A series of bills have been introduced before the 2023 North Dakota Legislature that would make it difficult, if not impossible, to permit and construct a carbon dioxide pipeline.

Seven bills, all of which are sponsored by Hazelton Senator Jeff Magrum, are scheduled for hearing Thursday and Friday, January 26-27, in the Senate Energy and Natural Resources Committee. The legislation is an apparent response to a plan by Summit Carbon Solutions to develop a regional pipeline network that would transport CO2 from 32 ethanol plants in five states to North Dakota for disposal in underground formations in Mercer and Oliver Counties.

Among the bills is SB 2209, which would require the consent of at least 85 percent of property owners before eminent domain could be exercised to secure the remainder; SB 2212 would remove "common carrier status" which allows CO2 pipelines to exercise eminent domain; and SB 2228 would require agreement from all surface landowners before CO2 could be stored under their property. Other bills would provide additional compensation to landowners subject to eminent domain, allow recovery of attorney fees, and force companies to pay fees to landowners prior to surveying their property.

Although initially treated as a waste stream, there is potential for carbon dioxide to one day be used for enhanced oil recovery in the Bakken oilfields of western North Dakota. Lynn Helms, director of the Department of Minerals Resources, said even if all the CO2 in the state is captured from coal-fired power plants and other stationary sources, it would provide only about three percent of the CO2 that will be needed for future EOR efforts.

Click here to listen to Helms comments.

Helms said the state stands to lose many millions of dollars in tax revenue if CO2 pipelines are not constructed. There are currently two CO2 pipelines in North Dakota. One extends from the Great Plains Synfuels plant near Beulah into the oilfields of Saskatchewan; the other enters the state from Montana where the CO2 is being injected by Denbury Resources into an oil-bearing formation in Bowman County to enhance recovery.

Click here to see a diagram of the CO2 enhanced oil recovery process.

December snowstorms in western North Dakota may drop average daily oil production below 1 million barrels, according to the state's top oil regulator.

Lynn Helms, director of the Department of Mineral Resources, reported during his monthly news conference this week that November production averaged just under 1.1 million barrels/day, about a two percent drop from the October number. But Helms said blinding blizzards with heavy snow are expected to have a big impact on December output when the figures come in next month.

Click here to listen to Helms' comments.

Helms said November numbers also showed a four percent drop in natural gas production to just over 3 billion cubic feet per day. He said it defies the recent upward trend in the gas-to-oil ratio, which is likely because more wells are being completed outside the gas-rich Bakken core.

Click here to listen to Helms' comments.

Helms said the price of natural gas delivered to Northern Border at Watford City dropped to $2.88/MCF, the lowest since December 2021, due to oversupply in the Midwest even as liquified natural gas prices in Europe remain many times higher.

Click here to read or download Helms' Director's Cut.

Members of the Senate Finance and Taxation Committee are considering legislation that its backers say will reduce the average property tax bill 25 percent.

Mott Senator Don Schaible is the sponsor of SB 2066 that is intended to put an additional $327 million into the Foundation Aid Formula that supports K-12 education. The additional funding aimed at reducing local property taxes comes with a requirement that school districts discuss their budget in terms of dollars rather than the number of mills levied on property in the district. Schaible said the provision is included because the public can be confused when they're informed the mill levy has not increased, but their property taxes still go up because their valuation is higher.

Click here to listen to Schaible's comments.

The bill's prime House sponsor, Rep. Mike Nathe of Bismarck, said he played a part in a property tax buydown through the school funding formula enacted by the 2013 Legislature, so he knows the plan will work.

Click here to listen to Nathe's comments.

Nathe agrees with Schaible that it makes sense to require school districts to discuss their budget in terms of dollars and cents, rather than any change in the mill levy. 

Click here to listen to Nathe's comments.

Nathe said when he began his first term in the legislature in 2011, the state was picking up just 42 percent of the cost of K-12 education. Today, it's 73 percent, and the bills aims to increase that to 85 percent.

Click here to read a fact sheet prepared by Legislative Council that explains other provisions in the bill.

The North Dakota Senate voted unanimously this week to approve legislation that eliminates what is currently a mandatory property tax in the oil-producing counties.

SB 2162, introduced by Watford City Senator Dale Patten, would remove the requirement that counties levy 10 mills for roads in order to receive their share of the gross production tax on oil.

Click here to listen to Patten's comments.

The mandate was enacted in 2011 as part of a legislative revision to the GPT distribution formula. Slope County Commissioner Scott Ouradnik told members of the Senate Finance and Taxation Committee that the road levy did not exist in his county before the state imposed the requirement, and would probably go away if the bill is passed.

Click here to listen to Ouradnik's comments.

Mountrail County Commissioner Trudy Ruland, who is president of the WDEA Executive Committee, said whether or not to impose a property tax levy for roads should be a local decision.

Click here to listen to Ruland's comments.

The bill passed the Senate 46-0. Click here to read supporting testimony submitted by Geoff Simon on behalf of the Western Dakota Energy Association.

Basin Electric Power Cooperative notified member co-ops and employees this week that it has rejected the latest offer from Bakken Energy for the acquisition of Dakota Gasification Company (DGC).

"The board of directors and our management team did not think the offer addressed our requirements to reduce risk for the cooperative and minimize impacts to member rates, among other concerns," Basin CEO Todd Telesz said in an email.

"As I shared previously, these negotiations have been complex and detailed," Telesz continued. "The time spent and knowledge gained will certainly help us as we evaluate any future strategic alternatives for DGC."

Bakken Energy announced in June 2021 its intentions to purchase the synfuels plant to create "a world class clean hydrogen hub." The proposal created concern in Coal Country because the company intended to discontinue the coal plant's gasification process, which currently consumes about 6 million tons of lignite per year.

Basin officials said they were appreciative of the Bakken Energy team for their work and professionalism throughout the negotiation process, and "we sincerely wish them well in their future endeavors." The two remain subject to a non-disclosure agreement regarding details of the negotiation. Bakken Energy's right to exclusive negotiation with Basin expired December 31. 

Telesz said the cooperative has three goals regarding the future of DGC; 1) Expand revenue-generating capabilities, 2) Exercise expense discipline, and 3) Position the plant to maximize value for the membership.

Patrons of the Alexander Public School District this week overwhelmingly defeated a $15.5 million bond issue to finance construction of additional classrooms, expand the cafeteria and front office space, add additional working space for staff, and a conference room.

Unofficial totals from Tuesday's election showed 59 votes in favor of the project and 107 votes against it.

District Superintendent Leslie Bieber said the expansion and upgrades are necessary because enrollment in the district has surged in recent years with 49 additional students this fall for a total of 306 in grades K-12, a 19 percent increase from the 2021-22 school year.

Had it been approved, the project would have been the third facility expansion for the district, which 10 years ago had just 122 students. A home economics area was added in 2016, and a vocational ag building was added to the campus in 2020. Click here for more details about the plan in a December 2, 2022 WDEA newsletter article.

The canvas of the vote will be conducted January 30 at a special meeting of the Alexander School Board.

The ND Department of Environmental Quality is seeking approval of an amendment that would give the agency greater authority over the disposal of wind turbine blades.

In testimony before the House Energy and Natural Resources Committee, DEQ Solid Waste Manager Diana Trussell said the few landfills that currently accept worn out turbine blades struggle to find room for their disposal.

Click here to listen to Trussell's comments.

Trussell said legislative approval of the amendment to HB 1090 would allow the DEQ to require landfills that accept blades to submit a plan to DEQ that would detail how the blades would be handled. 

Click here to listen to Trussell's comments.

Trussell said newer turbine blades are being manufactured in a way that makes them easier to recycle, but she said there aren't many options for older blades than disposing of them as garbage.

The amendment was proposed to legislation that would redefine groundwater in the context of DEQ regulation of coal combustion residuals (ash). Trussell said the language is required by the EPA in order to retain state regulatory authority. The committee approved the amendment and gave the bill a unanimous 13-0 Do Pass recommendation. 

Click here to read an article about a wind turbine blade "graveyard" in Sweetwater, TX.

The North Dakota Senate Education Committee is considering a bill that would create a scholarship program aimed at oilfield workers and members of their family.

The "Re-energize North Dakota Scholarship" in SB 2197 would provide $10 million to fund scholarships of of up $16,000 to individuals employed in the oil and gas industry in an oil-producing county or an immediate family member of that employee.

Williston State College President Bernell Hirning said he was encouraged by Gov. Doug Burgum to work with other educators, the oil industry and workforce professionals to draft the legislation. Hirning told committee members the bill targets western North Dakota, but would benefit the entire state.

Click here to listen to Hirning's comments. 

Ron Ness, President of the ND Petroleum Council, said ensuring that the family members of oilfield workers have good employment opportunities will "hook them," increasing the chances that the family will stay in North Dakota if adverse circumstances arise.

Click here to listen to Ness' comments.

Committee members are considering several proposed amendments to the legislation and will likely act on them next week.

The North Dakota House passed a bill this week that would expand the state's current "Slow Down, Move Over" policy by extending protection to any disabled vehicle with flashing lights on the roadside.

HB 1141 got a boost from impactfultestimony delivered by Killdeer Paramedic Joshua Edwards, who was injured in December 2021 when he was struck by a speeding pickup while caring for a victim who was critically injured in a vehicle rollover.

Click here to listen to Edwards' comments.

In addition to sustaining physical injuries and emotional trauma, Edwards said the driver's carelessness saddled Killdeer taxpayers with medical bills, overtime expense, replacement of damaged equipment and higher insurance rates.

Current state law protects only emergency vehicles displaying a flashing, revolving or rotating blue, white or red light, and maintenance vehicles displaying amber or white lights. Fargo Rep. Austen Schauer said the current law leaves drivers unsure of their responsibility to pull over to avoid a vehicle on the side of the road. 

Click here to listen to Schauer's comments.

Schauer said the legislation is intended to clear up any confusion about the vehicles that are covered.

Click here to listen to Schauer's comments.

Former Dunn County Commissioner Daryl Dukart submitted written testimony in support of the bill. 

“Across the country, nearly 350 people are struck and killed every year while outside a disabled vehicle, in part because only nine states currently protect drivers in this common situation,” Dukart wrote. “North Dakota is not yet currently one of them.”

The bill passed the House 88-5 and now moves on to the Senate.

Members of the House Energy and Natural Resources Committee heard a bill this week that would prohibit a city or county from adopting any policy banning the use of natural gas in new construction.

Bismarck Rep. Matt Heilman, prime sponsor of HB 1124, testified that the legislation aims to protect consumer choice.

Click here to listen to Heilman’s comments.

Andrea Pfennig, lobbyist for the Greater North Dakota Chamber, testified in support of the bill, noting its importance to the free market system.

Click here to listen to Pfennig’s comments.

Brady Pelton, Vice President of the North Dakota Petroleum Council, also noted the importance of consumer choice, and suggested it could be applied to all forms of energy produced and consumed in North Dakota.

Click here to listen to Pelton’s comments. 

The committee took no action on the bill.

The ND Senate approved a bill this week that authorizes the state Department of Transportation to enter into a cooperative maintenance agreement with Theodore Roosevelt National Park.

SB 2110 would give NDDOT authority to use resources provided via the state highway fund, provided the department seeks reimbursement of its costs from the federal government. Matt Linneman, NDDOT Deputy Director for Engineering, testified in favor of the bill, noting the importance of the park to the state’s tourism industry.

Click here to listen to Linneman’s comments.

Discussion within the Senate Transportation Committee focused on the use of state funds to maintain federal property. NDDOT officials said the primary maintenance service would be snow removal to keep the park open in the winter.

Dickinson Senator Dean Rummel pitched the bill on the Senate floor, touting the park's importance to the state's tourism industry.

Click here to listen to Rummel's comments.

The legislation passed the Senate on a unanimous 46-0 vote.

Congressman Kelly Armstrong issued a statement this week following his re-nomination by the House Republican Steering Committee to continue serving on the House Energy and Commerce Committee, as well as rejoining the House Oversight and Accountability Committee. 

“It is an honor to represent North Dakotans in Congress and fight for policies that put them first,” Armstrong said. “We have an opportunity to advance policies that support domestic energy and agriculture, which are the backbone of North Dakota's economy, and deliver real oversight to hold the Biden administration accountable.”

The Energy and Commerce Committee has wide jurisdiction over critical issues including healthcare, telecommunications, technology, consumer safety, environment, food and drug safety, energy, and interstate and foreign commerce. Established in 1795, it's the oldest continuous standing committee in the US House. The Oversight and Accountability Committee, previously known as the Oversight and Reform Committee, is the main investigative committee in the House. It has authority to conduct oversight into any federal government matter, program or agency. 

The ND Petroleum Foundation is now accepting applications for the Al Golden Memorial Scholarship, named for the North Dakota oil pioneer and first member of the ND Petroleum Council’s Hall of Fame.

Each year, the foundation awards ten $2,000 scholarships to students pursuing post-secondary education in fields related to the oil and gas industry. The scholarship program supports students who are pursuing post-secondary education at a North Dakota college or university in geology, engineering, processing plant technology, science, technical skills or other careers related to the oil and gas industry.

The scholarships are part of the oil and gas industry’s efforts to help solve growing workforce demands in North Dakota. More than $135,000 in scholarships have been awarded since the fund's establishment. 

The scholarship is open to full-time students who have a 3.0 GPA or higher. Applicants must also have completed at least six months of work and/or internship experience in the oil and gas industry or at least 12 hours in geology, earth science, geological/petroleum engineering, chemistry, math or safety.

The application deadline is June 1. Click here for the application form and eligibility details.