North Dakota Association of Oil and Gas Producing Counties

Cook chairs the interim Taxation Committee, which is reviewing a series of bill drafts designed to simplify the property taxation process in a way that's fair and easy for taxpayers to understand. "Good tax policy can benefit an economy. Bad tax policy can hurt an economy. Uncertain tax policy can derail an economy," he said.

Rep. Boe shared that the Energy Development and Transmission Committee he serves on has commissioned a study that is looking at the infrastructure needs of western ND needed to sustain and advance the region's oil and gas activity. That committee is also looking at issues like pipeline safety, rail car shortages, and oil spill mitigation and remediation. Oehlke's committee, the Economic Impact Committee, will soon hear from the Upper Great Plains Transportation Institute on its report on county and township road/bridge needs over a twenty year period. His committee is also taking a closer look at child care needs throughout the state. So far it's found that more child care personnel are needed, in addition to higher wages and a more cost-effective way to fund facilities. Infrastructure like roads, wastewater disposal/treatment, and drinking water lines was also identified as a priority. When asked about the oil and gas Gross Production Tax (GPT) distribution formula, which distributes (GPT) revenue between the state and western ND political subdivision, Cook said, "The formula can be expected to change, as it has in the past." He added that the high oil revenues in the state have created several "golden eggs" in the state coffers. A lot of people who think they need it, he said, are lining up to get their share.

Also on the topic of child care, Kelvin Hullet, President of the Bismarck-Mandan Chamber of Commerce, spoke on his organization's work toward improving availability in the Bismarck-Mandan area. He said competitive wages are the main challenges. There's only so high a fee child care facilities can charge for their services before guardians elect to simply stay at home with their children. With a limited amount of revenue for wages, it is hard to attract quality personnel. One step that the B-M Chamber has taken to increase availability is through advocating on-site child care provision within individual businesses. Such a service could potentially be added to an employee's benefit package. Another solution that's being worked on is a partnership between Bismarck and the local YMCA. Under this potential arrangement, the YMCA would run the facility and offer spots to local employers. This would prevent employers from having to assume unnecessary liability in operating a child care facility themselves. Hullet emphasized child care's importance, especially its capacity to "impact a community's ability to recruit and retain employees."

North Dakota's Lt. Governor Drew Wrigley speaks to EDND Summer Conference attendees about the importance of continuing to expand economic development opportunities during the state's time of prosperity.

The state is at a time where economic development is critical, said Lt. Governor Drew Wrigley during his closing luncheon keynote. This, he said, is increasingly important living in a commodity market like that of ND. Such a market, heavily influenced by the prices of commodities like coal, oil, and agriculture produce, creates an even greater need to diversify the state's economy. "Other states have coal, oil, and the same price for corn," he said, "but we're innovators." Citing Unmanned Aircraft Systems (UAS) development as an example of North Dakota's ability to diversify, Wrigley commended the EDND group for working together with policy makers and others in the state to take advantage of the current situation and build up the state's workforce and infrastructure. "Economic development helps fortify our state's economic infrastructure years into the future," he said.

North Dakotans for Common Sense Conservation (NDCSC) announced the launch of a media campaign underscoring its opposition to the proposed Clean Water, Wildlife and Parks Amendment (CWWPA) on Tuesday. NDCSC is a coalition of more than 40 North Dakota industry, agriculture, business and government associations committed to common-sense stewardship and enhancement of North Dakota's natural resources.
 
The six-week campaign will include a mix of television and digital media and run through the end of July.
 
"We are launching this campaign because we want to do all we can to get the word out to North Dakotans that this is a deeply flawed measure that needs to be rejected," said Jon Godfread, vice president of governmental affairs for the Greater North Dakota Chamber and chair of the NDCSC Coalition. "We want people who are approached by signature gatherers during upcoming community events to fully understand the consequences of the measure before they decide whether or not to sign it."

Godfread said the media campaign is also being launched now in an effort to generate early awareness among North Dakota voters about the core concerns and problems with the proposed amendment before the general election campaign contests are fully underway.

The proposed amendment would divert five percent of North Dakota's oil extraction tax to a new massive conservation fund. Five percent is conservatively estimated at $150 to $200 million per year, based on projected oil production rates. That totals an estimated $4.8 billion over the 25-year life of the amendment. Under the proposed amendment, at least 75 percent of the fund must be spent each biennium.
 
"The spending requirement in this initiative means that some $3 million per week on average would have to be spent on conservation projects, regardless of needs in other critical areas like schools, our children's education, infrastructure and tax relief," said Jon Martinson, executive director of the North Dakota School Boards Association and member of the NDCSC Coalition.  "We think it's important for North Dakotans to understand the impact this amendment would have on education before they decide to sign the measure."
 
Godfread said a major concern is that supporters of the proposed constitutional amendment are being funded primarily by out-of-state special interest groups. Reports filed with the Secretary of State's office show the group received 96 percent of its contributions for 2013 and 2012 − $662,000 -- from environmental groups outside the state, like the World Wildlife Fund. Their campaign is also being run by the Washington, D.C. firm Hamburger Strategies LLC.
 
"Before North Dakotans sign the petition, it's important they understand this amendment is a money grab by out-of-state special interest groups for their pet projects," Godfread said.
 
Click here to watch the TV spot. For more information about the North Dakotans for Common Sense Conservation Coalition, visit www.NDCommonSenseConservation.com.

In response to rapid changes in how crude oil is shipped through the Pacific Northwest, Washington Gov. Jay Inslee today issued a directive to state agencies to increase the state's oil spill prevention and response efforts.
 
Washington has made significant progress in preventing and responding to tanker oil spills on Washington's waterways and is recognized for its rigorous standards and highly effective response program. But Inslee says much more work remains to address projected increases in vessel traffic as well as risks associated with increased rail traffic.
 
"In any discussion about increased movement of crude oil through Washington, the safety of Washingtonians is without question my top concern," Inslee said. "I want to know how much oil will be shipped through my state and how we can be assured the kind of tragedy that happened in Quebec won't devastate families in our communities. The federal government plays a significant role in regulating these trains, but we as a state can and will do more to make sure we're protecting our cities and residents."
 
Since 2008, rail shipments of crude oil have increased more than 40-fold nationwide, and major accidents have occurred over the past year in both the United States and Canada.
 
Inslee's directive charges the state Department of Ecology, Department of Transportation, Utilities and Transportation Commission and Washington Military Department's Emergency Management Division to conduct a thorough risk analysis along rail lines, assess the risk of crude from North Dakota's Bakken shale region relative to other forms of crude, begin developing spill response plans for affected counties and identify potential ways to coordinate with neighboring states and British Columbia.
 
Ecology will submit its findings by October 1 along with budget recommendations for funding improved safety and spill response needs related to transport of oil by rail.
 
"The people of Washington are rightfully demanding answers about how their safety will be protected as more oil trains roll through their city or town," Inslee said. "This directive is about gathering the information we need to effectively protect the health and safety of our people and our environment."

The gas tax rate for the fiscal year beginning July 1, 2014, through June 30, 2015, is .0982 per mcf.  Last year, the tax department calculated the gas tax at .0833.  Former ND State tax commissioner and U.S. Senator Heidi Heitkamp, as tax commissioner, was concerned about natural gas being wasted as a throw away product in 1991.  She supported legislation to change the gas tax from 5% to .04 with the support of the North Dakota Petroleum Council (NDPC).  Lowell Ridgeway was the president of NDPC.  Oil is still taxed at 5% under the Gross Production Tax formula and in 1980, voters added 6.5% tax on crude oil exclusively which flows to state programs.

The .04 rate first took effect in July 1991, through June 30, 1992, with the caveat that it would then be adjusted so it would rise and fall with a 12 month average of the gas fuels producer price index, commodity code 05-3 as published by the U.S. Dept. of Labor.  So, every June since 1991, the tax dept. staff do their calculation and send a letter of Gas Tax Rate Notice to gas producers, gas purchasers, and public,  announcing the new gas tax rate for the year under ND Century Code 57-51-02.2.
Since 1991, the gas tax rate has hit a high thus far of .1831 in 2009-10.  The lowest gas tax rate was in 1996-97 when it was .0345.  The gross production tax on gas produced during this time period must be calculated by taking the taxable production in mcf times the $.0982 tax rate this year, according to the tax dept. news release.

June 24, 2014
The North Dakota Governor's Pipeline Summit will take place the morning of Tuesday, June 24, at the National Energy Center of Excellence, located at 1200 Schafer Street on the Bismarck State College campus.

View a Tentative Agenda for the Governor's Pipeline Summit.

Pipeline industry leaders will be on hand to talk about their investments in building the state's pipeline infrastructure to help reduce impacts in North Dakota's oil country. Pipelines provide great opportunity for helping to:
*    reduce impact to roads and highways,
*    increase safety both on roads and product handling, and
*    provide reliable and efficient routes to key market destinations.
There is no cost to attend the summit. If you plan to attend, please take a moment to pre-register now. On-site registration the day of the event will also be available.

For those unable to attend in person, the summit will be available via video stream at www.governor.nd.gov. 
 
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.

 

WTI Crude: $106.49
Brent Crude: $114.91
Natural Gas: $4.60
ND Rig Count: 189

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,

400 East Broadway Avenue
Suite 304
Bismarck, ND 58501