NORTH DAKOTA ASSOCIATION OF OIL AND GAS PRODUCING COUNTIES
NDAOGPC Newsletter
August 30, 2013
In This Issue
Article 1 - Continental Resources Estimates Bakken Oil Play to Be Larger Than Previously Thought
Article 2 - U.S. House Majority Leader Visits Western North Dakota
Article 3 - State Representative Talks Infrastructure
Article 4 - Land Board Awards Over $27 Million in Energy Impact Grants to Western Airports
Article 5 - Congressional Policy Summit Features Discussion on Energy
Article 6 - NDAOGPC Annual Meeting Online Registration Available
Article 7 - Advisory Commission on Intergovernmental Relations Holds First Interim Meeting
Article 8 - Bakken Briefly
Article 9 - Upcoming Events
Article 10 - 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.
Continental Resources Estimates Bakken Oil Play to Be Larger Than Previously Thought
Using a dessert metaphor to describe the Bakken energy play, officials from the North Dakota Department of Mineral Resources and industry experts are finding the oil-producing cake to be deeper and more layered all the time.

"If you look at the Bakken like a layered cake, we're starting to see how big and wide this cake is," said DMR spokeswoman Alison Ritter. "What we're seeing is companies are beginning to experiment with how many layers this cake is going to have."

 

For More Information 

U.S. House Majority Leader Visits Western North Dakota
Rep. Eric Cantor In the middle of a crew camp that houses North Dakota oil workers, House Majority Leader Eric Cantor got an earful about agriculture.

Cantor, a Republican from Virginia, toured the Bakken on Wednesday to see North Dakota's energy production firsthand, but he also talked one-on-one with Cando farmer Gene Nicholas about the state's other leading industry.

 

For More Information 

State Representative Talks Infrastructure
Rep. Kempenich The North Dakota Soybean Grower magazine highlighted Rep. Keith Kempenich, Bowman, ND, and his thoughts on road infrastructure in its September 2013 issue. Kempenich has been in the legislature since 1993, and he currently serves on the Appropriation Committee. The oil surplus has brought funding for both oil and non-oil county roads that needed maintenance before the oil boom. Kempenich commented that the county roads "were never built for triple-axle, tandems or semis that are being used today." As long as we have funds available, we're hoping to keep doing this, he said, referring to state funding for local roads.

On fresh water from the Missouri River and where most of North Dakotans live, he said, "We're still going to wind up pumping water east."
Land Board Awards Over $27 Million in Energy Impact Grants to Western Airports
The Board of University and School Lands (Land Board) awarded more than $27 million on Thursday, August 29 in its first round of grants to airports impacted by rapid development in the state's oil and gas counties. The Legislature provided $60 million in Energy Impact Grants for the 2013-2015 biennium to help western North Dakota airports fund projects to address increased growth and activity.

Minot International
Minot International Airport was awarded over $21.2 million in energy impact grants to address the impacts being felt on commercial air travel due to the oil and gas development.
The Land Board yesterday awarded state grants to eleven airports in western North Dakota, including Minot, Dickinson, Williston, Bowman, Crosby, Kenmare, Killdeer, Mohall, New Town, Stanley and Tioga. The funding will be used for the construction and reconstruction of facilities, runways, taxiways, and other maintenance needs. Each project requires a local-federal cost share and state grants will only be distributed when the other funding has been secured.

"Airports in western North Dakota are experiencing record increases in boardings and activity, requiring additional investment in new and expanded terminals, runways and other maintenance needs," said Gov. Jack Dalrymple. "These state grants will help airports in our oil and gas counties address the impacts of rapid growth and enhance air travel opportunities for our citizens."

 

Dalrymple is chairman of the five-member Land Board. Other Land Board members are Attorney General Wayne Stenehjem, Secretary of State Al Jaeger, Superintendent of Public Instruction Kirsten Baesler and State Treasurer Kelly Schmidt.

 

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

 

To date, including the grants awarded Thursday, the Land Board has committed more than $147 million in state Energy Impact Grant funds and will award a total of $239.3 million in grants during the 2013-2015 biennium. The grants are used to address a wide range of needs, including enhancements for law enforcement agencies and emergency services; upgrades to county and city infrastructure and support for growing schools.

For More Information 
Congressional Policy Summit Features Discussion on Energy

The Greater North Dakota Chamber held their annual Congressional Policy Summit Monday in Fargo taking on four topics:  the U.S. economy, healthcare, energy and immigrant workers.


Congressional Policy Summit
A panel at the GNDC Congressional Policy Summit addresses energy issues.
Martin Regalia, Senior Vice-president and Chief Economist U.S. Chamber of Commerce, said that the United States economy is worse than it looks and it's "not getting better fast enough to catch us up to where we used to be."The most disengaged working group are recent college graduates 19-25 years of age with college debt and no job prospects, likely living at home with their parents. "We are letting our seed go to rot," Regalia commented on not getting business up on its feet so that this age group can get the jobs they need to succeed. Ben Bernanke's expected retirement also causes some uncertainty.

In healthcare topics, Ruth Krystopolski from Sanford Healthwarned the group that the federal system to advance the new Affordable Care Act (ACA) health care system is not ready for the looming October 1 deadline. She said expect some "bumps" or pushback on deadlines. In her estimation, it will take five to ten years to fully implement because the system for all the stakeholders to exchange information is not ready. The number of part-time jobs has also risen, and it's unknown if that's directly linked to the Affordable Care Act provisions.

In energy, Perry Pearce of Conoco Phillips said the group should thank their congressional elected officials because they work as a team and support the state's resources. Former Public Service Commissioner Tony Clark said natural gas is the dominant fuel of choice in the New England states.

On immigration, the U.S. Chamber supports five proposed solutions:
1. Green Card Reform

2. Temporary Work Visa programs - H1B Visas for highly skilled workers, the cap could be 165,000 workers

3.  E-verify so employers know that the employee is legal 

4.  Legalization through earned lawful status so that illegal immigrants begin paying taxes and earning their status

5. Border control to stop additional illegal immigrants from crossing into the U.S.

 

Bill Blazer, Senior Vice President for the Minnesota Chamber, said that immigrants have a high percentage of entrepreneurship. They might have a short cost to a community, but the long run outweighs the short cost in terms of their output over time.

 

Senator Heidi Heitkamp, Senator John Hoeven, and Representative Kevin Cramer also addressed the chamber members. The federal farm bill and the Keystone XL pipeline were two of the topics they covered. All congressional leaders agreed that the farm bill was a priority for them.

Click below for links to Congressional Policy Summit presentations:
Economic Outlook -
Martin Regalia, U.S. Chamber of Commerce Chief Economist
Immigration Reform - Bill Blazer, Minnesota Chamber of Commerce Senior VP

For More Information
NDAOGPC Annual Meeting Online Registration Available
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. We encourage everyone to book their hotel rooms as soon as possible; the room block will close on September 6.

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 on the Executive Committee will also be elected.

We look forward to seeing you at this year's Annual Meeting in Dickinson!
Advisory Commission on Intergovernmental Relations Holds First Interim Meeting
A group of state legislators and civic leaders, making up the Advisory Commission on Intergovernmental Relations (ACIR), met at the State Capitol on Wednesday, August 28 to discuss its prerogatives and objectives for the interim. The ACIR is given statutory authority to serve as a forum for the discussion of intergovernmental problems and their potential resolutions. Legislative Management has given priority to two specific issues it deemed necessary for the ACIR to study during the interim:
  • The feasibility and desirability of making political subdivision budget information accessible on the state budget database website as well as finding better ways to inform taxpayers regarding political subdivision budget or levy deliberations and legislative property tax relief.
  • Whether political subdivisions can become more efficient and effective to reduce costs to taxpayers.

Representatives of the ND League of Cities, the ND Association of Counties, the ND School Boards Association, the ND Township Officers Association, and the ND Recreation and Park Association were each given the opportunity to address the commission and answer questions pertaining to the commission's study objectives.

 

In addressing political subdivision efficiency, the question of K-8 school districts (especially those in smaller towns) was brought forward. Several citizen members of the commission including Slope County Commissioner Scott Ouradnik and ND School Boards Association Executive Director Dr. Jon Martinson commented that smaller schools play a vital role in rural North Dakota. The point was made that if and when patrons of a particular school district determine that their district is no longer operating efficiently, it has the potential to opt for consolidation with another school district.

 

Comments were also heard regarding the usefulness of political subdivision budget information and the inclusion of that information on the state budget database website. Enabling legislation was passed during the 2013 legislative session to allow political subdivisions to include their budget data on the state budget database website. To date, no political subdivisions have utilized that website in sharing its budgetary data, though many of them publish their budget information on their own websites. According to Pam Sharp, Director of the Office of Management and Budget (OMB), the task of gathering budget information from each of the more than 3,000 political subdivisions within the state would be less than easy. It was due to this fact that a similar piece of legislation mandating that all political subdivisions submit their budget information to the state budget database failed during the 2013 session. Commission Chair, Representative Brenda Heller, made note of the fact that most citizens who are inquisitive as to where their local tax dollars are being spent will more often than not contact their local taxing authorities directly instead of searching within a state database.

 

Testimony as provided by Assistant Director of the ND Association of Counties, Terry Traynor, on the two study areas is accessible in the link below. Also included is Traynor's testimony regarding additional areas of study counties would like to see the ACIR address during the interim.

Concerning Areas of Study
Concerning County Budget Information and State Database
Concerning County Efficiency and Effectiveness
Bakken Briefly

Watford schools see more students

With 122 more students than on the last day of school last year, McKenzie County school officials are wondering where to put them all.

As of Aug. 16, the district was looking at a record enrollment of 980 students, up 122 from last year.

 

Crosby peddler turns out to be real

Some Crosby residents got a scare when a rumor circulated that a man selling books was actually connected to human trafficking.

Divide County Deputy Zach Schroeder said the rumor originated in Ray, then spread like wildfire. After calls to the sheriff's office, the salesman was checked out and found to be representing a legitimate company.

 

New hospital in the works

Approval of a $500,000 contribution from the Watford City Roughrider Fund will pave the way for financing a new $55 million medical clinic and hospital.

 

(Compiled by Steve Andrist, former publisher of newspapers in Crosby and Tioga.)

Upcoming Events
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: $109.25

Brent Crude: $115.71

Natural Gas: $3.58

ND Rig Count: 182

 

 

From the ND Petroleum Council's News Clips for August 29, 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