Committee advances discussion on grasslands grazing grant bill aimed at water, fencing and habitat projects

Senate Bill 2,368, which would add statutory framework for a grasslands grazing cost‑share program administered through the agricultural commissioner, drew broad support from grazing associations, conservation groups and the agriculture commissioner at the House Agriculture Committee Wednesday.

Sponsor Senator Greg Kessel said the program formalizes a multiyear effort that has previously been funded through one‑time appropriations; in recent bienniums the program received $5 million and $1 million through appropriations, he said. The bill would create a permanent code section to define eligible projects and program rules.

Why it matters: Testimony emphasized that strategic water development, conversion of orphaned oil wells to livestock water, cross‑fencing and related improvements have allowed ranchers to use large blocks of public and private grasslands more effectively. Witnesses said the grants also yield public benefits — improved wildlife habitat, carbon sequestration potential and additional firefighting water sources near trails and recreation areas.

What agencies and ranchers said: Agriculture Commissioner Doug Goring told the committee the department has run the program during prior biennia and that a priority has been converting abandoned oil wells on the grasslands into functioning water wells and distribution systems. DMR (Department of Mineral Resources) staff explained the conversion process: logging surface casing, perforating the Fox Hills formation, pump testing and installing tanks or pitless systems; DMR reported 11 conversions completed in 2024 and further installations planned in 2025.

Ranchers and grazing associations described direct benefits: Madora Grazing Association representatives gave figures for water pipeline and tank mileage installed, cross‑fencing and stock tanks serving many members; Cheyenne Valley Grazing Association witnesses described cross‑fencing, weed control and improved permitted grazing pounds. Conservation groups — including the North Dakota Wildlife Federation and the North Dakota chapter of Backcountry Hunters & Anglers — testified the program helps rotational grazing and habitat management.

Federal‑land and funding constraints: Witnesses and lawmakers discussed that National Grasslands comprise interspersed federal and private lands with permit structures that can limit use of federal programs. The department and DMR said early projects were delayed by federal timing and permitting; the bill would place an ongoing program in code so future appropriations could be used consistently.

Outcome: Committee heard proponent testimony from grazing associations, industry groups and conservation organizations; no committee vote was taken during the hearing. Committee members asked follow‑up questions about cost comparisons (converting an oil well vs. drilling a Fox Hills well), whether grants are limited to association members, and the program’s relationship with federal CP funds and OPSRF appropriations.

Clarifying details: Witnesses offered sample costs: association testimony gave approximate project totals and reported NODMR estimate that some Fox Hills wells cost roughly $250,000 to drill while conversions have ranged near $40,000 per well for log, perforate and test; later pump and pump‑installation costs were described in the $25,000–$40,000 range depending on site conditions. DMR described static water levels observed and pump yields in the range of 10–15 gallons per minute in tested conversions.

Next steps: Committee members asked for additional technical information on program administration, weed‑control funding and federal coordination; no action was taken at the hearing.