August 2, 2019

K-12 Education Funding Gets Its First Look

 

Providing adequate and equitable funding for K-12 education was a hot topic for the 2019 Legislature, and it will be again in 2021. An interim study committee charged with examining the complicated funding formula held its first meeting this week.

The formula establishes a weighted average daily membership on which funding to each of the state’s 178 public school districts is based. The per pupil state aid payment was increased by the legislature to $9,839, but not every district receives that amount. That’s because the formula adjusts the amount based on more than a dozen weighting factors.

State law requires each district’s local contribution to include at least a 60-mill property tax levy, which creates problems for western districts that have experienced big increases in property values. The property tax rate in the McKenzie County School District is well below 60 mills because valuations in Watford City have skyrocketed in recent years. The increase in valuation prevented the district from maintaining a 60-mill levy because school property tax increases are capped at 12 percent a year. But because of the requirement, McKenzie County Superintendent Steve Holen said the district will have to increase property taxes, putting a much greater burden on local residents.

Click here to listen to Holen's comments.

Holen believes the district’s in-lieu-of dollars (GPT revenue) should be considered part of its local contribution because the very nature of oil taxes is that they are paid instead of property taxes.

The equity in funding question becomes even more complicated when considering the cost of building new schools, which is not factored into the funding formula. 

“There is no equity in buildings,” said Senator David Rust, R-Tioga. “I still think the state is going to have to look at some outright grants to school districts that are experiencing rapidly increasing enrollments that have to build buildings on top of buildings on top of buildings, and have taxpayers that say, ‘enough, I'm not going to vote for them anymore,’ and the kids keep coming and there’s no more room.”

Achieving fairness in the formula depends on what is included in the formula’s weighting factors. The study committee will meet five or six more times to try to determine the answer to that question and others during the 2019-20 interim. 

Williston Area Schools to Meet with Governor

All six school districts in Williams County are expected to be in attendance at an August 12 meeting with Governor Doug Burgum, Lt. Gov. Brent Sanford, and State School Superintendent Kirsten Baesler.

The meeting is being organized to try to find a solution to the dilemma facing Williston District #1, which is by far the largest district in the county. Twice this year bond issues to expand Williston High School and add elementary classroom space have been narrowly defeated.

Williams County #8 voters also defeated a bond issue that would have funded construction of a high school and two elementaries. However, voters in the Nesson School District which includes the city of Ray, overwhelmingly approved a $10 million bond issue in May to fund the addition of six classrooms to the high school, as well as a career and tech ed area and storage space.

The stated goal of the meeting is to find areas where the districts can collaborate to meet the need for classroom space. Click here to see a map of the Williams County school districts.

____________________________________________________

Dickinson Sets September 10 School Bond Vote

Voters in Stark and Dunn County who are patrons of Dickinson Public School District No. 1 will head to the polls September 10 to decide the fate of an $89 million bond issue.

Proceeds from the bonds would be used to fund construction of a new high school and construct and equip other school buildings. The amount of the proposed bond issue is less than a $115 million proposal that voters rejected in May. School officials said responses to a community survey indicated voters wanted a less expensive plan for the new high school. The new proposal does not include money for construction of a future elementary school.

NW Landowners Sue Over Pore Space Bill

The Northwest Landowners Association filed suit against the state of North Dakota this week over a law passed by the 2019 Legislature aimed at clarifying rights to "pore space."

The law which took effect August 1 was created by the passage of SB 2344, which defines pore space as "a cavity or void, naturally or artificially created, in a subsurface sedimentary stratum." The space can be used to store saltwater that results from oil and gas production, and it would also apply to the injection of carbon dioxide into old-bearing formations to stimulate production.

The landowner group's attorney, Derrick Braaten, said the new law amounts to a "takings" because it could mean some landowners who are entitled to compensation for disposal of wastewater in their pore space may no longer receive it.

Click here to listen to Braaten's comments.

Braaten made his comments during an interview along with NWLA ChairmanTroy Coons on the radio program, What's on Your Mind. Click here and advance to the 29:40 mark to listen to the full interview.

In a statement issued after the lawsuit was filed, the ND Petroleum Council said, "Surface owners with land where oil and gas operations occur will continue to be compensated for surface damages under the 1979 statute. Surface owners that lease pore space for dedicated CO2 storage will be compensated for that activity per the 2009 statute."

Some landowners testified in support of the new law during the legislative session. Nathan Brenna, a McKenzie County landowner and former attorney, said he's never heard of a case where a landowner was unable to host a disposal well because the pore space below his land had been damaged or made unusable by migration from other wells. But Brenna said that is basically the claim that is being made.

Click here to listen to Brenna's comments.

Brenna was interviewed Tuesday on the radio program, Energy Matters. Click here and advance to the 29:58 mark to listen to the full interview.

Other North Dakota interests supported the legislation because they believe it provides certainty to CO2-enhanced oil recovery project like that proposed by Denbury Resources in Bowman County.

Click here to read the complaint. Click here to read the Northwest Landowners' news release about the lawsuit. Click here to read the North Dakota Petroleum's Council's response to the suit.

Hwy 83 Closure Planned August 12 for Coal Project

Highway 83 will be shut down August 12 between Underwood and Washburn to accommodate removal of a coal conveyor across the highway.

The NDDOT will close to highway to thru traffic for a 24-hour period. The closure is to allow the Falkirk Mining Company to remove the cable belt bridge that crosses over the highway.

Signed detours will be in place.

Northbound traffic on Hwy 83 will need to exit at Washburn and take Hwy 200A north to Hwy 200, traffic will then take Hwy 200 west to Underwood where it can re-enter Highway 83.

 

Southbound traffic on Highway 83 will need to exit the highway at Underwood and take Hwy 200 east to Hwy 200A, traffic will then take Hwy 200A south to Washburn where it can re-enter US 83.

The NDDOT reminds motorists to slow down, follow traffic signage and use caution in the work zone.

North Dakota is in the Top Five

4th Best State for Business Start-Ups 

A popular online financial resource, Wallethub, has ranked North Dakota as the fourth best place to start a business.

The ranking, which included all 50 U.S. states, covered three major categories including Business Environment in which North Dakota ranked second behind only Texas. The other categories were access to resources and business costs. Across the three categories there were 26 weighted factors that determined the final rank. 

It was welcome news to North Dakota communities where economic diversification and business growth remain key priorities. The information available in the report is valuable to potential business startups as well as economic developers and city officials. Click here for the detailed ranking of all states. 

Western Reps Named to Water Panel

Gov. Doug Burgum appointed four members to the State Water Commission this week, including a member to fill the newly created seat representing the Little Missouri River basin in southwestern North Dakota.

The governor appointed Steven Schneider of Dickinson to a six-year term in the new seat, which also represents the upper Heart River basin and upper Cannonball River basin. Schneider is a financial advisor and Army veteran who has served as a director and treasurer for the Southwest Water Authority since 2010.

Burgum also appointed Jay Volk of Bismarck to a six-year term to represent the lower Missouri River basin. Volk replaces Leander “Russ” McDonald, who did not seek reappointment. Volk is manager of health, safety and environmental services at BNI Coal in Center. He also has served on the Lignite Energy Council’s environmental task force.

Current members Richard “Dick” Johnson of Devils Lake and Katie Hemmer (formerly Andersen) of Jamestown were reappointed to six-year terms on the commission. Johnson, a retired business owner and current mayor of Devils Lake, represents the Devils Lake basin. Hemmer, a former mayor of Jamestown and current director at Jamestown Regional Airport, represents the James River basin.

The next meeting of the Water Commission is Thursday, August 8. Click here for the agenda and meeting materials. Click here for more information about the commission.

WDEA Exec to Host Energy Matters Radio Show

WDEA Executive Director Geoff Simon will be the guest host next week on the radio program,  Energy Matters. 

The list of guests to appear on the show with Simon include Minot Mayor Shaun Sipma and Western Area Water Supply Authority Executive Director Curtis Wilson.

Simon will also interview Ed Woods, business development manager for North Dakota LNG, who will describe a new endeavor to recycle produced water. Woods and Hydrus Energy Solutions will be showcasing the Purestream IGF+ and FLASH, two commercially available technologies designed to manage produced water, in a demonstration scheduled August 12 near Alexander.

Invitations are pending for two other guests, and as usual the program will feature interviews with a representative of the lignite industry, an individual from a North Dakota educational institution, and a member of the ND Public Service Commission.

Energy Matters is broadcast on KFYR and KLTC Radio from 3:00 to 5:00 p.m. (CT), and is rebroadcast Saturday on WZFG and KTGO Radio.

Effort to Rehabilitate Critical Deer Habitat 

Volunteers Needed in Southwest North Dakota

The North Dakota Petroleum Foundation, in cooperation with the ND Petroleum Council and the Mule Deer Foundation, is hosting an industry workday to rehabilitate critical deer habitat in southwest North Dakota.

 

The workday is scheduled for Thursday, August 22, with the project to start at 7:00 a.m. 

Additional equipment is needed including two skid steers with fence pulling attachments. The work will take place on a private ranch north of Medora. 

For more information, click here. To volunteer, click here.  

Volunteers Needed for Adopt-A-Highway Program

The ND Department of Transportation's Adopt-A-Highway program is seeking volunteer groups to clear litter and debris from state highways.

NDDOT coordinates the effort from April to September each year. Volunteer groups are vital to the program and help minimize roadway maintenance costs and save taxpayer dollars. The group’s name will be placed on an Adopt-A-Highway sign along the section of roadway they have adopted. 

Over 200 groups volunteered to clean up more than 700 miles of roadway across the state last year.

For guidelines and the volunteer form, click here.  

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

Bakken oil and natural gas producers have spent $15 billion in natural gas gathering and processing infrastructure from 2006 to 2018 with much more in the works for 2019. The investments help to reduce natural gas flaring. Energy production companies have an economic incentive to capture the gas, but it takes a lot of money to do it.

Source: ND Department of Mineral Resources

Upcoming Events

August 8

State Water Commission

Bismarck

August 12

Interim Commerce Committee

Bismarck

August 14

Energy Development and Transmission Committee

Bismarck

August 14-15

2019 Governor's Summit on Innovative Education

Jamestown

August 15

Legacy Fund Earnings Committee

Bismarck

August 19

PSC Formal Hearing on Ruso Wind Project

Velva

August 25-27

Interstate Oil & Gas Compact Commission Annual Meeting

Medora

August 26

Interim Natural Resources Committee

Bismarck

August 27

Tribal Taxation Issues Committee

Bismarck

August 28

ND Oil Pac Golf Tournament

Medora

September 5 

Workers' Compensation Review Committee

Bismarck

September 10  

Greater North Dakota Chamber Policy Summit 

Bismarck

September 11

Northwest North Dakota Job Fair

Williston

September 12 

Vision West Consortium Meeting  

Tioga

September 17-19

ND Petroleum Council Annual Meeting

Watford City

October 2-3

Bakken Oil Product & Service Show

Williston