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September 1, 2011 Page 3
The oil industry figures
continue to be astounding
Earlier this month, I attended the
first Energy and Transmission
Committee hearing.
This committee must study the
impact of a comprehensive energy
policy for the state and the develop-
ment of each facet of the energy
industry, from the obtaining of the
raw natural resources to the sale of
the final product in this state, other
states, and other countries. One
thing about North Dakota when it
comes to energy we have it all - oil,
coal, wind, ethanol, natural gas. geo-
thermal, and hydropower. North
Dakota also boasts of having the
nation's only National Center for
Hydrogen Technology and National
Energy Center of Excellence.
Our energy resources are the rea-
son we are in such a better financial
situation then almost every other
state.
In an effort to create a compre-
hensive energy policy, the
Legislature passed House Bill No.
1462 in 2007 creating Title 17. This
bill moved sections of the law deal-
ing with energy such as the ethanol
production incentive fund and
biodiesel production fund that were
already in existence in other sections
of code into Title 17, and created
the 25-by-25 initiative. This initia-
tive adopts the goal of having not
less than 25 percent of the total ener-
gy consumed in the U.S. from
renewable resources by Jan. 1,2025.
It also created the Energy Policy
Commission, also known as the
EmPower North Dakota
Commission.
The EmPower commission
includes representatives from all
Capitol Report
By Shirley Meyer
State Representative,
District 36
Our energy
resources are the
reason we are in
such a better finan-
cial situation then
almost every other
state.
sectors of the energy industry with
the goal of partnering traditional
energy industries with the new
emerging renewable sources of
energy. The foundation of our ener-
gy policy has been to grow North
Dakota's diverse enemy resources in
tandem. The EmPower commission
meets regularly, and reports their
findings to the interim Energy
Committee. Usually their ideas are
brought forward as bill drafts for the
next legislative session.
Lynn Hehns, director of the
Department of Mineral Resources,
gave us an update on our oil and gas
industry. It comes as no surprise to
those of us who live and work out in
the western part of the state that our
oil industry is booming. As of the
week before last, we had 193 rigs
drilling in North Dakota. This num-
ber is expected to grow to 225 rigs
by next year. These rigs can drill
anywhere from 1,100 to 2,700 we/Is
per year, and we expect that number
to be right around 2,000. What does
that mean for North Dakota? Helms
said that 100 to 225 rigs equal
12,000 to 27.000 jobs, and 225 rigs
can drill the 51)00 wells needed to
secure leases in 2.5 years; 225 rigs
can drill the 28900 wells needed to
develop spacing units in 14 years,
and with 33,000 new wells that
equates into thousands of long-term
jobs.
A typical 2010 N.D. Bakken well
will produce lot 28 years. In those
28 years, the average Bakken well
will produce more than 575.000 bar-
rels of oil, generate over $20 million
net profits, pay approximately $4.25
million in taxes, pay salaries and
wages of $1.55 million, and pay roy-
alties of $6.9 million to mineral
owners. Now take those numbers
and multiply by 33.000 - unbeliev-
able.
In June, our oil and gas produc-
tion and extraction tax collections
totaled $156.3 million. Of course
once again we really need to make
the case to our eastern counterparts
that in order for this tremendous
resource to continue we have to
commit more dollars to our infra-
structure. I can't even begin to
imagine how much money it has
cost the oil industry to have Hwy. 22
shut down, or what will happen in
the event that Hwy. 85 would have
to close. At a recent meeting a man
stated that if we permitted a well at
the Lost Bridge of Hwy. 22 there
would be a drivable road in less than
a week. 1 tend to agree.
Good harvesting!
Politics. is holding back commonsense ideas
Earlier this month, I had the
Opportunity to get out of
Washington, D.C.. and travel to
small towns and farm towns in the
heartland of the country. I sat down
with small business owners, farmers
and ranchers in Iowa: I had lunch
With veterans in Cannon Falls,
Minn.; and I talked to plant workers
at a seed distributor in Atkinson. I11.
I made the trip because I think
the rest of this country can learn
,something from rural America. The
heartland is central to the economic
fiealth and prosperity of our nation.
Rural communities provide us with
affordable agricultural products,
e.'ompetitive manufacturing capabil-
ities, and an independent, renew-
able energy supply. And you're also
stewards of America's great out-
doors - an important source of jobs
and an incredible treasure for all
Americans.
Now we all know times are
tough for many Americans - and
many rural Americans in particular.
Some of you may have been strng-
gling for a long time. But we also
know what it's going to take to get
America going again. And we
know it's going to start with helping
families in the heartland and across
the country feel like they're moving
forward.
That's why, over the last two
years, we've been focused on
improving infrastructure - building
roads and bridges and providing
broadband access to millions of
rural Americans. We're expanding
educational opportunities and help-
ing more Americans get access to
affordable health care. We've made
historic investments in innovation
and clean energy. And we estab-
lished the first-ever White House
Rural Council to promote economic
growth in rural America - and to do
it in a faster and more coordinated
way.
But even with the progress
a road construction bill so construc-
tion crews - now sitting idle - can
head back to the worksite. Let's
connect the brave Americans
returning from Iraq and Ahanistan
with businesses to use their skills.
And let's pass trade deals to level
the playing field for our businesses,
because I want more products sold
around the globe stamped with
three words: Made in America.
These are commonsense ideas -
ideas that have been supported by
both Democrats and Republicans.
The only thing holding them back is
politics. The only thing preventing
us from passing these bills is the
refusal by some in Congress to put
country ahead of party. That's the
problem right now. That's what's
holding this country back. That's
what we have to change.
You deserve representatives who
show the same kind of discipline
and integrity and responsibility that
most Americans demonstrate in
their lives every, day - leaders who
can put their differences aside to
help grow the economy and put this
nation ba.ck to work. Because, for
President Barack Obama
all the knocks we've taken, despite
all the challenges we face, this is
still the greatest country on earth.
We still have the best workers and
farmers, entrepreneurs and busi-
nesses, students and scientists in the
world.
Getting out of Washington'and
spending time with folks like you
reminds me why I got into public
service in the first place. Your work
ethic: your creativity; you r determi-
nation only makes me more hopeful
about our future. And it only makes
me more confident that if we come
together, there is no stopping the
United States of America.
FOR SALE: BEACH FOOD CENTER
Don't miss this
opportunity! This store is
in the middle of the
Bakken Formation. There
are no food centers of this
size in miles in all
directions!
For details visit: www'H°meandlandc°mpany'c°m or call Sally
Abernethy at (7Ol) 872-4674 or cell (7Ol) 260-5o87
We've made, it's also clear the pace
of our recovery is still not fast
enough. We need to do more to cre-
ate jobs.
That starts with getting your
elected officials in Washington to
put their differences aside and take Pill[
steps right now to help businesses
get more customers and create more
jobs for Americans. We can cut pay-
roll taxes again, so families have an , '
extra $1,000 to spend. We can pass
September 2, 3 and 4
Contact
Gloria Ueckert Smurfs
(701) 8z2-4263
I
t
A Piece of the Past
Performers take the stage of the Burning Hills Amphitheatre at Medora in this undated
photo. (Photo Courtesy of the Golden Valley County Historical Society)
Tax repeal would creale inequities
Looking at the possible passage changed, added or cancelled with
of a constitutional amendment each annual budget. The varying
abolishing the property tax, legis- mill rates indicate that some coun-
lators have already started consid- ties will be well-rewarded while
ering methods for getting around others will get short shrift in the
the consequences of such precipi- forsome specific county function.) change.
tous action. The proposed amend- Among these authorizations are These variations are the result
ment will appear onthe June ballot levies for county roads, fairs, vet- of local decisions made by county
in 2012. erans services, human services, voters and/or county commissions.
One proposal discussed by leg- weed control, library, parks, and Since these levies are optional,
islators was the creation of special on up to the total of 68 options, will any or all of these optional
assessment districts by local gov- Through the years, different coun- county expenditures be considered
ernments to replace the general ties have put together their own "legally imposed" obligations as
property tax. A careful look at the variety of services; many in directed by the proposed amend-
language of the proposed anaend- response to citizen demands, ment?
ment suggests that alternative Forty-five counties levy for Changing the tax structure from
fundraising may not be an option, correctional centers; eight do not. one of local options to one con-
The measure mandates the Forty-six counties levy for histori- trolled by the state will limit local
Legislature to replace the lost local cal activities; seven do not. flexibility and create new
government revenue by increasing Twenty-eight counties levy for inequities among counties in the
taxes on sales, corporate and per- fairs: 25 do not. Twenty counties provision of services.
sonal income, oil, gas, coal extrac- levy for emergency medical serv-
tion, insurance premiums, alcohol, ices: 33 do not. These examples I,,'
lottery and financial institutions, underscore options now being
Then it must develop a formula to used for most services. Even in In Loving Memory of
"fully and properly fund the legal- counties levying for similar pur-
ly imposed obligations" of local poses, the mill rates will vary for Brian Reber
government with the receipts from that function. Feb. 4, 1988-Sept. 7, 2009
these taxes. Because counties have t'ailored
The implication here is that their services to meet local needs, Tragically taken from us
local governments will be repaid the mill rates from county to coun-
in full for lost property tax rev- ty vary considerably. Last year,
enue. If that is the case, then this is three counties levied less than 75
not a tax reduction proposal, mills; 13 levied between 76 and
Instead, it is a mechanism to shift 100 mills; 12 levied between 101
the tax burden for local govern- and 125 mills; 21 levied between
ment to different taxpayers. 126 and 150, and four levied over
The term "legally imposed obli- 150 mills. So the tax burden varies
gations" is problematic because widely from county to county,
there is no explanation of the partly due to the unique program-
phrase. Let's look at counties to ruing in each county.
dissect the need for a definition. Since the proposed constitu-
According to Marcy Dickerson, tional measure orders the
Director of the Property Tax Legislature to repay counties in
Division in the North Dakota Tax full for the loss of their property
Department, county governments taxes, state-collected taxes will be We little knew that morning
have been given 68 mill levy paying for services in some coun- God wasgoingto
authorizations by the Legislature. ties that will not be available in call your name}.
(A mill levy authorization is per- other counties. To further compli- In llfe we loved you dearly,
mission to levy a number of mills cate the situation, levies are In deathwe do the same.
It broke our hearts
From Wireless Technology to Tiny to lose you,
'Invisible' in-the-canal Hearing Aids Yo. did not go alone
For part of us went with you,
We
Ha
ve
It
A
II!
The day God
/c Call i called you home.
I.¢ 1-800-585-0728 You left us
wonderful memories
to schedule an appointment Your love is still our guide.
Though we cannot see you,
You are always at our side.
Heart River Hearing
1051 3rd Ave. W ° Dickinson, ND 58601
Our family chain is broken.
Nothing will ever
be the same.
Experts in amplification You still live in the hearts and minds
Dr. Kim B. Callahan, CCC-A FAAA Clinical Audiologist Oft&family you left bebinO.
Michelle Palmer, BS HIS Hearing Instrument Specialist
Beach: September 13 - The family of Brian Reber
Killdeer: September 14 [1
Bowman: September 8 and 22
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