In the world of repairing rural roads, Jeff Engleson is the man with the money. Three million dollars, to be exact.

Engleson, director of the Energy Development Impact Office at the state land department, is beginning the 2008 process of dividing up energy impact grants to local governments who've seen their infrastructure grated up by the recent increase of oil drilling activity.

But even with $500,000 more to give away this year versus last year, Engleson said he expects there to be many more requests than the state can accommodate. During the 2005-07 legislative budgeting biennium, local governments made requests of $72 million and received $5 million.

"We certainly don't expect it to be less (this year) with all the activity out there," Engleson said.

The beginning of this year's grant application round is one part of an ongoing tug-of-war between the state and local governments that have had their infrastructure torn up by the increase of oil activity in western North Dakota.

During the 2007 legislative session, lawmakers from the state's oil and gas counties pushed for both a greater share of the state's oil tax revenue and an increase in grants. They got both, but at compromised levels that are much reduced from what they originally sought.

Brad Beckkedahl, finance commissioner for the city of Williston, said his city would be applying for a grant, but doesn't expect it to cover a significant portion of the maintenance costs.

He said the grants were a big help a few years ago when the city's biggest impact-related expense was paying off interest from bonds issued to pay for the impacts of an oil boom in the 1980s. But today, with renewed and increasing impacts, the fund is not adequate, Bekkedahl said.

"It means the local property tax base will have to pay for it," he said.

During the 2005-07 biennium, the state land department split its $5 million into 311 grants that went to 219 subdivisions. About 45 percent of the awards went to townships, which do not receive a share of the revenue from the state's oil taxes.

That revenue goes to counties, cities and school districts. It is paid out from the state based on a formula and is partially considered compensation for the fact that local subdivisions do not get to access property taxes on oil rigs and similar structure.

The grants, a separate program, will be awarded based on a subdivision's ability to demonstrate negative impact, the grant's potential to help and whether the subdivision is judged to be adequately trying to pay for its infrastructure through local services.

"We really want everyone who is experiencing impact to apply for a grant," Engleson said.

He is directing all who want to apply to the state land department's Web site at www.land.nd.gov.

After the March 25 deadline, Engleson will set out to meet with each individual subdivision and take a tour to assess its needs.

"I expect to be out on the road a lot in April and May," he said.

(Reach reporter Jonathan Rivoli at 223-8482 or jonathan.rivoli@bismarcktribune.com.)