My voice: Oil & gas politics: S.D.’s pipeline follies

The South Dakota Public Utilities Commission should approve the Dakota Access Pipeline because it will provide additional energy supplies that originate in this region, and pipelines are a safe way to transport many products. A truth that is nearly self-evident.

Do you ever think about the water you use for your meals, showers and toilets; or the gas that provides heat or the gasoline for your vehicles? Honestly, if you said yes, that’s a bit odd. Thankfully, those things can be taken for granted, but if we do give them some thought; they have one thing in common … pipelines.

All of these things are delivered via pipelines, safely and virtually without incident. The only time the public thinks of pipelines is when there is a new one being proposed or on the rare occasion when one gets damaged or malfunctions, in which case it is in the news for a short time while it gets cleaned up and repaired.

The PUC is currently reviewing the proposed Dakota Access Pipeline that will deliver crude oil from North Dakota to the Chicago area, where it will join existing pipelines and go to various refineries.

There is much support for this pipeline from unions whose members will do the construction and the business community; including the S.D. Chamber of Commerce and Industry that understands there will be short-term economic gains from the construction and long-term energy supply and security gains from using oil that is not imported.

To prove there is significant economic gain from the construction of a pipeline, we need only look at the construction of TransCanada’s pipeline through eastern South Dakota during the most dire days of the recent recession. There are many communities willing to testify that the pipeline saved their businesses that year.

And there are opponents. There have been a few opponents of the pipeline that have expressed concerns about the safety of pipelines and have written editorials that site some horrendous accident. A review of the facts clearly shows that pipelines have not been perfect, but the times when they have leaked have been very short in duration and have been cleaned up in an efficient manner. S.D. has more than 10,000 miles of pipelines running underground throughout the state carrying energy products alone. Sioux Falls has more than 1,500 miles of water and sewer pipes. All of these pipelines operate 24 hours a day, 365 days a year and they rarely have leaks. When they do run into problems, those problems are fixed immediately.

The vast majority of the opposition has nothing to do with the construction or operation of a pipeline, but rather are expressing objections to the use of fossil fuels, the drilling in N.D., and holding out a premature notion that if the country declines to use the energy that is at hand, renewable energy can become sufficient to meet the need of the economy and our citizens.

Renewable energy is a maturing industry and is playing a more significant role in meeting the country’s needs. Renewable energy will play a larger role in the long-term future, but at this point it can’t be counted on to meet the highest demand levels when they actually occur. America needs to invest in renewable energy, but in the foreseeable future, it would be unwise to depend on it to meet peak demands. Opponents to the pipeline, suggesting that wind and solar energy is a better choice, actually create a false dichotomy and do a disservice to the public’s best interest.

The S.D. Chamber of Commerce and Industry appreciates the time being taken by the PUC to make sure that Dakota Access pipeline is as safe as possible and that the route taken will work for the citizens of our state. This fits the mission of the PUC. After completing this review, the Chamber urges the PUC to approve the Dakota Access Pipeline. It is wise use of an energy resource located in the U.S. and will bring economic gains to many S.D. communities and small businesses.

My voice: S.D. Chamber of Commerce supports pipeline

The South Dakota Public Utilities Commission should approve the Dakota Access Pipeline because it will provide additional energy supplies that originate in this region, and pipelines are a safe way to transport many products. A truth that is nearly self-evident.

Do you ever think about the water you use for your meals, showers and toilets; or the gas that provides heat or the gasoline for your vehicles? Honestly, if you said yes, that’s a bit odd. Thankfully, those things can be taken for granted, but if we do give them some thought; they have one thing in common … pipelines.

All of these things are delivered via pipelines, safely and virtually without incident. The only time the public thinks of pipelines is when there is a new one being proposed or on the rare occasion when one gets damaged or malfunctions, in which case it is in the news for a short time while it gets cleaned up and repaired.

The PUC is currently reviewing the proposed Dakota Access Pipeline that will deliver crude oil from North Dakota to the Chicago area, where it will join existing pipelines and go to various refineries.

There is much support for this pipeline from unions whose members will do the construction and the business community; including the S.D. Chamber of Commerce and Industry that understands there will be short-term economic gains from the construction and long-term energy supply and security gains from using oil that is not imported.

To prove there is significant economic gain from the construction of a pipeline, we need only look at the construction of TransCanada’s pipeline through eastern South Dakota during the most dire days of the recent recession. There are many communities willing to testify that the pipeline saved their businesses that year.

And there are opponents. There have been a few opponents of the pipeline that have expressed concerns about the safety of pipelines and have written editorials that site some horrendous accident. A review of the facts clearly shows that pipelines have not been perfect, but the times when they have leaked have been very short in duration and have been cleaned up in an efficient manner. S.D. has more than 10,000 miles of pipelines running underground throughout the state carrying energy products alone. Sioux Falls has more than 1,500 miles of water and sewer pipes. All of these pipelines operate 24 hours a day, 365 days a year and they rarely have leaks. When they do run into problems, those problems are fixed immediately.

The vast majority of the opposition has nothing to do with the construction or operation of a pipeline, but rather are expressing objections to the use of fossil fuels, the drilling in N.D., and holding out a premature notion that if the country declines to use the energy that is at hand, renewable energy can become sufficient to meet the need of the economy and our citizens.

Renewable energy is a maturing industry and is playing a more significant role in meeting the country’s needs. Renewable energy will play a larger role in the long-term future, but at this point it can’t be counted on to meet the highest demand levels when they actually occur. America needs to invest in renewable energy, but in the foreseeable future, it would be unwise to depend on it to meet peak demands. Opponents to the pipeline, suggesting that wind and solar energy is a better choice, actually create a false dichotomy and do a disservice to the public’s best interest.

The S.D. Chamber of Commerce and Industry appreciates the time being taken by the PUC to make sure that Dakota Access pipeline is as safe as possible and that the route taken will work for the citizens of our state. This fits the mission of the PUC. After completing this review, the Chamber urges the PUC to approve the Dakota Access Pipeline. It is wise use of an energy resource located in the U.S. and will bring economic gains to many S.D. communities and small businesses.

Cherokee County Court Upholds Proper Legal Process, Dismisses Lawsuit Against the IUB

A judge in the District Court in Cherokee dismissed a case against the IUB, explaining that the plaintiffs in the case had not availed themselves of all of the remedies available to them before filing a lawsuit against the Iowa Utilities Board.

The suit was filed in July and challenged whether or not the IUB had authority to render a decision on the application to construct the proposed Dakota Access Pipeline. The IUB and Dakota Access filed a motion to dismiss the suit in August.

Judge Carl J. Petersen explained his decision to dismiss the case in his written opinion:

As all of Petitioners’ potential wrongs are provided for in the relevant statute, intended for review by IUB, and are subject to application for judicial review following IUB’s decision, the wrongs are adequately addressed through the administrative process.

The MAIN Coalition applauds the decision to dismiss the case, which not only sought to undermine the legitimacy of the Iowa Utilities Board, but also tried to delay the agency’s decision on the application of the proposed Dakota Access Pipeline. We believe that the lawful process was upheld as a result of this decision, which is critical to ensuring that Iowa’s business climate remains stable, predictable, and open to the investments the state needs to grow.

Read the entire story here.

Letter: Dakota Access Pipeline would bring jobs

Recently, I attended a hearing of the South Dakota Public Utilities Commission and listened to arguments both for and against the Dakota Access Pipeline. As a laborer and native South Dakotan, it is my opinion that the Dakota Access Pipeline does serve a public purpose, as it makes the transport of crude safer and less disruptive while also delivering an abundance of economic benefits to our region.

Insufficient pipeline infrastructure has placed strain on the regional freight network, forcing Bakken crude to move to refineries via rail. This is costly to all parties involved, especially farmers who rely on rail service to move their crops. As calculated by S.D. market analyst Elaine Kub for the American Farm Bureau Federation, the strain placed on the region’s rail network cost farmers a half a billion dollars in lost profits during the 2014 harvest season.

From an economic and labor standpoint, the Dakota Access project will bring thousands of well-paying, local construction jobs to communities along the pipeline route. Additionally, this multibillion dollar project will deliver countless indirect benefits to our local businesses and generate millions of dollars in tax revenue for our communities.

The S.D. PUC is currently reviewing the Dakota Access Pipeline’s application, and I sincerely hope that they see the mutual benefits that this investment can bring to all South Dakotans.

Coalition Visits Iowa Utilities Board to Show Support for Dakota Access

Members Highlight Importance of Project in Face of Forecasted State Revenue Shortfalls, Governor’s Plan to Increase Skilled Labor Opportunities

DES MOINES – With a public hearing to consider the Dakota Access pipeline less than a month away, members of the Midwest Alliance for Infrastructure Now joined on Thursday to stress to regulators the ability of projects like Dakota Access to boost the Iowa economy through new tax revenue and skilled labor opportunities. On the heels of news that slumping farm income will reduce forecasted state revenue by more than $120 million during the current fiscal year, MAIN members underscored the vital importance of large-scale projects like Dakota Access capable of creating jobs and generating revenue for the state of Iowa.

“Iowa’s economic well being depends upon a robust, productive, and continually growing business community,” said Mike Ralston, President of the Iowa Association of Business and Industry. “But the business community needs more than just a good idea and hard work to flourish – it also needs a business climate that encourages new investment like the Dakota Access project. As regulators consider Dakota Access in the weeks ahead, I hope they will consider the vital role the project can play in keeping our state budget healthy and our economy growing.”

The proposed pipeline project presents an opportunity for a $1.04 billion capital investment to the state of Iowa and that will create between 2,000 and 4,000 construction jobs – many of which include the high-skilled trade and apprenticeship positions sought after by state leaders.

“Dakota Access is poised to create thousands of jobs for skilled laborers here in Iowa,” added Bill Gerhard, President of the Iowa State Building and Construction Trades Council. “Good paying jobs like those provided by Dakota Access help us to support their families, invest in their communities, and make sure Iowa’s economy remains among the best in the nation. We’re ready to get to work, and we look forward to sharing our perspective with the IUB as they weigh the project’s merits.”

Governor Branstad and Lt. Governor Reynolds recently announced the Future Ready Iowa plan, which seeks to improve the outlook for skilled labor in the state of Iowa.

“Projects of this magnitude deserve careful, deliberate consideration,” continued Ed Wiederstein, MAIN Chairman and past president of the Iowa Farm Bureau. “As the process moves forward, we urge the IUB to focus on the facts surrounding the unmistakable boost that Dakota Access will provide to our economy, our energy security, and the safety and efficiency with which we move the energy that we all use every day. It is vital that this process be driven by facts, not by inflammatory rhetoric.”

About MAIN: The Midwest Alliance for Infrastructure Now (MAIN) is a partnership of entities from agriculture, business, and labor sectors aimed at supporting the economic development and energy security benefits associated with infrastructure projects in the Midwest. MAIN is a project of the Iowa State Building and Construction Trades Council and boasts nearly 50 members across four states. Visit us online at www.MWAllianceNow.org or follow us on Facebook and Twitter.

Iowa Governor: Apprenticeships and Skilled Labor Crucial to Iowa’s future

Governor Terry Branstad and Lieutenant Governor Kim Reynolds have announced an initiative to boost skilled labor workers in Iowa through a blueprint called the Future Ready Iowa plan.

According to reports, the plan “aims to increase the number of Iowans with two-year and four-year degrees, as well as apprenticeships and other certifications.”

Energy infrastructure projects such as the Dakota Access Pipeline will be built using thousands of Iowa craftsmen. The men and women responsible for the project’s construction are highly trained, having acquired skills through endless hours on the job and training sessions held by various union groups. If increasing the number of apprenticeships and skilled labor jobs is to be a reality for Iowa than approval of large-scale energy infrastructure projects like Dakota Access must be a part of the greater plan.

Read more about this story from The Des Moines Register here.

Unpredictable Revenue Forecasts Highlights Importance of Infrastructure Investment

The Iowa Revenue Estimating Conference, a three member board tasked with determining how much money the state can foresee coming into the state treasury, has announced yesterday that general fund revenue estimates have shrunk for the current year. The causes of the revenue drop are numerous, as The Des Moines Register explains:

While many revenue concerns cited by the panel related to a drop in farm income, experts said a host of other factors — including worries about the global economy, uncertainty regarding Iowa’s manufacturing sector and a loss of state sales taxes on goods purchased on the Internet — were also considerations in their estimates.

 While the revised estimates don’t necessitate spending cuts at the moment, they do serve to highlight the need for diversification of the way that states like Iowa earn revenue. The agricultural sector, which has forced the revision, will always be a significant part of the revenue stream, but Iowa should also consider the impact that expanded energy infrastructure can bring.

The Dakota Access Pipeline, a project estimated to generate about $50 million during construction will net the state around $27 million. Additionally, Dakota Access recently reported that over $200 million has been set aside to purchase construction equipment from Vermeer and John Deere, two Iowa-based businesses. Projects like these can not only make energy transportation safer and more cost effective, but can be revenue drivers as well.

Read more about this story from The Des Moines Register here.

South Dakota Petroleum Marketers Association Corrects Opposition Amid Skewed Facts

The South Dakota Petroleum and Propane Marketers Association is the setting the record straight after recent attempts by environmental activists to disseminate false information about the Dakota Access Pipeline during the South Dakota Public Utilities Commission hearing. Environmentalists are claiming that Bakken crude is somehow more volatile than other types of crude oil, despite the director of the National Transportation Safety Board (NTSB) discounting this ‘fact’ just last month.

In a press release, Dawn Leitzke, Executive Director of the South Dakota Petroleum and Propane Marketers Association noted the PUC hearings are “not a forum for political debate, rather a place for reasoned, structured testimonies based in fact.”

Leitzke goes on to say, “South Dakota has over 6,500 miles of gas and petroleum pipelines buried underground. That’s twice the length of the country, and they operate safely daily. These pipelines help power the state and regional economy, and deliver energy to the consumers who need it.”

The bottom line is that “Bakken crude has significantly eased the energy supply burden for the upper Midwest,” and the proposed Dakota Access Pipeline would provide safe and reliable source of transportation for these valuable natural resources.

Read the full release here.

Environmentalists Skew Facts In PUC Hearings On Pipeline

South Dakota Petroleum Marketers Association Corrects Opposition Amid Public Utilities Commission Hearings

Pierre, SD – In the midst of South Dakota’s Public Utilities Commission hearing on the Dakota Access Pipeline, environmental activists have begun disseminating falsities to support their stance against the project. There are specific facts about this project, and the need for energy in this state that must be known.

“This is not a forum for political debate, rather a place for reasoned, structured testimonies based in fact,” said Dawna Leitzke, Executive Director of the South Dakota Petroleum and Propane Marketers Association.

Many environmentalists claim that Bakken crude is somehow more volatile than other types of crude oil, often scaring residents near valuable transport infrastructure. This ‘fact’ was discounted just last month by the director of the National Transportation Safety Board (NTSB). According to the South Dakota Petroleum and Propane Marketers Association, Bakken crude has significantly eased the energy supply burden for the upper Midwest.

“South Dakota has over 6,500 miles of gas and petroleum pipelines buried underground. That’s twice the length of the country, and they operate safely daily. These pipelines help power the state and regional economy, and deliver energy to the consumers who need it,” said Ms. Leitzke.

The South Dakota PUC began their evidentiary hearing proceedings last week on Tuesday, September 29th in Pierre on a permit to construct the Dakota Access Pipeline. The hearing is expected to continue until October 9th.

Pipelines are subjected to rigorous testing, and are inspected thoroughly by trained craftsman. Importantly, waterways crossings are additionally secured by automatic shutoff valves.

The South Dakota Petroleum and Propane Marketers represents multiple sectors of the economy that rely on petroleum resources to grow. Investments like the Dakota Access Pipeline can help cement the 21st century as America’s energy century and will ensure a better economy and a better future. It is important that facts, not conjectures and distortions guide the decision of the Public Utilities Commission.

IUB Upholds Orderly DAPL Approval Process, Rejects Motion for Time Delaying Study

The Iowa Utilities Board expressed its commitment to an orderly approval process in the case of the application for the Dakota Access Pipeline, rejecting a motion from the Sierra Club for an environmental review. The MAIN Coalition was active in the case, arguing that the IUB has no express authority to order such a review and that other state agencies more qualified to conduct such as an assessment may raise the issue via testimony submitted to the agency.

In its decision to reject the motion for a study, the Iowa Utilities Board stated:

The Board will not address in this order the sufficiency of the testimony Dakota Access has filed, as that is something for the Board to decide after the hearing. (…) The fact remains that the existing agency process has been sufficient to address environmental issues in the past and so far, no one has shown that it will not be sufficient here.

It must be noted that the Sierra Club and No Bakken Here, who filed the motion, did so not out of concern for the safety of the project, an aspect that has been addressed at length in the already ongoing process, but as a tactic to delay, stall, and ultimately reject the project. If such an action were to happen, it would deny access jobs to be created by its construction for thousands of Iowans, and forfeit the millions of dollars of tax revenue that the Dakota Access Pipeline would generate for the state. A similar last-minute motion was rejected last week by the South Dakota’s Public Utility Commission, who expressed concerns at the last minute motion to stay the proceedings with no real precedent to support such a decision. The Sierra Club also had another such action rejected by the D.C. Circuit Court of Appeals for a pipeline in Missouri.

While it is important to make sure that energy infrastructure investments are safe, this should not be done in bad faith as a mere delay tactic. The Dakota Access Pipeline offers the Midwest a safer and more secure option of transporting American-produced energy out of the region. To not invest in energy infrastructure means accepting the status quo, with oil trains picking up the slack.

While future generations may utilize power from non-traditional energy sources on an economically feasible scale, to suggest it as a viable alternative to improving the delivery of the fuels we use today is irresponsible and belongs in the realm of fantasy. Unfortunately, that is the only alternative that groups such as the Sierra Club and No Bakken Here can come claim.

We are confident that the state agencies involved in approving energy infrastructure projects will hold up public safety as a priority and will proceed accordingly. Based on the current operation of more than 40,000 miles of pipelines in Iowa, we are confident that the Dakota Access Pipeline will be operated in a likewise safe manner.

Read the full decision here.