State's 'energy road' in traffic jam

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North Dakota has an abundance of this century's hottest commodity, but getting it to market may be tougher than getting it produced.

This state could rank among the top 10 producers of everything from the been-arounds of electricity, synthetic gas and oil to the newer age ethanol and wind power, a new interim legislative energy committee heard Tuesday.

It also heard that every means of exporting energy needs expansion before North Dakota's potential to feed the country's vast appetite for energy can be fully realized.

It won't be an easy task and there was a realization by the Energy Development and Transmission Committee that the legislative incentives will have to shift into a new gear to keep up.

Until now, the state has invested millions in incentives and, in the case of wind energy, promoted deregulation to develop energy. It was clear those efforts have met with a goodly amount of success, based on five hours of reports the committee heard on the oil and gas, coal, ethanol and wind industries in the state.

Now, the Legislature will have to create incentives to get the energy products to the market.

Sen. John Andrist, R-Crosby, observed, "No matter what kind of energy we're making, we're having trouble getting rid of it."

By "rid of it," Andrist meant not so much finding a buyer, but finding a way to put more gas, crude or even refined oil into a pipeline, and wind and coal-fired electricity onto a transmission line to move it elsewhere.

Those transportation systems are at capacity and need upgrading to prevent the cart from getting in front of the horse, the committee heard.

Lynn Helms, who directs the state Oil and Gas Division, said the state's oil and coal reserves alone are a formidable resource, with natural gas production not only increasing, but showing up in unexpected locations.

At the present rate of production, the state's known oil reserves could last another 50 years; for coal, that number is an astonishing 800 years.

"The hot button is export capacity," Helms said. "The resources are there."

A bottleneck on the crude-oil pipeline system cost the industry millions last summer, and while the situation has improved some, more capacity is critical. Oil production is reaching all-time highs again and could ratchet up quickly if the Bakken oil play continues to show promise, Helms said.

With reports to the committee of new coal-fired plants in development at South Heart, Gascoyne and Jamestown, and in consideration at Center and Stanton, and the present 180 megawatts of wind energy poised to double in the near future, the cart-ahead-of-the horse scenario is quickly approaching.

Sandi Tabor, acting director for the state's new Transmission Authority, told the committee it will take a multistate and national effort to open the transmission gridlock.

A key element for future coal sales will be a transmission expansion from Coal Country to western Minnesota to take advantage of 8,500 megawatts of new power load forecast through 2020.

"Who pays for it? That's the key issue that's being discussed," she said.

Sen. Rich Wardner, R-Dickinson, chairs the committee.

Wardner said he wants the committee to develop an energy vision and bring all the e nergy players together.

"North Dakota, without doubt, is a player in the energy world," Wardner said. "The issue of transporting energy out is more pronounced than I thought."

(Reach reporter Lauren Donovan at 888-303-5511, or lauren@;westriv.com.)

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