Hoeven Announces Projects To Address Increased Water Demand For State's Oil Industry Projects Address Infrastructure Challenges Identified by Community, Industry Leaders

Press Release

Gov. John Hoeven today announced that the North Dakota State Water Commission has approved two projects that will address the increased demand for water by companies exploring and extracting oil in southwest North Dakota.

The projects are the result of a meeting the Governor organized in December 2009 with community officials, rural water system operators and oil industry leaders. The meeting was held to discuss options for expanding municipal water systems, creating additional economic opportunities for communities, while meeting industry's increased water demands.

North Dakota's growing energy industry is creating an increased need for water to bring oil wells into production. Lake Sakakawea and the Missouri River provide an abundant supply of water near much of the energy activity and are considered the most reliable water source in terms of both quantity and quality required for oil field development in western North Dakota.

"The state's increased oil activity has resulted in infrastructure challenges such as the need for an abundant, good quality water supply," said Hoeven. "We have worked closely with water system managers and oil industry officials to identify options to enhance water development in western North Dakota. These projects will address a need in the state's oil industry and help communities grow their water systems for future generations of municipal and industrial users."

One of the projects approved by the State Water Commission includes funding for a regional water service for the McKenzie County Water Resource District. The first part of the project will bring up to 4 million gallons per day of water from Williston to McKenzie County to supply water depots that will be used for bulk water sales to the oil industry, generating revenues for the continued development of the regional water system. The Commission approved up to $3.5 million in funding for the $7 million project.

A second project approved by the Commission will tap into the existing Southwest Pipeline near Dodge in Dunn County to access up to 1.4 million gallons of Lake Sakakawea water. The pipeline carries water to Dickinson for treatment, and the extra water not needed by the rural water system will be sold to oil companies to enhance exploration and extraction activities in the Dunn and Mercer county area.

"The Water Commission's actions to enhance water resources from Lake Sakakawea and the Missouri River for community and oil field use is big news for the industry and our state," said Ron Ness, president of the North Dakota Petroleum Council. "This all really occurred as a result of the December meeting called by the Governor and reflects the state's commitment to meeting the needs of the oil industry and to helping build water infrastructure for western communities. It's a win-win."

In recent years, the State Water Commission and the Drinking Water Revolving Loan Fund managed by the state Health Department have provided direct financial assistance for water system expansions in Williston, Parshall, Ray, Tioga and Stanley. As a result, these communities are now able to meet their domestic needs and provide water to the oil industry.

According to Hoeven, the state is continuing to work to address similar infrastructure challenges in other parts of the state, including locations along the north side of Lake Sakakawea. Additional recommendations identified during December's meeting will be pursued, and the state will continue to work with communities and the oil industry to address increased water demands and the expansion of rural water systems.

Hoeven chairs the nine-member State Water Commission that oversees the effective management of North Dakota's water resources.

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