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Committee advances bill to reclassify smaller oil counties for transportation funding
Summary
Senate Bill 2,397 would change the definition of 'oil producing county' to focus on major producers and allow additional Prairie Dog transportation funds to flow to counties experiencing increased oilfield traffic; committee recommended a due‑pass vote and the bill passed the committee vote 5–0.
The Finance and Taxation Committee recommended a due pass on Senate Bill 2,397 after testimony from county and industry representatives who said the current statutory definition of "oil producing county" groups low‑production counties with the major producing counties, excluding some counties from transportation funding streams intended to mitigate oilfield impacts.
Sponsor Senator Mark Engott described four smaller counties currently included by statute (Billings, Bowman, Burke and Divide) as distinct from the state’s major producing counties (Dunn, McKenzie, Mountrail and Williams). He told the committee that heavy traffic from drilling and associated support services is increasing on township and county roads in the smaller counties and that the counties receive limited funds under current definitions.
Jeff Simon of the Western Dakota Energy Association presented production data showing the four large producing counties dominate output and said a production‑based threshold (a rolling 3‑year average tied to barrels) would better reflect where infrastructure dollars should flow. County officials and road‑department witnesses from Burke and Divide counties provided first‑hand accounts of accelerated wear on roads and bridges, frequent re‑graveling, elevated culvert costs, and safety concerns.
Association of Counties and townships representatives supported the bill and the handouts provided by proponents included an allocation estimate showing possible additional Prairie Dog fund allocations to affected counties (estimates in testimony ranged from about $1.3 million to $2.0 million per county in a full funding scenario). Ron Ness of the North Dakota Petroleum Council also testified in support, describing technological changes and growing activity in tier‑2 areas.
After discussion, Senator Wallen moved and members seconded a due‑pass recommendation; the committee roll call recorded a 5–0 vote with one member absent. The committee named Senator Wallen as carrier for the floor, and the bill will proceed with the committee’s recommendation to advance.
