfield project development with a current focus on liquids-rich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming and the Williston Basin. In its announcement, Outrigger CEO Dave Keanini said positioning of the company's gathering line will provide other Williston Basin operators access to processing capacity.
"This additional midstream capacity for gas production north of the Missouri River allows the state of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin," Keanini said. "Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”
Click
here for additional details from Renée Jean in the Williston Herald.
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Trump Proposes Much Needed NEPA Reform
Gov. Burgum Applauds Streamlining Regulations
Gov. Doug Burgum applauded a proposal announced by the Trump Administration this week to modernize the National Environmental Policy Act (NEPA) process to streamline permitting of infrastructure projects.
The proposal by the Council on Environmental Quality (CEQ) follows an executive order issued by President Trump in 2017 establishing a two-year goal for completing environmental reviews for major infrastructure projects and directing the CEQ to consider revisions to modernize the regulations that federal agencies use to implement NEPA.
“No one cares more about North Dakota’s environment than the people who live here, but the 40-year-old NEPA process has become increasingly complex, cumbersome and time-consuming, resulting in unnecessary, multi-year delays and cost increases for key infrastructure projects including highways, pipelines and critical flood protection,” Burgum said.
Since it was signed into law in 1970, NEPA has required federal agencies to assess the environmental impacts of their actions before making decisions. Actions covered by NEPA includes permits, land management and construction of highways and other public facilities. The NEPA process provides opportunities for public review and comment, which typically leads to years of bureaucratic delay.
Click
here to read more state and local reaction in the Williston Herald.
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Beulah Voters Approve School Bond Issue
Patrons of the Beulah School District voted this week to approve a $6.9 million bond issue to fund an addition and renovation work on the district's high school.
Results from Tuesday's election showed that about 71% of voters approved the project. Portions of the high school have become dilapidated, and there are problems with plumbing and poor insulation. The work will include demolition of a portion of an addition built in 1963, to be replaced by new construction.
The positive result was a sharp turnaround from a December 2018 vote in which voters by a 3-to-1 margin rejected a $17.5 million bond to refurbish the high school. This district conducted a community survey after the failed vote, which found that 94% of voters felt the previous project was too expensive.
Passage of the bond issue will result in a $69.39 increase in residential property taxes per $100,000 of taxable valuation, which could be slightly lower if the district is able to obtain a low interest loan through the Bank of North Dakota. The maximum cost of the project is $10.1 million, which will include money from the district's building fund.
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Energy Generation Conference Set for Bismarck
The 41st Annual Energy Generation Conference organized by regional coal and utility interests will be held January 28-30 at the Bismarck Event Center.
The event was first held in 1978 as a Power Plant Operations Conference that included the displays of just six vendors. But the event has grown over the years to a show with more than 300 exhibitors and around 2,500 attendees.
This year's planning committee chair Kelly Cozby said Tuesday’s opening day includes an open house for the public between 4:30 and 6:00 pm. Presentations during the event are usually technical in nature, but Cozby said there’s always something new for attendees.
Click
here to listen to Cozby's comments.
Click
here to see the conference agenda. Click
here to register. Click
here for the conference registration brochure which contains additional details about speakers and the agenda.
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Beams Arrive for Long X Bridge
Huge pre-stressed concrete beams that will become part of the new Long X Bridge arrived at the site south of Watford City this week.
The bridge on Highway 85 crosses the Little Missouri River. The ND Department of Transportation awarded a nearly $34 million contract earlier this year to Ames Construction to build the new bridge and dismantle the old one (see
June 7, 2019 newsletter). The company is based in Burnsville, Minnesota.
The first span of beams were set this week for the new bridge. The 156-foot long pre-stressed concrete beams were designed by Dale Schwindt, engineer for Forterra Inc., and produced at the company's Menoken plant (Dale also supplied the photo).
Highway 85 is a major north-south feeder route for moving equipment and products into and out of North Dakota's oil patch. The new bridge, which is being built east of the existing structure, will be about 800 feet long and 80 feet wide. The bridge will have four 12-foot driving lanes, 12-foot emergency/breakdown lanes on either side, as well as a six-foot lane down the center. The bridge is expected to be open by the end of next fall's construction season, after which demolition of the old structure will begin. That's due for completion by July 2021.
Click
here to see NDLTAP's Facebook post about the arrival of the beams.
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Hwy 85: More Heavy Trucks than I-94 or I-29
Below are Highway 85 traffic counts reported by the North Dakota Highway Patrol. The numbers show the two-lane highway carries more oversize truck traffic than either of the interstate highways in the state.
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Roundtable Presentations On-Line
The Western Dakota Energy Association and the Upper Great Plains Transportation Institute/NDLTAP co-hosted a western North Dakota roads roundtable December 18 in Watford City to bring together county road managers and oilfield trucking interests to discuss common issues and concerns.
With support from the NDDOT, the Federal Highway Administration and the Minot Air Force Base, more than 120 transportation users, owners and industry leaders attended.
Links to all the presentations are now available on the UGPTI
website, or click any of the links below.
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Write it Down on Your Calendar!
WDEA 2020 Annual Meeting
Get this date on your calendar! The Annual Meeting of the Western Dakota Energy Association will be held:
October 7-8, 2020
The Grand Williston Hotel & Conference Center
Williston, ND
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It's Nearly Go-Time for the 2020 Census!
Getting a complete population count in western North Dakota is crucial to obtaining additional representation in the state legislature, determining the distribution of federal dollars for road projects, community planning and more.
Ensuring the oilfield community completes the Census is an essential part of getting a complete count. Those working in North Dakota should understand it doesn't matter what your driver's license says for purposes of completing the Census. It's where you live and sleep most of the time that matters.
Individuals or companies that would like to be engaged with Census outreach efforts at a local level, or just want to learn more, are urged to contact the local Complete Count Committee.
Those who live elsewhere can search for their local committee
here.
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Complete Count Committee to hold Workshop at BSC
North Dakota's Complete Count Committee has scheduled a workshop to be held at the Bismarck State College National Energy Center of Excellence on February 3 for Census volunteers and anyone who wants to know more about the impact the decennial event has on the state of North Dakota.
Registration opens at 9:00 a.m. for the event which is scheduled to run from 10:00 - 3:00. Lunch will be included. Attendees can expect to hear:
- Remarks from the Governor's Office and Commissioner Michelle Kommer
- Introductions from the North Dakota State Task Force and US Federal Census
- Breakout sessions by geographic region for formed and newly formed CCC's
- Media panel with updates and materials for your complete count committees
- Networking breaks to connect with others in your same position
Click
here to see the agenda. Click
here to register to get free tickets.
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Engaging the Workforce
GNDC Hosts CEO Roundtable
The Greater North Dakota Chamber is hosting its first 2020 CEO Roundtable on Wednesday, January 15, at the Hess Corporation office in Minot. Held four times a year, the CEO Roundtable brings CEOs, presidents and company owners together for an exchange of information, ideas and insights.
The theme of this roundtable, Engaging Workforce, impacts all companies no matter their size, industry or location. This event will feature MBI Energy Services VP of Human Resources Patrick Bertagnolli along with Katie Ralston, the manager of workforce projects and programs at the ND Department of Commerce. Organizational Development Specialist from Gate City Bank, Heather Ostrowski, will be presenting with a panel of representatives from Generation Z.
The event runs from 10:00 a.m. to 3:00 p.m. and is open to CEO/C-Suite leadership as well as company owners, managers, supervisors, and other company leaders to come together to exchange information, spark ideas, and network.
Click
here to see the full agenda and registration information.
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REGISTRATION NOW OPEN
Williston Basin Petroleum Conference
After a long, cold winter it will be nice to see springtime and the 2020 Williston Basin Petroleum Conference scheduled for Bismarck. Along with green grass and spring temperatures, expect to see another excellent line-up of speakers plus a sold-out trade show.
The new conference
website features opportunities to enhance the participant experience and increase exposure. Registration is now open for the event scheduled for May 19-21. Click
here to register.
The website also features new information and features for exhibitors including an interactive map to allow vendors to select specific booths. Space will fill quickly so conference organizers suggest making plans now.
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Energy Impact Grants Available
The Board of University and School Lands is accepting applications for grants available to oil and gas development-impacted political subdivisions including cities, counties, school districts, and other taxing districts.
The grants are targeted to offset costs incurred for an emergency or unanticipated incident where the damage is directly related to, or impacted by, current oil and gas development. An advisory committee will review the eligible applications and make recommendations to the Land Board, which will make the final decision to award the grants.
The Energy Infrastructure and Impact Office will accept applications from eligible political subdivisions through 5:00 p.m. CST on January 31. Late applications will not be considered.
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Quick Connect
- Reflecting on decade of building and change with oil growth -- Tioga Tribune
- Meridian Energy refinery planned near Belfield hurt by funding, lawsuits -- Bismarck Tribune
- California rep introduces crude-by-rail safety bill, similar to state of Washington -- The Reporter
- North Dakota oil and agriculture could soon see benefits from the USMCA -- KFYR-TV
- Gavel goes to new chief justice Jon Jensen from retiring Gerald VandeWalle-- Bismarck Tribune
- North Dakota Democrats, Republicans set nominating conventions for March -- KXMB-TV
- ND Libertarian Party's ballot status restored with successful petition -- Bismarck Tribune
- TrainND boosts its well control training program; custom training for Bakken -- Williston Herald
- Parshall High School gets new building, started moving before Christmas -- KFYR-TV
- New Town Middle School expecting more students, planning to expand building -- KX News
- Dickinson State University to discuss leasing property to local business -- Dickinson Press
- Dickinson High School working on plan to address discipline problem -- Dickinson Press
- Current flood threat eases on Missouri, steady downward trend noticed -- Bismarck Tribune
- U.S. Army Corps anticipates high runoff season for Missouri River -- Minot Daily News
- U.S. Army Corps trying to make more space for Missouri River runoff -- Associated Press
- ND Department of Human Services offers heating assistance program -- KFYR-TV
- Bond refinancing puts focus on Ward County sales tax extension -- Minot Daily News
- Trio of new surveys offer both good news and bad news for North Dakota -- KXMB-TV
- Oil rally fizzles amid lack of supply threat in ongoing Middle East tensions -- S&P Global
- State of American Energy 2020: America embraces global energy leadership -- Energy in Depth
- Cyber attack issue heating up for utilities, huge consequences possible -- Inside Sources
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Factoid of the Week
Statistics from the winter storm that passed through North Dakota December 28 include more than just inches of snow. NDDOT mobilized 182 plow trucks, 17 tractors/blowers/graders plus 257 NDDOT team members worked during the weekend storm. NDDOT spread 685 tons of salt and sand and 26,400 gallons of brine on roads. The Highway Patrol issued more than 50 citations to motorists for driving around “road closed” signs.
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January 15
Bismarck
January 15
Minot
January 15
Bismarck
January 21
Bismarck
January 21
Bismarck
January 29 - 31
Fargo
February 3
Bismarck
February 4
Bismarck
February 6
Bowman
February 8
Williston
February 13
Bismarck
February 18
Bismarck
February 19-20
Watford City
February 24-27
Bismarck
February 25-26
Dickinson
March 19-21
Minot
March 27-29
Bismarck
May 19-21
Bismarck
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Oil prices and rig count
January 10, 2020
WTI Crude: $59.04
Brent Crude: $64.98
Natural Gas: $2.20
North Dakota Active Rigs: 55 (unchg)
1/10/2019
-- 66 rigs
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Geoff Simon
Editor/Executive Director
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