NDIC Approves $250K Wise Roads Grant
The North Dakota Industrial Commission this week approved a $250,000 Oil & Gas Research Council grant to support WDEA's Wise Roads project that is aimed at improving the movement of heavy truck traffic in western North Dakota.
The idea behind Wise Roads (Weather Information System to Effective Reduce Oilfield Delays and Disruption) is to place research-grade weather stations in high traffic areas in the Bakken to provide accurate weather data to county highway managers. That will allow them to more precisely identify areas impacted by rain events so that only affected gravel roads are subjected to weight restrictions to protect them from excessive damage by heavy truck traffic.
Partnering with the North Dakota Agricultural Weather Network, WDEA installed 10 weather stations in late June, and plans are in the works to install 15 more stations this fall. With additional support from the grant, WDEA and NDAWN will be able to place up to 25 more stations, bringing the total to 50 in all.
Governor Doug Burgum, who chairs the NDIC, said he's excited about the Wise Roads project.
"I think this is going to help us be more data driven in terms of whether we do or do not do road closures because closures certainly affect industry activity which affects (oil tax) revenue which pays for most everything around here," Burgum said.
The Governor, recognizing Wise Roads' benefit to the ag community, somewhat jokingly said he'd like to see the project expanded with many more weather stations in North Dakota.
"I'm happy about 50 but I would envision a world where we have a lot more than 50," Burgum said. "It's been hypothesized that you could end up with one per square mile and have 71,000 weather stations in North Dakota. That would be fantastic for hail, crop insurance, flood and things like that."
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ND Optimistic About Washington Rail Decision
New Vapor Pressure Study Supports State's Position
The federal Pipeline and Hazardous Materials Safety Administration (PHMSA) has published a proposed
rule that indicates federal law would preempt legislation enacted by the state of Washington that could impede the shipment of Bakken crude to West Coast refineries.
In addition to the action by PHMSA, ND Attorney General Wayne Stenehjem said a
new study of crude oil volatility by Sandia National Lab also supports the state's argument against the Washington law.
"They studied three different kinds of oil including from the Permian Basin in Texas, from the Bakken in North Dakota and also samples from the Strategic Petroleum Reserve," Stenehjem said. "The net result is that Bakken oil is no different than any other kind of oil with respect to volatility."
According to the study's executive summary, "The similarity of pool fire and fireball burn characteristics pertinent to thermal hazard outcomes of the three oils studied indicate that vapor pressure is not a statistically significant factor in affecting these outcomes. Thus, the results from this work do not support creating a distinction for crude oils based on vapor pressure with regards to these combustion events."
Stenehjem said the finding "vastly undermines the reasoning behind the state of Washington in enacting the statute because they assumed without evidence that Bakken oil was more volatile."
The new Washington state law (
SB 5579) would effectively prohibit oil from being unloaded in the state from rail cars that have a vapor pressure greater than 9 psi, which is significantly lower than accepted national standards.
Click
here to read a summary of the proposed PHMSA rule. Click
here to comment on the rule. Click
here to read comments that have already been submitted.
Click
here to read or download (30MB) the Sandia Labs study. Click
here to read a Bismarck Tribune article about the crude-by-rail issue.
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NDIC Okays Study of Disposal Well Lightning Fires
The ND Industrial Commission has approved spending up to $300,000 on research to determine the cause of a surge in lightning fires at saltwater disposal facilities.
The study will be conducted by the Energy & Environment Research Center with funding from the Oil & Gas Research Council's Emerging Issues Contract with EERC.
Lynn Helms, director of the Department of Mineral Resources, said there have been six fires at disposal facilities this year. He said the study is needed to determine a proper course of action.
Click
here to listen to Helms' comments.
The study is due to be completed in October.
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MHA Wants Share from Off-Reservation Wells
The MHA Nation wants a share of the oil tax revenue generated by wells that are just outside its reservation boundary but have laterals that draw oil from underneath reservation lands.
At a meeting of the Tribal Taxation Issues Committee this week, John Frederick, legal counsel for the MHA Nation, said the tribe would like to amend its oil and gas tax-sharing agreement with the state to address the issue.
Frederick said dozens of oil wells just outside the boundaries of the Fort Berthold Reservation have laterals under tribal lands. He said many of them draw the majority of their oil from trust lands, but under the current agreement, the tribe doesn't receive any of the tax revenue generated by those wells.
"It's a huge, huge loss of revenue to us, and we're in a position where we're forced to tell the (Bureau of Land Management) that we don't want these wells to penetrate on the reservation because we don't get any tax revenue from them," Frederick said. "Somehow, some way we need to figure out a way to deal with that to get an allocation of that tax revenue."
Frederick acknowledged there are also wells on the reservation that have laterals outside its boundaries onto fee land, but he said there are more off-reservation wells with laterals into tribal trust lands.
Governor Doug Burgum, who chairs the Tribal Taxation Committee, asked State Tax Commissioner Ryan Rauschenberger to provide data about the number of oil wells around the reservation perimeter, and said the issue will be added to the agenda at a future committee meeting.
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Burgum Touts US Energy Dominance
Governor Doug Burgum says growing US. energy dominance is "the single most important strategic change that's going on geo-politically" today.
In his opening remarks to the annual meeting of the Interstate Oil and Gas Compact Commission in Medora on Monday, Burgum said wars have been fought over energy resources. But thanks to the digital revolution, innovation and technology, the world is shifting from an era of scarcity to a world of abundance.
"It's a hard thing for us to grapple because it is such a transition," Burgum said. "We're going to have enough food to feed the world. We're going to have enough energy to power the world."
Burgum said U.S. foreign policy since the nation's founding has been based around scarcity of resources, but now the United States is in a position to help other countries.
"Now we're in a position where we have an opportunity to sell energy to our friends and allies, as opposed to buying it from our enemies," Burgum said. "That changes everything. Just understand we're spending a trillion dollars a year on our military, (much of it) to protect our position in the Middle East."
Burgum cautioned that continued investment in infrastructure would be necessary to grow the industry and sustain the "global game changer." He predicts that by 2024 or 2025, the U.S. could become the world's largest energy exporter. It currently trails Russia, Saudi Arabia and Iraq.
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More Transmission Needed for Wind Power
State Must "Get Serious" to Continue Development
If North Dakota wants to continue developing wind resources, it's going to require the construction of more electric transmission lines to connect wind farms to the grid.
That's the main conclusion from the annual report of the ND Transmission Authority delivered to the Industrial Commission this week. Authority Director John Weeda told the commission that two major wind projects were either cancelled or curtailed in the month of August because of high costs associated with connecting wind farms to the grid.
"We're really at a point in time where we need to get serious about transmission in North Dakota if we're going to continue to develop renewable resources in the state," Weeda said.
Weeda said the Emmons-Logan project was downsized from 300 MW to 200 MW, and the 200 MW Ruso Wind project in McLean County was cancelled because it would have required a $500 million investment to connect it to the power grid. He said a study is underway to identify areas that are seeing serious congestion and those where it's still possible to use existing transmission infrastructure.
Weeda says he's reached out to utilities and potential transmission developers, "looking for the business plan that can make it happen." He said he's also looking to neighboring states that are seeking renewable resources that may help fund projects that would allow North Dakota to export more wind energy.
The report notes the completion of several major recent transmission upgrades including completion of the 230 KV Ellendale to Big Stone line, Basin Electric's buildout around its 345 KV system, Great River Energy refurbishing the DC line from Underwood to Delano, MN, and Xcel Energy's transmission improvements around Minot and Velva.
Click
here to read or download the Transmission Authority annual report.
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EPA to Revise Federal Methane Standard
The Environmental Protection Agency announced a proposal this week to remove regulatory duplication which it says would save the oil and gas industry millions of dollars in compliance costs each year, while maintaining health and environmental regulations the agency considers appropriate.
The proposal is the result of EPA’s review of the 2016 New Source Performance Standards for the oil and natural gas industry implemented by the Obama administration. EPA’s regulatory analysis estimates that the proposed amendments would save the oil and natural gas industry $17-19 million a year.
“EPA’s proposal delivers on President Trump’s executive order and removes unnecessary and duplicative regulatory burdens from the oil and gas industry,” said EPA Administrator Andrew Wheeler. “Since 1990, natural gas production in the U.S. has almost doubled while methane emissions across the natural gas industry have fallen by nearly 15%. Our regulations should not stifle this innovation and progress.”
EPA's action will not alter North Dakota's methane capture rules.
"North Dakota has some of the nation’s cleanest air, and we’re proud of our air pollution control rules that have substantially reduced emissions from all phases of oil development,” said Gov. Doug Burgum in a statement issued in response to EPA's announcement. "We’ll continue to control methane emissions and work diligently with industry to find solutions to methane challenges, regardless of what happens with these duplicative and costly federal regulations.”
In its primary proposal, the EPA would remove sources in the transmission and storage segment of the oil and gas industry from regulation.The proposal would also rescind emissions limits for methane from the production and processing segments of the industry.
EPA will take comment on the proposal for 60 days after it is published in the Federal Register and will hold a public hearing.
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Land Department Hires New Investment Director
The Board of University and School Lands’ formally announced the hiring this week of Michael Shackelford as the individual responsible for managing the Land Board’s investment program.
Shackelford replaces Jeff Engleson, who recently announced his retirement after 33 years with the Land Department. Engleson was recognized by the Land Board with a resolution recognizing his accomplishments and years of dedicated service.
Shackelford founded the investment advisory IKM Capital Management, LLC in 2008. Prior to founding IKM he was head of the mortgage and asset-backed investment team at Credit Suisse Alternative Capital, Inc. where he was responsible for overseeing mortgage and asset-backed investments. He holds a B.A. in Economics from the University of Texas at Austin and a M.A. in Economics from California State University, Sacramento.
The Land Department is responsible for the management and investment of 13 permanent education trusts including the Common Schools Trust Fund which currently has more than $4 billion in assets. It's also responsible for five other funds including the Indian Cultural Education Trust; the Capitol Building Fund; the Strategic Investment and Improvements Fund; the Coal Development Trust Fund; and the Theodore Roosevelt Presidential Library Fund.
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State to Receive $6.5 Million for Bridge Work
The ND Department of Transportation has been awarded a $6.5 million grant to be used to replace 18 bridges across the state.
Most of the bridges to be replaced are in western North Dakota including three in Williams County, three in Stark County, two in Ward County, and one in McKenzie County.
Senator John Hoeven announced the grant this week. It's part of
$225 million in one-time funding provided through the Competitive Highway Bridge Program announced by the US Department of Transportation last fall.
Hoeven, who serves on a transportation subcommittee of the Senate Appropriations Committee, submitted a letter in support of NDDOT’s application for the funding.
“Detours around closed bridges can add a significant amount of time to travels," Hoeven said. Ensuring the roadways are connected with reliable bridges will help North Dakotans to safely and efficiently get where they’re headed.”
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REAL ID Soon Needed for Air Travel
New Requirement Starts October 2020
It seems like it’s a long way off, but October 2020 will be here sooner than we think. That’s when the REAL-ID requirement will take effect.
REAL-ID is a federal mandate to improve the reliability and accuracy of driver's licenses and identification cards. REAL-ID compliant licenses are marked by a star on the top of the card and allow a North Dakota resident to use their driver’s license as a form of identification to complete domestic airline travel and access a federal facility such as a federal courthouse or airbase.
To get a REAL-ID, citizens must visit a North Dakota Driver’s License office in person. When getting a REAL-ID, state residents need to bring specific documents to prove residency, identification, and Social Security. More information along with the list of acceptable documents can be found
here.
For more information on REAL-ID, click
here. For a Fargo Forum news article about REAL-ID, click
here.
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Fall Issue of Basin Bits Magazine is on its Way
The fall edition of WDEA's Basin Bits magazine featuring a detailed look at WDEA's Wise Roads project will be landing in mailboxes in the next few days.
This edition also includes articles about efforts to achieve equity in education funding, changing needs of the health care industry in western North Dakota and a look at Denbury Resources' plans for enhanced oil recovery in Bowman County.
The magazine also contains articles about airport construction projects in Dickinson, Watford City and Williston; the lignite industry's challenge to compete in today's electric markets; and an update on natural gas capture efforts including a preview of the produced gas storage study to be conducted by EERC. The issue also includes a feature article about the API Chapter in Williston.
Those who can't wait to get a hard copy in their mailbox can click
here for an online version.
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Scholarship Application Deadline Extended
The WDEA Executive Committee voted this week to extend the application deadline for the energy scholarships it's offering this fall. The deadline had been tomorrow, but was extended to October 18.
"We opened the application period earlier this year about the time schools were dismissing for the summer break, so many students may not have heard about the opportunity," said WDEA President Gary Wilz. "With classes back in session, we thought it would be a good idea to give high school seniors and post-secondary students a few more weeks to apply for a scholarship."
The association is offering five $1,000 scholarships to students interested in pursuing a career in the energy sector. It is open to students who are enrolled in, or plan to enroll in either college or technical school. The application process is easy. Students are asked to complete a one-page form, write up to a 300-word essay describing their interest in energy development, and include a recent transcript. Additional supporting documents may also be included.
Click
here to see the selection criteria. Click
here to view or download the scholarship application.
Scholarship winners will be announced at WDEA's annual meeting, October 30-31 in Minot..
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Registration Open for WDEA Annual Meeting
Sponsorship/Exhibitor Opportunities Available
Registration is now open for the annual meeting of the Western Dakota Energy Association to be held October 30-31 at the Grand Hotel in Minot.
Sponsorships and exhibit space are available to companies or organizations interested in supporting the communities in the energy-producing region of western North Dakota. Click
here for the sponsor/exhibitor form.
The event kicks off at 1:00 p.m. on October 30 with an update on enhancements and expansion of WDEA's
LoadPass Permits system, to be followed by an update on the association's
Wise Roads weather station project. The presentations will be followed by a panel discussion about truck permitting issues between industry representatives and county highway managers. The balance of Day One will be devoted to issues associated with North Dakota's growing natural gas production. The day will be capped off by an evening social at 5:30 featuring remarks from Cal Klewin regarding the Theodore Roosevelt Expressway Association and efforts to improve Highway 85.
Day Two opens with a perspective on ethics issues from Minot Senator David Hogue, to be followed by a presentation on workforce issues by Paula Hickel and Susan Ogurek from Job Service of ND, an update on the Western Area Water Supply Authority from Curtis Wilson, and the Upper Great Plains Transportation Institute's update of its county roads needs study. The morning agenda also features a presentation from the North Dakota Geological Survey about the potential for oil production in different benches in western North Dakota, a panel discussion about the education funding needs of western communities and an interim legislative report from Senator Rich Wardner.
Lt. Governor Brent Sanford will deliver a keynote address during the noon luncheon. The afternoon agenda includes details on lignite research and marketing efforts, and will conclude with a traditional county-by-county production report from Lynn Helms, director of the Department of Mineral Resources. The association's annual business meeting and election of officers will wrap up the event.
Click
here for the agenda and registration details. A block of rooms has been reserved at the Grand Hotel. To receive the discounted rate, guests should mention WDEA Annual Meeting when registering. Contact the hotel at: 701-852-3161 or (800) 735-4493.
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ND Workforce & HR Conference
Coming to Alerus Center in Grand Forks
Registration is now open for the 2019 ND Workforce and HR Conference which is expected to draw workforce professionals from across the state.
Human resource professionals, recruiters, trainers, talent developers, office managers, economic developers, legislators, and public sector employees will gather for the three-day annual conference scheduled for September 17-19 at the Alerus Center in Grand Forks.
Keynote speakers at the conference include Dr. Gary Bradt on turning change into opportunity; Tami Evans will talk about how to leverage levity in the workplace; and Matt Havens will present a practical approach to leadership. Local business tours at the event will include Northrop Grumman, Minnkota Power Cooperative and Retrax.
Click
here to see the complete agenda or
here to register.
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Quick Connect
- ND starts new biennium on high note replenishing rainy day fund -- KXMB-TV
- No complaints from legislature's new anti-harassment policy -- Fargo Forum
- Lawmaker aims to livestream meetings to 'shame' Legislature into transparency -- Fargo Forum
- Public's TENORM questions get asked, but answers will not come until later -- Williston Herald
- ND DEQ pledges improvement to public reporting of spill information -- Associated Press
- Abandoned oil wells: Regulators consider ways to stop issue from worsening -- Bismarck Tribune
- Continental Oil is pushing out boundaries of what is profitable in the Bakken -- Williston Herald
- Activist, authorities spar over release of depositions in DAPL riot case -- Bismarck Tribune
- Standing Rock requests to intervene in proposed DAPL expansion decision -- Bismarck Tribune
- Nebraska court uphold's state's approval of Keystone XL pipeline path -- KFYR-TV
- Effort to save sage grouse takes a twist with keeping birds in state -- Bismarck Tribune
- Davis Refinery: Less pollution than Theodore Roosevelt National Park -- SayAnythingBlog
- State rules to remain amid proposed federal rollback of methane regulations -- Fargo Forum
- Recession? The debate continues, but ND's economy could provide a safety net -- Fargo Forum
- New ND election equipment going out to counties in next few weeks -- Bismarck Tribune
- ND Highway Patrol to ramp up I-94 law enforcement over Labor Day weekend -- KXMB-TV
- Beulah School Board hears new design concept for the high school project -- Beulah Beacon
- New children's museum in Minot could break ground as early as next spring -- Minot Daily News
- Opinion: The left’s climate view obstructs real progress like Davis Refinery -- Fargo Forum
- Oil and gas industry leading economic sector in several western states -- Western Wire
- EPA renews task force with Interstate Oil and Gas Compact Commission -- EPA News Release
- US shale industry credited with driving 10% of US GDP growth -- Energy In Depth
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Factoid of the Week
As Labor Day approaches, it’s fun to think about what North Dakota has to offer for the holiday. Did you know Lake Sakakawea has more shoreline than the California Pacific Coast? And the Little Missouri National Grasslands is the largest grassland in the U.S. at more than 1 million acres.
Travel North Dakota this holiday weekend!
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September 3
Center
September 5
Bismarck
September 10
Bismarck
September 11
Bismarck
September 11
Williston
September 12
Tioga
September 17-19
Watford City
September 17 - 19
Grand Forks
September 19-21
Bismarck
September 24
Bismarck
September 25
Bismarck
September 26
Bismarck
October 2-3
Williston
October 6-8
Bismarck
October 16-18
Bismarck
October 24-25
Bismarck
October 30-31
Minot
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Oil prices and rig count
August 30, 2019
WTI Crude: $55.10
Brent Crude: $60.43
Natural Gas: $2.29
North Dakota Active Rigs: 64 (unchg)
8/30/2018
-- 63 rigs
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Geoff Simon
Editor/Executive Director
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