June 14, 2019

PSC Rejects Burke County Wind Farm

In a decision one commissioner called "historic," the Public Service Commission unanimously rejected a proposed 200-megawatt wind farm in Burke County this week. 

NextEra Energy Resources submitted the application to install up to 76 wind turbines and build 37 miles of transmission line to connect to the grid, but the project was strongly opposed by the North Dakota Game and Fish Department and the US Fish and Wildlife Service. In his comments, Game and Fish Conservation and Communications Division Director Greg Link said while the department recognizes the state's all-of-the-above energy policy, Burke Wind "could not have picked a worse spot in the state" regarding the wind farm's impact to prairie and wetland wildlife species (see map of proposed wind farm site).

Commissioner Julie Fedorchak, who made the motion to reject the application, said the company failed to show the wind farm would not have significant effects on the environment. 

Click here to listen to Fedorchak's comments.

Fedorchak said she understands the decision may not be popular, but it was the right thing to do given the circumstances. 

Click here to listen to Fedorchak's comments.

US Fish & Wildlife comments characterized the proposed site as "an unusually high-value wildlife resource area" containing numerous prairie potholes which are prime nesting habitat for waterfowl. USFW also noted native grasslands are home to "a diverse array of numerous other species such as raptors including bald and golden eagles, grouse, shorebirds and grassland birds." 

PSC Chairman Brian Kroshus said the opposition of the two wildlife agencies to Burke Wind was a compelling factor in the commission's decision. 

Click here to listen to Kroshus' comments.

Kroshus said the PSC was mindful the wind farm had support from area landowners, but the decision had to be based on the law.

Click here to listen to Kroshus' comments.

Click here to read the PSC's 25 page Findings of Fact and Conclusions of Law. Click here to see the full list of documents submitted as part of the case.

Gas Production Sets Another New Record

North Dakota oil production remained nearly steady just under 1.4 million barrels per day in the month of April, but natural gas production set another record during the month.

Gas production during the month averaged nearly 2.863 billion cubic feet per day, breaking the previous record of 2.837 Bcf/day set in March. Oil production avaraged 1,391,188 barrels per day, down slightly from 1,391,760 in March. The all-time record of 1,403,808 bbl/day was set in January.

Natural gas capture remains a challenge, with 19 percent of the gas being flared, well above the 12% target. Lynn Helms, director of the Department of Mineral Resources, said producers captured an average of 2.318 Bcf/day, which is an all-time high. Helms said he expects the state's producers will be under the target with the completion of gas processing facilities and other infrastructure this fall.

Helms said producers are concerned about the recent drop in oil prices, noting that North Dakota producers are receiving an average of $40.50/barrel. The West Texas Intermediate benchmark was around $63 per barrel three weeks ago, but has slipped more than $10/bbl since then.

Click here to read Helms' Director's Cut.

Spillway to be Opened at Garrison Dam

As releases ramp up to a targeted 46,000 cubic feet per second (cfs) from Garrison Dam, the Corps of Engineers will be transferring some of the flow to the spillway beginning Monday, June 17.

The updated three-week forecast from the Missouri River Basin Water Management Division shows releases from Garrison increasing to 32,000 cfs over the weekend and reaching 35,000 cfs on Monday. To meet the targeted release, crews will be opening three spillway gates.  

“The release capacity of the powerhouse is just over 40,000 cfs, but some flows will be transferred to the spillway allowing us to proceed with previously scheduled maintenance and construction work at our switchyard, power plant and intake structure,” said Todd Lindquist, Operations Project Manager.

The spillway will be used to avoid delays to previously scheduled work. Flows through the spillway will fluctuate based on when generating units are scheduled to be offline. That will result in varying flows through the spillway between 3,000 and 16,000 cfs over the next two months. Once work on the plant is complete and all five generators are available, the majority of releases will be run through the power plant to maximize electric generation.

During last year's high runoff, releases reached 60,000 cfs in late June and continued for much of July. At the 46,000 cfs release rate, the river stage in Bismarck is not expected to be above 11.4 feet.

Click here to see the Corps' three-week forecast for all the mainstem dams. Click here to see a time lapse video of the spillway gates opening last year.

Interim Committee Assignments Issued



North Dakota legislators learned this week how they'll be spending part of their time before the next session of the legislature convenes in 2021.

All 141 lawmakers were assigned to at least one of the more than two dozen committees that will meet to study 46 topics selected by Legislative Management. The interim committees will meet anywhere from five to seven times over the next 18 months to review the topics, some of which focus on emerging technology, while others cover issues that were not successfully resolved during the 2019 session.

Several committees and their topics will be of particular interest to WDEA members. Senator Don Schaible, R-Mott, will chair the interim Education Funding Committee. The panel will examine the K-12 education funding formula, including the components, adjustments and weighting factors of the formula. It will also look into school transportation, including district routes, expenditures, reimbursement and possible efficiencies.

The Legacy Fund Earnings Committee will be chaired by House Majority Leader Chet Pollert. Its charge is to study the potential uses of legacy fund earnings, including the use of earnings to provide tax relief, reinvestment of earnings, to fund research and technological advancements, promote economic growth and diversification, and promote workforce development and career and technical education.

Gov. Doug Burgum will lead the ongoing study of tribal taxation issues. The Agriculture & Transportation Committee will study the possibility of setting up a road train pilot program, as well as the need for electric vehicle infrastructure in the state. Other committees will study ways the state might reduce health insurance premium rates, and the Department of Corrections and Rehabilitation Review Committee will study the preferable location of DOCR facilities.

Click here to see the list of committee assignments. Click here to see the list of study topics.

GAIN Supports Tougher Pipeline LAW

A coalition of business groups is supporting an effort by the Trump Administration and the Pipeline and Hazardous Materials Safety Administration to expand federal legislation to protect pipelines. 

Current federal law allows for fines and prison time for damaging pipelines currently in operation. But the new proposal would expand the law to include “vandalism, tampering with, or impeding, disrupting or inhibiting the operation" of both existing pipelines and those under construction.

The GAIN Coalition (Grow America’s Infrastructure Now) supports the legislation. Spokesman Craig Stevens says adding projects that are under construction is an important addition to the law.

Click here to listen to Stevens' comments.  

Stevens, who was interviewed this week on the radio program, Energy Matters, said the legislation would clarify the role of law enforcement in situations such as the recent Dakota Access Pipeline protest. 

Click here to listen to Stevens' comments. 

Stevens said several states have enacted new laws and increased penalties for damaging pipeline infrastructure, and others are considering it.

Click here to listen to Stevens' comments. 

Critics of the proposal are concerned it would allow protesters to face legal penalties for demonstrating their first amendment rights.

Click here to read a section-by-section analysis of the legislation.

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DAPL Builder Donates to Mandan Library

Energy Transfer Partners, the builder of the Dakota Access Pipeline, donated $3 million this week for various projects in the City of Mandan.

During a ceremony announcing the gift, Energy Transfer Partners Executive Vice President Chris Curia said the company was grateful for the support it received during the DAPL construction project.

Click here to listen to Curia's comments.

The money will be used for various projects including park improvements and major reconstruction on the Mandan Library.

Burgum to Chair Western Governors' Assn

Plans to Promote “Re-imagining the Rural West”

Gov. Doug Burgum was elected this week to serve as the next chairman of the Western Governors’ Association at the conclusion of its meeting in Vail, CO.

Burgum began his one-year term announcing his policy initiative will be “Re-imagining the Rural West.” He said the initiative will examine challenges and opportunities in rural economic development, infrastructure and quality of life, to develop policies that support vibrant rural communities in the West.

“Being elected to lead the Western Governors’ Association is a tremendous honor, and I’m deeply grateful for the opportunity to build upon the bipartisan, common-sense policy development that has become synonymous with WGA,” Burgum said. “Western governors can work together to solve our workforce shortages, improve our economic health and enhance the quality of life for all citizens.”

WGA will conduct a workshop and webinar series for the initiative to discuss emerging issues, share success stories, and develop bipartisan solutions to the most urgent challenges facing the rural West. The first workshop will be October 1 in Fargo.

Burgum also announced that North Dakota will host the WGA 2020 Annual Meeting next June in Medora, showcasing the state’s top tourist attraction. The announcement included a video promoting North Dakota and its influence on President Theodore Roosevelt. Click here to watch the video.

ND Royalty Owners to Meet in Bismarck

The North Dakota chapter of the National Association of Royalty Owners will hold its annual convention in Bismarck next week. The meeting will be held June 19-20 at the Ramkota Hotel & Conference Center.

The event kicks off with a free session in Minerals Management 101 at 9:30. The main portion of the meeting begins at 1:15 with remarks from Lt. Governor Brent Sanford. NARO members will also hear from WDEA Executive Director Geoff Simon with an overview of happenings in the West, from Senator Rich Wardner who'll review the 2019 Legislature and "royalty check transparency," and from NW Landowners Association Chairman Troy Coons discussing relationships between mineral owners and land owners.

Day Two includes presentations from ND Petroleum Council President Ron Ness, from Katie Haarsager with the Department of Mineral Resources and from ND Land Commissioner Jodi Smith. The agenda also includes presentations on tax topics, pore space storage and North Dakota geology.

Registration is $125 for members and $150 for non-members. Click here for additional details.

ONE BASIN, One Way! Rolls Out

Safety Program Now Taking Registrations

One Basin, One Way is a standardized safety orientation program developed by producers and contractors in the Bakken region for contractors that work in the area. The training will provide a North Dakota-based viewpoint on the hazards found in the Williston Basin. 

The idea is pretty simple. A new hire in the oil field must go through safety orientation training with all the companies the individual will be interacting with on the job. Depending on the job, that could be at least a half dozen or more leading up to a number of days in the classroom hearing basically the same message over and over. One Basin, One Way replaces those repetitive sessions with one session that nearly 100 different companies have agreed meets their requirements. 

The program is now available and contractor companies can begin to register for training across the state. Multiple courses are available every day in Williston; every Monday in Dickinson; every Tuesday in Watford City; every Wednesday in Minot; and every Thursday in Bismarck.

For a company to get involved with the training, click here and here for account set-up information. Once a company is in the system, it’s easy to get employees registered to attend any one of the frequent training sessions.  

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.

Quick Connect

Factoid of the Week

The U.S. electric grid is the biggest engineering achievement of the 20th century and one of the most indispensable machines on earth. Natural gas, coal and nuclear plants produce 86% of U.S. electricity needs. North Dakota plays a big role with more than 7,000 MW of generating capacity and 65,000 miles of electric transmission and distribution lines running through the state.

Source: The Story of Electricity and North Dakota Energy Studies

Upcoming Events

June 17

Ruso Wind PSC Hearing

Minot

June 17-20

Energy of North Dakota Teacher Seminar

Bismarck

June 19-20

ND National Association of Royalty Owners Convention

Bismarck

June 20

Dunn County Courthouse Grand Opening

Manning

June 20

ND Industrial Commission

Bismarck

June 24

Statewide Interoperability Executive Committee

Bismarck

June 26

ND Legislature Budget Section

Bismarck

June 27

Board of University and School Lands

Bismarck

July 6

Williston Area Chamber of Commerce Rockin' RibFest

Williston

July 11 -12

2019 Williston API Golf Tournament

Eagle Ridge Golf Course and The Links of ND 

July 16-17

Bakken Conference & Expo

Bismarck

July 16

Bakken Rocks Cookfest

Bowman

July 17

Bakken Classic Fishing Derby  

New Town

July 18

Bakken Rocks Cookfest

Van Hook