www.prairiebizmag.com
August 2012
ALSOTech School TrendsTwo-year schools makingaccommodations to meetworkforce needspg. 28
Oil Boom OriginHydraulic fracturing, horizontaldrilling key to Oil Patch successpg. 32
ProgressivePartnerships
More businesses forming researchand development collaborations
with colleges, universitiespg. 24
North Dakota. Doing Business Better.
Great River Energy chose North Dakota as the site of three power plants for twoprimary reasons: the state’s ample energy sources and its business-friendlyenvironment. This has helped Great River Energy generate and transmit reliable,competitive and environmentally friendly electricity over four decades. Learn howthe North Dakota Department of Commerce and companies in the state aredoing business better at www.NDBusiness.com
Photo courtesy of Great River Energy
4 Prairie Business Magazine August 2012
|INSIDE|AUGUST ISSUE 2012 VOL 13 ISSUE 8
FEATURES DEPARTMENTS6 Editor’s Note
BY ALAN VAN ORMER
Research and Development bringprivate companies, universitiestogether
8 Business AdviceBY MATTHEW D. MOHR
Looking for smart employeeswho want to work
10 FinanceBY DAN HANNAHER
SBA launches renewed,simplified loan products
12 Research & TechnologyBY BRUCE RAFERT
Public, private partnershipstied to business success
14 Economic DevelopmentBY PAT COSTELLO
GOED renews focuson international markets
16 Prairie News
20 Prairie People
22 Business DevelopmentMarketing planshowcasing Grand Forks
34 Red River ValleyRed River Valley in the‘cloud’
36 South DakotaAvera plans to expand
38 Western North DakotaHousing/business projectplanned in western N.D.
40 Energy
46 Business to Business
Next MonthIn September's transportation issue, Prairie Business will offer an update on the expanding air travel and railway infrastructure throughoutthe region, including new airline carrier services in Williston, airport expansions throughout the region and newly built rail amenities toaccommodate increased demands from multiple industrial sectors. The issue will also include an examination of plans to expandDickinson, N.D., as a result of booming oil production, and how lessons learned from past growth cycles will influence the latest build-out.
On the CoverAditi Kondhia, a graduate student in theApplied Crop Genetics and Genomicslaboratory and in the Winter WheatBreeding Program (or SDSU WheatGroup) at SDSU, harvest seed from awheat population developed to study thegenetics of resistance to orange wheatblossom midge in wheat.PHOTO: ALAN VAN ORMER
24 HIGHER EDUCATIONMeeting of the MindsResearch and development partnerships betweenprivate companies and universities benefit both
WORKFORCE DEVELOPMENTTracking the Job MarketAg, energy, health care, socialmediamarketingandwelding popular areas of study at tech schools
TECHNOLOGYGame-Changing TechnologyHydraulic fracturing and horizontaldrilling driving profits in theOil Patch
28
32
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6 Prairie Business Magazine August 2012
|EDITOR’S NOTE|
ALANVAN [email protected]
R&Dbrings privatecompanies, universities together
It’s that time of year when Prairie Business magazine discusses what is happening in the higher education
environment. This month’s cover story is about how companies are utilizing colleges and universities to
help with their research needs.
Using higher education institutions such as North Dakota State University in Fargo, the University of North
Dakota inGrand Forks and SouthDakota StateUniversity in Brookings, is becoming common for companies that
are looking for faculty and staff to help bring their products to commercialization.
It is occurring across the nation, as well. Dwaine Chapel, executive director of the SDSU Innovation
Campus, attended a national bioconference in Boston recently. During that conference, Chapel learned that
39 percent of companies will be merging and doing research together, while 41 percent were turning toward
university relationships and 20 percent were still doing their own research and development.
Our region is seeing that growth. For example, the South Dakota Board of Regents has been keeping track
of research awards since 2000. In 2002, there were 920 awards submitted, 702 awarded for more than $172 mil-
lion. In 2011, the latest data gathered as of July 6, there were more than 1,100 awards submitted, 772 awarded
for more than $426 million. The total research expenditures from grants and contracts in 2007 were more than
$74 million. In 2011, that number jumped to more than $124 million.
At NDSU, the campus has been seeing a high volume of com-
panies involved with research and technology for at least a decade.
In the past six years, NDSU has developed more than 330 research
contracts with the private sector and more than 1,800 federal con-
tracts. In addition, there are significant numbers of students
involved in some type of research with companies on campus. The
school has had or has 35 private sector research partners. In addi-
tion, NDSU ranks in the top 108 universities in the nation with
high research activity, according to Carnegie Commission on
Higher Education.
And the companies are benefitting.Many will tell you that the
reason they are choosing a region or a community is because of the
expertise and knowledge that are available at universities in the
region. It provides them an opportunity to float ideas by faculty
and staff, work with universities to improve a product, use the
research expertise and hire quality graduates and use the technolo-
gy and equipment available on campus to test those products.
As you can tell, it is working.Now, the challenge is to continue
this success with the challenges that lie ahead in the future.
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7www.prairiebizmag.com
An SBA Award Winning Publication
MIKEJACOBS, PublisherALANVANORMER, EditorTINAFETSCH, Production ManagerBETHBOHLMAN, Circulation ManagerJENBRAATEN, Marketing ManagerJOEGREENWOOD, Multi-Media ConsultantKRISWOLFF, Layout Design, Ad Design
Sales Director:JOHNFETSCH - eastern ND/MN/eastern SD701.212.1026 [email protected]
Sales:BRADBOYD - western ND/western SD800.641.0683 [email protected]
SHELLYLARSON - eastern ND/western MN701.212.1026 [email protected]
Editor:ALANVANORMER701.371.9578 [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;NancyStraw, 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 atwww.prairiebizmag.com
Address correctionsPrairie Business magazinePO Box 6008Grand Forks, ND 58206-6008Beth Bohlman: [email protected]
Onlinewww.prairiebizmag.com
8 Prairie Business Magazine August 2012
|BUSINESS ADVICE|
Looking for smartemployeeswhowant toworkBYMATTHEWD.MOHR
In the spring we conduct graduation ceremonies for our
students who complete a level of their formal education.
Graduation isamilestoneandasteppingstone fora future
career. In the fall, our schools are filled with the excitement of
new students seeking bright futures. The better educated are
usually rewardedthroughlifewith larger incomesandwhatare
considered better jobs and lifelong careers.
Unfortunately, our strong reliance on formal educa-
tion has led many to believe a degree is what is needed to
command an income regardless of what the educationmay
have entailed. What one knows (education) does matter,
but it is what one does (produces) with that knowledge
that provides economic gain.
A large part of why Midwesterners are valued as
employees is because of their strong work ethic. In addi-
tion to the willingness to work, we have also accelerated
our general level of education. Midwesterners are viewed
as both smart and hard working. Although one person
may know more than another; pay is based on what is
produced.
A person can be themost knowledgeable in theworld
about the color of eyes in fish, but unless the knowledge is
worthwhile in raising, catching and marketing those fish,
the knowledge is worthless. If a person uses their fish eye
knowledge to raise better,more valued fish or create better
fishing lures, then a good income can be earned. Pure
knowledge of fish eye colorization is of little value.
Although someone may know more about some-
thing than someone else, smart employers pay for the use
of that knowledge to produce bigger, better results.
When looking for employees, look for those who are
smart and want to work. PB
MatthewD.MohrCEO, Dacotah Paper Co.
It’s a competitive world. Train for it.
Williston State College Lake Region State CollegeNorth Dakota State College of Science Bismarck State College
Powered by:
www.trainnd.com
TrainND provides training for NorthDakota business and industry, enhancing
their ability to compete globally.
We’re looking for highly qualified peoplein these industries:
Customer Service RepresentativesFiber Glass FabricationMetal FabricationEmployment VerificationPrinting & Press OperationsElectronics ProductionHealthcareWelding
For further information contact the SDDepartment of Labor at 605.626.2340 ordlr.sd.gov and www.aberdeensd.com
Aberdeenis Growing!!
9www.prairiebizmag.com
• Civil Engineering• Land Planning• Topography• Materials Testing• QC Construction
Management• Municipal
Engineering• Oil Service Pipeline
Design
• Land Surveying &Construction Staking
• Land Planning &Subdivision Design
• Water ResourceManagement
• Environmental &ArcheologicalStudies
• Etc.
JEFF AMES, Project ManagerC: 801-694-7756 TF: 855-774-EPIC(3742) O:701-774-5200
[email protected] • www.epiceng.net"Sustainability is Epic"
10 Prairie Business Magazine August 2012
|FINANCE|
SBA launches renewed,simplified loan productsBYDANHANNAHER
Ourdistrictoffices located inthehighplainsregion
are all committed to one common goal: market
Small Business Administration loan products to
as many urban and rural lenders and small businesses as
possible. We find that once the benefits of working with
guaranteed loans are fully understood, lenders often jump
on the SBAbandwagon.
At SBA,we have created loan products in response
to grassroots private and public sector input. In partic-
ular, we exchange ideas with banks, credit unions, certi-
fied developmen companies, chambers and various
lender associations daily, resulting in collaborative
products and services demanded by small business.
The lessonwe learned over the last couple of years:
keep it simple and in line with what the lending com-
munity knows works best for their customers.
One of our most popular lending programs in the
region is SBAExpress. Providing a 50 percent guarantee,
it gives small business borrowers an accelerated turn-
around time for SBA’s review. You will receive a
response to your application within 36 hours. In addi-
tion, lower interest rates are often available when banks
underwrite through an Express program. For this fiscal
year, as of June 15, SBA has guaranteed the following:
· 85 express loans valued at $6.58 million in
Montana
· 71 express loans valued at $6.34 million in
North Dakota
· 39 express loans valued at $2.98 million in
South Dakota
· 29 express loans valued at $2.37 million in
Wyoming
Heather Knutson, loan officer for Vision Bank in
Fargo, N.D., says SBAExpress is an easy and simple
loan program because it can be used with the bank’s
own underwriting documents. Vision Bank has
processed loans ranging from $3,000 to $350,000;
many of them start-ups.
Other lenders have said that SBAExpress increases
the flow of capital in rural communities because the
guarantee mitigates risk.
Myron Aune, business service manager of Capital
Credit Union in Bismarck, N.D., says SBAExpress is a
good fit because it is quick, convenient and allows the
credit union to meet the needs of small businesses and
manage the risk to the credit union. The program also
plays a pivotal role in rural development because it
increases the credit union’s ability to help local busi-
nesses, including start-ups.
It can be tough for small businesses to manage
their cash flows. They’ve got payrolls to meet, inventory
to buy and customers to please.A revolving line of cred-
it could help small businesses manage their cash cycle.
This is why SBA re-engineered the Capital Lines
(CAPLines) program based on advice from hundreds
of different lenders around the country.
The CAPLines provides a path for these small
businesses to finance contracts while avoiding high-
interest rates through an SBA revolving line of credit.
We expect demand for this product to increase as more
lenders are trained and grasp its benefits. Early fiscal
2012 numbers for CAPLines as of June 15:
� Six CAPLines for $3.7 million in total loans in
Montana
� Three CAPLines for $4.15 million in total loans
in North Dakota
� Two CAPLines for $650,000 in total loans in
Wyoming
SBA is here to help, and we are constantly looking
for ways to provide access and opportunity to the
American small business owner. We encourage poten-
tial borrowers to connect to SBA Direct to find SBA
lenders in your geographic area: www.sba.gov/sba-
direct/. PB
DanHannaherRegional Administrator, Region VIII, SBA
303-844-0505, [email protected]
11www.prairiebizmag.com
TThhee rriigghhtt pprroodduuccttssffoorr tthhee jjoobb
Make an investment in education by creating a clean andhealthy environment to learn.
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Your source of supply for environmentally preferred, dye andfragrance free products formulated to help maintain safe,healthy and sustainable facilities.
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12 Prairie Business Magazine August 2012
|TECHNOLOGY|
Public, private partnershipstied to business successBY J. BRUCERAFERT
Public and private partnerships have provided a
stalwart way to achieve innovation, while pro-
moting economic development and business
success. Research discoveries, coupled with determina-
tion in laboratories, classrooms, dorm rooms, base-
ments and garages, have led to scientific advances and
business innovations. Many people define public and
private partnerships as those based on research collab-
orations. Research universities are in a position to
increase the breadth of that definition.
In “A Stronger Nation” report by the Lumina
Foundation,NorthDakota ranks in the top 10 states in the
U.S. for degree attainment at 44.95 percent as of 2010.
Nearly 45 percent of North Dakota’s working-age adults,
age 25 to 64, hold at least an associate degree. Other states
on the list include Massachusetts, New Hampshire,
Connecticut,Minnesota,New Jersey,Maryland,NewYork
and Vermont.
Statistics from Job Service North Dakota show more
than 20,000 job openings here, many requiring advanced
education or training. With public and private partner-
ships, there are critical ways we can contribute to the
region’s economic success.These include research, training
the future workforce and helping businesses’ current
workforce prepare for ever-changing markets.
Public and private research collaborations promote
economic development. The Centers of Excellence pro-
gram established by the North Dakota Legislature pro-
vides a critical pathway that enables universities and pri-
vate sector partners to promote technology-based eco-
nomic development, increase global visibility of the
region’s products and businesses, create new employment
opportunities and bring university-based scientific discov-
eries to the private sector for commercialization.
For example, North Dakota State University’s
Centers of Excellence and private sector partners engage in
market-driven research and development ranging from
life sciences to advanced electronics to biopharmaceuticals
and agricultural biotechnology. These centers have assist-
ed local companies such as Appareo Systems LLC and
Triton Systems-ND in accelerated, innovative product
development. Others, such as Pedigree Technologies, have
partnered on advanced electronics and software research
and development. NDSU research partnerships with
Caterpillar Inc. have assisted with laser-cladded coatings
for mining and energy applications, while other projects
have led to product technologies for SpaceAge Synthetics
and for Technology Applications Group, to name a few.
Economic development isn’t restricted to research.
There are other critical roles that we should serve.
Colleges, universities and technical schools prepare the
futureworkforce.By proactivelymeetingwith companies,
we are asking them what capabilities they need in future
employees. These discussions fuel potential partnerships,
help us better prepare current students for the job market
and meet ever-changing needs of those already in the
workforce, as businesses strive to compete globally. Land-
grant institutions such as NDSU understand the multi-
plicity of these roles.
Public and private partnerships are a powerful tool
to foster research and development, to access a trained
workforce, and to help current workers keep pace to be
better prepared for the future.We all may be in a position
similar to the one mentioned by hockey legend, Wayne
Gretzky, who said, “I skate to where the puck is going to
be, not where it has been.”Building and expanding public
and private partnerships already underway in North
Dakota and elsewhere will result in compelling benefits
for both business and education. Let’s work together to
make it happen. PB
Dr. J. Bruce RafertProvost, North Dakota State University701-231-7131, [email protected]
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14 Prairie Business Magazine August 2012
|ECONOMIC DEVELOPMENT|
GOED renews focuson internationalmarketsBYPATCOSTELLO
Though the world purchases more than $1 bil-
lion in goods from 400-plus South Dakota
companies each year, we at the Governor’s
Office of Economic Development think there is still
room for growth. That is why the GOED has recently
renewed its focus on international trade.
Exporting is just one area where we see potential.
It offers both the state and the businesses operating
within our borders stability and additional markets —
both of which are crucial to growth.
Exports accounted for 9 percent of South
Dakota’s gross domestic product in 2009. When the
economy was down, having external markets helped
some companies bridge the gap when sales were
ebbing domestically.
The state of South Dakota would like to see that
number much larger than 9 percent. We believe it will
get there.
So, just who is buying SouthDakota products, and
how can the state export more?
This spring, a delegation of officials and busi-
ness leaders from South Dakota — including Gov.
Dennis Daugaard, myself and Secretary of
Agriculture Walt Bones — along with North Dakota
Lt. Gov. Drew Wrigley and other trade officials, com-
pleted a trade mission to China. China is one of South
Dakota’s primary focuses and one of the state’s top
five export partners.
China, which has 1.2 billion people with a grow-
ing middle class that is demanding higher-quality
protein, expressed an interest in South Dakota pork,
making it one of the areas South Dakota could
expand in. Additionally, South Dakota companies
that accompanied the delegation were able to further
their relationships, secure sales and gain contracts
while we were there.
It was extremely beneficial to have Gov. Daugaard
present. Having top leaders present plays a key role in
making these connections, and speaks volumes about
the state’s level of commitment. Trade missions have
been done in the past without gubernatorial presence,
but that presence makes for a more successful trip. The
North Dakota Trade Office has really set an example of
how a successful trade organization can make a differ-
ence by helping businesses reach new markets, and the
state of South Dakota really appreciates its support.
However, taking all of South Dakota’s business
leaders to China is neither practical nor feasible, so we
are taking on additional initiatives at home.
This spring, in conjunction with the Governor’s
Economic Development Conference, the GOED col-
laborated with the International Trade Center to host a
workshop titled “Exporting 101,” which was open to
South Dakota companies that wanted to learn about
opportunities in exporting.
The International Trade Center, which was estab-
lished in July 2011, is located in theU.S.Customs build-
ing in Sioux Falls.
The GOED has also designated one of its business
development representatives to focus on the state’s
international efforts and serve as a resource for compa-
nies looking to branch out.
Looking forward, we are striving to create addi-
tional partnerships and continue to offer more oppor-
tunities like events, workshops and trade missions.
These approaches exemplify the South Dakota spirit,
which I believe will ultimately contribute to our state’s
continued success. PB
Pat CostelloCommissioner
S.D. Governor’s Office of Economic Development605-773-3301, [email protected]
DesignFor The Test Of Time.
P h o n e : 7 0 1 . 8 3 7 . 8 7 37w w w. a c k e r m an - e s t v o l d . c o m
Engineering affects everything from thewater that flows from your kitchen faucet tothe roads you drive on to the buildings whereyou live, work and shop. We provide a fullline of high quality engineering services:
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15www.prairiebizmag.com
16 Prairie Business Magazine August 2012
Prairie News Industry News & Trends
N.D. hospitals receivegrants to improve health care
Garrison Memorial Hospital and Altru
Health System will receive more than $380,000 in
grants to expand health care services in rural com-
munities. The Distance Learning and
Telemedicine Program provided the funding.
Garrison Memorial Hospital in Garrison,
N.D., received $119,833 to deliver telepharmacy
services. Altru Health System, based in Grand
Forks, N.D., was awarded a $266,900 grant to
implement digital imaging into a telemedicine net-
work between their clinics in five rural communi-
ties: Cavalier and Drayton in North Dakota; and
Fertile, Red Lake Falls and Warroad in Minnesota.
BCBSND signs contractwith Altru, Sanford
Blue Cross Blue Shield of North Dakota has
signed Total Cost of Care contracts with Altru
Health System, Grand Forks, N.D., and Sanford
Health, Fargo, N.D., and Sioux Falls, S.D. These
contracts are part of an effort to reimburse med-
ical facilities with an emphasis on quality of care
rather than volume of services delivered, while
improving care coordination and holding down
member health care costs.
Pilot child carefacility project started
The North Dakota Board of University
and School Lands is allocating $500,000 for a
pilot program to help communities in the
state’s oil-producing counties establish more
child care facilities.
Political subdivisions in child care deficient
counties can apply for matching grants to estab-
lish a community-owned child care facility to be
publicly operated or leased to nonprofit or for-
profit operators. The funds can be used to pur-
chase a modular child care facility, to expand an
existing publicly owned child care facility or to
build a new publicly owned facility.
St. Alexius, LintonHospital reach agreement
St. Alexius Medical Center in Bismarck,
N.D., has entered into a management agreement
with Linton Hospital in Linton, N.D.
According to Spencer Larson, Linton
Hospital board chair, ownership will remain with
Linton Hospital. “We will continue to utilize our
board of directors combined with the added
resources and leadership of St. Alexius Medical
Center to provide high-quality patient care to the
people we serve.” St. Alexius will assist Linton
Hospital with the placement of a chief executive
officer and help with physician recruitment.
Onsharp expanding to TexasOnsharp, aweb strategy,design anddevelop-
ment company in Fargo,N.D., is opening an office
in Sugar Land, Texas, to provide services for a
growing number of online marketing and devel-
opment customers.
Houston’s pro-business culture and world
class workforce and educational institutions is
allowing Onsharp to become even stronger in
product and service offerings to current and
potential clients, according to Onsharp. The new
office will allow Onsharp to continue expanding
to provide customer experience for each client.
NISC named one ofbest places to work in IT
National Information Solutions
Cooperative, a provider of information technolo-
gy products and services to utilities and telecom-
munications organizations, has been listed by
IDG’s Computerworld magazine as one of the 100
best workplaces for IT professionals in the United
States for the 10th time. This year, NISC is ranked
54th overall. Computerworld has recognized NISC
as one of the best places to work in IT for 10 of the
past 11 years.
MnSCU receives$3 million NSF grant
The Minnesota State Colleges and
Universities Manufacturing and Applied
Engineering Center of Excellence have been
awarded a National Science Foundation grant for
nearly $3 million to educate and train manufac-
Sanford Health Moorhead, Minn., campus is being built to expand
medical services and provide the latest in health care design and technology.
The $13million projectwill include pediatrics,women’s services, behav-
ioral health, orthopedics, occupational medicine and outreach services for
specialty care, a retail pharmacy and gift shop. This expansion means major
growth for Sanford Moorhead; 16 physicians are expected to be added at the
clinic with several more offering outreach services, more than tripling the
current number.
Sanford Health Moorhead campus under construction Photo courtesy of Sanford Health
17www.prairiebizmag.com
|PRAIRIE NEWS|
turing technicians.
The MnSCU Manufacturing and Applied
Engineering Advanced Technological Education
Regional Center of Excellence is a partnership of
10 institutions led by Bemidji State University.
Partner institutions includeCentral LakesCollege,
Lake Superior College, Minneapolis Community
and Technical College, Northland Community
and Technical College, Northwest Technical
College, Pine Technical College, Riverland
Community College, Saint Paul College, and St.
Cloud Technical and Community College.
Alerus launches mobile appAlerus Retirement Solutions, a division of
Alerus Financial N.A., introduced a mobile app,
available for both iPhone and Android devices.
With the Alerus Retirement Solutions mobile
application, retirement plan participants receive
fast and secure inquiry access to their account
information. The app allows Alerus Retirement
Solutions to build a closer relationship with the
participants on a day-to-day basis. Participants
can view account activity, current balance by
investment and source, rate of return and recent
contribution information.
N.D. tops EnterprisingStates rankings
The U.S. Chamber of Commerce’s 2012
Enterprising States report ranks North Dakota
as the nation’s top performing economy along
key growth measures for jobs, productivity
and income.
Enterprising States: Policies that Produce
assesses the economic performance of the 50
states and polices in five key areas — entrepre-
neurship and innovation, infrastructure, talent
pipeline, exports and international trade, and
taxes and regulation. North Dakota ranked No. 1
in long-termgrowth, short-term job growth, gross
state product growth, per capita income growth,
science, technology, engineering and mathematics
job growth and business closure rate.
Dickinson hotelsbeing planned
RoersDevelopment is planning to build four
hotels west of Dickinson, N.D., after approval
from the Dickinson Planning and Zoning
Commission. The hotels will have four stories and
will be constructed on 210 acres of land north of
Interstate 94.
18 Prairie Business Magazine August 2012
|PRAIRIE NEWS|
Sanford receives $12 million grantThe Centers for Medicare/Medicaid (CMS) has awarded Sanford
Health a $12 million Health Care Innovation grant.
CMS grants are exclusively given to applicants whowill implement
the most compelling new ideas to deliver better health, improved care
and lower costs to people enrolled inMedicare,Medicaid andChildren’s
Health Insurance Program, particularly those with the highest health
care needs.
Sanford Health is receiving this award to transform health care
delivery through the full integration of primary and behavioral health
care in South Dakota, North Dakota and Minnesota.
Video Guidance, ConnectingPoint form strategic partnership
Bloomington,Minn.-basedVideo Guidance, a visual communica-
tions company, has formed a strategic partnership with Watertown,
S.D.-based Connecting Point Computer Center, which provides infor-
mation technology solutions to businesses, schools and government
agencies throughout North Dakota and South Dakota.
The partnership will help Video Guidance grow by increasing its
sales presence in its current markets and expanding its geographic reach
across North Dakota and South Dakota.
S.D. Arts Council awards grantsThe South Dakota Arts Council, an office of the South Dakota
Department of Tourism awarded nearly $1.2 million in fiscal year
2013 grants and special initiatives. The council provided funding for
more than 225 artists, arts organizations, schools and art projects
across the state.
Funds for Arts Council grants are provided by the National
Endowment for the Arts and the state of South Dakota.
Community Foundation ranks in top 100Sioux Falls Area Community Foundation has earned spots on two
of three prestigious community foundation top 100 lists.
For 2011, the community foundation earned recognition as one of
the most active community foundations in the nation in terms of grant
making and contributions received.
The lists were released by CF Insights, which compiles and distrib-
utes data and information on finances, operations and best practices for
community foundations nationwide. CF Insights was established by the
national Council on Foundations and FSG, a consulting firm that helps
foundations accelerate their social impact.
State Bank & Trust wins workplace awardsState Bank & Trust, headquartered in Fargo,N.D., has received two
awards from Minnesota business publications.
State Bank&Trustwas named the secondmost highly ranked large
company among the “100 Best Companies to Work For” by Minnesota
Business magazine, and was also recognized for the second straight year
19www.prairiebizmag.com
|PRAIRIE NEWS|
by the Minneapolis StarTribune, and was named to the top 10 of the“Top
100 Workplaces in Minnesota.”
Land board commits $25 millionThe Board of University and School Lands has committed an addi-
tional $24.8 million in grant funding to help counties, cities, school dis-
tricts and other political subdivisions in the Oil Patch offset the impacts
of rapid development. The state appropriated $135 million in Energy
Impact funds for the 2011 to 2013 biennium and about $9.3 million
remains to be allocated.
The funding will be used to support improvements in emergency
services, to provide more housing for teachers, for upgrades to municipal
water and sewer systems, street improvements, school infrastructure
improvements and to address other impacts of rapid growth.
S.D. tax system ranks firstThe Small Business & Entrepreneurship Council ranked South
Dakota the best tax system in their“Business Tax Index 2012.”The report,
which analyzes the best tax systems in the nation for small businesses,
start-ups and entrepreneurs on an annual basis, states that taxes matter in
terms of a state’s competitiveness, economic growth and job creation.
SouthDakota rated“best”in last year’s analysis also.The index ranks
states on the costs of their tax systems based on 18 different tax measures.
Burlington, N.D., adding housingTwo developments are being planned on 700 acres of recently
annexed land in Burlington, N.D.
One housing subdivision — Point of View Third Subdivision — is
being created on 187 acres. The other — Highlands Ranch Subdivision
project — is being built on 535 acres. Both are in the early stages and
homes are slated to be completed in the spring of 2013. The two develop-
ments combined have the potential to more than quadruple the popula-
tion of Burlington by adding approximately 5,000 residents to the current
population of 1,100.
Minnesota exports have record first quarterMinnesota exports of agricultural,mining and manufactured prod-
ucts reached a first quarter record of $4.9 billion, up 2 percent from the
same period a year ago, according to figures released by the Minnesota
Department of Employment and Economic Development.
Manufacturing represented the largest share of state exports during
the quarter, ringing up $4.5 billion in sales, also up 2 percent from a year
ago.Asia was the state’s largest export region, accounting for 35 percent of
all sales, followed by North America (33 percent) and the European
Union (20 percent).
N.D. exports climb 35 percent in first quarterFor the first time North Dakota exports have exceeded $1 billion in
(continued on page 21)
20 Prairie Business Magazine August 2012
|PRAIRIE PEOPLE|
Andreson joins AltruLaura Andreson has joined Altru Health
System’s obstetrics and gynecology department in
Grand Forks, N.D.
Andreson received a clinical laboratory sci-
ence degree at the University of North Dakota and
then earned her doctor of osteopathy degree from
Des Moines University Osteopathic Medical
Center in Des Moines, Iowa.
Wells Fargo hiresfiduciary advisory specialist
Wendy Devier has been named fiduciary
advisory specialist and assistant vice president for
Wells Fargo Private Bank in Fargo,N.D., Bismarck,
N.D., and western North Dakota.
The previous seven years she worked for
Bank of the West as a senior trust officer and assis-
tant vice president.
Doolittle namedassociate VP of research
James Doolittle, with 32 years of experience
in research, has been named associate vice presi-
dent for research at South Dakota State University
in Brookings.
Since 2004,Doolittle has served as director of
the North-Central Sun Grant Center, where he
annually managed a $57 million research portfolio
on bioenergy with more than 75 subcontracts.
Strinden joins NEW TECMatthew Strinden has been hired as executive
director of North Eastern Work and Technical
Education Center (NEW TEC) in Aberdeen, S.D.
Strinden was assistant state superintendent
with the N.D. Department of Public Instruction,
where he coordinated school health, child nutri-
tion and food distribution, management informa-
tion systems and teacher and school effectiveness.
Keeney new alumnidirector for U of Mary
Paul Keeney has been named director of
alumni at the University of Mary, America’s
Leadership University, in Bismarck, N.D.
Keeney was previously employed for five
years with the Hazelton-Moffit-Braddock Public
School in Hazelton, N.D., where he was a science
instructor, secondary principal, assistant football
coach (Linton-HMB), and HMB Public School
athletic director.
Sanford exec chosen fornational leadership award
H. Eugene Hoyme, chief academic officer for
Sanford Health and president of Sanford Research,
has received the 2012 Excellence Award from the
National Organization on Fetal Alcohol
Syndrome, joining the ranks of almost 40 past
recipients that include Sen. John McCain and the
late Sen. Ted Kennedy.
Laura Andreson
Wendy Devier
James Doolittle
Paul Keeney
H. Eugene Hoyme
Matthew Strinden
Taketo Baba Shoshone Richardson
Two join Altru’s physiciansemergency medicine department
Taketo Baba and Shoshone Richardson have joined Altru Health
System’s emergency medicine department in Grand Forks, N.D.
Baba earned his degree in medicine from Tohoku University
School of Medicine in Miyagi, Japan. He completed a transitional
internship at the U.S. Naval Hospital in Okinawa, Japan and completed
his residency in emergency medicine at Orlando Health in Orlando,
Fla. Richardson began her education at Arizona State University where
she received a nursing degree. She earned a degree in medicine from
The Ohio State University College of Medicine. Following that she
completed her residency in emergency medicine at The Ohio State
University Medical Center. Richardson is board certified in emergency
medicine.
21www.prairiebizmag.com
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one quarter, according to the North Dakota
Trade Office.
In the first quarter of 2012, exports
increased 35 percent over the same January
through March period of 2011. Since 2000,
exports from North Dakota have increased
more than 400 percent, from approximately
$626 million in 2000 to more than $3.3 bil-
lion in 2011.
North Dakota exports grew in many
of the state’s top destinations. Exports
increased 56 percent to Canada, 120 per-
cent to Australia, 330 percent to Russia,
69 percent to Venezuela and 120 percent
to Kazakhstan.
Medcenter One,Sanford Health merge
Medcenter One and Sanford Health
are stronger together.On July 2 they official-
ly merged, and Sanford Health now features
more than 1,200 physicians and 25,000
employees in seven states.
Sanford Health will invest $200 mil-
lion over the next 10 years to enhance health
care services in Bismarck-Mandan and
throughout western North Dakota, includ-
ing a new super clinic in Dickinson, the
gateway to the region’s bustling oil fields.
The clinic will feature all the current servic-
es provided in Dickinson along with space
for additional physicians, awalk-in clinic, an
ambulatory surgery center and diagnostic
services.
Medcenter One will operate under the
Sanford Health name. Bismarck-Mandan
will become the epicenter of the new west-
ern region of Sanford Health, joining Sioux
Falls, S.D., and Fargo as a regional center for
the vast network of clinics and hospitals
covering approximately 200,000 square
miles in seven states a geography larger than
North and South Dakota combined.
|PRAIRIE NEWS|
(continued from page 19)
22 Prairie Business Magazine August 2012
|BUSINESS DEVELOPMENT|
Thefirst phaseof amarketingplan isunder-
way to showcase what Grand Forks, N.D.,
has to offer for companies looking to do
business in thewest, but expand east.
Community leaders have been discussing
ways to increase Grand Forks’ exposure and, as
the community developed its marketing plan,
realized that one of the most exciting economic
areas was western North Dakota, says Steve
Burian, president of Advanced Engineering and
Environmental Services (AE2S). “It was an
opportunity to capture some of the economic
impact, realizing that there was an overload and
leaderswere embracing help fromNorthDakota
partners,” he says. “We wanted to be sensitive to
western North Dakota’s needs.”
Klaus Thiessen, Grand Forks Region
Economic Development Corp. president and
CEO, says it is imperative that it is understood
that the region is supporting western North
Dakota andhelping take the pressure off.“If they
are able to expand in western North Dakota that
is great; if they are looking for other locations,
we hope they will think Grand Forks,” he says.
While the first actual concerted marketing
strategy started in May at the Williston Basin
Petroleum Conference in Bismarck, N.D., the
Grand Forks community has been part of an
east meets west strategy for the past two years.
Twice, Grand Forks representatives have trav-
eled to western North Dakota and once west-
ern North Dakota leaders met in Grand Forks
to discuss opportunities to work together.
Grand Forks is along Highway 2, a major
access route to Williston, N.D. The community
is positioning itself to support expansions into
western North Dakota. A recently developed
125-acre business park with infrastructure pro-
vides immediate space for companies to build.
Marketing campaignThe petroleum conference launched the
campaign to raise Grand Forks’ profile. The
community — public and private entities —
raised $130,000 for the marketing campaign,
which is expected to run for at least two years.
This campaign includes placing ads in specific
oil industry trade publications, talking to direct
contacts made at the conference, a mix of pub-
lic relations, news coverage, radio and bill-
boards.
There are more than 70 Grand Forks
companies doing business out west.
AE2S has had an office in Williston since
MarketingplanshowcasingGrandForks125-acre business parkamong assets for westernN.D. expansion needsBY ALAN VAN ORMER
Photo courtesy of JLG Architects
23www.prairiebizmag.com
|BUSINESS DEVELOPMENT|
1998 and has been able to develop a local pres-
ence. “Engineering services is unusual because it
takes long-standing relationships,”Burian says.“It
takes effort, work and nurturing to be successful.”
He adds that the need for goods and servic-
es in western North Dakota are so significant that
it can’t be met by that region alone.
JLG Architects has been doing business in
western North Dakota since 2002. In 2012,Minot,
N.D.-based Davison Larson Associates merged
with JLGbecause of the firm’s expertise inwestern
North Dakota.
Lonnie Laffen, who co-founded JLG, says
the campaign makes sense. “There just aren’t
enough people out there to get the job done,”he
says. “I like the idea of keeping as much in
North Dakota as we can. We can service the
west side as it grows. Our strategy is to grow
permanently into that area. The state needs the
help. The connection between east and west is
becoming very close.” PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
24 Prairie Business Magazine August 2012
|HIGHER EDUCATION |
Meeting ofthe MindsResearch and developmentpartnerships between privatecompanies and universitiesbenefit bothBY ALAN VAN ORMER
When Triton Systems Inc. was looking to develop and commercialize its sur-
face treatment products, the company discovered that North Dakota State
University in Fargo had expertise in the surface engineering technology that
it was creating.
Triton, headquartered in Chelmsford, Mass., is a material-based product development
company that takes ideas from a laboratory and moves those ideas to the commercial world.
The company conducts a majority of its business with government entities. For example,
Triton is currently working with the military on a bed net to protect soldiers from insects
while in the field.
“With its extensive testing and characterization capability, NDSU has been a logical
partner for Triton aswe develop and evaluate various products.Additionally,NDSUhas pro-
vided networking opportunities in the Red RiverValley Research Corridor,” says David Zupi,
director of operations for Triton in theNDSUResearch andTechnology Park.“Workingwith
a university helps us get out of our comfort zone and hopefully get exposure and experience
by bringing in different skill sets and perspectives on the varied surface treatment that we are
working on.”
Kevin Cooper, business instructor at the University of Minnesota Crookston and direc-
tor of its Center for Rural Entrepreneurial Studies, says that companies increasingly look to
universities for research assistance. “Traditionally universities tended to be somewhat
removed from this type of engagementwith the private sector.Now there is amore proactive
orientation toward collaboration with research-based private firms,”he says.“For the univer-
sity it is a source of revenue at a time when federal research funding has reached a plateau,
providing new opportunities for research personnel and the possibility of jobs for college
graduates. For the business, it helps accelerate their research agenda by gaining access to uni-
versity experts in a particular field, often less expensively than if they did it on their own.”
South Dakota State University in Brookings has increasedits research capabilities in ag technology, ag biotechnol-ogy, renewable energy, pharmaceutical sciences andelectrical engineering. PHOTO: ALAN VAN ORMER
25www.prairiebizmag.com
|HIGHER EDUCATION|
Philip Boudjouk, vice president for research, creative activities and
technology transfer at NDSU, says companies are cutting back on research
in the United States.“Companies often look for short-term results,”he says.
“Long-term initiatives are more difficult to invest in.”
Phyllis Johnson, vice president for research and economic develop-
ment at the University of North Dakota in Grand Forks, says companies
come to UND because of the university and the thought that they can hire
graduates who have the qualifications they are looking for. “We have coop-
erative relationships going on between companies and faculty that involve
students,” she says. “Then there are situations where we’re working with
other folks to further develop technology that was created at the university.
All those pieces are important and seem to be happening.”
Dwaine Chapel, executive director of the South Dakota State
University Innovation Campus in Brookings, agrees that more companies
interested in doing research and development are moving toward universi-
ties. He recently attended a national bioconference in Boston. During that
conference, Chapel learned that 39 percent of companies will be merging
and doing research together, while 41 percent were turning toward univer-
sity relationships and 20 percent were still doing their own research and
development.
Chapel says he is not sure what the percentage was five years ago, but
believes that companies moving toward working with higher education
institutions have increased. “The higher portion will continue to develop
university relationships because the higher portion, in my opinion, is going
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26 Prairie Business Magazine August 2012
|HIGHER EDUCATION |
forward because of the university’s young talent and knowledge.”
Working relationshipsZupi of Triton is one of the first to say that being located next to a high-
er education facility is working. In August, the company will have been locat-
ed in the NDSU research park for a year. During that time frame, Triton has
added two NDSU graduates and is working with several products in a 4,000-
square-foot surface treatment facility.
“NDSU has very capable testing labs,” Zupi says. “We work with NDSU
scientists very closely because we want an objective look at our products.”
One of the main product lines Triton is focused on commercializing at
its Fargo facility is its Invexus line of surface treatment for textiles. Invexus
technology creates engineered functional surfaces without changing bulk
properties or general characteristic of substrates.
Avianax LLC, which is in the REAC 1 building on the UND campus, is
another company that has found being located near a university a blessing
when developing its products.Avianax is researching and developing antibod-
ies for treatment of viral and bacterial diseases and possibly cancer.
Avianax has been doing research since 2006 and currently has four
employees, along with the use of six other UND researchers.
“It has become a cooperative venture,” says Richard Glynn, chief operat-
ing officer of Avianax.“Avianax is trying to make this into commercial sales in
animal and human markets.”
Avianax is collaborating with the UND Medical School and receiving
advice and guidance on how to carry through with this project,Glynn says.“It
is becoming a trend to go to universities to develop these types of products
because of the facilities that are available,” he says. “The key components are
labs and people that understand the process. In addition, there are knowledge-
able research staff and access to a wealth of information and trained people.”
Glynn adds it is important to work with universities because biotech
companies are different than other types of companies and take specialized
knowledge and facilities to move forward; something that universities have
on campus.
Partnering is keyJohnson says a big reason why companies are looking at universities is
because they areplaceswhere companies can find a lot of smart people.“When
you partner with a university you find faculty members that have knowledge
or skills to help you solve a particular problem or move your business for-
ward,” she says. “Universities also have sophisticated equipment and people
that operate that equipment and interpret the results. Some companies could-
n’t buy that type of equipment because it wouldn’t be used enough.”
At NDSU, the campus has been seeing a high volume of companies
involvedwith research and technology for at least a decade. In the last six years,
NDSU has developed more than 330 research contracts with the private sec-
tor and more than 1,800 federal contracts. In addition, there are significant
numbers of students involved in some type of research with companies on
campus.
Boudjouk says that the major benefit for universities working with pri-
vate companies in research is that students have an opportunity to get a degree
anddiscipline plus experiencewith the commercial aspect of the business dur-
ing courses they are taking at the school.
“Twenty years ago the research portfolio was less than one-half of what
it is now,”Boudjouk says.“Companies are on a growth path in North Dakota
andNDSUcan contribute to that success.The state has become amore attrac-
tive place for companies. NDSU’s scientific capabilities, its technology, faculty
and students are key partners in that success.NDSU is among the top 108 uni-
versities in the country with very high research activity, as determined by the
Carnegie Commission on Higher Education.”
In Brookings, SDSU is seeing an increase in research also with a more
than 30 percent increase in research expenditures since 2005. In 2005,
SDSU had $17 million in expenditures in research. In 2011, that increased
to $70 million.
SDSU has increased its research capabilities in ag technology, ag
biotechnology, renewable energy, pharmaceutical sciences and electrical
engineering. SDSU currently works with 70 to 100 companies on various
researches.
“South Dakota has had the highest research rate increase in the country
for the last several years,” says Kevin Kephart, vice president for research at
SDSU. “A lot of it has to do with our willingness to work and connect with
these organizations.”
Kephart says organizations such as the South Dakota Wheat
Commission help to fund the university’s research efforts.
Future challengesFunding, facilities, competition and maintaining a skilled workforce are
perennial challenges for businesses. They are areas in which universities and
industry can partner for mutual benefit, Boudjouk says.
NDSU is adding 35,000 square feet of scientific labs to an existing
Research 1 building in 2013 to assist in bringing university research discover-
ies to the commercial sector.
The National Institute for Standards and Technology and a North
Dakota Centers of Excellence enhancement grant are funding the additional
labs. Research in the addition will augment activities in seven existing public
and private company buildings in the NDSU Research and Technology Park,
which opened in 2011. Park tenants directly and indirectly generate an esti-
mated $10.9 million per year for state and local governments.
SDSU is infrastructure restricted, but is working to increase that for
research capabilities. The campus is converting some of its labs for research
space, updated its agricultural halls, developed a new dairy plant for research,
and new chemistry and pharmaceutical labs and a new building and labs for
electrical engineering. In the past three to four years, SDSUhas spent nearly to
$100 million in investments for research.
Universities have also had to educate faculty in learning how to protect
intellectual property.“In the past people would have an idea or invention and
start working with a private company without any written agreement. This
opens you up to the possibility that the company would take the idea,make a
profit and the university wouldn’t get anything from it,” Johnson says. “Now
our faculty has a better idea of what they do in those situations—come to the
tech transfer office andmake sure there is an agreement between company and
university. This protects both the companies’ confidential info and any contri-
butions the university makes.” PB
AlanVanOrmer
Advertorial
28 Prairie Business Magazine August 2012
|WORKFORCE DEVELOPMENT|
Tracking theJob MarketAg, energy, health care,social media marketing andwelding popular areas ofstudy at tech schoolsBY ALAN VAN ORMER
Lake Area Technical Institute in
Watertown, S.D., has seen
enrollment increase more than
50 percent during the past seven years
and more than 1,700 students are now
taking various two-year courses.
“People are finally figuring it out,”
says Debra Shephard, president of Lake
Area Technical Institute. “Everybody
had a friend or relative that left and
pursued a degree (at a college or univer-
sity) and didn’t finish that degree but
see people going to a technical school
and coming out after two years and get-
ting good jobs. People are starting to
understand that this is not a second-
rate choice.”
One of Lake Area Tech’s founda-
tion programs of study is agriculture. It
has become one of the largest in student
population. There are eight different
options and more than 200 students are
enrolled. In the fall of 2013, a $10 mil-
lion agriculture center will be complet-
ed to accommodate the growth and to
house three other programs.
“The ag industry is booming,”
Shephard says. “There are excellent jobs
and there is a demand for the workers.
Seven or eight years ago there weren’t as
many ag opportunities and students
were concerned about entering that
field. Now it is exciting to see students
able to sustain that industry.”
Lake Area Tech continues to diver-
sify its ag program. For example,
because of a demand for employees in
the agricultural commodities area, Lake
Lake Area Technical Institute in Watertown, S.D., addeda commodity merchandising degree in response to agrowing demand for people who can understand com-modity markets.
29www.prairiebizmag.com
Area Tech responded by adding a commodi-
ty merchandising degree. “The ag industry
needs people that can understand the mar-
kets and can buy and sell,” says LuAnn Strait,
director of institutional relations.
Other growing programsAt Bismarck State College in Bismarck,
N.D., one of the fastest growing programs is
the school’s bachelor of applied science
(BAS) in energy management. The program
is geared toward students with an associate
degree in an energy technical field who want
to advance in their career to become a man-
ager or supervisor. BSC’s two-year associate
degree program allows graduates to work in
a power plant, refinery, ethanol plant or
other similar facilities.
“The BAS program was added in 2008
because of workforce needs in the energy
industry,” says Kari Knudson, vice president,
National EnergyCenter of Excellence at BSC.
In addition, BSC added a petroleum
production technology program in 2011 in
response to the growing needs of oil and gas
companies in western North Dakota and
began a petroleum engineering technology
program in January 2012.
“The new petroleum programs will
prepare students to work for an oil compa-
ny, service company or others associated
with oil and gas development,” Knudson
says. “We anticipate strong demand for our
energy programs. Many people are starting
to retire and as the economy strengthens and
the stock market does well, there will be a
growing need for entry-level and mid-level
positions in energy companies.”
Western Dakota Tech in Rapid City,
S.D., is starting a socialmediamarketing pro-
gram in the fall. It is expected that as many as
25 students will be in that first class.
“We’ve done research that shows
social media marketing is one of the fastest
growing career fields in the country,” says
Steve Buchholz, marketing director for
Western Dakota Tech. “As businesses start
to expand their marketing efforts, the web
is where it’s at. Businesses are seeking
trained experts to help them take advantage
of those marketing opportunities.”
Buchholz adds there is a need for well-
trained people for social media marketing.
“The new generation is growing up as digi-
30 Prairie Business Magazine August 2012
|WORKFORCE DEVELOPMENT|
tal natives,” he says. “It’s exciting for stu-
dents to think about careers using YouTube
and Facebook.”
Western Dakota Tech offers 25 differ-
ent one- and two-year programs with
major emphasis on health care, transporta-
tion, energy, general education and tech-
nology. More than 1,000 students take
courses at the school.
Health care continues to grow in popu-
larity. The school offers 10 programs in
health care. The largest is practical nursing
where 54 students take courses that allow
them to assist registered nurses and physi-
cians in hospitals and clinics.
Welding is also popular. The number
of welding jobs correlates with work in the
coal fields of Wyoming, oil fields of North
Dakota and industry growth in western
South Dakota. There are 45 students in the
program this year.
“Students see that and are seeking
training so they are qualified for those jobs,”
Buchholz says.
Keeping up withdemand
Like most two-year schools, Lake
Area Tech is always scanning and
tracking business trends. They have
developed advisory councils for all
their programs to help keep up with
the trends. Businesses also will request
programs be developed to meet work-
force needs.
Two-year schools also have
learned to re-tool programs, as indus-
try and business evolve. At Lake Area
Tech, diesel technology has always been
one of the stronger programs size-wise.
This fall there will be 145 students
enrolled,overfilling their newdiesel lab,
which opened in January 2010. When
the ag center is completed, diesel will
gain additional lab space so the pro-
gram can continue to expand.
“That program is popular
because people see the opportunities in
that industry,” Shephard says. “It is
interesting how savvy students are
becoming. They are coming with a
plan,doing their homework and know-
ing what kind of job they want. They are
seeking out schools that are emphasizing the
hands-on skills.”
Technical schools are also focused on
training and are driven by the marketplace.
Partnerships are essential and two-way com-
munication is important. In addition, high
school counselors and parents are more
aware of the opportunities that two-year
schools can provide.
In South Dakota, technical schools
adhere to a policy of no unnecessary duplica-
tion of instructional programs. Programs
with a high need for graduates, such as diesel
technology, are offered at more than one of
the tech institutes. Other programs might be
unique to only one location.
Also, a majority of the students going
to a technical school are from the region
where the school is located and many
remain in the state after graduation. For
instance, Lake Area Technical Institute
draws 90 percent of its students from with-
in a 100-mile radius and 91 percent of its
graduates stay in South Dakota.
Government downsizing and decreased
budgets are a major concern for two-year
schools. Up-to-date equipment acquisitions
are the biggest challenge to staying current.
For example, at Lake Area Tech, 10 years ago
the automotive technology programwas able
to purchase a car for training purposes annu-
ally and the auto manufacturers frequently
donated vehicles for training purposes, but
that doesn’t happen anymore.
The current equipment budget for
2012 to 2013 at Lake Area Tech is $232,000.
“That doesn’t even touch it for what we
need,” Shephard says. “Some partners have
stepped up to help,which is invaluable to us,
and we need them to continue to step up if
we are going to create the workforce South
Dakota needs.” PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
32 Prairie Business Magazine August 2012
|TECHNOLOGY|
Game-ChangingTechnologyHydraulic fracturing andhorizontal drilling drivingprofits in the Oil PatchBY ALAN VAN ORMER
The combination of hydraulic frac-
turing and horizontal drilling has
opened up the Bakken oil field in
westernNorthDakota inways that couldn’t
even be imagined a dozen years ago.
Lynn Helms, director of the North
Dakota Department of Mineral
Resources, says it all has to do with the
geology. “Rocks we are producing oil
from cannot produce at economic rates
without hydraulic fracturing,” he says.
Susie McMichael, spokesperson for
Halliburton, says hydraulic fracturing is a
game-changer in oil and natural gas pro-
duction. “It, along with horizontal
drilling, is driving the oil boom,” she says.
“Without the combined technologies,
companies would not be able to econom-
ically produce the oil and natural gas that
is providing millions of well-paying jobs,
billions in state and federal revenue and a
real path to a more affordable energy
future.”
Halliburton performed the first
experimental fracturing operation for
Stanolind in 1947, followed by the first
commercial fracturing operating in 1949,
McMichael says.
Today, Halliburton performs frac-
turing treatments in both the Bakken and
Three Forks formations throughout the
Williston Basin in northwest North
Dakota and northeast Montana.
Technology increasingproduction
Before 1990, when oil companies
drilled vertical wells and attempted
hydraulic fracturing, those initial wells
produced 35 barrels of oil per day and
one out of 10 were making money. In the
1990s, horizontal drilling became avail-
able and thewells drilled during that time
frame produced approximately 150 bar-
rels of oil a day and one out of four wells
were making money.
Then about a dozen years later, oil
companies found out how to marry
hydraulic fracturing and horizontal
drilling, Helms says. That increased the
volume to 1,000 barrels per day and
three out of four wells were economi-
cally viable.
“That means you can really drill aHalliburton performs a hydraulic fracturingoperation in the Bakken formation of North Dakota.PHOTO: COURTESY OF HALLIBURTON
33www.prairiebizmag.com
|TECHNOLOGY|
lot of wells because three out of four are making
money,” he says. “That technology evolution
took us from 35 barrels of oil per day to 1,000
barrels of oil per day and less than one well out
of 10 making a profit to three out of four wells
making a profit.”
McMichael says the oil and gas industry has
long known that shale formations contain vast
amounts of oil and natural gas, but it was
extremely difficult and expensive to extract it
using traditional drilling and production meth-
ods, due to the low relative permeability of the
reservoir rock.
“When fracturing and horizontal drilling
technologies were first combined in the Barnett
shale in North Texas in the mid-1980s, it opened
up drilling and production in many unconven-
tional reservoirs, including the Bakken,” she says.
Nearly nine out of 10 onshore wells —
natural gas and oil — require fracture stimula-
tion to remain or become viable. Hydraulic
fracking uses water and sand and thousands of
pounds of pressure, along with additives to
create tiny fissures in the rock. The flow of
the water helps the sand hold the cracks
open and creates a passageway in which nat-
ural gas and oil can travel to the wellbore
where it is captured. It takes on average three
to 10 days.
UND providing expertiseNow that the technology is being used in
the Bakken, oil companies need experts in
handling the hydraulic fracturing and hori-
zontal drilling techniques. The University of
North Dakota in Grand Forks has started a
petroleum engineering department that
includes hydraulic fracturing and horizontal
drilling methods in the course work.
Steve Benson, chair of the petroleum
engineering department, says the need for
petroleum engineers is increasing due to an
expansion of the industry and retiring petro-
leum engineers.“The opportunities for petro-
leum engineers are expanding, their work
includes exploration, production, transporta-
tion and refining,” he says. “We haven’t spent
time marketing the program and the program
is growing.We are currently hiring faculty and
developing laboratories.”
In the hydraulic fracturing technology
program, students study the mechanical proper-
ties of rocks, learn the strength of rocks and how
the rocks behave under different forces that are
applied to them.The study also includes opening
up pores in the rocks to let the oil flow out.
In the petroleum engineering program,
students can receive a bachelor’s degree in petro-
leum engineering, amaster’s degree in geological
engineering and a doctoral degree in engineer-
ing with petroleum tracks.
The bachelor’s degree program started in
2010 and there were less than 10 people partici-
pating. The first graduates are expected in the
spring of 2013. Today, there are almost 100 stu-
dents taking courses in the program.
“After graduation they will have the skills
to work in jobs ranging from exploration to
refining,” Benson says. “They can work with
geologists to help oil companies understand the
rock formation and to optimize drilling tech-
nology, become part of a hydraulic fracturing
crew to understand and enhance the fracturing
of the formation, completions and the produc-
tion side and can also work to move products to
the market.”
Benson says the industry is supporting
UND. “They are giving us advice on what the
needs for students are and helping us with cur-
riculum development and funding for faculty
and equipment needs.”
Helms says the UND engineering pro-
gram is the future of Bakken production. “A 1
percent increase in recovery factor will yield 3
billion barrels of oil,”he says.“Our hope is that
the engineers at the petroleum engineering
program will find those techniques that give
those 1 percent increases.
“It is mind-boggling how valuable some-
thing like this is,” he adds. “We need a lot of tal-
ent, but a very few extremely talented people will
make a big difference.” PB
AlanVanOrmerEditor, Prairie Business
701- 371-9578, [email protected]
34 Prairie Business Magazine August 2012
Red River Valley in the ‘cloud’Microsoft’s Fargo, N.D., campusanticipates growth over the next five yearsBY ALANVAN ORMER
With Microsoft focusing on cloud com-
puting, the Fargo,N.D., office anticipates
growth over the next five years to help
with this transformation in several areasof technolog-
ical expertise in the region.
Microsoft’s Fargo campus site leader Don
Morton says there will be new jobs created but at
this point the company is not sure exactly what
types of jobs. “We know there is going to be a
tremendous premium on customer service,” he
says. “We know there is going to be tremendous
premium on cloud engineering.”
Over the past several years, Microsoft has
gradually incorporated cloud computing into
its system. Many Microsoft products are avail-
able in the cloud today; with the option to also
use the products on-premise if customers prefer
this model.
“Wewill continue to see technology that inte-
grates better.Wewill continue to see new function-
ality and new features that allow you to do more,”
Morton says. “Deployment via the cloud makes it
so much easier.”
According to a new study by the analyst firm
IDC, spending on public and private information
technology (IT) cloud services will generate near-
ly 14 million jobs worldwide from 2011 to 2015.
The research, commissioned by Microsoft, also
found that IT innovation created by cloud com-
puting could produce $1.1 trillion a year in new
business revenues.
Locally, cloud computing is driving growth
and causing the Fargo office to begin to consider
various expansion options to accommodate the
projected employee growth. Currently, there are
1,700 employees and vendors in Fargo. When the
Microsoft campus is fully built-out it will have the
capacity for up to 2,700 people on its campus in
southwest Fargo along Interstate 29. Today, infra-
structure is in place for an additional two buildings
if needed.
James Gartin, president, Greater Fargo-
Moorhead Economic Development Corp., says he is
not concerned about workforce issues because
Microsofthas sucha strongability to attractworkers.
“This reinforces Microsoft’s commitment
to this market,”Gartin says. “They feel this facili-
ty offers some outstanding opportunities for
them. They have always told me that the biggest
positive is the workforce that they have here.
They can get a lot accomplished with the work-
force that they’re able to attract.”
Business in the cloudCloud computing is changing the way com-
panies do business. Microsoft’s business model
has changed along with this industry shift. In the
past customers only could purchase Microsoft
solutions for deployment on-premise. The soft-
ware was purchased and paid for upfront. Now,
Microsoft also offers hosted options, deploying
the software through the cloud and billing cus-
tomers for a monthly subscription. Customers
now have a choice of deployment options and can
pick the option that works best for their company.
Morton says under the on-premise scenario
companies would have the option to upgrade their
solutions every 18 months to two years. “When
large corporations go through major upgrades it is
a significant investment for the corporation,” he
says. “With the cloud there are continuous
upgrades that should be seamless to the customer.
The latest technology, latest features and latest func-
tionality are made available and easily deployed
through the cloud which will lead to productivity
gains. IT professionals can focus on strategic tech-
nology that adds value to their business.”
What it means to the employees on the
Microsoft campus in Fargo is an even greater focus
on customer service. “The Fargo campus has a
great reputation for delivering outstanding cus-
tomer service,” Morton says. “Locally we have
teams that touch every part of the cloud solution
life cycle.”
Microsoft’s Fargo campus is home to teams
developing thenext,cloud-enabledversionsof sever-
al of Microsoft’s enterprise resource planning (ERP)
products, and components of Microsoft Visual
Studio, and Microsoft Windows Phone. Sales teams
based in Fargo work with customers interested in
signing up for free trials of Microsoft’s cloud-based
solutionsandworkwith themduring thepurchasing
process. Operations teams in Fargo manage the
billing process once customers choose to purchase
any of the cloud services Microsoft offers and has
support teams in Fargo who work with customers
using cloud-based solutions in order to make sure
they have the best possible experience.
“We are re-engineering our existing products
to enable them to be deployed via the cloud,”
Morton says. “We are building new functionality
and features specifically designed for both on-
premise and cloud deployment and streamlining
our customer service processes to support the
cloud model.”
Morton adds that cloud computing is mak-
ing it easier for the businesses to deploy technolo-
gy solutions to increase business productivity and
to add features and functionality as it becomes
available instead of having to wait for the next
major upgrade.
“Anytime you can increase productivity, get
people to embrace new technology, new features
and new functionality, your people become much
more valuable employees,” Morton says. “Because
of the increased speed of diffusion of these tech-
nology innovations you are going to generatemore
revenue without having to add people.” PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
|RED RIVER VALLEY|
Don MortonCampus Site LeaderMicrosoft, Fargo N.D.
35www.prairiebizmag.com
edu% % % ! - ( . / + " , & # ' " # ) ! " * $
BARNES COUNTYGRAND FORKS
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+LEARNING =
36 Prairie Business Magazine August 2012
|SOUTH DAKOTA|
Avera plans to expandCorporate complex to be developedon 82 acres in Sioux FallsBY ALANVAN ORMER
As the health care industry continues to grow, Avera Health
System is purchasing land in Sioux Falls, S.D., to develop a
corporate complex and other building needs specific to
keep pace with the ever-changing health care atmosphere.
An estimated 82 acres of land is being aquired in south Sioux
Falls adjacent to Avera Heart Hospital and Avera Behavioral Center.
Purchase of the land is expected to be completed in September.
Daryl Thuringer, vice president of marketing and public rela-
tions for Avera Health System, says having property adjacent to each
other provides a nice flow for patients and customers who come to
Avera for administration or medical care needs.
“It provides both patients and employees easy access to admin-
istration in the other facilities,” he says.
Dick Molseed, senior vice president for strategy and governance
at Avera Health, says there will be more pressure on health care in the
future and Avera needs to find areas that it can become more efficient
and productive.
E-services growingOne of those changes is occurring in e-services. Avera is active in
e-services. This includes e-emergency where at the push of a button in
hospitals across the regionphysicians andnurses immediately respond.
There is also e-pharmacy. Regulations state that when a physician
orders a drug for a hospital patient it has to be viewed by a pharmacist.
Many hospitals in the region do not have pharmacists and e-pharma-
cy allows immediate notification to a clinically trained pharmacist.
“Right now we are developing a central location for e-services,”
Molseed says. “Moving into the future, e-services could find a unique
home on our corporate campus.”
The land will allowAvera to add other buildings to the corporate
campus. “The Sioux Falls metro area and southeast South Dakota is a
strong growth area andhas been for years,”Molseed says.“Our campus
is just about full and this gives us an opportunity in the other part of
the city to expand our clinical services if we decide that is necessary.”
The Avera McKennan campus, at Cliff Avenue near downtown
Sioux Falls, housesmany of the health care networks programs,which
includes the main hospital and specialty clinics.
Molseed adds that the health care industry is continuing to grow
at a rapid pace and with Avera developing a futuristic plan, it needed
space to work.“This was one of the very last tracts of land that size,”he
says. “We think it is imperative to have because it allows us to respond
to changes in the future.”
Avera is just starting the process of looking at how to develop
the land once it is purchased. “Once we have the land we can start
asking questions on what we want to go into it,” Molseed says. “We
have to make sure we control the land and it is zoned the way we
need it to be.” PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
37www.prairiebizmag.com
To learn more about our 65 Graduate Programs, and to read more aboutreal USD graduate students, visit usdstories.org/gradschool.
With a Graduate degree from the University of South Dakota, your futurewill be more than just bright—it will be brilliant with the glow ofcertainty and success.
Because you’ve earned a Graduate degree from USD, you’ll be able tostart a more meaningful career; you’ll earn more over your lifetime; andyou’ll always know you can accomplish anything.
But conKdence isn’t all you gain when you decide to pursue a Graduatedegree from USD. You also gain real-world experience. You gain access to agrowing campus and a community that is as diverse as your interests. Mostimportantly, you gain the opportunity to earn a life-changing degree.
Your future is definitely bright.om theee fre degrtaduarith a GWt—ite than just brighwill be mor
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38 Prairie Business Magazine August 2012
|WESTERN NORTH DAKOTA|
Housing/businessproject planned inwestern N.D.$300 million complexwill be built in Watford CityBY ALANVAN ORMER
To keep up with housing demand in the Oil
Patch, Bakken Housing Partners is develop-
ing a project called Fox Hills Village in
Watford City, N.D. The $300 million project, which
will require more than 300 acres, will consist of 10
apartment complexes, townhomes, a shopping cen-
ter, full-service hotel and office buildings.
Construction of the first two apartment com-
plexes is expected to start in September. The project
will be built in eight phases over the next four years.
Mark Bragg, president of Bakken Housing
Partners in Watford City, says the speed of the proj-
ect depends on the demand. “There has been a lot of
interest, but we have been fairly low-key about it,” he
says. “When we start building there will be more
interest. People know about the project, but don’t
know our plans or our schedule.”
Gene Veeder, executive director for the
McKenzie County Job Development Authority, says
the community needs more housing for its residents.
“That is what is hindering retail growth, our com-
mercial growth and our workforce,” he says. “This is
a multi-project combination of everything we need
to expand. These types of projects can actually dou-
ble or triple the size of our community.”
Great locationBakken Housing Partners chose Watford City
because it is in the geographical center of the Bakken,
Bragg says. Watford City is at the crossroads of two
major arteries — Highway 85 that runs north and
south and Highway 23 that runs east and west. Fox
Hills Village will be located near the airport and
across from the city’s golf course.
“It makes it an easy commute in any direction
for long-term workers,” Bragg says. “Our whole
objective is to provide family housing.We’re satisfied
that the demands for long-term community family
housing are strong.”
Bragg adds that the demand is obvious. “So
many folks are living in temporary housing,” he
says. “The town was really welcoming about the
prospect of having long-term housing.”
The first phase of the project will consist of 10
apartment units. Each unit will have 47 two-bed-
room apartments. The mass grading and infrastruc-
ture, which have to be built first, will be started with-
in the next month.
Bragg says that once construction on the apart-
ments starts it will move quickly.
The second phase will be 250 townhomes.
Phase three is expected to be a shopping center that
will include a bowling alley, rifle, pistol and archery
shooting range, grocery store, clothing store, dry
cleaner, department store and restaurants.
Subsequent phases of the project are yet to be
determined but will include 1,200- to 2,500-square-
foot single-family homes with private garages, stor-
age and backyards. There will also be a build-to-suit
office building with 400- to 14,000-square-foot
options, conference area and technology center.
Bragg says the final phase will be a 200-suite hotel. PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
39www.prairiebizmag.com
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North Dakota has an opportunity to help
lead the way in renewable fuels, however,
a lot still depends on whether Congress
can develop a long-term energy policy that includes
renewable fuels.
Phyllis Cuttino, director of the Clean Energy
Program for the Pew Environment Group, who
provided the keynote address at the 2012
Renewable Energy Action Summit in Bismarck,
N.D., says there are opportunities in renewable
energy for North Dakota and the country.
Cuttino says these opportunities include the
production of advanced biofuels and wind energy.
“This region of the country is good for wind,” she
said in an interview after her address. “All you need
is transmission. I’m seeing a lot of advances in effi-
ciencies across transmission lines.”
As the director of Pew’s Clean Energy
Program, Cuttino advocates for national policies
that promote the economic, environmental and
national security benefits of the clean energy
economy.
Cuttino told themore than 250 people present
at Bismarck State College that renewable fuels
investors are looking for a policy that is transparent,
has longevity and is consistent. “Crafting an energy
policy can be difficult because all states have differ-
ent interests,” she said. “North Dakota has multiple
resources here. Whatever kind of comprehensive
energy strategy (is developed) will be a mix incen-
tivizing different kinds of energy sources.”
Sens. John Hoeven, R-N.D., and Kent
Conrad, D-N.D., and North Dakota Gov. Jack
Dalrymple kicked off the sixth annual conference
that included renewable energy leaders from
around North Dakota and the country.
Renewable increaseThe North Dakota leaders said that in 2001
the state had less than one half a megawatt of
wind power generation. By the end of 2011, how-
ever, North Dakota had grown to more than
1,400 megawatts, and today ranks ninth among
states in wind-generated electricity. Further,
North Dakota now produces 12 percent of its
electricity from wind annually, ranking the state
second in the nation.
Similarly, a decade ago, the state produced
only about 30 million to 40 million gallons of
ethanol a year at two small facilities and produced
no biodiesel at all. Today, North Dakota has five
ethanol plants with a rated annual capacity of
more than 400 million gallons, and a large diesel
facility with a capacity of 85 million gallons a year.
That’s a 10-fold increase in biofuels production.
Mike Seminary of Kadrmas, Lee & Jackson,
says that renewable fuels have a long-term role in all
these energy options in our country.
“The choices the consumers have are still a
struggle,” he says. “At the end of the day consumers
measure the effectiveness of the program and how
much it costs them.”
He added that without the federal govern-
ment providing effective incentives, renewable fuels
will struggle. “We have a very significant long-term
role and very important role as we move forward,”
Wind,ethanolcapacityincreasingLong-term energypolicy should includerenewable fuelsBY ALAN VAN ORMER
41www.prairiebizmag.com
Seminary said.
Kari Knudson, vice president of the
National Energy Center of Excellence at
Bismarck State College, says the renewable
energy action summit was a good opportunity
to showcase the renewable fuels industry.
“North Dakota is positioned to respond
to all types of energy,” she said.
During the keynote address, Cuttino
said that since 2004 there has been a 600 per-
cent increase in global clean energy invest-
ment including a record $263 billion invested
in 2011. Of that number, the United States
has invested $48 billion followed by China
and Germany.
Cuttino said there aremore opportunities
for the U.S. because rising energy development
presents export opportunities and 80 percent
of the future energy generation will come from
developing nations.
There were four breakout sessions that
discussed wind energy as a pathway to sustain-
ability, geothermal energy as an underground
technology for the future, ethanol as a fuel for
today and tomorrow and biomass as a renew-
able fuel that leaves no potential energy source
unturned.
During the discussion about wind energy,
three challenges were brought to the forefront.
They included the need for timely construction
of transmission lines, tight markets and the
need for those same markets to recognize the
environmental benefits of wind energy.
In the geothermal discussion it was
noted that there are 147 confirmed projects
in the United States; two in North Dakota.
There is potential for as much as 4,500
megawatts of geothermal energy mostly in
California and Nevada.
The major challenges for the ethanol
industry involve educating the public about the
benefits of ethanol, marketing access and how
to get the fuel to market. PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
42 Prairie Business Magazine August 2012
|ENERGY|
Natural gas firm pumpingbillions into western N.D.Company building threeprocessing plants and two pipelinesBY ALAN VAN ORMER
ONEOK, a Tulsa, Okla.-based natural gas
gathering and processing company, will
invest up to $3.7 billion for natural gas,
natural gas liquids and crude oil infrastructure in
the Bakken Shale in western North Dakota in the
next three years.
“There has been tremendous drilling
activity by oil producers recently,” says Brad
Borror, supervisor for external communica-
tions for ONEOK. “Currently, there is not the
available infrastructure to capture all of the
natural gas and natural gas liquids.”
The company’s plans include the con-
struction of three natural gas processing plants,
a natural gas liquids (NGL) pipeline — the
BakkenNGLPipeline— fromSidney,Mont., to
northern Colorado and a 1,300-mile crude oil
pipeline — the Bakken Crude Express Pipeline
— from the Bakken toCushing,Okla.Each nat-
ural gas processing plant and related gathering
system is expected to employ approximately 100
workers.
“The Williston Basin is called a liquids-
rich shale play,” Borror says. “The driving activ-
ity is oil production.Natural gas and liquids are
associated with the oil production.”
ONEOK is the sole general partner and
owns 43.4 percent of ONEOK Partners LP, a
publicly traded limited partnership engaged in
natural gas gathering and processing, natural
gas pipelines and NGL.
According to a press release from North
Dakota Gov. Jack Dalrymple announcing the
start of ONEOK’s first natural gas plant,
between January and November of 2011,North
Dakota’s production of natural gas increased 53
percent, to a record 521 million cubic feet per
day. That’s enough natural gas to heat 1.3 mil-
lion homes. By the end of 2012, the state’s
capacity to process natural gas is expected to
reach 1.1 billion cubic feet per day.
Capture incentivesTo promote the processing of natural gas,
the state of North Dakota provides sales and
use-tax exemptions that may be applied toward
the purchase of building materials, production
equipment and other property used in the con-
struction or expansion of a natural gas process-
ing plant, the press release says. In addition,pur-
chases of machinery and equipment needed to
complete environmental upgrades may also
qualify for tax exemptions. The state, through
the Oil and Gas Research Council and in part-
nership with private industry, also has invested
more than $3 million, researching new tech-
nologies to expand the capture of natural gas.
Borror says that the estimates on Bakken-
related oil and natural gas change monthly. “If
there is natural gas needing to be captured, and
it makes sense business and economic-wise to
increase our infrastructure, we will evaluate
additional opportunities as they become avail-
able,” he says. “We believe there is currently a
sufficient supply of natural gas to fulfill our
current investments.”
The natural gas stream is separated from
the oil at the wellhead and, through its pipeline
gathering systems,ONEOK sends it to one of its
processing plants to process the natural gas and
send it out to the marketplace where it can be
used for home heating, business or commercial
use or electric generation.
The NGL needs further processing,
which is why a pipeline is being built to north-
ern Colorado that will connect with an exist-
ing pipeline and move the NGL to storage and
fractionation facilities in central Kansas. There
43www.prairiebizmag.com
it will be converted into marketable products,
including propane and butane.
In addition, ONEOK is addressing the con-
cerns with natural gas flaring; a waste of a domes-
tic energy source that Borror says can be used
locally and affordably.
“We’re providing services that ultimately
capture that flaring,” he says.
ONEOK’s first plant — Garden Creek Gas
Plant — about 10 miles northeast of Watford
City, N.D., is operating and can process 100 mil-
lion cubic feet of natural gas per day. A second
100-million-cubic-feet plant — Stateline I — is
slated to be finished later in 2012. The third 100-
million-cubic-feet plant — Stateline II — will be
on line in the first half of 2013. Both will be in
Williams County near the Montana and North
Dakota border.
According to a recent press release from Sen.
John Hoeven,R-N.D.,with the new Garden Creek
plant,North Dakota now has 16 plants processing
Bakken Shale and Three Forks natural gas.
The natural gas liquids pipeline is under
construction and is expected to be completed in
early 2013. The crude oil pipeline is also slated to
be completed in 2015.
“Weather is always a challenge in the winter
time,”Borror says.“Our timelines for suitable con-
struction because of theweather have shrunk.The
weather provides its own challenges.”
Borror adds that the Bakken is a tremendous
oil field that has potential to tap natural gas.
“We’re in the natural gas business,”he says.“There
are huge quantities of natural gas and natural gas
liquids available in the Bakken. It makes sense for
us to build out these plants and infrastructure to
get the natural gas to the market.” PB
AlanVanOrmerEditor, Prairie Business
701-371-9578, [email protected]
Deliveringengineering-driven oil
and gas development fornearly 75 years.
k l j eng.com800 213 3860
Deliveringdriven-engineering oil
and gas developmennearly 75 years.
. comk l jeng800 213 386
nt for
60800.632.2277 www.barr.com 701.255.5460
Barr’s 500 engineers, scientists, and technicalspecialists provide engineering andenvironmental consulting services to clientsin industries such as power, mining, refining,and manufacturing, as well as with governmentagencies, attorneys, and natural-resource-management organizations.
North DakotaMinnesotaMichiganMissouriAlberta
resourceful. naturally.
44 Prairie Business Magazine August 2012
|ENERGY BRIEFS|
Criteria:Professional Excellence:Demonstrate excellence, creativity andinitiative in their business or profes-sion.
Community Service:Local, state, national orinternational participation.Charitable services, politicalpursuits, religious groups,chambers, merchant’sassociations, etc.
Personal Leadership:Helping themselves and othersreach their full leadership potential.
Prairie Business magazine’s 40under 40 listing is slated to run inthe December 2012 issue. We areseeking nominations forcandidates from North Dakota,South Dakota and westernMinnesota for this year’s 40 under40. In order to be considered, can-didates must be 39 years old oryounger (and can’t turn 40 untilJanuary 2013 or later).
Do you know a young professionalwho deserves recognition?
Nominate Today!Nominate Today!The 40 under 40 issue ofPrairie Businessmagazine actively supports andcelebrates young professionals. The award honors individuals who strivetoward the highest levels of personal and professional accomplishments,who excel in their chosen field, devote time and energy to their communityin ameaningful way, and forge paths of leadership.
To nominate someone, please send your contact information along with your nominee’s age, name,title, company name and a short bio to editor Alan Van Ormer at [email protected].
Bank shares royaltieswith oil-impacted towns
A bank with mineral interests in western North Dakota
is returning some of its royalty income to communities that
are impacted by oil development.
AgriBank is the finance bank for Farm Credit Services.
The bank will make $500,000 available in grants for infra-
structure, housing, medical facilities, education and other
needs.
The mineral rights were acquired in the bank’s foreclo-
sure activities in the Depression era.
N.D. diesel refinery permit approvedThe Stark County Commission has approved a per-
mit for a proposed $325 million diesel refinery near
Dickinson, N.D.
The commission approved the request to rezone 274
acres of land between Dickinson and South Heart from agri-
cultural to industrial for the refinery’s construction.
A subsidiary of Bismarck, N.D.-based MDU Resources
Group Inc. is planning the refinery that could be completed
in 2014.
Officials have said that it would produce up to 10,000
barrels of diesel per day.
1 2
45www.prairiebizmag.com
|BUSINESS TO BUSINESS|PRAIRIE BUSINESS
To Advertise:John Fetsch701.238.9574 • [email protected]
Brad Boyd1.800.641.0683 • [email protected]
Shelly Larson701.866.3628 • [email protected]
Member FDIC
46 Prairie Business Magazine August 2012
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