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Conference committee rejects amendment to double state pipeline capacity commitment

April 30, 2025 | Senate, Legislative, North Dakota


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Conference committee rejects amendment to double state pipeline capacity commitment
The conference committee on the budget and related bills voted down an amendment that would have doubled the state's annual capacity-purchase commitment for a proposed natural-gas pipeline intended to carry gas from western production areas to the Fargo region.

Representative Deb Bosch, who introduced the proposal, told the committee the goal was to "increase the capacity program to allow us to get the pipeline from the West all the way out to the Fargo area" and suggested a larger capacity commitment would help move the project forward within five years. The amendment would have increased the state's standing purchase authorization from $30 million per year to $60 million per year, effectively raising a 10-year exposure from $300 million to $600 million if all capacity was ultimately purchased.

Supporters said the larger commitment would help ensure the pipeline would be sized to carry gas far enough east to serve additional customers and industry, including potential users in Jamestown and Fargo. Representative Bosch said the proposal included an amendment to move the effective date to Jan. 1, 2025, so the state would not immediately need bank backstops that had previously been discussed.

Opponents warned the change could expose the state to a much larger future financial obligation. "I just think we're playing too much with the market here," said Senator Beckettall, who said the original $30 million annual commitment reflected market realities when it was set and should remain in place. Another senator described the proposed increase as effectively cosigning a larger credit line and said it would create potential state exposure to $60 million a year for 10 years.

Representative Munson moved the amendment. The motion was seconded. The clerk called the roll; the motion failed on a 3-3 split with Representatives Pyle, Bosch and Munson recorded as voting yes and Chairman Shively and two senators recorded as voting no.

Committee members agreed to continue discussion on the pipeline later in the day and to proceed through the bill's remaining sections in the meantime.

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Scribe from Workplace AI
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