North Dakota 'man camps' battle pending ban in oil capital

By Ernest Scheyder
WILLISTON, N.D., Nov 23 (Reuters) - Providers of temporary
housing for North Dakota's oilfield workers are fighting a plan
by the state's energy capital to evict their "man camps,"
fearing it could set an example for others and add to the
sector's woes caused by a global commodity slump.
Earlier this month, the Williston City Commission voted 3-2
in favor of an ordinance that would deny "man camps" occupancy
permit extensions beyond July 2016.
Should the ordinance pass in a final vote on Nov. 24, which
appears likely, it would mark the first time since the U.S.
shale boom began in 2008 that a community has evicted a "man
camp," though other communities in Texas and North Dakota have
blocked their arrival or expansion.
Williston leaders say it is time for oilfield workers to
plant permanent roots or use existing hotels for extended stays
and point out to abundant new permanent housing in this city
with an estimated population of about 31,000.
"The man camp industry should understand we allowed them to
come here on a temporary basis," said Howard Klug, Williston's
mayor, who favors permanent housing that fosters a more
family-friendly feel and also generates higher tax revenues.

Shoring up their defenses, temporary housing companies have
warned that some 200 of their employees could be laid off in the
area, a step that would further hurt a local economy sagging due
to falling oil prices CLc1 . They also hinted that their
donations to churches, schools and other community groups could
dry up.

NOT PRETTY
"We want to be part of this area, no matter how desperately
some people want us to leave," Travis Kelly, regional vice
president for Target Logistics, which operates Williston's
largest temporary housing facility with 1,038 beds, told
Reuters.
"It's not a pretty industry in the public's mind, but we
have demonstrated we are great members of this community."
While the term "man camp" conjures up images of rootless
single men carousing late into the night, the facilities are
heavily patrolled by security guards, do not allow alcohol or
overnight guests and feel as Spartan as hospital rooms.
With mostly single-occupancy rooms, the facilities also
house female workers.
Made of interconnected units that resemble a cross between
shipping containers and mobile homes, the facilities have helped
house the influx of workers during the shale drilling boom that
made North Dakota the No. 2 U.S. oil state.
Yet the oil price slide from $100 a barrel and more in 2014
to about $40 now, has hit both the state's economy and "man
camp" companies.
Target Logistics says its Williston facility has only been
occupied in 60 to 70 percent in the past month, reflecting a
broader trend in the oil and gas industry, which has been hit by
layoffs to the tune of more than 230,000 around the world,
according to staffing firm Swift Worldwide Resources.

There are roughly 3,000 man camp beds today in Williston and
the city charges the facilities annual fees of $400 per bed,
rather than property or lodging taxes. Williston stands to lose
out on at least $1.2 million annually should the ordinance pass.
Officials are betting that by closing the man camps,
Williston's hotels - now about half-empty - will fill up and
boost the lodging tax revenue.
Operators of Williston's four man camps have lobbied the
city's five commissioners at public hearings and letters
published in the local newspaper.
They warn that by shuttering their facilities the city would
lose not only jobs but also those who have made significant
contributions to the local community.
For example, Target Logistics, a privately held company,
donated $17,000 four years ago to create the police department's
K9 dog unit alongside other donation that Target executives told
Reuters will not be repeated should the ordinance pass.
Privately held Black Gold Oilfield Services LLC declined to
comment on the vote. Oilfield service provider Halliburton (N:HAL) Co
HAL.N , which runs a Williston camp for some employees, said
that form of lodging was crucial.
"The company still relies on temporary housing for rotating
crews that are needed to support our customers' activity," said
Halliburton spokeswoman Susie McMichael.
Man camp operators also point out that even as Williston
rents have come down by a third in the past 12 months and many
apartments built during the drilling boom now stand empty, they
are not for everyone.
With layoffs still looming over the state's oil patch, some
oil workers are reluctant to sign long-term leases.
"All beds are not created equal," said Peter Eberle of
Reliant Asset Management, which operates a 228-bed Williston
facility. "We provide a service for a special kind of worker."