Blackout Cost ND 30,000 Barrels/Day
Grid Operator Cut Power to Oil/Gas Facilities

Operators of the electric grid covering western North Dakota may have made a bad situation even worse last month when they instituted a rolling blackout that shut down oil and natural gas operations in the Bakken.

Lynn Helms, director of the Department of Mineral Resources, said the Western Area Power Administration probably thought it was doing the right thing to reduce electrical load, but the blackout cut off a source of energy when it was needed most.

Click here to listen to Helms' comments.

Helms, in a presentation to the House Appropriations Committee, said cutting off power resulted in the loss of 30,000 barrels/day of oil production and 60 million cubic feet of natural gas. He said the state needs to make sure grid operators consider the big energy picture if another rolling blackout occurs.

Click here to listen to Helms' comments.

Helms said the same situation occurred in Texas when grid operator ERCOT cut power to parts of the Permian Basin. Helms' discussion of the Texas energy crisis was part of an extensive presentation to the legislative committee. Click here and advance to the 9:40 mark for his remarks about the blackout.

Helms: Oil Prices Will Soon Peak
No Drilling Uptick Despite $60/bbl Oil
DAPL, Other Uncertainty Deter Investment

Crude oil prices have been steadily climbing for the past several weeks, but North Dakota's top oil regulator says they're about as high as they're going to get.

Lynn Helms, director of the Department of Mineral Resources, said prices have increased because of higher global demand and a voluntary production cut by OPEC nations. But Helms said he expects OPEC to lift its production caps because it does not want prices to climb high enough to stimulate additional drilling in the Bakken and other U.S. shale plays.

Click here to listen to Helms' comments.

In addition to OPEC's likely increase in production, Helms said a looming threat hanging over North Dakota oil producers is a possible court-ordered shutdown of the Dakota Access Pipeline. Federal Judge James Boasberg is expected to rule in April whether DAPL will be allowed to continue to operate while the Corps of Engineers completes an environmental impact statement on the pipeline's Missouri River crossing. If the shutdown is ordered, Helms said it would take awhile for producers to secure enough rail cars to replace the takeaway capacity, and it would cost the state dearly.

Click here to listen to Helms' comments.

Helms estimates the additional transportation costs associated with a DAPL shutdown would cost the state about $595,000 per day in lost tax revenue. 

He said despite current crude prices over $60/barrel, the combination of more OPEC production, a possible DAPL shutdown, and additional anti-oil regulations imposed by the Biden Administration, means North Dakota will not see an increase in drilling activity this spring or anytime this year.

Click here to listen to Helms' comments.

The state's current budget forecast predicts oil prices remaining at $40/bbl through the biennium, with oil production decreasing from 1.1 million bbl/day in the first year, falling to to 1 million barrels in the second year of the biennium. Helms said that forecast is "super solid," and can be maintained with the state's current pace of completing 30 to 40 wells per month.

House Okays Coal Insurance Study
Lignite Industry Coping with ESG "Attack"

North Dakota legislators have approved a bill directing the state Insurance Department to study the cause of recent sharp increases in the cost of insurance to the lignite industry and any possible solutions to reduce the cost.

SB 2287 received near unanimous 87-3 approval today in the House, and now heads to the governor for his signature. Insurance Commissioner Jon Godfread said one of the reasons behind the insurance price hikes is the nonsensical movement to discourage investment in fossil fuels.

Click here to listen to Godfread's comments.

Godfread, who characterized the increases as "kind of an attack on the industry," said the Insurance Department will require outside assistance with the study, so is separately seeking a $200,000 appropriation in the department's budget bill.

Jason Bohrer, president of the Lignite Energy Council, testified in support of the bill. Bohrer agreed with Godread that the ESG movement is a large part of the reason for the higher insurance costs.

Click here to listen to Bohrer's comments.

Bohrer said the recent string of rolling blackouts should give pause to those pushing fossil fuel divestment. He said most would agree that keeping the lights on when it's freezing is more important than virtue signaling about climate change.

Click here to listen to Bohrer's comments.

Bismarck Rep. George Keiser pitched the study bill on the House floor today. He said unlike some other studies considered by the legislature, this one would be mandatory.

Click here to listen to Keiser's comments.

Click here to see video testimony on the bill from Wednesday's hearing before the House Industry, Business and Labor Committee.

Commerce Seeks Ideas on ESG
RFP Aimed at Helping Energy and Ag

The state Department of Commerce plans to seek proposals to assist the state and its ag and energy sectors respond to changing market dynamics associated with the ESG movement. 

ESG stands for Environmental, Social And Governance, and represent a set of criteria considered by "socially conscious" investors, which increasingly shun investments in fossil fuels and agricultural industries. Newly-appointed Commerce Commissioner James Leiman said the state needs to get on top of the issue, considering its potential impact on North Dakota's two largest industries. Leiman said the department has issued an RFP that will examine opportunities for the state to help businesses improve their ESG scores.

Click here to listen to Leiman's comments.

Leiman said the budget for the project is $250,000. Tasks covered in the RFP include:

• Identify opportunities for innovative energy or ag technology to reduce waste or mitigate environmental impacts
• Build a decision-making framework to address and respond to risks within industries
• Create a roadmap to enable industry policy to be more transparent in ESG-related areas
• Identify areas where the state may enhance industry investments in ESG improvements

The ESG movement has also been a major topic for state lawmakers this session. Foremost among them is SB 2291, which passed the Senate 42-4 last month, after being heavily amended in committee.

Click here to read an AP article about Leiman's appointment as Commerce Commissioner.

Dickinson Rep Expelled from House
Simons Accused of Harassment, Abusive Conduct

For the first time in state history, the North Dakota House of Representatives expelled one of its own members this week based on multiple allegations of inappropriate conduct.

The House voted 69-25 in favor of House Resolution 5001, which said that Rep. Luke Simons' "threatening, and inappropriate behavior ... undermines the integrity of the House of Representatives." Article IV, Section 12 of the state constitution grants power to the legislature "punish its members or other persons for contempt or disorderly behavior," and with a two-thirds vote, either house may expel a member.

Last week, Legislative Council released a 14-page document containing redacted emails which documented accusations of sexually and verbally abusive conduct. House Majority Leader Chet Pollert, Assistant Leader Scott Louser and GOP Caucus Chairman Glenn Bosch issued a joint statement last week, calling on Simons to step down.

House members heard nearly an hour of comments in support of expulsion that included testimony from three female legislators who described how they were personally offended by statements Simons made in their presence. Assistant Leader Louser described warnings Simons had received to correct his behavior. Louser said actions culminated following an incident in the Capitol cafeteria last week when Simons shouted the "F-word" at two female legislators who had asked him to wear a mask.

Click here to listen to Louser's comments.

Simons spoke in his own defense on the floor. He again apologized for his actions, and said he would like a full investigation and hearing into the allegations brought against him.

Click here to listen to Simons' comments.

Legislators who opposed the expulsion resolution offered amendments that would have either censured Simons or directed that the accusations be investigated by a committee of legislators. They argued that anything less would be a violation of Simons' due process rights.

Discussion on the House floor lasted a total of nearly four hours. Click here to watch legislative video of the proceeding.

Hearing to Focus on Grid Reliability
Energy Committees Will Hear from RTOs

Members of the North Dakota House and Senate Energy and Natural Resources Committees will hold a joint meeting next week to discuss ways to address electric grid reliability in the aftermath of a rolling blackout that hit the state during sub-zero weather.

Committee members will hear from representatives of the Midcontinent Independent System Operator (MISO) and the Southwest Power Pool (SPP) during the meeting which is scheduled to begin at 2:30 next Thursday, March 11, in the ND Heritage Center. MISO and SPP officials will appear either virtually or in-person, according to Zach Smith, Communications & Government Relations Director with the ND Association of Rural Electric Cooperatives, which is helping to facilitate the event.

Several North Dakota co-ops, particularly those which are part of SPP in western North Dakota, were caught off guard by the blackouts which came without warning on February 16. The incident has amplified interest among legislators who are considering multiple bills and resolutions this session aimed at protecting North Dakota from future power disruptions. Most of the bills have been "watered down," but the recent events have caused supporters of the measures to considering "putting some teeth" back into the bills.

All legislative committee meetings and floor sessions are live-streamed on the internet. Click here to see a list of the hearings scheduled for broadcast. 

House Kills Term Limit Measure

The North Dakota House voted down a resolution this week calling for a convention of the states to enact term limits on members of Congress.

Finley Rep. Bill Devlin spoke against HCR 3033, which would require two-thirds of the states enact a similar measure before any action could occur. Devlin said the simplest argument against term limits is that voters already have the ability to limit terms of their elected representatives. He also noted that seniority is important in Congress, especially for smaller rural states like North Dakota. 

Click here to listen to Devlin's comments. 

Speaking in favor of Congressional term limits, West Fargo Rep. Ben Koppelman said polls show a large majority of North Dakotans support the idea. 

Click here to listen to Koppelman's comments. 

The measure failed in the floor vote 26–65. 

Two Constitutional Amendments Passed

House lawmakers passed two resolutions this week that would change the state constitution if North Dakota citizens approve them at the ballot box.

HCR 3005 would permit the legislative assembly to reconvene for up to 20 days to address an emergency situation or consider a bill or item vetoed by the Governor after adjournment of a legislative session. The measure would exclude any days spent in the reconvened session from counting toward the current 80-day limit on regular sessions of the legislature.

The resolution easily passed the House on a vote of 78-13. 

HCR 3010 would make a minor amendment to the ethics measure that was approved by voters in the 2018 general election. West Fargo Rep. Kim Koppelman introduced the measure to the House Government and Veterans Committee in early February.

“I’m not sure if you’re aware of it, but a little noticed, but very dangerous provision was recently slipped into the ND Constitution, as part of a larger measure, which threatens to negate the rest of the very Constitution we all take an oath to support,” Koppelman said in testimony. “It is so brazen that it seeks supremacy over all the rest of the Constitution which has been crafted since statehood.” 

Minot Rep. Scott Louser explained the ethics measure's supremacy clause on the House floor. 

Click here to listen to Louser's comments. 

The resolution passed on an 80–11 vote. 

Load Restrictions Coming Soon

Due to continued warm weather patterns, seasonal load restrictions are being implemented on North Dakota state highways, with some taking effect today and others going into effect early next week.

Depending on weather conditions, the restrictions typically remain in effect until roadbeds have stabilized enough to carry normal traffic, generally in mid- to late-May.

Burleigh County imposed 6-ton per axle limits on most of its county roads today. Adams, Richland and Hettinger Counties will enforce road restrictions beginning next Monday, March 8. Restrictions in the City of Dickinson will be implemented Tuesday, March 9. Information on road restrictions in other counties that participate in WDEA's LoadPass Permits system will be posted here.

Seasonal load restriction information for state roads is available by calling 511 or online at ND Roads. 

Virtual Input Meetings Scheduled
Help Shape ND's Transportation Future

The ND Department of Transportation is seeking public input into Transportation Connection, a plan to shape the future of transportation in North Dakota over the next 25 years.

Virtual public input meetings have been scheduled for Tuesday, March 9, with sessions from 2:00 to 3:00 p.m. and also from 6:30 to 7:30 p.m. CST. 

To register to participate in either virtual meeting, click on the links below. 

• 2:00 p.m. Virtual Meeting
• 6:30 p.m. Virtual Meeting 

People who have questions, need help, or would like a hard copy of materials, should contact Stewart Milakovic at 701-328-2500 or smilakovic@nd.gov.

BND Promoting Financial Literacy
Two $1,529 Scholarships to be Awarded

In an effort to promote financial literacy in North Dakota teens, the Bank of North Dakota is hosting "March Money Madness."

Those who complete the challenge will be automatically entered for a chance to win one of two $1,529 scholarships to a College SAVE account. To participate, students must complete three online challenges. Each challenge contains three short videos with a two-question quiz. Covered topics include needs versus wants, repaying loans, and the difference between gross and take-home pay. 

The entire program can be completed in less than one hour. 

Interested students can participate in March Money Madness by clicking here. The challenges must be completed no later than midnight on March 31.

Ag/Energy Seek Student Advisors
Program Open to Students Grades 7 to 11

Three North Dakota trade groups are teaming up to give students in grades 7-11 an opportunity to offer their insight and ideas to the state’s two largest business sectors: energy and agriculture. 

The Lignite Energy Council, the ND Farm Bureau and the ND Petroleum Council are partnering on the project. Fifteen students selected from across the state will be expected to commit 11 months to the program beginning in June. After selection, a survey will be sent to each participant to determine their interests and to set up tours of ag-processing facilities, oil-related businesses, power plants and coal mines.

During the program, the students will be asked to participate in five to seven different meetings using online conferences. During the meetings, they will be briefed on current issues within the ag and energy sectors and allowed to ask questions and provide feedback. Scholarships are also available from the Lignite Energy Council for participants who complete the activities.

Click here to apply for the program. The deadline to sign up is May 1.

LEC Annual Meeting Set for April 22
Registration Now Open for In-Person Event

The Lignite Energy Council has announced that registration is now open for an in-person OR virtual annual meeting in Bismarck. 

A Lignite Reception is set for Wednesday, April 21, to be followed with LEC's annual meeting on April 22.

“We haven't seen many of you in so long and we are very much looking forward to seeing you in person OR virtually at either or both of our two events that will comprise the two-day membership gathering and informational sessions,” the group said in an email announcing that registration is open. 

The Lignite Reception is new this year and will feature light hors d'oeuvres, two complimentary beverages, dinner and entertainment as well as networking.

To register, click here. For event sponsorship information, click here.

WBPC Registration Open
Conference to be Live & In-Person

The Williston Basin Petroleum Conference is coming up in May, and hopefully it’s a sign of things to come since it will be a “live and in-person” event. 

North Dakota Petroleum Council President Ron Ness said the conference will be an important time to get industry professionals together to talk about the future of energy and to share ideas and make valuable contacts. 

For those unable to travel, the conference will be available to virtual attendees. Click here to register for the Williston Basin Petroleum Conference.