Some North Dakota business and local government leaders say cities that do not have natural gas services are at a disadvantage when it comes to attracting business, especially manufacturing.
And an interim Legislative committee is studying ways to expand natural gas service to those communities.
"It's starting to rank along with the transportation network, fiber optics, power and affordable energy services as key criteria companies look for when investing in communities," Public Service Commission chairman Julie Fedorchak told the interim Economic Impact Committee.
"Natural gas is a resource typically required, in order to attract any significant manufacturing opportunity," said Economic Development Association of North Dakota president Connie Ova, who is the CEO of the Jamestown/Stutsman County Development Association. "National site selectors have reported they will not consider a community for a manufacturing project if it doesn't have natural gas service."
Ova says Williston Basin Pipeline Company had agreed to extend a natural gas line to Spiritwood, east of Jamestown, when CHS had proposed a fertilizer plant. The plant project was canceled. Ova says WBI has put the project on hold – but has four years left on the easements for the pipeline.
"What they (WBI) has told me, is they don't have to have a CHS, but they do have to have a substantial user," Ova said. "They are more than happy to move forward with it -- they told me they have the hardest work done, which is getting the easements. They would like to capitalize on that."
Ova says the cost of a natural gas pipeline extension is roughly $1 million per mile.
Fedorchak told the Committee North Dakota has 89 communities with natural gas service, and 368 communities without natural gas. She says 11 of the communities without natural gas have a population of more than 1500 people.
Fedorchak also says she recently talked with Bobcat – about the situation in Gwinner. The Bobcat plant there uses propane – and she says Bobcat is satisfied with that. But Fedorchak says propane is about three times the cost of natural gas.
"This isn't any sort of threat they are pulling out of North Dakota," Fedorchak said. "They are satisfied with North Dakota, and love the workforce here. But the reality is, the opportunity to grow in Gwinner is hampered because of the fuel cost."
Fedorchak says other states have come up with tax incentives and other options to help companies expand their natural gas lines to unserved areas. The committee will make recommendations to the next Legislative session.
