North Dakota to use coronavirus aid for fracking, education

26/10/2020 11:57

        North Dakota officials voted to repurpose $221 million in federal coronavirus aid to various state agencies, including a $16-million grant to oil companies in support of the fracking process.
        
        The North Dakota Emergency Commission approved the plan Friday, the Bismarck Tribune reported.
        
        The money comes from the $1.25 billion awarded to the state through the Coronavirus Relief Fund established by the federal CARES Act.
        
        The Oil and Gas Division plans to award the $16-million grant to oil companies for acquiring and disposing of water used in the hydraulic fracturing process, in which water, sand and chemicals are injected underground to crack rock and release oil.
        
        State Mineral Resources Director Lynn Helms said the grant would help create jobs and help stabilize oil production by leading to an increase in well drilling. Officials said higher oil production would stabilize the state's revenue.