AGENDA Industrial Commission of North Dakota Tuesday, July 27, 2021 North Dakota Mill– 9:05 a.m. Governor’s Conference Room – 2:15 p.m.

We have a responsibility to you and to each other. We are following the North Dakota Department of Health guidelines to stay healthy and slow the spread of COVID-19; Please attend the Bismarck portion of the meeting remotely through Microsoft Teams at this link:

Join live event (Afternoon meeting only)

I. North Dakota Mill - Vance Taylor, Cathy Dub A. Tour of the Mill 1. New packer installation 2. New Truck Scale and Elevator Conveyors 3. New H and I Mills Installation 4. Tour ends and the Commission meets in the North Dakota Mill Conference Room.

(approximately 10:20 a.m.) B. Presentation of 4th Quarter and Fiscal Year End Report (Attachment 1) C. Report on Year End Transfers (Attachment 2) D. Consideration of FY 2022 Gain Share Plan (Attachment 3) E. Report on FY2021 Capital Expenditures (Attachment 4) F. Consideration of FY 2022 Capital Plan (Attachment 5)

*******Consideration of a motion to close the meeting pursuant to N.D.C.C. §44-04-18.4 to discuss commercial information including the North Dakota Mill’s marketing strategies and sales plan and pursuant to N.D.C.C. §44-04-19.1 to discuss strategy and instructions regarding upcoming union contract labor negotiations. *******

(approximately 10:50 a.m.) G. Discussion of North Dakota Mill’s marketing strategies and sales plan (Attachment 6) H. Discussion of strategy and instructions regarding upcoming union contract labor negotiations

*********** Meeting returns to open session*******

(approximately 11:20 a.m.) I. Consideration of FY22 North Dakota Mill Strategic Plan (Attachment 7) J. Other North Dakota Mill business (approximately 11:30 a.m.) II. Industrial Commission tours University of North Dakota College of Engineering & Mines, Drilling & Completion Lab/Research Facility, 1822 Mill Road (Enter through Gate No. 2) Dr. Vamegh Rasouli, Department of Petroleum Engineering Chair, and Harry Feilen, Director of the Drilling and Completion Lab, will be giving the tour.

******Industrial Commission meeting recesses and the Commission travels to Bismarck******

(approximately 2:15 p.m.) Industrial Commission Agenda Page 2 July 27, 2021

III. Fire and Tornado Reinsurance Contract Business – Brennan Quintus, North Dakota Insurance Reserve Fund A. Consideration of a recommendation from the Insurance Commissioner Jon Godfread regarding bids for the Excess Loss Reinsurance and Equipment Breakdown Coverage – Fire and Tornado Fund (Attachment 8)

(approximately 2:25 p.m.) IV. North Dakota Outdoor Heritage Fund business – Randy Bina, Andrea Pfennig A. Report on election of the Outdoor Heritage Fund Advisory Board Chairman and Vice Chairman B. Presentation of Outdoor Heritage Fund Financial Report (Attachment 9) – Karlene Fine C. Presentation of all Grant Round 18 Applications List totaling $7,244,688 (Attach. 10) and Consideration of the OHF Advisory Board recommendations for funding of the following Grant Round 18 applications in the total amount of $5,803,692 (Attachment 11) 1. (18-1) Audubon Dakota: Urban Woods and Prairies Initiative Expansion Phase II, $591,200 (Attachment 12) 2. (18-3) Bowman Parks and Recreation: Southwest Shooting Club Range, $69,115 (Attach. 13) 3. (18-4) Center Park Board: Center Park Board Lehmkuhl Park New Equipment, $10,000 (Attachment 14) 4. (18-6) Dunn County Park Board: Lake Ilo Natural Playscape, $6,471 (Attachment 15) 5. (18-7) Enderlin Park Board: Maple River Bank Stabilization Project – Enderlin, $55,250 (Attachment 16) 6. (18-8) Glen Ullin Park District: Bringing Fish to Glen Ullin, 21,605 (Attachment 17) 7. (18-11) Mountrail County: Clear Lake Park – Grain Bin Gazebos and Tree Planting Project $25,370 (Attachment 18) 8. (18-12) NDSU-North Dakota Forest Service: North Dakota Statewide Windbreak Renovation Initiative 2.0 $300,000 (Attachment 19) 9. (18-15) Barnes County Park Board: Monson Park and Trail $42,525 (Attachment 20) 10. (18-16) Barnes County Park Board: Sheyenne River Water Trail $170,000 (Attachment 21) 11. (18-18) Little Missouri Grazing Association: Little Missouri Grazing Association – Deep Creek Watershed Conservation Project $196,356 (Attachment 22) 12. (18-19) Medora Grazing Association: Medora Grazing Association Water well development program $245,800 (Attachment 23) 13. (18-20) ND Conservation District Employees Association: Statewide Tree Planting Initiative $2,550,000 (Attachment 24) 14. (18-21) North Dakota Natural Resources Trust: Grazing Resiliency in the Bakken (GRB) $1,270,000 (Attachment 25) 15. (18-22) North Dakota Natural Resources Trust: Wildlife and Livestock Dams – Wetlands Creation, Restoration and Enhancement $240,000 (Attachment 26) 16. (18-23) State Historical Society of North Dakota: Writing Rock State Historic Site Playground Facilities Update $10,000 (Attachment 27) D. Consideration of OHF Advisory Board Grant Round Application Deadline Dates for the 2021-2023 biennium. (Attachment 28) E. Other Outdoor Heritage Fund business

(approximately 2:45 p.m.) Industrial Commission Agenda Page 3 July 27, 2021

V. Renewable Energy Program – Maria Effertz Hanson/Andrea Pfennig A. Presentation of the Renewable Energy Program Financial Report (Attachment 29) – Karlene Fine B. Consideration of the Renewable Energy Council Grant Round 47 funding recommendations: 1. R-047-A Seismic Survey to Advance Potential for CO2 Storage in Eastern North Dakota: Submitted by Midwest AgEnergy Group; Total Project Costs: $629,280; Amount Recommended: $324,640 (Attachment 30) 2. R-047-C – Project Phoenix; Submitted by: Incoho Consulting Group & Newlight Technology; Total Project Costs: $392,500; Amount Recommended $196,250 (Attach. 31) C. Other Renewable Energy Program business

(approximately 2:55 p.m.) VI. North Dakota Housing Finance Agency Business – Dave Flohr, Jennifer Henderson A. Consideration of the following Housing Finance Agency Advisory Board recommendations: 1. Approval of the 2021 Housing Incentive Fund Allocation Plan (Attachment 32) 2. Removal of the Income Limits and permit refinancing options under the North Dakota Roots Program (Attachment 33) B. Consideration of the Government National Mortgage Association Certificate of Authorized Signatures (Attachment 34) C. Report on the Multifamily Tax-Exempt Loan Issuance – Elliott Place Four, Fargo (Attachment 35) D. Report on the Multifamily Tax-Exempt Loan Issuance – Souris Heights, Minot (Attachment 36) E. Other North Dakota Housing Finance Agency business

(approximately 3:15 p.m.) VII. North Dakota Public Finance Authority Business – DeAnn Ament A. Presentation of the ND Public Finance Authority Independent 2020 Audit (Attach. 37) Mindy Piatz, Brady Martz B. Presentation of the ND Public Finance Authority 2020 Annual Report (Attachment 38) C. Consideration of the following Clean Water State Revolving Fund loan applications: 1. City of Fargo – Construction - $4,361,000 (Attachment 39) 2. City of New Salem - $1,042,000 (Attachment 40) D. Consideration of the following Drinking Water State Revolving Fund loan applications: 1. East Central Regional Water District – $1,372,000 (Attachment 41) 2. City of Enderlin - $440,000 loan increase (from $760,000 to $1,200,000) (Attach. 42) 3. City of Jamestown - $1,808,000 (Attachment 43) 4. City of Horace - $2,740,000 (Attachment 44) 5. City of New Salem- $1,042,000 (Attachment 45) E. Presentation of PFA Advisory Committee State Revolving Fund loan approvals for the following entities (Attachment 46) Industrial Commission Agenda Page 4 July 27, 2021

1. City of Cavalier (Clean Water SRF Loan) – $450,000 ($337,500 forgiveness – net loan $112,500) 2. City of Fargo – Engineering (Clean Water SRF Loan) – $259,000 3. City of Coleharbor Drinking Water SRF Loan - $700,000 ($480,000 forgiveness – net loan $220,000) F. Consideration of Amendments to the PFA Policy P-9 - Investments (Attachment 47) G. Other North Dakota Public Finance Authority business

(approximately 3:40 p.m.) VIII. Bank of North Dakota Business – Todd Steinwand A. Consideration of the Bank of North Dakota Advisory Board recommendation to approve the BND Livestock Rebuilder Loan Program (Attach. 48) – Craig Hanson B. Consideration of the Bank of North Dakota Advisory Board recommendation to approve the BND Livestock Drought Loan Program (Attachment 49) – Craig Hanson C. Consideration of the Bank of North Dakota Advisory Board recommendation to approve amendments to the BND General Loan Policy (Attachment 50) – Kirby Evanger D. Consideration of the Bank of North Dakota Advisory Board recommendation to approve amendments to the Criminal History Record and Employment Credit Check Policy (Attachment 51) – Todd Steinwand E. Presentation of College SAVE Audit Report–December 31, 2020 (Attach. 52) Tim Porter F. Presentation of the Second Quarter 2021 Performance Highlights (Attachment 53) G. Presentation of Bank of North Dakota Advisory Board May 20 and June 1, 2021 nonconfidential meeting minutes. (Attachment 54) H. Other Bank of North Dakota business

(approximately 4:25 p.m.) IX. Oil and Gas Research Program Business – Karlene Fine A. Consideration of Oil and Gas Research Council recommended contingency for the “Field Study to Determine the Feasibility of Developing Salt Caverns for Hydrocarbon Storage in Western North Dakota” (Attachment 55) B. Consideration of a memorandum regarding the contract for the “Unitized Legacy Oil Fields; Prototypes for Revitalizing Conventional Oil Fields in North Dakota” project previously approved by the Commission. (Attachment 56) C. Other Oil and Gas Research Program business (approximately 4:30 p.m.) X. Clean Sustainable Energy Authority – Karlene Fine/Andrea Pfennig A. Report on the naming of appointees to the Clean Sustainable Energy Authority (Attachment 57) B. Other Clean Sustainable Energy Authority business

(approximately 4:35 p.m.) XI. Administrative Business – Karlene Fine A. Consideration of June 9, 2021, non-confidential meeting minutes (Attach. 58) Industrial Commission Agenda Page 5 July 27, 2021

B. Consideration of the Executive Director’s recommendation regarding compensation (Attachment 59) C. Other Industrial Commission Administrative business

(approximately 4:40 p.m.) XII. North Dakota Department of Mineral Resources Business – Lynn Helms A. Consideration of orders for the following cases: (Attachment 60) Case 28145, Order 31456 – determination of risk penalty Case 28645, Order 31187 – establishment of base or lease-line spacing units Case 28827, Order 31375 – termination of unit application/determination of spacing Case 28830, Order 31380 – approval of injection well for EOR purposes Case 28835, Order 31385 – confiscation of well, equipment and salable oil Case 28810, Order 31358 – determination of need for bond and bonding amount B. Presentation of Oil and Gas Division Quarterly Report – Bruce Hicks (Attachment 61) C. Other North Dakota Department of Mineral Resources business

*****Consideration of a motion to close the meeting pursuant to • N.D.C.C. Section 44-04-19.1 and 44-04-19.2 for the purpose of attorney consultation • N.D.C.C. §54-63-02 and 44-04-19.2(1) to discuss the item listed below under Renewable Energy Program Confidential Business *****

******Meeting closed pursuant to N.D.C.C. 6-09-35 to discuss items listed below on the agenda under Bank of North Dakota Confidential Business********

(approximately 5:20 p.m.) D. Case 28732 – Cyprus Opportunity Energy, Inc vs. Challenger Point Energy, LLC E. Case No. 08-2021-CV-00026 – Armstrong vs. North Dakota Industrial Commission F. Case No. 05-2019-CV-00085 - Northwest Landowners Association vs. State of North Dakota, et al. G. State of North Dakota vs. U.S. Department of Interior, Bureau of Land Management, et al.

XIII. Renewable Energy Program Confidential Business – Andrea Pfennig A. Consideration of a request for confidentiality (Attachment 62)

(approximately 5:35 p.m.) XIV. Bank of North Dakota Confidential Business – Todd Steinwand, Kirby Evanger, Craig Hanson A. Presentation of the following quarterly reports: 1. Non-Accrual Loans Quarterly Recap/Detail (Attachment 63) 2. Problem Loans – Adversely Classified Quarterly Recap (Attachment 64) 3. Loan Charge-Offs and Recoveries Y.T.D. 06/30/2021 (Attachment 65) 4. Off-Balance Sheet Risk Quarterly Recap/Detail (Attachment 66) Industrial Commission Agenda Page 6 July 27, 2021

B. Presentation of Bank of North Dakota Advisory Board May 20, 2021 confidential meeting minutes. (Attachment 67) C. Other Bank of North Dakota confidential (as defined under N.D.C.C. 6-09-35) business

***************Meeting returns to open session******************

(approximately 6:15 p.m.) XV. Other Industrial Commission Business/Adjournment

Bold items require Industrial Commission action Any person who requires an auxiliary aid or service must contact or notify the Industrial Commission Office at 328-3722 at least three (3) working days prior to the scheduled meeting.