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505 Minutes of the Meeting of the Board of University and School Lands January 04, 2012 The January 4, 2012 meeting of the Board of University and School Lands was called to order in the Governor’s Conference Room at 9:00 AM by Chairman Jack Dalrymple. Members Present: Jack Dalrymple Governor Alvin A. Jaeger Secretary of State Kelly Schmidt State Treasurer Wayne G. Sanstead Superintendent of Public Instruction Wayne Stenehjem Attorney General Members Absent: None Land Department Personnel: Lance D. Gaebe Land Commissioner Jeff Engleson Director, Investment Division Drew Combs Director, Minerals Management Division Gerald Fisher Assistant Director, Energy Infrastructure & Impact Office Linda Fisher Unclaimed Property Administrator Diane Nelson Minerals Title Specialist Pam Rennich Director, Revenue Compliance Division Judith F. Schell Administrative Assistant Others in Attendance: Teri Finneman Fargo Forum Tom Nehring North Dakota Department of Health Jannelle Combs Leonard, Street & Deinard John Morrison Crowley Fleck Law Major General Murray G. Sagsveen State Disaster Recovery Coordinator Ron Ness North Dakota Petroleum Council APPROVAL OF MINUTES A motion to approve the minutes of the December 8, 2011 meeting was made by Kelly Schmidt and seconded by Wayne Sanstead. Motion carried. Action Record Aye Nay Absent Secretary Jaeger X Superintendent Sanstead X Treasurer Schmidt X Attorney General Stenehjem X Governor Dalrymple X ENERGY INFRASTRUCTURE AND IMPACT DIVISION Flood-Impacted Political Subdivision Infrastructure Development Grant Program. The November 2011 Special Legislative Session passed SB 2371 which, in part authorized a $30 (01/12) 506 million appropriation to the Commissioner and flood infrastructure grant responsibilities to the Land Board and the Energy Impact Office director. The “Flood-Impacted Political Subdivision Infrastructure Development Grant Program” legislation directs the Energy Infrastructure and Impact Office director to: A. Develop a plan for providing infrastructure development grants to eligible political subdivisions and establish procedures and forms to be used for applying for funds. B. Receive and review grant applications. C. Make recommendations to the board of university and school lands on grants to eligible political subdivisions pursuant to this section. The legislation authorizes the Board to award and distribute 50% cost-share grants to eligible political subdivisions based on identified needs. Eligible entities are political subdivision located within the nine FEMA Individual Assistance Disaster declared counties as result of the 2011 flood event. The following is a list of the counties: Burleigh Morton Ward McHenry Renville Ramsey Benson Richland Barnes The types of projects that may be funded include: A. Develop new community infrastructure, related to the displacement of residents due to flooding. B. Evaluate the damage to community-owned infrastructure. C. Restore or repair community-owned infrastructure damage. D. Expand landfill capacity or reimburse flood-related waste disposal costs. E. Raise roads or develop flood control structures. F. Acquire property needed for floodway development or levy construction. G. Acquire homes damaged by levy construction. H. Provide reimbursement for other flood-related expenses. SB 2371 states the legislative intent of the Flood Infrastructure Grants are to be used by grantees to address needs not funded by other state or federal response or insurance coverage. This could include Community Development Block Grants, Hazard Mitigation funds, State Water Commission resources or the Rebuilders Loan Program and FEMA Individual or Public Assistance. The Department has consulted with Major General Murray Sagsveen, the State Disaster Recovery Coordinator and is gathering information from the Office of the Adjutant General, the State Water Commission, the Department of Transportation and the Department of Commerce on the status of state and federal recovery programs. Duane DeKrey has been hired on a temporary basis to assist in developing procedures and guidelines for the program. Mr. DeKrey is meeting with local community leaders and emergency management officials regarding unmet infrastructure needs not repaired or fulfilled by other federal or state response programs. The Department is gathering information on the other available infrastructure funding to determine the needs to be filled with this program funding. Meetings are scheduled in each of the eligible counties to describe the funding and authorization to local officials and to gather feedback on possible projects. The meeting schedule is as follows: 01/12) 507 . January 3, Richland County, Basement of the Court House, Wahpeton 1:00pm . January 4, Morton County, Basement of the Court House, Mandan 11:00am . January 5, Ramsey County, Basement of the Court House, Devils Lake 10:00am . January 5, McHenry County, Court House, Towner 2:00pm . January 6, Benson County, Highway Shop, Minnewaukan 10:30am . January 9, Barnes County, Highway Shop, Valley City, 9:30am . January 10, Renville County, Court House upstairs, Mohall, 1:00pm . January 10, Ward County, Court House, Basement, Minot 4:00pm . January,12, Burleigh County, City County Building , Bismarck 1:30pm It is anticipated that applications may exceed the $30 million available. The Commissioner/ Energy Impact Director suggest that a way of determining grant dollars awarded to each of the nine eligible counties could be determined by the relative damage on a percentage basis that each county sustained. The Energy Impact Office could inform each county of its allocation and assist in coordinating with the political subdivisions within a county to develop a local consensus of the prioritized needs for the prorated funds. A draft of potential grant guidelines was distributed. Program focus would give priority to needs not eligible for other federal or state programs nor other needs supported by other provisions of SB 2371. The Board instructed the Energy Office Director to prepare grant program guidelines for applicants. The director was also directed to return to the Board with recommendations for funding targets for each of the eligible counties based upon relative flood damage and needs. Energy Impact Grant Program, Winter Quarter-Emergency Services and Response. The focus for the January/February/March energy impact grant round is emergency services and response services impacted by oil and gas development. To assist in developing grant guideline recommendations, meetings were held with staff from the North Dakota Department of Health - Division of Emergency Medical Services and Trauma (DEMST); the North Dakota EMS Association, the North Dakota Firefighter’s Association; members of Billings County Emergency Management Services and several legislators. Information was also obtained from a study commissioned by the ND Department of Health titled “The Impact of Oil and Energy Development on Out-Of-Hospital Emergency Medical Services.” This study focused specifically on Dunn, Williams, Mountrail, and McKenzie Counties. The report highlighted a common message of declining and weary volunteer force, facing a swelling demand for emergency services. Grant guidelines for the January/February/March 2012 grant round have been reviewed by the Energy Impact Advisory Committee. The following is a summary of the proposed guidelines: • The project should target to improve the readiness, quality and responsiveness of emergency services and response teams being impacted from oil and gas development. • Priority for one-time awards for assets or training with long term benefits. • Projects submitted with mutual benefit to multiple service providers in a region or multiple county area will be given priority consideration. • Funds may be provided for projects o seeking to improve equipment, facilities, and safety o planning efforts to develop and establish joint county/regional joint powers or formalized response agreements o training for oil rig response o leadership development training o and improving emergency response infrastructure (01/12) 508 • Projects necessitating recurring funding will receive lower priority consideration. • Many emergency response providers are private or organized under or outside a political subdivision. Since the statutory authority for the grant program limits awards to political subdivisions, applicants may need to have a city or county apply on their behalf. A weighted score system, including guidelines for Objective, Public Safety, Financial Need, Result of Energy Activity, Project Readiness, Contributer to Long Term Economic Activity and Complete Application was presented to the Board. $4 million remains available during the current fiscal year fund for quarterly awards; $2 million is suggested for this grant round. Future Funding On February 29, 2012, confirmation of the contingent appropriation of $30 million from the November 2011 special legislative session for the oil and gas impact fund. The DEMST within the Department of Health is actively preparing grant requirements for a grant program that they administer focused on Emergency Medical Service (EMS) operations in North Dakota. They are utilizing a working subcommittee from their EMS Advisory Committee to define “access critical” ambulance service needs. A collaborative approach with the DEMST, leveraging this subcommittee and the Health Department’s understanding of EMS needs in the oil and gas producing counties, is suggested. Through this collaboration, awards
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