North Dakota's lignite industry lost the services of two of its most ardent political supporters in Tuesday's primary, with the defeat of incumbent Beulah Senator Jessica Bell and Bismarck Rep. Dave Nehring.

Bell lost in the District 33 primary to political newcomer Keith Boehm, while Nehring lost his bid for the GOP Senate nomination in District 8 to Rep. Jeff Magrum from Hazelton. Both Nehring and Magrum opted to run for the Senate in the newly redrawn district. The seat was previously held by Sen. Howard Anderson of Turtle Lake, but Anderson's residence became part of District 6 in the redistricting process.

Bell was prime sponsor of six coal-related bills during the 2021 legislative session, five of which were signed into law. The only bill that didn't pass, SB 2239, was withdrawn by Bell. It would have prescribed the manner in which the DEQ could craft carbon dioxide regulations if it was required to do so by the federal government.

Bell was also the lead Senate sponsor of two coal-related House bills, including HB 1412 that provided a temporary break from the coal conversion tax to the struggling lignite industry.

Nehring was prime sponsor of four coal-related bills and resolutions in 2021, two of which were signed into law. The other bills were withdrawn, but portions of their provisions were incorporated in other legislation that was approved.

Boehm, who does not have a Democrat opponent in November, recently retired after 42 years working for Minnkota Power Cooperative in Center. He also runs a family farm with his children, and has more than 25 years experience as a part-owner and financial manager of the Flying J Travel Center west of Mandan.

Magrum, who also is unopposed in November, is a self-employed rancher, licensed master plumber and small business owner. He has previously served as mayor and as a county commissioner.

Political newcomer Anna Novak, one of the organizers of the Facebook group, Faces of North Dakota Coal, was the top vote-getter in the five-way, District 33 GOP primary for two seats in the ND House of Representatives. 

Incumbent GOP Rep. Bill Tveit also won a GOP House nomination, finishing second in the balloting, but incumbent Rep. Jeff Delzer lost his bid for re-election, finishing third in the primary. Delzer was also defeated in the 2020 legislative primary, but was reappointed by the district following the death of David Andal, who was a top vote-getter in the primary, but died of COVID-19 before the November election.

The fourth place finisher in the District 33 race was Mark Pierce, founder of the Faces of ND Coal group, who garnered just five fewer votes than Delzer.  Finishing a distant fifth was Morton County Commissioner Andy Zachmeier.

Novak and Tveit do not have Democrat opponents in November, so unless an independent candidate emerges prior to the September 6 filing deadline, both will win seats in the House of Representatives.

Novak is a registered sales assistant with Choice Wealth in Beulah, and has a degree from the University of Mary in communications with a public relations emphasis. Her husband is employed in the coal industry. Novak testified several times in support of coal-related legislation during the 2021 session, and has participated in other events to promote the coal industry.

Tveit, a resident of Hazen, was first elected in 2018. He is an Army veteran and retired farm equipment owner/dealer.

The defeat of Delzer, who chaired the House Appropriations Committee, magnifies the leadership vacuum in the upcoming 2023 Legislature. Both House and Senate Majority Leaders Chet Pollert and Rich Wardner did not seek re-election, as did 18 other incumbent lawmakers.

Several longtime incumbent legislators lost their bid for re-election Tuesday which, when combined with decisions by other incumbents not to run, means the 2023 Legislature will have at least 32 new faces.

In addition to Bell and Nehring mentioned in the article above, one of the more surprising upsets was the defeat of Rep. Jim Schmidt in District 31. Schmidt, who played a prominent role on the powerful House Appropriations Committee, was defeated by newcomer Dawson Holle, who just this spring graduated from high school. Holle's family operates the Northern Lights Dairy farm in Morton County.

Devils Lake Senator Dave Oehlke, who was an influential member of the Senate Appropriations Committee, lost his re-election bid to Judy Estenson in District 15. Oehlke had served in the Senate since 2007. Estenson has worked as a registered nurse, as well as partnering with her husband in their farming and ranch operation. 

Two of the other incumbents who lost were pitted in races against other incumbents. Larimore Senator Robert Fors lost his bid for re-election in the newly-redrawn District 20 to Hillsboro Senator Randy Lemm. Lehr Senator Robert Erbele survived a challenge in District 28 from Gwinner Rep. Sebastian Ertelt, who opted to give up his House seat to run for the Senate.

Others who lost re-election bids included Cando Rep. Greg Westlind in District 15, Wahpeton Senator Jason Heitkamp who ran for a House seat in District 25, Democrat Rep. Tracy Boe in Sub-District 9a, and Hampden Rep. Chuck Damschen in Sub-District 9b.

More than three months ago the State Board for Career and Technical Education awarded $68.7 million in grants for 13 projects aimed at the development of regional career and tech ed facilities. However, the CTE board has yet to receive formal approval of its grant plan from the US Treasury Department.

The delay has caused grant recipients to postpone development plans, and soaring inflation is making the CTE projects more expensive with each passing day. The state submitted its plan on February 1, but State CTE Director Wayde Sick told members of the interim Education Funding Committee this week the plan has yet to be approved, and he doesn't know when or if that approval will come. Sick said he is confident the state has submitted an acceptable plan, but nothing is certain.

Click here to listen to Sick's comments.

The grant funding that has not been approved by the Treasury Department is part of the Coronavirus Capitol Projects Fund. The CTE board was also authorized by the ND Legislature to use $20 million for CTE projects from the state's allocation of funds from the American Recovery Plan Act (ARPA). That $20 million was awarded in an earlier grant round, divided equally among tech projects in Dickinson, Minot and Watford City, and is being put to use by those districts.

Sick said he recently spoke with a group of CTE administrators from several school districts, who have delayed work on projects because of the uncertainty, and because of that, the cost of their projects is going up.

Click here to listen to Sick's comments.

Sick said because of higher costs, school districts will not be able to deliver all that they indicated in their applications, so the CTE Board will likely ask the legislature for an inflationary adjustment to support completion of the CTE centers. Officials had hoped to see many of 13 facilities operational in 2023, but Sick says the delay means many will not be ready until 2024.

Click here to see Sick's slide presentation. Click here to see video of the Education Funding hearing.

Oil production fell to an average of just 900,000 barrels per day in April, all attributable to back-to-back blizzards that knocked out power to well pads. That's down more than 20 percent from March average daily production of 1.122 million bbl/day.

During his monthly Director's Cut news conference, Lynn Helms, director of the Department of Mineral Resources, said power outages took their toll on producers in the northwest portion of the state.

Click here to listen to Helms' comments. 

Helms said even though it was without power the longest, Divide County reported the smallest loss of production at about 4,000 barrels a day. McKenzie County led the pack with a 67,000 barrel-a-day loss, followed by Dunn County at 57,000 bbl/day, Williams County at 53,000 bbl/day and Mountrail County at 36,000 bbl/day.

Helms said because the storms caused such extensive damage to infrastructure, it took the industry more than a month to fully recover, so the loss of production will show up in the May numbers as well.

Click here to listen to Helms' comments.

Helms said the upside for producers is that prices are high, averaging just over $100/barrel in April. But he said that's bad news for consumers, and with no increase in crude supplies coming in the near future, prices are likely to remain high for quite some time.

Click here to listen to Helms' comments.

Helms said there are positive signs for production. He said the rig count has been hovering around 40 and is likely to go up a few this summer, but has been held back by the lack of available workers. There are currently 16 frack crews working in the state, so Helms said completion activity should keep pace with drilling.

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

Commerce Commissioner James Leiman announced his resignation this week effective June 30, but will continue working for Commerce on a part-time basis on economic development projects in the state.

Leiman has accepted a position as chief development officer with the Institute for Economics and Peace, a global think tank. In a Facebook post, he said the position offers him an opportunity to fulfill a lifelong ambition.

"I have been offered a chance to pursue my dream through implementing systems level peace building and development efforts to improve some of the world’s most violent and impoverished places," Leiman wrote. "The long-term peace and security that we have come to expect in the United States to fulfill life, liberty, and the pursuit of happiness should be enjoyed by all people ... I hope to contribute to humanity’s well-being, one project and region at a time."

Gov. Doug Burgum has appointed Deputy Commerce Commissioner Shawn Kessel to serve as interim commissioner until a replacement for Leiman can be appointed. Burgum appointed Leiman as commerce commissioner in March 2021. Prior to that, Leiman had served as the Department of Commerce’s director of Economic Development and Finance for three years.

“Over the last four years, James has made a tremendously positive impact on our state’s economy and business climate, bringing billions of dollars of projects into the pipeline for North Dakota,” Burgum said. “We are grateful that he will continue to help drive economic development in the Department of Commerce, and we wish him all the best as he transitions to his next endeavor.”

Gov. Doug Burgum today appointed entrepreneur Kevin Black of Minot to the North Dakota Board of Higher Education, and reappointed business consultant Danita Bye of Stanley to the board.

Black co-founded Creedence Energy Services, a business creating specialized chemical solutions to enhance performance and production of oil and gas wells. He previously worked in account management and sales for Baker Hughes in Minot and Champion Technologies in Williston. 

Black earned a bachelor’s degree in industrial engineering and management from North Dakota State University. He currently serves as vice chair of the Minot Area Chamber EDC and as a board member for the North Dakota Economic Development Foundation and the North Dakota Petroleum Council. He also serves on the North Dakota University Development Foundation Board of Trustees and the University of North Dakota Petroleum Engineering Industry Advisory Council.

“As a business leader, Kevin is well-suited to drive efficiency, strategy and innovation within our university system,” Burgum said. “His experience serving on various boards ... will bring a unique and strong perspective on how to transform higher education."

Bye, who was originally appointed to the board in 2020, has been a leadership and sales development consultant since 1997 for small- to medium-sized businesses in the science, technology, engineering, manufacturing and medical device industries. She previously worked as an investor and sales manager for Micro-Tech, a medical device manufacturer, and in sales and sales management for Xerox Corporation.

Black is being appointed to the seat previously held by Jill Louters, who resigned last month after accepting a position with the NDSU Extension Service. Both Bye’s and Black’s terms run through June 30, 2026, and are subject to confirmation by the North Dakota Senate. 

The Western Dakota Energy Association has authorized an update to an oil tax distribution study it initially released in 2019, and updated in 2021.

The cost of the research work to track state spending of oil tax revenue will be split with the ND Petroleum Council, as occurred with the two previous versions of the study. WDEA and NDPC will contract with AE2S Nexus and consultant Brent Bogar to perform the work.

The purpose of the tax study, according to Bogar, is to review extraction and gross production tax collections dating back to 2008, detail the various funds into which the tax receipts are deposited, and highlight how expenditures have delivered benefits throughout the state. Bogar said one important update to the latest spending report will be the inclusion of the state's use of Legacy Fund earnings.

Prior to the 2021 Legislature, Legacy earnings had provided a way to fill a budget gap. But in 2021, lawmakers approved a bonding bill, and will use Legacy earnings to repay the bonds. Bogar said Legacy earnings have gone into the state's Strategic Investment and Improvements Fund (SIIF), which is part of the state general fund so could become tough to trace, but he said the legislature provided instructions to keep track of Legacy outlays.

Click here to listen to Bogar's comments.

The most recent version of the study released during the 2021 legislative session showed the state had already collected about $22 billion in tax revenue since the start of the Bakken oil boom in 2008. Most of the money is deposited in various state funds, commonly referred to as "buckets." Thirty percent of all oil taxes go to the Legacy Fund. Other buckets include the Common Schools Trust Fund, the Resources Trust Fund, the Foundation Aid Stabilization Fund, the Property Tax Relief Fund, the Outdoor Heritage Fund and several others. Thanks to passage of Operation Prairie Dog in 2019, there are also infrastructure buckets for non-oil producing cities, counties and townships.

Click here to see the 2021 study. Click here to see flow charts from the State Treasurer that show how revenue is deposited in the various buckets.

Gov. Doug Burgum touted collaboration with North Dakota's five tribal governments during the fourth Strengthening Government to Government Partnerships and Relationships Conference held in Bismarck this week. 

Burgum highlighted progress between the state and tribal nations the last two years, but also noted there are challenges and opportunities to address in the upcoming legislative session and beyond.

“There are gaps that still exist, and we also understand that no two tribal nations are the same. Each has different needs, whether it’s transportation, employment, emergency services, law enforcement, health care, education, economic development, tax agreements, or fighting the scourge of drugs, everybody’s different," Burgum said. "But we’ve all got things in common … We’ve got abundant resources, we’ve got people who care. We can together tackle even the biggest challenges that might be in front of us.”

About 250 people registered for the two-day conference, which was first held in January 2018 and was last held in January 2020, just before the COVID-19 pandemic hit North Dakota. Burgum highlighted the progress made since the last conference, including:

• The North Dakota Highway Patrol entered an agreement with the MHA Nation to enhance emergency response on the Fort Berthold Reservation. The agreement, signed by Burgum and Fox, allows the closest available peace officer to respond to an emergency call for service until the agency with primary jurisdiction arrives and assumes the lead.
• The 2021 Legislature enacted legislation providing a framework for the state and MHA Nation to share tax revenue from oil wells that straddle the boundary of the Fort Berthold Reservation, settling an unresolved issue from the state’s historic 2019 tax agreement with MHA.
• The ND National Guard finished signing memorandums of agreement with all five tribal colleges in North Dakota to make the State Tuition Assistance program available to qualified student service members attending college.
• Burgum also signed legislation to allow North Dakota Information Technology to enter into agreements with tribes and other government entities to assist with cybersecurity incident response, and to allow the state Department of Transportation to enter into agreements with tribal governments to assist with federally-funded safety improvement projects on tribal-owned highways, streets, roads and bridges.
• The Highway Patrol created and implemented a five-member criminal interdiction team that focuses on drug and human trafficking and other criminal activity occurring on roadways in the state. The team is tasked with working closely with tribal law enforcement to intercept illegal substances destined for ND reservations.

Burgum said the Indian Affairs Commission office and other cabinet agencies have identified several issues to address during the 2023 legislative session including enhancing access to primary and emergency care; eliminating food deserts; reducing barriers to accessing capital; tribal gaming; expanding law enforcement, cybersecurity and tax-sharing agreements; and growing tribal tourism.

The Three Affiliated Tribes have issued notice that the primary election has been scheduled for September 6.

The Tribal Chairman's seat is on the ballot this year, as well as council seats in three of the Mandan, Hidatsa and Arikara Nation's six tribal segments. 

Mark Fox is the incumbent tribal chairman. Other office holders whose terms will expire are Parshall Lucky Mound Segment Representative Mervin Packineau, Four Bears Segment Representative V. Judy Brugh, and Twin Buttes Segment Representative Cory Spotted Bear. 

Polling places will be open at a dozen locations throughout the six tribal segments. Candidates may begin filing applications July 11, and they must be received no later than July 27. Top vote getters in the primary will advance to the General Election on November 8. 

Click here to see the tribal election notice.

The North Dakota Aeronautics Commission approved $8.5 million in state infrastructure grants to multiple public airports throughout North Dakota this week. 

The awards, generally in small amounts, went to 165 individual projects at 68 different public-use airports throughout the state. Among the larger grants was a $533,000 award to Minot to go toward drainage improvements and wildlife hazard mitigation. A separate $114,000 grant went to Minot for a runway rehabilitation study. Both are matching grants for larger awards from the Federal Aviation Administration.

Likewise, an $89,166 award to Dickinson provides matching funds from the FAA for a concept for a new terminal, as well as the purchase of snow removal equipment. Matching amounts awarded to smaller airports include a $108,500 grant to Beach for runway rehabilitation, $42,166 to Bowman for hangar construction, $179,850 to Crosby for runway lighting reconstruction, $30,042 to Stanley for runway rehabilitation, and $44,500 to Washburn for new taxiway construction.

Topping the list of grant awards for non-federal projects was an $825,000 grant to Killdeer for terminal building site work and construction. A $25,725 grant will go to Hazen to replace automated weather equipment at the airport, and Westhope will receive a $75,690 grant for airfield pavement rehabilitation.

$5 million of the grant allocations are made available through the Federal American Rescue Plan Act (ARPA).  The state legislature allocated the funds to the Aeronautics Commission during the 2021 special legislative session to help costs of maintaining and updating the state’s airport infrastructure.

The remainder of the grant allocations are from the Aeronautics Commission’s Special Fund, the primary revenue source of which is state tax collections on aviation fuel and aircraft sales. The grants are critical in maintaining the needed infrastructure to support the aviation industry, which is major contributor to the state’s overall economy and standard of living.

“The state of North Dakota fully understands the benefits of smart and efficient infrastructure as well as the economic impact and heightened standard of living that our airports provide to their communities.” said Kyle Wanner, Executive Director of the Aeronautics Commission. “These state airport grant allocations will help to leverage federal funding for high priority airport projects within North Dakota while at the same time ensuring that our statewide aviation system is being maintained.”

Click here to see the list of commercial airport grants, and here for general aviation grants.

Construction is scheduled to begin Monday, June 20, on Highway 12 near Marmarth, and on Highway 12 and Highway 8 in Adams County.

The project near Marmarth involves work on the Hwy 12 bridge over the Little Missouri River. It will include replacing the strip seal expansion joints on both ends of the bridge, small repairs of deck, pier, abutment, concrete crack seal and water penetration coating, and erosion repair work. A single lane closure will be in place across the bridge with a traffic signal to guide motorists. The project is expected to be complete mid-August.

The Highway 12 project in Adams County will include shoulder repair and milling and overlay from the Adams County line on the west edge of Reeder, to Hettinger. The Hwy 8 project will include an asphalt overlay from Hwy 12 near Hettinger to the South Dakota border. Lane closures are expected during both projects. Flaggers and pilot cars will help direct traffic through construction. Both projects are expected to be complete this summer.

The North Dakota Department of Transportation reminds motorists to slow down and use caution throughout the work zone. Click here for more information about construction projects and road conditions throughout North Dakota.

The Greater North Dakota Chamber has scheduled a business roundtable to discuss "Quality of Place" on June 22 at the Rough Rider Center in Watford City.

People many times choose their communities before selecting their employers, so quality of place can make a huge difference in workforce recruitment efforts. GNDC officials point out that citizens expect their communities to provide aspects of health and well-being, which creates the feeling of belonging and a sense of home.

Speakers at the event include Deb Nelson, owner of DLN Consulting in Dickinson, whose topic will be "Recruiting into a Rural Culture: Harmony or Conflict?" She will be followed by Dick Vande Bossche, VP of Operations for ONEOK, who will discuss the midstream company's growth. 

The GNDC Business Roundtable is open to those who are looking to explore aspects of quality of place components. Attendees who want to network with other business leaders or want to learn more about growing communities are invited to attend.

Click here for more information or to register. 

The weather stations that are part of WDEA's Wise Roads project are equipped with high definition cameras that capture exceptional photographs throughout western North Dakota, and this week turned up a hint of industrial activity including the paving of a former gravel road.

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, 43 new stations have been installed, 34 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. 

Sites in the photo collage are clockwise from upper left, Long Creek 5W with some scary-looking storm clouds over a well pad; Powers Lake 6SE showing a paving crew compact asphalt on the former gravel road; Four Bears 5NW with dense fog in the adjacent valley; and Sully Springs with a passing train moving wind turbine blades to an unknown destination.