JackDalrymplesEmptySeatsReport

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    TOUR FINDINGS AND STATE RESPONSEFROM 2012 WESTERN INFRASTRUCTURE DEVELOPMENT MEETINGS

    OVERVIEW

    State agencies visited 14 western North Dakota cities in January 2012 to gain the perspectives of local

    leaders and to provide an update on the states progress to address infrastructure development, safety,and planning throughout the region. State ofcials met with nearly 600 local leaders and community

    representatives to better understand the immediate and long-term impacts and opportunities North

    Dakota communities are facing due to oil and gas development. These meetings have been a follow

    through to those conducted by the Governor in December.

    Participating agencies included:

    ND Department of Commerce ND Housing Finance Agency

    ND Department of Transportation ND Department of Trust Lands

    ND Water Commission ND Health Department

    Upper Great Plains Transportation Institute ND Highway Patrol Bank of North Dakota

    The Legislative Assembly, in its regular and special sessions, appropriated $1.2 billion to address

    infrastructure, housing and safety needs in western North Dakotas oil-producing counties during the

    current biennium. As of Jan. 31, 2012, approximately $806 million remains to be distributed . Based on

    information gathered during the community meetings, agencies involved have identied the following

    areas where the state of North Dakota will have a signicant response.

    Presented February 21, 2012

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT3

    New Town Truck Reliever Route

    The city of New Town is working on getting

    in place the needed environmental and cultural

    reviews along with a design for a truck reliever

    route northeast of the city. The NDDOT has beenassisting in this process. The project should be bid

    and completed by summer 2012. The estimated

    cost of the reliever route is $6 million. The next

    phase would extend the truck reliever route

    west from ND Highway 1804 to ND Highway 23, and would include a process for the development and

    construction for a permanent truck reliever route as soon as a nal route is selected.

    Watford City Southwest Truck Reliever Route

    The NDDOT has received a request to develop and build a truck reliever route around Watford City.

    NDDOT is currently in the process of hiring a consultant engineer to develop location options for a truck

    reliever route. Route selection, environmental and cultural reviews, and design must be completed before

    construction can begin. Finalization of a truck reliever route is a local decision.

    Dickinson Truck Reliever Route

    The NDDOT has hired a consulting rm to develop the environmental and cultural review and complete

    the design plans for a truck reliever route in Dickinson. Upon selection of the route environmental and

    cultural reviews and design must be completed before construction can begin. Finalization of a truckreliever route is a local decision.

    Alexander U.S. Highway 85 Reconstruction and Truck Reliever Route

    The NDDOT is working with a consultant to establish the planning needed to rebuild U.S. Highway 85

    through the city of Alexander by summer 2012. The consultant will also be responsible for completing the

    environmental and cultural review work and planning for the next phase which will be a permanent truck

    reliever route around the city.

    Killdeer Truck Reliever Route

    The city of Killdeer has expressed interest in a truck reliever route for their city, but a formal request for a

    route has not yet been submitted to NDDOT.

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    I N C E A T I N I T H T HE

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    N T H A K T A E A T E N T F T A N T AT I N

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT4

    2. Work to increase safety by providing turn-off lanes where possible and by ensuring proper trafc

    signage is in place.

    NDDOT will develop a plan to add turn-off lanes this season on US Highway 2 from Stanley to Williston,

    working with city and county governments as part of the land-use planning and platting process. Additionalturn-off lanes will be developed throughout the regions state highway system.

    NDDOT is reviewing the status of signage, trafc lights and speed limits in Oil Country with an emphasis

    on improved safety of the traveling public.

    The creation of turn-off lanes to address trafc ow will be pursued in cooperation with private company

    investments (i.e. water depots, crew camps, etc.) as new approaches are installed. Local governments will be

    encouraged to seek direct company investments in turn-off lanes as new highway approaches are developed

    3. Reduce damage to highways through load limit enforcement.

    ND Highway Patrol will promote increased use of portable scales on state and county highways.

    ND Highway Patrol will increase the personnel and time allocated to load limit enforcement.

    ND Highway Patrol and NDDOT will develop a proposal for the Legislature to consider allowing countiesto share in the nes collected on county roads.

    4. Work with state and local leaders to manage trafc dust.

    This summer Dunn and McKenzie counties will be working with NDDOT, the ND Health Department

    and the Upper Great Plains Transportation Institute to evaluate various dust management strategies through

    a $440,000 matching grant with the ND Oil and Gas research program. The ndings of this research will

    aid in nding solutions to reduce the impacts from dust.

    NDDOT will encourage cities and counties to develop voluntary dust management efforts with local

    haulers.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT5

    5. Expedite pipeline and gathering system development.

    The ND Pipeline Authority will continue to encourage, incentivize and expedite the development of

    intrastate and gathering pipelines (water, oil, gas) which will remove trucks from the roads.

    The ND Pipeline Authority will facilitate education and discussion between industry and landowners to

    address concerns related to the rapid development of the states pipeline infrastructure.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT6

    HOUSING

    North Dakotas robust economy and growing population have created strong demand for housing throughout

    the state, but nowhere is the demand for affordable housing more acute than in the states oil- and gas-producing

    counties. Housing demand is greatest in communities that are in close proximity to areas of concentrated oil and

    gas development. Adding to the demand for affordable housing in Ward County is the displacement of residentswho are recovering from major ooding in the Souris River Basin.

    Ofcials, based on the working meetings with local leaders, have identied the following issues regarding the

    demand for affordable housing in the states oil and gas counties:

    1. Local ofcials request funding assistance for public infrastructure

    critical to residential development.

    The state has provided $135 million in grant funds to facilitate

    housing construction and to meet other impacts from energy

    development. To date approximately $76 million of the $135 million

    grant funds remain to be distributed. The ND Department of Trust

    Lands Energy Impact Ofce will continue working with counties,

    cities and other political subdivisions to provide grants to extend

    city streets, expand sewer systems, expand landlls and provide

    other public infrastructure upgrades that facilitate the continued

    development of housing.

    The City of Minot is also eligible for state ood impact grants through the ND Department of Trust Lands

    which will also help with residential development.

    The Bank of North Dakota will bring additional resources into the Flex PACE Program to provide low-

    interest rate loans to property developers who construct multi-family housing projects in oil-producing

    counties. Flex PACE buys down interest rates on building loans to as low as 1 percent.

    Large scale units are needed to meet

    demand and increase the availability of

    affordable housing.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT7

    2. Communities in oil and gas counties need funding support to develop housing for low-income and

    moderate-income residents.

    Community leaders from Williston to Bowman said rising rents and home values are creating a signicant

    shortage of affordable housing for teachers, county and city employees, and low- and moderate-income

    residents.

    The Housing Incentive Fund, administered by the ND Housing Finance Agency (NDHFA), provides $15

    million in tax credits for developers of low- and moderate-income housing during the 2011-2013 biennium.

    Ninety percent of the fund, or $13.5 million, is targeted to projects in the 17 oil and gas counties. To date,

    the NDHFA has leveraged $3.8 million in conditional commitments for the construction of 286 affordable

    housing units in Oil Country. The residential housing projects, valued at $42 million, are in various stages of

    construction.

    NDHFA will work with communities considering the establishment of Community Land Trusts. Operated

    by non-prot organizations, Community Land Trusts can develop an inventory of affordable housing for

    low- and moderate-income families.

    3. Communities seek expertise in the planning and development of residential growth.

    Specic challenges include managing rapid residential growth, lack of available land within city limits, planning

    for anticipated growth, and planning to meet the various types of housing needs. A variety of sources are

    available to local leaders to assist them in residential development and growth.

    The NDHFA provides technical assistance directly and through its Statewide Technical Assistance Team

    (STAT) to cities, counties and other political subdivisions. NDHFA will continue to meet with local ofcials

    to assist in developing strategic housing plans that take into account communities expected growth and the

    current and future needs for housing for low- and moderate-income residents.

    The ND Department of Commerce will provide coordination and information services for regional housing

    development and serve as a resource on building codes, zoning ordinances and permitting processes that

    promote responsible development.

    ND Department of Commerce and NDHFA will encourage communities and counties in their region to

    adopt best practice ideas. Cooperative efforts will maximize resources and make region-wide services more

    effective.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT8

    SAFETY

    North Dakotans enjoy a quality of life that is the envy of the nation, and an important contributor to that quality

    of life is the emphasis we place on public safety. Whether strengthening our emergency response capabilities,

    protecting our communities or keeping our roadways safe, public safety remains a top priority. As western

    North Dakotas economy and population continue to grow, safety will be at the forefront of our planning anddevelopment.

    Ofcials, based on the working meetings with local leaders, have identied the following public safety concerns in

    the states oil and gas counties:

    1. Greater law enforcement presence across the region.

    Many communities in the west are hiring additional law

    enforcement staff to deal with the increased demands. This greater

    presence also increases visibility and awareness among motorists.

    In order to support local law enforcement, Governor Dalrymple

    directed the placement of nine additional ND Highway Patrol

    ofcers in western communities, with four more troopers to be

    deployed in July 2012.

    The ND Highway Patrol will continue to partner with smaller communities that do not have their own lawenforcement resources to provide increased visibility and enforcement.

    2. Greater emphasis on motorist safety.

    The implementation of turn-off lanes, better signage, more stoplights and reduced speed limits will be

    reviewed and implemented by the NDDOT.

    Stronger trafc enforcement and increased nes will be implemented, especially at locations where trafc

    ows intersect. Aerial surveillance will be used by the ND Highway Patrol to improve enforcement.

    The ND Highway Patrol will expand the Trooper-on-a-Bus program to protect students on school buses

    and allow ofcers to issue trafc citations from a school bus for those violating safety laws. This program

    has been successfully implemented in smaller western North Dakota communities, including Alexander,

    with six additional schools participating in the coming weeks.

    Increased visability and awareness is an

    added benet of increasing law enforcement

    numbers in the west.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT9

    3. Improve safety of truck trafc.

    Truck size and weight enforcement will be increased on state and county highways. ND Highway Patrol

    and NDDOT will develop a proposal for the Legislature to consider allowing counties to share in the nes

    collected on county roads.

    The state will consider options for expediting the permitting of pipelines (water, oil, gas) and gathering

    systems to reduce truck trafc on the regions roadways.

    The ND Highway Patrol will increase saturation programs and safety inspections for both commercial

    motor vehicles and drivers.

    The ND Highway Patrol will continue to work with the motor carrier industry to educate drivers about legal

    loading and truck safety. The ND Highway Patrol, NDDOT and the ND Petroleum Council are currently

    working together as part of ProgressZone, a public outreach campaign designed to promote trafc safety in

    Oil Country.

    4. Strengthen emergency management services.

    Energy Infrastructure and Impact Grants will help communities

    address emergency services training, equipment and hiring needs. These

    grants will assist ambulance services, re department and emergencyresponders. The State Board of Trust Lands recently allocated $7 million

    for these grants, targeted to the most highly-impacted communities.

    Emergency service needs (EMT, ambulance,

    re, etc.) are growing along with western

    populations.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT10

    PLANNING & COORDINATION

    Meeting western infrastructure needs is a combined effort of state and local governments working together

    along with industry. Planning and coordination is a key element to ensuring our communities make the best

    decisions possible about their futures. The items identied in this area, support progress on immediate issues while

    developing thoughtful plans for long-term investments that will enhance the infrastructure of the region.

    1. Better coordination efforts are needed between all partners in western North Dakota.

    Assign a state Energy Impact Coordinator to monitor local issues and report on the regions needs to the

    Governors Ofce and cabinet members on a regular basis.

    Governor Dalrymple has charged the ND Department of Commerce to work with state, local and industry

    leaders to assist in planning efforts of all kinds.

    ND Department of Commerce will assist local governments and other entities in knowledge sharing and

    best practices such as zoning ordinances, nancing opportunities, main street development, etc. so all are

    better prepared to support infrastructure growth and economic development.

    Use the already established Business Hotline number as a central intake point for questions regarding

    western development issues 1-866-432-5682 (4Dakota).

    2. Monitor oil development permitting processes to ensure the best information is available regarding

    impacts.

    The state will seek to work cooperatively with industry to better forecast future oil expansion so local level

    planning can address projected growth through water availability, roads and housing infrastructure.

    The ND Industrial Commission Oil and Gas Division will monitor the drilling permit process to identify if

    there are ways in which expansion of infrastructure and oil well development can be better coordinated.

    Governor Dalrymple, along with the ND Industrial Commission Oil and Gas Division and the ND

    Department of Commerce, will continue conversations with industry to urge them to forecast development

    short- and long-term to assist communities in their infrastructure planning efforts.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT11

    3. Review the Oil and Gas Distribution Fund to determine if resources can be more effectively targeted

    with adjustments to the formula.

    Oil and gas taxes are distributed monthly to oil-producing counties and cities. The legislative forecast provides

    for $247.2 million to be distributed to counties and cities during the 2011-13 biennium. Higher levels of

    production, if they hold throughout the biennium, could produce additional revenue.

    The ND Tax Department and the ND Department of Trust Lands will work with local government to

    explore how formula adjustments could more effectively distribute funds into the most highly impacted

    areas. Previously used nancing methods, such as the coal distribution fund, will also be reviewed for

    effectiveness in nancing education buildings and other infrastructure.

    4. Rapid school enrollment growth requires extensive planning for future school building capacity.

    The legislature provided a special supplemental distribution of funds to help school districts meet growing

    operating expenses due to rapid enrollment growth. However, construction of new school buildings will require

    nancing options beyond those currently available.

    The Ofce of Management and Budget will develop a proposal for the legislative assembly to consider

    for sources of funds to nance school building construction in rapidly growing districts. The proposal will

    include possible waivers on debt ceiling limits and budget growth limits on certain rapidly growing districts.

    The ND Department of Commerce will assist in coordinating planning services for school districts thatneed assistance.

    The state recognizes other school growth challenges and will organize additional meetings with school

    districts in oil and gas producing counties.

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    2012 WESTERN INFRASTRUCTURE DEVELOPMENT12

    5. Participate in long-range planning efforts.

    Many long-range planning efforts are being conducted that will continue to support the strategic coordination

    of efforts not only in the west but statewide.

    The Upper Great Plains Transportation Institute (UGPTI) completed planning for road reconstructionon the poorest roads in oil and gas counties in 2010, which is being implemented now as part of 2011

    legislative action. UGPTI will update the statewide road plan again in 2012 and every two years thereafter.

    The ND Housing Finance Agency has commmisioned a statewide housing study to be completed in the

    summer 2012. The study will include specic assessments regarding the need for housing in Oil Country.

    This information will be used in conjunction with the western area housing study conducted by the ND

    Department of Commerce in 2010. These combined efforts will advance the states housing development

    strategy.

    To expand North Dakotas vision for the future, Governor Dalrymple and the ND Chamber of Commerce

    have teamed up to launch 2020 & Beyond, a 20-year plan that will advance North Dakotas development

    opportunities well into the future. 2020 & Beyond will provide a report to Governor Dalrymple and the

    North Dakota Legislature in the fall of 2012 outlining its recommendations for furthering North Dakotas

    growth and enrichment.

    Succeed 2020 aims to improve North Dakotas education and workforce development systems and increase

    students achievement in middle grades and high school, access to and success in postsecondary education,and preparation for 21st century careers. The overarching goal is to create successful transitions from school

    to college and careers for North Dakota students.

    Vision West ND, a partnership formed between the Southwest Rural Economic Area Partnership and the

    North Dakota Association of Oil & Gas Producing Counties, is working with 14 western communities

    over the next year to assist in strategic planning through a $1.5 million grant from Housing and Urban

    Development. The Vision West ND project will assist in bringing counties and cities together to work

    cooperatively to best support the infrastructure needs of the west. In addition, the strategic planning effort

    can help address individual community and regional needs for everything from education and main street

    business to recreation and childcare.

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    PARTICIPATING AGENCIESFROM 2012 WESTERN INFRASTRUCTURE DEVELOPMENT MEETINGS

    ND Department of Commerce

    Al Anderson, Commissioner1600 E Century Ave, Ste 2PO Box 2057Bismarck, ND 58502-2057Phone: 701-328-5300Toll-Free: 866- 432-5682

    www.NDCommerce.com

    ND Housing Finance Agency

    Mike Anderson, Director2624 Vermont AvenuePO Box 1535Bismarck, ND 58502-1535Phone: 701-328-8080Toll-Free: 800-292-8621www.NDHFA.org

    ND Department of TransportationFrancis Ziegler, P.E., Director608 East Boulevard AvenueBismarck, ND 58505-0700Phone: 701-328-2500Toll-Free: 800-366-6888www.DOT.nd.gov

    ND Department of Trust Lands

    Lance Gaebe, Commissioner1707 North 9th Street

    PO Box 5523Bismarck, ND 58506-5523Phone: 701-328-2800www.Land.nd.gov

    ND Water Commission

    Todd Sando, P.E., State Engineer900 E Boulevard Ave # 770Bismarck, ND 58505Phone: 701-328-2750www.SWC.nd.gov

    ND Health Department

    Terry Dwelle, M.D., State Health Ofcer

    600 East Boulevard AvenueBismarck, ND 58505-0200Phone: 701-328-2372www.NDHealth.gov

    Upper Great Plains Transportation Institute

    Denver Tolliver, Associate DirectorNDSU Dept 2880

    PO Box 6050

    Fargo, ND 58108-6050Phone: 701-231-7767www.UGPTI.org

    ND Highway Patrol

    Colonel James Prochniak, Superintendent

    600 E Blvd Ave, Dept 504Bismarck, ND 58505

    Phone: 701-328-2455www.nd.gov/NDHP

    Bank of North DakotaEric Hardmeyer, President1200 Memorial HighwayBismarck, ND 58504Phone: 701-328-5600

    Toll-Free: 800-472-2166www.BankND.nd.gov

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    State of North Dakota

    Governor Jack Dalrymple

    600 East Boulevard AvenueBismarck, ND 58505-0001

    Phone: 701-328-2200www.Governor.nd.gov