North Dakota commission approves next steps in natural gas pipeline project

The North Dakota Public Service Commission (PSC) recently approved two steps needed for Montana Dakota Utilities (MDU) to move forward with constructing a pipeline project that will begin in Milnor, North Dakota and continue to Gwinner.

The project would provide natural gas service to Ransom and Sargent counties, including service to Clark Equipment and Company’s Bobcat manufacturing facility in Gwinner, Bobcat’s largest facility in the
United States. The project will also have the capacity to expand to other potential customers along the proposed route.

The 12-inch pipeline would run for 21 miles and tap into the Alliance Pipeline northeast of Milnor.

“The proposed infrastructure project is an excellent example of two prominent companies operating in North Dakota, working collaboratively together to further support industry and jobs within our state’s borders,” Commissioner Brian Kroshus said.

The certificate issued by the commission takes into consideration the need for the service, the utility’s ability to provide the service, the effect of the project on other utilities and whether the proposed service is sufficient. Currently, no other utilities offer natural gas service in the area.

The approved service agreement is for 15 years and contains provisions to allow additional customers to be served by the natural gas line. MDU filed a request to determine if the pipeline is under the commission’s siting jurisdiction, which would necessitate a permit for the location of the pipeline.

The project will cost an estimated $13.8 million. Bobcat will cover the cost of construction and the project will result in increased revenues for MDU. It will not cause a rate increase for other MDU customers.