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Oil rep: Rules will deter drilling
Oil regulations that take effect in April will discourage drilling in North Dakota, and at least one operator is already moving south, according to an industry representative.
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Dickinson rental availability nearly zero
The chances of getting an apartment in Dickinson are slim-to-none, and that's if people coming into the area can afford the rent, officials said Tuesday. "Rents are sky high," said Michael Carbone, North Dakota Coalition for Homeless People Inc. "Minot, Williston, Bismarck and Dickinson represent communities where no one can rent regardless of their circumstance." Cities should have 5 percent to 8 percent rent availability, Carbone said. Dickinson's availability last month was a half-percent. In order to afford a two-bedroom apartment at a fair market value, residents in Stark County should make $13.10 an hour, according to a report released by the National Low Income Housing Coalition. The mean renter hourly wage is $10.50. The annual average yearly income for renters in Stark County is $24,627, and the amount a renter can afford on average is $616. Income needed to afford a one-bedroom apartment is $23,520, according to the NLIHC report. Of the 1,783 people identified as homeless in North Dakota during the July 27 NDCHP point-in-time survey, 40 percent worked out of state and had come to work in the state. Only 25 percent said they could return to permanent housing. "So many of those that have come have found themselves unsheltered and are basically stuck here," Carbone said. More people are coming to the state in response to an oil boom in western North Dakota, said Sheila Crowley, NLIHC president and CEO. "In an economy where people are having a very hard time finding jobs in other places, and they have the ability to pick and go to North Dakota, then people are going to go places where they can seem to find jobs, but obviously you have a mismatch between people and housing at this point," she said. Carbone added that 84 percent of the extremely low-income households, or households making less than $20,000 a year, are paying housing costs greater than 50 percent of their income. "They are at imminent risk of homelessness at any moment," he said. "Those are the folks that are paycheck to paycheck, and we know that is getting more and more difficult to handle." Since renting space is not available in the western part of the state, housing vouchers cannot be used, Carbone said. Those vouchers "will be lost" if not used. "At a time when we issue these housing vouchers, most of the time when are they in the most jeopardy of being lost because of inability to use them," he said. The availability of housing in communities shows how "the housing crunch is spilling over across the state," Carbone said, adding people are not only coming unprepared but they are coming because there is no place to live. "The state has done a great job of marketing itself as the land of opportunity, and I think it is for many people," he said. "I talk with these people every day with my job and some of them are angry. Some of them are frustrated. We need to be careful that we are not creating a false picture that all you need to do is show up." Community members need to tell their local and state governments know that housing has become an issue, Carbone said. "The vision of the Housing Alliance of North Dakota is to ensure everyone has access to decent safe, and affordable and accessible housing," HAND Project Director Tom Alexander said.
Source: The Dickinson Press |
Stark County mining, oil, gas wages steadily increasing
Stark County companies pay the big bucks for mining and oil and gas extraction. The county paid the highest wages in the third quarter of 2011, allowing employees to pocket more than $2,000 a week, according to a Job Service North Dakota report released Tuesday. "You guys are kind of a legacy oil and gas county," said Michael Ziesch manager of Job Service Labor Market Information Center in Bismarck. "You had some of the early wells ... and now, with the resurgence and coming back, you can see through the wages how the oil and exploration has come back." Average weekly wages for mining have increased steadily from 1990 to 2008. Wages suddenly jumped from about $1,350 in the 2008 third quarter to almost $1,550 in 2009. Those wages increased by another $200 in 2010. Last year's pay raise of almost $300 was the biggest increase from quarter to quarter in more than 20 years. There are a number of factors in deciding wages, Ziesch said. Overtime wages, corporate headquarters locations and labor market are some of those factors. "If you guys have a tighter labor market, that might force companies to pay a higher wage to keep employees due to competition," he said. It is no surprise that wages are high in Dickinson, said Gaylon Baker, Stark Development Corporation executive vice president in Dickinson, but the news is good for the city, he added. "I think the higher wage earners are picking Dickinson," he said. The strong wages are "a tribute to the economic development team in Dickinson," said Vicki Steiner, North Dakota Association of Oil and Gas Producing Counties executive director in Dickinson. "We had rail, we had land availability and we had water," she said. "All those resources are becoming more limited, but I think when the build out began, we had positioned ourselves to accept some of the growth." Mining had the largest employment growth in Dickinson by adding 364 positions in 2010, a 59 percent expansion. Stark County had 2,600 employees in the mining industry in the 2011 third quarter, almost double the employment of the same time last year, according to Job Service. "That just shows the desirability of Stark County," Ziesch said. "Everyone is trying to get out in front of the shifting." Steiner added that the oil and gas industry is "not easy work." "It is a tremendous opportunity for a good salary," she said. "It's reflective that our area has opportunity for our young people." Ziesch said he didn't see any reason why mining wages in Stark County wouldn't continue to rise in upcoming years.
Source: The Dickinson Press |
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Public patrons flooded the halls of a man camp near Dickinson for the first time Thursday to get a first-hand look at the fanciful accommodations for approximately 300 oil workers. Boston-based Target Logistics hosted a ribbon cutting ceremony, during which people were free to roam Dunn County Lodge, located north of Dickinson along Highway 22. Groups of observers admired the building's amenities, while oil workers and company representatives played host and toured curious spectators around the building. Workers admit the quarters are fit for a king. "It's probably one of the nicest man camps here," said Washington state native Jed Debord, who moved into Dunn County Lodge three weeks ago. "It's pretty nice." The camp features single bedrooms that come with a vanity and flat-screen TV. There is also a collection of pool tables, two saunas, poker tables and a cafeteria capable of seating 200. Debord had no idea what to expect for living quarters when he moved to Dunn County for oil field work. Upon opening the doors to his new home, he was pleasantly surprised because he had heard "horror stories" depicting North Dakota man camps as unsightly and uncomfortable. Dunn County Commissioner Daryl Dukart and a few other commissioners attended Thursday's event. Dukart admits he used to have "a lot of doubts" a man camp could be as accommodating as Dunn County Lodge, but he is pleased with how the facility turned out. "It seems to be managed and run very well," Dukart said, adding that the possibility of another camp is likely. Commission Chairman Glenn Eckelberg was also impressed with what he saw. "Now that I've seen (Dunn County Lodge), it's quite an addition to live in," Eckelberg said. "What a welcome sight." Travis Kelly, regional vice president for Target Logistics, welcomed all in attendance and thanked area residents for their support during the building's construction. "It was no small feat to let us operate in your area," Kelly said. "We're really happy to be in Dunn County." After thanking those in attendance, Kelly said Target Logistics will be donating 20 iPads to the Killdeer School Board. "We're so gracious that you guys let us into your community," Kelly said. Kelly added that the camp is only half finished. He said Target Logistics plans on completing the structure and hiring 300 more workers by April 15. In January, Target Logistics President Joe Murphy told The Press he is interested in building another man camp near Dickinson soon. "We're looking at different locations for a lodge," Murphy said, adding that the company cannot legally break ground until May 31.
Source: The Dickinson Press |
Breaking the piggy bank: State's tax revenue smashes biennium projections
North Dakota may need to get a bigger piggy bank. The latest state finance report predicts at least $1.5 billion in surplus and reserves by June 30, 2013, the end of the biennium. The state's booming economy has resulted in stronger than expected revenues from sales taxes, individual and corporate income taxes, and oil and gas taxes. "We've never seen our revenues come in at this rate over forecast before," said Pam Sharp, director of the Office of Management and Budget. "Revenue growth is at an all-time high." Sharp gave a financial update to legislators during the Budget Section's meeting Tuesday in the Capitol. North Dakotans continue to spend money, resulting in $80.9 million in sales tax collections in February, according to her report. This was $21 million more than expected. Individual income tax collections were $10.9 million higher than predicted, with $18.3 million in collections. This is attributed to more people working and more people working at higher wages, Sharp said. Corporate income tax collections for February were $10.5 million, or $8.7 million higher than forecast. This reflects that corporation profits are considerably stronger than they were two years ago, Sharp said. Oil and gas production and extraction tax collections in February were $159 million, "probably the strongest we've ever seen," Sharp said. Motor vehicle excise taxes were 53.9 percent stronger than expected, with $9.5 million in February revenue. Overall, the state has $609 million more in revenue at this time in the 2011-13 biennium than it did at this point in the 2009-11 biennium. Sales tax collections make up $326 million of that difference. While legislators will have a sizeable piggy bank to break into - assuming revenue continues to come in as expected or higher - they won't have access to the full $1.5 billion. A good chunk can't be spent unless the state has a revenue shortfall and another chunk can't be spent until 2017. Here's the breakdown: The state is now predicting there will be a $592 million ending balance in the general fund by June 30, 2013, a significant jump from the December forecast of $383 million. Legislators can spend general fund money, so the $592 million would be available for the 2013 session. Legislators will also have at least $101.5 million to spend from the property tax relief sustainability fund. The fund's balance is as of Feb. 29, and it will continue to grow as the account receives money from oil and gas tax revenue. Then there are the funds with more rules. There is $386 million in the budget stabilization fund - which can't be accessed unless there is a revenue shortfall - and $182 million in the foundation aid stabilization fund. Interest from this fund is transferred to the general fund, where it can be used for any state appropriation. The principal can only be spent under the governor's order to offset foundation aid reductions to schools as a result of a revenue shortfall. There also is $219.5 million in the voter-approved Legacy Fund, which is supported with oil and gas tax revenue. Money from this fund can't be spent until 2017. Overall, the state expects to have general fund carryover and revenue of nearly $5 billion for the 2011-13 biennium and nearly $4.4 billion in expenses.
Source: The Dickinson Press
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Killdeer Growing with the Oil Boom
A town of nearly 800--in the heart of the Bakken--is growing and changing with the times.
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Hoeven: Private investment may help with infrastructure needs
Area leaders met with North Dakota Sen. John Hoeven at Dickinson Public Library on Monday and expressed the area's need for infrastructure.
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