Minot Daily News SATURDAY, APRIL 25, 2020
Energy
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Wind energy produces more than 3,600 megawatts of electricity in North Dakota. North Dakota has 1,968 turbines, with additional projects under construction or permitted for future construction, according to the N.D. Public Service Commission.
ND wind energy continues growth By JILL SCHRAMM
Senior Staff Writer jschramm@minotdailynews.com Wind energy development hit a few bumps in North Dakota over the past year, but projects remain on the horizon or are moving forward. Three projects went into service in 2019, all in December. Those projects were in Dickey, Mercer, Morton, Emmons and Logan counties. Various projects remain in different stages of development in the Minot region.
Northern Divide Wind
NextEra Energy Resources, through its subsidiary, Burke Wind, proposed a 200megawatt wind farm and transmission line in Burke County. However, the North Dakota Public Service Commission rejected the wind farm last June after hearing concerns from the U.S. Fish & Wildlife Service about
dangers to migratory birds. NextEra now has a new project application for a 200-megawatt project with about 75 turbines, called Northern Divide Wind. “We worked pretty diligently with key stakeholders to design a new site and modify turbine layout for the wind project,” said NextEra spokesperson Conlan Kennedy. “The application represents our determination to build a project that the state can be proud of and that also Burke County can also be proud of. It’s a project that’s going to create homegrown, renewable energy, good jobs and millions of dollars in additional revenue for the local community there.” The project remains in Burke County but the layout has been modified. The location is in the northwest corner of the county, in the Columbus area, covering 10,912 acres. Kennedy said the company worked with stakeholders to address the issues affecting the first application. The Public Service Commission was to hold a public hearing in Bowbells on April 17. If the application is ap-
proved, construction could start this year, he said. Construction is expected to take six months, with the possibility of finishing yet this year. Approximately 200 to 300 construction jobs will be created. “We like to use local vendors. And on top of that, it also helps bring millions of dollars into the community,” Kennedy said. “It supports local businesses.” During the 30-year life expectancy of the proposed wind farm, it can be expected to generate about $30 million in property taxes, according to NextEra. Local school districts would receive more than $14 million over the life of the project. Burke County government would see collections increase by more than $10 million, and fire and ambulance districts would receive nearly $1.5 million in new funds. It would generate about $30 million in payments to participating landowners over the first 30 years. Kennedy noted the project provides diversification for local farmers. Guaranteed
Wind projects seek to clear hurdles payments from wind turbines can offset unpredictable harvests and commodity prices, he said. “It’s a way to save the farm and maybe be able to pass it on to the next generation,” said Lynn Watterud, a Columbus landowner. He also noted the local support for the project because of the tax benefits to township government and the local fire department. The Burke County Commission gave the project approval based on its planning and zoning rules. However, commissioners also acknowledge the economic benefits. “We feel like it will be a good opportunity for landowners in Burke County,” County Commission Chairman Jarret Van Berkom said. “It’s nice for those landowners to have another option to potentially have income off of their land.” NextEra has had 14 wind projects in operation in North Dakota, having invested $2.7 billion within the state since 2003. See WIND — Page 2
Real-time imagery of roads Drone project will assess McKenzie County gravel roads after rain By ELOISE OGDEN
mation ISight will provide to assist us in making road deRegional Editor eogden@minotdailynews.com cisions,” said Commission Chairman Tom McCabe. WATFORD CITY – A “Just one day of road closures project using drones to assess has economic impacts for the gravel roads following rain county. We’re looking forevents will begin in McKen- ward to working with ISight on this pilot project.” zie County this spring. In January, the McKenzie County Commission voted About ISight RPV unanimously to award ISight Headquartered in Grand RPV Services of Grand Forks Forks, ISight RPV Services funding to provide the drone provides remotely piloted veassessments that will give hicle (RPV) operations to commissioners real-time im- agricultural, critical infraagery of road conditions to structure, wildlife managesupport open/closure deci- ment, insurance, and sions on gravel roads. emergency services clients. “In western North Dakota Data is collected with the unclosing of gravel roads can manned aircraft. have major economic imKenville, has over 25 pacts not only for the county years in aviation-related exbut for the oil companies that perience, including 15 years work there,” said ISight CEO at the University of North Tommy Kenville in a news Dakota Aerospace Foundarelease. “Our project will col- tion and founding of the Unlect the data commissioners manned Applications need to make informed deci- Institute, the first institute for sions on road closures. We’re research, testing and consultthankful to the commission ing in the emerging unfor trusting ISight with such manned aerial vehicle an important project and industry in North Dakota, we’re excited to assist in founded in 2010, prior to keeping the economic pulse merging with ISight in 2016. of the county running when Pilots and operators who rain threatens to shut every- will be utilized in accomthing down.” plishing the work in McKen“McKenzie County is zie County have a wide range looking forward to the infor- of experience in unmanned
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From the left are Ryan Moriearty, ISight assistant chief pilot; Shane Roberts, co-developer, hybrid drone; and Adam Overvold, Isight chief pilot who was named this month the site manager for the Watford City office. They are part of the ISight RPV Services team involved in a project to use drones to assess gravel roads following rain events in McKenzie County. aerial systems and commercial aviation. The two-phase project in Watford City is to begin this spring with initial flights recording baseline data. When rain events occur this summer, ISight will conduct flights within visual line of sight to collect images of road conditions so commissioners can make decisions on road open/closures. Phase
menting it, the county can have a long-term history of the roads in question and to determine what, if any, remediation and repair has to be done following use,” said Kenville in his proposal to the McKenzie County Commission. “This will allow the Expected results county to have long-term “By capturing informa- data and information on tion in real time and docu- most gravel roads within the county to support efforts by
one will conclude in about November. Phase two will continue to collect data after rain events in the spring and summer of 2021, with plans to use beyond visual line of sight (BVLOS) infrastructure, if available.
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McKenzie to change the formula by which Gross Production Taxes (GPT) are shared between the state of North Dakota and the counties in which the oil wells are located. This would allow McKenzie County the opportunity to improve the roads that they need.” Total cost of the project for See DRONES — Page 3
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Minot Daily News • PROGRESS: Energy
Wind
Saturday, April 25, 2020
Continued from Page 1
Tradewind Energy
Also in northwestern North Dakota, Tradewind Energy has a 300-megawatt wind farm, the Aurora Wind Project, under construction about five miles northwest of Tioga. Located mostly in Williams and Mountrail counties, the wind farm consists of about 44,000 acres involving about 125 owners and up to 121 turbines. Completion is anticipated in late 2020.
Ruso Wind
The Public Service Commission declined on March 4 to approve a permit for Southern Power to site a 205-megawatt wind farm near Ruso. State law requires light-mitigating technology to avoid red blinking lights all night. The radarbased technology, which triggers the lights when an aircraft is in the vicinity, met objection from Minot Air Force Base for security reasons. The base flies helicopters to missile sites in the area. The wind farm, located in southeastern Ward County, was to have up to 47 turbines, although four turbines and one alternate were identified for elimination to satisfy concerns of the air base. Ruso Wind is evaluating its options in light of the PSC decision. Commissioners indicated they are open to a modified permit should different light-mitigating technology become approved by the Federal Aviation Administration. In the meantime, Ruso Wind still needs to obtain agreements necessary to bring its wind power onto the grid.
PrairieWinds
Basin Electric Cooperative faces a similar dilemma as Southern Power regarding aircraft detection lighting systems (ADLS). Basin Electric is working with federal agencies on the approval of an ADLS system
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A wind turbine operates south of Minot. Basin Electric Cooperative is working with federal agencies on the approval of a light mitigation system for its PrairieWinds ND 1. State law requires existing wind farms to have the technology by the end of 2021. for PrairieWinds ND 1, south of Minot. State law requires existing wind farms to have the technology in place at the end of 2021. The Air Force has informed Basin Electric that an ADLS system is not compatible with its facilities. The Air Force is preparing an official notice on its position, according to Basin Electric. In order to add an ADLS system, Basin Electric is required to get a permit change from the FAA, which consults with the Air Force and other agencies before issuing any permit change. Basin Electric stated last month that it currently does not appear that its permit change will be granted. Basin Electric’s Minot Wind 2 produces less than five megawatts of electricity
so is exempt under the state power out of the state is at or law requiring ADLS on near capacity, and the conlarger wind farms. struction of additional infrastructure is expensive and time consuming, he said. Rolette Power There are two electrical Development systems, Midcontinent IndeA proposed wind farm at pendent Systems Operator Rolette still is somewhat in and Western Area Power Adlimbo. It has been in plan- ministration, that carry ning since July 2011. power from the region and Lyle Best, Watford City, with which the Rolette projpresident of Rolette Power ect could seek to interconDevelopment, said the loss of nect. Both require extensive federal tax credits is not as engineering studies that critical an issue with the proj- would cost upwards of ect as it once was because of $200,000, Best said. the efficiency of wind towers “We have already spent today. tens of thousands doing preHowever, the project still liminary studies. We basifaces a hurdle in bringing cally don’t have that kind of power from a wind farm onto capital to work with at this the electrical grid, he said. point,” he said. “You put out North Dakota produces more a large amount of money and power than it uses, but the don’t know whether you will transmission system carrying get approval.”
The great indoors. We didn’t check the forecast for cold weather. Or bring out the coloring books and crayons. But we did provide the heat so this family could enjoy the day together. When the energy you invest in life meets the energy we fuel it with, indoor fun happens.
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In addition, the capacity of engineering firms to do the work isn’t sufficient currently because they have so many projects striving to get ahead of the tax credit expiration on their plates, he said. Best said the project’s best options are for a large company with financial resources to invest or for a power supplier to purchase the proposed wind farm’s output. He said two power suppliers have shown some interest, and talks are ongoing that could result in decisions being made by this summer. The project has approvals for up to 100.4 megawatts, or between 43 and 59 turbines. It still would need site approval for turbine placement if plans move forward. Rolette Power Development is proposing a project
covering more than 14,000 acres in Rolette County. The center of the footprint is about five miles south and three miles west of the city of Rolette. It is north of, but not contiguous with, the Iberdrola wind farm, north of Rugby. The project development company is a joint venture between M-Power of Finley and Border Power. Each of the two owners is comprised of participating landowners within the respective footprints, local investors and their respective community economic development investors. The 45 landowners who had the authority and signed wind development easements for the Rolette Power Project footprint are shareholders in Border Power.
Saturday, April 25, 2020
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Minot Daily News • PROGRESS: Energy
North Dakota oil production data 2019
January February March April May June July August September October November December
Oil* 1,403,808 1,335,591 1,391,760 1,392,485 1,394,648 1,442,459 1,445,934 1,480,475 1,443,980 1,517,936 1,519,037 1,476,777
Producing Wells 15,409 15,154 15,315 15,503 15,703 15,752 15,954 5,964 16,115 16,169 16,110 16,042
Rig Count 66 64 66 63 65 63 57 62 61 59 55 55
January February March April
Oil* 1,430,511 1,451,029 (Not available) (Not available)
Producing Wells 16,014 16,118 (preliminary) (Not available) 52 (Not available) 34
Rig Count 55 54
2020
*Barrels per day
Fort Berthold Reservation 2019
January February March April May June July August September October November December
Oil* 289,804 292,914 302,835 302,773 315,155 332,993 331,385 335,475 344,564 368,834 372,429 369,099
Active Wells 2,065 2,077 2,089 2,098 2,157 2,178 2,212 2,242 2,280 2,316 2,341 2,369
Rig Count 13 12 15 14 14 15 14 15 16 17 14 11
January February
Oil* 358,903 364,642
Active Wells 2,394 2,418
Rig Count 13 10
2020
*Barrels per day
– Oil production numbers normally area about two months behind.
Drones
Eloise Ogden/MDN
North Dakota’s oil production has remained well above the 1 million barrels of oil a day mark.
Continued from Page 1
the county is projected to be $100,000 for two years of data collection, according to Kenville’s proposal. ISight’s share of the project is $225,000. ISight will be the lead on the project. Other partners include Sentera (phase 1 drone), Hybrid Project (gaspowered drone for BVLOS flights), KSI for real time video integration, Upper Great Plains Transportation Institute for civil engineering and data storage, Western Dakota Energy Association who will ultimately store and analyze data, LoadPass who will integrate data into their automated permit and routing program and the Northern Plains UAS Test Site for BVLOS and GBSAA activities, according to Kenville. GBSAA stands for groundbased sense and avoid.
Techniques to be used
Using both fixed wing and vertical take-off and landing (VTOL) remotely piloted aircraft, ISight will conduct drone flights (all within visual line of sight year one), with accompanying real time video and stills, and push these out in real time to interested parties at the county and industry. ISight will acquire specific aircraft and
Submitted Photo
Shown in this photo is the hybrid drone that will be used in McKenzie County once the beyond visual line of sight (BVLOS) infrastructure is in place, expected to be in spring/summer 2021. video distribution hardware to accomplish this. Ideally, ISight would utilize daisy chain procedures to accomplish more coverage while conducting operations in year one, according to the proposal. (A daisy chain is a wiring strategy where mul-
tiple devices are wired together in sequence.) The proposal also noted that Phase 2 will conduct all flights using beyond visual line of sight, decreasing time to fly roads while increasing data acquisition.
Environmental & economic impacts
When McKenzie County is forced to close gravel roads in order to minimize impact from damage by oil-field traffic, the impact is felt by oil companies and trucking
Drone project timetable
companies (and related service industries) that service the 2,000-plus wells in the counties. It is estimated that 1,000 trucks are idled in impacted counties due to weather-related road closures. The cost estimate is roughly $50 million a day (basinwide), the proposal
said. ISight RPV Services’ purchase of an American-made, gas-powered drone that can stay airborne for five to six hours positions them perfectly to take advantage of the much-anticipated statewide BVLOS network. In McKenzie County, ISight will open an office staffed with at least four pilots. Renting space for the office in Watford City is scheduled for April and the project will start with the pilots going to work in May. There will be a rotation of pilots with a site manager. Adam Overvold, ISight chief pilot was named this month the site manager for the new office in Watford City. Overvold has been with the company from the beginning, more than six years. ISight RPV also is expanding its business services and locations in eastern North Dakota. In February, Kenville announced ISight RPV Services acquired Flight Pros, a Fargobased drone company specializing in aerial site mapping, 3D modeling and high-definition aerial photography and videography. The acquisition of Flight Pros and with Joey Schmit, Flight Pros founder, added to the team, ISight expanded its line-up of business services. “We look forward to working in and bringing tech jobs to western North Dakota,” said Kenville.
May 2020 – Start database of roads; interact with county officials, oil companies and service providers to develop image library of prime roads and priority road. June 2020 – Begin collecting data via drone for baseline data set. Anticipate completion of baseline data set by end of July. Build data into HIVE data base. July 2020 – Finalize data set of baseline, supplement with data from LoadPass, Upper Great Plains Transportation Institute (UGPTI) and county officials. Cross reference all data with Western Dakota Energy Association (WDEA) weather station data. Ongoing flights of roads as required due to weather. August 2020-October 2020 – Ongoing maintenance of data base. Ongoing flights of roads as required due to weather. November 2020 – Ongoing maintenance of data base. Ongoing flights of roads as required due to weather. Start finalizing year one data base and wrap up with county officials, producers and service providers regarding lessons learned and areas to upgrade. Late 2020, early 2021 – Secure beyond visual line of sight (BVLOS) tech for 2021 with Federal Aviation Administration (FAA) and North Dakota test site. May 2021 – Reset and update satellite imagery; fine tune database of roads; interact with county officials, oil companies and service providers to develop image library of prime roads and priority roads. June 2021 – Begin collecting year two data via drone for baseline data set (augmented by satellite imagery). Anticipate completion of baseline data set by end of July. Build data into HIVE data base. July 2021 – Finalize data set of baseline, supplement with data from LoadPass, UGPTI and county officials. Cross reference all data with WDEA weather station data. Ongoing flights of roads as required due to weather. August 2021-October 2021 – Ongoing maintenance of data base. Ongoing flights of roads as required due to weather. November 2021 – Ongoing maintenance of data base. Ongoing flights of roads as required due to weather. Start finalizing year one data base and wrap up with county officials, producers and service providers regarding lessons learned and areas to upgrade. Work out with LoadPass or WDEA to implement future collections into current operations for fees with users and oil companies. – Source: ISight RPV Services
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Saturday, April 25, 2020
Minot Daily News • PROGRESS: Energy
ND refineries By ELOISE OGDEN
Two refineries operating, third one in development
Regional Editor eogden@minotdailynews.com
Mandan Refinery Marathon Petroleum Corp.’s (MPC) Mandan Refinery is the oldest refinery in North Dakota. Beginning operations in 1954, today the refinery has a crude oil refining capacity of 71,000 barrels per calendar day (bpcd), according to Marathon’s website The refinery processes primarily sweet domestic crude oil from North Dakota and manufactures gasoline, distillates, propane and heavy fuel oil. Refined products are shipped via truck and rail. Mandan Refinery has about 290 full-time employees. Health, Safety & Environment – Steward of natural habitats including the dedicated 640 acres surrounding the refinery. – Partnered with the Bismarck and Mandan Parks and Recreation Departments to plant more than 11,000 trees for the State’s Annual Arbor Day over the past 25 years. – Site recognized for excellence in safety performance by Occupational Safety and Health Administration in 2014. – In 2015, the refinery logged 3.8 million hours without a Days Away From Work (DAFW) injury. Marathon Petroleum Corp. and its Mandan Refinery are involved in the local community including: – Donated $800,000 in charitable giving to non-profit organizations in the Northern Great Plains in 2016. – Awarded a three-year, $750,000 grant to Bismarck State College to develop a virtual process technology training program. – Completed a three-year, $750,000 grant to the North Dakota Safety Council to develop a state-of-the-art training center. – Supports Junior Achievement of the Upper Midwest to reinforce science, technology, engineering and math (STEM) education to 3,500 students.
Dickinson Refinery
Marathon Petroleum Corp.’s (MPC) Dickinson Refinery is located four miles west of Dickinson. With a crude oil capacity of 19,000 barrels per calendar day (bpcd), the refinery primarily processes domestic crude oil from North Dakota and manufactures ultra-low sulfur diesel and gasoline blendstocks, which are dis-
Marathon Petroleum Corp.’s Mandan Refinery is the oldest refinery in North Dakota. tributed by truck and rail, according to Marathon’s website. Converting to renewable diesel facility Marathon Petroleum Corp plans to convert the refinery into a 12,000 bpcd, 100% renewable diesel facility, which will process refined soy oil and other organically derived feedstocks, by December 2020. The refinery has about 90 employees. Health, Safety & Environment The refinery is a state-ofthe-art facility utilizing modern emission-control technology. It uses recycled water from the city of Dickinson’s wastewater treatment plant. Marathon Petroleum Corp. and its Dickinson refinery are involved in the local community including: – Richardton Rural Fire Department: replacement of selfcontained breathing apparatus. – Western Wellness Foundation: supporting the Crisis Shelter. – American Red Cross: West Dakota Chapter 20182019 home fire campaign.
Davis Refinery
Meredian Energy Group’s Davis Refinery is being developed in Billings County. Sited on about 150 acres (and additional acreage for a buffer) east of the Fryburg Rail Facility in Belfield, the Davis Refinery will have immediate access to crude oil supply and to major transportation routes from the beginning of operations. The location will facilitate the shipment of crude oil feedstock and the transportation of refined products to market. According to Meredian Energy Group’s website, the crude oil will be processed by the most modern and efficient plant anywhere, capable of processing 49,500 barrels a
Submitted Photo
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Marathon Petroleum Corp.’s Dickinson Refinery will be converting from crude oil service to renewable diesel fuel by the end of this year.
day of Bakken crude into hyper clean diesel and jet fuels while emitting near zero harmful green-house gases so common at other refineries. When fully complete, Davis Refinery will be rated a Nelson Complexity Index of just under 9 due to its ability to produce a full slate of refined products. Meridian believes the Davis Refinery will be the first high conversion, Greenfield refinery built in the U.S. since the mid-1970s and will enjoy numerous operational advantages over potential competitors. On March 31, Meridian Energy Group announced the company solidified a partnership with Pinkerton, headquartered in Ann Arbor, Mich., as its security and risk management provider for the Davis Refinery. Meridian Energy Group has refinery developments in both North Dakota and Texas. Established in 2013, Meridian has offices in Belfield, North Dakota, Houston, Texas, and Irvine, Calif. Sources: Marathon PetroSubmitted Art leum Corp. and Meridian En- These renderings show the Davis Refinery, a project being developed by ergy Group Meridian Energy Group, in Billings County.
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Minot Daily News • PROGRESS: Energy
Berthold-based company SandPro: Oil-field service company expands its product line
Josh Blackaby
By ELOISE OGDEN
Regional Editor eogden@minotdailynews.com BERTHOLD – SandPro got its start when several partners found a niche in the market and formed the sand filtration company. The company is advancing and now has an extended product line. Partners in the oil-field service company are Jake Feil, CEO; Josh Blackaby, Health, Safety and Environmental manager; Silas Sneed, Chief Human Resources officer; Drew Anderson, Automation and Project Development director; Kelby Kraft, Account manager; and Jacob Whitcomb, Field supervisor. SandPro started in an office in Minot in January 2019 and later in 2019 moved to a facility just north of Berthold. Blackaby said in a November 2019 story published in The Minot Daily News that news traveled fast about their equipment. “When companies find out that something works, they’re happy to try it. Our goal is to create a service company that’s No. 1 in the industry,” he said. In the oil and gas industry, sand is a major issue. After the completion of the well, SandPro’s filters separate the sand from the oil and gas. The company diversified a few months ago when it partnered with a wellhead automation company in Argentina. Feil said in the November 2019 story that they partnered with the company in Argentina because it shared the same core values that SandPro has. “They’re fourth generation, privately owned and have been in business for 90 years. They’re going to help us bring technology, efficiencies, engineering capabilities to the table that we’re going to keep local here in the North
Kelby Kraft
Submitted Photo
These are SandPro’s zipper manifolds. The zipper manifold facilitates quick redirection of fracturing pressure from one well to another, enabling pump trucks to run nearly continuously to minimize downtime. Dakota oil field. Our primary goal is to create a company that people drive by, want to work there and are proud of working there,” Feil said. “Our goal is to build and hopefully have something to hand over to our kids in the future,” Sneed said. Since last November, SandPro has expanded its product line. As of April 7, SandPro’s product line available now includes: –Wellhead products –ESP Surface Systems –Sand filtration –Frac valves & trees –Frac manifolds –Monoline –Wellhead/frac technicians –Wellhead consulting –Frac program consulting –Frac greasing out –Flowback/screen services –Facility watch The company is also looking at other services to provide to communities besides in the oil and gas industry, Sneed said. SandPro built its employee number up to 27 but due to the recent downturn in oil they have had to lay off several employees. In regard to the recent oil and gas industry situation, Sneed said on April 7, “We’re doing everything we can. It’s super tough because you can’t see how long it’s going to take. We can make it but
Silas Sneed
Jacob Whitcomb Submitted Photos
ABOVE: Jake Feil, CEO, is at the white board in the SandPro conference room with part of the SandPro legacy team.
RIGHT: This is the front entry at SandPro, an oil-field service company near Berthold.
we could use help.” “We want to grow this company here in North Dakota. The headquarters will always be here,” said Sneed. He said they are striving to become as successful as possible.
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Drew Anderson
Jake Feil
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Saturday, April 25, 2020
Minot Daily News • PROGRESS: Energy
Project Tundra reduces CO2
Young Station pilots technology for carbon capture
By JILL SCHRAMM
Senior Staff Writer jschramm@minotdailynews.com CENTER – A pilot project at Minnkota Power Cooperative’s Milton R. Young Station near Center is proving the feasibility of technology to capture carbon from North Dakota lignite coal. Project Tundra is in an advanced research phase and results indicate the technology could be ready for commercial construction in a few years. More than 90% of the carbon dioxide emissions from the station’s largest unit generator would be captured and stored more than a mile underground if the project moves forward, making North Dakota a world leader in the development of next-generation energy technologies. “When you look at where we are in the development phase, we’re one of the leading projects, not only around the country but the world at this point, in terms of what we’ve already accomplished,” said Stacey Dahl, senior manager of external affairs for Minnkota. The project has been in review for the past five years. “A lot has changed, but the project continues to get traction and garner interest,” Dahl said. “There was a group of developers that brought the project to us. The project dynamics have changed over the last five years, but that includes Minnkota not just being the host site but really taking the lead on the development role.” Minnkota went into the project knowing it would take tremendous state and federal support,” Dahl said. A similar pilot project using sub-bituminous coal in Texas had a model using large federal grants and a mix of state and local incentives, and Minnkota presumed the same model for Project Tundra. Minnkota secured $9.8 million from the U.S. Department of Energy and $15 million from the state of North Dakota’s Lignite Research Fund in 2019 to conduct a FrontEnd Engineering and Design study. As federal policy has changed, the 45Q tax credit for carbon capture projects, passed in 2018, became a financial driver for Project Tundra. The tax credit supplies $50 a ton for sequestered CO2 and $35 a ton for CO2 captured for enhanced oil recovery. Dahl said the hope is to use captured CO2 from Milton Young for enhanced oil recovery down the road, although geologic sequestration is the primary focus currently. Minnkota is working with Eagle Energy Partners to explore enhanced oil recovery opportunities in western North Dakota. Minnkota calculates the tax credit should pay for capital costs, operating and maintenance costs over the life of the project and provide a return to investors. However, there’s still work that must occur to finalize the design, which will influence cost. Minnkota has stated it would not pursue Project Tundra if it substantially increases electric rates. The current plan is to form partnerships that will allow for the use of 45Q federal tax credits to offset the approximately $1 billion capital project cost. Minnkota wants to have permitting complete by the end of 2021 and financing in place in early 2022, allowing for construction to potentially start by the end of 2022. It is estimated that the construction of Project Tundra would create an additional 2,000 temporary construction jobs in Oliver and Mercer counties. Project Tundra uses amine-based technologies. Amines are organic compounds derived from ammonia. “Amines have been around for
The Milton R. Young Station near Center burns lignite coal from a nearby mine.
Submitted Photo
A schematic shows the layout for Project Tundra, a carbon capture project at Minnkota Power Cooperative’s Milton R. Young Station near Center. decades, and they’ve been demonstrated over the course of those decades to work very well at binding to CO2. It just happens to be a very energy-intensive process to do that, which has been one of the reasons these projects are so expensive, in addition to large capital costs,” Dahl said. Minnkota has been working with the Energy & Environmental Research Center in Grand Forks for four years to study the impacts of amines and how they interact with the flue gas from lignite coal. “We’ve not only looked at it in the lab, but we’ve done on-site pilot testing as well, which is why the degree of confidence is so high in terms of being able to capture the CO2,” Dahl said. There’s confidence in sequestering the CO2 thousands of feet underground, too, because much is known about the geology of the area, given the research related to oil development. The area has unique geologic formations that enable sequestration of the proposed 4 million tons a year from the Young station. “There are already fluids that
have been trapped in those formations for millions of years, and we know that that there are essentially impermeable layers that will trap the CO2, just as they have trapped other gases and fluids in them in those formations,” Dahl said. Minnkota is considering two sites for sequestration. One is under the plant site and the other is four to five miles to the northwest, just south of the city of Center. CO2 would be piped to the farther site. The major hurdles ahead are permitting and financing of the project. Work is ongoing to obtain permits for the capture facility and the subsurface CO2 storage facility. That process can take a year or longer. The state of North Dakota, rather than the federal government, handles the majority of permitting, including having primacy over the process for injecting CO2 underground. North Dakota currently is the only state to have primacy over that program. “One of the reasons we’re doing this is because we’ve seen such a wide swing in regulations,” Dahl said. “Rather than try and withstand the swings of regulation or other
policies, we want to use technology for the benefit of our membership to preserve the assets that we have, and certainly the Milton R. Young station is a very valuable asset to our membership. It’s very stable. It’s very reliable and, ultimately, it’s cost effective.” Dahl said the hope is to see the technology employed throughout the lignite industry. The technology is important to preserve coal, particularly lignite coal, as a stable, reliable source of energy, she said. That is important not just for North Dakota because more than half the world’s coal reserves are low-ranked coals like lignite, she said. Operated by Minnkota Power Cooperative, the Young Station is a mine-mouth generating station that uses lignite coal supplied from the adjacent BNI Coal mine to produce power for consumers in North Dakota and Minnesota. Unit 2, a 455-megawatt unit that began commercial operation in 1977, is the target for Project Tundra. The plant has a smaller Unit 1. About $425 million already has been invested at the Young Station to meet current emissions control
ND crude by rail facilities
Submitted Art
This map shows the current crude oil by rail facilities in North Dakota. Map from North Dakota Pipeline Authority.
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Submitted Photo
Company drills well for carbon sequestering
RICHARDTON – Red Trail Energy is drilling a stratigraphic well, designed to be permitted as a Class VI injection well for sequestering carbon dioxide from the company’s ethanol plant in Richardton. The drill pad for the well was complete in March, and drilling was to start this month. The injection well will extend more than a mile underground, with drilling taking about 23 days and involving the collection of multiple core samples, sealing the well walls with concrete and a nickel casing and installing an array of sensors to monitor temperature and pressure. The capture and storage of CO2 will enable the facility to sell to states with low carbon fuel standards, such as those on the West Coast. Sen. John Hoeven, R-ND, secured final approval for North Dakota’s regulatory primacy over Class VI injection wells, which are used for geologic or long-term storage of CO2, the first such approval in the nation. The state Legislature created a regulatory framework for carbon sequestration under the North Dakota Industrial Commission. “Our efforts to advance the development of commercially-viable carbon capture technologies benefit both traditional energy producers and renewable energy, giving companies like Red Trail Energy access to new markets by leveraging their work to capture and store CO2,” Hoeven said. “This means better prices for ethanol producers as well as farmers, all while empowering greater energy production with fewer emissions.”
Saturday, April 25, 2020
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Minot Daily News • PROGRESS: Energy
Tribal college receives $2.5 million for Enhance Engineering Program By ELOISE OGDEN
sources, according to Cramer’s office. Regional Editor “Nueta Hidatsa Sahnish eogden@minotdailynews.com College (NHSC) will establish NEW TOWN – The Nueta an academic and professional Hidatsa Sahnish College in pathway to increase the numNew Town recently received ber of engineers from and em$2.5 million from the National ployed by the MHA Nation and Science Foundation for the col- local industry,” according to the lege’s Full-Circle Engineering National Science Foundation. “The project builds upon Center of Excellence. Sen. Kevin Cramer an- the success pre-engineering nounced the award in March. collaborative that developed The Full-Circle Engineering the pre-engineering program of Center of Excellence serves the study at NHSC, allowing stuengineering needs of the Three dents to transfer to North Affiliated Tribes – the Mandan, Dakota State University for Hidatsa and Arikara Nation – upper division preparation. on the Fort Berthold Reserva- The Full Circle Engineering Center of Excellence will pretion. Fort Berthold Reservation is pare and provide students with in the heart of the Bakken, the internships during their junior and senior years and then facillucrative oil formation. The $2.5 million award was itate the tribe or industry’s hirapproved through the National ing them as junior engineers, Science Foundation’s Division with the ability to rotate among of Human Resource Develop- several departments as they ment and the Directorate for find their preferred niche. The Education and Human Re- junior engineers will work with
professional engineers to learn non-classroom aspects of engineering practice, such as safety and communication. The Center will also conduct community outreach events to demonstrate the role that engineering plays in the quality of life of the community, and the role of the Center in providing engineers for that contribution,” according to NSF information. A goal of the Tribal Colleges and Universities Program (TCUP) is to increase the intellectual leadership of tribal colleges so they can address the scientific and engineering needs of their tribal communities and, more broadly, the entire nation. The Nueta Hidatsa Sahnish College’s project aligns with that goal, and will impact the economic strength of the MHA Nation by fostering new STEM employment opportunities, according to Cramer’s office.
Submitted Art
Significant development DENVER – Outrigger Energy II LLC, based in Denver, is planning a 70-mile long pipeline to a new processing plant at Williston. The company announced in January it has entered into a longterm gas gathering and processing agreement with XTO Energy, Inc. to service XTO’s production in Williams County in northwestern North Dakota. The gathering system will comprise a 20- and 24-inch diameter 70-mile long rich gas pipeline originating in eastern Williams County and terminating at a new 250 MMcfd (million cubic feet per day) cryogenic gas processing plant west of Willis-
Gas processing plant & gathering pipeline planned for Williams County ern Border Pipeline system for residue gas and the ONEOK natural gas liquids (NGL) pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets. “We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant devel-
ton, according to Outrigger Energy officials. Plans are also in the works for a plant expansion of up to an additional 200 MMcfd, for total gas processing capacity of 450 MMcfd. Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the North-
opment plans in Williams County,” said Dave Keanini, CEO of Outrigger. “Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity. “Moreover, this additional midstream capacity for gas production north of the Missouri River allows the state of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin. Over the last six
years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.” The project timeline in-service date is December. Outrigger Energy II LLC is a private, full-service midstream energy company specializing in greenfield project development with a current focus on liquidsrich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming and the Williston Basin.
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Minot Daily News • PROGRESS: Energy
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Saturday, April 25, 2020