The Southwest Power Pool board of directors voted this week to increase SPP’s Planning Reserve Margin requirement from 12 percent to 15 percent, effective July 1, 2023.

The SPP board’s vote came a day after a unanimous 12-0 vote from SPP’s Regional State Committee (RSC) to increase the region’s reserve requirement for electric generating capacity. The action follows a study that showed the SPP region needed to increase the requirement to ensure SPP has enough generating facilities to keep the lights on in the future.

ND Public Service Commissioner Randy Christmann, who is president of the RSC, said the decision was months in the making. Christmann, a former legislator who spoke to the interim Energy Development and Transmission Committee this week, said requiring SPP member utilities to secure additional firm generating capacity was necessary because the grid is increasingly on the edge of running short of electricity.

Click here to listen to Christmann's comments.

Christmann said the requirement means that utilities will have to have 15 percent more generating capacity than they anticipate they will need on days when electric demand is at its peak. The additional reserves are necessary because availability of generation resources at any given time is never a certainty. Ultimately, the decision made by SPP’s board and the RSC is expected to reduce the risk of experiencing power blackouts to a level deemed acceptable by industry standards.

Basin Electric Power Cooperative is a member of SPP, which means its member cooperatives in western North Dakota are largely dependent on the SPP grid for their electric supply.

Click here for more information about the Southwest Power Pool.

The board of directors of the Midcontinent Independent System Operator (MISO) unanimously approved a significant batch of long-range transmission projects.

The $10.3 billion investment includes 18 transmission projects in MISO’s Midwest Subregion. The Tranche 1 portfolio is the first of four planned tranches in MISO’s long-range transmission planning process. The projects are needed to begin to integrate new generation resources outlined in MISO member and states' plans, and increase resiliency in the face of severe weather events.

“We appreciate the spirit of collaboration and the hard work that MISO members and stakeholders have invested in these projects and look forward to continued discussion around future tranches,” said MISO CEO John Bear. “We also recognize the effort and strong support for planning from regulators and policymakers in the states.”

Analyses conducted as part of the transmission planning initiative indicate the Tranche 1 benefits exceed their costs. Benefits include congestion and fuel savings, avoided capital costs of local resource investment, avoided transmission investment, resource adequacy savings, avoided risk of load shed and decarbonization.

While additional transmission capacity will be helpful, North Dakota officials believe MISO must also address impending shortfalls in generating capacity. In testimony earlier this month before the US Senate Energy Committee, ND Public Service Commission Chair Julie Fedorchak said planned shutdowns of coal-fired power plants will require new baseload capacity to replace them.

"There is a big gap in the megawatts being retired and megawatts being added," Fedorchak said. "Thirty-five percent (about 20 gigawatts) of MISO’s coal fleet will retire within the next 5 years ... yet new generation in the MISO queue includes just 3.8 gigawatts of natural gas units to potentially replace this firm capacity."

Click here to read Fedorchak's Senate testimony.

Members of the ND Legislature's interim Energy Development and Transmission Committee heard concerns this week from three state treasurers about the negative effects the ESG Movement is having on their state's economy.

ND Treasurer Thomas Beadle and treasurers from West Virginia and Utah said the policies advocated by ESG, which stands for Environmental, Social and Governance, have been "weaponized" to drive an anti-fossil fuel political agenda. 

Click here to listen to Beadle's comments.

Beadle told legislators that Standard and Poor's has assigned each state and ESG score, giving North Dakota a neutral rating for Social and Governance, but "moderately negative" for Environmental.

Click here to listen to Beadle's comments.

Beadle noted the legislature's passage of SB 2291 in the last legislative session, which prohibits the State Investment Board from making social investments based on ESG criteria, unless the SIB can show those investments earn equal or better returns than non-social investments.

Utah Treasurer Marlo Oaks told committee members he believes ESG principles subvert the Constitution by pushing political policies through financial markets.

Click here to listen to Oaks' comments.

Oaks said ESG subverts the legislative process by attempting to drive the anti-fossil fuel agenda by discouraging investments in oil, gas and coal, allowing large investment firms outsized control over the economy.

Click here to listen to Oaks' comments.

The 2021 ND Legislature directed the Commerce Department to study ESG investment policies, and well as its potential implications for the state regarding the boycott of energy or production agriculture commodities.

ND Senator Kevin Cramer and Senator James Lankford (R-OK), joined by ND Senator John Hoeven, introduced the Transparency and Honesty in Energy Regulations Act of 2022.

The bill prohibits the federal government from using the social cost of carbon, social cost of methane, social cost of nitrous oxide, or the social cost of any other greenhouse gas metrics in the justification of regulations.

“The social cost of carbon is an arbitrary and inconsistent metric,” said Cramer. “It is being used to justify the Biden Administration’s radical climate agenda ... and has become a silver bullet for fringe environmentalist groups and their friends in the administration seeking to stop energy development projects and implement overbearing regulations.

“American energy production is being stifled due to the Biden administration using biased estimates to justify burdensome regulations,” said Hoeven. “Our legislation would help ensure that energy and environmental regulations are based on factual scientific standards rather than the social cost of carbon, a subjective metric which lacks oversight and transparency and is used to hide the true economic costs of a regulation.”

The senators argue that the social costs of greenhouse gases are theoretical and unscientific metrics used to put a price or economic impact on emissions. The Transparency and Honesty in Energy Regulations Act would prohibit the Environmental Protection Agency, the Department of Energy, the Interior Department, the Council on Environmental Quality, the Federal Energy Regulatory Commission, the Department of the Treasury, the US Department of Agriculture, the Department of Commerce, and the Department of Health and Human Services from using the social cost of carbon, social cost of methane, and social cost of nitrous oxide as rationales for their regulations. View the full bill here.

Federal legislation being advanced by Senate Democrats would include a significant expansion of support for deployment of technologies aimed at capturing and storing carbon dioxide emissions.

Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) announced an agreement this week on a bill they are calling the Inflation Reduction Act of 2022. It includes $369 billion in climate and energy spending proposals.

Under the bill’s provisions, any CO2 capture, direct air capture or CO2 utilization project beginning construction before January 1, 2033 will qualify for the federal 45Q tax credit. A key change is that project developers will have the option to access direct pay for the full value of the tax credit for the first five years of a project once the CO2 capture equipment has been placed in service. It also includes the option for direct pay fully phasing out for the remaining seven years of the credit.

Most importantly, electric cooperatives and municipal utilities would have the option of direct pay for the full 12 years of the lifetime of the credit. The legislation also increases the value of the credit to $85/ton for power plants that capture their CO2 emissions and store them in underground geologic formations, and increases to $60 per ton the tax credit for CO2 that is used in enhanced oil recovery projects. The amounts are currently at $50/ton and $35/ton respectively.

The direct-pay provisions could boost the chances for development of Project Tundra, a proposal by Minnkota Power Cooperative to capture and store CO2 emissions from Milton R. Young Station near Center. Under current federal law, the non-profit cooperative must partner with other for-profit financial firms to capture the value of the tax credits.

The Senate is expected to vote on the legislation next week, but due to the sizable tax increases it includes, its passage is uncertain.

Gov. Doug Burgum announced this week that the Cavalier County Job Development Authority (CCJDA) has executed binding agreements for international data center developer Bitzero Blockchain Inc. to acquire and redevelop the historic Stanley R. Mickelsen Safeguard Complex at Nekoma, ND, commonly known as “The Pyramid.”

Bitzero plans to develop the abandoned Cold War-era military installation into a highly secure data center for high-performance computing and data processing. Waste heat captured from the data center’s servers will be used to heat an on-site greenhouse, and the company is also planning an interpretive center and additional community engagement at the site, representing a total expected investment estimated by Bitzero at $500 million. 

Bitzero’s bid for the site was delivered with a comprehensive Zero Carbon Displacement (ZCD) energy strategy, meaning the facility’s carbon footprint will be offset with use of renewable energy sources. Additionally, the company said the resulting job creation – the site is expected to employ 35 to 50 people when operational – and economic benefit to the county and state will be testament to the State of North Dakota’s leadership in energy transition and carbon emissions reductions strategies. The CCJDA Board of Directors voted unanimously on July 18 to accept Bitzero’s bid after a presentation from Bitzero CEO Akbar Shamji. 

“The history of this site and the integrity of the community and leadership we have met here in Cavalier County are a marvel,” Shamji said. “The Pyramid when correctly understood is a monument to peace. The extraordinary capacity of the site in its first incarnation was a direct catalyst to the peace treaties of 1975 and the end of the Cold War. In its new incarnation the site will reappear again as a beacon for change in the now biggest challenge we face as society, climate change.”

Shamji and Bitzero strategic investor Kevin O’Leary announced in June that the company had selected North Dakota for its headquarters and hub for all North American operations, with plans to build 200 megawatts of data centers in the next two to three years, as well as a graphene battery assembly and distribution hub.

“This is fantastic news for Cavalier County and our entire state, putting this iconic pyramid on the prairie to innovative use and further solidifying North Dakota’s status as a global hub for data center development,” said Gov. Burgum. “We are deeply grateful for Bitzero’s significant investment in our state and for the tireless efforts of the North Dakota Department of Commerce and Cavalier County Job Development Authority to secure a viable tenant and seize the potential of this historic structure. This important piece of history will be restored and become a beacon for North Dakota innovation to the rest of the world.”

The investment manager for the ND Department of Trust Lands has accepted a similar position with the State of New Mexico.

Michael Shackelford, who joined the Land Department three years ago, told Land Board members this week the move will put him closer to family in the El Paso area.

"I grew up mostly in El Paso, and I've got family throughout West Texas and New Mexico," Shackelford said. "My wife has several cousins that she grew up with in Denver, so a lot of family out there."

Shackelford told Land Board members that "it's been a great three years," and said he appreciates how the staff and people of North Dakota made is family very welcome. He joked that his 14-year-old son doesn't want to leave.

"So you're saying we have a chance?" quipped Governor Doug Burgum, who chairs the Land Board.

"You have a chance with him," Shackelford replied. "He's thinking about coming back up here, he's thinking about (attending) North Dakota State." 

The New Mexico State Land Office is considerably bigger than North Dakota's Land Department. New Mexico manages 9 million surface acres and 13 million mineral acres, compared to North Dakota's 706,600 surface acres and 2.6 million mineral acres. Trust funds managed by New Mexico's investment office total $17 billion, compared to North Dakota's Common School's Trust fund which has a current balance of about $6 billion. 

The North Dakota fund provided more than $366 million in earnings to support K-12 education in the 2019-21 biennium. That amounts to about $1,600 per student.

Bryan Klipfel, the director of North Dakota Workforce Safety and Insurance (WSI), will retire at the end of the year after more than four decades of public service in the state.

Upon announcing Klipfel's retirement, Governor Doug Burgum thanked him for his more than 13 years of leadership of the agency and nearly 46 years of service to the State of North Dakota.

Klipfel began his career in 1977 as a North Dakota Highway Patrol trooper in Rolla and Minot. He served as a district sergeant and commander in Williston and in 1992 was assigned as training director at the Law Enforcement Training Academy in Bismarck. He was appointed superintendent of the Highway Patrol in 2003 by then-Gov. John Hoeven and reappointed, serving in the role until his retirement from law enforcement in 2007. Klipfel was appointed director of WSI by Hoeven in 2009 and reappointed in 2010 by then-Gov. Jack Dalrymple and in 2016 by Burgum.

“During his more than four decades of service to the state, Bryan Klipfel has improved the lives of citizens and team members alike by developing strategy that focuses on customers,” Burgum said. “From working to make our state safer through increased visibility and collaboration with other law enforcement, to providing relief to workers during the pandemic by handling 14 years of unemployment insurance claims in 14 months, to providing a safe, secure and healthy workplace, Bryan has been a champion for the well-being and safety for all, helping to ensure that North Dakota continues to be a great place to live and work.”

“I’ve been blessed with a wonderful personal and professional family, and the decision to retire was not an easy one, but it’s time to spend more time with family,” Klipfel said. “It has been an incredible privilege serving the citizens of North Dakota for the past 46 years.”

Workforce Safety and Insurance is an exclusive, employer-financed, no-fault insurance state fund covering workplace injuries and deaths. As the sole provider and administrator of the workers’ compensation system in North Dakota, WSI’s vision is a safe, secure, and healthy North Dakota workplace. The director’s position will be posted immediately.  

The ND Department of Human Services and the ND Department of Commerce together are offering a cooling assistance program that can help qualifying lower-income households beat the heat. 

Operated in cooperation with Community Action Partnership of North Dakota (CAPND) offices, the cooling assistance program can help eligible households with the cost of purchasing and repairing air conditioners and other cooling devices. To participate, households must qualify financially for the Low Income Home Energy Assistance Program (LIHEAP), which serves households with incomes up to 60% of the state median income. 

Qualifying income varies by household size. A two-person household can earn up to $42,467 and qualify. Click here for additional program details.

Households that participated in LIHEAP this past heating season can contact their local CAPND agency directly if interested. They will need to provide their LIHEAP approval letter.  Other households will need to apply and be approved for LIHEAP first, before contacting their local CAPND agency for cooling assistance help.  To apply for LIHEAP, click here, contact a local human service zone office, or call 800-823-2417 for help completing and submitting a LIHEAP application.

LIHEAP is a federally funded program that primarily helps qualifying households with home heating costs. Funding for the cooling assistance program was approved by Congress as part of COVID-19 pandemic relief legislation. During the 2021-22 heating season, the program served 14,229 households statewide. In 2021, the cooling assistance program helped 426 qualifying North Dakota households. 

State School Superintendent Kirsten Baesler this week named her new Student Cabinet, a 25-member group that will advise her about ways to strengthen North Dakota’s K-12 education system.

The cabinet includes students ranging from the fourth to the 12th grades, representing large and small schools in all corners of North Dakota. Eight of the 25 members have served on previous cabinets. It is the fifth cabinet in the history of the program, and the largest since Baesler began the initiative in 2015.

The members will serve for 22 months, beginning August 1, and ending in June 2024. The group will meet with Baesler every three months at the North Dakota Capitol. Its first meeting is scheduled for Aug. 16.

“Since the Superintendent’s Student Cabinet program began, its members have provided me a great deal of valuable advice and opinions, and helped to shape public education policy,” Baesler said. “They have helped build my understanding of what our students need, and to learn what is going well in our schools and what can be improved.”

Western North Dakota students on the cabinet include:

• Bianca Sagness, 4th Grade, Kenmare Elementary School
• Landon Pitner, 5th Grade, South Prairie Elementary, Minot
• Carley Bullinger, 7th Grade, Trinity Junior High, Dickinson
• Grace Arthaud, 9th Grade, South Heart High School
• Karady Evans, 9th Grade, Scranton High School
• Olivia Gartner, 9th Grade, Hazen High School

“Aside from being able to influence public policy in North Dakota, students who serve in the cabinet also have an opportunity to develop their skills in leadership, public speaking, decision-making and team building,” Baesler said. “They have a chance to become our next generation of leaders.” 

Click here to see the list of all the students.

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.

The North Dakota Petroleum Council is seeking nominations for its 2022 NDPC Membership Awards, to be presented at the NDPC Annual Meeting scheduled for September 20-22 in Watford City.

Individuals may apply on their own behalf or nominate another company or program. Awards will be presented in the following categories:

The Excellence in Safety Award recognizes a company or individual that has gone above and beyond to create a culture of safety in the workplace through policies, new technologies, products, advanced training, or other initiatives. NDPC member companies that have shown measurable results in safety through a new initiative or long-term, sustainable program are eligible to apply.

The Community Engagement Award celebrates the spirit of community in the Bakken. This award will recognize an NDPC member company or individual who embodies this spirit by working to build better relationships through company culture, programs, events, or other initiatives that bring industry and stakeholders together. To be eligible, this company or individual must display a commitment to investing in the community through education about the industry, community service, or coordinated events or activities aimed at community outreach.

The Environmental Stewardship Award recognizes an NDPC member company that demonstrates a commitment to cleaner, more efficient operations or that helped improve habitat, grasslands, waterways, parks or through other conservation efforts. Companies that can provide measurable results of long-term, sustainable culture or specific initiatives or programs that show a commitment to environmental stewardship are eligible to apply.

Nominees must be NDPC members or employees of member companies. Nominations are due by August 19.

Click here to download the nomination form.

Thunderstorms are not only capable of producing wind, rain and hail, they can also be quite colorful as shown in the Shots of the Week. Cameras on WDEA Wise Roads weather stations captured some of nature's vibrant colors this week.

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, Bowman 4W, with sunlight glinting off shafts of distant rainfall, Poker Jim, sporting a double rainbow, Grassy Butte with a distant rainbow on the edge of a thunderstorm, and Battleview with the setting sun glowing through some heavy cumulus clouds. Click the link for a high resolution photo of each site.