Thank you, Mr. Speaker. Shale oil development in the Bakken area has placed immediate and unrelenting strain on all types of infrastructure. Transportation infrastructure is a primary concern. There are currently 9,322

producing wells in North Dakota, and the state expects that an additional 2,000 will be drilled this year. The average drilling rig requires at least 2,000 truckloads of materials and supplies, which has an equivalent impact of 25,000 light vehicles on roadways. A single loaded truck raises approximately 100 pounds of dust per mile on gravel roads, coating vegetation and reducing air quality and visibility. The state has enforced seasonal load restrictions, but allocates millions annually to new road infrastructure, maintenance and dust control to meet industry-related traffic demands.

The increased number of trucks has resulted in hazardous driving conditions and serious accidents. Emergency services continue to be delivered largely by local volunteers, resulting in post-traumatic stress disorders and burnout among their ranks. Presenters in North Dakota strongly recommended identifying main arteries, bolstering existing corridors and working with industry to plan service roads and access needs.

Two exploratory wells will be drilled in the Northwest Territories this season. The impacts on roads highlight the need for responsive planning and maintenance for our comparatively fragile seasonal and all-weather roads.

The committee heard that although it requires more time to develop and incurs greater capital costs, pipeline infrastructure can reduce the amount of truck traffic and mitigate the hazards associated with transporting large volumes of water, wastewater and oil via road and rail. Natural gas pipelines can also reduce the amount of flaring and associated greenhouse gas emissions. It is estimated that a billion dollars’ worth of natural gas is flared annually from the Bakken shale.

Municipal infrastructure is another area that requires well-thought-out planning. State of North Dakota officials highlighted significant demands and need for preparation in the areas of:

zoning and land use planning;

water and sewer services;

electrical

supply;

road

infrastructure;

airports;

housing;

public safety services, including emergency

service providers and law enforcement;

schools;

hospitals;

and

recreational

facilities.

The committee encourages Sahtu leadership and Government of the Northwest Territories

departments to work with industry to determine community needs and plan accordingly.