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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.
May 30, 2014


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

 

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

 
Have a great weekend!
Louisiana Energy Conference Shares Info on Dealing with Growth

North Dakota and Texas shale growth lessons learned topped the agenda at the CPEX Connect Energy conference yesterday in Baton Rouge, LA.

 

Beth Osborne
Beth Osborne, Transportation for America, presents to attendees at the CPEX Connect Energy conference in Louisiana. As gas tax collections slow in the country, she said, reimbursements from the federal government to states for transportation projects will drop as well.

NDAOGPC Executive Director Vicky Steiner and Eagle Ford Shale Consortium Chairman Leodoro Martinez, Jr. explained planning efforts and impacts of rapid growth on their communities.

 

The chemical manufacturing plants in Louisiana are expanding while oil and gas supplies are developed in parishes like Ascension. Parish President Tommy Martinez expressed concern about the change.  Residents are concerned about crew camps and what risk they might be to their communities.

 

L. Martinez said the Eagle Ford cities have benefited from oil industry involvement in their issues.

Roadwork season begins in western ND
   - Michael Hricik, Dickinson Press - Posted May 29, 2014

State officials say 2014 could be North Dakota's biggest year for roadwork.

 

Road construction
Scenes like the one above are expected to be present in many areas of the western ND region this summer as road construction crews work to maintain critical transportation infrastructure.

This summer brings one of the state's largest construction seasons in its history, spurred by a massive influx of oil and gas industrial traffic. Bypasses will be built to divert trucks around Oil Patch cities and existing roads will be changed to fix safety issues.

 

The North Dakota Department of Transportation will spend about $800 million in highway and county road construction in 2014, according to the DOT.

 

From 2010 to 2012, the state saw a 53 percent increase in traffic in 17 oil-producing counties in the west, according to DOT. Truck traffic rose by 37 percent statewide in 2012.

 

The state has devoted $409 million to cover all costs for the construction of truck bypass routes for several western North Dakota cities, including Williston, Watford City, Dickinson, New Town and Alexander.

 

"(DOT is) really excited to have bypass work underway because it exponentially improves traffic mobility in the region," DOT Williston district spokeswoman Katie Pizza said.

 

Click here to read Hricik's full story.

Interim Committees Contemplate Tax and Tribal Issues
Two interim committees met in Bismarck this week to continue talks related to taxes, water issues, and tribal-state tax agreements. More details are below.
Taxation Committee
The interim Taxation Committee held its meeting on Tuesday this week. Major parts of the agenda concerned the continued review of twelve bill drafts related to property taxes, property assessments, and economic development tax incentives.
A bill draft that will require property assessor certification was reviewed, passed by the committee, and will potentially be considered by the 2015 Legislature. Though the proposed bill increases the training standard that assessors would be held to, there was concern that costs of training will have to be absorbed by counties, as well as the cities and townships that also employ assessors in their jurisdictions.

 

Tax statements
In an effort to establish a uniform format for property tax statements among counties, the ND Tax Commissioner's Office has developed a prototype, pictured above.

Another bill draft that was reviewed mandates interim committee review of state economic development incentives like the Angel Fund investment credits, renaissance zone credits and exemptions, wage & salary credits, oil and gas GPT and extraction tax exemptions, and coal severance and conversion tax exemptions. Representatives from the Pew Research Center will be attending the committee's July meeting to share more information. At this time, the bill draft only applies to state programs and incentives, though some committee members indicated they would like to see local economic development exemptions included in the list of those to be reviewed as well.

 

Finally, the committee discussed a 133-page bill draft that would adjust the statutory provisions regarding determination of taxable valuation. It would also replace current statutory mill rates with a property tax determination based on cents per thousand dollars of taxable valuation. Under the bill draft provisions, mills would be eliminated from the property tax equation. One mill would be changed to equal "5 cents per $1,000 of taxable valuation". According to data provided to the committee, only seventeen states, including North Dakota, use mills as property tax rates. The remaining states use some form of dollars. 

Tribal and State Relations Committee
Meeting on Thursday, May 29, this interim committee featured discussion on water issues, a Land Board study on land options around Lake Sakakawea and Lake Oahe, and a status update on tribal-state tax agreements currently in place.

Assistant State Engineer Michelle Klose began the meeting, speaking about the eligibility of tribal reservations for water projects funded by the State Water Commission (SWC). She expressed a desire to gauge the interest of tribal representatives on SWC aid to political subdivisions on the state's reservations in funding water supply projects. Klose indicated that the SWC has awarded grant funding to political subdivisions in need, typically with a 60-70% local match requirement. The SWC, she said, has placed priority on long-term, reliable, and sustainable water projects in awards that have been made. Some tribal members in attendance advocated that a tribal representative be statutorily added to the SWC in order to have a tribal perspective within the commission.

 

Lance Gaebe, State Land Commissioner, gave a report to the committee on a study of the US Army Corps of Engineers-held lands around Lake Sakakawea. The main purpose of the study was to develop different options for the Legislature concerning noxious weed control, public access to these lands, and to look into the possibility of transferring these lands away from the Corps to a different entity or individuals, along with the associated costs of transferring and maintenance. Eide Bailly was awarded the study and has conducted five local public meetings in order to gather input and ideas for developing different options. Those meetings were held in early March 2014 in New Town, Garrison, Linton, Beulah, and Fort Yates. Different approaches to the issue were suggested as a result of those local meetings. Another outcome was the finding that lake access is a major issue to consider. A general public meeting is scheduled for June 11 in Bismarck where the draft options will be developed. A revised draft of those options is expected to be presented to the State Land Board at its August meeting.

 

Tribal and state tax agreements were also discussed.  Myles Vosberg with the Tax Commissioner's Office focused on taxes like the Cigarette and Other Tobacco Products tax and the Motor Fuel and Special Fuel taxes. Regarding tribal shares from the oil and gas Gross Production Tax and Extraction Tax, Vosberg said that May 2014 distributions to the MHA Nation would be around $21.4 million and that the 2013-15 biennium average monthly distributions so far were between $19.2 and $19.3 million. Discussion also took place on the potential of tribes implementing their own sales tax, though this was indicated to require legislative approval for a tribal-state agreement.

For more information:
Krista Harju, KFYR-TV News
Mike Nowatzki, Forum News Service
Nick Smith, Bismarck Tribune
Dukart: Vision West plan has some surprises
   - Opinion piece in Dickinson Press by Daryl Dukart - Posted May 30, 2014
Daryl Dukart
Daryl Dukart

If there is one thing that is certain in western North Dakota, it is change. While much of rural America seems to stand still, the 19 counties in the Vision West ND region are experiencing nation-leading change and growth. The recently released Vision West Regional Plan for Sustainable Development outlines the region's plans to match quality of life with unmatched economic opportunity.

 

Unique to this plan is the process and the organization that has guided its development. Vision West ND is a community-level coalition of leaders and citizens who have advocated for addressing their individual community needs, and at the same time promoted cooperation, unity and volunteerism as a region. Throughout the two-year planning process, more than 2,000 citizens in western North Dakota devoted at least two hours (many devoted more than 20 hours) to develop this Regional Plan which identified five key issues that are of broadest and deepest concern to the citizens of the region: child care, emergency services, housing, transportation and water.

 

The Vision West Regional Plan and its summary can be found online at www.visionwestnd.com by selecting "Project Initiatives" then "Regional Plan" on the main menu.

 

Click here to continue reading Dukart's piece. Dukart serves as a Dunn County Commissioner and chairs the Vision West ND Consortium. 

Community's generosity eases burden for Watford City tornado victims
   - Amy Dalrymple, Forum News Service - Posted May 29, 2014

Tornado victims Felicia and Owen Grooms walked into their free hotel room to find bags full of toys and clothes for their 2-year-old boy.

 

Dennis and Jennifer Socolovitch didn't have enough money on a gift card to fully pay for new work boots and socks after Monday's tornado, and the store gave them to Dennis for free.

 

Desiree Spencer went to a Watford City pharmacy to replace prescriptions she lost in the tornado, and the prescriptions were replaced for free with a $150 check inside.

 

Tornado
This photo taken from a video provided by Dan Yorgason shows the tornado that touched down Monday at a crew camp near Watford City, ND.

Residents of the 15 campers destroyed by Monday night's tornado south of Watford City had many stories Thursday about the generosity of local residents. Several agencies set up at the civic center to provide assistance to those affected by the storm and a free spaghetti dinner for the community.

 

"It's been amazing," said Jennifer Socolovitch, of Michigan.

 

But while the families have found places to stay temporarily, those choosing to stay in North Dakota are still looking for long-term housing.

 

"Most of them need a home by Sunday, some place to go," said Meryle Vinje, who provided informal mental health counseling Thursday with Volk Human Services of Devils Lake.

...

The 15-year-old girl who was critically injured in the tornado has been released from intensive care at Trinity Health in Minot and her condition was upgraded to "good," Trinity spokeswoman Mary Muhlbradt said Thursday.

 

Eight other people were treated for injuries resulting from the tornado and released.

Sen. Heidi Heitkamp, D-N.D., toured the tornado damage Thursday, and Lt. Gov. Drew Wrigley is expected to tour the area today.

 

How to help:

The McKenzie County Tornado Relief Fund has been set up at First International Bank and Trust, P.O. Box 1036, Watford City, ND 58854. Online donations will be accepted through the North Dakota Community Foundation, or ndcf.net.

 

Click here to read Dalrymple's full story. 

North Dakota tornado prompts safety discussion
   - James MacPherson, Associated Press & Josh Wood, Associated Press
     Posted May 27, 2014

No sirens or local alert system warned an RV park housing workers in North Dakota's oil patch about a Memorial Day tornado that injured nine people and damaged or destroyed 15 trailers.

 

Even with warning, there are scant places to take cover in the wide-open plain.

Though such weather is rare in the area, officials say the twister already has prompted discussion among companies and others about how to better protect the thousands of workers who have taken to temporary homes as they cash in on the region's booming industry.

 

McKenzie County Emergency Manager Jerry Samuelson said some oil companies have contacted him inquiring about shelters. He said the county might also discuss adding conditions to the zoning laws, though it might be cost prohibitive.

 

"We never had zoning laws in McKenzie County before the oil boom and now we do," he said. "And maybe that's something that needs to be incorporated into our zoning - if you're going to put up a big man camp up there, where is the shelter?"

 

Click here to read the full Associated Press story. Also available through the link are several videos of the tornado. 

NDAOGPC Continues to Accept Applications for 2014 Scholarship Awards
ATTENTION ND STUDENTS!!
A reminder that 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

June 3, 2014

HUD and USDA will be hosting a Federal Housing Training on Tuesday, June 3rd in Fargo. As housing continues to be a top issue across North Dakota communities, this day-long training will focus on Single-Family, Multi-Family and Special Initiatives. The target audience is anyone involved in the housing industry including: lenders, realtors, home builders, elected officials, home builders, economic developers, and public housing officials.

 

There is no cost to attend the training, but pre-registration is required. The HUD/USDA training will be a great opportunity to get important updates on changes to federal housing programs and to network with other housing professionals. The training will also include a federal housing legislative update from representatives of Sen. Hoeven and Sen. Heitkamp's offices.

 

Click here to register. Click here to view itinerary. 

 

June 12, 2014

You don't need to be a rocket scientist to know that the better a gravel road is made...

the less it costs to maintain.

 

Join Ken Skorseth, SD LTAP and Gravel Guru, on Thursday, June 12, 2014 for a FREE live and on-demand webinar exploring gravel road construction best practices straight from the field (via video) including how to: assess your gravel road conditions, prepare the road, apply stabilizer, and roll and finish your unpaved roads.

 

Travel with us to the site (without leaving your office) as Ken walks us through four live, in-field videos demonstrating real-time the best practices from the field. We'll cover the best practices in how to properly assess your site's conditions, prepare the road, apply the stabilizer, and roll and finish your unpaved roads. Then, after our virtual tour, grill Ken with your questions during our live Q&A session.

 

Learning Objectives 

Attendees can expect the discussion and education of the following learning objectives:

  • Road Design: Understanding of construction to reshaping including
        shape and drainage, aggregate considerations, and alternatives
  • Road Maintenance: Understanding of grading to material
         replacement
  • Road Stabilization: Understanding of the process involved, the
        products required, and the benefits you can expect
  • Program Efficiency: Understanding of cost vs. savings, air quality
        and safety, and potential sources of funding

The free webinar will begin at 1:00pm CDT and is expect to last 1-1.5 hours. Click here to register! 

 

Gravel Roads Academy, sponsored by DustGard® Road Stabilizer, offers information and training on how to better maintain your gravel roads for superior stabilization, greater cost savings, and better air quality.  

 

Learn more  Gravel Roads Academy Website

 

June 25, 2014  

 

 

 

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: $103.11

Brent Crude: $109.67

Natural Gas: $4.56

ND Rig Count: 187

 

From the ND Petroleum Council's News Clips
for May 30, 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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