BAKKEN NEWS LETTER TO THE EDITOR


Meeting the challenges of a growing industry


By RON NESS Bismarck


have been seeking to grow and diver- sify this state’s economy, create more good-paying jobs and retain our young people. Today, thanks in large part to the de-


For generations, North Dakotans


our industry has brought in tempo- rary housing for thousands of workers. Oil companies have invested over $3 million for low-income housing. And most importantly, housing develop- ers are constructing thousands of new homes and apartments across western North Dakota. To reduce the impact on the envi-


Thursday, January 26, 2012 ■ Page 13


Hoeven explains pipeline legislation


By NICKSMITH Bismarck Tribune


velopment of the Bakken oil reserves, we are beginning to realize our dream of making North Dakota an economic powerhouse and providing a brighter future for ourselves and our children.


ronment and wildlife, the oil industry is working to ensure responsible pro- tections are in place. All oil production in North Dakota is from formations miles below fresh water supplies and wells are designed to protect the envi- ronment. The industry is spending $3 billion to capture natural gas and re- duce fl aring. New drilling techniques allow for multiple wells on a single pad location, reducing the environmental footprint. And as a sensible precaution, the industry has established a rapid re- sponse unit should accidents happen. The industry also supports new


Ron Ness


over 30,000 good-paying jobs and our state’s per capita average income ex- ceeds the national average for the fi rst time in decades. We have added $12 billion in annual economic activity to the state and we pay over $1 billion in taxes each year. And all indications are that North Dakota will enjoy contin- ued growth for years to come. But, there is no question that this


The oil industry has already created


North Dakota Industrial Commission rules that require drillers to use a “dry cuttings” pit system that eliminates open wastewater reserve pits, a bond- ing fee increase,


tory changes to well cementing and well design, and public disclosure of chemicals used during the hydraulic fracturing process. Twenty-three new- ly adopted state regulatory changes will add signifi cantly to the industry’s cost for well development but ensure responsible environmental protections are in place. In the coming months, you will


reasonable regula-


the controversial Keystone XL pipeline project, according to a nonpartisan legal analysis. Sen. John Hoeven, R-N.D., said the analysis provided by the Congressional Research Service lends strength to efforts in Congress to support the pipeline. “Clearly, the momentum is mounting


for this project,” Hoeven said. The CRS, which provides policy and legal analysis to committees and mem- bers of Congress, released its analysis late Jan. 20 on the authority of Congress to regulate foreign commerce.


“Clearly, the momentum is


mounting for this project.” – Sen. John Hoeven, R-N.D.


vesting billions of dollars in new pipe- lines and rail transportation facilities. The oil industry is also working closely with counties to develop traffi c corri- dors and to help maintain those roads affected by truck traffi c. To improve traffi c safety, the state


growth has also created challenges. To realize our state’s true potential and provide long-term economic success, we must address these challenges head on. The oil and gas industry is working aggressively to provide immediate and long-term solutions. To reduce vehicle traffi c, we are in-


begin to see the results of the billions of dollars our industry is investing in North Dakota. Not only will you see continued economic growth, but also the development of the infrastructure necessary to support that growth. As we rise to the challenges brought


about by growth, let’s not lose sight of all that we have gained. North Dakota’s new prosperity is the envy of the na- tion.


of North Dakota is investing over $1 billion in oil tax revenue to build roads and critical infrastructure across the oil patch. Highway patrol troopers and truck inspections have increased sig- nifi cantly in oil country. And the state has sharply increased direct aid to af- fected counties, cities and townships in and around the oil patch. To improve the housing crunch,


economic malaise, our state is thriving. North Dakota has the resources to deal with the challenges of our growth and our industry’s investment in the state is helping to educate our children, re- duce property taxes, provide fl ood re- lief, and build and improve our roads and other critical infrastructure across North Dakota. The opportunity for a better life


is the reason thousands of people are streaming into North Dakota. And the opportunity presented by


the Bakken will provide a brighter fu- ture for all of us. (Ron Ness is the president of the North Dakota Petroleum Council.)


While many states are mired in an


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duce in November required the U.S. State Department to approve a permit for the 1,700-mile pipeline unless President Barack Obama determined the project was not in the national interest. Obama rejected the pipeline last week, saying the GOP deadline did not allow enough time for review. The president’s action drew criticism from congressional Republi- cans.


candidate Heidi Heitkamp and Demo- cratic U.S. House candidate Pam Gulle- son also said they were disappointed in the decision. Hoeven said the request to the CRS had been submitted a few weeks ago


Democratic North Dakota U.S. Senate Legislation that Hoeven helped intro- Congress has the authority to approve


while legislation was being drafted by his staff in anticipation of a possible rejec- tion by the White House. “Essentially, what we did was ask the


Congressional Research Service to ana- lyze whether Congress has the authority to permit the project under the Com- merce Clause,” Hoeven said. A specifi c date hasn’t been set for


Congress to begin considering the new legislation, but Hoeven said efforts to gain bipartisan support for the pipeline approval are ongoing. The White House would have


tougher time rejecting the pipeline if it were to pass the House and Senate with bipartisan support, Hoeven said. “That’s a tougher threshold. Could he


veto it? It’s possible, but we’ll see,” Ho- even said. The proposed Keystone XL pipeline has been under review for approximately three years. It has drawn criticism from environmental groups over a stretch that would pass over the environmentally sensitive Ogallala Aquifer in the Nebras- ka Sand Hills. If approved, the pipeline would stretch


a


from the Canadian province of Alberta to the Gulf Coast. Of the total pipeline capacity of 830,000 barrels of oil per day, a total of 100,000 barrels of oil per day would be dedicated to Bakken crude. The majority of the oil traveling


through the pipeline would be Canadian oil from the Athabasca Oil Sands in Al- berta. Hoeven said Obama also would need


to weigh the entire bill that the pipeline legislation would likely be tucked into. “If it’s included in the payroll tax cut,


he’d have to veto that, too,” Hoeven said. (Reach Nick Smith at 701-250-8255 or 701-223-8482 or at nick.smith@bismarck- tribune.com.)


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