Coalition Stresses Importance of Pipeline Project Following PSC Hearing

MANDAN – Members of the Midwest Alliance for Infrastructure Now (MAIN), a coalition of stakeholders from the business, labor, and agricultural communities, underscored the need for expanded energy infrastructure in North Dakota following a hearing convened by the Public Service Commission (PSC) in Mandan this week. In addition to offering comments to the PSC in person on Thursday, members of the group issued the following statements in support of the PSC’s careful consideration and approval of the Dakota Access Pipeline.

“This week’s Public Service Commission hearings in Mandan represent an important step forward in the state of North Dakota’s crucial ongoing effort to improve its pipeline infrastructure,” said Andy Peterson, President of the Greater North Dakota Chamber of Commerce. “Pipelines like Dakota Access provide a safe, reliable, and efficient way to transport the crude oil that has fueled our state’s economic surge from the ground to American consumers, spurring billions in private investment and relieving pressure on rail and truck transport in the process. We strongly support this project and urge the PSC to do the same.”

“The Dakota Access Pipeline represents an opportunity not just to create thousands of new jobs, but also to significantly improve the state’s ability to safely move its critical energy resources to market,” added Pam Link of the Laborers District of North Dakota and Minnesota. “Dakota Access will move around a half million barrels of North Dakota crude to market safely, and will represent a lasting improvement to the state’s critical energy infrastructure. We’re pleased that the state of North Dakota’s consideration of this vital project is moving forward.”

“New pipelines – especially those that service the Northern Plains and the Bakken region in particular – are urgently needed,” said Ed Wiederstein, former president of the Iowa Farm Bureau and MAIN chairman. “Dakota Access would take four to seven unit trains of crude oil off of the region’s rails, helping the region’s farmers and other commodities shippers to gain greater access to the affordable railcars needed to transport their products. Infrastructure improvements of this nature carry benefits that reach far beyond the energy sector, and deserve our support.”

MAIN’s statements come on the heels of an editorial published Wednesday in the Bismarck Tribune noting the importance of the project to the state of North Dakota’s economic outlook. For more information about the Midwest Alliance for Infrastructure Now, visit our website at www.MWAllianceNow.org, and follow the coalition on Twitter and Facebook.

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. Visit us online at www.MWAllianceNow.org.


Importance of Dakota Access Emphasized by The Bismarck Tribune

This Thursday, members of North Dakota’s Public Service Commission will hold the first of three hearings on the Dakota Access Pipeline, in Mandan. As the editorial board of The Bismarck Tribune noted, the DAPL project is of vital importance to the economy of North Dakota and our region.

North Dakota’s energy abundance has created challenges for getting these resources to consumers. Oil by rail and tanker trucks simply cannot be solely relied upon to provide transportation of volatile crude. The Midwest has had a glaring lack of a safe and reliable means of transporting energy resources. As the Tribune opined:

For years state and industry officials have lobbied for the need for more pipelines to carry oil out of the Bakken. The goal of the pipelines is to take pressure off railroads and trucks and provide a safer way to move oil.

 The Tribune has in the past and continues to support pipelines as a safe alternative for moving oil from the Bakken.

The $3.7 billion investment that is the Dakota Access Pipeline would provide exactly the capacity that many in the state have wanted. As the Tribune’s editorial board mentioned, the project would employ the latest safety technology and commit the company building the pipeline to use land reclamation experts and develop a land mitigation plan.

We encourage the timely review of this application and urge that the Public Service Commission proceed in approving this project.


Proposed pipeline important to state

For years state and industry officials have lobbied for the need for more pipelines to carry oil out of the Bakken . The goal of the pipelines is to take pressure off railroads and trucks and provide a safer way to move oil.

The Tribune has in the past and continues to support pipelines as a safe alternative for moving oil from the Bakken.

Now a proposed oil pipeline from North Dakota to Patoka, Ill., seeks to achieve those goals. Energy Transfer Partners of Houston wants to build a 1,134-mile pipeline, a project that would cost $3.7 billion. The North Dakota Public Service Commission will begin hearings on the project this month.

The company has gotten about 55 percent of easements it needs in the state, the rest may take some time. Landowners who own 40 tracts of land along the route have formed a group and hired attorneys to negotiate with the company. Among their concerns are land reclamation.

“We’re not against the line,” Matt Kelly, one of the lawyers representing the group, told the Forum News Service. “Our big thing is we want to write the best easement that’s ever been written in North Dakota to protect the landowner.”

“We want to work with each of the landowners as best we can to have the least impact on their land and on what they use the land for,” Chuck Frey, vice president of engineering for Energy Transfer Partners, said.

That sounds like they should be able to reach an agreement, but it could be more complicated than that. Frey said some of the landowners may have had bad experiences with other pipeline companies. And some landowners have told the PSC they have felt threatened or bullied to sign easements by company, according to documents.

An attorney for the North Dakota landowners said the company has been very aggressive at an early stage of the process. Landowner attorneys have filed 24 motions on behalf of their clients to intervene in the PSC hearing process. An administrative law judge will decide whether landowners can ask the company questions during the formal hearings.

The company stresses it plans to do everything the right way. It has hired consultants with experience in land reclamation to develop an agriculture mitigation plan and train the contractors and inspect construction. The pipeline would cross the Missouri River twice in the state and the pipeline route would impact existing and future oil development on at least three tracts of School Trust land. The North Dakota Department of Trust Lands has not signed off on the route.

Because the pipeline also will go through South Dakota, Iowa and Illinois it will be subject to state and federal regulations. The regulatory process isn’t completed in the other states.

Due to the massive size and cost of the project it needs close scrutiny by the PSC and other agencies involved. The company promises a sophisticated leak-detection system and other safeguards.

The Tribune hopes the judge allows landowners to question company officials. The hearings should be as open as possible. The hearings should provide the company, landowners and the public a clear idea of the pipeline’s impact and benefits.

The ability to move oil safely remains important to North Dakota and the nation. Now’s the time to cover all the bases. Pipelines will play a key role in transporting oil.

The scheduled hearings are: 8:30 a.m. Thursday at Baymont Inn, 2611 Old Red Trail, Mandan; 9 a.m. June 15 at High Plains Cultural Center, 194 Central Ave. S., Killdeer: 9 a.m. June 26 at Ernie French Center, 14120 Highway 2, Williston.


Pipeline project manager discusses progress

Discussion on the Dakota Access Pipeline has slowed down in recent months, but progress has definitely been made. Although no holes have been dug, paperwork has been filed and meetings have taken place to keep the project moving forward.

Dakota Access Pipeline senior project manager for Illinois, Adam Broad was in Carthage Friday along with former State Senator Laura Kent Donahue, to host an informal meeting with community members at city hall. Broad gave an update on Dakota Access, and its parent company, Energy Transfer, and addressed any questions or concerns from the group.

Broad discussed meetings with the Illinois Commerce Commission (ICC), with a hearing scheduled for Dakota Access in September of this year. Energy Transfer will meet with the ICC in late June or early July to discuss its crude oil pipeline that begins in Patoka, Ill., a place Broad referred to as a “break point” for the two main projects in Illinois.

One point of interest in regards to area farmers was the mitigation plan agreed to with the Department of Agriculture, which Broad hopes will be signed this week. He noted that not much is different from the original plan, but the differences are beneficial to landowners.

“There have not been any subtractions; there have been additions,” said Broad. “For the most part they’re favorable to the landowner.”

The main adjustment in the agreement favoring landowners is crop yield. Landowners are being paid for crop loss in the first three years, but now there is a mechanism in place for landowners to come back to the company if yields are not where they should be down the road.

With each landowner contacted and the route of the pipeline established, depth of the pipeline has been ironed out for easements.

“We’ve committed to having the pipeline a minimum of five foot deep in agricultural areas,” said Broad. “We also have to have two foot of separation with the drain tile. If the drain tile is four foot deep, that puts our pipe at six foot deep.

“There’s going to be some fluctuation across the entire project based on where those drain tiles are actually located.”

Hancock County Farm Bureau manager Kristin Huls attended the meeting and relayed some concerns to Broad, primarily with surveyors being out in the fields after planting and damaging some crops. She pointed out that permission for the surveys may have been given over the winter, before the crops were in and chances of damages were minimal.

“I would ask on behalf of the landowners if you wouldn’t mind taking another look at that or having another discussion about it,” Huls said. “It’s very early in the process. You don’t want there to be issues.”

Broad was very receptive to Huls’ concerns, and said he would address the issue. He also informed the group that Dakota Access is currently engaged with contractors and should have agreements nailed down within a month. Broad reported it would be valuable to county engineers to have information on all of the construction taking place.

The project is still on schedule for completion at the end of 2016. According to Broad, a conservative estimate is for crews to lay a half mile of pipeline per day. With hundreds of miles of oil transporting pipeline cutting through Illinois, Laura Kent Donahue addressed the involvement and benefits of the entire country.

“It’s all U.S. steel for the most part,” she said. “It’s all U.S. crude (oil). It doesn’t have anything to do with Canada. It has nothing to do with Keystone. It’s a different kind of oil.”

Added Broad, “It’s all going to go to U.S. markets.”

Energy Transfer owns and operates 71,000 miles of natural gas and crude oil pipelines. With the newest miles scheduled for Hancock County, Huls asked about the impact on the community, and Broad discussed the local market.

“Once we have a contractor on board, their crews can be anywhere from 600-800 people,” he said. “As they come through each county they’re going to need places to stay, eat, get gasoline, and everything else. They may need office space. They may need additional warehousing capabilities.”

Broad mentioned his goal was to get in touch with community development leaders to designate options for the hired contractors and crews. Carthage Community Developer Amy Graham was in attendance, and offered several places to begin the process.

During the discussion Huls highlighted that with more information available to landowners, there was also less resistance to the pipeline. Fair compensation, a safer way to transport oil, and the opening up of railways and highways for agricultural products had helped with the process of moving forward. Broad added there are many things that go into the process, and sometimes he takes certain concerns for granted because he encounters them daily.

One major concern brought up in the meeting was the crossing of the Mississippi River. While a lot of attention has been given to landowners and field tile, a huge obstacle remains how the pipeline will move from Iowa to Illinois, and how it will affect county residents.

Broad has already been in meetings with the Corps of Engineers and Fish and Wildlife. Major river crossings are a common occurrence with pipeline projects, and the company is very selective of its contractors for river projects.

Broad discussed that contractors will drill a hole from one side of the river to the other, and the pipeline would be buried 100 feet below the bottom of the river. There is a large elevation change with the Illinois side being on a bluff. The length from one side to the other is about 7,500 feet, with that distance in pipe being strung out at the same time.

Once the pipe is strung out, it will be welded, coated, and pretested. The technology and equipment used for the job is precise enough to knock a stake out of the ground from across the river.

“Once that’s all been done, we’ll pull that whole section of pipe in all at the same time,” said Broad.

When the time comes there will be a major hole to dig, but until then Dakota Access and residents of Hancock County have plenty of papers to sign and meetings to attend.


Labor, Business Join to Launch Coalition Backing New Energy Infrastructure

Advocates of expanded infrastructure projects announced today the launch of the Midwest Alliance for Infrastructure Now (MAIN), a coalition of stakeholders from labor, business, and agriculture communities. The coalition will support the economic development and energy security benefits associated with infrastructure projects in the Midwest. MAIN members will be present at the upcoming North Dakota Public Service Commission (PSC) hearing in Mandan in support of the Dakota Access Pipeline.

“Projects such as the Dakota Access Pipeline present a significant economic opportunity both for our state and region as a whole,” said Pam Link of the Laborers District of North Dakota and Minnesota. “The responsible construction of new infrastructure means the creation of thousands of new jobs, new tax revenue for our community, and billions of dollars in private capital investment. MAIN will help keep the diverse benefits of the project at the center of the debate.”

The expansion of infrastructure will provide further economic opportunities for the state. “Supporting efforts to increase infrastructure helps fuel our state’s economy,” said Andy Peterson of the North Dakota State Chamber of Commerce. “North Dakota has seen a tremendous amount of investment in infrastructure in recent years, and construction of the Dakota Access Pipeline is a major part of this growing investment and keeping our state’s economy on a path toward continued prosperity.”

“With the domestic energy sector growing steadily, the methods by which energy resources are safely transported from field to market have never been more important to our nation’s economic well-being, or to our pursuit of energy independence,” continued Ed Wiederstein, former president of the Iowa Farm Bureau and MAIN coalition chairman. “Modern infrastructure is bringing us closer to energy independence and benefitting farmers and other commodity shippers across the region by keeping prices low and reducing the congestion and backlog currently present within the region’s rail network.”

Other members of MAIN include the North Dakota State Chamber of Commerce, North Dakota Association of Oil and Gas Producing Counties, and more. In the weeks ahead, MAIN will announce the addition of new members throughout the Midwest. The Alliance’s website, www.MWAllianceNow.org, will be updated regularly with new information, blog posts, and other materials relevant to the ongoing debate surrounding infrastructure projects in the Midwest.

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. Visit us online at www.MWAllianceNow.org.


No mode of moving energy is perfect

Recent fluctuations in oil prices have led to a variety of differing predictions about the future of domestic energy production. Despite those variances, however, development in the Bakken does not appear to be grinding to a halt anytime soon. While the level of activity may change, it seems that our current energy revolution is here to stay.

While this means job growth and investment will most likely continue, certain challenges will remain. In light of recent events in North Dakota, it is clear that the most pressing of those challenges continues to be finding a safe option of transporting natural resources to refineries and distribution networks.

The numbers compiled by the U.S. Energy Information Administration certainly prove that supporting new pipelines is right. Nearly 60 percent of crude oil produced in our region is transported by rail. These trains are more than a mile long and contain more than a million gallons of crude oil each. Around 30 of these trains rumble across Iowa each week. Diversifying our energy transportation options would help reduce this number and make trains available to transport other valuable commodities, including the agricultural products that feed our country.

While no mode of moving energy from point A to B is perfect, pipelines have proven to be effective and safe. Pipeline projects in our region, such as the Dakota Access Pipeline, are certainly a significant part of the solution to this critical issue.


Pipelines Key to Our National Infrastructure

This week, nearly 80 different businesses, labor organizations, and advocacy groups are coming together across the country “to highlight the critical importance of investing in and modernizing America’s infrastructure systems,” during the 3rd annual Infrastructure Week. Much like roads, bridges, and ports, energy transportation is an essential part of our national infrastructure. As a leading oil and gas producer, our country needs a safe, reliable, and efficient method of transporting our energy resources.

Our nation’s current pipeline infrastructure is robust and efficient, with over 150,000 miles of pipeline transporting over 70 percent of America’s petroleum and crude oil.  But, as domestic production continues to increase, we must expand upon this vast network by upgrading existing pipelines and engaging in new projects like the Dakota Access Pipeline.

In our region, we’ve seen energy production increase, but infrastructure development has lagged behind. This week is a good reminder that we need national infrastructure to develop and embrace proven pipeline technologies in order to deliver clean, affordable, and domestic energy to businesses and households across the country.


Eminent Domain bill rebuked by The Des Moines Register

A bill designed to stifle large scale infrastructure projects in Iowa is currently being reviewed by lawmakers in the state House and Senate. Unsurprisingly, the editorial staff at The Des Moines Register has voiced its dissent in last week’s  “Roses and Thistles” section. The staff opined:

 “Bills backed by key Republicans and Democrats in both houses would require companies to have voluntary easements from 75 percent of property owners before receiving eminent domain authority from the state. Pipeline and power line companies say setting the bar so high could force them to risk costly investments in projects that may never happen. That would be fine with some proponents of these bills, however, because their aim is to block both projects. In the process, however, they could prevent all future pipelines and powerlines, even ones that environmentalists might support. Until scientists figure out a way to magically deliver power without wires or underground pipes, they will be necessary.”

Hampering new energy infrastructure projects will not make our region safer and will not draw the investment and jobs that our economy needs in order to grow.  As the editorial staff pointed out, power lines and pipelines may not be perfect, but they are necessary. In light of last week’s events in Heimdal, ND show, diversifying how we get energy to consumers is absolutely critical. As The Des Moines Register piece pointed out, this bill does not bring any constructive ideas to that issue.


Let’s Encourage Diversity in Energy Transportation

Heimdal, a tiny community in North Dakota, was severely affected by an oil train derailment last week, which caused six oil transport cars to catch fire and prompted the evacuation of the town. While no one was hurt, the accident raises the question; how can we safely transport energy throughout the Midwest?

Though our national freight rail system invests billions of dollars each year in rail infrastructure and railcar upgrades, incidents like the Heimdal derailment continue to occur. This negatively affects the schedule and safety of our rail network, and the communities that rely on freight lines for transportation of their products. Given these strains, we must look for more long term solutions to the current midstream bottleneck.

Lawmakers in our region have reached the same conclusion. North Dakota Gov. Jack Dalrymple was quoted recently in saying that “pipelines offer the safest mode of crude oil transportation so we must also develop greater pipeline capacity.”

The statistics certainly prove him right. Energy projects such as the Dakota Access Pipeline will ensure that domestically produced oil will move to market via the most technologically advanced and safest means possible. The pipeline will also create thousands of local jobs, and generate significant amounts of tax revenue. Pipeline construction means fewer railcars dedicated to oil transport, and will free up space on the rails for our region’s crops.

While no mode of energy transportation will ever be perfect, diversifying transportation options for energy resources is the right thing to do. State executives and legislators in our region should take a look at the benefits of pipelines and support Governor Dalrymple’s leadership on pipeline construction.


Letter: Improve U.S. energy independence by allowing pipeline

As a retired B-1 bomber crew chief of 23 years, stationed at Ellsworth Air Force Base in Rapid City, I am writing this letter in support of the proposed Dakota Access Pipeline. This project would strengthen national security, provide a safer option for transporting oil and produce tax revenue for schools, counties and state government.

I of all people know how important it is for our country not to have to rely on foreign oil. During my tenure, I was deployed overseas three times to fight for our great nation. I have seen firsthand why it is important to use our own domestic oil that is available right here. The proposed pipeline would carry domestic oil from North Dakota to Illinois. This will help make the United States more energy independent, which helps improve our national security.

It has been proven time and again that transporting oil by pipe is far safer than rail or truck. Let’s free up our rails and interstates for transportation of other goods and services that our country cannot get through a pipe.

The proposed pipeline would route through several South Dakota counties and school districts. This path would bring tax benefits to those local governments, school districts and the state.