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North Dakota Association of Oil and Gas Producing Counties
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Basin Bits Magazine

This semiannual magazine, published in the spring and fall, is the official publication of the ND Association of Oil and Gas Producing Counties.

To sign up to receive a copy of the magazine, please click here.

To read the latest Basin Bits edition via PDF, click this link.  
Uniform County Truck Permit System

This is a county road permit system for over-weight or over-width vehicles on county roads. Since 1986, the NDAOGPC has operated the Uniform County Truck Permit program as a service to counties and the petroleum industry.

For more information or to get permits, click here.

For the latest information on County Road Restrictions, click this link.
February 28, 2014
 

Derrick wellThank you for your continued interest in the activity of the ND Association of Oil and Gas Producing Counties.

We offer insight on the energy issues of the state and their effects on the communities in western North Dakota.

We hope that you will find this week's News From the NDAOGPC as a valuable source of information.

Have a great weekend!
Response to Forum Editorial Questioning Need for Special Legislative Session

On February 23, 2014 an editorial was printed in the Fargo Forum related to funding being provided to western ND.  I would like to provide a few facts that may change the opinions expressed on the matter.

 

The state of North Dakota returned $1.044 billion, not $2.5 billion, for several units of local government - counties, cities, townships, and schools primarily.  State offices quote the "big number" but it includes both oil and non-oil distributions.   The oil industry and all the supporting industries generate $2.5 Billion in total revenues for the state every month.  Truth be told - basic infrastructure (ex. roads, sewer and water) in western ND is not keeping up with demand and falling further behind each day those needs are not addressed.

 

Let's break down the $522 million received annually that western North Dakota currently receives as its share of the oil tax revenues generated in western North Dakota.

Counties, cities, schools    $295 million

Energy Impact funding       $120 million

County & township roads   $92.5 million

Law Enforcement                $5 million

Hospitals                               $5 million

Townships <$5 M                $4.5 million

Total                                       $522 million

 

$522 million sounds like a lot of money, but consider this- McKenzie County will receive about $53 million a year from the 5% "in lieu of property tax" oil tax.  McKenzie County has the majority of the drilling activity or about 70 rigs drilling within the county every week.  They have documented a shortfall to date of $75 million. The city of Dickinson will have over $100 million of debt accumulated in just two years, they didn't have any debt pre-impact.Other communities have similar stories.

 

The 5% Gross Production Tax formula needs to be changed so that the west can catch up.

 

The legislature funded $1.6 Billion for highways across the state.  DOT determines how it's allocated and it's for state highways only. The cities can't use it fund the much needed construction of water or sewer lines, water towers or lift stations.

 

Your editorial missed a serious issue as reported in the Bismarck Tribune on Feb. 13 - the sunset clause placed during the 2013 conference committee work on House Bill 1358.  Lending institutions will not approve additional bonds or loans to western ND hub cities because the new funding formula in HB 1358 ends June 30, 2015.  A sunset means the HB 1358 funding ends and pre-existing law takes over.That means western political subdivisions are at the end of their financial ropes.Meanwhile, the state continues to build "surpluses."  This means the cities of Williston, Watford City and Dickinson will likely miss the construction season of 2015.That means less work for ND construction firms eager to help build their capacity.

 

We believe these issues are serious enough to warrant discussion of a special session.  Your editorial board is invited to come out and see these struggles and see why an additional investment will pay dividends in the long run for the whole of ND.

- The North Dakota Association of Oil and Gas Producing Counties Executive Committee


Click the following link to view the Forum editorial 'Go slow on special oil session'. 
County Road Officials Talk Local Road Issues

Western county road superintendents and local officials exchanged ideas on best practice for gravel roads at the LTAP-organized roundtable meeting held in Killdeer Wednesday.  State DOT officials explained on federal grants that are available.  Bill Anderson, the west county road coordinator, talked about success stories in the field and the types of products being used.  The North Dakota Association of Oil and Gas Producing Counties has paid $19,000 a year for three years as part of a matching grant to hire Bill Anderson to help counties learn from each other.  Please take advantage of Bill's expertise.  A report of Bill's activity for the year 2013 is available here

NDAOGPC Executive Director Vicky Steiner also spoke to the group about an upcoming March 12 Uniform County Truck permit meeting in Watford City at Outlaw's.  The trucking industry wants to know about spring load permit fees and if the counties can work towards uniformity.  The NDAOGPC runs a uniform county truck permit system year round so that truckers can go on-line, purchase a self-issuing permit and pay for an overweight, non-divisible load permit for use on a county road.  This permit system was started in 1986.

 

Bill Anderson
Bill Anderson, NDLTAP Western County Technical Support Rep.

It's estimated there are about 121 different configurations of dust suppressants on the market.  One of the roundtable attendees suggested the would-be buyer ask for a demonstration from the sales staff to make sure their claims work with this level of truck traffic and type of soils.

 

Dave Leftwich, DOT west coordinator, encouraged the counties to learn from each other.   Stark County Highway Superintendent Al Heiser said his county saved $1 million dollars by the way they mixed a higher grade gravel with some existing stock to make it go further.   The wet weather, soil type, crush of the gravel, the application of water, and the use of health dept. approved brine water were also discussed.  Other advice:  Work with your gravel crusher to get the product that will do the job for the least cost.  Some of the counties recognize they will need to bring gravel from greater distances as they compete with the energy and construction industry for aggregate.

 

For more information on the LTAP Roundtable, click here

Housing Conference Emphasizes Need For Affordable Housing, Infrastructure
The Statewide Housing Conference, sponsored by the ND Housing Finance Agency, was held this week Wednesday and Thursday in Bismarck. Kicking off the event was a breakfast panel discussion with three members of the legislative interim Economic Impact Committee on what is working and what can be improved in terms of getting affordable housing projects on the ground.

The Housing Incentive Fund (HIF) and the Flex PACE interest buy down program are two tools that were funded by the legislature to aid in affordable housing investments. The HIF is funded through a combination of income tax credit contributions and a direct appropriation from the state's general fund. The total amount available in the incentive fund, $35.4 million, has already been committed to projects in both the western and eastern regions of the state.

Discussion also took place on the need for adequate infrastructure to precede housing developments. KayCee Lindsey, Community Development Director with the Divide County JDA, said that often developers want to know what the city will do for them before they commit to projects. Bob Humann with the Bank of North Dakota said that his organization is doing some investigation on how local political subdivisions' public finance authority could be expanded in order for them to bond for different types of infrastructure.

Elliot Eisenberg
Dr. Elliot Eisenberg shares on how as the U.S. economy improves, the lure of North Dakota may subside.
Housing will yield employment, but having available housing won't necessarily yield economic development, according to nationally acclaimed economist and keynote speaker Dr. Elliot Eisenberg. He suggested several ways in which to spur affordable housing developments. Getting the private sector to help supply affordable housing units and the possibility of imposing "impact" fees to help pay for those units were two methods he identified. He said, "You can't do impact fees forever", but the tactic would help cover some large short-term affordable housing needs. On a broader note, Eisenberg gave several pieces of advice to help continue the state's economic good fortune including improving all types of energy transportation infrastructure, capture/utilization of natural gas, diversifying the economy with value-added industries, and even focusing on attracting women, children, and families to the boom regions of the state. When that's done, he said, quality of life is also important to look at.

Scott D. Wegner from Arntson Stewart Wegner PC distributed a resource to break out session attendees entitled "Financing Options for North Dakota Cities and Counties". That publication, which provides details on financing options from Certificates of Indebtedness to Revenue Bonds, is available by clicking the link.Other presentations and materials from the housing conference are available on the ND Housing Finance Agency website at https://www.ndhfa.org/About Us/Conference.html

 

Gene Veeder
Gene Veeder, Executive Director of the McKenzie County JDA, accepts the award for Housing Production on behalf of all of those involved with the Wolf Run Village development in Watford City.
Wrapping up the two-day even was the Champion of Affordable Housing Awards Luncheon. Two awards were given to people involved in western ND housing projects. First, the Housing Production Award was given to the Wolf Run Village in Watford City. Watford City and McKenzie County has a need to hire additional staff to serve the growing population, but the lack of housing in the area made it difficult to bring new employees to the area. Representatives from the city, county, and school district formed a non-profit organization to implement the construction and operation of the 42-unit Wolf Run Village apartment complex. Of the 38 units filled, eight are occupied by law enforcement personnel, fifteen are school district employees, nine are occupied by McKenzie County employees, and six units are filled by city employees.

John Phillips
John Phillips, Lutheran Social Services Housing and pictured left, accepts the Leadership Award from Housing Finance Agency Director Jolene Kline, right, and State Agriculture Commissioner Doug Goehring, center.
Receiving the Leadership Award at the awards luncheon was John Phillips, Lutheran Social Services Housing. Phillips, who also serves on the Executive Committee of the NDAOGPC, has been a strong advocate for the HIF and has helped put in place six affordable housing projects over the past two years in western ND. Those projects are located in Williston, Watford City, Belfield, Bowman, Hettinger, and Dunn Center.

Congratulations John and all those involved with the Wolf Run Village! You have a lot to be proud of in terms of easing western ND's affordable housing crisis.
State Water Commission Approves Additional Dollars for Western ND City Water Supply Projects

The State Water Commission agreed yesterday to provide an additional $32 million in state grant funds to support critical water supply projects in three western North Dakota cities.  The commission will tap available funding within the Resources Trust Fund to provide cost-share grants for water supply projects in Dickinson, Watford City, and Williston.

 

In December, the Water Commission began work to expand a grant program so that more water supply projects qualify for state assistance. The expanded program approved by the Water Commission yesterday makes cities eligible for state grants for water supply projects based on population growth and financial need. 

 

"In the past, the grant program has primarily supported rural water systems, but it will now be possible for the Water Commission to support expansions of municipal water supply systems as well," said Gov. Jack Dalrymple, chairman of the nine-member State Water Commission.

 

As part of the expanded grant program, the Water Commission agreed to provide state funding for 35% of engineering costs for pre-construction work, 60% of construction engineering costs, and 60% of the construction costs for approved water supply projects.

 

The grants approved by the Water Commission yesterday were:

  • Dickinson - $18.4 million for new water transmission lines, a pumping station, water storage facility and other water supply infrastructure.
  • Watford City - $6.7 million for two new water towers, new water transmission lines and other improvements.
  • Williston - $6.95 million for new water transmission lines and engineering services.
Why the NDAOGPC Has Joined the North Dakotans for Common Sense Conservation Coalition
NDCSC
Kelvin Hullet, spokesman for North Dakotans for Common Sense Conservation, outlines how the proposed constitutional amendment would divert billions of dollars of state oil extraction tax revenue away from schools, education, infrastructure, and tax relief at a press conference held last week.

The NDAOGPC has agreed to join the broad-based coalition supporting North Dakotans for Common Sense Conservation. Why? It's the best way to defeat the ill-conceived proposed constitutional amendment that would commit five percent of North Dakota's oil extraction tax - conservatively estimated at $300 to $400 million a biennium - to a new fund with no clear idea of how it would be spent, yet mandate over $3 million a week on average be spent on conservation projects.

 

We all support conservation efforts and safeguarding our environment, but this measure is the wrong approach. Here's why we oppose it:

  • The supporters of this proposed constitutional amendment are being funded by out-of-state special interest groups. A report filed with the Secretary of State's office at the end of last year showed the group received 96 percent of its money from outside our state.
  • It would divert billions of dollars of state funding that could otherwise be spent on schools, education, infrastructure, emergency services and tax relief.
  • The money from this fund can be granted to state agencies, tribal and local governments, political subdivisions and non-profit groups. Some of the non-profits that will likely benefit from it would be the Sierra Club, the Nature Conservancy, the Dakota Resource Council and other radical environmental and wilderness organizations.
  • Putting this in our state's Constitution is not the proper way to fund conservation programs. Any changes to this constitutional amendment could only be corrected by another statewide vote. As the only constitutionally mandated funding provision in the state constitution, passing this measure would set a dangerous precedence.
  • With only one representative from agriculture and one from energy, the advisory board will be heavily tilted towards conservation groups without much consideration for land and mineral owners.

We are among more than 20 diverse groups that are part of this coalition backing the North Dakotans for Common Sense Conservation. We support them because we already invest over $130 million per biennium in preservation and conservation in North Dakota.

 

As its name implies, supporting this effort is just common sense.  There are better ways to support conservation programs than through an ill-advised constitutional amendment that would saddle our state with unnecessary mandated spending.

Truck-Weight Education and Outreach Program to Address Concerns From Transportation Authorities in the West
The North Dakota Truck-Weight Education and Outreach Program addresses concerns from state, county, city and township transportation authorities regarding damage from heavy trucks. Explanations are provided which explain road weights during various times of the year. The program promotes voluntary truck-weight compliance, to reduce damage to public roads and highways from overweight vehicles. The goal is to provide information and explanations to attendees on how to haul the most legal weight, without violating the truck-weight laws. How you configure your truck, with proper axle spacing and tire size makes a difference.

Topics to be covered by the event include updates on road-weight limits, classroom exercises to help attendees identify legal weights on their own trucks, road damage issues, and laws governing a variety of different weight considerations.

Space is still available for those wishing to attend. Below are three opportunities to take advantage of useful information:

Mar. 5, 2014
(8:30 - 3:00 pm Central Time) - Williston, Williams Co. Courthouse,
(Basement) 205 E Broadway

Mar. 6, 2014 (8:30 - 3:00 pm Central Time) - Williston, Williams Co. Courthouse,
(Basement) 205 E Broadway Ave

Mar. 13, 2014 (8:30 - 3:00 pm Central Time) - Mandan, Morton Co. Shop, 2916 37th St NW

Attendance at the event is free, though pre-registration is required. Visit www.ndltap.org to register today!
ND Pipeline Authority February Publication Now Available
The ND Pipeline Authority's February 2014 issue of the Pipeline Publication has just been released. You can view the issue here.

Please visit www.northdakotapipelines.com for monthly updates, maps, presentations, reports, data, and more.

 

To receive this quarterly publication directly by email, you can sign up here.
NDAOGPC Accepting Applications for 2014 Scholarship Awards
ATTENTION ND STUDENTS!!
Tscholarshiphe NDAOGPC is again sponsoring a scholarship program for students in North Dakota focusing on energy-related degrees. Students who have completed 12 credit hours or more are welcome to apply for one of six scholarships that will be awarded in August 2014. Applicants should be pursuing degrees in engineering, chemistry, geology, petroleum sciences or other studies directly related to the oil and gas industry. Invitations to apply for the Association's 2014 scholarships were recently sent to all North Dakota colleges, universities, and vocational schools. We strongly encourage all readers to share this opportunity with anyone they believe may qualify. The application can be downloaded HERE.

Last year, the Association awarded a total of $10,000 to six deserving students. Don't miss this great opportunity to gain financial assistance for an industry related education! The deadline for application submission is June 15, 2014.
Upcoming Events

March 6, 2014

The Vision West ND Consortium will meet in Williston on March 6, beginning at 8:30 am CST. The meeting will be held in the conference room at the Williams County Planning & Zoning building, which is located at 302 E. Broadway in downtown Williston.

 

The purpose of the meeting is to finalize the recommendations in the Vision West ND Regional Plan. Sections still needing review and approval are EMS, Human Services, Municipal Infrastructure, Natural Gas Availability, Pipelines, Planning and Zoning, Public Safety, and Public Health. The Housing and Organizational Structure sections must also be finished.

 

Vision West ND Consortium members are reminded to please contact Deb Nelson via email at deb@dlnconsulting.com no later than noon on March 2 to let her know if they will or will not be attending the meeting. A quorum of Consortium members is essential for the plan completion.

  

March 12, 2014

NDAOGPC County Commissioners, County Sheriffs, Road Superintendents/Engineers:

 

The spring meeting of the NDAOGPC Uniform County Truck Permit Committee will be held on Wednesday, March 12, 2014 at 11:00 AM CT at Outlaw's Bar and Grill in Watford City, ND. A complimentary lunch will be served. The committee will review the Xcess Permit progress and discuss township roads, as well as other agenda items. 

 

Please RSVP by emailing Permit System Operator Janet Sanford at janet@ndteamworks.com.

 

April 2-4, 2014

The DUG Bakken and Niobrara Conference and Exhibition is scheduled for April 2-4, 2014. The event comes one month earlier this year. Last year's event attracted more than 2,000 attendees, 38 sponsors, and 200 exhibitors. The conference focuses on the Bakken, the emerging Niobrara, and oil- and liquids-rich resource plays throughout the Rockies. Check out more information on the event at www.dugbakken.com.

 

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 opened this week, with every available event exhibition booth being booked within four minutes of registration going live. More information on the Williston Basin Petroleum Conference is available here

 

September 18, 2014
Be sure to mark your calendars for the 2014 Annual Meeting of the ND Association of Oil and Gas Producing Counties to be held Thursday, September 18, 2014 at the Grand Williston Hotel in Williston, ND. Information on hotel room blocks, the registration process, and sponsorship opportunities will be shared as we get closer to the event.
Oil and Gas Stats

 

ND Petroleum Council Logo

WTI Crude: $102.28

Brent Crude: $108.58

Natural Gas: $4.48

ND Rig Count: 194

 

From the ND Petroleum Council's News Clips
for February 28, 2014.
Please take your time to review all materials and links provided for your convenience. We at the ND Association of Oil and Gas Producing Counties 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 Association of Oil & Gas Producing Counties 
NDAOGPC | 701-751-3597 | www.ndenergy.org

400 East Broadway Avenue
Suite 304
Bismarck, ND 58501

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