Members of North Dakota's EmPower Commission are in agreement that the newly-created Clean Sustainable Energy Authority (CSEA) has been beneficial to the state's energy sector, but have mixed views about how it should look in the future.

EmPower held a public hearing this week on CSEA (pronounced see-see) as directed by HB 1452, the legislation that created the authority. There was little public input during the hearing aside from a comment by WDEA Executive Director Geoff Simon regarding CSEA's issuance of a grant and loan to Bakken Energy for its plan to convert the Great Plains Synfuels plant into a facility that would produce hydrogen. Simon said Bakken Energy's plan proposes to end the gasification of coal, and instead pipe in natural gas for hydrogen production, in effect pitting natural gas against coal. He said CSEA should avoid awarding grants or loans that support one source of energy over another.

EmPower members agreed that CSEA has been a great asset to North Dakota. Al Christianson, who serves on EmPower and is also a voting member of CSEA, noted that the authority quickly exhausted the $25 million in grants and $250 million in loan authority granted by the 2021 Legislature, and urged additional support in the upcoming 2023 session.

Click here to listen to Christianson's comments.

John Weeda, director of the ND Transmission Authority and a member of CSEA's technical review committee, said CSEA has garnered national attention and brought additional investment interest to the state.

Click here to listen to Weeda's comments.

EmPower member Ron Ness, president of the ND Petroleum Council, asked the group to consider whether CSEA should focus more on grants to help clean energy projects get started, or continue to issue large loans to support commercialization of new technology.

Click here to listen to Ness' comments.

Wade Boeshans, formerly with BNI Coal and now EVP of Summit Carbon Solutions, told EmPower members that CSEA is needed to offer loan support to large-scale projects under development in the state.

Click here to listen to Boeshans' comments.

Boeshans said CSEA filled an important gap, giving the state all the tools necessary to support clean energy projects, but said whether CSEA should continue to fill that gap is an open question.

Click here to listen to Boeshans' comments.

Lt. Governor Brent Sanford, who serves as chairman of CSEA, said different clean energy projects require different methods of financing. Sanford said it will be a topic of discussion for the 2023 Legislature.

Click here to listen to Sanford's comments.

Click here to learn more about the Clean Sustainable Energy Authority.

The North Dakota Governor's office and the ND Department of Commerce are putting together a plan to partner with neighboring states in pursuit of federal grant funds to support development of a regional hydrogen hub. 

James Leiman, who recently tendered his resignation as Commerce Commissioner, said North Dakota is currently discussing the potential partnership with four other states - Minnesota, Montana, South Dakota and Wisconsin. Leiman, who provided an update to the EmPower Commission this week, said there is active interest in hydrogen development, both from state governments and private sector companies in the five states. He said that interest, combined with North Dakota's geology and energy resources, makes the regional plan "super competitive" when pitted against pending proposals from other states and regions.

Click here to listen to Leiman's comments.

Earlier this year, the U.S. Department of Energy issued a Notice of Intent to fund the Bipartisan Infrastructure Law’s new $8 billion Regional Clean Hydrogen Hubs program (H2Hubs). Through the H2Hubs program, DOE aims to establish regional networks of hydrogen producers, consumers and necessary infrastructure in order to expedite the adoption of hydrogen as a clean energy carrier.

DOE plans to award funds to six to ten H2Hub projects in different regions across the country, at least two of which would support hydrogen produced from fossil fuels. Leiman said the state is currently considering several different models that will determine how the partnership will work.

Click here to listen to Leiman's comments.

Leiman said the state's H2Hubs application must be completed in the next four to five weeks, with DOE's funding decisions expected sometime this fall. He said the challenge is getting some agreement among the various parties to the partnership, and then convincing DOE that the state's plan is better than the rest.

Click here to listen to Leiman's comments.

DOE expects the program to provide a minimum award range of $400 to $500 million and a maximum range of $1 to $1.25 billion with a 50 percent minimum non-federal cost share. H2Hub projects are expected to be carried out over the course of eight to 12 years.

BNI Coal, based in Center, commissioned a $31 million dragline Monday and will put the coal miner to use in approximately six weeks.

The machine was previously operated for six years by Mississippi Power Co. and is the world’s newest 757 Page dragline. The equipment, which has been named Legacy, will be more cost-effective than the dragline it's replacing.

“The commissioning of Legacy builds on BNI’s nearly 100-year history in North Dakota as a large employer with a commitment to environmental stewardship,” Mike Heger, BNI general manager said. “What you see here is a $31 million capital investment in the future of North Dakota’s lignite industry and our dedication to providing a reliable and affordable energy resource.”

“Our existing machine needed major capital improvements over the next decade. We had an opportunity to purchase a new machine under a scenario where we would spend a little more money now, but over the following years it actually pays for itself,” Heger continued. “The important thing about this, from our perspective, is that it’s a real strong signal that we intend to be here longer.” 

The new dragline weighs 11 million pounds and stands 286 feet high, which is about 44 feet taller than the state Capitol. The boom is 310 feet long.

“Draglines are the biggest piece of equipment that you have in a mine," Heger said. "Its job is to simply take all of the overburden, which is the soils and clays and rocks that are over the top of the coal, and remove it so that you can mine the coal beneath." 

The new machine could mine coal for another 50 years, according to Heger.

“They do take capital improvements over time, so there’ll be major repairs. But it is the latest electrical technology, which is a huge deal,” he said, adding that the rest of the machine is “fairly replaceable” with regular maintenance. Parts from Big Jake that are compatible with Legacy will be salvaged and saved. Other parts will be sold to other mines for their draglines. Steel from the machine will be sold to a recycler.

Heger said that with the substantial investment, BNI is committed to maintaining a safe environment for employees and the public. In addition to providing around four million tons of coal for the Milton R. Young Station, which is working to incorporate carbon capture technology, BNI reclaims approximately 200 acres a year at its Center Mine.

“Obviously, in any industrial processes, (there are) environmental issues that need to be addressed. Primarily with us, it’s the way we handle runoff. We also have oils and greases, which are typical of other coal industrial facilities. But we’ve got a long track record of taking care of those and we take that really seriously,” he said. 

The two-year process of obtaining the dragline from Mississippi and transporting it to North Dakota began in April 2021. It involved disassembling the machinery into pieces, hauling them on semi trailers and reassembling them. Welding the dragline back together has been ongoing since last fall.

State Public Service Commissioner Randy Christmann said BNI's investment in Legacy helps drive the coal industry forward. 

“Commissioning a piece of equipment like this is really a momentous event ... This is a huge capital investment for BNI,” Christmann said. “It’s also a demonstration of BNI’s recognition of the fact that coal is an essential part of maintaining the affordable and dependable electric system that we all have become accustomed to having."

North Dakota Department of Transportation Director Bill Panos submitted his resignation this week effective September 9, citing family obligations in his home state of California.

Gov. Doug Burgum appointed Panos as NDDOT director in August 2019, noting his extensive leadership experience and long history of managing major infrastructure projects and large organizations. Panos had most recently served as Wyoming’s DOT director.

“Under Bill’s outstanding leadership, the Department of Transportation has made significant progress in many areas including traffic safety, strategic planning and improved access for constituents, especially to online services,” Burgum said. “We are deeply grateful for his service, which has positioned the NDDOT for success in an environment of rapid technological change and significant infrastructure investment in North Dakota and across the nation."

“It has been an amazing journey serving NDDOT for the last 3 years," Panos said. "I am enormously proud of the accomplishments of our NDDOT team. This family of engineers, planners, mechanics, accountants, administrators, technicians, creators, and innovators have redefined our culture and expanded who we have helped."

Burgum announced that NDDOT Deputy Director of Engineering Ron Henke will serve as interim director. The NDDOT has 982 employees and a biennial budget of $2.2 billion to build and maintain 8,518 miles of roadway and 4,858 bridges. Annually, the department processes more than 1 million vehicle registrations and serves more than 500,000 licensed drivers at branch offices located throughout North Dakota.

North Dakota’s congressional delegation announced this week that the U.S. Department of Transportation has awarded $19.5 million to the North Dakota Department of Transportation to fund the installation of roundabouts, turn lanes, lighting, and rumble strips to improve safety on both the Standing Rock and Fort Berthold Indian Reservations. 

In March, the delegation sent a letter to Secretary of Transportation Pete Buttigieg requesting greater funding in response to increased population within the state and subsequent wear on the roads and highways. The delegation also outlined the public safety needs of both the Standing Rock Sioux Tribe and the Mandan, Hidatsa and Arikara Nation to ensure safe and efficient transportation in their communities. 

“The NDDOT’s Tribal Safety Project addresses safety concerns of both the Standing Rock Indian Reservation and MHA Nation by improving safety for pedestrians and vehicles traveling in busy areas near schools, workplaces, and homes," the delegation wrote. "The construction project provides direct benefits to two underserved areas and addresses disparities in rural transportation infrastructure.”

The USDOT also awarded $1.5 million to the City of Fargo to study the replacement of the 12th Avenue North bridge, which residents use to access health care, the airport and the industrial park.

The ND Department of Transportation was awarded a $2.3 million grant from the U.S. Department of Transportation this week to support  the planning of a statewide transportation management center.

The TMC will monitor the state’s transportation network, dispatch maintenance resources and provide coordinated travel information from a central location. The project also includes 4.5 miles of Bureau of Indian Affairs Route 3 between cities of Fort Yates, ND and Kennel, SD. The work includes the installation of edge-line, rumble strips, shoulder slopes, and lining improvements.

The funding, which comes from the Rebuilding American Infrastructure with Sustainability & Equity grants program, will support

Senators Kevin Cramer and John Hoeven and Representative Kelly Armstrong earlier wrote to Transportation Secretary Pete Buttigieg to express their support for the state’s efforts and urge him to fund the project.

Citing better than expected profits this year, Basin Electric’s board of directors unanimously voted this week to decrease member rates by an average of one mill per kilowatt hour.

The rate decrease amounts to approximately $33.5 million in 2023 alone and will go into effect on January 1, 2023.

The board’s action to reduce rates comes just weeks after approving two other financial resolutions to return millions of dollars to its three million members. At its July meeting, directors authorized a $15 million bill credit on members’ July power bills as well as the retirement of $13.2 million in patronage capital credits. The two actions will bring the amount returned to members since the year 2000 to over $630 million.

While the rate decrease will take effect in the new year, the patronage capital credits were distributed in late July and the bill credit will appear on the bill members receive this month. Patronage capital credits represent value returned to the membership from their investment in the cooperative in previous years. A bill credit reflects a rate reduction on the current year’s sales.

“One of the unique benefits of the cooperative is that when a co-op does well financially, its members do, too," said Basin Electric CEO and general manager Todd Telesz. "The margins generated at the cooperative benefit every single member at the end of the line.” 

Coal fines from Antelope Valley Station are being trucked to Leland Olds Station to supplement the low stockpile the plant is currently experiencing.

Leland Olds Station normally receives its coal by rail from the Freedom Mine. Coal fines are the smaller pieces of coal that are sent to Antelope Valley from Dakota Gasification Company’s Great Plains Synfuels Plant after screening prior to the gasification process. Coal-based power plants can burn the fines to make electricity.

Trucking began August 5 and six trucks per day are currently transporting coal with an expected increase to eight trucks per day. Trucks can haul about 28 tons of coal, and are planned to eventually carry a target of five loads per day. While coal was similarly hauled via truck to Leland Olds Station in 2014, there were considerably more trucks carrying coal during that time period. The contents in the trucks will be covered to help secure the fines in the trailers.  

The decision to truck coal was made due to a dwindling stockpile of lignite at Leland Olds Station. As of July 31, Leland Olds inventory was less than 220,000 tons. The target stockpile is 500,000 tons, which would be enough to generate about 40 days of electricity.

“Ensuring our members continue to receive reliable electricity is a top priority for Basin Electric,” said Colleen Peterson, Basin Electric superintendent of fuel and transportation. “Having an adequate fuel supply at our facilities ensures we can maintain reliability should fuel or transportation issues arise.”

The ND Petroleum Council joined with dozens of trade groups representing America’s natural gas and oil industry to declare its opposition to the badly-misnamed Inflation Reduction Act. 

In a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, the organizations outlined troublesome provisions, including increased taxes and fees, that hinder the industry’s ability to promote domestic energy security.

“We share the goal of addressing climate change, as evidenced in the policies we support and in the actions that we take every day,” the letter states. “However, the considerable tax increases and new government spending in the IRA amount to the wrong policies at the wrong time.”

Additionally, the letter illustrated the absence of comprehensive permitting reform legislation required to fulfill America’s growing infrastructure needs and increasing demand for reliable and affordable energy.

“Finally, the IRA fails to address permitting reform, which is desperately needed and is essential to effectively deliver affordable, reliable energy to consumers in a growing economy,” the signatories wrote. “To date, neither the House nor the Senate have introduced comprehensive permitting reform legislation. We urge Congress to quickly consider and pass permitting reform without delay.”

The signatories conclude in calling Speaker Pelosi and Leader McCarthy to reconsider passage of the legislation without revision. View the letter, along with the full list of signatories, here.

Senator Kevin Cramer led 16 colleagues urging Department of the Interior Secretary Deb Haaland to implement provisions of the bipartisan infrastructure law which streamlined permitting for oil and natural gas infrastructure.

In the letter, the senators highlight a section of the Infrastructure Investment and Jobs Act (IIJA) which gave the Biden Administration authority to categorically exclude certain energy-related infrastructure projects from the National Environmental Policy Act (NEPA) on public and applicable Indian lands to prevent wasteful venting or flaring of natural gas. The letter noted IIJA is an available tool, currently unused by Interior, to reduce methane and carbon dioxide emissions on federal lands.

“A further reduction in methane and carbon dioxide emissions requires the federal government to serve as a facilitating partner in the development of midstream infrastructure, with federal land managers playing a pivotal role," wrote the senators. "As the North Dakota experience demonstrates, enabling private sector innovation, rather than imposing top-down federal requirements, is an effective way to reduce methane and carbon dioxide emissions,” 

“It has been more than seven months since the IIJA was passed and we are not aware of any substantive action taken by DOI to implement section 11318 on the lands you manage,” continued the senators.  

“To date, we have not seen any substantive evidence of federal land managers utilizing the permitting efficiencies at your disposal. Rather than pursuing a punitive approach, federal land managers should use NEPA authority to work with producers in a collaborative manner. We respectfully request an update on DOI’s implementation of the categorical exclusion under NEPA for issuance of a sundry notice or right-of-way for oil, natural gas, and produced water gathering lines and associated field compression or pumping units to reduce methane and carbon dioxide emissions on federal and applicable tribal lands,” concluded the senators.

Get the date on your calendar! The annual meeting of the Western Dakota Energy Association will be held:

October 12-13
Rough Rider Center
Watford City, ND

The meeting will feature presentations on the current and forecast state of North Dakota oil production, an update on pipeline takeaway capacity and efforts to develop new uses for natural gas, a discussion of electric reliability concerns, updates regarding LoadPass Permit and Wise Roads, a report on development of the Bakken Area Skills Center, a preview of the 2022 General Election, and a report on interim legislative activity.

The meeting concludes with election of the WDEA Executive Committee. Board members up for election who are eligible to serve an additional three-year term include Stanley City Councilman Zach Gaaskjolen and Alexander Superintendent Leslie Bieber. WDEA members will also choose a new county representative to the Executive Committee to replace Daryl Dukart, who is not seeking re-election to the Dunn County Commission. There is also currently a vacant board position to be filled by an education representative from the oil-producing counties.

Sponsorships and exhibit space are also available. Click here for sponsor/exhibit opportunities.

Wise Roads weather stations are equipped with high resolution cameras that frequently capture stunning shots of the landscape in western North Dakota. This week's shots are just that -- beautiful scenery.

The Wise Roads project (Weather Information System to Effectively Reduce Oilfield Delays and Disruptions) was developed by WDEA to increase the efficiency of the movement of oilfield truck traffic. Most weather stations were placed in the core area of Bakken production, focusing on Dunn, McKenzie, Mountrail and Williams Counties. The project provides more accurate weather information to county road managers, especially about rain events, to minimize the need to impose weight restrictions when gravel roads get wet. It was developed in partnership with the ND Agricultural Weather Network (NDAWN), which maintains the stations for WDEA. The project was also assisted with a $250,000 grant from the Oil & Gas Research Council.

Thus far, 45 new stations have been installed, 36 of which are located in the four core counties. Prior to the start of the project, Dunn and McKenzie Counties had just one station each, Mountrail County had three and Williams County had four. Click here to see a map of the station locations. Weather station data and high resolution photos can be found at wiseroadsnd.com. Additional information is also available from NDAWN. 

Featured shots this week are clockwise from upper left, Palermo 8N with late morning fog hanging in the low-lying areas with a well pad in the background, Grassy Butte with a gorgeous sunset, Carson, (although not a Wise Roads station), sporting a sprawling field of sunflowers, and Colgan, with some freshly baled hay and a foggy background. Click the link for a high resolution photo of each site.