Bismarck Tribune - North Dakota News - <B>Use oil wealth to sustain areas</B>

Use oil wealth to sustain areas

Jul 23, 2008 - 04:06:17 CDT

By LARRY RUED
Palmetto, Fla.

As a former resident and current mineral rights owner in Mountrail County, I closely follow the Bakken oil developments in western North Dakota.

I would hope the Legislature and governor of North Dakota would become more proactive in establishing economic development zones so the non-renewable wealth being extracted from the oil-producing counties is used to develop future businesses to sustain these areas when the oil wells run dry.

As an example, EOG Resources made the first major Bakken discovery in Wayzetta Township in Mountrail County in May 2006. Since that discovery, the state has collected over $13 million in oil-related taxes and royalties from Wayzetta Township wells.

The challenge for North Dakota government officials is to use the oil money coming from these wells to encourage and financially support the oil-producing counties' efforts to attract new businesses to their rural communities.

Now is the time to enact programs that will sustain the vitality of these communities for the benefit of future generations.

News > Opinion

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Comments

Rural rights wrote on Jul 23, 2008 2:40 PM:

" Larry you are so right, the extra tax revenue could be used to fund economic development in rural towns throughout the state. Money is the greatest problem in any start up. There is plenty of igenuity and ideas in the rural areas of North Dakota, but they need money.

Problem is Hoeven and his sidekicks would rather create incentives with that money for big, big companies in the big, big cites like Fargo and Bismarck. Of course that is where the votes are; that short-sightedness whispers buffalo commons.

Sound economic development is creating economic viability in areas that do not have it or are loosing it. "

KeepTheExplorationHere wrote on Jul 23, 2008 12:47 PM:

" This tax break is what lured the rigs over to North Dakota from Montana. Montana is now seeking the same type of break for the oil companies. I wouldn't say this insentive has been a boom for North Dakota oil fields. Leave it up to the Democrats to try and destroy something good for our state. Oh, that's right...it is the Democrats that want to use our tax dollars to build a state owned refinery...guess the state government would be in bed with big oil then, wouldn't it. Extend the break to keep the companies from moving back into Montana's Bakken fields. "

Oil Company Give Aways wrote on Jul 23, 2008 9:43 AM:

" Republicans approved tax discounts for 75,000 barrels per well with one company
getting 4 wells. There is 30 gallons of petroleum protects per barrel whioh is
9 million gallons of oil products at reduced tax rates. The democrats stated the
oil companies did not need this as they are all making huge profits and they were
going to drill without the tax breaks anyway.Republicans want to extend this tax
credit and Hoeven's new energy commission decided oil companies are not making enough money and they need to reduce the taxes on oil companies a few
weeks ago. There is a reason why oil companies give 80% of their money to Repubilcan party. How m "

wouldBEnice wrote on Jul 23, 2008 8:04 AM:

" Good idea, but it will never happen. Remember the late 70's and early 80's when communities like Williston, Dickinson, Watford City, etc... were begging for some of the oil revenues to fix roads and infastructure in their communities and counties impacted by the industry? The money went instead, to the eastern half of the state...where the population was. I'm sure the majority of money will once again head east to help with the upkeep of places like the Fargodome and Alerus center. "

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