MAIN Co-Chair: Dakota Access a “Long-Term Investment in Iowa’s Future”

Mike Ralston, president of the Iowa Association of Business and Industry (ABI) reiterated his support for the Dakota Access Pipeline project underscoring its importance to the business climate of the state. As the voice of Iowa business, ABI has long advocated for a competitive business climate in the state and sought to support investments that would benefit the state economy. According to Ralston, the Dakota Access Pipeline does just that:

“The Dakota Access Pipeline will provide a boost to our state’s economic growth in a variety of ways. These benefits go well beyond the direct private investment. During construction, thousands of workers will live in local hotels, eat at locally-owned restaurants and buy gas at area gas stations. The construction work alone is expected to generate $35.3 million in sales taxes and $14.6 million in income taxes. All of this new revenue will be invested back into our state and local communities.

(…) The employment opportunities, an influx of new revenue to businesses along the pipeline’s route and future benefits for our state and local communities are all examples of why this project makes sense for Iowa. After construction, the pipeline will deliver more than $27 million in revenue to our local communities. This means even more potential funding for schools and community services and programs.”

In addition to improving Iowa’s economy, Ralston points out the benefits to the nation’s energy market:

“This project also represents an investment in domestically produced energy, which is beneficial to all Iowans. The United States is now the largest oil and natural gas producer in the world. This not only helps the many businesses engage in these efforts, it also helps us here in Iowa as a large consumer of petroleum products for our agriculture and manufacturing industries.”

To read Ralston’s complete remarks, click here.

Guest Blog: Let us Build Dakota Access Right

By Will Thomssen

As South Dakota’s Public Utility Commission continues to review the application of the Dakota Access Pipeline, it is clear that this is an investment which is beneficial to our state, the region, and the country. With a capital investment of nearly one billion dollars in South Dakota, the Dakota Access Pipeline will create anywhere between 2,000 and 4,000 jobs, half of which will be sourced from local union halls.

While this is good news for the working men and women of South Dakota, it also means that the income generated by this project will benefit the local businesses and communities along the route of the pipeline through payroll taxes and spending. By choosing to work with unions, the Dakota Access Pipeline will be built using the best and most well trained workforce possible. Men and women working in the construction field are constantly sharpening their skills both through countless hours of real world experience as well as through courses and classes.  As a long-time member of the International Union of Operating Engineers, I support the construction of the Dakota Access Pipeline and can proudly say that we will get the job done right.

Will Thomssen is a South Dakota resident and member of Local 49 ABR, International Union of Operating Engineers.

U.S. Energy Companies Named “Investment Heroes” for 2015

Over the last few years, politicians and the American public have been debating over the right way to reenergize our national economy and bring back a time of national prosperity, in a way that helps all segments of our society.

Since 2012, the Progressive Policy Institute (PPI) has been analyzing a critical driver of the national economy, companies with high domestic investment, and published an annual report entitled U.S. Investment Heroes, which documents their findings. As PPI stated, “sustainable economic growth, job creation, and rising real wages require domestic business investment.” Energy companies have had a large percentage of the list to themselves, and for good reason. Energy production requires a skilled labor force and taps into various parts of the economy.  Many experts have credited the energy revolution and low energy costs for American businesses as the reason why the American economy was able to weather the recession to the extent that it did.

On the list of the top 15 “Investment Heroes”, 7 are occupied by energy companies. Among them is Energy Transfer Equity, a company in the same family as Energy Transfer Partners, the constructors of the planned Dakota Access Pipeline with U.S. based investments, totaling over $5.3 billion.

The MAIN Coalition has advocated for increased investment in energy infrastructure in the Midwest for many reasons, one of which being the stimulus potential for domestic and regional markets. The Dakota Access Pipeline is a great example of how U.S. domestic investment can benefit American workers. American steel mills were booked to capacity in order to produce the pipe for the project, and Midwestern contractors have been tapped to do the job, which they have pledged to complete using 100% union labor, sourced in large part from local union halls.

As the South Dakota Public Utility Commission kicks off its ten day hearing to look at the pipeline’s application, it should be worth reiterating the positive economic effects that such a pipeline would bring to the Midwest. There is no reason why the billions of dollars that are invested into our national economy by American companies cannot benefit the families and communities in our region.

Read the full report here.

Why the South Dakota Public Utilities Commission Should Approve Dakota Access

The South Dakota Public Utilities Commission kicks off a two-week hearing this week examining the question of whether or not to approve the Dakota Access Pipeline. The pipeline is a multi-billion dollar major investment in the energy infrastructure of the Midwest, and will provide a safe, reliable delivery method for around a half million barrels per day of American crude oil to American consumers.

The project deserves the PUC’s approval, and not just because it will benefit our state, or because it will create jobs and investment throughout the Midwest. The project deserves the PUC’s approval because it is a vital and necessary step forward for the energy infrastructure upon which South Dakota and our entire nation relies.

Close to home, the Dakota Access Pipeline will benefit the state in numerous ways. For one, it will make the transport of oil in the state and in the region safer. Due to a lack of adequate infrastructure, the beginning of the energy revolution marked a sharp increase in the amount of oil transported by rail in the region. Great as the freight rail system is in our country, it just simply was not designed with petroleum shipping in mind. The winding and often circuitous routes traveled by crude trains through South Dakota put strain on regional freight infrastructure and, unfortunately, can put our environment at risk of spill, derailment, or other unexpected incidents. Pipelines come with some risk too – and we all know that no method of transportation – whether it’s an automobile, an airliner, or anything in between – is perfect. But managing the risk associated with transporting crude oil must be a priority, and statistics from the federal government and numerous other sources have consistently shown that pipelines are the safest mode of transporting petroleum.

In addition to making South Dakota safer, shifting crude off roads and railways and into pipelines allows farmers to gain easier access to rail cars when they need them. A recent paper released by the American Farm Bureau Federation made clear that overburdened rail infrastructure can have a significant effect on farmer’s bottom lines. The 2014 harvest season alone brought losses totaling well over half a billion dollars. Freight rail costs ballooned to $500 to $8,000 over tariff per rail car. Rail carriers have made considerable progress in their efforts to improve service overall, but even under the best of conditions, the rapid uptick in crude oil production in the Bakken region means that other freight alternatives must be developed if grain farmers and other commodities shippers hope to keep pace. Developing our region’s rich oil reserves should not negatively impact our state’s farmers and ranchers, and it doesn’t have to.

Adding to safety and reliability, there are economic benefits to be gained. The project represents a capital investment of $820 million in South Dakota alone and is estimated to generate around $38 million in sales and income taxes during its construction. The pipeline will provide South Dakota with a new stream of property taxes once completed, with over $13 million estimated to be paid in 2017. The project will create between 2,000 and 4,000 construction jobs for South Dakotan men and women.

The South Dakota members of the MAIN Coalition represent a diverse set of industries and trades. From hospitality, to agriculture, to trucking, and construction, we are united in the belief that our state should take advantage of the opportunity before us and commit to improving our energy infrastructure. The Dakota Access Pipeline will not only improve South Dakota’s economy and people, but will help bring our country one step closer to energy independence. The project will enable American crude oil producers to ship American crude oil to American consumers. It will reduce our reliance on oil from unstable foreign regimes and enhance our ability to assert control over our nation’s energy and economic future.

For these reasons and others, it’s no surprise that South Dakota media outlets like the Argus Leader have editorialized in support of the project.

South Dakota currently faces some choices regarding transporting energy. Crude by rail shipments can continue to rumble through South Dakota towns, crowding out the products of our state’s farmers or we can choose to build a state of the art pipeline specifically designed to conduct such a task in a safe and efficient manner. The path forward is clear, and by choosing to invest in our state’s energy infrastructure, we can build a safer and stronger South Dakota, create thousands of jobs and spark hundreds of millions in investment, and help move our nation one step closer to a secure energy future.  We urge the PUC to recognize the merits of this application and approve the project to move forward.

Temporary pipeline jobs can have lasting impact

Thank you for sharing the Dakota Access Project announcement regarding their selection of union contractors and utilization of Iowa-based manufacturers [“Contractors hired for Bakken project,” Sept. 23]. It makes comments such as those by Iowa State’s David Swenson regarding the nature of construction jobs and impact on Iowa’s economy all the more puzzling.

The company building the project has made a commitment to employ local labor members, like myself, and many other residents of Iowa. The paychecks earned building this pipeline will go back into our local economy. However, Swenson disparages these jobs as “temporary,” insinuating that the project should therefore be rejected.

I’m sure many readers have built barns, houses or other structures on their property and can attest to the fact that construction work should be completed as safely, quickly and efficiently as possible. Building one project doesn’t make a career. All construction projects are temporary. But, individuals can build a successful career, buy a home, provide for their family, and create an educational future for their children by being employed on such major construction projects.

The Dakota Access Pipeline is a project that can help our local craft workers build their futures, and should be approved.

Let Facts Guide the Decision of the PUC

As the date draws closer for South Dakota’s Public Utilities Commission hearing regarding the Dakota Access Pipeline, opposition activists have resorted to disseminating distorted facts to support their stance and agitate against this important investment project. Much of these opponents are driven by ideology, not facts or economics, and their ideas are as infeasible as they are ruinous to South Dakota’s economy. Stubborn as they are, facts paint a different picture.

Currently, South Dakota has a little over 6,500 miles of gas and petroleum pipelines buried underground, more than enough to stretch from New York to Los Angeles and back. These pipelines help power the state and regional economy, delivering energy to the consumers who need it. Land containing underground pipelines does not lose its value. Even more important, major pipelines such as the Dakota Access Pipeline choose routes that skirt large population centers and run under open land, which can be used afterwards for farming and grazing as it was done before.

Contrary to what some are saying, landowners are not abandoned after construction of the pipeline is done. It is the responsibility of companies such as Dakota Access LLC to make sure that suitable pipeline reclamation has been conducted while federal and state laws require that companies constructing pipelines be fully responsible for their operation and safety. Before the Dakota Access pipeline goes into service, it will be pressure tested and all welds will be applied by trained and certified craftsmen, as well as inspected by x-rays. In addition, all waterway crossings have automatic shutoff valves, as well as thicker pipe and extra pressure sensors to guard against any potential risks.

An additional distorted fact circulating is the idea that Bakken crude is somehow more volatile than other types of crude oil. This “fact” was discounted by Christopher Hart, the director of the National Transportation Safety Board (NTSB) as recently as last week.

It should go without saying, that transporting American-produced crude oil by pipeline is the safest, most efficient form of transportation. Pipeline expansion in the Dakota region has demonstrated a positive effect on crude oil shipments, which frees up room for agricultural products. According to a recent American Farm Bureau study, the farmers of the Upper Midwest lost $570 million during the 2014 harvest due to a combination of various circumstances. Reducing and removing crude oil from our region’s railroads will have great benefits for those in South Dakota’s agricultural sector.

Investments such as Dakota Access Pipeline can help cement the 21st century as one where our country becomes self-sufficient and a net energy exporter. Such an America will make for a better economy and a better future. It is important that facts, not conjectures and distortions guide the decision of the Public Utilities Commission.

Pipeline a boon for union workers

As a longtime union worker, I would like to state my support for the Dakota Access Pipeline. As many people may know, the company building this pipeline has committed to using local union halls to find the men and women to construct this important infrastructure project. Many of the folks that will working on this project will be friends and neighbors from right here in Newton.

Unions help ensure a safe workplace, good benefits, and equal opportunity. Projects built by union labor such as the Dakota Access Pipeline should be encouraged in our state. The paychecks earned by these men and women will be reinvested into the local business here, and the millions of dollars in tax revenue collected by the state during and after construction will help our economy grow, while helping Americans secure energy independence. I urge the IUB to review and approve this project.

Midwest Firms On Board for Dakota Access Construction

Dakota Access Pipeline, LLC, the company constructing the Dakota Access Pipeline announced in a press release that construction contracts have been awarded to two Midwestern firms, based in Brownsville and Eau Claire, Wisconsin. Both firms have committed to using 100% union labor and half of those positions will be filled using local union halls in the states along the project’s route.

Michels Pipeline and Precision, the construction companies tapped for the project also made further commitments to benefit workers along the route, pledging to use equipment made by Midwestern companies:

In anticipation for the project and 2016 demand, it has been estimated that Michels Pipeline and Precision have made commitments exceeding $200 million to Caterpillar, John Deere, and Vermeer for heavy construction and related equipment, with positive manufacturing impacts to Iowa, Illinois, and the surrounding region. Caterpillar, John Deere, and Vermeer have individually filed letters supporting the project with the respective state utility board or commissions.

The president of the Iowa-based Vermeer Corporation explained the significance of working on the Dakota Access Pipeline:

As an Iowa-based manufacturer of the equipment to be used in the Dakota Access Pipeline Project, Vermeer depends on such projects in order to give back to its team members and the communities where they live. (…) Together, we have opportunity to add and secure more jobs within our businesses, and support a progressive economy throughout the Midwest.

Tom Pellette, a group president of the Illinois-based Catepillar Inc. echoed the sentiment and emphasized the importance of the project for the region’s energy security:

Caterpillar is proud to support the Dakota Access Pipeline project. Energy sources must be developed and used in an environmentally sustainable manner and also delivered in a responsible way, and this pipeline is a prime example of that. From a Caterpillar perspective, we and our eight Cat® dealers in North Dakota, South Dakota, Iowa and Illinois – who will help support this project – employ nearly 25,000 people at about 80 locations. Access to affordable and dependable energy resources is critical for energy security and economic prosperity, and we look forward to helping our customers succeed in the completion of this project by delivering world-class construction equipment to these areas in which we live and work.

 By working with Midwestern businesses and labor, the Dakota Access Pipeline has shown its commitment to ensuring that the communities in our region reap the economic benefits from energy infrastructure expansion and guarantees that the money invested into the project will end up directly and indirectly in the pocketbooks of families from North Dakota to Illinois. That is certainly a cause for celebration.

Dakota Access makes official case to permit pipeline

Oil transport officials and their energy experts laid the groundwork for their belief of the broader public benefit of an oil pipeline that would cross the state in documents filed last week with the Iowa Utilities Board.

“Iowa has a high level of per capita energy consumption in general, ranking 5th highest in the United States on a total consumption basis and 7th highest in energy expenditures per capita. Iowa’s economy depends on several energy-intensive sectors,” Damon Rahbar-Daniel, vice president of commercial operations for Energy Transfer Partners, said in his direct testimony, filed online Sept. 8. “Agriculture, certainly, but Iowa also ranks among the top 10 states in terms of percent of state GDP from manufacturing, and Iowa ranks 6th highest nationally in total energy consumption per capita in its industrial sector.”

Energy Transfer Partners is an equity owner of Dakota Access, which has filed to build the oil transport pipeline from North Dakota’s Bakken oil field to Illinois. About 350 miles of pipeline would be in Iowa, including about 30 through Calhoun County.

Rahbar-Daniel’s testimony was just one item of several items Dakota Access filed with the utilities board, setting the stage for a hearing later this year. The board has said it does not intend to hear live direct testimony; rather, board members want to read the direct testimony, then allow intervening organizations to cross examine witnesses on that written testimony. Iowa, Rahbar-Daniel said, despite being a top consumer of oil, has no refineries or drilling operations.

My Voice: Dakota Access Pipeline safe, efficient

With yet another fiery oil train wreck, it’s time we come to grips with the reality of our energy and environmental needs.

America’s energy surge, which has transformed our economy and raised our nation to the status of oil and natural gas superpower, has taxed our infrastructure to the breaking point. Quite plainly, we’re producing so much oil from the Bakken fields that the accident in the small town of Heimdal, N.D., on May 6 of this year, has become almost predictable. It was the third derailment in the eastern part of North Dakota inside of three years, including the one near Casselton, N.D., that forced the evacuation of 1,400 people.

Here’s another cold splash of reality. Oil and natural gas are projected to remain, by far, the dominant sources of America’s energy mix for decades to come. The annual outlook published last month by the Energy Information Agency predicts that total U.S. energy needs will rise nearly 9 percent by 2040. The share for natural gas will rise from 27 percent to 29 percent over the same period, while petroleum products will decline from 36 percent to 33 percent. Renewables grab a bigger share of the mix, growing from 8 percent to 10 percent by 2040.

We have an urgent need to build more capacity in our pipeline network, and the proposed $3.7 billion Dakota Access Pipeline should be at the top of our to-do list. It will connect the Bakken and Three Forks production areas in North Dakota to a line that will run through South Dakota and Iowa to Patoka, Ill. DAPL will enable 100 percent domestically produced light sweet crude oil from North Dakota to reach major refining markets in a more direct, cost-effective, safer and environmentally responsible manner.

DAPL also represents a huge economic stimulus to the region, powered by private investment. According to figures released by project owner Energy Transfer Partners, the 1,100 mile pipeline will create 8,000 to 12,000 jobs during construction, and generate $605 million in labor payments to the various contractors working on the project. Millions of hours of labor will be needed during the construction phase, putting welders, mechanics, electricians, pipefitters, heavy equipment operators and others within the heavy construction industry to work.

The Dallas-based company said that S.D. landowners along the route will receive $47 million in direct payments to landowners for right-of-way easement payments. DAPL will also translate into millions in state and local revenues during the construction phase. It will generate an estimated $35 million in state use, gross receipts and lodging taxes and $2.9 million in local taxes. Construction will result in nearly $74 million in sales taxes to the states of N.D., S.D., Iowa and Illinois. All of this is new revenue and ongoing property taxes can be used to support schools, emergency services, road maintenance and other ongoing needs.

The safety record of pipelines, compared to tanker trains and other modes of shipping energy resources, is unmatched. The U.S. network of more than two million miles of pipeline is heavily regulated by the U.S. Department of Transportation for both safety and reliability. Pipelines have proven to be the safest, most efficient means of moving crude oil.

As the Washington Post recently reported (”It’s a lot riskier to move oil by train instead of pipeline,” Feb. 20), “It’s abundantly clear that the rate of accidents per billion barrels is significantly higher for rail, and it also fluctuates more year to year.”

If built as planned, the Dakota Access Pipeline would eliminate 4 to 7 unit trains per day, helping ease railcar transportation shortages for agriculture and other products in the region. The American Farm Bureau Federation released a study last month, authored by South Dakota Ag Economist Elaine Kub, that shows the need for pipeline infrastructure to alleviate rail congestion. The study shows how new pipelines would help farmers get their product to market while increasing efficiency.

If the U.S. is to continue on its path to energy security and economic growth, we need an expanded pipeline system – with every safety feature new pipelines are equipped with – without delay. It’s time to build the Dakota Access Pipeline for a safe and efficient infrastructure worthy of an energy superpower.

MY VOICE

Dawna Leitzke, Pierre, has served as the executive director of the South Dakota Petroleum and Propane Marketers Association for 20 years. My Voice columns should be 500 to 700 words. Submissions should include a portrait-type photograph of the author. Authors also should include their full name, age, occupation and relevant organizational memberships.