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Page 8 ■ Thursday, March 15, 2012

CP Railway Continued from page 1

of the shipments will be bound for U.S. Development’s terminal in St. James, La., some 1,800 miles away. North Da- kota surpassed Louisiana in 2009 as the fourth-largest oil-producing U.S. state. North Dakota oil producers increas-

ingly have been shipping barrels to Louisiana and other more profi table markets not served by pipelines. Justin Kringstad,

North Dakota Pipeline Authority, said the new terminal near Van Hook is the twelfth such facility to be built in North Dakota since 2008. Three other rail- loading facilities are planned in the oil patch, he said.

director of the

BAKKEN NEWS New route for pipeline seen soon

company that wants to build a 1,700- mile oil pipeline through the U.S. heart- land to the Texas Gulf Coast will be ready within weeks to submit plans for a new route that avoids the environmentally sensitive Nebraska Sandhills region, a TransCanada executive said March 6. TransCanada also plans to begin

HOUSTON (AP) — A Canadian

ment approval because it crosses an in- ternational border, while the southern tier will need standard federal permits that Pourbaix believes will be ready shortly.

construction on the pipeline’s southern tier from Cushing, Okla., to Texas by late spring or early summer, said Alex Pourbaix, president of TransCanada’s energy and oil pipelines division. The contentious pipeline is designed

one-quarter of the more than 530,000 barrels produced daily in North Dako- ta, Kringstad said. BNSF Railway Co. hauls about 75

Rail shipments account for about

percent of the oil that currently leaves North Dakota by train, Kringstad said. Canadian Pacifi c plans to invest about $100 million to upgrade its main line in the region to handle increased Bakken crude shipments, Greenberg said.

Movin’ on up Continued from page 1

Ness, president of the North Dakota Petroleum Council. “We’ll be very hap- py to settle in at No. 2 for a decade or two.” Steven Grape, a U.S. Energy Depart-

ment petroleum engineer, said domes- tic daily crude production averaged 5.67 million barrels in 2011, up from 5.47 million the year before. Domestic crude production had

dropped each year between 1991 and 2008, Grape said. The bump in total production is partly attributed to North Dakota’s booming oil patch, he said. “Absolutely it has helped,” Grape


to bring oil from Canada’s tar sands re- gion in Alberta to refi neries along the Texas Gulf Coast. The upper portion of the pipeline requires U.S. State Depart-

President Barack Obama, recently re- jected the longer project, saying Trans- Canada needed to fi nd a route that would avoid the Sandhills and the Ogal- lala Aquifer, a key water source for eight states. At the time, Obama encouraged Trans-Canada to pursue the southern portion of the pipeline that would, in the short term, relieve a bottleneck of crude at Midwestern refi neries. Pourbaix said that part of the pipe-

line would be ready by 2013. Pourbaix said as long as Keystone is

The State Department, backed by

completed by 2015, the prospects for other western routes that would instead help get the product to China and the Far East, are not likely to be approved. Right now, Pourbaix believes Key-

stone XL can meet the 2015 deadline despite the permitting delays. He said the company is working closely with the Nebraska government to fi nd new routes and has identifi ed several corri- dors that will be made public in a few weeks. It appears the new plan will require about 20 miles of additional pipe, and about a 100-mile to 110-mile reroute around the Sandhills, Pourbaix said. “Imagine a jog around the Sandhills,”

he said.

ND offi cials protest new Minn. cost on coal power

By DALE WETZEL Associated Press

their protests against a plan to discour- age Minnesota utilities from meeting new energy demands by using electric power generated by burning coal. North Dakota’s Industrial Commis-

Top North Dakota offi cials renewed

other members are Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring. If Minnesota regulators make it

sion on March 8 approved a letter to the Minnesota Public Utilities Commission, arguing utilities should not incur any extra cost for using coal-fi red power. At present, the cost is $9 to $34 per ton of carbon dioxide that is given off when coal is burned to provide electricity. Gov. Jack Dalrymple is the North

Dakota commission’s chairman. It over- sees a state coal research fund, which is fi nanced by a share of North Dakota’s tax on lignite mining. The commission’s

more expensive for utilities to use coal power, it will throttle the prospects of western North Dakota’s lignite indus- try, Dalrymple said. Coal-fueled power plants in western North Dakota already provide a major share of Minnesota’s electric supply. “It has long-term implications about

tors to assign environmental costs to coal use, and said utilities would have to include those costs in calculating whether coal was an appropriate choice for meeting future electricity growth demands. North Dakota offi cials have protested

the growth of the industry from where it is today,” Dalrymple said March 8. “We feel that the time has come to clear up this issue once and for all.” The charges were established as part

of a 2007 Minnesota law that requires utilities in the state to produce one- quarter of their energy from renewable sources by 2024.

major changes last year, but Minnesota Gov. Mark Dayton vetoed the revisions. Cris Kling, a spokeswoman for Fer-

The law ordered Minnesota regula-

the law since the Minnesota Legislature approved it. Minnesota lawmakers approved

gus Falls, Minn.-based utility Otter Tail Power Co., said a residential electric cus- tomer using about 800 kilowatt-hours of power each month would see an in- crease in his or her bill from $8 to $24 monthly if the extra costs were imposed on newly-generated coal power.

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