Here are the week's top North Dakota energy stories

May 10, 2019

Oil Region to Gain Legislative Seats

Census to Shift Political Clout to Western ND

Several western North Dakota legislative districts have thousands more people than districts in the east. The imbalance will be corrected following the 2020 Census by assigning more representation to western communities.

State officials hosted an organizational meeting this week of the “Complete Count Task Force.” ND Census Office Manager Kevin Iverson said it’s important that every resident is counted because federal funds are commonly distributed based on population. Iverson said every person not counted in the 2020 census will cost the state $1,900 in lost federal funds each year.

Former McKenzie County Auditor/Treasurer Linda Svihovec is co-chair of the census task force. She said one of the primary purposes of the count is to determine the level of political representation assigned to each region of the state.

Click here to listen to Svihovec’s comments.

To maximize western North Dakota’s political strength, it will be important to ensure all Bakken oilfield employees and their families are counted. Svihovec said each household will receive a form in the mail next year, to which she expects about 60% of the population will respond. To count the rest, she said the census will hire workers to go to door-door.

Click here to listen to Svihovec’s comments.

Click here to see a Census 2020 slide presentation, including a state map showing the ratio of online resumes to job openings in each county. Click here for the home page of the ND Census office.

Shale Communities Tell Their Story

Industry Impacts are the Same Everywhere

Speakers from four of the country's shale plays shared their stories this week at a meeting of the Interstate Oil and Gas Compact Commission in Oklahoma City.

The IOGCC is an organization of U.S. and Canadian oil and gas regulators. The group’s gathering featured a panel discussion led by Jeff Labenz-Hough, who has been the driving force behind establishment of America’s Rural Energy Coalition, bringing together communities impacted by energy development around the country. Labenz-Hough said impacts are the same everywhere. The only differences he said are, “some of us talk funny, and that snow issue is the only other difference.”

One-by-one the panelists described impacts in their region. Robert Barnes, director of public safety in Bradford County, Pennsylvania, said impacts of the Marcellus shale play hit almost immediately.

“The initial exploration phase brought a myriad of issues that affected nearly every aspect of life in Bradford County,” Barnes said. “They included traffic congestion, deteriorated roadways, inflated housing and rental market, and increased volumes of emergency calls in all disciplines - fire, EMS and police.”

Gloria Baggett, economic development director in Big Lake, Texas, said drilling in the Permian Basin causes her community to swell from 3,000 residents who live there, to 12,000-to-15,000 during the day.

“What do you do with those extra thousands of people who are there?” Baggett asked. “The restaurants have been packed, we've had five new hotels built in the past seven years that are still 100% full, the trucking industry has literally taken over everything. The roads, needless to say, are at best, bad.”

On the western side of the Permian, housing has been a big struggle in Lovington, New Mexico. School Superintendent, LeAnne Gandy, said the district recently purchased some duplexes to address the need.

“Some teachers live in those, many teachers bunk up together, live together,” Gandy said. “I’ve become a real estate agent trying to find housing for them.”

Vawnita Best, community development director in Watford City, said industry representatives need to explain their plans to the local community.

“It's really, really important to communicate on the front end with your community leaders so they know what to expect five years from now, ten years from now,” Best said. “Because when the fire hose hits, and there's not an understanding of what the vision can look like, everyone runs to the corner and they are shell-shocked.”

Best said the biggest problem is that the community impacts are felt before revenue or resources are available to address them. She said it diminishes the quality of life for existing residents, which creates resentment toward the industry.

“I would like to think we could figure out ways to better frontload resources,” Best said. “That would help that absorption ability and help the existing residents become your allies instead of building resentment.”

Despite the challenges of rapid population growth, Best said the struggle was worth it for Watford City.

“We went from a dying community that would have blown off the map, to this tremendous, vibrant young community where the average age of the population is 30,” she said. “The beautiful part about the families coming to Watford City is they are all seeking the American Dream.”

IOGCC Coming to North Dakota in August

The Interstate Oil and Gas Compact Commission will hold its 2019 annual conference in Medora. The IOGCC is currently chaired by Gov. Doug Burgum, and it is traditionally the chair's prerogative to host the event in his home state.

Meetings of the IOGCC typically attract governors and staff; state, provincial and federal legislators and regulators; and prominent oil and gas industry representatives. Leaders gather to advance IOGCC’s mission of promoting the conservation and efficient recovery of domestic oil and natural gas resources while protecting health, safety and the environment.

The ND Department of Mineral Resources will play an active role in developing the agenda and organizing event activities. DMR Director Lynn Helms said he's working on an oilfield tour, as well as a visit to a North Dakota fossil dig, a hike through the area's petrified forest, golf at Bully Pulpit, and treating guests to the Medora Musical and Pitchfork Fondue.

Event sponsorships are available. Click here for additional details.

Dickinson Voters Reject School Bond

Voters in Dickinson soundly rejected a $115 million bond issue to fund the construction a new high school.

Tuesday's unofficial results showed the proposal failed by about a 57-43 margin, with 2,076 votes in favor of the issue, and 2,703 against. The bond required 60 percent approval to pass.

In a statement, Superintendent Shon Hocker said sometimes plans fall short.

"Although I would have preferred our students receive a confirming vote from our community regarding this very important referendum, I am committed to providing the best educational opportunities for our students and community as possible," Hocker said.

The new school would have been built adjacent to the existing Dickinson High School, incorporating a 1997 addition and the existing main gymnasium and commons for continued use. It would have resulted in a property tax increase of $19.38 per month per $100,000 of full and true value.

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More School Bonds Issues on the Ballot Next Week

Residents of Williams County Public School District No. 8 will vote May 14 on an $89 million bond to provide funding to build two 600 capacity elementary schools and a high school with a football field and sports facilities. School District officials say district enrollment is expected to nearly double to 1,200 in just five years. For more information on the bond election including an enrollment analysis, click here.

Nesson School District No. 2, which includes the city of Ray, also has a bond vote scheduled May 14. The bond referendum if passed by voters would provide $10 million for school construction purposes, primarily an addition to the existing high school. Click here for more information about the election.

Bigger Wells Cause ND Production Surge

Pipeline Capacity Shortage Begins to Re-emerge

Most oil industry observers expect North Dakota oil production will continue to grow, but it could happen sooner than they expect, so midstream companies are being urged to step up plans to build additional pipeline and processing infrastructure to handle the surge.

Justin Kringstad, director or the ND Pipeline Authority, said technological advances to recover additional oil have been growing at a pace faster than anyone predicted. During an interview on the radio program, What's on Your Mind, Kringstad said newly completed wells have established new records for initial production.

Click here to listen to Kringstad's comments.

Kringstad said additional gains in productivity will require infrastructure to expand as well.

Click here to listen to Kringstad's comments.

Kringstad said market forces and geological or environmental barriers limit the transportation options available to North Dakota producers. He said additional production will likely travel south to the Gulf.

Click here to listen to Kringstad's comments.

Click here and advance to the 2:25 mark to listen to the full interview with Kringstad.

Recovery Rates Near 60% at Weyburn

Canadian oil producers using carbon dioxide piped from the Dakota Gasification Company's plant near Beulah say they are recovering up to 60 percent of oil in the formation near Weyburn, Saskatchewan.

Joel Armstrong, VP of Production and Operations for Whitecap Resources, said oil production in the Weyburn field began in 1954 and peaked at around 45,000 barrels per day in the 1960s, before dropping to under 10,000 bbl/day in the 1980s. Armstrong said horizontal drilling help revitalize the field in the 1990s, but he said it really took off after DGC completed the CO2 pipeline in 2000.

Click here to listen to Armstrong's comments.

Armstrong said the injection of CO2 into the formation helps build pressure to move oil to the wellbore, but it primarily works by mixing with the oil to make it flow more easily.

Click here to listen to Armstrong's comments.

Armstrong said DGC is still the primary source of CO2 for the project, but it now has a secondary supply coming from the CO2-capture project at the Boundary Dam coal plant near Estevan, SK. He said since its establishment, the field has stored more than 30 million tons of carbon dioxide.

Click here to read more about the Weyburn-Midale CO2 project. Click here to read a paper on CO2 enhanced oil recovery from the National Energy Technology Laboratory.

Project Tundra Gains Momentum

Carbon capture and storage technology for North Dakota electric power plants is moving forward through established partnerships and good old-fashioned teamwork.

This spring, a pilot-scale test unit will be installed at the Milton Young Station and the testing will run through the summer. The pilot system will include a sulfur dioxide scrubber, a CO2 absorber and a regenerator. This test system will capture the equivalent of a ton of CO2 per day.

In addition to Minnkota Power and UND’s Energy and Environmental Research Center, other partners on the project are the North Dakota Industrial Commission, the U.S. Department of Energy, Burns and McDonnell (engineers), BNI Energy and Eagle Energy Partners.

The game-changing research project is looking at the possibility of both carbon capture and storage along with enhanced oil recovery.

Stacey Dahl, Minnkota's Senior Manager of External Affairs, said results from Petra Nova, a similar CO2-capture and EOR project in Texas, have been very promising.

Click here to listen to Dahl's comments.

For more information and a video on Project Tundra, click here.

Spring Issue of Basin Bits on its Way

The spring issue of WDEA's semi-annual magazine Basin Bits will soon be arriving in mailboxes throughout North Dakota, the United States and Canada.

The cover story of this issue details the passage of "Operation Prairie Dog," legislation that provides Hub City funding, retains the 70-30 state/local split of gross production tax revenue, and creates new infrastructure buckets for non-oil communities.

The magazine also contains articles that examine the latest efforts to reduce flaring in North Dakota, more efficient production technology, updates to WDEA's LoadPass Permit system, and the dilemma facing crowded western North Dakota schools that need additional classroom space.

The Spring 2019 issue can also be found online at this link.

WDEA Legislative Info Meetings Set

Watford City Added to Meeting Line-up

WDEA members and the general public are invited to attend one of four post-legislative information sessions scheduled next week.

WDEA Executive Director Geoff Simon and WDEA legislative consultant Brent Bogar will recap the most important issues of the 2019 session, and answer questions about the impact of various legislation.

Meetings are scheduled:

May 15 at 10:00 a.m. CDT in the commission chambers at the Ward County Courthouse in Minot;

May 16 at 9:00 a.m. CDT in conjunction with a meeting of the Vision West Consortium at the Williams County Highway Department in Williston; Click here to see Vision West's agenda.

May 16 at 1:00 p.m. CDT in the commission chambers at the McKenzie County Courthouse in Watford City; and

May 16 at 4:00 p.m. MDT in the commission chambers at City Hall in Dickinson

Click here to read WDEA's three-page final report of the 2019 Legislature.

Restrictions Lifted on Some Highways

Effective May 6, load restrictions were lifted on US 12 from Montana to the South Dakota border, and on US 85 from the South Dakota Border to I 94

Effective 7 a.m. CT, Monday, May 13, load restrictions will be lifted on the following highways.

Hwy 22 from I-94 south to the South Dakota border

Hwy 21 from Jct of Hwy 22 West to Jct Hwy 85

Hwy 67 from Jct Hwy 21 south to Jct Hwy 12

Motorists are encouraged to check current restrictions to determine which remain in effect. Load restrictions may change quickly due to adverse weather conditions.

Statewide seasonal load restriction information is available online or by calling 511. Click here for details of state load restrictions. Click here for county restriction information.

Pick Up the Patch Continues

Crosby - Wednesday, May 15, 9:00 a.m.

Meet at Pioneer Village - Pick up trash for a few hours along the highway. Brian Grote of Balon Valves is grilling and will have lunch ready at about noon. RSVP or get more info from: Kyle Ledbetter, 701-641-6635

Dickinson – Spring Clean-Up goes through Sunday, May 12. All residents, clubs, schools, churches and businesses are encouraged to participate in the Citywide Spring Clean-Up. Trash bags are available at: Public Safety Center, West River Community Center and Chamber of Commerce. For more information call the City of Dickinson Fire Department, 701-456-7625, or visit its website.

Highway 85 Clean Up - Monday, May 13 thru Sunday, May 19

The Theodore Roosevelt Expressway Association (TRE) is partnering with the ND Department of Transportation and a number of agencies to conduct a clean-up of US 85. This event is an effort to pick up trash along the corridor and to promote a litter free roadway. Those interested in volunteering should contact Cal Klewin, TRE Executive Director, at 701-523-6171 or email him. NDDOT will provide litter bags and safety vests for volunteers. Just leave trash bags on the road shoulder and NDDOT will pick them up. Bags and vests are available in Dickinson, Bowman, Belfield and Watford City DOT shops.

New Town - Slawson Exploration, the New Town Chamber, and the North Segment are coordinating community clean ups Wednesday, May 15, at 10:00 a.m. Focus on areas outside of the New Town city limits. Volunteers can pick up trash bags, and some coffee at JC Java Coffeehouse. Slawson will take crews from Jason's Super Foods to the Ranchman on both sides of Hwy 23.

Watford City through Saturday, May 11. Grab your coworkers and friends and head out any time during the week! Garbage bags, gloves and vests will be provided at City Hall.

Youth Advisory Group Being Formed

Student in grades 7-11 with a desire to learn about and offer input into North Dakota’s oil and gas, agriculture and lignite coal industries are being encouraged to consider applying to serve on a new Youth Advisory Group.

It’s called “Next Gen ND: The Voice for Energy and Agriculture” and it will accept applications through June 15.

Fifteen students will be selected for the group which will have access to personnel from the Lignite Energy Council, the North Dakota Farm Bureau, and the North Dakota Petroleum Council. In addition, the group will have tours of agriculture and energy facilities in the state, plus have three “virtual” meetings using Zoom technology.

Click here for more information or to apply for Next Gen ND.

ND Rural Leadership Accepting Applications

NDSU Extension’s Rural Leadership North Dakota is looking for participants for its ninth class, which will begin in November.

The RLND program began 16 years ago to develop agricultural and community leaders for the future. The 18-month leadership development program includes in-state seminars with experts; tours of agricultural and community businesses; out-of-state trips to meet with agricultural, business and government leaders; and a trip to another country (destination to be determined). Previous classes visited Brazil, Costa Rica, Panama, Thailand, Vietnam and Chile.

The program helps participants enhance leadership skills, such as thinking critically and creatively, communicating effectively, self-awareness, decision making, strategic planning and managing conflict. Participants also learn about agricultural and rural policy, future trends that could affect North Dakota, innovative ways to fund local and regional development projects, marketing, civic engagement, industry and community advocacy, and how to work with the state legislature.

Tuition for the RLND program is $4,000, which covers all meals, hotels and travel expenses, including buses to in-state seminars and air fare to out-of-state seminars. The deadline to apply for RLND Class IX (2019-21) is June 30. Applicants must have been a state resident for at least a year and be able to attend all of the seminars. For more information, visit RLND’s website, or call 701-231-7171.

Click here to see the program brochure. Click here for an application form.

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.

TransCanada Scholarships Available

TransCanada is offering educational scholarships across the U.S. and Mexico for soon-to-be college students.

Applicants must currently be enrolled or plan to enroll in college for the 2019-2020 school year, a citizen or permanent resident of the U.S., located in a community near TransCanada's operations or projects, and would benefit from supplementary education training. Qualified applicants could receive a scholarship valued at up to $10,000.

Three scholarship categories are offered. The “Community Leaders” scholarship is in support of students who demonstrate a strong community commitment through leadership, volunteerism, community involvement or other activities that benefit their community. The “Indigenous Legacy” scholarship supports Indigenous students pursuing any full-time, post-secondary program at a registered education institute. The “Trades” scholarship supports students who are entering or enrolled in a qualifying trades program at a registered education institute.

Click here to pre-qualify for a TransCanada scholarship and become eligible to win a MacBook Pro Student Prize Pack. Applications are due May 17.

Quick Connect

North Dakota plans to sue over crude oil train legislation -- Bismarck Tribune

Economists: Higher oil prices here to stay, $60/bbl thru 2019 -- Oil Price.com

Mayor Howard Klug: Williston going "in the right direction" -- Williston Herald

Overturned semi shuts down I-94 between Belfield, South Heart -- KX News

North Dakota corrections system looking ahead to interim legislative study -- Bismarck Tribune

Legislators say 2019 session was good to western North Dakota -- McKenzie County Farmer

Public hearing set on proposed $15 million ONEOK pipeline project -- Associated Press

Davis Refinery model to spread to other states as progress in ND continues -- Williston Herald

New North Dakota tax incentive aims to attract large petrochemical facility -- Bismarck Tribune

Backers seek funds for ND Theodore Roosevelt Presidential Library -- Associated Press

East Villard getting needed overhaul from 10th Avenue East to Energy Drive -- Dickinson Press

Williams County considering using produced water for dust control, de-icing -- Williston Herald

Minot City Council begins budget talks with city sales tax discussion -- Minot Daily News

Williston celebrates business & growth during Economic Development Week -- Williston Herald

Large wind farm on 44,000-acre site northwest of Tioga approved by ND PSC -- Fargo Forum

Heidi Brenna appointed to fill vacant Watford City city council seat -- McKenzie County Farmer

Electric fracking from wasted flare gas could take over the Permian Basin -- OilPrice.com

Commission picks former sheriff Barnard to head emergency management -- Minot Daily News

Grand opening and ribbon-cutting: Arnegard Fire District says times are changing -- KFYR-TV

New elementary school to be open to start 2020 school year -- McKenzie County Farmer

Pipeline protesters could get 10 years in prison under bill ok'd by Texas House -- Texas Observer

2020 Presidential candidates take extreme positions on oil and natural gas -- Energy in Depth

Hundreds participate in picking up the patch: Sprucing up busy Highway 1804 -- KXMB-TV

Pipeline bans make gas transport by rail an economic necessity -- Institute for Energy Research

Factoid of the Week

North Dakota’s oil and gas industry invested $109 billion in drilled and completed wells from 2006 to 2018. Another $15 billion was invested in natural gas gathering and processing facilities. These figures do not include investments in housing and other similar infrastructure made by private firms and the state, local or federal government.

Source: ND Department of Mineral Resources March 2019 Fact Sheet