Nation's Second Largest Oil Producer Has First Rate Problems - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Nation's Second Largest Oil Producer Has First Rate Problems

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The second largest oil-producing state in the country deals with first rate problems that come with the territory.

As North Dakota continues to set month over month oil production records, how is the State faring on producing infrastructure solutions in those regions?  

A new study finds that when compared with other oil-producing states, North Dakota falls drastically short in revenue -- both for oil extraction and gross production taxes.  The North Dakota Association of Oil and Gas Producing Counties says this creates under-funding on the local side.

"Because they are dealing with the brunt of the activity right now in western North Dakota, we don't feel that the citizens in western North Dakota should have to pay a penalty for providing such an opportunity for the rest of the state.  We just ask that they're compensated fairly," says Brady Pelton, Deputy Executive Director, ND Association of Oil and Gas Producing Counties.

The Association notes one-third of the revenue goes to the Legacy Fund, which cannot be touched by legislators until 2017.  However, they say in some states, local entities are accessing that money for infrastructure projects.  "Potentially, the Legacy Fund could be a source of revenue for that, either through low interest loans out of that pool of money or direct funding," says Pelton.

The North Dakota Association of Oil and Gas Producing Counties emphasizes out-migration of young people is no longer an issue in the State -- so more funds should be earmarked to improve quality of life.  

 

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