June 26, 2020 -- Capitol Construction Zone
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Construction is well underway on a project to enclose and remodel the south entrance of the North Dakota Capitol and provide handicap parking closer to the building. (See story below)
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Association of Coal Conversion Counties
Discusses Mercer Co. Wind Moratorium
Most Seeking Hearing Live Outside the County
The
board of directors of the North Dakota Association of Coal Conversion Counties met yesterday to discuss next week's hearing on a two-year moratorium on new wind farm applications approved by the Mercer County Commission.
Mercer County State's Attorney Jessica Binder said the county has received identical petitions from about 55 landowners seeking a hearing on the moratorium. She said the hearing has been scheduled next Wednesday, July 1, at 1:30 p.m. in the county courthouse in Stanton.
The county imposed the moratorium in response to plans by Alberta-based Capitol Power to develop the Garrison Butte wind farm north of Hazen near the shore of Lake Sakakawea. On its
website, the company indicates it has 100% of long-term land leases executed for the 151.8 megawatt wind farm, which would be spread over a 22,000 acre site.
Commission Chairman Marv Schwehr told the CCC board that he received a lot of calls about the proposed wind farm, about 80 percent of which were opposed to the project. Schwehr said he wanted to know more about the county's permitting process, so asked Binder to draw up the moratorium.
Click
here to listen to Schwehr's comments.
Schwehr said he plans to conduct the hearing much like a legislative meeting, first allowing those who are opposed to the moratorium to state their concerns, followed by county residents and others who support the commission's decision to put a temporary halt to wind farm applications.
Schwehr said he's started doing research to learn more about wind farm siting, looking over the process on the Public Service Commission website, and visiting with the state Agriculture Department about the wind farm reclamation process. Schwehr said he also toured Capitol Power's 99-MW
New Frontier wind farm, located in McHenry County. He said Mercer County has also formed a renewable energy ordinance committee that is looking into siting, setback requirements, reclamation and the rights of landowners.
The CCC board also heard from McLean County State's Attorney Ladd Erickson, who's been conducting his own research related to the announcement by Great River Energy that it plans to shut down Coal Creek Station, an 1,100-MW plant located between Underwood and Washburn. Erickson said he expects it will become increasingly difficult to site wind farms in North Dakota due to the lack of transmission capacity and growing public resistance to wind turbines and associated power lines.
More than half of the landowners who submitted a letter requesting a hearing on the moratorium list their primary residence outside Mercer County, including 17 who provided an out-of-state address on their letter. Click
here to see an example of the petition letter. Click
here to see a list of the names and hometowns of those who have submitted a letter.
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State Tax Revenue Picture Turning Around
Down in April and May, But Signs of a Rebound
State legislators received a mixture of good news and bad news this week during a discussion of the state's incoming tax revenue. The bad news is revenue was way down in April and May, but the good news is most business activity appears to be returning to near normal.
Members of the legislature's interim Government Finance Committee heard a
report from OMB Director Joe Morrissette on the status of the state's general fund. Morrissette said recent sales tax collections have been far below the state's forecast, but he told lawmakers he believes the worst economic impacts of the pandemic may be behind us.
Click
here to listen to Morrissette's comments.
Morrissette said oil tax revenue numbers have fallen significantly since the start of the oil price war and the ensuing drop in demand related to the pandemic. He said oil tax collections had been averaging about $200 million per month prior to the downturn, but fell to about $95 million in the month of April, and to only about $30 million for the month of May. But Morrissette noted that crude oil prices have rebounded to near $40/barrel on the WTI index, and North Dakota producers have responded by re-starting wells that had been shut in.
Legislators also heard a
report oil and gas tax revenue collections from Chris Kadrmas with Legislative Council. Kadrmas said although April production averaged 1.2 million barrels per day, the average price realized by North Dakota producers was just $12.93 per barrel. The price reflects the average of Flint Hills Resources posted prices, and the WTI price.
The bottom line in the state general fund is surprisingly still positive. Morrissette said because the state had been well ahead of forecast prior to the economic downturn, state tax collections through the end of April are still about $45 million, or 2% above the budget forecast.
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State Approves Additional COVID-19 Relief Dollars
The ND Legislature’s Budget Section formally approved a spending plan yesterday for an additional $406 million in federal coronavirus relief.
The list of spending requests was previously given the blessing of the state Emergency Commission at a meeting last week. The money comes from the federal CARES Act - the Coronavirus Aid, Relief, and Economic Security Act.
Included on the list is $33.2 million to the Industrial Commission Oil & Gas Division to fund an orphaned oil well reclamation program. A separate $33.2 million was previously approved for an abandoned well plugging program. It is estimated the reclamation program will generate 300-550 oil and gas service sector jobs for six months.
Nearly $113 million will be used to provide economic support for businesses, including $69 million for the new North Dakota Economic Resiliency Grant Program. The program will provide grants of up to $50,000 per business for investments in protective equipment, supplies and other improvements to reduce contact and attract customers and employees, promoting a safe return to the marketplace and improving consumer confidence.
The Budget Section also approved $2.1 million in funding to support the Department of Human Services’ COVID Emergency Rent Bridge program, which provides temporary rental assistance to eligible renters who are experiencing a loss of household income due to COVID-19. The state Department of Health also was authorized to receive $17.7 million from the U.S. Centers for Disease Control and Prevention to support epidemiology and lab functions to help contain and mitigate the spread of COVID-19.
The largest chunk of the money, $200 million, will support the state unemployment insurance fund to help pay the thousands of unemployment claims related to the pandemic.
Click
here to see the Budget Section agenda, which includes a list of the spending items approved. Click
here to see a slide presentation with additional details about items on the list.
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Eastern Folks Learn About the West
Student Ambassadors Recruit Workforce
Industry Recovery Expected to Take Time
More than 40 business owners and managers from eastern North Dakota heard a series of presentations from Watford City community leaders this week, describing the city's accomplishments the past 10 years as well as the challenges that lie ahead.
The 90-minute online session was organized by the Grand Forks Chamber of Commerce, offering a virtual follow-up to an in-person tour that chamber members took years ago to explore mutually-beneficial business opportunities between east and west.
Pat Bertagnolli, Rough Rider Center & Community Enhancement Director, described the shock he experienced upon arriving in Watford City in 2011. Bertagnolli said traffic was constant, there was no lodging of any kind, stores were sold out of bread and milk, and cell phone coverage was lousy. But he said the community persevered and eventually a bypass was constructed, grocery and other retail stores came to town, a new hospital and day care were built, and the Rough Rider Center and many other community enhancements were developed.
Bertagnolli said a big challenge moving forward will be recruiting workforce for the oil industry and all the other employers who help support it. One idea he hit upon was talking to high school students who moved to Watford City from other states, who he said without exception were not happy to learn their parents were moving to North Dakota.
Click
here to listen to Bertagnolli's comments.
Bertagnolli said it was obvious from the students' experience and their positive attitude about the community that they could be a valuable tool to help recruit workers to the area, and many of them agreed to reach out to prospective students whose parents were considering relocation.
Click
here to listen to Bertagnolli's comments.
Bertagnolli said the Ambassadors program has been successful in not only recruiting would-be workers and their families, but the students have also engaged with companies and their employees in the area to explain the many positive attributes of the Watford City community.
Watford City Senator Dale Patten described the impact the downturn in oil prices has had on the industry and its workers. He said for some time oil companies have been struggling to attract investment capital, so have been largely operating on cash flow from ongoing production. But Patten, who is a retired banker, said with lower oil prices and a drop in crude oil production, that strategy may not work well to get the industry re-started.
Click
here to listen to Patten's comments.
Patten also described Watford City's skills initiative, with schools, community and industry working together to deliver training programs in high demand occupations.
Participants in the inter-active online session also heard from McKenzie County Superintendent Steve Holen and businessman Joel Brown, co-founder of Mineral Tracker. Additional sessions are scheduled July 28 and August 26. Interested individuals can register for the free sessions by sending an email to the Grand Forks Chamber at
info@gochamber.org.
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Capitol Renovations Ahead of Schedule
Legislative Committee Rooms Are Not ADA Compliant
"Ahead of schedule and under budget." That's the status of renovation work on the south side of the North Dakota Capitol, according to Facilities Manager John Boyle.
In a presentation this week to the interim Legislative Procedure and Arrangements Committee, Boyle said bids on the newly-designed entrance came in "a couple thousand dollars under the engineer's estimate." The new design will remove the existing tunnel and driving lanes under the Capitol stairs, enclosing the area to create a lobby for visitors entering the building. Boyle told committee members the work is ahead of schedule.
Click
here to listen to Boyle's comments.
Work is also planned inside the building to bring the facility into compliance with the Americans with Disabilities Act. The legislature received an
ADA Accessibility Assessment report in January that identified numerous deficiencies throughout the building. Boyle said one of the more significant issues is that the entrances to committee rooms are too narrow.
Click
here to listen to Boyle's comments.
Boyle said committee rooms should also be equipped with assistive listening devices for those who have vision or hearing impairments. Bathroom facilities in the Capitol will also require improvements to comply with ADA standards. One other plan in the works would provide touchless sinks and hand sanitizing stations, which have gained importance in light of the ongoing coronavirus pandemic.
Click
here to see plans and conceptual drawings for the redesigned Capitol South Entrance. Click
here for a story from Prairie Public Radio about the ADA compliance effort.
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State Drought Conditions Worsen
Bismarck Seeing Driest Year on Record
Following another week with little to no rainfall in central and western North Dakota, more than half of the state is in the moderate drought category, and portions of Burleigh, Morton and Oliver Counties are now in the severe drought zone.
The National Weather Service in Bismarck, which has been keeping weather records since the late 1800s, reports that 2020 is off to the driest start for a year since record keeping began. The reporting site at the Bismarck Airport has recorded just 2.33 inches of moisture since January 1. Click
here to read more about the drought conditions in Ag Week.
According to the
U.S. Drought Monitor, 53 percent of the state's land mass falls into the moderate drought category, up from 36 percent a week ago. Most locations in western North Dakota have received less than an inch of rain in the month of June, compared to a normal of about three inches. Temperatures have averaged around three degrees above normal, but their drying effect has been amplified by persistent windy weather. Soil moisture continues to dissipate across western North Dakota, and there have been reports of low reservoir levels in the state.
Forecast high temperatures in the 90s this weekend are likely to make conditions even worse. And the National Weather Service
30-day outlook doesn't offer much cause for optimism, forecasting above normal temperatures and below normal precipitation through the month of July.
Click
here to read a Williston Herald article about the impact on wheat and canola crops.
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The Future of North Dakota Roads
LTAP to Offer Statewide Webinar July 21
The North Dakota Local Technical Assistance Program (LTAP) plans to conduct a
webinar next month to provide a comprehensive look at efforts to improve the state's road network.
LTAP, which is part of the Upper Great Plains Transportation Institute, is offering the free webinar to any and all local government employees or elected officials involved in local transportation planning and construction. The webinar, which will be delivered via the Microsoft Teams platform, is scheduled July 21 from 1:30 to 4:00 p.m. CDT. Registration is
not required. Below is the preliminary agenda for the webinar:
UGPTI Local Roads Needs Study Update, 2021-2040
• History, Purpose, Overall Process – Dale Heglund
• Unpaved Roads/Traffic Forecasts - Alan Dybing
• Paved Roads/GRIT – Brad Wentz
• Bridges/Summary – Tim Horner
Information on roadway costs and projections for the next 20 years will be shared.
State Funding and Property Taxes for Infrastructure
• NDACo, Terry Traynor and Genny Dienstmann
How does our local transportation network get funded? NDACo will provide an update on its efforts to support local transportation leaders.
Bridge Inspection and NDDOT Information
• NDDOT, Bryon Fuchs
Bridges are a critical component in our roadway asset mix. The NDDOT Local Government Division will provide an update on the new local government bridge inspection program and related efforts.
Western Dakota Energy Association Updates
• Operation Prairie Dog and Oil Tax Review – Brent Bogar
• LoadPass Statewide Update - Janet Sanford
• Wise Roads – Geoff Simon
The discussion will begin with an overview of Operation Prairie Dog and oil tax revenue, followed by a review of LoadPass oversize truck permitting and the latest enhancements to that process, including plans to expand statewide. You’ll also receive an update on the Wise Roads weather station project .
NDDOT Transportation Connection − A Shared Vision for Transportation in 2045
• NDDOT, Stewart Milakovic and Rebecca Geyer
The session will end with an invitation to help set the course for our future through a unique NDDOT Planning Division public input process.
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Governor Extends Renewal Deadline
V
ehicle and Driver License Pushed to Aug. 31
Governor Doug Burgum issued an executive order this week replacing an earlier one that simply extended renewals “during the state of emergency.” In the new order, both vehicle registration and driver licenses expiring March 1 or later will be extended through August 31.
The North Dakota Department of Transportation notes that in-person services are available by appointment only. To schedule an appointment, visit
dot.nd.gov or call 1-855-633-6835.
NDDOT is currently focused on serving customers with driver’s license and motor vehicle tabs that expire between March 1 and August 31, and will continue to schedule appointments based on immediate need. There are currently 20,650 driver license renewals and 48,000 Motor Vehicle registrations that expired during the COVID-19 emergency.Over the last six weeks, NDDOT completed 127,567 motor vehicle transactions and 13,875 driver tests, license renewals, and duplicate licenses.
The U.S. Transportation Security Administration also has extended the REAL ID deadline to October 2021. Only customers renewing a North Dakota driver license will be able to obtain a REAL ID during their scheduled appointment.
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Williston Basin Petroleum Conference
Registration for September Event is Open
Event organizers are offering both live and online options for what they call a “COVID-Conscious Conference” on September 1-3 in Bismarck, North Dakota. With the Bakken rebounding, organizers say “the time is right to bring our industry together to share ideas, make valuable business development contacts, and network with industry professionals.”
With every general registration, two free virtual passes will be issued. In addition, one free virtual pass will be issued with every virtual registration.
Over 250 booths have been sold and a great lineup of speakers have been confirmed. Some of the virtual options for the conference include:
- Livestreaming of speakers.
- Options to email and schedule meetings with exhibitors and attendees both online and in-person.
- Lead generation and attendee matchmaking.
Click
here for more information and to register for the Williston Basin Petroleum Conference.
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Click It or Ticket - H.E.A.T. Continues
“It only takes a couple seconds to buckle your seat belt and it could save your life,” said Lt. Adam Dvorak from the ND Highway Patrol.
Dvorak and fellow law enforcement officers across the state will be launching extra patrols from July 1 through August 13 looking for all forms of unsafe motorist activity including those not wearing seat belts.
“Click It or Ticket reinforces seat belt use not just during the Click It or Ticket campaign, but every time you travel," Dvorak said.
According to ND Department of Transportation data, increased traffic on the roadways during the summer leads to an increased number of crashes and fatalities. Seat belts save lives and are the single most effective safety device to prevent death and injury in a motor vehicle crash. All vehicle occupants should take personal responsibility when traveling and always buckle up.
Last year, 47% of those who died in motor vehicle crashes were not wearing their seat belts.
This campaign is part of the
Vision Zero summer H.E.A.T. (Highway Enforcement of Aggressive Traffic) strategy to eliminate motor vehicle crash fatalities and serious injuries on North Dakota roads. Over the past five years, more people have died in motor vehicle crashes in warm weather months (May through October) than cold weather months.
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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 Shannon Holter said the association is offering the scholarships to help the industry and western communities meet the workforce challenges historically experienced with oil industry growth.
“We recognize that North Dakota will see benefits from the oil industry only if it is able to attract the workforce it needs,” said Holter. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy sector.”
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 September 18, 2020. Scholarship winners will be announced at WDEA's annual meeting October 7-8 in Williston.
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Quick Connect
- Northern Minn. mayors urge Walz not to file appeal on Line 3 -- Fargo Forum
- Pandemic takes heavy toll on North Dakota's upstart "clean energy" sector -- Fargo Forum
- Oilfield company faces $2M fine for incident state says was illegal dumping -- Williston Herald
- 2019 drug arrests down, homicides up, North Dakota crime report shows -- Bismarck Tribune
- Governor: North Dakota close to the last stage of its reopening plan -- Associated Press
- Two legal disputes emerge from North Dakota's June primary election -- Bismarck Tribune
- Progress of the flood protection plan, nine years after the Souris River flood -- KFYR-TV
- Roosevelt library moving forward after removal planned for New York statue -- Fargo Forum
- The numbers: May economy at a glance for Williston and Williams County -- Williston Herald
- Pandemic crisis proves the importance and need for rural grocery stores -- Williston Herald
- North Dakota has collected $43 million in online sales taxes since 2018 -- Associated Press
- Publication names new Williston airport as Airport Project of the Year -- Williston Herald
- Port: Another year, another billionaire trying to write North Dakota's laws -- Fargo Forum
- In an angry meeting, District 8 removes its president, Dawn Hollingsworth -- Williston Herald
- Williams County school districts seek community feedback on reorganization plan-- KFYR-TV
- Bismarck School Board approves land purchases for 2 elementary schools -- Bismarck Tribune
- Former longtime University of Mary President Sister Thomas Welder dies -- Bismarck Tribune
- ND Heritage Center reopens and welcomes guests back at reduced capacity -- KXMB-TV
- Medora Musical opens the 2020 season with 40 percent seating capacity -- Dickinson Press
- Oil pricing agencies Platts and Argus launch new U.S. crude oil benchmarks -- Reuters
- Latest orphan well report overestimates well count and the cost of plugging -- Energy In Depth
- U.S. shale companies expected to boost output by 500,000 bpd by month-end -- BOE Report
- Why "Big Oil" won't be buying up smaller, struggling oil and gas companies -- OilPrice.com
- Candidate Biden's transportation infrastructure plan bound to fail even before it begins -- IER
- Poll: Younger voters see natural gas as critically important to U.S. economy -- Energy In Depth
- LNG shipments by rail approved in United States amid pipeline battles -- Associated Press
- BOEM's environmental review of offshore wind farms show adverse impact on fisheries -- IER
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Factoid of the Week
North Dakota oil production began in April 1951. It was 38 years later that the state produced its one billionth barrel. It took another 22 years before the state hit the 2 billion barrel mark in 2011. But with the Bakken booming, the state surged past the 3 and 4 billion barrel mark, and in 2019 produced the 5 billionth barrel of North Dakota sweet crude.
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July 1
Stanton
July 1
Online
July 2
Online
July 7
Online
July 8
Online
July 14
Bismarck
July 15
Bismarck
July 16
Bismarck
July 21
Online via Microsoft Teams
July 22
Bismarck
July 30
Bismarck
August 20-21
Williston
September 1-3
Bismarck
September 30 - October 1
Bismarck
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Oil prices and rig count
June 26, 2020
WTI Crude: $38.49
Brent Crude: $41.02
Natural Gas: $1.50
North Dakota Active Oil Rigs: 9 (down 2)
6/26/2019 -- 62 rigs
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Geoff Simon
Editor/Executive Director
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