Reese Haas, the new director of the North Dakota Department of Water Resources, told the House and Senate energy committees that the department will focus on managing the state’s water resources, advancing major pipeline projects and expanding real‑time data collection while confronting a persistent funding gap.

"For the record, my name is Reese Haas. And today is my first official day on the job as your new director of the Department of Water Resources," Haas said, opening a wide‑ranging overview of agency responsibilities and projects.

Haas said the department — reorganized into a cabinet agency during the 2021 legislative session — has six divisions and 93 full‑time employees and answers directly to Governor Armstrong. He emphasized the department’s role in administering water rights under North Dakota law and channeling oil‑extraction tax revenue into the Water Resources Trust Fund.

The report outlined several multi‑year projects. The Northwest Area Water Supply (NAWS) pipeline is expected to begin delivering Lake Sakakawea water in 2025 after a protracted cross‑border review with Canada; funding for NAWS in the 2023–25 biennium included $6.9 million from the city of Minot, $12.6 million in federal funds and $9.5 million from the state resources trust fund. The Southwest Pipeline Project serves roughly 58,000 people and 7,600 rural customers; the west‑zone construction and treatment plant expansions are anticipated to finish in summer 2025, Haas said.

Haas described the Water Resources Trust Fund as a substantial revenue source, noting that 20.5% of North Dakota’s oil extraction tax revenue is deposited to support statewide water projects. Still, he warned that estimated state water project needs total about $2.9 billion over 10 years while current trust fund receipts under present prices and production are roughly $440 million per biennium, leaving a long‑term shortfall.

The department also summarized permitting and regulatory activity for calendar year 2024: 64 water‑appropriation permit applications received with 42 issued, roughly 682 temporary water permits (primarily for oil and gas operations), 20 drainage permits, 29 construction permits and 30 sovereign‑lands permits. Haas explained North Dakota’s ‘‘first in time, first in right’’ appropriation system and emphasized that prior appropriations slow new permit processing in already‑allocated basins.

John Paskowski, state engineer, answered questions about local water supply for large dairy and soy processing facilities near the Red River valley. "We have one application right now from one of the dairies for surface water from the Red River," Paskowski said, adding that other dairies are pursuing rural water system connections and rural water district sources rather than applying for individual new groundwater permits.

Sinduja Pillai‑Granols, water development division director, said the Southwest intake remains in mediation and declined to provide details while litigation and negotiations continue: "Since we are in the mediation process, I can't say much more than that." The department noted the Devil's Lake outlets have operated as a flood‑mitigation tool since 2007 and that managing the outlets requires balancing salinity and downstream stakeholder interests.

Haas highlighted the department’s digital tools and data collection: North Dakota has more than 4,000 measured water sites, 550 real‑time groundwater monitors, and a statewide PRESENCE real‑time monitoring system that operated over 600 units in 2024 and yielded roughly 28 million data points. He also described the state’s statewide LiDAR coverage and drone program (three drones, two operators) as enabling proactive mapping and flood/dam monitoring.

Haas outlined recent policy changes to the department’s cost‑share program, adopted after public comment and stakeholder engagement. Revisions clarified sponsor documentation requirements, definitions of operation and maintenance eligibility, and compliance checkpoints prior to applying for cost share. He also noted legislative changes in the last session: House Bill 1385 authorized tribal nations (Fort Berthold and Turtle Mountain are already participating) to enter into cost‑share agreements with the Water Commission.

Haas said the department is preparing its 2025 Water Development Plan and a public dashboard; the plan lists roughly $2.9 billion in projected needs over 10 years by category (regional and rural water, municipal, flood control). He told the committee the department cannot guarantee funding for projects on that plan; it is a planning tool to inform both the Water Commission and the legislature. The director also reminded members the committee’s internal schedule: appropriation bills must be out of the committee by Feb. 7.

During Q&A, members pressed for more granular permit data and timing. Paskowski agreed to provide counts and review frequencies on standing irrigation permits and other categories upon request. Representative Haggart and Representative Conmey asked for county‑level and full dataset breakdowns to better understand allocation and appropriation pressures.

Haas closed by noting the department will await Governor Armstrong’s budget release before discussing next biennium appropriations and asked the committee to consider the magnitude of unmet water development needs when weighing future investments.

The committee paused after the departmental overview and later recessed; the Energy and Environmental Research Center presentation followed the water briefing.