< Previous20 The Official Publication of the Western Dakota Energy Association A project launched last year in North Dakota aims to mini- mize weather-related disrup- tions in the oil industry, but the benefits extend beyond just the oilfields. When roads get wet from heavy rainfall, local governments impose weight restrictions to protect gravel roads, the same gravel roads oil operations use. Though this is beneficial to reduce damage to the roads, sometimes operations are shut down unnecessarily. Until now, people have been relying on weather data that sometimes comes from a station 30 to 40 miles away from the area they are concerned about. But Wise Roads (Weath- er Information System to Effectively Reduce Oilfield Delays and Disruption) aims to tar- get this. Through this project, research-grade weather stations are being installed in the Bakken to monitor weather conditions, pro- viding accurate, consistent, localized data. For this project, the Western Dakota Energy Association (WDEA) has partnered with the North Dakota Agricultural Weather Feature By Kaitlin Vitt New Weather Stations Proactively Tackle Disruption in the Industry This weather station was installed last fall at Antelope Creek in McKenzie County during phase two of the project. The view from the station on Rat Lake Road in southwestern Mountrail County, which was installed during phase one of the Wise Roads project. The project gives real-time information of the area, like this water truck on the road.BASIN BITS | Spring 2020 21 Williams Counties, which produce more than 90 percent of North Dakota’s crude oil. The stations installed this spring are considered phase two of the project. Dur- ing this phase, ongoing communication with the oil industry is being done to see where these companies plan to be drilling in the next five to 10 years. “The core is almost drilled out,” says Geoff Simon, executive director of the WDEA. “That means additional drilling activity will be moving out from those core counties, or at least to the periphery.” Wise Roads is a collaborative effort, bringing together various partners and inter- acting with different industries out in the field, something that will continue as the project moves into its next phase. from the initial 10 test sites, the results are clear: Wise Roads is working. People involved with this project, like Daryl Ritchison, director of NDAWN, say the new stations have already given examples of some roads that, in the past, would have been closed due to non-local weather data could have re- mained open, which is a positive sign for 2020, when the network is expected to be operational. “In 2020, we will be able to enhance our knowledge of how this has been helping,” says Ritchison. “We had some test beds and, so far, it has proven that we can get much more accurate rainfall patterns than before, helping counties determine which roads should be closed and which can be open.” The stations installed so far have been in Dunn, McKenzie, Mountrail, and Network (NDAWN) and the Local Technic- al Assistance Program (LTAP) of the Upper Great Plains Transportation Institute. In phase one, 10 test sites were installed. Phase two is ongoing, with the goal of 15 more Wise Roads weather stations. In total, 50 sites are funded and will continue to be installed as time permits, hopefully in 2020. “It isn’t cheap, but if you have to shut down the industry due to poor conditions, that would be even more expensive, and then everyone has to get involved,” says Curtis Glasoe, the LTAP lead for Wise Roads. “We want to go as long as we can without having to reconstruct the roads.” Each weather station costs about $10,000, and the partners involved say the benefits go beyond the investment. When road restric- tions are in place for a few days, oil produc- tion may need to be shut down. By the time operations are up and running again, the company could have millions of dollars in lost revenue. Industries besides oil, such as agriculture, will also benefit from this project. Jonathan Rosencrans, WDEA meteorologist, says he’s talked with farmers and ranchers who own land in the area, in addition to local offi- cials, and, though it was the first they’d heard about the project, they were excited about it. Ultimately, Wise Roads will help get oil out of the ground and crops out of the field. For example, producers can use the weather stations to determine the potential for crop diseases. The data from both Wise Roads and previously existing weather stations is publicly available on NDAWN’s website, www.ndawn.ndsu.nodak.edu/current.html. BETTER ROADS, BETTER RESULTS Wise Roads partners are looking into em- bedding probes in gravel roadbeds near the stations to provide moisture density levels. Right now, these probes are inserted into soil adjacent to the weather stations, but gravel and soil don’t have the same composition. Getting an accurate look at the data from the gravel will help to determine the best way to build gravel roads and will give a better idea of how much rainfall these roads can with- stand, helping to know when to leave roads open and when to close them. “We can coordinate the closures with people, so we can keep the industries growing without damaging the roads,” says Glasoe, adding that though there is existing research similar to this along state highways, to his knowledge, this is the first research of its kind for county roads. Though it’s still early in the project, by assessing anecdotes and based on the results The weather station installed during phase two along a road in Four Bears Village in McKenzie County last fall.BeforeAfter Project: Oil Spill Clean-up Contaminant: Maddison Oil Method: Bioremediation Product: Athena Clean up time: 60 Days GENERAL PRODUCT BENEFITS • Cost Effective-minimum disruption to sites where structures are involved. • Total elimination of “Cradle to Grave Liability”-it destroys the contaminate. • Works rapidly-projects are closed on time within target dates. • Non-Toxic • Tolerant of pH levels between 5.5-10.0 • Activated by either salt water or fresh water • Optimal Temperature range of 32F-120F • Certified Pathogen Free The proprietary blend of microbes has undergone the rigorous testing required to be listed as a Microbiological Culture on the Environmental Protection Agency National Contingency Plan Product Schedule. It is certified as being pathogen free and has been used for many years and no toxicity has been noted. While there is no requirement for pathogen testing, this product is routinely checked for the most common health pathogens so you can be certain nothing has crept in during the production process and you’re getting a high quality, consistent product every time you order. Contact Information: Website: orionbioint.com Luke Lee- 701-421-5825 Email: llee@chiefofs.net24 The Official Publication of the Western Dakota Energy Association day, conditions will improve, so it makes sense to continue talking about different ideas in the meantime. MANY IDEAS ALREADY ON THE TABLE Several ideas for use of the earnings were floated during the 2019 session, but all were rejected. One would have asked vot- ers to change the constitution, so all earn- ings would once again be reinvested. Cal- culations presented by Rep. Corey Mock, D-Grand Forks, showed that if all earnings were reinvested for the next 40 years, the Legacy Fund would grow to $143 billion. and replenishing its “rainy day” fund, which was depleted during the 2017 session, fol- lowing the slump in oil prices. With the state restored to relatively good financial shape, citizens and policy makers had be- gun to debate how to use the earnings from the now nearly $7 billion fund. Among possible uses, the language that established the study committee directed members to consider tax relief, reinvestment, and re- search and technological advancements, and to promote workforce development and career and technical education. The spread of the virus has forced every- one to put those wish lists on hold. But, some T he 2019 North Dakota Leg- islature formed an interim study committee in hopes of resolving what has been a burning question the past few years—what to do with the earnings from the state’s Legacy Fund. But with the outbreak of the COVID-19 pandemic and the ensuing downturn in the state’s economy, any earn- ings may be needed to support the basic func- tions of state government. House Majority Leader Chet Pollert, who chairs the interim committee, agreed that “all bets are off” when it comes to using the earn- ings for non-essential spending. “Things can turn around quickly, but I’m not counting on it,” says Pollert. “We may have to again look at plugging holes in the state budget with those dollars.” North Dakota voters established the Legacy Fund in 2010. It’s the state’s oil tax trust fund, and, prior to the economic crisis, the fund’s investments had been generating hundreds of millions of dollars of earnings. Thirty percent of all oil tax revenue collected by the state is de- posited in the Legacy Fund. For the first seven years of the fund’s existence, earnings had to be reinvested. But for the first time, at the end of the 2017-19 biennium, the Legacy Fund’s earnings for the two years—a total of $454 mil- lion—were transferred to the state general fund. The 2019 Legislature devoted most of the cash to patching up the state’s budget Feature By Geoff Simon State Budget Outlook Puts Wish Lists on Back Burner Virus Will Require State to Re-Think Legacy Fund Plans: Sen. Rich Wardner pitching his ideas at a North Dakota Association of Counties meeting back in October.BASIN BITS | Spring 2020 25 needs. His priority is schools in the oil patch that are struggling to cope with en- rollment increases attributable to growth in the oil industry. Wardner says he has no difficulty finding school administrators to agree with him. At the Legacy Fund Earnings Commit- tee’s most recent meeting in February in Watford City, nearly a dozen superinten- dents from western North Dakota school districts described their construction needs. Leslie Bieber, Western Dakota Energy Association board member and the super- intendent in Alexander, said her district completed an expansion in 2016 and saw its enrollment surge 40 percent just two years later. Another project is set to begin this spring, adding a vocational- agriculture and industrial arts facility in the district. “Schools from the west to the east are saying the same thing,” says Bieber. “School infrastructure is a need and a pri- ority.” The Legacy Fund Earnings Commit- tee will meet twice more prior to the 2021 legislative session. Chairperson Pollert ex- pects the next meeting will occur in late June or early July. Also rejected during the session was a pro- posal introduced by Rep. Craig Headland, R-Montpelier, that would have created the Income Tax Rate Reduction Fund. Head- land’s legislation would have used Legacy Fund earnings to reduce personal and cor- porate income taxes, possibly eliminating them altogether within 10 years. Senate Majority Leader Rich Ward- ner, R-Dickinson, who serves on the in- terim Legacy Fund Earnings Committee, has pitched several ideas. He believes any use of the money should accomplish three things: improve quality of life, reduce the tax burden, and lessen the state’s depen- dence on the federal government. Wardner would like to devote 25 per- cent of the Legacy Fund’s earnings to the state’s Highway Trust Fund, which he said would fend off a need to raise the state’s motor fuel tax. “It’s going to keep taxes down because we’re not going to raise the fuel tax,” says Wardner. “We’re going to raise the qual- ity of life because fewer people will die on the highways, and we’re not going to be so dependent on the federal government and the dollars we get from them.” Wardner would also like to see earn- ings used to help meet school construction Rep. Chet Pollert chairing a Legacy Fund Earnings Committee meeting in Fargo, ND.26 The Official Publication of the Western Dakota Energy Association for our customers, who would have to bring in their entire demand from out-of-state or out-of-country.” You aren’t likely to find a more enthusi- astic supporter of the Synfuels plant than North Dakota Agriculture Commissioner Doug Goehring. Goehring says prior to the plant’s opening, growers often had to bring in urea from the Upper Midwest and, some- times, as far away as Manitoba or Saskatch- ewan, which created all kinds of logistical challenges. “We’re a nitrogen-deficit region,” says Goehring. “The fact that we now have a plant in our backyard has really helped to sustain agriculture to a degree.” Goehring says having access to a local supply of urea will hopefully mean more consistency in pricing for growers in the region. Nitrogen prices have experienced some wild swings over the past couple of years, he explains, due, in part, to a lack of suppliers. “The issue is if one person or one entity is monopolizing the entire supply, they can pretty much dictate how much that price is going to be,” he adds. Area farmer John Weinand, who sits on the board of the North Dakota Grain Grow- ers Association, says the plant in Beulah has warehousing up to 53,000 short tons at any given time. To put that into perspective, the plant supplies about half of the state’s demand for urea and 15 percent of total demand for the product in the region of North Dakota, South Dakota, Minnesota, and Montana. The Synfuels plant is operated by Dakota Gasification Company, a subsidiary of Basin Electric Power Cooperative, which is head- quartered in Bismarck, ND. It has been con- sistently running near full capacity since it opened for business, and plant manager Dale Johnson says ownership couldn’t be happier with the reception its product has received from growers in the region. “The urea production facility has been a great project for Dakota Gasifica- tion Company, in terms of the quality of the construction and overall reliability of the process. It’s provided a very nice rev- enue stream for us, and it’s providing an economical fertilizer option for the local farmers,” says Johnson, who also serves as vice-president of Dakota Gasification Company. “We’re so proud of this facility and our ac- complishments with it,” he adds. “This facil- ity has provided another source of local fertil- izer and has cut down on logistical challenges B eulah, in North Dakota’s Mer- cer County, is home to about 3,100 folks, according to the most recent U.S. census re- sults. While it might seem rather unremarkable at first blush, Beulah has recently become an extremely important location for many of the surrounding region’s agricultural producers. It is home to the Great Plains Synfuels Plant, North Dakota’s only urea fertilizer produc- tion facility. The facility, which began production in January 2018, now has the ability to churn out about 1,100 tons of urea each day. It also has a storage facility capable of Feature By Jim Timlick Great Plains Synfuels Plant’s storage facility can warehouse up to 53,000 short tons of urea. The plant can churn out about 1,100 tons of urea each day. Urea Plant a Godsend for GrowersBASIN BITS | Spring 2020 27 Even though the Synfuels plant is oper- ating at nameplate capacity and first quarter sales for 2020 were strong, Dakota Gas has no immediate plans to expand it. Goehring would love nothing more than for the company to ramp up production sooner rather than later. “I like the plant, and I’m so glad it’s there,” he says. “Anything they want to do to increase capacity or storage, I’m fully supportive of.” it is a safer, more storable and efficient ni- trogen fertilizer that offers more blending options for optimal plant development and nutrition. “A lot of people like it just for the safety factor alone,” Weinand adds. “Anhydrous ammonia is a compressed gas, and the venti- lation problems with it can be serious, where- as you’re not going to inhale a dry fertilizer [like urea].” been a godsend for growers like him. Not only has it kept prices more competitive, but it has also provided a boost to the local economy. “I like to see people using what we have here,” says Weinand. “It brings money into the state and the local communities. There’s nothing wrong with that.” Demand for urea fertilizer has been growing in recent years. Many growers feel The Great Plains Synfuels Plant is North Dakota’s only urea fertilizer production facility. Team member Joey Nelson preps for the load out process at the facility.28 The Official Publication of the Western Dakota Energy Association And while there has been a tremendous amount of wealth and revenue generated in the state for companies and individuals thanks to oil production, the same can- not necessarily be said for schools in the region. “A lot of people think because there’s a lot of tax revenue generated by the Bakken, that surely our schools are also benefitting,” says Joanna Baltes, president of the Willis- ton Public School District #1 School Board. “But, that’s just not the case. There is no additional pot of money we receive to work on building projects; we either need to go look for a bond referendum, or slowly build up money from annual property taxes in a building construction fund.” The ability, or lack thereof, to secure infrastructure funding has become a major problem for the Williston School District. The district has seen its school population more than double since 2009, but has only been able to build one additional school to meet the demand based on a bond referendum. the space we have, and there isn’t much in terms of personal space. Everyone is getting worn out.” To address the continuing growth of its student population, Killdeer Public School has made every attempt to maximize every square inch of space it has such as converting storage rooms into makeshift classrooms or dividing its high school weight room into two separate elementary classrooms. This has proven to be untenable for the school, so it’s exploring the potential of building a new school to better handle the demand. This is a challenge not unique to Killdeer School, and many schools across western North Dakota are also facing severe capacity issues. Williston and the surrounding area have, perhaps, experienced the most intense in- crease of population since the recent oil boom. Over 400 companies are headquar- tered in the region, and, as a result, there has been a hefty influx of oilfield workers, plus all the support staff who accompany produc- tion—and their families. W hen Gary Wilz first started working at the Killdeer Public School in 2003, there were only about 400 stu- dents in Kindergarten to Grade 12, and those numbers were in decline. But since oil and gas production took off in the region, the school population has risen more than 60 percent, growing to approximately 650 students, in- cluding pre-school. And over the next year, if nothing changes—nobody moves in or no- body moves out—Killdeer is expected to add 30 more students, followed by an additional 30 the year after that. “When you’re just driving by our build- ing or dropping off your kids, it’s difficult to grasp the severity of the population im- pacts we are facing—that is, until you come through the doors and you see for yourself how we are being slowly stretched beyond be- lief,” says Wilz, who, nowadays, is the super- intendent. “We just have too many kids for Feature By Paul AdairBASIN BITS | Spring 2020 29 Shon Hocker, superintendent at Dickinson Public Schools. “When you’re a district of about 4,000 kids and are growing at a rate of approximately five percent every year with no sign of slowing, you need to figure out—and sometimes think outside the box—just how to meet the needs of continual growth.” the load such as lengthening the school day by offering early-morning and after-school class- es, partnering with Dickinson State Univer- sity to secure additional classroom space, and reducing kindergarten to a half-day. “Our story is not so different from a lot of school districts here in the area,” says Dr. Travis Jordan, superintendent at Beulah Public School District 27, has become very familiar with the bond referendum process, having recently secured a $6.9 million con- struction bond to update a section of the local high school. The vote in early January was approved with 71 percent in favor and followed a previous attempt in 2018, when voters overwhelmingly rejected a $17.5 mil- lion bond slated for a larger project. “This will allow us to tear down a major portion of the 1963 addition and construct a new addition right behind it, and it will allow us to update our maintenance, mechanical, and electrical issues throughout the build- ing,” says Jordan. “We need facilities that are adequate for providing education to our stu- dents, and this bond lets us to do just that.” Over in Dickinson, many school campuses find themselves at full or maximum capacity, yet the school population continues to grow. The City of Dickinson is currently working to identify a plan forward that will gain the 60 percent supermajority of voter support re- quired to pass a referendum to build a larger high school and to address the challenges at other campuses. North Dakota is only one of seven states still requiring a supermajority. In the meantime, however, officials are also looking at alternative measures to help spread “ “A lot of people think because there’s a lot of tax revenue generated by the Bakken, that surely our schools are also benefitting. But, that’s just not the case...we either need to go look for a bond referendum, or slowly build up money from annual property taxes in a building construction fund.”Next >