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May 2013
Ready for the RushTourism officials anticipate busy summer seasonpg. 28
ALSOPlaying Up Ag
Agritourism promotes region's rural aspects
pg. 34
Fly the Private SkiesIncreasing air travel demands means new
business for aviation service providers pg. 38
North Dakota. Doing Business Better. With support from North Dakota’s entrepreneurial programs, StopSensor makes semi-trailer unloading easier, reducing waste and risk of injury for farmers and other businesses. Learn how North Dakota is doing business better at www.NDBusiness.com
4 Prairie Business Magazine May 2013
|INSIDE|May 2013 VOL 14 ISSUE 5
FEATURES DEPARTMENTS6 Editor’s Note
BY KRIS BEVILL
Changing with the season
8 Business Advice BY MATTHEW D. MOHR
Learners lead
8 Unmanned Aircraft SystemsBY RYAN AASHEIM
UAS Action Summit
10 FinanceBY JOHN GIESE
Running a year-round business in a seasonal market
12 Research & Technology BY DELORE ZIMMERMAN
Water is life
14 Economic Development BY PAT COSTELLO
South Dakota: Not a low wage state
16 Prairie News
20 Prairie People
24 Business DevelopmentUSDA expands StrikeForce to include Dakotas
38 TransportationUp, up and away
40 South DakotaEducating for expansion
42 Western North DakotaPromoting the positives
44 Energy
47 Business to Business
48 By the Numbers
Next MonthThe June issue of Prairie Businessmagazine will cover some of the various workforce issuesfacing employers in the region. The issue will also include a review of Bill Gates' visit toConcordia College in Moorhead, Minn., to discuss social entrepreneurship.
Mount Rushmore and othernational parks in South Dakotaattract more than 3 million visitors to the state annually, generating $165 million inspending in communities surrounding the parks, accordingto statistics released by theNational Park Service. PHOTO: SOUTH DAKOTADEPARTMENT OF TOURISM
28 TOURISMReady for the Rush Officials expect healthy summer tourism season throughout region
AGRITOURISMGetting Back to the FarmAgritourism offers opportunity to visit rural roots
34
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Coteau des Prairies Lodge, located near Rutland in southeast North Dakota,offers a number of agritourism services, including sleigh rides on the prairiebelow the lodge. PHOTO: PHILLIP BREKER
6 Prairie Business Magazine May 2013
|EDITOR’S NOTE|
Changing with the season
Idon’t know about you, but I am ready for summer. Spring and its rejuvenating sense of
change and renewal is typically my favorite season, but since we seem to be skipping
spring on the northern Plains this year, I’ll take what I can get. After speaking with
tourism and parks and recreation officials for this month’s feature on the upcoming summer
travel season, (page 22) it seems we’re all on the same page. It’s been a long winter for every-
one and those in the know are optimistic that this summer’s travel season will meet or beat
last year’s activity as people eagerly seek out warm weather fun.
This issue also highlights agritourism, a niche market of the area’s tourism industry that
encompasses a variety of outdoor activities, from pick-your-own berry farms and farmer’s
markets to trail rides or rural bed and breakfasts. North Dakota’s tourism division is eager to
grow this sector of the market and is actively recruiting new operators, as discussed in
“Getting Back to the Farm,” (page 26) but agritourism opportunities abound in South Dakota
and Minnesota as well. Interest is growing in agritourism for a few reasons. The primary driv-
er in this region seems to be young families who grew up in rural settings but are raising their
children away from the farm and want to recapture a bit of that agriculture-based experience
for their children. As a former farm kid now raising my children in North Dakota’s most
urban setting, I can attest to that and I hope to see the agritourism sector continue to grow
and prosper.
We may not have had a long spring, but it is still the season of change and Prairie
Business is embracing the sentiment. Beginning this month, we’re providing expanded con-
tent in our digital issues. We’re excited to offer additional information to you and if you aren’t
receiving our digital version each month, I encourage you to visit our website,
www.prairiebizmag.com, and sign up for a free subscription. Then grab your device of
choice, pour an icy cold drink, pull up a lounge chair and read on while you await summer
vacation.
KRIS [email protected]
Maplewood State Park, located nearPelican Rapids, Minn., attracted morethan 23,000 visitors last year, includingthe editor and her family. According tothe Minnesota Department of NaturalResources, every visitor to Minnesotastate parks returns about $26 per day to local economies.
7www.prairiebizmag.com
Answers you can trust - From people who care
800-323-7583
www.dacotahpaper.com
Take your events to new heights with stylish products.
Let Dacotah Paper Co.Show you how!
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An SBA Award Winning Publication
MIKE JACOBS, PublisherRONA JOHNSON, Executive EditorKRIS BEVILL, EditorBETH BOHLMAN, Circulation ManagerKRIS WOLFF, Layout Design, Ad Design
Sales Director:JOHN FETSCH701.212.1026 [email protected]
Sales:BRAD BOYD - western ND/western SD800.641.0683 [email protected]
SHELLY LARSON - eastern ND/western MN701.866.3628 [email protected]
Editor:KRIS BEVILL701.306.8561 [email protected]
Editorial Advisors:Dwaine Chapel, Executive Director, SouthDakota State University Innovation Campus;Bruce Gjovig, Director, Center for Innovation;Lisa Gulland-Nelson, CommunicationsCoordinator, Greater Fargo Moorhead EDC;Tonya Joe (T.J.) Hansen, Assistant Professor ofEconomics, Minnesota State UniversityMoorhead; Dusty Johnson, Chief of Staff forSouth Dakota Gov. Dennis Daugaard’s office;Brekka Kramer, General Manager of Odney;Matthew Mohr, President/CEO, Dacotah PaperCompany; Nancy Straw, President, West CentralInitiative
Prairie Business magazine is published monthlyby the Grand Forks Herald and ForumCommunications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203.Qualifying subscriptions are available free ofcharge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). Theopinions of writers featured in Prairie Business aretheir own. Unsolicited manuscripts, photo-graphs, artwork are encouraged but will not bereturned without a self-addressed, stampedenvelope.
Subscriptions Free subscriptions are availableonline to qualified requestors at www.prairiebizmag.com
Address corrections Prairie BusinessmagazinePO Box 6008Grand Forks, ND 58206-6008Beth Bohlman: [email protected]
Online www.prairiebizmag.com
8 Prairie Business Magazine May 2013
|BUSINESS ADVICE|
Learners leadBY MATTHEW D. MOHR
Finding correct information in the midst of the
endless information available today is often a chal-
lenge, but determining what information is of
value is even more difficult. Generally, most leaders are
committed to continuous learning.
Regional accounting firm Eide Bailly has established a
business segment to provide valuable learning to its per-
sonnel, clients and nonclients. The company recently spon-
sored a seminar featuring Paul Lucy, director of North
Dakota’s economic development division, presenting for
the North Dakota tax department to review certain tax
advantages available to North Dakota taxpayers.
A variety of people attended the seminar, including
tax professionals and business community members inter-
ested in learning more about North Dakota’s available tax
advantages. Attendees heard how the process of receiving
the North Dakota seed capital investment tax credit works
and how to get primary sector designation, along with a
host of other ideas which help businesses flourish in the
region. The seminar provided very important pieces of
information to attendees, including advice as to how start-
up enterprises seeking to establish in the primary sector
should be sure to follow the correct process to get the most
advantageous tax status.
Even if just a review of what one knows, continuous
learning is a sign of leadership. PBMatthew D. Mohr
CEO, Dacotah Paper [email protected]
|UNMANNED AIRCRAFT SYSTEMS |
UASActionSummitBY RYAN AASHEIM
Since 2006, the month of May has meant one thing
for the Red River Valley Research Corridor — the
annual preparation of the Unmanned Aircraft
Systems Action Summit. Now in its seventh year, the
summit has experienced multiple stages of evolution, a
reflection of the growth and change of the UAS industry
itself. During the first UAS Summit, much of the focus
was placed on military applications, particularly on the
U.S. military, which was the largest user of UAS technol-
ogy at the time. Since then, the focus has shifted signifi-
cantly from military to commercial and civil markets as
the private sector appetite for UAS, or “drones,” as they
are commonly referred to by the general public, has
grown and federal budget deficits have forced drastic
military spending cuts.
This is an important year for the UAS industry. The
nation is awaiting the Federal Aviation Administration’s
decision on the establishment of six UAS Airspace
Integration Test Sites later this year. Test sites will be used as
a proving ground for the full integration of UAS into the
National Airspace System by 2015 as mandated in the FAA
Modernization and Reform Act of 2012.
The Grand Forks, N.D., region is among more than 25
locales competing for the rights to be one of the six test sites.
Those selected as one of the six UAS test sites stand to gain
significant economic benefit. We can expect many aero-
space-related firms to flock to regions that have access to air-
space. Professionals in the UAS industry will conduct
research, testing and training to prepare their technology for
the marketplace. According to a recent report by the
Association for Unmanned Vehicle Systems International,
the economic impact of the integration of UAS into the
National Airspace System is expected to be $13.6 billion in
the first three years (2015-2018) and will create more than
70,000 jobs.
International airspace strategies, test sites and region-
al airspace are several of the important topics that will be
explored by experts and attendees of the 2013 Research
Corridor UAS Action Summit. The event will also welcome
leaders and innovators from the law enforcement commu-
nity, Customs and Border Protection, and emergency
responders to talk about the important public safety and
lifesaving capabilities of UAS platforms. At this time, it is
expected that two of the most promising sectors for UAS
growth are precision agriculture and public safety.
The event will also welcome two heavy hitters from
the Aerospace and UAS industry — Tom Vice, corporate
vice president of Northrop Grumman Aerospace Systems,
and Michael Toscano, president of AUVSI. Privacy and
Fourth Amendment concerns have shed a negative light on
this promising industry. The 2013 UAS Summit will fea-
ture a town hall-style panel discussion on privacy and legal
aspects of UAS technology featuring some of the nation’s
leading advocates on both sides of the issue.
The RRVRC is pleased to co-host this year’s UAS
Summit with Northrop Grumman, the City of Grand Forks
and Sens. John Hoeven, R-N.D., and Heidi Heitkamp, D-N.D.
Exhibit space is still available and we invite you to con-
sider attending this industry event and networking opportu-
nity. For more information about the summit or to register,
please visit www.theresearchcorridor.com. PBRyan Aasheim
Associate, Praxis Strategy Group701-499-6994
Featured Speakers:• U.S. Senator John Hoeven• U.S. Senator Heidi Heitkamp• Michael Toscano, President of AUVSI• Col. Select Scott Coon, U.S. Air Force, Chief of NATO AGS Operations• Tom Vice, Corporate Vice President and President, Northrop Grumman Aerospace Systems
A GLOBAL DESTINATION FOR THE UAS INDUSTRY. Unmanned systems in civil and commercial markets aren’t some far-offdream. The future is here now. Don’t miss the 7th annual UAS Action Sum-mit—hosted by U.S. Senators John Hoeven and Heidi Heitkamp, NorthropGrumman, Red River Valley Research Corridor and the City of Grand Forks.
Tap into the potential of UAS:HEAR FROM UNMANNED SYSTEMS EXPERTSUAS leaders from federal agencies, universities, commercial entities and morewill discuss the latest developments in UAS applications. Exhibitors, Net-working Opportunities and more. Check theresearchcorridor.com/UASsum-mit2013 for more details and new agenda items.
Register online at THERESEARCHCORRIDOR.COM/UASSUMMIT2013
Speaker Session Topics Include:• International Airspace Integration Strategies• Privacy Town Hall: A Legal, Moral, and Ethics Dialogue• Exploring Law Enforcement and Emergency Services.• UAS in Agriculture – Industry and Market Overview
10 Prairie Business Magazine May 2013 10www.prairiebizmag.com
|FINANCE|
Running a year-round business in a seasonal marketBY JOHN GIESE
If you own a landscaping business or air condi-
tioning repair service, the busiest time of the year
is just around the corner. But if you specialize in
planning holiday parties, the lean times are here.
Either way, running a seasonal business calls for a
high degree of financial flexibility.
Build a 12-month budgetPlanning is the key to making a seasonal business
thrive financially. Even if you earn most of your rev-
enue in just a few months, consider your income and
expenses over a full 12-month period. Many expenses
continue year-round even if you scale back your oper-
ations in the off-season, so your budget planning
should do the same.
Here are some tips to help you establish and man-
age a year-round budget:
• Add up all your fixed costs such as rent, loan pay-
ments, utilities and services, taxes and year-round pay-
roll. These represent the minimum your business needs
to earn.
• Factor in variable costs such as inventory, sup-
plies, and seasonal staff.
• Establish a business savings account to help cover
ongoing costs as well as unexpected expenses. Consider
setting up regular payments to this account when the
revenue is coming in.
• Think about how you pay yourself. In a startup
or smaller business you may not draw a salary, but you
should plan ahead for paying your personal expenses
year-round.
Of course, your peak revenue may not match your
expectations. If it falls short, adjust the expense side
wherever possible to compensate. And if you take in
more than you expect, consider making investments in
the business, building up the savings account or both.
Ramp up your down time“There is no off-season” is the rule today for ath-
letes who want to perform their best. That maxim holds
true for many businesses as well. Some business owners
find new ways to expand their products and services to
appeal to customers beyond high season. For example,
a landscaping company might offer snow removal or
holiday decorating services in December.
Chances are, however, that you’ll still face a drop in
income at some point on the calendar. When the rev-
enue falls off, a line of credit can help cover your
expenses and keep your finances in order. You may even
be able to link a line of credit directly to your business
checking account and online banking.
Keep in touchPerhaps the single most important thing you can
do in the off-season is to stay in touch with your cus-
tomers. To help sustain customer relationships year-
round, many business owners send thank-you messages
or special offers. Others launch promotions such as off-
season or early-bird discounts. Whatever tactic you
choose, make every communication a welcome one by
offering something of real interest or value.
Protect your investmentWhile the demand for products and services may
vary throughout the year, risk is a constant. Take advan-
tage of some down time to make sure your business is
protected from business-related risks.
If you haven’t yet done so, talk to your banker or
business insurance planner about the risks inherent in
your business and learn how to set up a business prop-
erty and liability plan. Some of the building blocks of a
comprehensive plan include business liability insur-
ance, business property insurance, workers’ compensa-
tion, business auto insurance, business umbrella liabili-
ty insurance and business identity theft insurance. If
you already have a plan, schedule a check-up to make
sure it has grown with you and your business.
No matter how creatively you plan, it may be a
challenge to sell as many health club memberships in
June as it is in January. But by keeping your perspec-
tive during the peak season and making the most of
the off season, you can even out some of the financial
bumps and groom your business for a smoother ride
year-round. PBJohn Giese
Regional Business Banking Manager, Wells [email protected]
Twitter: @WellsFargo
www.dakotacarrier.com 11www.prairiebizmag.com
12 Prairie Business Magazine May 2013
|RESEARCH & TECHNOLOGY|
Water is lifeBY DELORE ZIMMERMAN
Water scarcity and lack of safe drinking
water is one of the world's leading
problems. According to the Blue
Planet Network more than 1.1 billion people —
one in every six people globally — lack access to
safe drinking water.
I recently arrived in Accra, Ghana, in West
Africa on World Water Day, which amplified my
mindfulness of water. The Greater Accra
Metropolitan Area (GAMA) is home to about 4
million people and parts of GAMA are now
rationing water due to technical problems with fil-
ters at a major treatment plant. I immediately won-
dered about the future of water here, where more
than one in three people are under 14 and the
country is adding nearly 500,000 children a year,
leading to a doubling of the population in Ghana
to 25 million by 2050.
Worldwide there is a strong correlation
between water stress, poverty and hunger. Rain-fed
agriculture is practiced in all parts of the world and
the amount of rainfall is a clear-cut determinant of
yields. Rain-fed agriculture is most significant in
Sub-Saharan Africa where it accounts for about 96
percent of the cropland, but we in the Red River
Valley and across the Great Plains all understand
the impact that the amount and timing of rainfall
can have on crops and livelihoods.
So yes, water is life; but it can also mean strife.
My home in Grand Forks, N.D., had a basement
full in 1997 and at the office we lost everything
below the top drawer of a three-drawer file cabinet.
Fortunately for Grand Forks its flood protection
system is up to the most troublesome spring thaws,
but Fargo and other cities along the Red River
remain vulnerable and anxiously monitor each
year’s snowfall and melt situation and must pre-
pare accordingly.
"Whiskey is for drinking; water is for fighting
over,” a quote attributed to Mark Twain, could be
a harbinger of the future as we can anticipate more
conflicts among water users including mining and
extractive industries, growing urban areas and
crop irrigation. In western North Dakota the focus
is on the use of hydraulic fracturing for oil produc-
tion and its effect on groundwater and the han-
dling of wastewater.
In his book “Empire Wilderness,” Robert
Kaplan wonders how the United States would be
different had it been settled from west to east, orig-
inating under conditions warranting large central-
ized government for big public works for water. We
can think about how that sort of calculation might
take its course in the future here as more rigorous
management of water resources in times of plenty
and scarcity can be expected.
Notably, the proposed Red River Valley Water
Supply Project, a plan to transfer water from the
Missouri River to the Red River Valley is vital to
sustaining the valley’s economy and population
growth. I’m not imagining draconian top-down
mandates in this instance. Instead, a highly central-
ized government solution will need to give way to
the ebb and flow of creative solutions and mean-
ingful partnerships between local, state and federal
entities — and maybe even a little whiskey. PB
Delore ZimmermanPresident, Praxis Strategy Group
Executive Director, Red River Valley Research [email protected]
Twitter: @DeloreZimmerman
14 Prairie Business Magazine May 2013
|ECONOMIC DEVELOPMENT|
South Dakota: Not a low-wage stateBY PAT COSTELLO
Here in the Governor’s Office of
Economic Development, a two-year-
long study of occupations and wages
is showing the country what we in the state
have known for some time: South Dakota is
not a low-wage state.
We have all heard the rhetoric before: “But
I just won’t earn as much in South Dakota!”
We have also heard the rebuttal: “But South
Dakota has low taxes and a low cost of living.”
This is definitely true. But what exactly does it
mean in the grand scheme of wages versus costs?
For most people, purchasing power —
your remaining wages after paying taxes and
covering your cost of living — is what’s impor-
tant. The GOED wage study calculated that pur-
chasing power and found that in 2011, we
ranked 26th out of 50 states in purchasing
power, which is a far cry from the “lowest wages
in the nation” and “way-below-average salary,”
phrases we have become all to familiar with.
So where did the low-wage misconception
come from and how did our study prove the
contrary? To begin, the U.S. Department of
Labor puts out an annual average wage and
salary calculation, which is determined by divid-
ing each state’s total wages paid by the number of
full- and part-time employees. While this num-
ber is accurate, it is misleading considering the
disproportionally high number of part-time jobs
held in South Dakota.
To get a more accurate picture, Mark
Boehm, GOED’s tax and industry analyst, used
the labor department’s Standard Occupational
Codes, which provide detailed, accurate wage
and employment information for each state by
specific occupation, and deducted federal
income taxes, state income taxes and
FICA/Social Security from the median gross pay.
He also factored in the Council for Community
and Economic Research’s (C2ER) Cost of Living
Index, based on the largest city in each state. This
method was used to calculate the purchasing
power for more than 550 occupations that are
found in South Dakota. The results for each
occupation are found in the study.
For the purposes of this study, all wage
earners were assumed to file as single, using the
standard deduction, with no dependents.
If sales tax, property taxes and other fees
such as vehicle registration taxes were included
in this study, South Dakota’s rank would be even
higher. At this time, the most current numbers
available reflect 2011 prices. The 2012 update is
expected to be out early this summer.
This data is all available on our website,
www.sdreadytowork.com. Simply click on “News
& Media,” and then “Publications & Studies.”
I encourage everyone to get online and
take a look at what we have out there. I’m opti-
mistic that this useful information will help
economic developers break down the “low
wage” myth in South Dakota. PB
Pat CostelloCommissioner, South Dakota Governor’s
Office of Economic [email protected]
Twitter: @sdgoed
15www.prairiebizmag.com
16 Prairie Business Magazine May 2013
Prairie News Industry News & Trends
Minot airportreceives award, city approves railinfrastructure funding
The Minot International
Airport recently received the
2012 Commercial Service
Airport of the Year award from
the North Dakota Aeronautics
Commission in partnership
with the Airport Association of
North Dakota in recognition
for excellence in maintaining
safety, project management
and community awareness.
In 2012, the airport
began work on a terminal area
study which resulted in the
city’s decision to begin multi-
ple large improvement proj-
ects, including a new terminal
building to accommodate the
airport’s increasing number of
passengers. The airport also
worked with carriers to
increase the number of daily
flights offered and collaborated
with the community to offer a
free air show, which drew an
estimated 15,000 attendees.
In April, the Minot City
Council approved $3.4 million
from the city’s MAGIC Fund
for rail infrastructure that will
support the expansion of sever-
al agriculture-related opera-
tions and a manufacturing
company. About 7,800 linear
feet of rail will be installed this
spring at the Port of the North
Dakota. The company expan-
sions as a result of the expand-
ed rail infrastructure are
expected to support 240 jobs,
according to the Minot Area
Development Corp., which
submitted the application for
funding to support the project.
Essentia launches $80 million Fargo expansion planEssentia Health recently announced it will invest $80 million over the next three years in multi-
ple construction projects at its campuses in Fargo, beginning with the construction of a 105,000-
square-foot, four-story hospital tower at its 32nd Avenue Fargo hospital, a support services building
in south Fargo, 400 parking spaces, and major renovations at its South University Clinic.
In early April, Essentia leaders said they expected parking lot work to begin by the end of the
month, followed by a groundbreaking for the new tower this summer. The tower will include high-
tech suites for imaging, endoscopy, interventional radiology and heart catheterization, and is slated to
be complete in January 2015. The expansion will initially add 28 new beds, but there will be room to
more than double that number in the future, according to the organization.
Construction of the 25,000-square-foot support services building will also begin this summer.
When complete, the unit will serve as a regional supply distribution center for Essentia and will provide
office space for coding and business services departments. The clinic renovations will allow several
departments to expand and will move support staff off-site, returning the entire facility to clinic space.
In 2014, Essentia will begin constructing a specialty clinic building at its 32nd Avenue campus
to allow additional space for physicians and other providers. That project is scheduled to be complete
in March 2015.
The third phase of Essentia’s expansion plan will double the capacity of the emergency department
at 32nd Avenue from 13 rooms to 26 rooms and will expand operating rooms and imaging services in that
department. That project is expected to commence in December 2014 and will extend into early 2016.
Dr. Greg Glasner, president and chief medical officer of Essentia’s West Region, said the expan-
sion projects are necessary to meet growing demand and the changing health care environment.
Essentia Health will begin construction this year on a four-story tower at its south Fargo hospital campus.The facility is expected to be complete in early 2015. IMAGE: ESSENTIA HEALTH
17www.prairiebizmag.com
|PRAIRIE NEWS|
RDO acquires SD survey contract from Mathison’s
RDO Equipment Co.’s positioning division,
RDO Integrated Controls, has acquired the
Topcon Survey Contract for the state of South
Dakota from Mathison’s Co. Inc. RDOIC will also
assume the responsibility for providing construc-
tion supplies for RDO Equipment Co. construc-
tion stores across Minnesota, Montana, North
Dakota, South Dakota and Wyoming.
Mathison’s has supplied the survey commu-
nity throughout the region for more than 50 years.
It is shifting its focus to the company’s printing
and color graphics division.
Minneapolis developmentfirm opens western ND office
Minneapolis-based Oppidan Investment
Co., a national property development firm, will
open an office in Watford City, N.D., in order to
maintain a consistent presence in the town and
throughout the Bakken region.
The 2,500-square-foot office will be located
in Watford Plaza, Oppidan’s 120,000-square-foot
commercial development currently under con-
struction and scheduled to open in July. Oppidan
is also the developer of a 42-unit apartment com-
plex in Watford City that will open in June.
The company has invested a total of $150
million in projects throughout the Bakken region
in the past year.
Lake Region Healthcarelaunches local foods initiative
Fergus Falls, Minn.-based Lake Region
Healthcare will break ground this spring for a
local foods initiative called “Lake Region Takes
Root.” The project involves gardening, growing
and giving through community collaboration
and was inspired by a community health needs
assessment completed by Lake Region Healthcare
and Otter Tail Public Health, which indicated that
families with children under the age of 21 are
concerned about the ability to access fresh fruits
and vegetables at an affordable price. “After much
research, we’ve determined that using this
resource to grow local foods is a natural fit with
that vision,” LRH CEO Larry Schulz said in a
statement. “It’s also an opportunity to do some-
thing unique to contain health care costs through
preventative health measures.”
Food will be grown on land close to the
LRH walk-in clinic in Fergus Falls and will be
distributed primarily to WIC clients in Otter
Tail County.
|PRAIRIE NEWS|
18 Prairie Business Magazine May 2013
Representatives of Opp Construction accept the Grand Safety Excellence Award from the AssociatedGeneral Contractors of America. From left: Dave Opp, chief safety director; Marissa Taylor, HR manager; SallyOpp, operations manager; Greg Opp, president; Paul Diederich, AGC of America 2013 president and JosephJarboe, AGC of America 2012 president.
Opp Constructionnamed safest in nation
Grand Forks, N.D.-based Opp
Construction has been named the
nation’s safest construction company
in 2013 by the Associated General
Contractors of America. The company
was selected to receive the award based
on its exceptional leadership in safety
through dedication to the develop-
ment and implementation of premier
safety and loss prevention programs,
according to AGC.
In addition to the Grand Award
for safety, the company also received a
first place award in its division for safe-
ty excellence. The AGC distributes first
place awards in a number of cate-
gories, based on company size, the
amount of work performed and the
type of work performed. Winners are
selected by a panel of five independent
safety professionals.
Williston job fair attracts more than 1,000 workers
More than 1,300 job seekers attended the
Williston Spring Job Fair on March 28, according
to the Williston Economic Development office.
The turn-out was nearly twice as many as was
expected. More than 100 employers also attend-
ed the fair, including schools, banks, insurance
companies, oilfield companies, grocery stores
and restaurants.
Marco expands in IowaSt. Cloud, Minn.-based Marco, a technolo-
gy advisory firm specializing in providing net-
work expertise to voice, data, video and print
solutions, has purchased Iowa's Hyde Telecom
Partners Inc. Hyde Telecom employees have been
retained by Marco.
Marco has acquired six companies in nine
months. Prior to the purchase of Hyde Telecom,
its most recent acquisition was also in Iowa, where
it now employs 100 people. A total of 650 work for
Marco throughout 34 locations in the Upper
Midwest, including five locations in each of the
Dakotas, 12 locations in Minnesota and offices in
Wisconsin and Iowa.
Bismarck hospital adds interventional radiology lab
St. Alexius Medical Center, a 306-bed, full-
service health care system based in Bismarck,
N.D., recently opened a second interventional
radiology lab. The addition was necessary to meet
increasing demands for services performed by its
team of three board-certified interventional radi-
ologists and three certified family nurse practi-
tioners, according to the organization.
Interventional radiology is a sub-specialty of
radiology that offers target treatment options for
blood clots, spine fractures, fibroid embolization
and peripheral vascular disease. The procedures
performed by interventional radiologists are min-
imally invasive and provide less risk and recovery
time compared to open surgery.
St. Alexius is a member of Mayo Clinic Care
Network and serves patients in western and cen-
tral North Dakota. It is the only facility in its
region to offer interventional radiology services.
19www.prairiebizmag.com
|PRAIRIE NEWS|
NCTC estimates $85 million impact on Northland communities
Northland Community & Technical College
generated an $85 million impact in northwest
Minnesota, according to a study by Wilder
Research. Additionally, the study found that the
college generates approximately $5 million in state
and local tax revenues annually and generates
more than 1,000 jobs in the region.
NCTC serves approximately 5,700 students
each year at campuses in East Grand Forks, Thief
River Falls and Roseau, Minn.
Sioux Falls building permitactivity remains strong
Building permit data from the city of Sioux
Falls, S.D., shows that the valuation for new resi-
dential construction from January to March 2013
is just over $56 million, compared to $21.7 million
in 2012 and $13.3 million in 2011. During that
time frame, 141 building permits were issued for
141 single-family units, compared to 99 last year
and just 51 in 2011.
“We’ve heard first-hand from many of our
members that the home building industry in our
market is picking back up,” Kevin Zomermaand,
president of the Home Builders Association of
Sioux Falls, said in a statement. “Consumers are
ready to move on from the downturn and they’re
finally ready to make the big move. With interest
rates still at all-time lows, it’s hard to say how long
this will last. People around here are smart though
and are still taking full advantage of the incredible
homeownership opportunities out there.”
Bemidji DowntownDevelopment Authority offers loan opportunities
The Downtown Development Authority
(DDA) of Bemidji, Minn., has established a fund
with the Northwest Minnesota Foundation that
will offer loans up to $5,000 with a goal of further
enhancing the business presence in downtown
Bemidji. The revolving loan program is to be used
to assist businesses in either locating downtown or
expanding their downtown business.
Loans are available to any business looking to
locate or expand in downtown Bemidji. Funds can
be used for building improvements, equipment,
inventory, supplies and working capital. The busi-
ness must maintain DDA membership through-
out the term of the loan. Applications are available
at www.nwmf.org under Business Development
on the Entrepreneur Development Program page.
McKnight Foundation gives $6 million to Northwest Minn. Foundation
Northwest Minnesota Foundation will
receive $6 million from the McKnight Foundation
over five years to support NMF’s programs, build
the organization’s endowment and support its
development as a community foundation.
NMF says the pledge reflects a commitment
on the part of the McKnight Foundation toward
the group’s goal of developing community assets
in northwest Minnesota.
“We are very appreciative of the support we
have received throughout our 26-year partner-
ship with the McKnight Foundation,” NMF
President Nancy Vyskocil said in a statement. “We
look forward to continued success, working
together to meet the needs of northwest
Minnesota through our Quality of Place strate-
gies and our unique work as the sole community
foundation of the region.”
ND creates 100,000 jobs in 10 years
The North Dakota Department of
Commerce announced April 5 that the state has
created 102,000 new jobs since 2000.
In 2012, North Dakota had an average
annual employment level of 429,800, an increase
of 102,100 from 2000 when the state had
327,700 workers. This represents an increase of
31.2 percent. North Dakota added 33,000 new
net jobs in 2012.
“Together with local developers and for-
ward-thinking private sector participants, the
North Dakota Department of Commerce can
show that our efforts are indeed facilitating
growth,” Al Anderson, commerce commissioner,
said in a statement. “We have added over 70,000
new jobs in the past five years and as we continue
to focus on greater economic diversification, we
will see even more jobs created.”
www.prai r iebizmag.com
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Prairie Business, a monthly magazine, and Talking Points, a weekly newsletter, focus on businesses in S.D., N.D., and Minn., that drive the regional economy, including agriculture, energy, health care, architecture and engineering, higher education and more.
The May issue of Prairie Business will cover the area’s agritourism industry, the availability of rural development funds in Minnesota and the expansion of charter flight services in the region.
Subscribe to the free digital edition of Prairie Business and sign up to receive Talking Points at www.prairiebizmag.com.
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20 Prairie Business Magazine May 2013
|PRAIRIE PEOPLE|
Spectrum Aeromed hires Kost as COO
Spectrum Aeromed has hired Chad Kost to
serve in the company’s newly created position of
chief operating officer. In this role, Kost will handle
many aspects of the company’s daily operations and
procedures and will aid with strategic planning.
Prior to joining Spectrum Aeromed, Kost
spent 17 years in the banking industry, where he
most recently managed the financial reporting for
Bank of the West’s $3.4 billion direct consumer
loan portfolio. Kost also briefly aided Spectrum
Aeromed as a consultant.
Bemidji State names business school dean
Shawn Strong has been named dean of
Bemidji (Minn.) State University’s College of
Business, Technology and Communication. He will
begin on July 1 and will replace Carol Nielson, who
has served as interim dean of the college since
August 2011.
Before joining BSU, Strong spent 14 years as
a faculty member at Missouri State University,
serving as an assistant professor, associate profes-
sor, department chair and, most recently, as pro-
fessor of technology and construction manage-
ment. He says the student-focused nature of BSU
and the quality of the Bemidji community drew
him to the position.
McGraw joins Noridian as president, CEO
Tom McGraw has joined Noridian
Administrative Services, a wholly owned subsidiary
of Noridian Mutual Insurance Co., as the second
president and CEO to lead the company as it
expands its service offerings throughout the country.
McGraw has more than 25 years of experience
developing and managing operations and consult-
ing practices in government and the private sector
and has been at the forefront of numerous health
industry advancements including consumer direct-
ed care, health homes, health insurance exchanges,
web-based consumer health care information and
evidenced-based medicine.
Prior to joining Noridian, he served as senior
vice president of business development at
Amerigroup Corp. and senior vice president of
government solutions and government program
integrity at OptumInsight, a United Health Group
company focused on health technology.
Kotb named founding chair for basic sciences departmentat UND med school
Malak Kotb, a noted infectious disease and
biodefense expert, has been named the founding
chair of the Department of Basic Sciences at the
University of North Dakota School of Medicine
and Health Sciences. She will begin serving in this
role on July 1.
Kotb has been a tenured professor since 2008
at the University of Cincinnati College of
Medicine’s Department of Molecular Genetics,
Biochemistry and Microbiology/Immunology
and is a senior career research scientist at the
Veterans Affairs Medical Center in Cincinnati. Her
research expertise uses interdisciplinary
approaches to study the genetics and biology of
disease-modifying genes and pathways. She holds
two U.S. patents on her work in developing a
medical screening method for cancer and a target-
ed treatment of cancer. She is a 1997 Fulbright
Scholar, the author of more than 170 scientific
articles and has worked on and chaired numerous
grant review panels for the National institutes of
Health study sections, the Department of Veterans
Affairs and other national and international advi-
sory boards and granting agencies.
Kotb grew up in Egypt and received her bach-
elor’s degree from Ain Shams University in Cairo.
In 1972, she was selected by the International
Rotary as Goodwill Ambassador to the U.S. and
was given a full scholarship to cover her education
and living expenses.
AGC of America picksDiederich as president
The Associated General Contractors of
America has selected Paul Diederich, president of
West Fargo, N.D.-based Industrial Builders Inc., to
serve as the group’s president. Diederich, who has
worked in the industry since 1974 and currently
leads the company started by his father in 1953,
says the AGC allows construction firms to come
together to build knowledge and educate the pub-
lic about the role the construction industry serves
in supporting economic growth, making struc-
tures more efficient and providing rewarding
career opportunities.
Industrial Builders employs approximately
275 construction workers during peak seasons and
performs about $50 million worth of volume
annually.
Chad Kost Malak Kotb
Shawn Strong
Tom McGraw
Paul Diederich
21www.prairiebizmag.com
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22 Prairie Business Magazine February 2012
Cirrus Aircraft co-founder and CEO Dale Klapmeier, left, has named Patrick Waddick as company president.PHOTO: CIRRUS AIRCRAFT
Cirrus Aircraft namesWaddick president
Dale Klapmeier, co-founder and CEO of
Duluth, Minn.-based Cirrus Aircraft,
announced that Pat Waddick has been pro-
moted from executive vice president and chief
operating officer to president and COO of the
company. In his new role, Waddick will be
responsible for daily company operations,
including sales and service, manufacturing
and supply chain, product development and
administration. Klapmeier will remain CEO
and will focus on new product development
and client relations.
Waddick joined Cirrus in 1988 and has
served in several leadership roles throughout
his career with the company, including chief
engineer, vice president of engineering and
senior vice president of engineering.
Cirrus Aircraft has locations in Duluth
and Grand Forks, N.D.
UND selects next provostUniversity of North Dakota President Robert
Kelley has named Thomas DiLorenzo as the next
provost and vice president for academic affairs. He
replaces Paul LeBel, who will assume a full-time
faculty position in UND’s School of Law, where he
served as dean prior to being named provost.
DiLorenzo previously served as associate vice
president for innovation, commercialization and
entrepreneurship at the University of Alabama at
Birmingham. As provost and vice president for aca-
demic affairs at UND, he will serve as the universi-
ty’s senior academic administrator and will oversee
the university’s academic division.
Ackerman-Estvold adds project engineer
Minot, N.D.-based Ackerman-Estvold
Engineering and Management Consulting Inc. has
hired Jeff Hawks to serve as a project engineer.
Hawks has eight years of experience in water
resources, land and site development and aviation
engineering, working most recently for HNTB
Corp. in Utah as a drainage and utility engineer.Jeff Hawks
Kyle RuhlandThomas DiLorenzo
Darwin Viet
Century Business Productsnames 2 to president’s club
Century Business Products Inc. has named
Kyle Ruhland and Darwin Viet to the company’s
President’s Club for 2012.
Ruhland and Viet, both of the Sioux Falls,
S.D., branch, are recognized for representing the
company’s values, product knowledge and excel-
lence in providing business solutions for current
and new customers.
Ruhland has worked for Century Business
Products for 10 years and has been named to the
president’s club for seven consecutive years.
Viet has worked for the company for three
years. This is his first election to the president’s club.
|PRAIRIE PEOPLE|
23www.prairiebizmag.com
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24 Prairie Business Magazine May 2013
|BUSINESS DEVELOPMENT|
Agriculture Secretary Tom Vilsack speaks at the U.S. Department of Agriculture’s StrikeForce for Rural Growth and Opportunity event held atVoorhees College in Denmark, S.C., on March 26. PHOTO: U.S. DEPARTMENT OF AGRICULTURE
25www.prairiebizmag.com
|BUSINESS DEVELOPMENT|
The U.S. Department of
Agriculture announced in
March that it is expanding its
StrikeForce initiative to encourage
economic development in historically
poor counties in 16 states, including
North and South Dakota.
Originally launched in 2010 as a
pilot program in regions of Arkansas,
Georgia and Mississippi, the initia-
tive’s goal is to promote economic
growth in poverty-stricken counties
through collaboration between
USDA representatives and communi-
ty leaders. Representatives of USDA
agencies, including the Farm Service
Agency, Rural Development, Natural
Resources Conservation Service and
Food & Nutrition Service, provide
specialized guidance and assistance
to parties in targeted areas who are
interested in utilizing USDA pro-
grams to develop businesses or serv-
ices that will beneficially impact
those communities.
To identify areas in need of
focused support, the USDA uses U.S.
Census data to determine areas with
poverty rates of more than 20 percent.
The agency then contacts local officials
to increase awareness of USDA pro-
grams and recruit participants.
Secretary of Agriculture Tom
Vilsack says one reason persistently
poor communities struggle with high
poverty levels is because they have not
previously received much government
support. USDA aims to change that.
“We want you to help us figure out
what the community needs most and
then we’ll figure out within USDA’s
programs how to access the resources
for the technical assistance or person-
nel that will be able to make that hap-
pen,” he says. “We have a wide range of
tools and StrikeForce basically pro-
vides intensive care and a focused
effort in areas that have been persist-
ently poor. Working in partnership we
think we can leverage and more effec-
tively use our resources than we have
in the past.”
The expanded StrikeForce initia-
tive includes the North Dakota coun-
ties of Benson, Rolette and Sioux and
13 counties in South Dakota —
Bennett, Buffalo, Charles Mix, Corson,
Dewey, Gregory, Jackson, Lyman,
Mellette, Roberts, Shannon, Todd and
Ziebach. The targeted regions include
the states’ Native American reserva-
tions, and state agency representatives
say the initiative will allow them to
work closely with tribes to improve
their economic conditions.
“Although USDA Rural
Development finances many projects
on South Dakota’s reservations,
being designated as a StrikeForce
state to work on tribal lands compels
us to become more strategic in
bringing access of all Rural
Development’s programs to reserva-
tions,” says Elsie Meeks, USDA rural
development director for South
Dakota. “For example, one of our
initiatives will be to create a network
to provide more opportunities for
homeownership on tribal lands.
Along with home ownership and
business programs, Rural
Development will finance critical
infrastructure needed for growth
and a healthy environment on our
tribal lands.”
“We place a high value on the
partnership we have with our tribal
communities and the investments
USDA has made,” says Jasper
Schneider, North Dakota USDA Rural
Development director. “Secretary
Vilsack’s StrikeForce initiative will fur-
ther those efforts by focusing all of
USDA to increase outreach, provide
more technical assistance and help
communities leverage resources.”
Vilsack noted that despite North
Dakota’s overall stellar economic per-
formance, areas of the state that are
included in StrikeForce continue to
suffer from high poverty rates. “You’ve
got a boom and bust kind of deal
where you’ve got tremendous oppor-
tunities because of energy, and that has
created a real healthy economy in
USDA expands StrikeForceto include DakotasInitiative focuses on boosting economic development in poverty-stricken areasBY KRIS BEVILL
26 Prairie Business Magazine May 2013
North Dakota, but not everybody is ben-
efitting from that economy,” he says.
Compared to a statewide unemployment
rate of less than 4 percent, the North
Dakota USDA Rural Development office
says the three counties included in the
initiative have official unemployment
rates as high as 15 percent. Actual unem-
ployment rates may be even higher. The
agency plans to work with the tribal
nations of Standing Rock Sioux Tribe,
Spirit Lake Tribe and Turtle Mountain
Band of Chippewa Indians to help
reduce those rates.
In addition to the Dakotas,
Arkansas, Georgia and Mississippi, other
states targeted under StrikeForce include
Alabama, Alaska, Arizona, Colorado,
New Mexico, Nevada, North Carolina,
South Carolina, Texas, Utah and Virginia.
Projects developed under the initiative
will vary to reflect each region’s unique
resources and needs, but examples of the
types of projects that have been success-
fully developed so far include food hubs
where local growers formed cooperatives
to market their products to large dis-
count stores, summer food programs to
deliver meals to children in need and
expanded health care services.
USDA agencies in previously exist-
ing StrikeForce regions reported notable
increases in the number of loan and
grant applications in 2012, which Vilsack
says proves the program is working and
makes him excited about the prospects of
the expanded initiative. “The most
important thing, when we’re dealing
with limited resources, is to make sure
that we leverage and coordinate and
focus those resources,” he says. “We know
that this is working, which is why we felt
confident that it could be extended to
other states where the needs are great.”
For more information, including
contact information for each state’s
StrikeForce representative, visit
www.usda.gov/StrikeForce. PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
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28 Prairie Business Magazine May 2013
|TOURISM|
Ready forthe RushOfficials expect healthy summer tourism seasonthroughout the regionBY KRIS BEVILL
The tourism industry contributes billions of dollars annually to state
economies in the northern Plains and is a critical source of tax rev-
enue for the states, particularly in South Dakota where it ranks
behind only agriculture in terms of size. The industry has experienced mod-
est but steady growth throughout the region since 2009 and early indicators
suggest that this year’s summer season will be another success, drawing more
visitors and spending dollars to the area than last year.
“Everything is looking fantastic,” says Wanda Goodman, media and
industry relations manager for the South Dakota Department of Tourism.
A report from IHS Global Insight found that tourism in South Dakota
had a nearly $2 billion direct impact on the state’s economy last year, up 5 per-
cent from the previous year, and generated $291 million in state and local tax
revenue. Based on information gathered by the tourism department through-
out the year, Goodman expects the industry’s impact on the state will be even
greater this year. In February, which Goodman says is the month most people
begin making summer travel plans, information requests and taxable sales were
up compared to February 2012, indicating increased interest from potential
Popular tourist destinations such as BadlandsNational Park in South Dakota help to draw millions of visitors to the state each year. PHOTO: SOUTH DAKOTA DEPARTMENT OF TOURISM
29www.prairiebizmag.com
|TOURISM|
summer visitors. “Looking at national indicators, too, numbers
are looking good,” she says. “Certainly, there are standard con-
cerns, such as gas prices, that we continue to watch. But as long
as they stay stable and don’t go too high, I think we’re looking at
a good season.”
Mount Rushmore and the state’s other national parks,
including Badlands National Park, Jewel Cave National
Monument, Minuteman Missile National Historic Site, Missouri
National Recreation River and Wind Cave National Park, are
obvious tourist draws for South Dakota, tallying close to 3.8 mil-
lion visitors in 2011 and contributing $160 million in economic
impact, according to the National Park Service. “We attract visi-
tors from across the U.S. and around the world who come here
to experience these parks and then spend time and money enjoy-
ing the services provided by our neighboring communities and
getting to know all that this state has to offer,” Mount Rushmore
Superintendent Cheryl Schreier says.
The state tourism department intends to continue market-
ing Mount Rushmore’s appeal this year by taking the depart-
ment’s Mount Rushmore mascots on a bus tour to a dozen
Midwest cities. “People love them,” Goodman says. “That will
raise some awareness at the start of the season.”
While the state does attract a fair share of international
tourists, Goodman says the bulk of South Dakota’s tourist traffic
originates in Minnesota and Wisconsin. The department will
continue doing most of its marketing in neighboring states this
year, but Goodman says it’s also receiving good results from sev-
eral newer markets, including Kansas City, Mo.; Des Moines,
Iowa, and Chicago.
Additionally, South Dakota legislators approved funding
this year for several projects that are expected to positively
impact the industry. Among them is the first new state park in
South Dakota since 1972 — the 615-acre Good Earth State Park
at Blood Run, located southeast of Sioux Falls. Blood Run, a
30 Prairie Business Magazine May 2013
|TOURISM|
known Native American trading and ceremonial center, has
been a National Historic Landmark since 1970 and is consid-
ered the most significant Oneota cultural site in the Midwest.
Goodman says the park will help the tourism department con-
nect Native American tourism stops located throughout the
eastern part of the state, which could contribute to an expan-
sion of tribal tourism as a niche segment of the state’s industry.
“Tribal tourism is an area that continues to gain interest,
especially with our international audience, but even with
some of our neighboring states,” she says. The tourism
department, led by tourism secretary Jim Hagen, is organiz-
ing listening sessions with the state’s tribes to gauge their lev-
els of interest in promoting tribal tourism. “We need to take
our cues from each tribe,” Goodman says. “Not all tribes are
going to want to do the same thing with tourism. Some may
not want to promote tourism at all. We need to find out what
it is that we can help with.”
Adventure tourism is another segment the department is
focused on expanding within the state. Goodman says there are
a number of adventure businesses already, such as hiking and
bike trail guiding companies, but she believes there is room to
grow and promote the segment further.
The South Dakota tourism department offers several
cooperative marketing campaigns to assist businesses and com-
munities in promoting themselves. Among them is the
Matching Dollar Challenge program, which provides matching
grants to help businesses execute marketing plans. The depart-
ment also collaborates with local convention and visitors
bureaus to support their marketing efforts.
North DakotaTourism is the third-largest industry in North Dakota,
after agriculture and energy. In 2011, the industry drew about
17 million visitors to the state, generating $4.8 billion in spend-
ing, according to estimates compiled by North Dakota State
University. Year-end statistics for 2012 show continued growth
Federal budget cuts threatened the closure of some National Park Service sites this year, including the Painted Canyon Overlook in NorthDakota’s Badlands, but those issues have mostly been resolved. PHOTO: NATIONAL PARK SERVICE
31www.prairiebizmag.com
in the industry and Sara Otte Coleman, director of North Dakota
Tourism, says several factors contribute to another optimistic
outlook for this year’s travel season. Forty-two new hotels have
been built in North Dakota since 2011, adding 3,500 rooms. An
additional 39 properties, accounting for approximately 3,700
new rooms, are expected to be added this year. “Additionally, we
have more airlines flying in and more seats available,” she says.
“There are several new lodges, venue additions and attractions
opening as well.”
North Dakota focuses its tourism marketing campaigns on
neighboring states and bordering Canadian provinces. Otte
Coleman says the main reason people travel to North Dakota is
to participate in outdoor activities and the state could use more
outdoor recreation providers to meet the needs and expectations
of travelers. “This includes a variety of services from full-service
resorts, guest ranches, active farm stays and guided adventures,”
she says. “We also do not have a lot of businesses offering out-
door sports rentals.”
North Dakota offers several grant programs to assist new
and existing tourism-related businesses with their ventures,
including matching grants of up to $25,000 that are intended to
serve as the final piece of funding to allow new or expanded busi-
nesses to open to the public. In 2011, the legislature created the
Tourism Infrastructure Grant Program, which provided
$750,000 for five projects selected for their demonstrated ability
to attract and retain visitors. That program’s future is currently
uncertain, however, as it requires the legislature to appropriate
additional funds this session.
North Dakota’s most well-known attraction, Theodore
Roosevelt National Park, welcomed nearly 650,000 visitors last
year, the most since 1982. Eileen Andes, park spokeswoman, says
another busy summer season is expected this year. The park is
working to establish an astronomy program and debuted sever-
al events last year, including full-moon hikes and astronomy
events. Those events will continue this season, along with an
inaugural astronomy festival to be held Sept. 27-29 in Medora.
32 Prairie Business Magazine May 2013
“We’re working with Medora [Area Convention and
Visitors Bureau] and the city of Medora on that, as well as
the Theodore Roosevelt Nature and History Association,
which is our cooperating association,” Andes says.
Oil patch activity has played a role in increased visi-
tation to the park and will likely continue to impact visita-
tion numbers this year, assisted by improved accommoda-
tion availability at nearby hotels. “There are a lot of folks
moving into the area with their families and children, and
national parks are always great for family activities,” Andes
says. “Last year and some of the year before, it was hard for
visitors to find hotel rooms. Now there are more hotel
rooms in the area so things should loosen up a little on
that front.”
North Dakota’s state parks have also experienced
growth in visitation, racking up nearly 1.2 million visitors
last year. In early April, Gordon Weixel, public information
officer for the North Dakota Parks and Recreation
Department, said reservations were slightly ahead of last
year and the number of inquiries received at spring sports
shows indicates a strong season is ahead. “People are real-
ly excited this year,” he says. “It’s been a long winter and
people want to get outside and get camping.”
MinnesotaIncreased consumer confidence stemming from a
recovering economy, stable Canadian exchange rates and
improved community marketing initiatives are all factors
in a positive outlook for tourism in northwest Minnesota
this year, according to David Bergman, spokesman for
Explore Minnesota Tourism. “I think it’s going to look
pretty good,” he says.
A survey of Minnesota tourism businesses conduct-
ed by the tourism department in January further indicates
a positive outlook for the season ahead. Of the businesses
responding to the survey, 42 percent say they expect
spring/summer occupancy rates to be better than last year,
47 percent expect rates to remain the same and only 10
percent predict a decrease in rates compared to 2012.
Similarly, 47 percent of respondents expect revenues to
increase this spring/summer compared to last year, while
only 11 percent anticipate decreased revenues this year.
Canadian visitation and resort activity are the two
most prominent sources of tourism revenue for the north-
west region of Minnesota, according to Bergman, but the
region is also experiencing growth in athletics travel and
community summer events. Tourism is “a significant play-
er” in the region’s economy and is becoming more recog-
nized by residents as an economic driver, which is resulting
in improved community marketing efforts, he says. Explore
Minnesota Tourism offers a variety of programs to assist
businesses and communities in marketing their services and
events, including a partnership program which communi-
ties can access for up to $4,000 in matching grants to sup-
port marketing campaigns. For individual businesses,
Bergman recommends utilizing the department’s website
— www.exploreminnesota.com — as a marketing tool. The
site boasts 3.1 million users annually and allows businesses
to list their services for free, with the option to purchase
additional advertising.
Attendance at Minnesota’s many state parks has also
been on a steady upward trend over the past several years,
with the exception of 2011 when a state government shut-
down forced parks to close for three weeks of the summer.
Last year, nearly 1.6 million people visited the 14 state
parks located in the northwest region of Minnesota. Itasca
State Park, which encompasses 32,000 acres and has
entrances near Park Rapids, Bemidji and Bagley, is by far
the most visited state park of the northwest region, draw-
ing more than 500,000 visitors in 2012. The second most-
visited park of the region, Lake Carlos State Park, located a
few miles north of Alexandria, recorded approximately
162,000 visitors last year.
Amy Barrett, communications project supervisor for
the Minnesota Department of Natural Resources parks
and trails division, says the department is anticipating a
strong year for attendance at Minnesota state parks, which
will provide an economic boost to surrounding commu-
nities. According to the DNR, visitors to Minnesota state
parks return $26.23 to local economies each day. PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
33www.prairiebizmag.com
34 Prairie Business Magazine May 2013
|AGRITOURISM|
Coteau des Prairies Lodge is perched on a ridge of hills at the northernmost point of the Coteau des Prairies in southeastern North Dakota.PHOTO: PHILLIP BREKER
35www.prairiebizmag.com
|AGRITOURISM|
Getting Backto the FarmAgritourism offers opportunity to visit rural rootsBY KRIS BEVILL
As more young people move from farm com-
munities to population centers and small
family farms are sold to larger operators, the
opportunity for agritourism — a term broadly used
to describe any type of farm or ranch-related activity
— is growing. The North Dakota Tourism Division
began emphasizing agritourism’s niche market in the
state a few years ago after recognizing demand from
young families and curious urbanites seeking to
explore rural life.
Dean Ihla, tourism development manager, says the
segment has grown recently, but there continues to be a
need for ag-based tourist businesses in the state. “People
expect to have more places in North Dakota because of
our strong agricultural base,” he says. “That’s changing.
We are getting more operators all the time.”
One factor that has allowed North Dakota’s agri-
tourism sector to expand is a bill passed during the 2011
state legislative session that provides agritourism opera-
tors with liability protection. The bill establishes that
participants assume risk by taking part in agritourism
and, therefore, the operator is not liable for injuries
incurred on property. To be covered under the law, agri-
tourism operators must register with the tourism divi-
sion and provide a notice to participants that the oper-
ator is not liable for participant injury from inherent
risk. There is no fee to register with the tourism division
and registrations are effective for five years. In exchange,
the tourism division supplies operators with signage
relaying the state law. The division also provides mar-
keting support for operators. This month, it is unveiling
a redesigned website, www.ndtourism.com, complete
with a section devoted to agritourism, which Ihla says
will help connect interested parties with the state’s agri-
tourism providers.
Of the 81 identified existing or potential agri-
tourism businesses within the state, 25 operators are
currently registered with the division, Ihla says. Seven of
the registered operators are new businesses. It’s not clear
whether the liability law was the deciding factor in the
creation of all the new businesses, but Ihla says many
operators have said the law provides them a level of
comfort. “The other thing we hope happens is that as
time goes on, companies are more comfortable with
insuring these types of operations so that over time this
may open up the marketplace and lower the cost [of
insurance],” he says.
The tourism division maintains a presence in the
agritourism industry by regularly collaborating with
agritourism-related groups, including the North Dakota
Grape and Wine Association, Pride of Dakota and the
North Dakota Farmers Market and Growers
Association. The department participates in cross mar-
keting with the groups and actively recruits group
members for the state program. “We’re still a new seg-
ment of tourism so a lot of it right now is about devel-
opment and growth,” Ihla says.
Currently, agritourism businesses in North Dakota
are spread fairly evenly through the state, including
ranches in the west, vineyards in the east and variety of
other offerings scattered throughout. The tourism divi-
sion would like to expand the number of large-scale
grain farm tours because it is a unique aspect of the
state. However, because agriculture is experiencing a
period of increased profitability, interest from potential
operators has dropped compared to when commodity
prices were low. “We’re in a cycle where things are pret-
ty good and everybody’s kind of happy with the way
things are,” Ihla says. “We’re seeing more hobby farms
and crops such as fruit and vegetables that are getting
36 Prairie Business Magazine May 2013
|AGRITOURISM|
involved in agritourism as opposed to large-scale
grain operations.”
The Breker family of Havana, N.D., is an exception
to the situation. The family has farmed in southeast
North Dakota for five generations and currently grows
corn, winter wheat, soybeans and specialty crops such as
radish for seed on 3,000 acres in addition to raising
about 100 head of Angus beef cattle. Last October, after
two years of planning and building, the family added
lodging and farm tours to its list of duties with the
opening of Coteau des Prairies Lodge LLC
(www.cdplodge.com).
“It’s been a long-time dream of our family to build
a lodge in this pasture that we own for grazing our cat-
tle,” says Phillip Breker, who serves as website and social
media administrator for the family venture. “Seldom do
folks get out this way because it’s off the beaten path, but
it’s such a beautiful part of the state.”
The lodge was built using Ponderosa pine from
western North Dakota and consists of nine bedrooms
and a three-room suite as well as an impressive great
room and kitchen designed to accommodate large
gatherings, a wrap-around porch and a look-out perch
for visitors to soak in the landscape. The entire project
was a labor of love, with family members including
Phillip’s parents, Joe and Patty, and sister, Olivia,
investing sweat equity into the building of the lodge
nearly every day for two years. The financial cost of the
project was more than $1 million, most of which was
funded through investments made by family and
friends, Breker says. A PACE (Partnership in Assisting
Community Expansion) loan from the Bank of North
Dakota, with participation by the Sargent County
Bank and the local Jobs Development Authority, cov-
ered the remaining portion of the costs. “That was
huge for us,” Breker says. “Having that low-interest
loan in these early years when there’s a lot of unknowns
about how much revenue will be generated to pay back
the loan … that’s huge.”
While the overall project cost was quite large,
Breker says the business plan was designed to minimize
risk for investors. “No single investor is counting on a
profit to make a living, but if it does take off it’s going to
be a lot of fun and a great adventure,” he says. “We have
no guarantee that this is going to work. We’re just work-
ing hard and planning for the best.”
The lodge has already hosted a number of gather-
ings since opening last fall and has several weddings
booked for the summer, according to Breker. The fami-
ly will gradually expand the business as dictated by
demand, including first-hand farm and ranch experi-
ences and tours, and horse-drawn buggy and sleigh
rides. They are also developing a unique dining experi-
ence which may feature dry-aged “story beef” from the
family’s herd.
Breker says the state’s liability protection was the
deciding factor in the family’s decision to move forward
with the agritourism side of the business. “If you want
guests to have an authentic experience, there’s potential-
ly a lot of liability in bringing people out on a working
farm,” he says. “I think [the legislation] was a great idea
and it definitely gave us a lot of confidence.”
The Brekers’ desire to share their scenic views and
rural North Dakota experience with people who other-
wise may never have the opportunity fits perfectly with
the tourism division’s desire to focus on agritourism
businesses that play up the state’s unique offerings. The
division awarded Coteau des Prairies Lodge with a
grant to assist in marketing efforts and has been active-
ly promoting the lodge and the geographic region of
the state in its publications this year. “One thing we like
most about the tourism department is how excited they
have been for us,” Breker says. “We feel like they will be
a great partner.”
Ihla says many agritourism providers start slow,
offering tours or services by appointment to test the
waters and determine whether demand will support a
full-fledged venture. The tourism division allows
providers to list their services on its website, including
contact information so that potential customers can
arrange appointments. The division is doing what it can
to encourage growth from both sides of agritourism —
operators and public participants — and Ihla suggests
that potential operators consider what they may have to
offer that can be developed into an agritourism destina-
tion. “Agritourism is kind of a broad category,” he says.
“It can be ranching, it can be a vineyard, it can be a bed
and breakfast in the middle of the country. It can be
whatever you want it to be.” PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
37www.prairiebizmag.com
If you haven’t had a chance to meet in Minot, you really should. With state-of-the-art meeting facilities and the recent addition of over ten new hotels, Minot is the obvious place to plan your next convention or conference. We’re ready for you.
visitminot.org1.800.264.2626
38 Prairie Business Magazine May 2013
|TRANSPORTATION|
The Fargo Jet Center is one of several fixedbase operators in the area experiencingincreased business as a result of air traveldemands from commercial and private aircraftoperators. PHOTO: FARGO JET CENTER INC.
Commercial air travel continues to
increase in North Dakota, as
demonstrated by record-break-
ing enplanement numbers and newly
added flights at many of the state’s air-
ports. But the effects of increased com-
mercial air travel have also impacted the
area’s fixed base operators (FBOs),
boosting business and allowing for
expansions to further support the area’s
appetite for flight.
Darren Hall, vice president of mar-
keting at Fargo Jet Center Inc., says fuel
sales, which are the largest segment of
FJC’s business, were actually down slightly
last year compared to 2011, but charter
flight activity was up by 22 percent, indi-
cating that local demand for air services
continues to grow while businesses on the
U.S. coasts are continuing to recover from
the recession and are travelling less fre-
quently. Still, FJC served more than 3,500
customers in the past year.
Private aviation services, including
aircraft sales and management, have proven
to be a booming business for FJC recently.
The number of customers who base their
planes at FJC’s facility has increased by
more than 20 percent and aircraft sales are
also on the rise. FJC’s sales segment,
Exclusive Aviation, sold 32 planes last year,
ranging from small, single-engine aircraft
to corporate jets. “The people who operate
airplanes in Fargo are flying them more
often and some are routinely going out to
western North Dakota,” Hall says. “But
there’s also been an increase in people get-
ting into aviation because their business is
doing so well.”
FJC employs 14 pilots for its charter
business and has experienced a bump in
demand recently as a result of oil patch
activities in the western part of the state.
Hall attributes the increased demand to the
Up, up and awayFBO businesses grow asregion’s air travel demandscontinue to climbBY KRIS BEVILL
39www.prairiebizmag.com
|TRANSPORTATION|
center’s charter fleet, which includes a Bombardier Learjet 60, a
Cessna Citation SII, and a variety of Beechcraft King Air models,
some of which are leased from jet center clients.
After eyeing the Williston, N.D., market for several years, FJC
recently decided to expand to the area and will open the Williston Jet
Center this summer, offering the same range of services to clients
there as it does in Fargo.
Hall is hesitant to predict the amount of business WJC will han-
dle in its first year, but says the corporate side of air travel in Williston
is comparable to Fargo and many of the private aircraft flying into
Williston are FJC customers, so the company hopes to earn their con-
tinued business at its new location.
FBOs in western North Dakota have also been experiencing
continuous growth as demands for fuel and services increase. Pietsch
Aircraft Restoration and Repair took over ownership of the Minot
Aero Center from the city of Minot about three and half years ago
and has been expanding the business ever since, according to line
manager Shelley Cole. “It’s been growing considerably and continu-
ously,” he says.
Increased traffic at Minot International Airport has been a
major contributor to the expansion of the Minot Aero Center as the
number of commercial flights at the airport has grown from just
three per day a few years ago to approximately 12 per day. Cole says
the aero center pumps about 10,000 gallons of jet fuel per day for
commercial airlines and general aviation customers and has added
staff every year for the past several years. It currently employs about
30 people, including fueling staff, customer service personnel and
maintenance crews.
Bismarck-based FBO Executive Air Taxi Corp. has experienced
a 30 percent increase in business just in the last year, much of it from
companies supporting oil activities in western North Dakota, says
Paul Vetter, chief operating officer. He says the majority of Executive
Air’s current flights cover the upper Midwest, but it occasionally
delivers customers as far south as Oklahoma, Texas and elsewhere.
Based on customer feedback and anticipated future business
demands, the company recently added two larger aircraft to its fleet, a
Beechcraft King Air 200 and a Beechcraft King Air C90, in order to
provide longer-distance flight capabilities for its clients. “We can fly
anywhere in North America with the new planes,” he says. “[They]
give us a lot more range.” PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
40 Prairie Business Magazine May 2013
|SOUTH DAKOTA|
Eagle Creek SoftwareServices President KenBehrendt addresses atten-dees at a March 13 pressconference to announce apartnership to launch theInformation TechnologyConsultant Academy. Alsoshown: Tena Haraldson andJames Abbott of theUniversity of South Dakotaand South Dakota Gov.Dennis Daugaard. PHOTO:AARON PACKARD, UNIVER-SITY OF SOUTH DAKOTA
Eagle Creek Software Services is a firm believer in
the Dakotas, so much so that the company has
branded its service strategy the “Dakota Model”
to reflect its dedication to providing top-notch client
service from technology center locations in the area. The
Minneapolis-based onshore information technology
services provider delved into the Dakotas about eight
years ago when it opened its first project center in Valley
City, N.D. Two years later, the company opened a center in
Pierre, S.D., and it now employs about 170 workers
between the two locations, providing technical expertise in
CRM, information management and applications devel-
opment to Fortune 2000 clients throughout the world.
Ken Behrendt, company president, says it is the
states’ commitment to working with businesses like Eagle
Creek and the quality of the area’s workforce that make the
Dakota Model successful. “North and South Dakota can
compete against anybody in the world,” he says. “They
have great resources. We deliver quality and North and
South Dakota deliver it back.”
The strategy has been successful enough to warrant a
rather rapid expansion plan over the next few years, with
South Dakota being the chosen state to house up to 1,000
new employees at several new project centers, beginning in
Vermillion, S.D. The company recently announced a part-
nership with the state and the city of Vermillion to con-
struct a $10 million technology center there, which will
house 200 workers when fully staffed in 2015. But while
the quality of workers is apparent, South Dakota, like the
rest of the U.S., is short on available workers who possess
the technological skills needed by companies like Eagle
Creek. To address that issue, the company has formed a
partnership with the Board of Regents and the University
of South Dakota to launch the Information Technology
Consultant Academy, which will offer undergraduate and
master’s degree IT programs and scholarship opportuni-
ties geared toward training a local workforce that can fill
Eagle Creek’s ongoing demand for skilled workers.
Educating for expansionIT services provider teams with university system to train workers for new locations BY KRIS BEVILL
41www.prairiebizmag.com
|SOUTH DAKOTA|
Eagle Creek, the state and the city of Vermillion will share the
costs of establishing the technology center. Behrendt says Eagle
Creek has already begun recruiting staff for the Vermillion center,
which will begin operating in a temporary facility later this year and
will ramp up to a staff of 200 by the second half of 2015.
“The challenges of today’s job market call for new skills and
approaches,” James Abbott, president of USD, said. “Our mission as
a university should be to prepare students to succeed in an increas-
ingly high-tech workforce. The Information Technology Consultant
Academy will put students on a career path for success.”
Behrendt says aligning with the university system offers sever-
al benefits to Eagle Creek, including recruitment assistance and
technology expansions to better serve its customers. “They can help
us through course development and curriculum and expand the
breadth and depth of our technology offerings,” he says.
The IT Consultant Academy will begin accepting students this
fall in two programs — an undergraduate certificate program and a
master’s degree program. Both programs provide scholarships for
participants and guaranteed job interviews at Eagle Creek. The under-
grad program also includes a three-month paid internship with the
company. Behrendt says he expects each program to produce 20 to 25
potential new employees each year when the academy is fully engaged,
and Eagle Creek hopes to hire as many of those graduates as possible.
“We’re doing this because we want to fill the pipeline of resources for
the company,” he says. “We want to recruit as many as possible out of
[the university system]. Effectively, we’re investing money in there and
so we want that return.”
Graduates of the IT Consultant Academy will not be required to
work at Eagle Creek, however, and the broad-based technology skills
gained through the program would allow them to work at any main-
stream IT company, according to Behrendt. “Anybody who comes
into the program and graduates can work literally anywhere in the
U.S.,” he says. “They are in-demand, high-demand technologies.”
Meanwhile, Eagle Creek is continuing to work with the state
and its university system to identify locations to accommodate the
company’s further expansion. Behrendt says the company’s first
preference is to align with communities that have universities, which
makes Aberdeen and Rapid City attractive possibilities. However,
the company must also consider the limitations of communities and
the economies of scale when working to meet a goal of 1,000 new
employees. “You can’t build 10, 100-person project centers,”
Behrendt says. “You’d really want to build a larger one, one that can
incorporate 300 to 400 people. In South Dakota, that means we
would like to see a community like Sioux Falls or Rapid City partic-
ipate in this.”
The company expects to select sites for additional locations
within the next two to three years, depending on demand. PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
42 Prairie Business Magazine May 2013
|WESTERN NORTH DAKOTA|
The Williston AreaDevelopment Foundation ispromoting the positiveaspects of life in the oilpatch town through a mar-keting campaign called“Build a Better Tomorrow.”PHOTO: CHUCK COUTUREPHOTOGRAPHY
It’s not easy living in North Dakota’s oil patch.
While the boom offers benefits for many, the day-
to-day stress of life in the fastest growing region
of the U.S. is taking its toll on residents, some of
whom are choosing to pack up and leave rather than
wait it out. Recognizing the frustration of local resi-
dents, the Williston Area Development Foundation,
which includes representatives from the city commis-
sion, the economic development office, the Williston
Area Chamber of Commerce, local businesses and
higher education institutions, recently launched a
marketing campaign developed by Odney Advertising
dubbed “Build a Better Tomorrow” to promote the
positive changes taking place and to assure residents
that the situation will continue to improve.
“What we’re trying to do is provide some hope to
our existing residents that it’s going to be a better
tomorrow,” says Shawn Wenko, assistant director of
Williston Economic Development. “We’re not where
we need to be yet, but we’re getting there.”
A major focus of the campaign will be promoting
the city’s quality of life, which Wenko says includes
items that are important to families — top-notch med-
ical care, good schools and parks and recreation. He
touts the rapidly expanding Mercy Medical Center and
construction of a $72 million rec center, expected to be
complete next year, as evidence that the community is
taking steps in the right direction. “There are some
challenges, but it’s getting better every day,” he says.
Diversification of the workforce is another area of
focus and is necessary to allow the city’s restaurant and
retail sectors to continue to expand. “As we catch up
with housing I think you’re going to see a more diverse
labor pool come into the area and that’s going to help a
lot with area businesses,” Wenko says.
Although it’s located on the fringe of the oil patch,
Minot, N.D., has also experienced significant growth in
the past few years and is battling similar issues related to
public perception and housing and workforce short-
ages. The Minot Area Development Corp. has been
addressing those issues for several years already, says
MADC President Jerry Chavez, but recently formally
adopted a series of recommendations to continue that
effort. The recommendations stemmed from a plan-
ning session facilitated by Odney Advertising late last
year during which nearly 50 community leaders joined
Promoting the positivesCampaigns focus on quality of life in oil patchBY KRIS BEVILL
43www.prairiebizmag.com
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|WESTERN NORTH DAKOTA|to discuss the future of Minot and MADC’s role in shaping that future.
The group largely agreed that continued diversification of Minot’s econ-
omy should remain a key focus and can be accomplished through qual-
ity of life improvements.
“We as a community and as an organization recognize that our
ability to bring new businesses to town is hinged very highly on advanc-
ing our quality of life,” Chavez says.
Like other western North Dakota towns, Minot’s quality of life
improvements are part of a larger effort to attract and retain young fam-
ilies. One of the most immediate and pressing hurdles is the lack of
affordable housing.
“What we want to do is create a home and a price point whereby
the average worker can purchase,” Chavez says. “Today we don’t have that
and we’re struggling to get there, but we have some very strong initiatives
that we’ll be unveiling this spring that will be able to address those issues.”
A report compiled by Odney based on discussion at the Minot
planning session states that Minot has experienced 20 years of growth in
the past five years. “As a city that may already be exceeding 50,000 peo-
ple, Minot can’t afford to just let development happen,” the report stat-
ed. “Again, it’s about working to get the city you want instead of letting
development determine the kind of city Minot becomes.” PB
Kris Bevill
Editor, Prairie Business
701-306-8561, [email protected]
44 Prairie Business Magazine May 2013
Paragon Water Solutions provides water treatment services for oil drilling companies in western North Dakota. PHOTO: AIMEE ERDMAN
Problem solvers Couple forms water treatment company to serve oil industryBY AIMEE ERDMAN
Everyone knows oil and water don’t mix. But in the oil patch, you can’t get
one without the other. Water is a huge part of the oil drilling process —
and a huge problem. That’s where companies like Paragon Water
Solutions come in.
Two years ago Dale Bercier was working for an oil company and noticed the large
amounts of water being hauled off rig sites. “They weren’t solving the problem. They
were just moving it somewhere else,” he says. “I knew there had to be a better way to
handle all that water.”
So Dale and his wife Angela launched Paragon Water Solutions to address the
problem. Dale researched different processing methods and equipment and settled on
the ALAR Auto-Vac filtration drum, which can be used to process drilling water to
produce clean, environmentally safe water and a grainy solid that is safe for landfill
45www.prairiebizmag.com
|ENERGY|
disposal. The processed water can be re-used in the drilling process, saving the
drilling company money on water and transportation costs.
“ALAR is in all kinds of industries,” Dale says. “But the unit is always inside, in
a factory. It wasn’t designed to be portable. So that was our next problem to solve.”
The solution meant fabricating a trailer that would accommodate the size of
the ALAR unit. It also meant they had to get special permits to haul the oversized
trailer down the road, which were initially denied.
Financing was also a struggle. Because they didn’t have a master signed agree-
ment (MSA) with even one company, no bank would give the company a loan, so
the couple used whatever resources they had at their disposal to bring what they
believed to be an important service to the oil patch. “We took out a second mortgage
on our house,” Angela says. “I’ve always been an environmentalist, and I knew there
had to be a better way than dumping this stuff back in the ground.”
After working through many obstacles, the couple began to score clients.
“Continental Resources was our first client,” Angela says. “It was our pilot project.
After that it was a lot of word of mouth.”
According to Angela, a typical well requires 1,500 barrels of water.
Paragon's process can be used to reuse most, if not all, of that water, saving the
driller money on water disposal and replacement costs. The company also touts
a cost savings compared to other disposal methods, charging $20 per barrel to
process compared to an estimated $45 to $65 per barrel to truck and dispose of
contaminated water.
The pair’s persistence in addressing some of the oil patch’s water issues
began to pay off in a big way rather quickly. “Our first year we had $4 million in
revenue,” Angela says. “And then it was the time of year companies were locking
up their MSAs, so we were able to get financing for another unit.”
Now the company has 10 MSAs and is working on getting a third unit.
It has also partnered with the ALAR company to be the sole distributor of this
system in the Rocky Mountain region and employs up to 50 people.
“Our next challenge is to work with frack water,” Angela says. “And we’ve start-
ed working with processing diesel mud using a vertical centrifuge. Our process
doesn’t require any fly ash and it saves the company an average of $80,000 per well.”
The couple’s entrepreneurial drive and ingenuity has served them well in the
early years of the company, and they’re not done yet. “I know there is a use for the
byproduct from the cleaning process,” she says. “We just have to figure it out.” PB
Aimee ErdmanContributing writer
"I knew there had tobe a better way tohandle all that water."
- Dale Bercier, co-owner, Paragon Water Solutions
46 Prairie Business Magazine May 2013
|ENERGY|
The amount of natural gas being flared at oil wells in
western North Dakota continues to hover at around
30 percent, but recent advances made by the industry
to increase gathering and processing capacity may help to
reduce flaring.
On April 9, ONEOK Partners LP, the largest independent
operator of natural gas gathering and processing facilities in the
Williston Basin, announced that its newest natural gas process-
ing facility in the region has begun operating. The 100 million
cubic feet per day Stateline II plant, located in western Williams
County, is the third new gas processing facility completed by the
company since 2011. The plant cost between $135 million and
$150 to complete, according to the company, and brings the
company’s total processing capacity in the region to 390 million
cubic feet per day, up from 90 million cubic feet per day just two
years ago.
Additionally, ONEOK Partners has completed a 600-mile
pipeline capable of transporting 60,000 barrels per day of
unfractionated natural gas liquids (NGLs) from processing
plants in the Williston Basin to an interconnection with a
pipeline in northern Colorado, where the product can then be
delivered to ONEOK Partner’s fractionation and storage facili-
ties in Kansas.
According to ONEOK Partners, the pipeline cost between
$450 million and $550 million. The company is also investing an
additional $100 million to install pump stations along the
pipeline which will increase its capacity to 135,000 barrels per
day. The expansion is expected to be complete next year.
“The Bakken NGL Pipeline is the first pipeline to transport
natural gas liquids from the Williston Basin to NGL fractiona-
tion and storage infrastructure in the Mid-Continent and Texas
Gulf Coast,” Terry Spencer, president of ONEOK Partners, said
in a statement. “This project and our continued investments in
the Williston Basin reflect our commitment to provide produc-
ers with the essential NGL infrastructure needed as they contin-
ue to develop the Bakken Shale and Three Forks formation.”
A summary of oil patch activity released April 16 by Lynn
Helms, director of the North Dakota Industrial Commission
Department of Mineral Resources, shows that natural gas pro-
duction at the state’s wells increased by about 7 percent in
February, compared to an increase in oil production of about
5.5 percent, which is in line with expectations that gas to oil
ratios will increase at Bakken wells as they age. Helms noted that
gathering and processing capacity did not keep up with produc-
tion during that time, so the percentage of flared gas rose to 30.4
percent, compared to 29 percent the previous month. PB
Kris BevillEditor, Prairie Business
701-306-8561, [email protected]
Building out gas capacityONEOK Partners completes additional plant, pipeline for natural gas liquidsBY KRIS BEVILL
47www.prairiebizmag.com
|BUSINESS TO BUSINESS|PRAIRIE BUSINESS
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48 Prairie Business Magazine May 2013 48www.prairiebizmag.com
Employment UNEMPLOYMENT RATE EMPLOYMENTJan-12 Jan-11 Jan-12 Jan-11
North Dakota 3.30% 3.10% 383,748 376,438Bismarck MSA 4.1 3.8 57,434 59,863Fargo MSA 4.7 4.1 113,263 115,951Grand Forks MSA 5.3 5.1 50,959 50,921Dickinson MiSA 2.1 2.1 20,626 17,314Jamestown MiSA 4.9 4.2 9,790 10,161Minot MiSA 4.3 3.7 34,455 32,632Wahpeton MiSA 5.5 5.2 10,960 11,056Williston MiSA 1 0.8 38,803 29,878South Dakota 4.30% 4.40% 427,880 426,209Rapid City MSA 5.2 4.7 61,144 62,727Sioux Falls MSA 4.5 4.5 125,417 124,372Aberdeen MiSA 4.1 3.8 21,871 21,962Brookings MiSA 3.9 3.9 17,668 18,076Huron MiSA 4.7 3.7 9,420 9,437Mitchell MiSA 4.3 3.9 12,520 12,450Pierre MiSA 3.5 3.3 11,629 11,799Spearfish MiSA 5.1 4.9 11,785 12,463Vermillion MiSA 4.2 3.4 7,367 7,442Watertown MiSA 5 4.6 18,039 17,978Yankton MiSA 4.5 4 11,107 11,073Minnesota 5.50% 5.70% 2,819,298 2,797,420Minneapolis-St. Paul MSA 5.1 5.5 1,762,526 1,751,893Alexandria MiSA 6.2 6.1 19,411 19,391Bemidji MiSA 9 8.2 20,170 20,942Brainerd MiSA 10.8 10 39,976 42,124Fairmont MiSA 6.6 6.1 10,247 10,647Fergus Falls MiSA 8.2 7.3 27,735 28,394Hutchinson MiSA 8.6 8 17,568 18,714Marshall MiSA 6.1 5.3 13,935 14,393Red Wing MiSA 6.7 6.3 24,196 24,666Willmar MiSA 6.9 6.4 22,344 22,630Winona MiSA 5.9 5.3 27,659 28,116Worthington MiSA 5.3 4.9 10,881 11,131
Exchange
Interest Rates
Jan-13Jan-12
185200
87.8988.09
Average Rig Count
Jan-13Jan-12
8,3226,624
738,022546,218
218170
ProducingWells
AverageDaily
ProductionTotal
Permits
Oil Production
|BY THE NUMBERS| | SPONSORED BY |
Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014
1.6
1.5
1.4
1.3
1.2
1.1
1
0.9
Cana
dian
Dol
lars
to O
ne U
.S. D
olla
r
Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014
1.6
1.5
1.4
1.3
1.2
1.1
1
0.9
Cana
dian
Dol
lars
to O
ne U
.S. D
olla
r
2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2
300,000
250,000
200,000
150,000
100,000
50,000
0
Num
ber o
f em
ploy
ed in
divi
uals
MinnesotaNorth DakotaSouth Dakota
2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2
12
10
8
6
4
2
0
Perc
ent
MN (2011) ND(2010) SD(2010)
18
16
14
12
10
8
6
4
2
0
Tota
l eco
nom
ic im
pact
, bill
ions
$
Total Tourism Employment
Tourism Share of Total Employment(M.N., N.D., S.D.)
Tourism Economic Impact
Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at [email protected].
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