March 26, 2013

 
In This Issue
North Dakota Oil production reaches new high in 2012,
Ground to be broken for western ND diesel refinery...
West River Community Center's expansion....
Stark County eyes road projects for construction season...
Oil tax cut proposal....
Democrats Oppose Oil Tax Cuts...
Strength in numbers:
Staking Roosevelt's roost...
North Dakota oil field is thirsty...
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North Dakota oil production reaches new high in 2012, transported by trucks and railroads

 

North Dakota crude oil production (including lease condensate) averaged an all-time high of 770,000 barrels per day in December 2012. Total annual production more than doubled between 2010 and 2012 through the use of horizontal drilling and hydraulic fracturing of deposits in the Bakken Formation in the Williston Formation. North Dakota production in 2012 trailed only Texas and the U.S. Federal Offshore region, and the state accounted for 10% of total U.S. crude oil production.

 

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Ground to be broken for western ND diesel refinery

 

Officials are breaking ground this week for a diesel refinery in western North Dakota.

 

Bismarck-based MDU Resources Group Inc. and Indianapolis-based Calumet Specialty Products Partners are building the Dakota Prairie Refinery west of Dickinson. Officials have said it could cost up to

$300 million.

 

The facility will process crude from the rich Bakken and Three Forks formations in western North Dakota, helping meet an unprecedented need for diesel fuel in the oil patch.

 

A groundbreaking ceremony is scheduled Tuesday morning. Gov. Jack Dalrymple and members of North Dakota's congressional delegation are scheduled to be on hand.

 

North Dakota currently has only one oil refinery, the Tesoro Corp. facility at Mandan.

 

Sorce:  Bakken Breakout

West River Community Center's expansion project pre-bid cost: $22.3M 

 

The Dickinson Parks and Recreation Board's West River Community Center and new ice arena project has some competition for Mortenson Construction's time, but officials say it shouldn't get in the way of the building giant's facilitation of the multi-million dollar project. Although Minneapolis-based Mortenson was recently awarded the contract to build the Minnesota Vikings stadium, a letter sent to Parks and Rec director James Kramer late last month attempted to ease any concern that the construction company's time would be spread thin. "We have a tremendous amount of respect for Dickinson Parks and Recreation," Mortenson's vice president of project development, Daniel Mehls, expressed in the letter dated Feb. 26. "You can be assured that your team and your project will continue to receive the time and attention necessary to achieve every milestone and deliver a building experience which you can be proud of." Mortenson is scheduled to break ground on the Minnesota Multipurpose Stadium - which will sit on the current site of the Metrodome - later this year and hopes to have the facility ready for the 2016 NFL season. Although it won't be quite as high-profile a project, Mortenson is also scheduled to preside over the construction of a new ice arena, West River Community Center expansion and outdoor pool complex as soon as the project gets the green light from the city on funding. Kramer presented the Parks and Rec board a final update of where the addition and expansion stand Monday before the plan heads to the City Commission for review next week. On Thursday, after a series of conference calls, Kramer said the three-part project - originally estimated to cost $21 million following a conceptual design last fall - will be slightly more expensive. Thursday's final pre-bid numbers put the price tag for the project at $22.3 million. "That is total cost of the project - it's everything," Kramer said. "The easiest way to explain the difference is when they did the first estimate, they do that off of narrative description and design, so they have to make assumptions about what some things will cost. This estimate has a full set of drawings, materials, measurements and quantities. It's a much more detailed number." The project is expected to be paid for with a combination of public and private funds with Parks and Rec expected to request funds from the city eventually. Kramer said Parks and Rec is "close to halfway there" in its effort to come up with the $5 million it is projecting will be needed. "The unknown at this point is the atmosphere for this in our community with all the growth," Kramer told the board Monday. "We won't know how that plays out until bid day and that's why we have several bid alternates, so we can scale things back if we need to." Although he reiterated plans remain fluid, Kramer said it's expected that all three branches of the expansion project will be constructed at the same time. "Nobody wanted to be $1.3 million more than what we were last year, but this isn't completely out of left field," Kramer said. "In the scope of the big picture, we still think this is definitely doable. The same thing happened back when the (WRCC) was built a number of years ago. We're going to present the numbers to the City Commission on Monday and we're going to do everything we can to continue to move forward." Since opening its doors in 2004, the West River Community Center has seen a 55 percent increase in membership. Originally, the facility was projected to accommodate 1,750, Kramer said, although nearly 6,500 members were counted as of last month's numbers. To date, Kramer said close to $3 million in private funds have been pledged to go toward the project.
 
Source:  The Dickinson Press
Stark County eyes road projects for construction season
  

Stark County could be on its way to a busy road construction season this year. Tim Kelly with Kadrmas, Lee and Jackson in Dickinson presented the county commissioners with ideas to add to the list of projects to be funded by the mill levy. The commission last revised a proposed mill levy program for roads in 2003 for $168,170 and included the removal, addition and completion of several road and bridge projects. A committee, which included County Road Superintendent Al Heiser and County Commissioner Russ Hoff, came up with the recent recommendations. Heiser said the committee will meet again today about the proposed projects, which had been previously approved by the County Commission. The projects will still need approval from the North Dakota Department of Transportation. The mill levy was first passed by Stark County voters in 1994, and the County Commission is authorized to revise the levy on a regular basis. "What the county has proposed for the 2013 revision is to add paved roads to the county in the mill levy," Kelly said. "This would give the County Commission the flexibility to use mill levy funds for any of the paved road projects, which would include Highway 10 the South Heart Road, the Taylor Road, the road out to the dump ground, and ultimately, the road that is being proposed for paving this year, which is from South Heart north." Heiser said he's found that the county's road needs are changing. "One of the biggest changes was getting Highway 10 on our plan," he said. "We've always kind of struggled getting revenue sources for Highway 10 and this is good revenue because if you drive throughout the state, the roads that aren't well-maintained in pavement you can really tell it. That's what's happening from the underpass east of Richardton to the county line by Hebron. "That road is in dire need of some major repairs and we've been tossing it around for year, and this is a good funding source for us to get that project accomplished," he said. "Even with (Interstate) 94 there, it's amazing how many people still like to drive Highway 10." Kelly said one road discussed in meetings with commissioners that did not get added to the proposed project list was that 38th Street Southwest to the Whiting gas plant, which is 1 1/2 miles south of Belfield. In total, the proposed plan includes 81 miles of paving and seal coating to the mill levy and 15 bridges. "That gives the county the flexibility to use mill levy dollars to address any issues on those major roads," Kelly said. "In addition, it was recommended to remove a couple of miles of grading in the southwest corner of the county, west of U.S. Highway 85 and to add 61 miles of grading at various locations throughout the county." Two bridges located south of Richardton and the Heart River, west of Highway 8, were also included in the proposal. Kelly said other projects in the previous revision in 2003 that weren't completed remain on the mill levy.

 

Source:  The Dickinson Press

Oil tax cut proposal

  
The oil industry in North Dakota is a vibrant and growing field. But some legislators worry that if they don`t lower oil taxes, companies will move their capital elsewhere. That`s why the House Finance and Taxation Committee is looking at a bill that would lower the oil extraction tax by two percent in 2017.

The North Dakota Public Employees Association and Farmers Union spoke out in opposition to the bill, because they feel legislators should focus on meeting the infrastructure challenges in the west and providing property tax relief.

"We still have those problems. And so all we would ask us that can we please solve those problems, before we move into the realm of reducing the tax," said Stuart Savelkoul with the ND Public Employees Association.

Both Republicans, Democrats and interest groups alike seem to agree on the other parts of the bill which would remove any loopholes for companies not to pay takes.        
  
Source: KFYR-TV News

Democrats Oppose Oil Tax Cuts

  

Democratic leaders in the Legislature are speaking out in strong opposition to a bill that would cut oil taxes by two percent in 2017. The Democrats` initial calculations showed that the tax cut would cost North Dakota $595 million.

But they say after looking at more accurate information on how much oil wells produce, their newest calculation for loss of revenue is $3.7 billion.

Democrats say this is not the time to cut taxes, but instead be funding infrastructure improvements, property tax relief and the legacy fund.

"We are pro oil. We are thankful for the economic development that has happened secondary to the oil boom. We just want to protect what makes North Dakota great. We want to prepare for life after the boom," said Senator Mac Schneider (D) from Grand Forks.

Republican supporters say this tax cut will help keep oil companies drilling in the Bakken, versus investing capital in other states.

 

 

 Source: KFYR-TV News 

Strength in numbers: Williston, Dickinson, rank among fastest-growing 'micro areas'
  

Williston ranks as the fastest-growing micropolitan area in the country for the second year, the U.S. Census Bureau said Thursday. Census population estimates show that the Williston area gained 2,281 residents between July 1, 2011, and July 1, 2012, a 9.3 percent increase. Dickinson ranks third on the list of fastest-growing micro areas with a population increase of 1,624 people during the same period, a 6.5 percent increase, according to Census estimates. A micropolitan area has a population between 10,000 and 50,000 people. The figures came as no surprise to officials leading the growing cities in the heart of North Dakota's Oil Patch. "We certainly feel like we are, but it's nice to see the numbers actually verify it," said Tom Rolfstad, economic development director for Williston. The estimates put the population of the Williston micro area - which is all of Williams County - at 26,697 people in July 2012. The Census numbers do not count temporary workers. A recent North Dakota State University study estimated that the Williston area's service population is more than 38,000 people, which included about 10,000 people who live in temporary workforce housing. Williston Mayor Ward Koeser said the fast-paced growth doesn't come without pain. "You've got to have infrastructure in place to accommodate those thousands of people," Koeser said. The Census Bureau estimates the Dickinson area - which is Stark and Billings counties - had 26,771 residents in July 2012. Dickinson Mayor Dennis Johnson said he believes the city's population is about 25,000. Last year, Dickinson ranked fourth on the Census list of fastest-growing micro areas. Johnson anticipates that the city's growth may be more modest in the future. "I would expect that Dickinson will continue to grow, but I think it will be a much more measured pace," Johnson said. "At least I'm hoping that is the case." Minot ranked 25th among the fastest growing micro areas, down from last year's No. 8 ranking. The area's population was estimated at 73,146 people in 2012, a 1.2 percent increase over 2011. The loss of housing units due to the flood may have kept Minot out of the top 10, said Rod Backman, chairman of the North Dakota Census Committee. "It's hard to measure what the impact of the flood was," Backman said. The population data is a breakdown from the Census Bureau's state and national population estimates released in December, which reported that North Dakota's population has reached 699,628 residents, an all-time high. Figures for individual cities will be released later this year. The figure does not include temporary workers in North Dakota's oil country, which is estimated to be in excess of 30,000 people, Backman said. Oil and gas development played a role in many of the areas that experienced population growth, the Census Bureau said. Midland, Texas, was the fastest-growing metro area. "It kind of tells you that the oil business is probably the hottest thing going in this country right now," Rolfstad said. The Fargo metro area, which includes Cass and Clay counties, had a population estimate of 216,312, a 1.8 percent increase over 2011. The Grand Forks metro area, which includes Grand Forks and Polk counties, had 98,888, a 0.8 percent increase. The Jamestown area, which is Stutsman County, had 20,934, a decline of 27 residents. The Bismarck area, which is Burleigh and Morton counties, had 120,060, a 2.4 percent increase.

  
Source:  The Dickinson Press
Staking Roosevelt's roost

 

An oil company has staked out a four-well oil pad less than a mile from where Theodore Roosevelt's 1880s era cabin site is preserved at the National Park Service's Elkhorn Ranch north of Medora.
 

North Dakota oil field is thirsty: 5.4B gallons of water used in 2012

 

The oil industry used at least 5.4 billion gallons of water in North Dakota in 2012, a record high and at least a 75 percent increase over 2011, according to preliminary figures from the State Water Commission.

   

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