North Dakota Water March 11, 2011 No. 11

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North Dakota Water March 11, 2011 No. 11 J I. Hearing Schedule (March 14 March 18). The hearing schedule of bills being tracked by the North Dakota Water Users Association and the North Dakota Rural Water Systems Association is included in this report. We are tracking these bills because they have a direct or indirect impact on water issues, either at the state agency level, political subdivision level or in private business. II. SB 2020 SWC Budget Hearing Changed. SB 2020, the appropriations bill for the State Water Commission, was moved to Thursday, March 17 at 2:15 p.m. (or after the House floor session recesses) in the House Appropriations Education and Environment Committee. State Engineer Todd Sando will testify first and then the rest of the hearing will be testimony from the critical water needs. The Water Coalition is arranging for testimony and we will be presenting the critical water needs from the Coalition as we did on the Senate side. The Water Coalition meeting has also been changed to 11:00 a.m. on March 17 at the State Water Commission lower level conference room. III. Water Bills. Bills heard on Thursday, March 10: SB 2088 a bill for surface tile drainage was heard in the House Ag committee. This bill is identical to the bill they passed out prior to crossover-hb1459. The committee did not take any action on the bill. SB 2234 a bill for a study on improving coordination and consultation regarding federal designation over land or water resources in the state was heard in the House Natural Resources committee and received Do Pass (14-0) recommendation. On Friday, March 11 several bills were heard in the Senate Natural Resources committee: HB 1335 is a bill that provides the state with the flexibility allowed by the EPA for water transfers to control flooding. The bill was given a Do Pass recommendation from the committee. HB 1413 is a bill relating to the removal of dangers in or on the bed of navigable waters and Rep. Hofstad introduced the bill and another amendment to add an emergency clause. The bill changes the word shall to may and strike the word imminently from the language. The bill allows the State Water Commission more flexibility when dealing with property submerged by water, primarily in the Devils Lake area. It received a Do Pass recommendation. HCR 3007 is a resolution for a study of the eminent domain laws as they relate to pipeline siting and it also received a Do Pass recommendation from the committee. HCR 3019 is a resolution urging the Corps of Engineers to cease wrongful denial of access and requirement of payment for the natural flows of the Missouri river. Once again there was strong testimony in support for the bill and it received a unanimous Do Pass. IV. HB 1318. HB 1318 establishes legislation for an irrigation authority under Garrison Diversion will be heard in Senate Natural Resources on March 18 at 9 a.m.

V. Contact your legislators Continue to talk to your legislators about the importance of the funding requests for water projects throughout the state. Legislators can be reached at the state capitol via e-mail at the address listed in the legislator's bio online under the 62 nd Legislative Assembly link at http://www.legis.nd.gov/assembly/62-2011 or by leaving a message with the legislative telephone message center at 1-888-NDLEGIS (635-3447) or 701-328-3373 for Bismarck-Mandan area callers. When contacting a Legislator, please follow these guidelines: Address your purpose in the subject line, the first paragraph, or at the start of the phone call. Identify specifically what legislation your contact pertains to (for example, HB 1234 or SB 2345). Be specific and include key information, using examples to support your position. Address only one issue in each contact, and keep your contact short and on topic. VI. Copies of Bills. The complete text of all the bills, including the most recent (engrossed) version, can be found on the Internet. Start your search at www.legis.nd.gov click on 62 nd Legislative Assembly (2011) click on Legislation 2011 click on Bills and Resolutions click on House Bills or Senate Bills click on the LC Number next to the bill number you want to look at. To view a bill you will need to have Adobe Acrobat Reader with Search on your computer. If you don't have it you can download it for free from several different sites, including the Legislative site. VII. Hearings Schedule. On following page.

Hearing Schedule March 14-18, 2011 Bills Time Committee Room Monday, March 14 SB 2047 Allocation of federal revenues from the 9:00 H-FINTAX Ft Totten leasing of federal flood lands HB 1334 Sales tax exemption for memberships 11:00 S-FINTAX Lewis and Clark Tuesday, March 15 SB 2017 Game and Fish Budget 8:30 H-APPGOV Medora HB 1018 Dept. of Commerce Budget 8:30 S-APPR Harvest HB 1077 Elimination of the limitation on allocations 9:45 S-FINTAX Lewis and Clark received by a city under the oil and gas production tax HB 1353 Relating to water development trust fund 11:00 S-HUMSER Red River expenditures for funding for School of Medicine Wednesday, March 16 HB 1206 Additional information from the SWC, 9:00 S-IBL Roosevelt Park Industrial Commission and Bank of ND HB 1467 Oil extraction tax triggers and reductions 10:30 S-FINTAX Lewis and Clark HB 1142 Agritourism activity liability 10:45 S-JUD Ft Lincoln HB 1268 Oil and gas production tax within the Ft 2:30 S-FINTAX Lewis and Clark Berthold reservation Thursday, March 17 HCR 3040 Provides compensation to producers 9:00 S-AGR Roosevelt Park affected by Devils Lake flooding SCR 4022 Urging Congress to sell federal land to lessees 9:00 H-NATRES Pioneer of the land in the state HB 1162 Administrative rules committee carrying over 9:00 S-POLSUB Red River consideration of administrative rules SB 2325 County/township road reconstruction program 9:15 H-APPR Roughrider SB 2369 Emergency snow removal, flood mitigation 9:45 H-APPR Roughrider and disaster funding SB 2345 Sugar beet biofuel plant feasibility study 10:00 H-AGR Peace Garden HB 1426 Travel reimbursement rates for state 10:00 S-GVA Missouri River employees and officers HB 1454 Relating to the taking of beaver 10:15 S-NATRES Ft Lincoln HB 1368 Legislative compensation commission 10:30 S-GVA Missouri River SB 2204 Prohibits state funding of the northern plains 11:00 H-GVA Ft Union national heritage area SB 2020 State Water Commission budget 2:15 H-APPEDU Sakakawea Friday, March 18 HB 1459 Subsurface tile drainage 9:00 S-AGR Roosevelt Park HB 1318 Creates a special assessment districts for 9:00 S-NATRES Ft Lincoln irrigation by GDCD SCR 4019 Recognize the benefits of tile drainage 10:30 H-AGR Peace Garden HCR 3026 Renegotiation of US Fish and Wildlife 10:30 S-NATRES Ft Lincoln wetland easements

NORTH DAKOTA WATER USERS ASSOCIATION 2011 LEGISLATIVE BILLS TRACKED (To Date) 1. APPROPRIATION BILLS HB 1004 An appropriation for defraying the expenses of the state department of health HB 1013 Relating to the oil and gas impact grant advisory committee, amend and reenact sec relating to the powers of the board of university and school lands, apportionment of oil and gas prod tax proceeds, and the duties of the energy development impact director HB 1020 An appropriation for defraying the expenses of the extension service, northern crops institute, upper great plains transportation institute, main research center, branch research centers, and agronomy seed farm SB 2017 An appropriation for defraying the expenses of the game and fish department SB 2020 An appropriation for defraying the expenses of the state water commission SB 2023 An appropriation for defraying the expenses of various state departments and institutions SB 2345 Established a feasibility study for energy beets and appropriates $5,000 from the general fund 2. WATER BILLS HB 1107 Definitions and informational and adjudicative hearings on water permit applications HB 1206 Western Area Water Supply Authority HB 1318 Creation of special assessment districts for water supply or irrigation districts by the Garrison Diversion Conservancy District HB 1335 Exemptions from enforcement actions for water-to-water transfers used to control flooding HB 1353 Relating to water development trust fund expenditures HB 1413 Removal of dangers in or on the bed of navigable waters HB 1459 Relating to subsurface drainage of water SB 2068 State Engineer s authority to execute contracts on behalf of the state water commission SB 2101 Fees to obtain and renew a water well contractor certificate and to water well monitoring certification SB 2234 Prohibits federal designation over land or water resources in North Dakota without state approval SB 2280 Relating to subsurface field tile leaching projects SB 2282 Relating to compensation of members of the state water commission SB 2283 Relating to maintenance assessments SB 2342 Community expansion fund and subsurface field tiling projects; for the agriculture partnership in assisting community expansion fund, sales tax on field tile, and drainage permits SB 2362 Requirements for easements, servitudes, and non-appurtenant restrictions SB 2369 Emergency services funding for snow removal, flooding and disaster relief HCR 3019 Urges the Corps of Engineers to forego any attempt to charge a fee to use water from Lake Sakakawea or Lake Oahe HCR 3026 A concurrent resolution urging Congress to require renegotiation of United States Fish and Wildlife Service wetlands easements HCR 3031 A concurrent resolution expressing the concern of the Legislative Assembly with the scope, justification, and substances of the Office of Surface Mining Reclamation and Enforcement's stream protection rule HCR 3039 Urging the United States Fish and Wildlife Service and the Federal Emergency Management Agency to exempt road grade raises necessitated by flooding from the requirement that the raise be offset by the acquisition of replacement wetlands HCR 3040 A concurrent resolution urging the United States Department of Agriculture to change prevented planting provisions in crop insurance policies for the purpose of providing compensation to producers affected by Devils Lake flooding SCR 4002 Urging Congress to return to the riparian landowner land controlled by the Army Corps of Engineers which is not necessary for authorized purposes

SCR 4019 A concurrent resolution recognizing the benefits of subsurface drain tile projects and urging the State Water Commission, State Engineer, State Department of Health, and water resource districts to recognize the beneficial attributes of and to promote drain tile projects in this state SCR 4022 A concurrent resolution directing the Legislative Management to study the feasibility and desirability of the sale of federal land to long-term lessees of the land in this state 3. OIL AND GAS TAX BILLS HB 1077 Elimination of the limitation on allocations that may be received by a city under the oil and gas gross production tax HB 1216 Provides that hydraulic fracturing is an acceptable recovery process in North Dakota HB 1268 Allocation between counties and the state general fund of oil and gas gross production tax revenues from production within the Fort Berthold Reservation HB 1451 Oil and gas research fund; relating to elimination of the permanent oil tax trust fund HB 1467 Oil extraction tax rates and exemptions extended SB 2047 Allocations of oil and gas gross production tax, federal flood control mineral leasing, and any other oil and gas-related revenues allocated to political subdivisions SB 2129 Establishes the 30 percent for the Legacy Fund out of the general fund SB 2140 Availability of oil and gas impact grant funds to park districts SB 2355 Establishes a mandatory study for recovery of flared gas HCR 3008 Delegate responsibility for the regulation of hydraulic fracturing to the states 4. OTHER BILLS HB 1018 Relating to the biofuel blender pump incentive program and the office of renewable energy and efficiency HB 1039 Technical corrections and improper, inaccurate, redundant, missing, or obsolete references HB 1142 Relating to agritourism liability HB 1145 Relating to political subdivision reports in lieu of audits HB 1162 Notice of emergency rulemaking and the administrative rules committee carrying over consideration of administrative rules HB 1225 County emergency fund levy limitation HB 1232 Obstructions on section line roads HB 1293 Property tax levy dollar increase limitations HB 1334 Sales tax exemption for membership dues HB 1368 Relating to legislative compensation HB 1384 Joint powers entities and commerce authorities HB 1426 Travel reimbursement rates for state employees and officers HB 1454 Relating to the taking of beaver SB 2009 Relating to the salary of the agriculture commissioner SB 2026 Bidding threshold for public improvement construction SB 2027 Specifying materials used in a public improvement SB 2053 Relating to extension and duties of the committee on tribal and state relations SB 2071 Calling up retired former members of the North Dakota National Guard to state active duty in times of disasters or emergencies SB 2085 Noxious weed list is amended and the penalty for selling noxious weeds, control and state of noxious weeds SB 2091 Liability of federal government employees assisting in a state disaster SB 2173 Registration as a professional engineer and additional qualifications SB 2186 Energy development and transmission committee SB 2204 Prohibits state funding of the northern plains national heritage area SB 2243 Regulation by the state board of registration for professional engineers and land surveyors HCR 3007 A study of eminent domain laws as they relate to pipeline siting HCR 3027 A concurrent resolution concerning the U.S. Department of Agriculture's Natural Resources

Conservation Service to continue the present cooperative agreement process at $10,000 funding HCR 3032 A concurrent resolution to study the needs of, economic values of, and methods to improve access roadways to recreational, tourist, and historical sites in North Dakota HCR 4008 A concurrent resolution urging the EPA to request an additional 12-month stay of mandate for implementation of the ruling in the matter of National Cotton Council of America v. EPA 5. FAILED/WITHDRAWN BILLS HB 1062 Legislative Compensation Commission relating to legislative compensation HB 1146 State engineer and the board of university and school lands concerning sovereign lands HB 1166 Indemnity agreements in oil and gas production contracts HB 1198 Allocation to counties of a portion of the state's share of oil and gas gross production tax revenues from production within the Fort Berthold Reservation HB 1220 Property owners whose signatures will bar proceeding with a special assessment project HB 1226 Provide a definition of navigable waters for all state agencies and purposes HB 1272 Limitation of property tax increases HB 1287 Approval of federal environmental protection agency rules HB 1303 Application of the extraction tax to natural gas and imposition of a separate and additional oil and gas infrastructure maintenance tax HB 1331 Restriction of the amount of an improvement which may be paid by levy of special assessments HB 1362 Relating to oil and gas impact loans from the legacy fund and to provide for repayment HB 1387 Relating to compensation for loss of agricultural production and income caused by oil and gas production HB 1408 Relating to state indemnification HB 1420 Relating to oil extraction tax rates and exemptions HB 1449 Requires political subdivisions to submit budget information for inclusion in the state budget database website HB 1458 Allocations of oil and gas gross production tax, federal flood control mineral leasing, and oil an gas production tax allocation SB 2033 Energy development impact office and grants SB 2045 Oil impact-related infrastructure development grants and oil and gas impact grant fund SB 2054 Authorize construction of a devils lake east end flood control structure SB 2092 Execution of easements to state-owned land SB 2131 SB 2144 SB 2200 SB 2209 SB 2230 SB 2274 SB 2297 SB 2299 SB 2325 SB 2337 SB 2340 Surface access fee for oil and gas exploration and production Authority of the industrial commission to provide matching grants for applied research at North Dakota higher ed institutions to increase the recovery rate or percentage share of oil recovered An appropriation to the department of transportation for a grant for the Cattail Bay road improvement project Relating to using the design-build procurement process for public improvement projects An appropriation to the department of emergency services to accept federal funding as a result of lake flooding (THIS FUNDING IS BEING INTRODUCED IN A DELAYED BILL SB 2369) Relating to determination of oil and gas surface damages An appropriation to the department of transportation for a county road project grant Allocates $10 million from the Resources Trust Fund to the Energy Revolving Loan Fund An appropriation to the department of transportation for a county and township road reconstruction program Governor's initiative for a lasting harvest An appropriation for emergency snow removal funds to counties, cities, and townships (THIS FUNDING IS BEING INTRODUCED IN A DELAYED BILL SB 2369)

SB 2343 SB 2348 SB 2350 SB 2353 Transfers the permanent oil tax trust fund to the legacy fund Agreements with the Three Affiliated Tribes for the taxation and regulation of oil and gas exploration and production within the boundaries of the Fort Berthold Indian Reservation Establish an emergency disaster relief grant program State and political subdivision consultation and coordination with Indian tribal governments