June 28, 2019

Wise Roads Project Phase 1 Complete

Weather Stations Put to Test This Morning

Installation of the first 10 weather stations in WDEA's Wise Roads project was completed this week, and all 10 sites received a shot of rain this morning to put them to the test.

Wise Roads (Weather Information System to Effectively Reduce Oilfield Delays and Disruption) is being developed in partnership with the North Dakota Ag Weather Network ( NDAWN) at NDSU. Brent Bogar, a WDEA consultant, was in the field this week with the NDAWN crew installing the research-grade weather stations. Bogar said the Wise Roads project is a response to concerns expressed by the oil industry that weight limit restrictions placed on gravel roads after rain events covered more roads than necessary.

Click here to listen to Bogar's comments.

Bogar said the partnership with NDAWN will ensure the weather data is accurate, and is a true win-win because the information will also be available to farmers and ranchers in western North Dakota.

Click here to listen to Bogar's comments.

Bogar said the first 10 stations were all placed adjacent to property owned or controlled by oil industry players in the top four oil-producing counties. But he said WDEA welcomes offers from western North Dakota landowners to host one of the stations on their property. Bogar said there are plans to install additional stations later this summer, and possibly even more stations will be placed next year.

Click here to listen to Bogar's comments.

The stations cost about $10,000 each, and are being funded by a surcharge on the fees generated through WDEA's LoadPass Permits system for oversize trucks. WDEA is seeking a matching grant from the Oil & Gas Research Council that would effectively double the size of the project.

Bogar was interviewed by WDEA Executive Director Geoff Simon on the radio program, Energy Matters. Click here and advance to the 00:52 mark to listen to the full interview.

Click here to see another map of the first 10 stations installed this week. Click here to see a map of rainfall recorded at the new stations this morning. Click here to see a photo of NDSU installers James Hyde and Alex Rushing at the Arnegard site. Click here to see a photo of NDSU installer James Hyde from Powers Lake at the Rat Lake weather station. Each weather station is equipped with a 360° camera. Click here to see an image taken from the 9N Arnegard station.

Legacy Fund Earnings Transfer $454 Million

North Dakota's state bank account will see an infusion of about $454 million in July, the first transfer of earnings from the state's Legacy Fund to the general fund.

Prior to the 2017-2019 biennium, earnings from the Legacy Fund, which receives 30% of all oil tax revenue, were reinvested into the fund as required by the state constitution. But this year for the first time since the fund was established in 2010, earnings will go to the general fund where they can be spent by the legislature or invested in other areas.

Because of a quirk in interpretation of the constitutional language, the first transfer will include only 23 months of earnings revenue. That's because the transfer has to occur in July and has to be based on actual earnings, according to Joe Morrissette, director of the state Office of Management and Budget. Morrissette said the initial transfer will not include June earnings because Legacy Fund dollars are invested in many different accounts, and it takes awhile for the numbers people to figure out just how much each of those accounts has earned.

Click here to listen to Morrissette's comments.

Morrissette said transfers in subsequent bienniums will include 24 months of earnings, so the next earnings transfer will cover the period between June 1, 2019 and May 31, 2021.

Because the earnings exceed the legislature's latest estimate, Morrissette said the overage will go into the state's rainy day account known as the Budget Stabilization Fund. When combined with other transfers approved by the legislature, the transfer in July will nearly replenish the fund, which was drained to balance the budget by the 2017 Legislature.

Click here to listen to Morrissette's comments.

Click here to see Morrissette's presentation to the Budget Section on the status of the general fund.

Wardner: Use Legacy Earnings for Infrastructure

Wants Portion of Money for School Construction Grants

It will surprise no one who knows him that Senate Majority Leader Rich Wardner would like to see earnings from the state Legacy Fund used to support infrastructure development.

Senator Wardner, R-Dickinson, will be part of an interim legislative study committee that will explore possible uses for Legacy Fund earnings. Wardner said he thinks it should be used to support the construction of essential infrastructure around the state.

Click here to listen to Wardner's comments.

Because quality school facilities are so important, Wardner said he would like to see a portion of the Legacy Fund earnings used to provide direct assistance to support school construction projects.

Click here to listen to Wardner's comments.

The Legacy Fund Earnings Committee will be chaired by House Majority Leader Chet Pollert, R-Carrington. Other members include the House and Senate minority leaders, the chairs of the House and Senate Appropriations Committees and the Finance and Tax Committees, as well as two members of the Legacy and Budget Stabilization Fund Advisory Board. Wardner said he expects the committee will have meetings around the state to receive input from the public.

Senator Wardner was interviewed on the radio program, Energy Matters. Click here and advance to the 29:40 mark to listen to the full interview. Energy Matters is broadcast every Tuesday from 3:00-5:00 pm CST on AM 550 KFYR & AM 1460 KLTC, and re-broadcast Saturday from 11:00 am to 1:00 pm on AM 1090 KTGO, and Saturday from Noon to 2:00 pm on AM 1100 WZFG.

Williston School Considering Fundraiser

The Williston No. 1 School District is looking into the possibility of organizing a fundraising effort to fund improvements in the district's school buildings.

Board members met with the Building and Grounds Committee this week to discuss the idea. Board President Joanna Baltes, who also serves on WDEA's Executive Committee, told the gathering her initial pitch to the Williston Coyote Foundation was well received.

The board has been trying to come with a plan to address a shortage of classroom space caused by rapidly growing enrollment in the district. Two bond issues to fund expansion of the high school and build new elementary schools were narrowly defeated earlier this year. Baltes said if the fundraising effort proceeds, she expects the goal would be $3 to $5 million.

Click here to read more in the Williston Herald.

PHMSA May Nullify Washington's Crude Law

The director of North Dakota's Department of Mineral Resources said this week he expects a federal agency will seek a court order that will block a Washington state law that would impact shipments of Bakken crude oil moving through the state to refineries on the West Coast.

Lynn Helms told the legislature's Budget Section this week that the ND Industrial Commission is working with an an attorney in Washington DC, engaging in discussions with the Pipeline and Hazardous Materials Safety Administration (PHMSA). Helms said PHMSA believes its authority preempts the legislation enacted by the state of Washington.

The Washington law sets a vapor pressure limit of less than nine pounds per square inch for crude oil unloaded from trains, lower than North Dakota’s limit of 13.7 psi and the industry standard for stable crude of 14.7 psi. Helms said there is no scientific basis for the lower standard, which he said would have a number of adverse consequences for the nearly 200,000 barrels of crude shipped each day from North Dakota to the Seattle market.

"It's the highest priced market in the world right now," Helms said, "so it would not only harm several great customers on the West Coast and we believe would be environmentally detrimental, it would harm North Dakota crude producers who would have to divert that 200,000 barrels a day to a lower profit market."

Helms said if a federal court agrees that PHMSA's authority preempts the law, it would likely grant an injunction to block its implementation. But he added that Washington's Democratic Governor Jay Inslee is a climate change activist, so expects the state would litigate the court order.

North Dakota LNG Expanding Its Market

North Dakota LNG has been operating a facility on the outskirts of Tioga for several years now, but new market opportunities could lead to expansion of the facility or additional LNG plants in the state.

Ed Woods, business development director for the company, said the Tioga plant draws natural gas from Hess Corporation's processing plant just across the road. Woods said the facility is currently producing around 100,000 gallons of liquefied natural gas every day.

Click here to listen to Woods' comments.

Woods said the LNG is transported by truck to customers throughout the Bakken.

Click here to listen to Woods' comments.

Woods said LNG has an advantage over other fuels because the price of natural gas has been fairly stable. He said it represents about a 20 percent cost savings over the price of diesel fuel. Because of its advantages, Woods said there is opportunity to grow the industry, especially to power frac spreads.

Click here to listen to Woods' comments.

Click here to see a slide presentation on the benefits of LNG. Woods was interviewed on the radio program, Energy Matters. Click here and advance to the 1:45 mark to listen to the full interview.

Document for Hwy 1804 Work Released

The Federal Highway Administration has approved an environmental assessment for improvements to Hwy 1804 in the vicinity of the Links of North Dakota golf course, commonly referred to as Red Mike.

FHWA announced that the preferred alternative has been identified as Alternative B. It would consist of roadbed restoration, pavement surfacing, traffic operations and safety, potential access modifications, right of way, passing lanes, turn lanes, horizontal and vertical curve corrections, culvert extensions, roadway realignment, shoulder widening and incidentals.

The environmental assessment was determined to adequately and accurately discuss the need, environmental issues and impacts of the proposed project, and appropriate mitigation measures.

The document is available for public inspection through July 28 at:

WDEA Offering Energy Scholarships

The Western Dakota Energy Association will award five $1,000 scholarships this fall to students in an energy-related field at a North Dakota college, university or technical school.

WDEA President Gary Wilz said the association is offering the scholarships to help the industry and western communities meet the workforce challenges now being experienced with the surge in oil industry activity.

“We recognize that North Dakota will see benefits from higher oil prices only if the industry is able to attract the workforce it needs,” said Wilz, who is Superintendent of the Killdeer Public School District. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy industry.”

Funding for the scholarship program is generated by sponsorships of WDEA’s annual meeting, as well as royalties from advertising in Basin Bits magazine.

Click here to learn more about the selection criteria and how to apply.  

Click here to view or download an application form. 

The application deadline is August 31, 2019. Scholarships will be awarded in September.

Quick Connect

Factoid of the Week

Natural gas is projected to be the fastest-growing fossil fuel in the coming decades. Liquefied Natural Gas (LNG) is natural gas in liquid form. When natural gas at ambient pressure is cooled to about -260 degrees Fahrenheit, it becomes “liquefied” and reduces the volume of the gas to about 1/600 of its original size, making it much easier to transport. 

Source:  LNG Facts

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Williston Chamber Rockin' RibFest

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SW Coordinated Regional Interoperability Board

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