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Due to the oil price and drilling decline, North Dakota communities impacted by oil and gas development will not be receiving financial assistance from the state. (Image: A.G. McQuillan via Flickr)
Due to the oil price and drilling decline, North Dakota communities impacted by oil and gas development will not be receiving financial assistance from the state. (Image: A.G. McQuillan via Flickr)

Fund suspended for communities affected by oil development

BISMARCK, N.D. (AP) — A program aimed at helping North Dakota communities deal with the effects of energy development has been suspended due to slumping oil activity.

North Dakota’s Board of University and School Lands also voted Thursday to put on hold millions of dollars of projects that have receive grants but work hasn’t started.

Trust Lands Commissioner Lance Gaebe (GAY’-bee) says the Oil and Gas Impact Grant Fund earlier was projected to collect $140 million for the current two-year budget cycle. He says it’s only projected to collect $28.6 million now due to low oil prices and a drop in oil production tax revenues.

He says the board has already obligated about $42 million in projects so the fund is “upside down.”

In related news, Williston is still open for business despite oil price downturn.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

One comment

  1. Lance,

    How upside down is the fund once the employees pay back the reimbursements they fraudulently filed?

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