Industrial Commission commits $45M to enhanced oil recovery projects; lawmakers press for public reporting

Jordan Kaniyanian, deputy director in the Industrial Commission’s administration office, briefed the Budget Section on the enhanced oil recovery (EOR) grant round that followed the last legislative session.

The short version: the commission used a combination of the $25,000,000 appropriation from the recent session plus available oil-and-gas research fund balances to allocate about $45,100,000 across six projects. Kaniyanian said eligible projects had to demonstrate commercial viability in the Bakken, industry-led execution, a 50/50 minimum cost share and proposed use of CO2, natural gas liquids, surfactants or other injectants to enhance recovery.

Lawmakers’ concern: public access to results and contract oversight. “If our dollars are in there, we need to know everything they find,” the chair said, pressing for transparency where public funds are used. Kaniyanian responded that the contracts require reimbursement-based payments, regular status reports that are public records and final comprehensive reports that will also be public.

DOE contingency and award structure: Kaniyanian said much of the total allocation was made contingent on federal Department of Energy (DOE) money expected to be awarded; if expected federal funds do not arrive, each grant award would be reduced by about 5 percent to preserve some uncommitted funds for non-EOR projects. Committee members asked whether project findings might remain proprietary; Kaniyanian and other members said initial confidentiality claims sometimes occur in industry research but that final reports and the contracting structure will require public status and final reports as a condition of reimbursement.

Why it matters: EOR projects aim to test techniques that could increase recoverable oil in the Bakken. Because state dollars were used, lawmakers sought assurances that results and data will be reported so the public—rather than only awarding companies—benefits from lessons learned.

Next steps: The projects are under contract and reimbursement rules apply. The committee signaled it will monitor reporting and may ask for further detail if DOE matching funds or other changes affect award amounts.