Reese Hawes, director of the North Dakota Department of Water Resources, told the committee the department has invested in lower‑cost remote monitoring and has dramatically increased the volume and frequency of water‑resource data available to the state.

Hawes described an in‑house remote sensing unit called a "presence" unit (pushing remote sensors) that can collect data every 15 minutes. He said the units cost roughly $477 each for the in‑house design versus about $2,000 for a comparable commercial product; DWR has deployed about 675 units across the state and has collected more than 26 million data points since 2018. "In the last year alone, we've collected more data than the previous 80 years combined," Hawes said.

Hawes provided project updates and operational constraints. He said the Devil’s Lake outlets operated this season but were constrained by water‑quality limits: "We started off with a low snow pack ... it's looking like we won't be able to operate them again until next season," he said, explaining that high naturally occurring sulfates in Devil’s Lake force coordination with the Department of Environmental Quality and limits on discharge to the Cheyenne River.

On the Northwest Area Water Supply Project, Hawes said work continues: Snake Creek Pumping Plant upgrades are on a near‑term schedule and the biota water treatment plant needed for cross‑divide transfers is expected to begin phase‑1 operations in summer 2026, with a permanent intake planned for 2027. He said the NAS (Northwest Area Supply) biota treatment plant encountered a manufacturing defect in a filter underdrain; DWR has ordered removal and replacement while a third‑party engineer evaluates responsibility. Hawes said the expected cost for removal/replacement would be roughly $1.0–$1.2 million, and the manufacturer has agreed to cover costs if a third‑party engineer concurs that replacement is required.

Hawes walked the committee through the department’s 14‑year inventory of water needs, which totaled about $3.4 billion in projects eligible for State Water Commission cost share under current policy. He said that, given forecasts for oil extraction tax revenues and the effect of stripper‑well exemptions, the department expects a $1.3–$1.6 billion shortfall relative to identified needs. To manage cash flow and project delivery, the legislature authorized a $210 million line of credit for the department; Hawes described the policy as an "overdraft privilege" that helps match long project timelines and the department’s reimbursement model.

Hawes described two consultant studies the department has contracted: a regional water systems governance and finance study and a comprehensive cost‑share study. Deloitte was selected as the consultant on both studies; the governance and finance scope is priced at roughly $420,000, with draft reports due to the committee in March 2026. Hawes said the cost‑share engagement will produce a financial model the state can use to analyze future cost‑share policy decisions; both studies are intended to inform long‑term prioritization and program sustainability.

Hawes also explained how the State Water Commission is adjusting cost‑share policy in response to revenue forecasts and project demand, and he described mitigation efforts to reduce carryover and speed project delivery, including a two‑tier preconstruction/construction approval process.