Watching Government: Dalrymple's different problems

Governors descended on Washington, DC, Feb. 23-25 eager to exchange ideas and share experiences at the National Governors Association's 2013 Winter Meeting. Most of them face the challenge of maintaining adequate state services amid continuing reduced tax revenue from a still anemic economic recovery,

North Dakota's Gov. Jack Dalrymple (R) is in a position other US governors might envy as crude oil production from the Bakken formation continues to climb. It's a good place to be, he conceded in his Jan. 8 State of the State address.

"We have seen amazing growth in crude oil production, increasing from 460,000 b/d when I spoke to you 2 years ago to 747,000 b/d currently," Dalrymple said.

"Two years ago, pipelines and rail capacity were major barriers to growth in oil and gas production," he continued. "Since 2010, we have more than doubled our pipeline and rail capacity from less than 500,000 b/d to more than 1 million b/d. Not only is that good for the industry, but it also gets trucks off our roads."

North Dakota's natural gas production also has more than doubled since 2010 as the state has encouraged producers to gather more gas and double processing capacity, Dalrymple said.

"By 2014, we expect to have the capacity to process 1.36 bcfd," he indicated. "We are also promoting the use of gas at the well site instead of diesel fuel, and today we are seeing a leveling off the percentage of gas that is being flared."

Growing challenges

Rapid economic growth brings many challenges that exceed what any state or city would normally encounter, Dalrymple continued. "Dealing with them effectively must be an integral part of our vision for the future of North Dakota," he declared.

The state already has moved 13 more state troopers to what he called "oil country" in the current biennium, but Dalrymple said it should do more to support local law enforcement. He recommended hiring 15 more North Dakota Highway Patrol troopers and increasing budgets for courts and for parole and probation programs.

"But the greatest assistance we can provide to counties and cities in western North Dakota is to let them keep a larger share of the oil revenue and help them financially as they increase the number of sheriff's deputies and offices in their communities," he said.

More oil field activity has increased demand for water supplies and wastewater treatment, according to Dalrymple. "The great news for our state is that it appears oil and gas tax revenue will make possible significant investments in water projects for years to come—investments that create jobs and improve our quality of life," he said.