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Newspaper Archive of
Golden Valley News
Beach, North Dakota
September 1, 2011     Golden Valley News
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September 1, 2011
 
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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. 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