Many rural US communities facing economic pressures and high unemployment would welcome oil and gas resource development although it can challenge local governments, Daryl Dukard, commissioner of Dunn County, ND, said Dec. 7.
The county in southwestern North Dakota covers 2,080 sq miles and has about 3,800 residents. Its biggest town, Killdeer, is home to 750. Dunn Center, where Dukard lives, has around 100 residents, he told a seminar on tight oil at the Center for Strategic and International Studies.
About 34 rigs currently drill in the county, he said, adding 80-120 workers support each rig. Most workers come from outside Dunn County.
His observations were similar to those of western rural government officials 35 years ago when they confronted surging demand for services from newcomers who moved in to construct 1,500-Mw mine-mouth, coal-fired power plants.
"We have lots of places to work, but not many places to live," Dukard said. "People have been living in cars, trucks, and tents. They haven't been comfortable recently because temperatures are dropping."
The number of full-time county government employees grew to 80 in 2011 from 50 in 2007. Dunn County's budget grew to $35.7 million from $4 million during the same period. Homes that sold for $50,000 in 2006 now go for $175,000. Traffic violations jumped to 2,576 in 2010 from 765 in 2006, while criminal court cases rose to 377 from 213.
Unpleasant surprises
Dukard said some problems have surprised him. "We are running out of road surface aggregate because the oil producers are paying more for it," he explained.
"Most roads in the county are designed for 45-mph traffic. Many can't sustain 35 mph. We're seeing more oil rig and heavy truck accidents. We don't have the equipment and personnel to handle them."
Dukard said development of the Bakken oil formation has brought positive results, including new jobs, higher salaries overall, additional money and new businesses, and increased sales of trucks, cars, and farming equipment.
But it also has brought problems, including lacks of funds to meet demands, long lines at local businesses, greater-than-expected stress on all county departments, local businesses finding it hard to keep employees when oil producers offer significantly higher salaries, and an estimated 2,200 workers who drive into work from outside the county daily.
North Dakota set up an oil impact trust fund that has taken in $100 million and provides grants to communities facing Bakken development impacts, Dukard said. "We also have good relationships with the oil companies," he noted. "They are doing in-kind work on some of our roads and supplying some financial assistance."
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