The ND EmPower Commission plans to hold a public hearing in the near future to discuss the initial grants and loans awarded by the state's new Clean Sustainable Energy Authority, with an eye toward the future of efforts to promote low-emission technology in North Dakota.

The Commission, which serves as the state's energy policy advisory group, discussed responsibilities which it was assigned by HB 1452, the legislation that established the CSEA (pronounced see-see). Among them is a requirement that EmPower hold at least two public hearings per biennium to "receive testimony regarding issues pertinent to the state's comprehensive energy policy and low-emission technology initiative."

The conversation among EmPower members, who represent all facets of energy production in the state, included the appropriateness of providing assistance to energy projects in one sector that could displace jobs in another. Dialogue was initiated by David Straley, Manager of Government and Public Affairs for North American Coal, who referred to a December letter from the Coal Conversion Counties Association to Governor Doug Burgum (see article in December 10 WDEA newsletter). The letter questioned the appropriateness of state support for Bakken Energy's proposal to purchase the Great Plains Synfuels plant to produce hydrogen. Straley said coal communities have concerns about the impact of the project on the local economy.

Click here to listen to Straley's comments.

Lt. Governor Brent Sanford, who chairs the Empower Commission, said it is important there is broad public support for the projects that are funded by CSEA grants or loans, or the authority may not receive additional funding from the ND Legislature. Sanford said the hydrogen project will undoubtedly be a topic of conversation for the 2023 Legislature.

Click here to listen to Sanford's comments. 

EmPower member Danette Welsh, Government Relations Manager for ONEOK, said it's important that the commission answer questions about providing financial support to entities that compete with the state's existing energy producers. Welsh said EmPower should provide policy guidance for CSEA and the technical committee that review grant and loan applications.

Click here to listen to Welsh's comments.

No date has been set for the public hearing, but it could coincide with EmPower's next quarterly meeting set for May 11.

An agreement between Bakken Energy and MHA Nation was announced this week, committing the tribe to supply natural gas to the Great Plains Hydrogen Hub proposed for development near Beulah. 

The hydrogen hub would be located at the Great Plains Synfuels plant, which Bakken Energy is planning to purchase from Basin Electric. The plant is to be renovated and connected by pipeline to a network that its partner, Mitsubishi Power Americas, is developing. The operation would extract hydrogen from natural gas, and capture and store the carbon dioxide that is a byproduct of the process.

MHA Nation Chairman Mark Fox said the tribe is excited to become part of a development that will decarbonize natural gas and help the world meet carbon neutral goals by 2030.

“Natural gas from the Fort Berthold Indian Reservation will enable the clean energy we need to save our planet, and, in the process, will allow us to put in place the infrastructure needed to end the excessive flaring of natural gas on our lands, improving the quality of life of our members,” Fox said.

The proposed hydrogen hub is one of several projects recently awarded funding through the Clean Sustainable Energy Authority. The project will receive a $10 million grant out of $20 million appropriated for hydrogen research during the special legislative session, with a condition that it be matched 1:1 with private funding. The authority also approved an $80 million loan that will be split in half with the first $40 million contingent on consummation of Basin's sale of the synfuels plant to Bakken Energy.

Click here to read more in the Williston Herald.

Members of the North Dakota EmPower Commission heard recommendations from a consultant this week aimed at improving the attractiveness of the state to investors that consider ESG criteria when making investment decisions.

The ESG Movement (Environmental, Social and Corporate Governance) promotes "sustainable" business practices, which in many cases discourage investment in traditional agriculture and the fossil fuel industry. EmPower members heard a presentation by IHS Markit, which was commissioned by the state Commerce Department to develop recommendations in response to "socially conscious" investors who increasingly shun investments in fossil fuels and agricultural (see March 5, 2021 WDEA article).

The IHS team, which presented a list of 11 recommendations, said they conducted interviews with industry stakeholders and the financial community to identify existing barriers to investment and find ways to improve the visibility of ESG-compliant opportunities in the state. Tom Scott, one of three individuals who made the presentation, said both the agriculture and energy industry need to figure out the best way to communicate positive environmental attributes of the state.

Click here to listen to Scott's comments.

Scott said developing a response to the ESG Movement begins with a good communication plan that demonstrates industry coordination and the multiple benefits that investments in the state have to offer. He said the state should promote recent efforts to reduce flaring of natural gas, its attractiveness to developers of data centers and ongoing efforts to reduce carbon dioxide emissions. Many of those attributes are found among emerging businesses that could be funded by the state's Clean Sustainable Energy Authority. 

IHS also emphasized the importance of additional state outreach to engage local communities and tribal governments in economic development efforts. The presenters also stressed not only the need to attract investment in new industries, but to ensure efforts are made to preserve existing ag and energy industries.

Click here to read an article in the August 13, 2021 WDEA newsletter about an ESG panel discussion at the ND Chamber's Policy Summit. Government and energy sector leaders who participated in the discussion said the state needs to do a better job explaining the benefits energy companies deliver and their efforts to protect the environment. 

A new white paper produced for the Texas Public Policy Foundation suggests the greatest threat to capitalism today is not government excess, but rather an emerging "energy discrimination" movement.

The white paper produced for Life:Powered, the outreach arm of the foundation, explains that the ESG Movement that is growing increasingly popular in financial circles, won't help the environment but will threaten human lives. The document notes that it's important to protect economic freedom that allows individuals to invest their personal capital not just to generate a financial return, but to reflect their environmental or societal concerns and beliefs, or scorn investment in enterprises that don't reflect their values.

The paper's author Bud Brigham points out however, that energy discrimination becomes a problem for individuals who assume that their retirement funds are being managed with their best interests, not political whims, in mind.

"That is the problem with these campaigns to bully businesses into divesting from fossil fuels," Brigham writes. "They go much farther than encouraging individuals to invest in environmental issues. These movements are working to change these companies ... at the expense of the shareholders who rely on their manager's dedication to their fiduciary obligations. It's a co-opting of ownership and control, deeply penetrating and affecting the behavior of corporations and pension funds that are investing and risking other people’s money."  

The paper notes that fossil fuels are responsible for roughly 80 percent of the world's energy use, and discouraging investment in the United States poses a threat to national security.

"The consequences of forcing American energy companies to surrender to their foreign competitors with lax environmental and labor standards, not to mention unstable and even hostile governments, would be disastrous," Brigham says. "The world will still need oil, gas, and coal; American producers going under would only give foreign competitors license to pollute and drive up prices."

The paper concludes by characterizing the energy discrimination movement as "a cancerous threat to politicize the engine of our prosperity, poised to undo decades of progress."

Click here to read or download the white paper.

Gov. Doug Burgum appointed former U.S. attorney and lieutenant governor Drew Wrigley to serve out the remainder of Attorney General Wayne Stenehjem’s term this week.

Stenehjem passed away unexpectedly on January 28. Wrigley took the oath of office in a ceremony Wednesday at the Capitol.

Wrigley served as North Dakota’s U.S. attorney from 2001 to 2009, and again from 2019 to 2021. He served as lieutenant governor for six years under former Gov. Jack Dalrymple, having been appointed to the role in 2010 and winning election to a four-year term with Dalrymple in 2012. Wrigley is the only announced candidate for the office which will be on the ballot in November.

“Having twice served as North Dakota’s chief federal law enforcement officer leading the U.S. attorney’s offices in Bismarck and Fargo, and six years as lieutenant governor, Drew Wrigley brings highly relevant state and federal experience to the role of North Dakota Attorney General," Burgum said. "He has a deep knowledge of the law, extensive background in public safety and broad experience with the intersections of local, state and federal law enforcement. His knowledge of the federal government is especially valuable at this time, with federal overreach a frequent threat to states’ rights."

Wrigley was born in Bismarck and grew up in Fargo. He earned bachelor’s degrees in economics and philosophy from the University of North Dakota in 1988 and his law degree from American University’s Washington College of Law in 1991. He completed a year-long judicial clerkship in Delaware and served for five years as an assistant district attorney in Philadelphia, prosecuting a variety of crimes. After moving back to Bismarck in 1998, Wrigley served as deputy chief of staff for then-Gov. John Hoeven in 2000-2001. Most recently, he worked as counsel with his family’s Fargo contracting firms, Wrigley Mechanical Inc. and BDT Mechanical LLC.

“I am deeply humbled by the faith that Governor Burgum has placed in me, and I pledge to work tirelessly on behalf of the citizens of North Dakota,” Wrigley said. “During my service, I will always be mindful of the outstanding work of my friend Wayne Stenehjem, and I will keep his memory near as we all navigate the path ahead.”

Gov. Doug Burgum today appointed Sheri Haugen-Hoffart, who chairs the board of Capital Electric Cooperative, to an open seat on the ND Public Service Commission.

Haugen-Hoffart has served as a human resource officer in the ND Office of State Tax Commissioner since 2017. Her career has included previous roles as deputy state treasurer, director of education in the North Dakota Securities Department, coordinator for UND's Division of Continuing Education and emergency service director for the Burleigh-Morton Chapter of the American Red Cross. She replaces Brian Kroshus, who was appointed state Tax Commissioner last month.

Haugen-Hoffart was elected to the board of directors for Capital Electric Cooperative in 2010 and has chaired the board since 2020. The Bismarck-based co-op serves more than 18,000 member-owners and provides electrical services to more than 21,000 meters. She previously chaired the board of Central Power Electric Cooperative, a wholesale power supply and transmission cooperative whose six member co-ops include Capital Electric, and currently serves as the board’s secretary/treasurer.

“Sheri Haugen-Hoffart brings an extensive background in public service and more than a decade of experience overseeing utilities and looking out for the best interests of customers, making her well-suited to serve on the North Dakota Public Service Commission,” Burgum said. 

Haugen-Hoffart is a native of Rugby, earned a bachelor’s degree from UND in 1988 and a master’s degree in management from the University of Mary in Bismarck in 1996. 
She will fill the PSC seat vacated by Kroshus, who was re-elected to a six-year term on the PSC in 2020. The November 2022 election will determine who serves the remaining four years of the six-year PSC term, which expires December 31, 2026.

The PSC has varying degrees of statutory authority over electric and gas utilities, telecommunications companies, energy plant and transmission siting, railroads, auctioneers, weight and measuring devices, pipeline safety, coal mine reclamation and abandoned mines. The agency has 43 full-time employees and a budget of $19.9 million for the 2021-2023 biennium.

The ND Board of University and School Lands has scheduled a special meeting next week to interview a finalist to serve as the state's next land commissioner based on the recommendation of a search committee. 

The committee planned to interview the candidates this week and make its recommendation to the Land Board, which will interview the individual who is recommended at a meeting on February 17. The person chosen will replaced Jodi Smith, who has served in the position since 2017, but announced her resignation last fall. Smith accepted a job as manager of the group promoting the Fargo flood diversion project, but has continued to serve while the search process was underway.

The three finalists are:

• Joe Heringer, senior wealth manager at Bravera Wealth in Bismarck
• Kenneth Junkert, who recently retired as director of the ND Ag Department's Administrative Services Divsion
• Thomas Monaco, CEO of New York's Pearl Street Advisors,.

The individual chosen will fill the balance of Smith's unexpired four-year term. The Land Department is responsible for the management and stewardship of educational trust funds, and oversees mineral acres and other assets for the benefit of public schools and other institutions in North Dakota. The department also operates the state’s Unclaimed Property Division and the Energy Infrastructure and Impact Office.

By far the largest of the funds it manages is the Common Schools Trust Fund, which receives 20 percent of oil extraction taxes. According to the state treasurer's website, the balance of the fund as of October 31 was just under $5.9 billion. Click here to see a list of all the trusts managed by the department.

Bismarck Representative Rick Becker announced his intention this week to seek the Republican nomination for the U.S. Senate, challenging longtime incumbent John Hoeven.

In a campaign video posted on Facebook, Becker didn't mention Hoeven by name, but said his political philosophy makes him the better candidate.

"The media and political establishment call me ultra conservative or far right, because all Republicans use the word conservative when they campaign," Becker said. "But very few are consistent and principled once elected, and that's what sets me apart. I represent the exact opposite of a career politician."

Senator Hoeven's campaign released a statement in response to Becker's announcement. 

“We have always expected that there would be challengers in this race as we have had in our previous runs for office. We will continue to focus on doing the things that best serve North Dakota and our country. Whether it is cutting taxes, pushing back on federal overreach, working to secure our southern border, supporting our Second Amendment rights and pro-life legislation, as well as unwavering support for our military, Senator Hoeven has a strong record of accomplishment during his time in the Senate.”

Becker cited his record of accomplishment in the state legislature where he's served in the House since being elected in 2012.

"I have many personal legislative successes including constitutional carry, civil asset forfeiture reform, confidential informant reform, the Second Amendment Preservation Act, warrant requirements for drone surveillance and most recently, the prohibition of vaccine passports in the state of North Dakota," Becker said. "I've also provided important assistance in the causes of school choice, pro-life legislation, criminal justice reform, lowering the income tax and even eliminating the property tax."

Becker, who was an unsuccessful candidate for governor in 2016, said he's prepared to do what's right, regardless of the political fallout.

Click here to listen to Becker's comments.

Becker, who is a plastic surgeon, is known for establishing the Bastiat Caucus, a group of ND legislators generally referred to as "far right" by the media. He announced several weeks ago that he will not seek re-election to his seat in the legislature.

All statewide candidates will seek their party's endorsement. The GOP Convention will be held April 1-2 in Bismarck.

Oil and gas industry advocates are unloading on the EPA's proposed changes to the Clean Air Act regarding methane emissions released from the production and transport of oil and natural gas.

The rules would impact both new and existing operations. The EPA proposal asserts the new rules would reduce 41 million tons of methane emissions from 2023 to 2035, the equivalent of 920 million metric tons of carbon dioxide. However, industry leaders have shared their concern over the effectiveness of the regulations and their impact on energy prices across the country. The ND Petroleum Council submitted comments on the rules last week, noting the impact the rules would have on the industry and the customers who use petroleum products to power their lives.

"NDPC does not believe the EPA regulatory analysis appropriately justifies the economic burden of the proposed regulation on domestic oil and gas producers, including revisions to the values for the social costs of carbon and methane," said NDPC President Ron Ness. "NDPC encourages careful consideration of the potential economic burdens on North Dakota’s oil and gas producers when applying those values in the regulatory impact analysis for the final rule. Over-regulation of the oil and gas industry increases production costs, leading to higher costs for electricity, heating fuels, food and transportation, which disproportionately impact low-income Americans."

Among the key suggestions by the NDPC were:

• Focus on the parts of the proposal that will have the most cost-effective impact on reducing methane and volatile organic compounds
• Acknowledge the states and regions that already have emission regulations in place
• Propose actual regulatory text before publishing a “proposed rule” so interested parties can provide meaningful comments

Click here to read NDPC's comments.

NDPC also signed on to comments submitted by 21 associations that are members of the Independent Petroleum Association of America. The comments highlighted the need for innovative solutions to methane issues, as well as rules which focus on alleviating burdens on rural communities and low-income families. 

“For the past 12 years IPAA has been actively engaged in working with the EPA to promulgate (regulatory solutions) for the oil and natural gas sector that are cost-effective, reasonable, and justified under the Clean Air Act,” said IPAA President and CEO Barry Russell. “IPAA’s message has been clear and consistent: EPA’s ‘one-size-fits all’ approach to regulating the oil and natural gas industry is inappropriate and disproportionally impacts conventional operations, low production wells and small businesses.” 

Click here to read the IPAA's comments. Click here to read more about the proposed rules in the November 5 issue of the WDEA newsletter. 

Click here to read a Williston Herald article about comments that have been submitted.

For the first time in three years, the Williston Basin Petroleum Conference will return to Regina, Saskatchewan in May 2022.

The theme of the conference is “Energy from the Earth.” The event will focus more strongly on all the sources of energy in the earth – from the potential for geothermal from reservoirs in Canada and the United States, to the burgeoning lithium extraction industry in Saskatchewan, to CO2 storage to help mitigate emissions in oil and gas, and to identifying and exploiting other subsurface commodities like helium and hydrogen. 

The conference, which is co-hosted by the Government of Saskatchewan, the state of North Dakota, the ND Petroleum Council, Saskatchewan Geological Survey and the Petroleum Technology Research Council, is scheduled May 17-18 at the Delta Hotels Marriott in Regina. 

The conference normally takes place in Bismarck and Regina in alternating years, but North Dakota lost its turn in 2020 due to the coronavirus pandemic, so hosted the conference in 2021 instead. The event in Bismarck has attracted more than 2,500 registrants, while the event is smaller on the Canadian side, usually hosting about 800 attendees.

The conference will showcase technological innovation centered around emissions reduction, CO2 sequestration, enhanced oil recovery, helium, hydrogen, geothermal, as well as advancements in heavy oil, light and tight oil, advanced energy systems and advanced technologies. 

The Technical Program is still under development. The organizing committee is actively soliciting presentations, and has extended the deadline to submit an abstract to February 15. Click here for more details or to register for the conference.

The Badlands Advisory Group (BAG) has scheduled meetings on consecutive days in early March to discuss natural resource development in western North Dakota and methods to minimize and mitigate impacts on the environment. 

The meetings will be held March 7 at the Mountrail County South Complex in Stanley, and March 8 at the Killdeer Community Center. The events will begin at 10:00 a.m. local time with presentations from Jesse Beckers, energy program manager with the ND Natural Resources Trust, and Cody Vanderbusch from the Department of Mineral Resources who will describe DMR's reclamation projects.

The noonhour features a presentation from Kevin Sedivec, NDSU Rangeland Specialist, who will discuss recent reclamation efforts and lessons that have been learned.

Ag Commissioner Doug Goehring will lead the afternoon session with a description of pipeline and wind reclamation efforts and landowner mediation programs.

The meetings are sponsored by BAG and the Vision West Consortium. Interested individuals are asked to pre-register by sending an email to [email protected]. 

The Badlands Advisory Group was formed in August 2016 after Covenant Consulting Group released a stakeholder assessment detailing the opinion and perceptions of western North Dakotans on oil development in the Badlands. Recommendations from the assessment included the development of an advisory committee to identify and work out the practical details of the assessment’s recommendations. 

BAG’s objectives were: 1) to think big picture at a landscape scale; 2) to prioritize the key issues that are most important and achievable; and 3) to identify practical, achievable action steps that would promote land stewardship.