NDAOGPC
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.
March 14, 2014
 

Thank 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 and happy St. Patrick's Day!
ND Budget Section Hears from State OMB, Attorney General, and Hub City Representatives
Pam Sharp, director of the state Office of Management and Budget, shared information on the status of the state's general fund and major special funds with the state legislature's Budget Section on Wednesday. Preliminary numbers for February 2014 show general fund revenues and transfers to be at over $1.97 billion, 6.3% ahead of the forecasts made at the end of the 2013 legislative session in May 2013. More details on the general fund status is available in Sharp's presentation. A Bismarck Tribune story by Nick Smith on the general fund surplus is also available through this link.
Budget Section
Members of the Legislative Budget Section discuss the status of the state's general fund in the Senate Chamber of the State Capitol on Wednesday.
ND Attorney General Wayne Stenehjem also reported on his office's use of one-time funding appropriated last session through HB 1358. That bill provided a total of $16.6 million for criminal justice oil impact funding in the 2013-2015 biennium. Of that amount, $7 million was provided specifically for oil producing county sheriffs' offices through energy impact grants. The remaining $9.6 million was allocated to the Attorney General's office to be used to address crime-related activities originating in oil counties. His report, available here, provides a summary of how the allocated dollars have been used thus far. Stenehjem also provided a specific breakdown of how criminal justice grant dollars have been dispersed so far in the biennium.

Also providing reports to the Budget Section were representatives of the three hub cities in the oil producing region: Williston, Dickinson, and Minot. Williston City Commissioner Brad Bekkedahl, who serves as the city's finance commissioner, reported that his city had suffered two bond downgrades in the last two years, largely due to the amount of debt the city has assumed. In a 50+ page report, Bekkedahl outlined the many capital improvement projects on the city's priority list and the costs associated with them. Total infrastructure project costs for 2013-2014, he said, totaled almost $225.9 million. His full presentation can be accessed here.

Matt Kolling, Assistant Administrator for the City of Dickinson, also presented on activity in the city. In the last three years, Kolling said, building permits totaling over $1 billion have been issued. Along with this unprecedented growth comes a huge need to provide public services. Dickinson has adjusted it capital improvement plan to include the addition of 28 new projects, amounting to around $221 million worth of new infrastructure in the current biennium. Expansion of waste water systems, water lines and towers, a $16 million public works facility, and several upgrades to city streets are among those projects currently being developed.
The City of Minot, represented at the Budget Section meeting by City Finance Director Cindy Hemphill, also reported significant infrastructure upgrades. Hemphill described how the hub city funding secured by HB 1358 was being utilized by the city to address costs associated with large scale growth. Some of the projects currently being developed include a $77 million waste water treatment plant and a $6.4 million sewer improvement project. The city's 2014 capital improvements plan calls for over $128.3 million in water/sewer, street, airport, and other improvements. Hemphill was clear in pointing out that all hub city funding gained through oil and gas gross production tax distributions was being used to finance infrastructure related to growth. None of those funds have been deployed to flood recovery. Minot's presentation is available through this link.
Uniform County Truck Permit System Discusses Uniform Spring Load Restrictions

Oil industry representatives joined the spring meeting of the Uniform County Truck Permit System advisory committee on Wednesday, March 12 in Watford City, ND.  About 37 county sheriffs, road superintendents, and county commissioners discussed spring frost restrictions, enforcement, and permit fees. The oil industry spokesmen said the industry, in general, want legal limits enforced. They also feel it would be beneficial to know about extra spring permit costs in advance. This, they said, could be achieved through uniform spring frost restrictions across the region in which they operate. 

 

Art Brown, left, and Leon Keator, both of MBI Energy Services, attended the spring meeting of the NDAOGPC Uniform County Truck Permit System advisory committee in Watford City.

The ND Association of Oil and Gas Producing Counties' truck permit system provides a uniform permit cost during the year. However, during the spring frost season, when roads are particularly susceptible to damage from heavy loads, some counties add additional fees. Williams County, for the past two years, has implemented a $1,000 permit fee per truck to run 7 tons on a 6 ton road. This fee has generated $2.3 million in revenues, and the money was spent with Williams County townships. Mountrail County is following suit. The group decided that a uniform permit for spring should be considered for spring 2015 on the 6 ton roads. It will be discussed again in the fall meeting.

 

In other business, the group voted to recommend to the Association's Executive Committee to allow township roads to be included in the permit system as long as the townships and counties agree upon the administration of the revenue.  The group is recommending counties determine a percentage of their roads that are township roads - those numbers are already calculated by the state treasurer's office - and then in January of each year, the county would share the permit money collected for the calendar year with the townships.

 

Sheriff Clarence Tuhy expressed concern about states attorney's lowering fines in plea agreements because the companies then challenge in other counties and it brings a chain reaction.

 

Billings County Sheriff Dave Jurgens was re-elected chairman for 2014 and Williams County Sheriff Scott Busching was elected vice-chairman.
News on Potential Special Legislative Session
Governor sounds out oil patch leaders on special session
   - Nick Smith, Bismarck Tribune

Prior to his planned April decision whether to call a special session to deal with oil patch needs, Gov. Jack Dalrymple says the key issue is determining the timeline in which they need to be addressed.

 

Following a formal call in February by Democratic-NPL Party leaders for a special session, Dalrymple has been meeting with city and county leaders from oil patch counties. Democratic leaders say dealing with the infrastructure needs in western North Dakota now can alleviate issues in the long run.

 

"I want them to be able to tell me directly ... what we can deal with immediately," Dalrymple said. "It's more of a matter of the timeline more than anything."

 

Dalrymple said he's held half of his meetings with local leaders and intends to reserve judgment until he's through.

 

For more information 

ND governor expects April decision on special session
   - Mike Nowatzki, Forum News Service

Gov. Jack Dalrymple said Monday he expects to decide sometime in April whether to call the state Legislature into special session to address pressing needs facing cities and counties affected by western North Dakota's oil bonanza.

And while he wouldn't say which way he's leaning, the Republican governor highlighted several short-term fixes - including a new program providing millions in loans from the state-owned Bank of North Dakota - that could avert having to call lawmakers back to Bismarck as requested by Democratic-NPL Party lawmakers.

 

During a sit-down interview with Forum News Service, Dalrymple said he's been meeting with western North Dakota mayors, county commissioners and legislators about their infrastructure needs in 2014 and 2015. He said he still has several meetings left before reaching a decision.


For more information
Voters go huge for Watford City school bond
- Lauren Donovan, Bismarck Tribune

Watford City voters came out overwhelmingly Tuesday for a bond issue to finance construction of a new high school.

 

The vote came in 90 percent in favor of issuing $27 million in bonds, with 748 in favor and only 83 opposed, Superintendent Steve Holen said. Bonds require 60 percent approval.

 

Earth moving equipment wasn't quite rumbling in the background of Holen's victory phone call Tuesday night, but it will be just as soon as the frost thaws this spring.

 

"We told ourselves if this passed we wouldn't waste any time. Our (construction) plans are set, and we can hit the ground running," Holen said.

 

The plan is to use the present high school for middle school students to make room for the oil boom enrollment, now swelled to 1,070, twice the number three years ago.

 

School board president Pam Ramage said the town put skin in the game and heart and soul, too.

 

"People came out in huge numbers to support this. We're so fortunate to have these opportunities to have a terrific school for students and our parents," she said.

 

The total project will cost $50 million and should be ready by fall 2015.

Dept. of Mineral Resources and ND Pipeline Authority March Publications Now Available

North Dakota's oil production saw less than a 1% increase in January according to the most recently released Director's Cut publication from the ND Department of Mineral Resources (DMR). DMR Director Lynn Helm described January production as "somewhat disappointing" in a March 13 Forum News article. One reason for the less than expected production stems from sustained wind speeds in January, which prevented some well completion work.  

 

The ND Pipeline Authority's March 2014 issue of the Pipeline Publication has also 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
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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 27, 2014

Join the ND Petroleum Council, its members, and community leaders for an open house in Williston on March 27 to discuss the oil and gas industry, impacts, and other topics. The event will be held from 7-9am CDT at Grandma Sharon's located at 1501 16th Street West in Williston, ND. All are welcome. 

   

April 2-4, 2014

The Developing Unconventionals (DUG) Bakken and Niobrara conference and exhibition is the industry's premier event focused on the Bakken, the emerging Niobrara and oil- and liquids-rich resource plays throughout the Rockies. From upstream drilling and completions to midstream gathering and transportation, Rockies producers enjoy out-sized potential to maximize returns from oil-heavy shale plays and economical tight-gas development. The 2014 DUG Bakken and Niobrara speakers control 3+ million leasehold acres, nearly 15 billion bbls of oil, and will produce over

500,000 BOPDthis year.  Attend to hear these industry leaders describe how they're staying competitive in this booming region.
Register today using promo code NDAOGPC and save $200 off the full conference price. (Not valid for exhibit-hall-only passes)
 

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. More information on the 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: $101.67

Brent Crude: $111.47

Natural Gas: $3.77

ND Rig Count: 185

 

From the ND Petroleum Council's News Clips
for March 14, 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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