Oil Impact Bill Passes House - KXNet - Bismarck/Minot/Williston/Dickinson

Oil Impact Bill Passes House

Cities and counties hit by the oil boom stand to gain three-quarters of a billion dollars under a bill passed in the House today.

The money is distributed to counties, cities, schools, and emergency departments such as fire and EMS.

The bill spreads the money out across oil country but also includes money for road improvements in areas not surrounded by oil development.

Donnell Preskey has the story.

Before the 2013 legislative session began, a majority of lawmakers made a trip to western North Dakota to see for themselves how oil activity has affected the area.

Today they act...

(Rep. Carlson) "And because of those impacts it's an obligation for us to take care of those areas."

The bill has a big price tag of $742 million.

An amount lawmakers say will have a tremendous impact.

(Rep. Kenton Onstad / (D) Parshall) "Proud we are going to take up this additional spending for western North Dakota. For years they have sat and demanded those dollars."

(Rep. Bob Skarphol / (R) Tioga) "One county says they will need 60 million for next ten years to rebuild roads destroyed by oil activity and to build roads for what's needed in the future."

The bill allows counties to keep a greater share of the revenue generated by oil production. It changes the formula used to deliver the money and expands how the dollars can be used.

A major change gives the three "hub cities" of Williston, Dickinson and Minot a large share of the money based on oil related jobs.

(Donnell Preskey) "Yet, some legislators would like more money going to the smaller more rural areas impacted by oil development."

(Rep. Dan Ruby / (R) Minot) "Can't support this formula, it's not sufficient for impacts in Ward county."

(Rep. Kenton Onstad / (D) Parshall) "I would like to see impact grants increased more, help those on outside like Hettinger, Ward and McLean counties."

Cities in oil country have requested 660 million dollars in oil impact funds over the past two years - well over the 130 million dollars appropriated by the 2011 legislature. That's why the funding being considered this legislative session is so much higher than two years ago.

(Rep. Carlson) "So we've done what said we would do when we walked into these chambers, we'd address the impact that oil development has caused."

The Senate defeated Governor Dalrymple's plan for oil impact funds this week.

A similar idea proposed by Democrat Kenton Onstad was also defeated today in the House.

The bill now moves to the Senate.