February 22, 2019 -- Busy Dizzy Days!
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The days up to crossover and legislative recess this week were a dizzy whirlwind of activity as lawmakers worked to clear bills and move them to the other house.
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Prairie Dog Bill Whistles Through House
With an overwhelming 80-12 vote,
HB 1066, otherwise known as “Operation Prairie Dog,” was approved this week by the ND House of Representatives.
The bill, which provides oil tax revenue to Hub Cities and other oil-impacted communities, along with essential infrastructure funding to non-oil cities, counties and townships, was praised by its supporters as a benefit throughout the state.
Critics questioned the need for continuing Hub City funding in the cities of Dickinson, Minot and Williston. But Rep. Mike Lefor, R-Dickinson, reminded his colleagues that communities in the west support the oil industry that’s paying the taxes, so it’s the state’s obligation to support the communities.
Click
here to listen to Lefor’s comments.
Some House members questioned whether the state should pay for community infrastructure, and argued the spending bill was just a way for legislators to get re-elected. The bill’s prime sponsor, Rep. Mike Nathe, R-Bismarck, said the needs have been documented, and the state should do what it can to help.
Click
here to listen to Nathe’s comments.
Another House member who helped draft the bill, Rep. Todd Porter, R-Mandan, said there are restrictions and reporting requirements in the legislation to ensure the money is spent wisely.
Click
here to listen to Porter’s comments.
The bill was amended in committee to ensure the state’s needs are met before oil tax revenue flows to the city and county/township buckets. The Strategic Investment and Improvements Fund will get $400 million before the bulk of the infrastructure buckets receive any money.
Click
here for an article from the Bismarck Tribune on the passage of this legislation.
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ND House and Senate Okay Ethics Bills
Both houses of the North Dakota Legislature passed bills this week intended to implement an ethics measure approved by voters in November.
The Senate approved
SB 2148 on a 46-0 vote, while the House approved
HB 1521 by a vote of 81-9.
Rep. Jim Kasper, R-Fargo, chaired a special Ethics Committee appointed to review what is now
Article XIV. The committee met four times to hear testimony and refine the legislation. Complaints were raised about the bill during floor debate, which Kasper said was to be expected because passage of the measure produced so many unanswered questions.
Click
here to listen to Rep. Kasper’s comments.
Kasper said one of the problems HB 1521 attempts to address is language in the constitutional measure that requires establishment of a confidential whistleblower hotline to report ethical violations. He said the bill contains language to protect the rights of the accused.
Click
here to listen to Kasper’s comments.
Kasper said the House bill attempts to provide direction and legislative intent to a yet-to-be-appointed Ethics Commission established by the measure. The Senate version would leave most of the measure’s interpretation to the Ethics Commission and an interim legislative study committee.
The Senate bill is discussed in this
article from the Fargo Forum.
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ND Senate Okays Ballot Measure Reform
The North Dakota Senate voted 31-16 this week to approve a proposed constitutional amendment that would provide an additional step in the process of amending the state constitution.
HCR 4001 would require legislative approval of any constitutional measure approved by voters. If the legislature didn’t approve, the measure would be placed on the ballot a second time and would become effective if approved again.
Senator David Hogue, R-Minot, who introduced the resolution, was able to persuade fellow senators to support it despite a unanimous 7-0 do-not-pass recommendation from the legislative committee that reviewed it. In his floor remarks, Hogue pointed out that the three most recent attempts to amend the ND constitution were funded almost entirely by out-of-state money.
Click
here to listen to Hogue’s comments.
Hogue stressed that the resolution would apply only to constitutional amendments, not initiated laws. If the House approves the resolution, it would be placed on the statewide ballot in 2020.
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House Defeats School Sales Tax Option
Legislation that would give North Dakota school districts the option of using sales tax revenue to fund school construction projects was killed in the House of Representatives this week.
HB 1437, introduced by Rep. Pat Hatlestad, R-Williston, would have allowed schools to propose a city or countywide sales tax which, if approved by 60 percent of voters, could be used to pay debt associated with a school construction project.
Rep. Mark Owens, who chairs the House Education Committee, said using a sales tax to fund school construction would relieve the burden on property taxpayers.
Click
here to listen to Owens’ comments.
Rep. Denton Zubke, R-Watford City, said funding school projects with a sales tax would be fair because many people don’t pay property tax.
Click
here to listen to Zubke’s comments.
Despite the plea for property tax relief, the bill was defeated 58-30. North Dakota school districts were previously able to use a sales tax, but the power was taken away by the 2007 Legislature.
Click
here to view floor debate of the bill.
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Effort to Restrict Quick Take Defeated
A bill that would have required a negotiation process before the state or a political subdivision used quick take eminent domain to acquire private property was defeated by the North Dakota House this week.
HB 1184 would have required a 60-day informal negotiation process, and if that failed would require a formal 30-day process before exercising quick take. Despite a do-pass recommendation from the House Judiciary Committee, the bill was defeated on 64-26 vote by the full House.
Rep. Denton Zubke, R-Watford City, opposed the bill. Zubke said the measure would add at least 90 days to the condemnation process, which defeats the purpose of quick take.
Click
here to listen to Zubke’s comments.
Click
here to view or download a NDDOT report with photos of bypass work on Highway 85.
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SIRN 2020 Communications Bill Advances
Legislation paying for the state’s portion of a statewide interoperable radio network (SIRN 2020) for North Dakota first responders was approved by the House this week.
HB 1435, introduced by Rep. Glenn Bosch, R-Bismarck, passed on an 85-5 vote. The legislation would provide a $120 million line of credit with the Bank of North Dakota to allow the Information Technology Department to begin implementation of the multi-year project. ITD, in cooperation with the Statewide Interoperable Executive Committee of which Bosch is a member, recently awarded a $207 million contract for the work to Motorola Solutions, Inc. The balance of the funding would be the responsibility of units of local government.
During floor discussion of the bill, Bosch said its history goes back to 2009. He said a report compiled to assess the status of the existing network documented the aging communications infrastructure, and that recent failures of the network demonstrate the legislature needs to act on improvements now.
Click
here to listen to Bosch’s comments.
Click
here for additional details about the SIRN 2020 project.
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Senate Passes Tribal Oil Tax Bill
A new plan for sharing tax revenue from oil produced on the Fort Berthold Reservation passed the Senate this week on a 40-5 vote and is now headed to the House where leaders have already voiced support for the bill.
SB 2312 would change the current 50-50 tax split between the state and the Three Affiliated Tribes so that 80 percent of the tax from new wells on trust lands would go to the tribe and 20 percent would go to the state. The shares would be the opposite on fee land, with 80 percent going to the state and 20 percent to the tribe. The primar sponsor of the legislation is Senator Jordan Kannianen, R-Stanley.
“For a few years we have had uncertainty in the tax environment within Fort Berthold, an area that produces roughly 20 percent of production in the Bakken,” Kannianen said in his Senate floor explanation. “With this uncertainty the industry isn’t developing the area that it otherwise could be.”
Click
here for to hear more of Sen. Kannianen’s comments.
The bill was the product of extensive discussions among state, legislative and tribal leaders, industry representatives and the state tax department. If the legislation is ultimately approved, it would still have to be formalized in a new compact between the state and tribe.
Click
here for an article from the Bismarck Tribune on the Senate passage of the bill.
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Overwhelming House Vote Kills Time Change
The House floor session on
HB 1486, a bill to put the entire state under Central Standard Time, got just a bit heated at times as legislators on opposite ends of the state debated the merits of such a change. In the end, however, the Nays prevailed killing the proposed change with a vote of 11 to 81.
If the idea sounds familiar, it should. The 2017 Legislature defeated a similar bill which would have moved the state to central time plus exempted North Dakota from daylight savings time.
Rep. Mike Lefor, R-Dickinson, was a strong opponent of the bill describing it as “a source of biannual frustration for those of us in southwestern North Dakota.” In addition, he said the decision is not one the legislature should be making.
Click
here and
here for comments from Rep. Lefor.
This
article in the Fargo Forum discussed the defeat of the measure.
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For Those Who Can't Get Enough Legislative News
Readers of this newsletter are reminded that WDEA also produces a weekly report of action occurring at the North Dakota Capitol during the legislative session. Reports are typically published on Saturday, but with early adjournment for crossover, this week's edition is available now.
Click
here to read the Feb. 22 report of activities from Week 8.
Click
here to view the archive of 2019 Legislative Reports.
Click
here to see a list of next week's committee hearings on bills of interest to WDEA members.
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ND Ranked #2 Economy in U.S. in 2019
Not only did North Dakota grab the No. 2 spot for healthiest economy in the U.S. for 2019, the state achieved the single greatest improvement in economic performance of all 50 states over the last 10-year period leaping from the 17th position in 2009 to second in 2019.
The nationwide study was published by the Ohio Alliance for Innovation in Population Health using information compiled by the Appalachian Regional Commission. The rankings are determined by unemployment rate, per capita market income and poverty rate averaged over three years and compared to national averages.
According to the study, New Hampshire claimed the number one spot for healthiest economy followed by North Dakota. Hawaii was third, Nebraska fourth, and Minnesota was fifth.
Click
here for more information about this study.
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Health and Happiness in Watford City
New Video Highlights Healthcare System
Healthcare in Watford City has expanded to fill the needs of the growing community and it’s having a positive impact.
The community’s state-of-the-art healthcare system, along with a new $76.3 million hospital, is featured in the latest installment of
Voices of Watford City, a video produced by the McKenzie County Job Development Authority.
“I think the first thing that brought me back to McKenzie County is the support and encouragement that I received from the staff here at McKenzie County Healthcare Systems,” said Jessica Heggen, a nurse practitioner. She was one of several healthcare employees featured in the video.
“We have providers that are providing service here that come from the more urban communities and we talk how about the equipment we have here is on par with what they had in cities of several hundred thousand people,” said Daniel Kelly, the CEO of McKenzie County Healthcare Systems.
“This is a great community to move to. We have excellent schools. We have brand new facilities for our schools and we have excellent recreational activities both indoor and outdoor. And now we have a good healthcare system and a brand-new facility," Kelly said.
The new healthcare facility held a grand opening on June 22, 2018. To see the video, click
here.
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EnergyNDDay Fast Approaching!
Take the bus from Dickinson to Bismarck
Each legislative session, North Dakota's oil and gas industry hosts a day at the Capitol to demonstrate broad support and to inform legislators about the issues and activities facing this important segment of the state’s economy.
EnergyNDDay is scheduled for
Tuesday, March 5, at the Capitol. The morning session will 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.
Anyone in the Dickinson 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.
Click
here to register and to see the complete agenda for ENERGYNDDAY.
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Keynote Speakers Named
With a sharp focus on the future, the Lignite Energy Council has announced keynote speakers for its upcoming annual meeting who are recognized experts in advanced coal technology programs.
Brian Davey, chief executive officer of Brown Coal Innovation Australia, and Janet Gellici, CEO of the National Coal Council, are set for the meeting scheduled April 24-25 at the Bismarck Event Center.
Brown Coal Innovation Australia has many similarities to the Lignite Energy Council with both organizations focused on advanced generation technology development and studies to increase the beneficial attributes of coal in areas outside of electric generation. Australia is the only place in the world with larger known reserves of lignite than North Dakota.
Gellici’s presentation will be about securing coal’s future and will include recommendations in support of coal’s vital role in the U.S. generation fleet. She will give an overview of recommendations from the National Coal Council to Energy Secretary Rick Perry on optimizing the existing coal fleet and advancing new markets for coal.
For more information or to register, click
here.
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ND Reclamation Conference Coming Up
It will be here before you know it! The 7th Annual North Dakota Reclamation Conference "Reflecting on Reclamation" is scheduled for Dickinson February 25-26.
Information and registration can be found
here.
Please register through a web browser other than Internet Explorer. For additional information about the conference, contact
Brenda Schladweiler or
Toby Stroh.
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MBI Energy Talks Workforce Issues
In this week’s
Energy Matters radio show, Pat Bertagnolli, vice president of human resources for MBI Energy Services, talked about what his company is doing to attract and retain qualified workers in the face of workforce challenges in North Dakota.
It’s clear from what Bertagnolli said, they are taking the long view to solve the problem working with area business and economic development groups along with high schools and colleges in the area.
Click
here for Bertagnolli's comments about how the company works with what he calls “community business partners.”
In an example of MBI Energy’s long-term view of the issue, he discussed what he called their “skills initiative” where his company and others work with area high schools. Click
here for more comments.
MBI Energy Services is celebrating the 40th anniversary of its North Dakota operations and Bertagnolli says they are definitely in a growth mode in all their locations.
Click
here for and advance to the 43:00 mark to listen to the entire
Energy Matters interview.
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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
Click
here for the draft agenda. Click
here to register.
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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
- Lawmakers ready for bevy of budgets and bills after break -- Fargo Forum
- Session Half Way Point: A Look at the Successes and Failures -- KXMB-TV
- What you need to know: Proposal for District 1 to dissolve into District 8 -- Williston Herald
- From the Williston Mayor: Even in winter, significant progress is happening -- Williston Herald
- Farm Rescue and Busch Beer partner on initiative to support farmers -- Dickinson Press
- One Basin – One Way to streamline worker safety orientation in oil and gas -- KFYR-TV
- Amended trespass bill calls for implementing a public statewide database -- Minot Daily News
- ND bill would address mandatory behavioral health training in schools -- Fargo Forum
- ND Senate approves bill to deter tampering with pipelines, energy facilities -- Bismarck Tribune
- Bill allowing 'armed first responders' in ND schools moves to House floor -- Fargo Forum
- Even at peak, Bakken crime was about the same as the surrounding region -- SayAnything Blog
- Bowman Shopko to close, residents plan petition drive to keep it open -- Bowman Extra
- Burgum's presidential library left idle as lawmakers eye revenue forecast -- Bismarck Tribune
- Did the Bakken Shale Boom really turn North Dakota into the Wild West? -- Inside Sources
- 5 themes in supply and demand to watch in 2019 global natural gas marketplace -- Oil Price
- Economists skeptical that Green New Deal would be much of a good deal -- Inside Sources
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Factoid of the Week
The 1953 North Dakota Legislature enacted
Senate Bill 41
which imposed a 4¼ percent tax on oil and gas, “in lieu of all ad valorem taxes upon the property from which the oil or gas is produced.”
A
legislative memo
noted that part of the revenue should go to the state of North Dakota, but it is “equally obvious that part of the tax should go to the county and to the local subdivisions.”
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February 25-26
Dickinson
February 25 - Fargo; February 27 - Williston
February 26 - Bismarck; February 28 - Minot
February 28
Bismarck
March 5
Capitol
March 7
Stanley
March 14
Fargo
March 27
Watford City
April 3 - 4
Bismarck
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
February 22, 2019
WTI Crude: $57.26
Brent Crude: $67.12
Natural Gas: $2.72
North Dakota Active Rigs: 66 (up 2)
2/22
/2018
-- 56 rigs
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Geoff Simon
Editor/Executive Director
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