Proposed ‘surge’ funding means more business for Bakken

BY MARNIE LAHTINEN

Ag ro u p o f Re p u b l i c a n s e n a to r s f ro m we s ter n Nor t h D a ko t a re cen t ly proposed an $800 million funding “ surge ” to help allev iate the infrastructure demands for oil and gas producing counties

Surge supporters are eager to get the funding approved before the 2015 construction season is underway The $800 million will come from the Strategic Investment and Improvement Fund, according to the legislators, and would be passed early in the legislative session to give communities time to plan

The funding breaks out as follows: $475 million to oil-producing counties and cities; $140 million to the three hub cities (Williston, Dickinson and Minot); $35 million to schools in oil-producing counties; $150 million to statewide counties and cities for roads (excluding oil-producing counties)

Area business owners are assessing how the proposed legislation would affect their way of doing business in the Bakken

Brett and Trisha Erdmann, ow ners of New

Leaf Development, have real estate developments and hotels in Williston, Watford City, New Tow n and Belfield

The Erdmanns believe the surge could provide resources for these communities to invest in longterm planning, which would ultimately create a need for further business opportunities

“These folks need help with infrastructure planning, and they could use this money to hire the big horses to come in and help them,” says Brett Erdmann “To get good employees, you have to be able to offer them a place to live that they can afford ”

And while Erdmann believes that the housing shortage is improving, he feels the surge money would spur more development and make affordable rents and leases easier to come by.

“A lack of basic amenities also limits the ability to recruit quality staff to live in oil-producing communities,” he says “People are eating breakfast, lunch and dinner at the C-store. There is a lack of good, wholesome meals It’s not sustainable This money will spur more development ”

Earlier this year, U.S. Census Bureau estimates showed that North Dakota’s population reached an all-time high of 723,393 residents, an increase of 22,048 from the previous year ’ s estimate Two North Dakota counties ranked among the nation’s fastest-growing counties with a population of 10,000 or more. Williams County was ranked as the fastest-growing county in the nation; Stark County ranked fourth Both lie in the heart of the Bakken

“City and county employees, along with emergency service volunteers, are stretched thin,” says James Ruud, partner in Bismarck-based construction company Edling Electric “The $800 million is well-deserved and needed out there. These communities need this additional funding to help identify safety issues and immediate stressed services whether it is hiring fulltime EMT positions or updating infrastructure, this funding will help ”

Ruud, whose company does construction projects across the Bakken, points out that while the surge money has obvious economic benefits for businesses, it also “benefits individuals in the Bakken if it creates a safer and better place to live and work ”

North Dakota’s growth challenges were highlighted in a recent study conducted by engineering and planning solutions firm KLJ. In a presentation at the recent Energy Development and Transmission Committee conference at the state capitol, KLJ outlined five-year projections for oil production, citing significant socio-economic pressures related to the sustainability of oil and gas production for the state, as demands for public infrastructure and public services increase

The study states, “If these demands go unmet, according to the report, it could ultimately influence oil output in this region. Employment in the petroleum sector will shift from temporary oilfield development workforce to long-term permanent employment, placing demands on housing supply”

KLJ anticipates that “each county in the study area has the potential to increase in population, with some counties exceeding a 30 percent increase. The national average for manageable growth is 1 5 percent annually”

Area business leaders agree that infrastructure development is vital for the future.

“Infrastructure has to continue to be built at a pace that keeps up with the growth in order for development to continue,” says Steve Hammers, president of Colorado-based Hammers Construction. “There are big costs to this that need to be shared across industries.”

Hammers suggests that surge funds can be put to use developing a Regional Development Board

“This salaried board could help these towns plan for growth, and help community leaders gain knowledge to make good decisions,” Hammers says “Experienced developers, construction managers, bankers and city planners could sit on this board, and equip locals with the knowledge to plan for future development.

“I’ve been all over the Bakken, in these small towns,” he says “They are feeling the pinch, but don’t have the resources to keep up with the growth ” Legislators hope to have the funding bill signed by Gov. Jack Dalrymple at the end of January PB

Marnie Lahtinen Contributing writer MarnieLahtinen@gmail.com

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