September 25, 2020 -- Badlands Beauty

The North Dakota Industrial Commission approved revisions this week to the state's gas capture policy that don't change gas capture targets, but do tweak the regulations to encourage additional investment to allow the state to meet its gas capture goals.

Producers are currently required to capture 88% of produced natural gas, a target that will increase to 91% as of November 1. Thanks in part to the recent market downturn, producers are now capturing 92% of gas produced in the Bakken.

Lynn Helms, director of the Department of Mineral Resources, noted that producers also exceeded capture targets in the previous oil price downturn five years ago, but couldn't keep pace when growth resumed, so it's important to adjust the rules to make sure producers continue to meet capture targets.

Click here to listen to Helms' comments.

Helms said the changes, which include removing exemptions in some areas while tightening restrictions in others, are the byproduct of extensive dialogue with the industry. He said there is general agreement among all parties that revisions are appropriate.

Click here to listen to Helms' comments.

Helms said because dynamics of the industry are constantly changing, he expects the state will probably have to consider more tweaks to gas capture policy in the near future.

Click here to listen to Helms' comments.

Helms said he believes North Dakota's oil industry will be back in growth mode in 2022 and continue to grow for another decade, with natural gas production peaking around 5.3 billion cubic feet per day. That would be close to double the state's current production, which Helms said will require another $18 billion in investment to capture, process and transport the additional gas.

Click here to read Renée Jean's article about the gas capture policy decision in the Williston Herald.

A coalition of 18 Democratic state attorneys general submitted a court filing this week urging the DC District Court to shut down the Dakota Access Pipeline. But a coalition representing infrastructure interests said the Democrat AG's brief puts politics before the nation's energy security.

The Grow America's Infrastructure Now (GAIN) coalition accused the attorneys general of " prioritizing emotion, anti-pipeline rhetoric, and an ideological opposition to the use of fossil fuels rather than reality and fact." GAIN points out that the Army Corps of Engineers has reiterated in court filings that it followed standard operating procedures in reviewing and permitting DAPL, performing an environmental assessment as required by law that resulted in a “Finding of No Significant Impact.”

In a statement, Massachusetts Attorney General Maura Healey alleged that the “pipeline was rubber stamped by the Trump Administration without consideration of the concerns raised by the indigenous community.” GAIN said the statement completely disregards the multi-year, rigorous permitting and approval process – which included local, state, and federal regulatory agencies – and largely took place before President Trump was even elected. The filing also ignores the fact that Dakota Access has safely operated for more than three years, transporting up to 570,000 barrels of oil per day from North Dakota to southern Illinois before being distributed to consumer markets.

Also ignored were the financial consequences a shutdown would have on the state of North Dakota's taxpayers, royalty owners and its communities (see WDEA amicus brief). A recent study from the American Petroleum Institute said the economic ramifications of a DAPL shutdown would be significant and reach far beyond the oil and gas industry, leading to the loss of more than $900 million in state tax revenues and more than 7,000 jobs.

U.S. Senators Kevin Cramer and John Hoeven have signed on as co-sponsors to the “PTC Elimination Act,” legislation that would finally phase out the federal production tax credit (PTC) for wind energy production.

“The wind production tax credit is fundamentally unfair and has long outlived its expiration date,” said Senator Cramer. “Our bill helps level the energy market by forcing this disruptive tax credit to finally expire.”

“We reached a bipartisan consensus to phase out the wind PTC in 2015, recognizing that the technology has reached commercial-viability,” said Senator Hoeven. “This legislation ends the extension."

The PTC was supposed to be phased out an the end of 2019, but wind lobbying groups pushed through yet another extension, the twelfth since the tax credit was created in 1992. The bill's prime sponsor is Sen. James Lankford, R-OK. It specifies that any new projects would need to begin construction by the end of this year to qualify for the credit, and the extension for 2020 is the last one the credit will receive.

“This production tax credit was established to help the then-fledgling renewable energy industry" said Lankford. "Now, if you drive through my state and many others with countless wind turbines, you can see that the wind industry in particular is no longer a start-up, new energy source.”

North Dakota Senators John Hoeven and Kevin Cramer issued statements this week regarding President Donald Trump’s intent to nominate an Associate Justice for the Supreme Court following the death of Justice Ruth Bader Ginsburg.

“When a vacancy occurs on the Supreme Court in an election year and the Presidency and the Senate are controlled by the same party, the precedent has been for the President’s nominee to get a vote on confirmation," Hoeven said. "That is the case in this election year and we should go forward accordingly."

“In 2016, we had a different situation," Hoeven added. "We had divided government and the Presidency and the Senate were held by different parties. When a vacancy has occurred on the Supreme Court under that circumstance, the precedent since the 1880s has been to wait for the people to break the tie in the election."

Senator Cramer issued the following statement:

“I support whichever path forward gives us the best opportunity to confirm a conservative justice while retaining control of the White House and the Senate. Those are equally important priorities. The Republic and its institutions are now at stake, and I did not run for the Senate and put my family through a grueling campaign just to shrink from a moment like this. The President is set to fulfill his constitutional duty, and the Senate should do the same.”

Sources indicate President Trump intends to nominate conservative federal appeals court judge Amy Coney Barrett to fill the vacancy on the U.S. Supreme Court. Barrett, 48, was appointed by Trump to the Chicago-based 7th U.S. Circuit Court of Appeals in 2017.

Work is proceeding on multiple fronts on what would become the world's largest carbon dioxide capture and storage (CCS) project at Milton R. Young Station near Center, ND.

Officials of Minnkota Power Cooperative, which owns the coal-fired power plant, expect to have a clear picture of the project's feasibility and economics in the next six to nine months.

Minnkota Environmental Manager Dan Laudal is supervising working on Project Tundra, as the CCS project is known. Laudal, who was interviewed this week on the radio program Energy Matters, said work is proceeding in three areas. One focus is the front-end engineering and design work, or the FEED study for the project, figuring out how the CO2 capture process will work. He said another group is working on the geologic storage component, which contemplates storing the captured CO2 deep underground in a well currently being drilled at the power plant.

Click here to listen to Laudal's comments.

Laudal says a third focus is the financial aspect of the project. Because Minnkota is a non-profit cooperative, it must work with partners to capture the value of federal 45Q tax credits, which would pay out $50.00 for each ton of carbon dioxide that is captured and stored. Laudal said the tax credit should be adequate to cover the estimated $1.1 billion cost of the project.

Click here to listen to Laudal's comments.

Laudal says work on determining what's needed to meet permitting requirements for both the CO2 capture project and the geologic storage facility is also underway. He said the co-op expects to have a good understanding of all aspects of Project Tundra early next year, and if the project proceeds, Minnkota would hope to have all permits and financing in place in early 2022.

Click here and advance to the 15:50 mark to listen to the full Energy Matters interview with Laudal. Learn more about the science and progress of Project Tundra by visiting ProjectTundraND.com.

 

Online registration is now open for the annual meeting of the Western Dakota Energy Association. Due to the coronavirus pandemic's continuing threat to public health, WDEA has opted to host a virtual meeting to be conducted on the Zoom platform.

The association business meeting will include the nomination of two new WDEA board members. Current member Doug Nordby is not seeking re-election to the McKenzie County Commission, and board member Gary Wilz has retired as superintendent of the Killdeer School District. WDEA members will be asked on the registration form to designate whether they wish to participate in the city, county or education committee breakout sessions that will be part of the meeting, and indicate whether they will be a voting delegate for their jurisdiction.

Click here to register for the Thursday, Oct. 8 session. Click here to register for the Oct. 9 discussion.

 

The meeting agenda will focus primarily on the financial condition of state and local government, as well as the outlook for the 2021 North Dakota Legislature. Meeting participants will hear an update on tax collections and the state's revenue outlook from Tax Commissioner Ryan Rauschenberger. Education funding will also be a major topic at the meeting, with local perspectives from McKenzie County Supt. Steve Holen, and the legislative outlook from Senate Education Chairman Don Schaible from Mott.

 

Senate Majority Leader Rich Wardner will also participate in the virtual meeting, offering his expectations for the 2021 legislative session. John Weeda, director of the ND Transmission Authority, will offer remarks on the future of the lignite industry. The Day One program will conclude with DMR Director Lynn Helms' traditional county-by-county rundown of oil production, and his outlook for the coming year.

Day Two of the meeting will be devoted to topics related to transportation. Participants will hear updates on LoadPass enhancements and expansion plans, the Wise Roads project, and presentations from the Upper Great Plains Transportation Institute related to research, education and community outreach.

Click here to see the agenda.

A Virtual Public Input Meeting will be held October 1 to receive public input and comments on proposed improvement to Highway 83 from the junction of Highway 5 north through the City of Westhope.

The meeting is being facilitated by the North Dakota Department of Transportation (NDDOT) and Apex Engineering Group. It will be available on the NDDOT website under the Public Meetings tab. Visitors will be able to view a pre-recorded presentation and other materials on the site. It will not be a live event.

Written statements or comments about the project must be postmarked or emailed by October 16 to Derek Anderson, Apex Engineering Group, 600 South 2nd St - Suite 145, Bismarck, ND 58504. For any questions, help submitting comments, or to request hard copy materials, please contact Derek Anderson at 701-224-3108 or send him an email.

Two public servants from McKenzie County have been recognized with Excellence in County Government awards by the ND Association of Counties.

Former McKenzie County Commissioner Roger Chinn was recognized posthumously for induction into NDACo's Hall of Honor for his years of public service. Chinn, who died tragically this summer in an ATV accident, was involved in public service to the Grassy Butte community and McKenzie County, serving many organizations including the Grassy Butte Fire Department, Grassy Butte Scale, Grassy Butte Community Club, and McKenzie County Grazing Associations, in addition to his service as a McKenzie County Commissioner for seven terms. One of his biggest wins was securing a portion of mineral rights for the county from the federal government.

McKenzie County Truck Driver Rocky Norton received NDACo's Excellence in County Government award for this 35 years of dedicated service to the McKenzie County Road and Bridge Department. Norton was recognized for his "high quality of work, generosity of spirit, good nature, leadership and dedication." He is highly regarded throughout the community, always out clearing roads at the earliest hours to be sure buses don’t have to drive in dangerous conditions. Norton was also among the first to arrive on the scene of a tornado’s aftermath and start the cleanup and recovery.

Others recognized by NDACo included Morton County Commissioner Bruce Strinden, Cavalier County Recorder Vicki Kubat, and Joe Morrissette, Director of the ND Office of Management & Budget.

Owners of heavy trucks are being encouraged by the ND Department of Transportation to use online IRS Form 2290 to avoid penalties for late filing. The form is for the Heavy Vehicle Use Tax for the period of July 1, 2020 through June 30, 2021.

The NDDOT was recently informed by the IRS that the timeline for processing the forms has increased and could cause issues with meeting the filing deadline. The notice pertains to motor vehicle owners, operators and carriers of heavy vehicles registered at 55,000 lbs. or more per 23 USC 141(C) that prior to issuing or renewing vehicle registration may experience significant delays in the processing of the mailed in Form 2290.

In order to prevent delays in vehicle renewal that expires in December, operators can file Form 2290 online with the IRS here. Filing online results in nearly instant issuance of your IRS-stamped Schedule 1 Form 2290. IRS service centers in Bismarck, Fargo, Minot and Grand Forks may be available to assist with Form 2290 filing. Availability can be checked by calling 1-844-545-5640.

Those who've already submitted the Form 2290 renewal and payment to the IRS by mail but have not received their IRS-stamped Form 2290 can use the following documentation to process their renewal:

Taxpayers are responsible for any penalties or interest if the return is filed late.

The 2020 Annual Meeting of the North Dakota Petroleum Council is scheduled for Wednesday, October 7, from 10 a.m. to 12 p.m. The meeting will be a virtual event and is free to all ND Petroleum Council members, member companies and their employees.

The meeting will be hosted via Zoom. To review the meeting agenda click here. Participants must complete the RSVP by completing the form found here.

Kristi Reinke, a social studies teacher at Jim Hill Middle School in Minot, has been named the 2021 North Dakota Teacher of the Year.

Reinke was chosen from a group of four finalists for the annual honor presented by the state Department of Public Instruction.

“Every day, Mrs. Reinke’s goal is to do her best to create a sense of community, in her classroom, the hallways, with her colleagues, and within her district,” said DPI Superintendent Kirsten Baesler. “She believes it is important to lead by example and to set the foundation for positive relationships with everyone around her."

An eight-member selection committee interviewed the finalists and chose Reinke as the 2021 Teacher of the Year. She succeeds another Minot teacher, Sara Medalen, who is a reading and math interventionist at Sunnyside Elementary School in Minot. Reinke thanked her family, colleagues, and students during the awards ceremony.

“I am thankful to my colleagues at Minot Public Schools, and especially to my co-workers at Jim Hill Middle School. And I mean everybody,” she said. “I hear you and I see you. You inspire me every single day and push me to be a better teacher."

Reinke is now a candidate for the national Teacher of the Year award, which is named by the Council of Chief State School Officers in Washington, D.C. The organization typically names four finalists in January and the national Teacher of the Year honoree in the spring.

Click here to see a DPI news release about the Teacher of the Year recognition.

Source: What's Wrong with Wind and Solar -- PragerU

September 30 

ND Petroleum Council Annual Meeting