NORTH DAKOTA ASSOCIATION OF OIL AND GAS PRODUCING COUNTIES
NDAOGPC Newsletter
August 16, 2013
In This Issue
Article 1 - NDAOGPC EMS Study Provides Needed Data
Article 2 - Land Board Awards Grants to Oil Patch Schools
Article 3 - NDAOGPC Annual Meeting Registration Now Open!
Article 4 - Senator Heitkamp Hosts Housing Summit
Article 5 - ND Officials, Oil Execs Attend Water Supply Ceremony
Article 6 - The Shale Oil Boom: A U.S. Phenomenon
Article 7 - Upcoming Events
Article 8 - Oil and Gas Stats
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The North Dakota Association of Oil and Gas Producing Counties (NDAOGPC) is the trusted and unified voice for the betterment of the citizens of North Dakota and the membership of the North Dakota Association of Oil and Gas Producing Counties. Through this newsletter we strive to provide accurate, up-to-date information surrounding the energy activities throughout the North Dakota energy producing counties.
NDAOGPC EMS Study Provides Needed Data
Several areas in western North Dakota would benefit from additional emergency medical service (EMS) providers, according to a draft study commissioned by the North Dakota Association of Oil and Gas Producing Counties. Two areas in particular surfaced from the cell-driven data - areas near Alexander and Mandaree - as the "worst of the worst" under the five factors listed at the front of the study. The NDAOGPC Executive Committee is also reviewing the draft, and it's expected that the final document will be discussed at the Association's annual meeting September 26 in Dickinson.

The research is available through this link, with a visual of the study results. The Association allocated about $55,000 for the study. Ultieg Engineering used raw data to overlay current DOT road crash numbers, new population in western ND, and the ambulance drive time average of 14.7 minutes. We encourage you to review this document and send your comments to Executive Director Vicky Steiner at
[email protected].
Land Board Awards Grants to Oil Patch Schools
The Board of University and School Lands (Land Board) awarded $6.85 million on August 15 in its first round of grants to K-12 schools impacted by rapid development in the state's oil and gas counties. The Land Board has set aside $25 million in Energy Impact Grant funds for Oil Patch schools during the 2013-2015 biennium.

 

The state grants awarded by the Land Board will support 23 school districts in western North Dakota. School officials will use the funding to secure portable classrooms and affordable housing for teachers, to enhance school security systems and to address other critical needs.

 

"These grants will help school districts meet critical needs as they begin the new school year," Gov. Jack Dalrymple said. "We will continue working with school officials throughout our oil and gas counties to address the impacts of rapid growth."

 

Other state support for schools includes $13.6 million for districts experiencing rapid enrollment growth, funding to help districts meet the rising costs of student transportation and a $150 million low-interest loan program to help finance construction projects.

 

The grants approved by the Land Board today include: 
  • $1.8 million for security enhancements, portable classrooms, employee housing, traffic-flow improvements and other upgrades at McKenzie Public School District #1.
  • $804,000 for staff housing, portable classrooms, computer lab remodel and other upgrades within the Killdeer Public School District.
  • $800,000 for teacher housing at Mandaree Public School District #36.
  • $482,000 for teacher housing and security upgrade at the Divide County Public School District #1.
  • $385,000 for modular classrooms at South Heart Public School District.
  • $256,000 for teacher housing and security upgrades at Bowman Public School District.
  • $256,000 for teacher housing at Bowbells Public School District #14.
  • $281,000 for teacher housing and security enhancements at Beach Public School District #3.
  • $310,000 for school security upgrades and the development of teacher housing at Tioga Public School District #15.

For a complete list of grants approved Thursday by the Land Board go to: www.nd.gov/energyimpact.

NDAOGPC Annual Meeting Registration Now Open!
NDAOGPC Logo Registration for the ND Association of Oil and Gas Producing Counties' 2013 Annual Meeting is now available online at the Association website, http://www.ndenergy.org/AnnualMeeting.aspx.

This year's Annual Meeting will take place on Thursday, September 26, 2013 at the Ramada Grand Dakota Lodge in Dickinson, ND. A room block has been set up at the hotel.

Speaking this year will be State Treasurer Kelly Schmidt who will give an overview of oil and gas Gross Production Tax distributions and Joel Quanbeck who will share what was found in the NDAOGPC commissioned study of emergency service coverage in western North Dakota.

Additionally, we'll hear from Dept. of Mineral Resources Director Lynn Helms, and Jim Arthaud, owner and CEO of MBI Energy Services, will lead a panel of several oil and gas industry representatives in discussions on the current trends in oil and gas recovery. Terry Kovacevich, Marathon Oil; Jack Ekstrom, Whiting Petroleum; and Blu Hulsey, Continental Resources, have agreed to participate on the panel.

Members will also have the opportunity to elect county, city, and school district committee members as well as the representatives on the Executive Committee. Current Executive Committee members up for reelection are Mountrail County Commissioner Greg Boschee and City Engineer for the City of Bowman, Dan Brosz. Bowman County School District Superintendent Tony Duletski will be leaving the Executive Committee after nine years of service. Over his years with the Association, Tony has served as President, and we would like to thank him for his contribution to the members of the ND Association of Oil and Gas Producing Counties. His replacement will also be elected.

We look forward to seeing you at this year's Annual Meeting in Dickinson!
Senator Heitkamp Hosts Housing Summit
Sen Heitkamp at Housing Summit
U.S. Senator Heidi Heitkamp, standing, listens to a member of the audience at a Housing Summit in Bismarck August 15.
It is estimated that by 2025, North Dakota will need 30% more housing units. One of the key reasons for this increased need stems from the unprecedented growth of the oil and gas industry in the western part of the state. Yesterday, August 15, U.S. Senator Heidi Heitkamp held a housing summit in Bismarck seeking to gather input from U.S. Dept. of Housing and Urban Development (HUD) representatives, financial institution leaders, statewide housing developers, tribal representatives, and state and local officials on how to best address the state's housing situation.

Senator Heitkamp is a key member of the Senate Committee on Banking, Housing and Urban Affairs and is working to make sure the state has quality, affordable housing options. Guest speakers included USDA Rural Development State Director Jasper Schneider, HUD Deputy Regional Administrator Dan Gomez, ND Housing Finance Agency Acting Executive Director Jolene Kline, and a host of other officials that spoke on subjects like housing affordability, the state's increasing homeless population, current housing projects underway, and other steps being taken to bring affordable housing to more people in ND.

One success story was shared by Kline and Don Hedger, President of Killdeer Mountain Manufacturing (KMM) based in Killdeer, ND. Utilizing financial assistance provided by state agencies like the Housing Finance Agency's Housing Incentive Fund (HIF) and Law Enforcement Pilot Program (LEPP), KMM was able to construct a multi-family housing complex of 24 units. The Prairie Gold Apartments will provide two housing units for local law enforcement, units for Killdeer's nursing home employees, and housing for KMM employees at an affordable rate. For more information on what has been cited as a prime example of a public-private housing partnership, please click this link. For more information on the Housing Incentive Fund, including its recent commitment of over $20 million toward assisting affordable housing development, please click here.
ND Officials, Oil Execs Attend Water Supply Ceremony
The residents and businesses served by the R&T Water Supply Commerce Authority now have greater access to high-quality drinking water, thanks to additional supply from the Western Area Water Supply Authority (WAWSA).  The R&T system was officially hooked up to WAWSA service on Tuesday, August 13.  "WAWSA wants to thank the State Legislators, Governor Dalrymple, and the State Water Commission who continue to recognize the value and benefit of the Western Area Water Supply Project (WAWSP).  With their support, we will remain on track to provide high-quality drinking water to northwestern North Dakota communities that need service as soon as possible," says Denton Zubke, WAWSA Chairman.

For more information
The Shale Oil Boom: A U.S. Phenomenon

Other countries will have a harder time developing their shale oil and gas because North Dakota and Texas have two essential qualities.  A large rural landscape and scarce population in the landscape work to those states' advantage.  High population density areas with shale potential such as Europe will not have the same experience.  The U.S. also has private mineral ownership which allows the play to develop versus state owned resources. 

 

Those are the findings of the Geopolitics of Energy Project's Associate, Leonardo Maugeri.  

"The drilling-intense nature of the shale business will make expansion in other parts of the world improbable," he said. And, the absence of private mineral rights in most other countries outside of the U.S. will make replicating the success in the Bakken difficult.

The study, "The Shale Oil Boom: A U.S. Phenomenon," examines the potential of U.S. shale oil development, including information that explains why guerilla-style operations are good for the Bakken.

Bakken technology may change the world order of oil players including some "pain" for Canada and Venezuela before Saudi Arabia feels the pinch. The video interview with Maugeri is available here: http://belfercenter.ksg.harvard.edu/publication/23191/shale_oil_boom.html 

Upcoming Events
August 19-21, 2013 
Williams County will hold its Vision West ND planning session Monday, August 19 through Wednesday, August 21 in Williston, Ray, and Tioga. For more information on the Williams County Planning Session, please visit the Vision West ND website at www.VisionWestND.com.

August 21-22, 2013

Vision West ND Consortium meeting in Bottineau, ND. Consortium members will meet Wednesday, August 21 and Thursday, August 22 at the Cobblestone Inn in Bottineau. Items on the agenda include a review of an EMS greatest need analysis commissioned by the ND Association of Oil and Gas Producing Counties as well as extensive work toward the Vision West ND regional plan. The meeting agenda and other meeting materials is available for review by clicking here.

 

The Consortium leadership strongly encourages plan directors, members, and all interested parties to attend this meeting as the bulk of our regional planning will be conducted over these two days. We need everyone's input. Voting Consortium members who are unable to attend are encouraged to consider naming a proxy to serve in their absence. Janet Cron, Burke County's Tax Equalization Director, has been nominated to serve as the Burke County representative to the Vision West ND Consortium. Thank you, Janet, for your dedication to your county and western North Dakota! 


September 12-14, 2013
ND League of Cities Annual Conference in Bismarck, ND. A preliminary agenda and links to register for the conference are available here or by visiting the League of Cities website at www.ndlc.org.

September 16-18, 2013
The ND Petroleum Council will hold its annual meeting September 16-18, 2013 in Grand Forks, ND. The meeting will be held in the Alerus Center. Registration is set to open Tuesday, June 25. More information can be found by visiting the ND Petroleum Council website at www.ndoil.org.

September 26, 2013
Be sure to mark your calendars for the NDAOGPC 2013 Annual Meeting set for Thursday, September 26, 2013 at the Ramada Grand Dakota in Dickinson, ND. Online registration is now available at http://www.ndenergy.org/AnnualMeeting.aspx.

October 6-8, 2013
Online registration is now open for the ND Association of Counties Annual Conference, scheduled for October 6-8 at the Ramkota Hotel in Bismarck. Visit the NDACo website at www.ndaco.org for more information and to register.

May 20-22, 2014 
The 22nd Annual Williston Basin Petroleum Conference will be held May 20-22, 2014 at the Bismarck Civic Center in Bismarck, ND. There have already been over 200 hotel rooms reserved for this conference. We recommend booking the hotel rooms that you need now. Conference registration opens on January 29, 2014.
Oil and Gas Stats

ND Petroleum Council Logo  

WTI Crude: $107.50

Brent Crude: $109.90

Natural Gas: $3.40

 

 

From the ND Petroleum Council's News Clips for August 16, 2013
Please take your time to review all materials and links provided for your convenience.  We will continue to provide you up-to-date information on upcoming events and news happening in North Dakota's oil and gas producing counties!

 

Sincerely,

 

Vicky Steiner
Executive Director

Brady Pelton
Deputy Executive Director

ND Assoc. of Oil & Gas Producing Counties