January 3, 2020 -- Happy New Year!
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An early morning view of the North Dakota Capitol on New Year's Day 2020. The photo was taken from the north side of the building showing the brightly-lit legislative wing on the right.
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DAPL Expansion Awaits Action in 3 States
Post-Hearing Legal Briefs Filed in North Dakota
Energy Transfer Partners is awaiting approval from regulators in Illinois, Iowa and North Dakota on its plan to expand the capacity of its Dakota Access Pipeline (DAPL).
DAPL was completed in 2017 and has been transporting up to 570,000 barrels of crude oil per day to a terminal in Patoka, Illinois. In June of last year, Dakota Access LLC submitted its notice of intent in the four states the pipeline crosses that it intended to "optimize" the pipeline with additional pumping stations that would allow it to transport up to 1.1 million barrels per day.
Legal briefs were filed this week with the North Dakota Public Service Commission as a follow-up to a public hearing held November 13 in Emmons County. In its
brief Dakota Access renewed its argument that a 30,000 horsepower pumping station to be built west of Linton "will cause no significant detriment to the environment or the welfare of North Dakotans." The Standing Rock Sioux Tribe, which has opposed the project, argued in its
brief that the expansion will increase the likelihood and severity of a potential oil spill. The PSC is expected to conduct a working session on the DAPL application later this month and will likely render a decision in February.
The South Dakota Public Utilities Commission did not require ETP to obtain a new permit because its original application said the pipeline would be capable of transporting 570,000 barrels “or more” per day. The company has
received a conditional use permit from the Lincoln County Commission to build a pumping station near Harrisburg, which is a few miles south of Sioux Falls.
Despite the company's
objection, the Iowa Utilities Board has
required ETP to submit an amendment to the permit it received in 2016. Predictably, environmental groups and landowner activists seized on the opportunity to oppose the application based on many of the same arguments used to oppose the initial filing. The pipeline requires upgrades to three pumps at its pumping station near Cambridge, Iowa, as well as adding two more pumps to increase its capacity.
The Illinois Commerce Commission has schedued an evidentiary hearing February 10-11 in Chicago. The project in Illinois requires additional pump stations in Hancock County near the City of Carthage; adding two 6,000 HP pumps and replacing two existing pumps at its station near Vernon and Patoka, Illinois; and installing a new pumping station in Massac County near the village of Joppa. The DAPL application is actively opposed in Illinois by the Sierra Club and SOIL (Save Our Illinois Land).
Click
here for information about the Illinois docket. Click
here for information about the proceeding in Iowa. Click
here for a list of filings in the North Dakota case. Click
here to read or download the 470-page transcript of the North Dakota PSC's hearing in Linton.
In its application, Dakota Access indicated it intends for the optimization to be placed into commercial service by the third quarter of 2020, but no later than the first quarter of 2021.
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Labor Union Supports DAPL Expansion in Illinois
Citing job opportunities for workers and the safety benefits of modern pipelines, an international labor union submitted comments in support of the DAPL expansion project in Illinois.
The United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, which represents about 355,000 union plumbers, pipefitters, sprinkler fitters, service technicians, and welders, submitted its
comments to the Illinois Commerce Commission.
"The project provides important job opportunities for construction workers, including members of the UA and other unions," said David L. Barnett, Director of Pipeline and Gas Distribution." These are the exact type of skilled jobs – providing good wages, health coverage, retirement security, and training – that are badly needed today."
Barnett also touted the safety benefits of pipelines, noting derailments of oil trains in Illinois in 2015 and 2017 that spilled thousands of gallons of crude oil from ruptured rail cars.
"In contrast, pipelines are the safest, most efficient way to transport oil," Barnett said. "They were built recently with the most up-to-date materials and techniques ... with high-strength carbon steel with thicker walls in sensitive areas and road and water crossings and cathodic protection systems and fusion-bonded epoxy coating to prevent corrosion."
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Hearing Set for Denbury CO2 Pipeline Project
The ND Public Service Commission has scheduled a public hearing February 6 in Bowman on the application of Denbury Resources to construct a pipeline in Slope and Bowman Counties.
The hearing will begin at 9:00 a.m. Mountain Time at the Bowman
Lodge & Convention Center, 207 West Highway 12 in Bowman.
The application of Denbury Green Pipeline-Montana, L.L.C. seeks permission to build a 9.23 mile pipeline to transport carbon dioxide for an enhanced oil recovery project.
The 12-inch diameter welded steel pipeline would cover about 18 miles in total, beginning in Fallon County, Montana, about six miles southeast of Baker, MT. The pipeline would enter the state nearly due west of Marmarth in southwestern Slope County, and terminate about six miles south in Bowman County. The carbon dioxide will come from the Exxon Mobil Shute Creek Gas Plant in LaBarge, Wyoming, and the ConocoPhillips Lost Cabin Gas Plant in Lysite, Wyoming, and be transported to Denbury’s Bell Creek EOR Development in Powder River County, Montana. Denbury estimates the price tag for the North Dakota portion of the pipeline will be $9.2 million.
The project will provide for tertiary oil recovery from Denbury’s production wells through injection of CO2 into the oil reservoir which will result in increased extraction and utilization of crude oil resources. The PSC is to determine if 1) the project will produce minimal adverse effects on the environment and the welfare of ND citizens, 2) if the pipeline is compatible with environmental preservation and efficient use of resources, and 3) if its construction will ensure that energy needs are met in a timely fashion.
Click
here to read the meeting notice.
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Ness: Best is Yet to Come for ND Oil Industry
North Dakota went through a huge evolution the past decade with the development of the state's oil industry and the prosperity that came with it, but the president of the ND Petroleum Council says the best is yet to come for the state and its producers.
In an interview on the radio program
Energy Matters, Ron Ness said the influx of industry workers has made North Dakota one of the youngest states in the nation. He said the technology developed in the Bakken has produced tremendous benefits for the entire country.
Click
here to listen to Ness' comments.
Ness said the coming decade will be important in determining how the state will capture long-term value from the state's oil bounty. He said discussion about the use of earnings from the state's Legacy Fund, which receives 30 percent of all oil tax revenue, will be the most important conversation of the decade. Ness believes the revenue should create lasting value for generations of North Dakotans yet to come.
Click
here to listen to Ness' comments.
The next meeting of the interim Legacy Fund Earnings Committee will be held in oil country. Members are tentatively scheduled to meet February 19-20 in Watford City. Click
here and advance to the 2:00 mark to listen to the full
Energy Matters interview with Ness.
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Beulah Patrons to Vote on School Bond Issue
Voters in the Beulah Public School District will head to the polls next Tuesday, January 7, to decide the fate of a $6.9 million bond issue to fund school building construction and renovation.
Proceeds from the bond issue would be used to build an addition to Beulah High School, to renovate other portions of the building and make site improvements to school property.
The Beulah district encompasses parts of Mercer, Oliver and Dunn Counties. School officials have calculated that the bond issue would result in an increase of 15.42 mills, equal to $15.42 on each $1,000 of taxable valuation for the first taxable year.
Voters will go to the polls at Beulah High School and at City Hall in Golden Valley. Polls will be open from 9:00 a.m. to 7:00 p.m. Central. Click
here to see an informational video about the construction project.
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Interim Education Committees Meet Next Week
Two interim legislative committees charged with studying K-12 education policy issues are scheduled to meet next week at the Capitol in Bismarck.
The Education Policy Committee will meet Tuesday, January 7, beginning at 9:00 a.m. in the Roughrider Room. Its agenda includes a presentation and discussion of the teacher support system mentoring program, and if it would be compatible with a potential teacher incentive for leadership program. The committee will also hear a presentation regarding online masters level courses as they relate to the committee's study of dual-credit, advanced placement and distance education courses. Members will also hear presentations explaining how the state university system addresses student behavioral health issues when training potential new teachers, and a state Department of Emergency Services concept of a state-level school safety center. Click
here to see the committee agenda.
The interim Education Funding Formula Review Committee will meet the following day, January 8, beginning at 10:00 a.m. in the Roughrider Room. The committee's initial discussion will focus on school size weighting factors in the funding formula, and steps needed to bring schools receiving the minimum adjustment on to the formula at the current per pupil rate. Members will also hear a presentation from the ND Council of Educational Leaders regarding small, but necessary isolated school districts. The agenda also includes a presentation from the Tax Department regarding trends in property values and property taxes, and from DPI regarding the 60-mill local property tax contribution required by the state school aid formula and the financial impact of changing the 60-mill requirement. The meeting will conclude with discussion of a bill draft related to reimbursement for K-12 education transportation costs. Click
here to see the committee agenda.
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Fewer than 100 Traffic Deaths in 2019
Preliminary reports indicate that North Dakota had 98 motor vehicle fatalities in 2019 – a total that, if it goes unchanged, would be the first time in 17 years the state has recorded fewer than 100 traffic fatalities.
Since the Vision Zero traffic safety initiative was launched in 2018, fatalities in the state have dropped from 116 in 2017 to 105 in 2018 to the preliminary total of 98 last year. Gov. Doug Burgum thanked agencies involved in the Vision Zero project for making a difference and expanding their efforts during the past year.
“The only acceptable number of deaths on North Dakota roads is zero, and every year that we move closer to that goal represents important progress, because these aren’t just numbers – they’re people’s lives, and every life matters,” Burgum said.
This past year, Vision Zero was expanded with additional safety measures including more highway safety engineering systems, law enforcement equipment and programs; the establishment of highway safety corridors; crash data improvements and dashboards; and Vision Zero Schools, a new peer-to-peer program in high schools.
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Reclamation Conference Coming to Dickinson
Registration is now open for the 8th Annual ND Reclamation Conference scheduled for February 25-26 at the Ramada Grand Dakota Hotel and Conference Center in Dickinson. Participants can expect a robust discussion of the technologies and practices that can be used to move reclamation forward.
The opening night of the conference will feature a keynote address and a trade show mixer with more than 20 vendors. Click
here to view the conference website.
Dr. Thomas DeSutter will be the keynote speaker addressing current and potential remediation strategies for brine spills. Dr. DeSutter is an environmental soil scientist at North Dakota State University.
Click
here for conference information including participant registration and booth reservation and sponsorship opportunities. Click
here for a conference poster.
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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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A Look Back Three Years Ago Today
On January 3, 2017, the North Dakota Legislature convened for the 2017 legislative session. The state was in the midst of a recovery from the downturn in oil prices the previous two years, and opened the session of the heels of a momentous 2016 Election.
The state welcomed its new governor, Doug Burgum, who along with First Lady Kathryn Helgaas Burgum, greeted dignitaries and other guests in a receiving line in Memorial Hall at the Capitol. Among those in attendance was former Governor Ed Schafer. The brief conversation between the current and former governors was captured in this photo taken on that day.
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Quick Connect
- Tribune editorial: Decade brought growth, prestige for North Dakota -- Bismarck Tribune
- Montana closing two coal-fired plants; Colstrip 1 and 2 built in 1970s -- Associated Press
- ND politics sees growing Republican power, election upsets in 2010s -- Bismarck Tribune
- Burgum on population estimate, recognizes need for complete census count -- Minot Daily News
- Billings County ranch owners sue over proposed Little Missouri River bridge -- Bismarck Tribune
- Looking back at the 2010s: Howard Klug on city infrastructure projects -- Williston Herald
- Looking back at the 2010s: Brad Bekkedahl on XWA and the economy -- Williston Herald
- School building bond, is this the solution? -- Beulah Beacon
- Dickinson Public Schools to implement academic, behavioral intervention -- Dickinson Press
- Dickinson State University to renovate Pulver Hall for TR digital library -- Dickinson Press
- District 8 puts time limit, other restrictions on help with school expansion -- Williston Herald
- Applicants sought for North Dakota Board of Higher Education seat -- Bismarck Tribune
- Census still needs North Dakota workers, especially in rural areas -- Minot Daily News
- New chief public defender named for Divide, McKenzie, Williams counties -- Williston Herald
- Western North Dakota’s first virtual-reality arcade now open in Williston -- KFYR-TV
- U.S. shale producers to tap the brakes in 2020 after years of rapid growth -- Reuters
- The next 10 years in oil markets; factors likely similar to previous decade -- OilPrice.com
- Alaska North Slope development progressing in 2020 with new investments -- S&P Global
- Norway’s big bet on future of oil, Sverdrup field said to hold 2.7 billion bbl -- Financial Times
- Key energy milestone: U.S. petroleum exports exceed imports in September -- EIA
- Climate alarmists conveniently ignore energy independence milestone -- Inside Sources
- Subsidized wind, noncompetitive wind; efforts to make wind power competitive -- IER
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Factoid of the Week
The first school in the northern part of Dakota Territory opened in Bismarck in 1873. By
the 1951-52 school year, there were 2,697 rural school teachers in North Dakota, 20% of whom were not certified and 15% of whom had not attended college. Over the next 50 years, the state instituted higher standards for teachers and school districts, an important part of which was consolidation. By 2005 there were only eight remaining one-room schools in the state.
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January 7
Bismarck
January 7
Beulah and Golden Valley
January 8
Bismarck
January 15
Bismarck
January 15
Minot
January 15
Bismarck
January 21
Bismarck
January 21
Bismarck
January 29 - 31
Fargo
February 4
Bismarck
February 6
Bowman
February 19-20
Watford City
February 24 - 27
Bismarck
February 25 - 26
Dickinson
May 19 - 21
Bismarck
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Oil prices and rig count
January 3, 2020
WTI Crude: $63.05
Brent Crude: $68.60
Natural Gas: $2.13
North Dakota Active Rigs: 55 (down 1)
1/3/2019
-- 65 rigs
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Geoff Simon
Editor/Executive Director
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