News

Commerce Commissioner speaks at Lake Metigoshe

By Scott Wagar

01/17/2012

North Dakota State Commerce Commissioner, Al Anderson, along with five other state leaders, held a meeting at Lake Metigoshe’s Twin Oaks Resort on Friday morning to speak with local leaders about the growth of the gas and oil industry in the area.

Anderson and the state leaders have been making a trek across the state’s counties that are dealing with the gas and oil industry where they are conducting a question and answering symposium called the “North Dakota Western Infrastructure Development Update Program.”

“We are here to do three things,” Anderson said. “One is to increase the understanding of the challenges we have with the significant growth in the oil and gas industry. The second is to make sure we are coordinating and working very close with local city, county or state leaders and that we are all working together. And, last but not least, it is an update of what has been going on.”

Anderson also stated that similar meetings were held in 2010 and that $1.2 million dollars came out of the first meetings between state and local governments for infrastructure improvement for the oil and gas producing counties.

“That is a significant amount of money,” Anderson said. “Where that’s headed is everything from infrastructure, to roads, housing, water project or one time expenses for other projects.”    

Besides the State Commerce Commissioner, Gerry Fisher of the North Dakota Energy and Infrastructure and Impact Office, which is part of the Department of Trust Lands; Grant Levi of the North Dakota Department of Transportation; Colonel Jim Prochniak of the North Dakota Highway Patrol; Michelle Klose of the North Dakota Water Commission and Jolene Kline of the North Dakota Housing Finance Agency were present to speak with the area’s local leaders.

NDDTL

Kicking off the event was Fisher, who spoke about four primary issues which were related to appropriations given out during the 2011 Legislative Assembly and the Assembly’s special session in November.

“The Energy and Impact Office assists in improving infrastructure in areas and realizing impacts from the energy sector through grants made available to counties, cities, school districts and emergency service providers. Grants are to be used to meet initial impacts affecting basic government services directly impacted by oil and gas development,” Fisher pointed out through a document which was handed out to those in attendance. “The 2011 Legislature appropriated a total of 135 million for impact grants during the biennium and $30 million available contingent upon oil revenues exceeding the original forecast.

“Five million is available for qualifying counties that experience impacts from new oil and gas development,” Fisher added through the documentation. “And, $55.5 million in awards have been made during the 2011-2013 biennium. Work is underway for many of these projects.”

Fisher also pointed out that Bottineau County received funding through the legislative’s appropriations. “Six townships in Bottineau County received funding,” he said.

NDDOT  

Levi focused on infrastructure improvements to enhance safety and traffic movement.

“During 2008-2011, we spent $635 million in state projects in western part of the state dealing with transportation issues. We have another $305 million program for 2012.”

It appears through NDDOT’s documentation that no highways in Bottineau County will see any of the infrastructure projects in 2012. However, Levi pointed out that in the last five years, work has been done on Highway 5, which included the 2006 Highway 5 project which went through the city of Bottineau in 2006.

“We have a lot of work planned in the future,” Levi said. “We are getting ourselves ready at the DOT and we want your input on what we need to do and what you see happening in the future of development and activity.”

NDHD  

Considering the number of accidents and fatalities on the state’s roads this past year, Prochniak centered his presentation on safety issues, especially in the area of oil and gas industry.

Prochniak looked at three important safety procedures individuals should keep in mind while on the road.

“Measures include buckling-up when it comes to traffic safety and moving products up and down the road, or, when you are behind the wheel or a passenger in one of those of vehicles,” Prochniak said. “It means not driving impaired. That means no alcohol, drugs, cough medicine or any kind of medication you can think about. And, then it also means you have to slow down.

“Quite frankly when you see the traffic volume we are seeing in the oil field and across North Dakota because the state is prospering, we have to change from what we are use to doing (on the road). If we want to enjoy the prosperous period in our state as citizens here, take the time to buckle-up, encourage your loves one to do it. If you’re going to go out and celebrate, get a designated driver, and, obey the laws. It will help in the end of traffic crashes, and ultimately, traffic fatalities.”

NDWC  

Klose is primary focus was on NAWS, which she stated is scheduled to receive 19.4 million during this present state biennium. Besides state funding, NAWS will also see funding from federal and local sources.

As for when Bottineau will see NAWS water, it is still an uncertain issue considering the project is yet in a court case with Canada. Klose explained that with the court case still pending, NAWS cannot predict when Bottineau will receive its water.

Klose also spoke on finding water in the local area for fracking. “This area is limited in water in this area, which makes it difficult,” Klose said.   

NDHFA

Kline presentation dealt with the Housing Incentive Fund and state income tax placement. Kline stated that the Housing Incentive Fund is set at over $13 million.

According to documentation provided by Kline, the fund will assist to help develop affordable multifamily rental units; 50 percent of the fund is set aside for households below 50 percent of Area Median Income; 25 percent of the fund is set aside for communities under 10,000 people; and taxpayers making a contribution to the fund can receive a tax credit equal to their contribution.

Kline also noted that state residents can designate which fund they want their state income taxes to be placed in.

“Your taxes do not have to go into the state’s general fund,” Kline said. “Tax payers can decide to place their taxes in such funds as the state’s housing authority instead.”

Kline pointed out that when state tax payers request their taxes to go the housing authorities, they can also request it to go to their own town’s housing authority so their community can construct housing.

However, communities do need their own housing authority to make the tax request. Bottineau, at the present moment, does not have its own housing authority, but Tim Sanderson, in a post meeting interview, stated that Bottineau’s council should consider establishing a housing authority.

“Being able to allocate your tax money back into the community is a great thing,” Sanderson said. “I think a housing authority is something the Bottineau council should get established immediately so the town’s tax payers can direct their income taxes back to the town, which will assist Bottineau in building some homes the town desperately needs.”

“With the growth of the oil and gas industry in Bottineau County, the local leaders in the area learned a great deal on Friday to assist their communities in the needs they are going to have once the oil and gas activity increases in the county.