Jack Dalrymple on Energy & Oil



New safety rule: filter crude oil for dangerous types of gas

Dalrymple praised recent safety rules from the United States and Canada that will require thicker hulls, among many other standards, to improve the safety of crude-by-rail transport. "I think the improvements are very good," he said. "The biggest factor in safety of transport are the cars themselves."

The rules come after Dalrymple and other state regulators instituted new rules last fall requiring every barrel of crude be filtered for dangerous types of natural gas. "It's helpful to see these as one part of the overall safety equation," he said. "Still, it's important to see that North Dakota crude is not different from other light, sweet crudes around the country."

Source: Reuters Media on 2016 North Dakota gubernatorial race , Jun 19, 2015

Reduce oil extraction tax from 6.5% to 5%

North Dakota Legislative voting records for H.B. 1476 Jack Dalrymple signed bill 1476:

There is hereby imposed an excise tax, to be known as the "oil extraction tax", upon the activity of extracting oil from the earth. The rate of tax was 6.5% and this bill reduces that rate to 5% of the gross value at the well of the oil extracted. The 5% rate also applies to secondary or tertiary recovery projects, where the previous tax was 4%. However, if the average price of a barrel of crude oil exceeds the trigger price of $90 for three months, then the tax rate is set at 6%. Previously the trigger price had to exceed $90 for five months.

Source: North Dakota Legislative voting records for H.B. 1476 , Apr 29, 2015

Focus on pipeline and rail capacity for oil & gas

In energy we continue to see our growth targets realized. We have seen amazing growth in crude oil production, increasing from 460,000 barrels per day when I spoke to you two years ago, to 747,000 barrels per day currently. Two years ago pipelines and rail capacity were major barriers to growth in oil and gas production. Since 2010 we have more than doubled our pipeline and rail capacity from less than 500,000 barrels of oil per day to one million barrels. Not only is that good for the industry but it also gets trucks off our roads.

Our production of natural gas has also more than doubled from two years ago. We have encouraged the gathering of natural gas and have also doubled processing capacity since the end of 2010. By 2014 we expect to have capacity to process 1.36 billion cubic feet of natural gas per day. We are also promoting the use of natural gas at the well site instead of diesel fuel, and today we are seeing a leveling off of the percentage of natural gas that is being flared.

Source: North Dakota 2013 State of the State Address , Jan 8, 2013

Decrease foreign oil reliance, expand ND energy development

The growth of the energy industry is vital to the continued prosperity of our state and to decreasing our nation's dependence on foreign oil. By bringing together key industry leaders, we can identify ways to expand all energy sectors, both traditional and renewable, and continue to position North Dakota as a leader in energy development.
Source: N.D. 2011 gubernatorial press release, "Empower N.D." , Aug 1, 2011

Support for oil refineries expansion

I commend Tesoro Co. for expanding its capacity to refine oil produced in western ND. This project is another positive step that will help support North Dakota's growing oil production industry by expanding the market for oil from the state's gas and oil producing counties.

The project is a good example of private enterprise developing an opportunity that benefits both oil producers and individual consumers.

Tesoro's Mandan refinery processes crude oil that is transferred by pipeline from western ND.

Source: N.D. 2011 gubernatorial press release, "Refinery Expansion" , Mar 21, 2011

Advocate for renewable fuels, blender pumps

The pace of installing blender pumps nationwide has been too slow and North Dakota is a good example of what can be accomplished when government and private industry work together.

North Dakota leads the nation in the number of blender pumps that offer mid-level blends and gasoline blended with up to 85% ethanol (E85). The EPA should do its part to expand market access for blended fuels by approving gasoline blended with 15% ethanol (E15) for use in all vehicles.

Source: N.D. 2011 gubernatorial press release, "Renewable Fuel" , Mar 4, 2011

Oil & gas development brings jobs; let's build them roads

The remarkable and rapid growth of oil and gas development in western North Dakota has brought jobs and population growth, but it has also brought extreme wear and tear on roads and pushed our water supply systems to the limit. In my budget message I outlined an aggressive, forward-looking plan that will address the needs of our 17 oil and gas producing counties by focusing resources directly on the most heavily impacted roads and facilities.
Source: 2011 State of the State speech to North Dakota legislature , Jan 4, 2011

Letter to Congress supporting renewable energy tax credit.

Dalrymple signed American Renewable Energy Production Tax Credit Extension

Congressional Summary:Amends the Internal Revenue Code to extend through 2016 the tax credit for electricity produced from wind, biomass, geothermal or solar energy, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities.

Proponent's Comments (Governor's Wind Energy Coalition letter of Nov. 15, 2011 signed by 23 governors):Although the tax credit for wind energy has long enjoyed bipartisan support, it is scheduled to expire on Dec. 31, 2012. Wind-related manufacturing is beginning to slow in our states because the credit has not yet been extended. If Congress pursues a last minute approach to the extension, the anticipated interruption of the credit's benefits will result in a significant loss of high-paying jobs in a growing sector of the economy. We strongly urge Congress to adopt a more consistent and longer-term federal tax policy to support wind energy development, such as H.R. 3307.

The leading wind project developers and manufacturers are slowing their plans for 2013 and beyond due to the current uncertainty. The ripple effect of this slow down means reduced orders for turbines and decreased business for the hundreds of manufacturers who have entered the wind industry in our states. When Congress allowed the tax credit to expire in 1999, 2001, and 2003, the development of new wind installations dropped significantly, between 73% and 93%, and thousands of jobs were lost. Providing renewable energy tax credits in order to provide consistency with conventional energy tax credits is the right policy to move the nation forward in an energy sector that offers global export opportunities and the ability to modernize a segment of our electric production infrastructure.

Source: H.R.3307 11-H3307 on Nov 2, 2011

Other governors on Energy & Oil: Jack Dalrymple on other issues:
ND Gubernatorial:
Doug Burgum
Marvin Nelson
ND Senatorial:
Heidi Heitkamp

Gubernatorial Debates 2017:
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Page last updated: Jul 14, 2017