Wage survey shows North Dakota’s three coal counties rank among the top six

(8/19/08)

Three North Dakota coal counties – Oliver, Mercer and McLean – ranked among the state’s top six for highest annual average wages for 2007. Oliver was first with $48,931. Mercer ranked third with $46,776 and McLean came in sixth with $37,107 – all above the statewide average of $33,086.

Oliver County, which is home to BNI Coal’s Center Mine and Minnkota Power Cooperative’s Milton R. Young Station, has ranked at the top of the North Dakota wage surveys since at least 1993, according to Job Service North Dakota. However, Mercer County, which was second in the 2006 average wage survey, slipped to third place as Slope County, a sparsely populated county affected by oil economics, rose from fourth place to second place with average wages of $48,644.

“The 2007 data from Job Service shows the influence energy is having on North Dakota’s economy,” said Steve Van Dyke, director of communications for Partners for Affordable Energy, a coalition that supports coal-based electricity. “Joining the three coal counties among the top six were Slope and Williams – both affected by oil exploration and production activities – along with Sargent, which normally ranks among the top half dozen.”

According to a 2008 economic study of the lignite industry conducted by North Dakota State University economist Larry Leistritz, wages paid in the state’s coal mining and electric production sectors are among the highest of any in North Dakota. In 2006, the average wage for coal mining exceeded $64,000 while the average wage for electrical production averaged $68,000. Buoyed by high salary jobs in the energy industries, the average wage in North Dakota increased from $31,316 in 2006 to $33,086 in 2007.

Oliver, Mercer and McLean Counties are collectively known as “Coal Country” because they are home to the state’s four coal mines and six of the state’s seven power plants. Two of the state’s four mines – The Coteau Properties Company’s Freedom Mine and Dakota Westmoreland’s Beulah Mine – are in Mercer County. The Falkirk Mine is in McLean County and BNI Coal’s Center Mine is in Oliver County.

North Dakota’s lignite industry involves mining about 30 million tons of lignite annually. Nearly 80 percent of the total is used to generate electricity, 13 percent is used to generate synthetic natural gas, and 7 percent is used to produce fertilizer products. About 24,000 people are directly or indirectly employed by the lignite industry, which accounts for $2.8 billion in total business activity. The lignite and oil industries accounted for more than 16 percent of the state’s total economic base in 2006, according to the NDSU economic study.

“The investments in the lignite industry continue to grow,” Van Dyke said. “Over the next three to four years, utilities with electric generation facilities in the state are expected to invest another $1.6 billion on environmental control technologies to ensure compliance with tougher new federal air compliance standards.”