< Previous30 The Official Publication of the Western Dakota Energy Association education providers, will need to increasing- ly intersect to make certain any approach is holistic and thoughtful of the talent pipeline, up-skilling and retaining current workers and attracting individuals to specific industries and relocating to the state. There are currently initiatives in place around career readiness, career exploration, and automation, which supports North Dakota’s primary sector industries. One of these initiatives, which has started to identify solutions, is ND Career Builders, a skilled workforce scholarship and stu- dent loan repayment program through the North Dakota University System that is aimed at attracting people into high-need and emerging occupations in the state. “Specific to in-state recruitment, North Dakota graduates approximately 6,500 high school students each year,” says Spen- cer. “This is a significant pipeline that lo- cal businesses should be approaching to ensure it’s not targeted by out-migration to other states.” A specific area of interest for Gov. Doug Burgum is an initiative related to occupational licensure reform. As part of his January State of the State address in Grand Forks, Burgum noted that states opportunities. The economy has stabilized since then, which has resulted in an extreme- ly tight labor market.” The problem, fuelled largely by high wage demands and a limited talent pool, is not new for North Dakota, as the state has possessed one of the lowest unemployment rates for more than a decade. Labor shortages have, for some time, been a challenge across all in- dustries and sub-sectors. North Dakota is seeing the largest em- ployment impacts in the manufacturing, energy, and service industries, including retail and hospitality. Another sector where there is a growing concern in relation to workforce is health care, including specialists, technicians, nursing, and aid teams. In addition, Job Ser- vice North Dakota’s labor market informa- tion and data further identifies a significant number of open positions that support these aforementioned industries such as trucking, welding, and skilled trades. “It’s a problem that’s continuing to worsen over time because there are no easy answers, nor a silver bullet, to resolve the challenge,” says Spencer. “Deeper and more creative solutions will need to emerge to ensure North Dakota’s businesses are supported.” North Dakota’s businesses community, in collaboration with policy makers and W hile the prosperity of the Bakken has brought many benefits to North Dakota, there have also been challen- ges related to the growth of oil and gas pro- duction. The strength of the oil patch has put a great deal of stress on North Dakota’s work- force, as the oil industry’s demand and higher wages make it more difficult to find labor to fill the many vacant positions across the state. North Dakota currently has an astonish- ingly low unemployment rate of just 2.2 per- cent, a labor force (those 16 and over who are working or actively looking for work) partici- pation rate of 69.2 percent, and an estimated 30,000 jobs currently open—a number that has more than doubled over the last two years. In addition, 28 percent of job openings in the state tend to remain unfilled for more than three months. “The simplistic answer to the cause of the challenge is there aren’t enough people to fill all the jobs that are needed in the state,” says Arik Spencer, president and CEO of the Greater North Dakota Chamber (GNDC). “Ten years ago, we saw a huge influx of in- dividuals coming to work in our state be- cause of the high unemployment rate at the national level, and North Dakota offered Feature Growing the State’s Workforce Will Fill Gaps in the Labor Pipeline & Help North Dakota Flourish * By Paul Adair Continued on page 32 Investment 101: BASIN BITS | Spring 2020 31 state-of-the-art science center overlook- ing the Missouri River. Visitors will have a front-row seat to North Dakota’s energy industry, as the river itself, an oil refinery, an electric generation plant, and a wind farm are in plain view from there. Now, more than ever, the mission of Gateway to Science isn’t just to serve Bis- marck-Mandan, but to be North Dakota’s statewide science center. Already, half of the center’s visitors come from outside of Burleigh and Morton Counties, and Gate- way to Science on the Go outreach pro- grams bring STEM education to schools in all corners of the state. In 2019, alone, Gateway to Science on the Go brought 60 STEM programs to 31 communities. “Our vision is to be the premier experi- ence for hands-on science in the region,” says Beth Demke, executive director of Gateway to Science. “To be able to attract and keep students involved in STEM jobs here in North Dakota is very important. They don’t just come about that in high school; it starts happening at a young age. Every child is a natural-born scientist. Every child wants to know about the world around them.” The new building will be 40,000 square feet and will include an expanded I f you worry about whether there is an adequate “crop” of future em- ployee prospects majoring in Science, Technology, Engineering, and Math (STEM) subjects in college, your worries are misplaced. You should be worry- ing about grade and middle school. While it is true most students decide on a career while in college, interest in STEM subjects begins when children are in the early elementary grades. Think of it: kids who were beginning elementary school when the Bakken boom started are already college-aged. How many were inspired to choose STEM back then? Fortunately for energy employers, there is an organization working hard to grow future scientists and engineers. Located in Bismarck, it has an outreach program that regularly works with schools across the state. Appropriately enough, it’s called Gateway to Science. Gateway to Science grew from a store- front in a mall with a mission of “inspiring the discovery of science through hands-on experience” to co-occupying the Fran- ces Leach High Prairie Arts & Science Complex. In October 2019, Gateway to Sci- ence broke ground on what will be a Feature By Jeff Eslinger Continued on page 32 Gateway to Science: Growing Future Scientists & Engineers The Gateway to Science on the Go outreach programs bring STEM education to schools in all corners of the state. An artist’s rendering of the new, 40,000-square-foot Gateway to Science facility, which features an interactive exhibit gallery space, an education wing, areas for exhibit maintenance, and more.32 The Official Publication of the Western Dakota Energy Association like Arizona have allowed license reciprocity for residents who have moved there from another state, allowing them to practice the same profession without the need for a burdensome relicensing process. “These initiatives all work on different facets of the challenge to create potential solutions for both North Dakota business and the citizens who are served,” says Spencer. Last January, at the GNDC Engaging Workforce CEO Round- table, the agenda was developed to inspire new strategies and use available resources at both state and local levels. Event speakers encouraged participants to go beyond the standard offerings of business and to implement people-centered strategies in their re- cruitment efforts. Attendees were then challenged to reconsider their approaches to the workforce, to think about the upcoming talent entering the workforce, and to consider approaches that ad- dress in-migration of potential talent. “One of our speakers, Rough Rider Center and Community Enhancement Director Pat Bertagnolli, left individuals at the CEO Roundtable with a profound statement,” says Spencer. “He said, ‘North Dakota operates at its best when the focus of workforce development is mentoring and giving back. It really is all about people, not workers. People have passion and families.’ Those or- ganizations that approach recruitment, attraction, and retention through the lens of community engagement will have a distinct advantage in solution generation.” *Statistics and comments in this article are representative of the workforce culture prior to the COVID-19 pandemic and its continu- ing impact throughout North Dakota and the rest of the world. main floor interactive exhibit gallery space, an education wing, administration, areas for exhibit maintenance, and a large maker- space area. Well over half of the $20-million price tag has already been raised with the capital campaign ongoing. Gateway to Science’s new facility will tell the story of innova- tion and opportunity in North Dakota, with exhibits on energy, agriculture, health care, transportation, and more. Several industry partners have already stepped up to help develop and sponsor ex- hibits. For the design and construction of exhibits, Gateway to Sci- ence staff are working with the Science Museum of Minnesota, a nationally renowned science center and a leading manufacturer of exhibits. All the exhibits are being developed with visuals depicting North Dakota photography and examples. “The energy story we’re telling is the all-of-the-above energy story of North Dakota,” says Jason Anderson, president of the Gateway to Science board of directors. “By introducing kids to STEM at these early ages, it is going to spark their interest in STEM careers.” Every exhibit in the center now, and every exhibit planned for the future, emphasizes interaction with the student. “Gateway to Science is not a typical museum,” says Demke. “We don’t put anything behind protective glass, so you just read about it. If it’s about a cloud, you’re going to pump up the pres- sure, pull the plug, and make a cloud. That’s the best kind of learning.” Just as North Dakota industries need a future supply of STEM em- ployees, Gateway to Science needs North Dakota industry leaders to invest in this building project. To help Gateway to Science continue to inspire young scientists, visit www.gatewaytoscience.org/building. Continued from page 30Continued from page 31BASIN BITS | Spring 2020 3334 The Official Publication of the Western Dakota Energy Association legislative committee,” says Wardner. “Tribal leadership wants to talk to the governor, not legislators, but they sometimes forget it’s the legislature that makes and changes the laws. But, in this case, the legislature stuck its pride in its back pocket and went to work to improve relationships with all tribal govern- ments in order to also improve the quality of life on the reservation.” During the 2017 legislative session, the two meetings held were, primarily, a lot of talk with no concrete action. That said, Sen. Dwight Cook put together an amendment that established the Tribal Taxation Issues Committee, with the unprecedented move of making Gov. Doug Burgum the committee chair. “Never in the history of the North Dakota Legislature has the governor ever chaired a W ith the signing of the new oil tax agreement in February 2019, the Mandan, Hidatsa, and Arikara (MHA) Nation and the State of North Dakota took a major leap toward resolving a long-lasting tax dis- pute over oil tax revenue. The signing was also a culmination of years of work behind- the-scenes to make it happen. Negotiations on this historic agreement started during the 2017 legislative session. The leadership from the Fort Berthold Res- ervation came to the legislature about two- thirds of the way though the session, asking for changes to the oil and gas tax agreement at that time to help offset the negative im- pacts of energy development on the reser- vation. MHA Nation was advocating to get away from the straight 50:50 split on oil and gas taxes collected on the reservation, both on fee lands and trust lands, to something that might be more beneficial to all involved. “The problem was that it is impossible to get consensus on an issue of this magnitude in the legislature during the last five weeks of a session,” says Sen. Rich Wardner.Continued on page 36 Feature Aims to Stimulate Investment on Fort Berthold Reservation By Paul Adair NEW TAX-SHARING AGREEMENT MHA Nation Chairman Mark N. Fox and the Tribal Business Council joined Gov. Doug Burgum and state legislators for a ceremonial bill signing in April 2019. Representatives from MHA Nation and the State of North Dakota at the ceremonial bill signing held in Bismarck in April 2019.BASIN BITS | Spring 2020 35 Continued on page 36 Feature By Jenna Collignon And the Winners Are... T his past fall, the Western Dakota Energy Association (WDEA) awarded five $1,000 scholarships to North Dakota students pursuing careers in an energy-related field. Winners were announced at the WDEA’s annual meeting in Minot, ND on October 30 to 31, 2019. The WDEA would like to thank the businesses and organizations that help to make the scholarships possible. Congratulations to all the scholarship recipients! JUSTIN HOWELL Justin Howell works at Oasis Petroleum and is pursuing a degree in information technology (IT) at Williston State College. After graduating with this degree, he plans to get into the field of IT and help with the short-handedness in the profession. “I was very excited about receiving this award,” says Howell. “It has really helped me while I continue to study toward my degree. This is a profession I wanted to get into for a long time, so I finally made the decision to switch up my old career and pursue a new one, now that my kids are older. Anyone can do anything they put their mind to!” EVAN WHEELER Evan Wheeler is a junior at North Dakota State University and hopes to pursue a career in electrical engineering. He got his first taste of the industry when he was first pursuing a degree in electrical technology at the North Dakota State College of Science. It was there he became interested in the generation of power. “I’m incredibly grateful for this scholarship because any financial aid takes a little more pressure off the expense of college and allows me to focus more on studying,” says Wheeler. “This generosity is not something that comes around every semester, so I definitely ap- preciate it.” JASMIN JOHNSON When Jasmin Johnson heard she was a re- cipient of a scholarship, she was elated. “I’m very grateful to be chosen,” says Johnson. “Having this financial help al- lows me to place school and studying above work.” Upon graduation, Johnson plans to work as an engineer in the petroleum industry so she can remain close to her family in the Minot area. “I’d like to give back to the community that gave me so much,” she adds. “I have a lot of older cousins in this indus- try—in the petroleum, mechanical, and electrical engineering fields—and they were great role models for me when I was in high school. I have also grown up with experience on our family farm and have always enjoyed taking things apart with my dad, Jeff, and helping him put them back together. Being in this in- dustry is definitely in my blood.” BRYAN KNOPP Scholarship winner Bryan Knopp is in his senior year at the North Dakota State Col- lege of Science studying surveying and civil engineering. “I was excited and honored to win the WDEA scholarship,” says Knopp. “This schol- arship is ultimately going to help me achieve my goal of graduating college debt-free.” Prior to leaving for his second year of college, Knopp signed a contract to work full-time with Brosz Engineering in Bowman, ND starting in May 2020. There, he will be working as a land surveyor and a licensed drone pilot. “Land surveying will allow me to work outdoors for the majority of the year,” says Knopp. “I’m excited to see the technological advan- ces that come in the future.”36 The Official Publication of the Western Dakota Energy Association Under the new tax agreement, the oil and gas revenue on trust lands will be split 80 percent to the MHA Nation and 20 percent to the State of North Dakota, while fee lands will be shared 20 percent to the MHA Nation and 80 percent to the State of North Dakota. Because of this agreement, the MHA Nation is expected to see an increase of $33.6 million in oil and gas tax revenue. While the tribe benefits with a greater revenue share in the new agreement, the state benefits by the investment in more oil pro- duction, which increases revenue for the state and impacts many funds, including the legacy and common schools trust funds. For the oil and gas industry of North Dakota, this agreement creates a more business-friendly environment and brings a higher degree of clarity going forward. The new tax agreement offers cer- tainty for the industry and confidence they will be able to invest on the reservation knowing their investments will bring a return. Ultimately, this will help increase revenues for the state and posi- tively impact funds such as the legacy and common schools trust funds. “This agreement creates stability the oil and gas industry needs to make those long-term investments on the Fort Berthold Reser- vation,” says Ryan Rauschenberger, the North Dakota Tax Com- missioner. “When there is uncertainty, especially in the area of dual taxation, oil companies have to take that into consideration when planning. Are they going to invest in North Dakota or look to other oil production areas when they decide to expand drilling? This new tax agreement keeps North Dakota on a level playing field, opens up the reservation for more production, and will pot- entially generate greater revenues because of it.” Continued from page 34Continued from page 35 CHUNCHENG LI Chuncheng Li is an international student working toward his Ph.D. in the petroleum engineering program at the University of North Dakota. “I was very happy and incredibly appre- ciative to learn I had been awarded a schol- arship. As a Ph.D. student, I felt my efforts had been recognized,” says Li. “After graduation, I hope I can be in a position where I can pass on my knowledge to more people and still learn from others. Like North Dakota, my hometown also has a big oilfield. Being around so many petroleum engineers, investigators, and pro- fessors in various universities, I wanted to be like them when I was young. I’m passionate about petroleum engineering and the molecular simulation technique, which is what my research is focused on. Hopefully, one day, I can produce findings that will greatly benefit the oil industry.” APPLY FOR A 2020 SCHOLARSHIP! The WDEA will be awarding scholarships again this fall. Priority will go to students who are planning to work in the oil and gas or coal industries in North Dakota. Visit www.ndenergy.org for selection criteria. The applica- tion deadline is mid-September. Recipients will be announced at WDEA’s annual meeting, October 7, 2020, in Williston.BASIN BITS | Spring 2020 37 D ustin Bakken likes to de- scribe his company as a small operation that hopes to accomplish big things. Bakken, along with his wife and business partner, Valerie, launched Kompleks Assessment Solutions (KAS) in April 2019. The Bismarck, N.D.-based start- up provides industrial and agricultural prop- erty assessment services to local governments and county agencies throughout the state. Having previously worked in property assessment at the county and state level for nearly a decade, Bakken was inspired to start his own company after seeing first-hand the need for accurate assessments in North Da- kota’s western oil and gas producing counties. “We all know this area is a dynamic and changing environment, and being able to keep up with property assessments is a real challenge for local assessments offices. Typi- cally, their resources are pretty limited as far as the number of staff and resources they have to apply to those assess ments,” says Bakken. “We wanted to provide a more local option for those local governments.” As the company’s name suggests, KAS provides assistance for more complex as- sessment issues facing many North Dakota counties. To date, it has been involved in a wide variety of assessments, ranging from oil By Jim Timlick Company Provides Homegrown Solution to Complex Problem In the Spotlight Dustin Bakken, co-founder of Kompleks Assessment Solutions. Dustin and Valerie Bakken and their children at a trade show in North Dakota. Kompleks Assessment Solutions has been involved in many assessments, ranging from oil and gas developments, crude-by-rail facilities, and saltwater disposals, to grain elevators, pipelines, wind farms, and public utilities. “ “We all know this area is a dynamic and changing environment, and being able to keep up with property assessments is a real challenge for local assessments offices.”38 The Official Publication of the Western Dakota Energy Association calculated and then submitted to the local jurisdiction for review. The aim, he says, is to ensure there are no surprises for the county or a company’s ownership throughout the process. Bakken is KAS’s lone employee. He says his company has an advantage over larger competitors in that Kompleks is locally based. “Right now, there’s only one other valua- tion provider in the state, and they’re actually located out of Texas,” he says. “Being a local North Dakota company, our costs are going to be significantly lower due to a lack of travel costs and things of that nature. And obviously, we know the market activity and everything go- ing on here, and we have a familiarity with the laws as they pertain to assessments in the state.” Bakken is optimistic about his company’s future and sees plenty of room for it to grow over the next few years. Most industrial as- sessment contracts in the state are typically two years in duration, and a number of them will be coming up for renewal later this year, a fact Bakken and his company are hoping to capitalize on. “We are looking to grow. We have a big renewal period coming up this year, so we are hopeful the future will hold more contracts for us,” he says, adding KAS could look at doing work for private companies down the road. Bakken submits a request to a company’s owners to inspect their property on behalf of the county assessment office. He then takes a thorough inventory of all property on-site and reviews any economic conditions or limitations that could have an influence on the value of the property. An assessment is and gas developments, crude-by-rail facilities, and saltwater disposals, to grain elevators, pipelines, wind farms, and public utilities. Its current clients include Stark, Foster, and Pembina Counties. Essentially, KAS serves as a liaison be- tween the county and individual companies. BASIN BITS | Spring 2020 39 WDEA News Regional Roundup COAL CREEK DECISION COMING SOON Great River Energy, the owner of the 1,100-megawatt Coal Creek Sta- tion near Underwood, ND, plans to announce a decision about the plant’s future later this year. Jon Brekke, vice-president of Power Supply for GRE, addressed questions about the fate of the coal-fired power plant at a meeting of the ND Legisla- ture’s interim Energy Development and Transmission Committee. It was re- vealed in February that GRE is consid- ering shutting down one or both units at the plant due to ongoing financial losses. Legislators were told many of the coal-fired plants in the region have been forced to operate at less than half their design capacity due to competition from federally subsidized wind generation and the recent addition of thousands of megawatts of cheap natural gas-fired generating units. Brekke said Coal Creek Station has been forced to deal with the negative financial impact for more than a decade. “The persistent low market prices are having an impact on coal fleets nation- wide,” said Brekke. “That’s a situation that’s been around since 2008. We’ve faced low market prices for that long, and they’re getting lower in the market as we go forward.” Brekke said GRE is conducting an analysis of the economic conditions fa- cing the coal plant, and if it decides to make any changes to its operations, the decision will be announced in 2020. “We have great concern about the communities in which we operate, and we’re going to do our best to have a good analysis, a good decision-making pro- cess, and to communicate that decision, or set of decisions, once we’ve made it,” he said. With its 1,100-megawatt generating capacity, Coal Creek Station is far and away GRE’s largest generation asset, which also includes the Spiritwood Station near Jamestown, ND and wind farms in eastern North Dakota. TAX FILING DEADLINE EXTENDED TO JULY 15 Following the federal government’s lead, the North Dakota Tax Department has ex- tended the tax filing deadline for all individuals and businesses to July 15. Tax Commissioner Ryan Rauschenberger says the extension of the deadline by the U.S. Treasury Department is intended to keep $300 billion of liquidity in the economy to help citizens pay their bills. Individual taxpayers who believe they will be owed a refund on their income taxes should continue to file as they normally would, says Rauschenberger, adding that all refunds will be issued in a timely manner. Department staff are also working on a case-by-case basis with individual businesses seeking an extension on payment of other taxes administered by the department. ATTEND THE WDEA 2020 ANNUAL MEETING Get this date on your calendar! The annual meeting of the Western Dakota Energy Association will be held from October 7 to 8, 2020 at the Grand Williston Hotel & Conference Center in Williston, ND. REAL ID DEADLINE EXTENDED ONE YEAR The deadline for states to comply with federal REAL ID requirements will be extended due to the COVID-19 pandemic. The Department of Homeland Security will extend the deadline to October 1, 2021. The REAL ID Act establishes minimum security standards for license issuance and pro- duction and prohibits federal agencies from accepting, for certain purposes, driver’s licenses and ID cards from states not meeting the Act’s minimum standards. The purposes cov- ered by the act are: accessing federal facilities, entering nuclear power plants, and boarding federally-regulated commercial aircraft. BAKKEN NOW 2020: WBPC RESCHEDULED FOR FALL The 2020 Williston Basin Petroleum Conference (WBPC) has been rescheduled for September 1 to 3, 2020. This decision was made following issuance of the CDC’s Interim Guidance for Coronavirus Disease 2019 relating to large events and mass gatherings. “We’re still very excited to host the WBPC later this year,” says Ron Ness, president of the North Dakota Petroleum Council (NDPC). “We’re committed to protecting the health and safety of our attendees, speakers, and exhibitors and will continue to monitor the situ- ation and follow official guidance as we move forward with this new date.” The WBPC has become the most important event for business development and net- working in the oil and gas industry in North Dakota and the Rocky Mountain region. The NDPC looks forward to bringing this event to Bismarck in 2020 in the safest way possible. Check www.wbpcnd.com for the latest details. PSC OKAYS DENBURY RESOURCES PIPELINE The ND Public Service Commission has granted a construction permit to Denbury Resources to build a pipeline that will bring carbon dioxide to Bowman County as part of an enhanced oil recovery project. The 12-inch-diameter welded steel Denbury Green Pipeline will be about 18 miles long, with 8.5 miles in Fallon County, MT and 9.2 miles in Slope and Bowman Counties.Next >