PBMay 2013

May 2013

Ready for the RushTourism officials anticipate busy summer seasonpg. 28

ALSOPlaying Up Ag

Agritourism promotes region's rural aspects

pg. 34

Fly the Private SkiesIncreasing air travel demands means new

business for aviation service providers pg. 38

fargomoorhead.org

North Dakota. Doing Business Better. With support from North Dakota’s entrepreneurial programs, StopSensor makes semi-trailer unloading easier, reducing waste and risk of injury for farmers and other businesses. Learn how North Dakota is doing business better at www.NDBusiness.com

http://www.NDBusiness.com

4 Prairie Business Magazine May 2013

|INSIDE|May 2013 VOL 14 ISSUE 5

FEATURES DEPARTMENTS6 Editor’s Note

BY KRIS BEVILL

Changing with the season

8 Business Advice BY MATTHEW D. MOHR

Learners lead

8 Unmanned Aircraft SystemsBY RYAN AASHEIM

UAS Action Summit

10 FinanceBY JOHN GIESE

Running a year-round business in a seasonal market

12 Research & Technology BY DELORE ZIMMERMAN

Water is life

14 Economic Development BY PAT COSTELLO

South Dakota: Not a low wage state

16 Prairie News

20 Prairie People

24 Business DevelopmentUSDA expands StrikeForce to include Dakotas

38 TransportationUp, up and away

40 South DakotaEducating for expansion

42 Western North DakotaPromoting the positives

44 Energy

47 Business to Business

48 By the Numbers

Next MonthThe June issue of Prairie Businessmagazine will cover some of the various workforce issuesfacing employers in the region. The issue will also include a review of Bill Gates' visit toConcordia College in Moorhead, Minn., to discuss social entrepreneurship.

Mount Rushmore and othernational parks in South Dakotaattract more than 3 million visitors to the state annually, generating $165 million inspending in communities surrounding the parks, accordingto statistics released by theNational Park Service. PHOTO: SOUTH DAKOTADEPARTMENT OF TOURISM

28 TOURISMReady for the Rush Officials expect healthy summer tourism season throughout region

AGRITOURISMGetting Back to the FarmAgritourism offers opportunity to visit rural roots

34

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Coteau des Prairies Lodge, located near Rutland in southeast North Dakota,offers a number of agritourism services, including sleigh rides on the prairiebelow the lodge. PHOTO: PHILLIP BREKER

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|EDITOR’S NOTE|

Changing with the season

Idon’t know about you, but I am ready for summer. Spring and its rejuvenating sense of

change and renewal is typically my favorite season, but since we seem to be skipping

spring on the northern Plains this year, I’ll take what I can get. After speaking with

tourism and parks and recreation officials for this month’s feature on the upcoming summer

travel season, (page 22) it seems we’re all on the same page. It’s been a long winter for every-

one and those in the know are optimistic that this summer’s travel season will meet or beat

last year’s activity as people eagerly seek out warm weather fun.

This issue also highlights agritourism, a niche market of the area’s tourism industry that

encompasses a variety of outdoor activities, from pick-your-own berry farms and farmer’s

markets to trail rides or rural bed and breakfasts. North Dakota’s tourism division is eager to

grow this sector of the market and is actively recruiting new operators, as discussed in

“Getting Back to the Farm,” (page 26) but agritourism opportunities abound in South Dakota

and Minnesota as well. Interest is growing in agritourism for a few reasons. The primary driv-

er in this region seems to be young families who grew up in rural settings but are raising their

children away from the farm and want to recapture a bit of that agriculture-based experience

for their children. As a former farm kid now raising my children in North Dakota’s most

urban setting, I can attest to that and I hope to see the agritourism sector continue to grow

and prosper.

We may not have had a long spring, but it is still the season of change and Prairie

Business is embracing the sentiment. Beginning this month, we’re providing expanded con-

tent in our digital issues. We’re excited to offer additional information to you and if you aren’t

receiving our digital version each month, I encourage you to visit our website,

www.prairiebizmag.com, and sign up for a free subscription. Then grab your device of

choice, pour an icy cold drink, pull up a lounge chair and read on while you await summer

vacation.

KRIS [email protected]

Maplewood State Park, located nearPelican Rapids, Minn., attracted morethan 23,000 visitors last year, includingthe editor and her family. According tothe Minnesota Department of NaturalResources, every visitor to Minnesotastate parks returns about $26 per day to local economies.

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Answers you can trust - From people who care

800-323-7583

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Let Dacotah Paper Co.Show you how!

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Sales Director:JOHN FETSCH701.212.1026 [email protected]

Sales:BRAD BOYD - western ND/western SD800.641.0683 [email protected]

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Editorial Advisors:Dwaine Chapel, Executive Director, SouthDakota State University Innovation Campus;Bruce Gjovig, Director, Center for Innovation;Lisa Gulland-Nelson, CommunicationsCoordinator, Greater Fargo Moorhead EDC;Tonya Joe (T.J.) Hansen, Assistant Professor ofEconomics, Minnesota State UniversityMoorhead; Dusty Johnson, Chief of Staff forSouth Dakota Gov. Dennis Daugaard’s office;Brekka Kramer, General Manager of Odney;Matthew Mohr, President/CEO, Dacotah PaperCompany; Nancy Straw, President, West CentralInitiative

Prairie Business magazine is published monthlyby the Grand Forks Herald and ForumCommunications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203.Qualifying subscriptions are available free ofcharge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). Theopinions of writers featured in Prairie Business aretheir own. Unsolicited manuscripts, photo-graphs, artwork are encouraged but will not bereturned without a self-addressed, stampedenvelope.

Subscriptions Free subscriptions are availableonline to qualified requestors at www.prairiebizmag.com

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|BUSINESS ADVICE|

Learners leadBY MATTHEW D. MOHR

Finding correct information in the midst of the

endless information available today is often a chal-

lenge, but determining what information is of

value is even more difficult. Generally, most leaders are

committed to continuous learning.

Regional accounting firm Eide Bailly has established a

business segment to provide valuable learning to its per-

sonnel, clients and nonclients. The company recently spon-

sored a seminar featuring Paul Lucy, director of North

Dakota’s economic development division, presenting for

the North Dakota tax department to review certain tax

advantages available to North Dakota taxpayers.

A variety of people attended the seminar, including

tax professionals and business community members inter-

ested in learning more about North Dakota’s available tax

advantages. Attendees heard how the process of receiving

the North Dakota seed capital investment tax credit works

and how to get primary sector designation, along with a

host of other ideas which help businesses flourish in the

region. The seminar provided very important pieces of

information to attendees, including advice as to how start-

up enterprises seeking to establish in the primary sector

should be sure to follow the correct process to get the most

advantageous tax status.

Even if just a review of what one knows, continuous

learning is a sign of leadership. PBMatthew D. Mohr

CEO, Dacotah Paper [email protected]

|UNMANNED AIRCRAFT SYSTEMS |

UASActionSummitBY RYAN AASHEIM

Since 2006, the month of May has meant one thing

for the Red River Valley Research Corridor — the

annual preparation of the Unmanned Aircraft

Systems Action Summit. Now in its seventh year, the

summit has experienced multiple stages of evolution, a

reflection of the growth and change of the UAS industry

itself. During the first UAS Summit, much of the focus

was placed on military applications, particularly on the

U.S. military, which was the largest user of UAS technol-

ogy at the time. Since then, the focus has shifted signifi-

cantly from military to commercial and civil markets as

the private sector appetite for UAS, or “drones,” as they

are commonly referred to by the general public, has

grown and federal budget deficits have forced drastic

military spending cuts.

This is an important year for the UAS industry. The

nation is awaiting the Federal Aviation Administration’s

decision on the establishment of six UAS Airspace

Integration Test Sites later this year. Test sites will be used as

a proving ground for the full integration of UAS into the

National Airspace System by 2015 as mandated in the FAA

Modernization and Reform Act of 2012.

The Grand Forks, N.D., region is among more than 25

locales competing for the rights to be one of the six test sites.

Those selected as one of the six UAS test sites stand to gain

significant economic benefit. We can expect many aero-

space-related firms to flock to regions that have access to air-

space. Professionals in the UAS industry will conduct

research, testing and training to prepare their technology for

the marketplace. According to a recent report by the

Association for Unmanned Vehicle Systems International,

the economic impact of the integration of UAS into the

National Airspace System is expected to be $13.6 billion in

the first three years (2015-2018) and will create more than

70,000 jobs.

International airspace strategies, test sites and region-

al airspace are several of the important topics that will be

explored by experts and attendees of the 2013 Research

Corridor UAS Action Summit. The event will also welcome

leaders and innovators from the law enforcement commu-

nity, Customs and Border Protection, and emergency

responders to talk about the important public safety and

lifesaving capabilities of UAS platforms. At this time, it is

expected that two of the most promising sectors for UAS

growth are precision agriculture and public safety.

The event will also welcome two heavy hitters from

the Aerospace and UAS industry — Tom Vice, corporate

vice president of Northrop Grumman Aerospace Systems,

and Michael Toscano, president of AUVSI. Privacy and

Fourth Amendment concerns have shed a negative light on

this promising industry. The 2013 UAS Summit will fea-

ture a town hall-style panel discussion on privacy and legal

aspects of UAS technology featuring some of the nation’s

leading advocates on both sides of the issue.

The RRVRC is pleased to co-host this year’s UAS

Summit with Northrop Grumman, the City of Grand Forks

and Sens. John Hoeven, R-N.D., and Heidi Heitkamp, D-N.D.

Exhibit space is still available and we invite you to con-

sider attending this industry event and networking opportu-

nity. For more information about the summit or to register,

please visit www.theresearchcorridor.com. PBRyan Aasheim

Associate, Praxis Strategy Group701-499-6994

[email protected]


http://www.theresearchcorridor.com


Featured Speakers:• U.S. Senator John Hoeven• U.S. Senator Heidi Heitkamp• Michael Toscano, President of AUVSI• Col. Select Scott Coon, U.S. Air Force, Chief of NATO AGS Operations• Tom Vice, Corporate Vice President and President, Northrop Grumman Aerospace Systems

A GLOBAL DESTINATION FOR THE UAS INDUSTRY. Unmanned systems in civil and commercial markets aren’t some far-offdream. The future is here now. Don’t miss the 7th annual UAS Action Sum-mit—hosted by U.S. Senators John Hoeven and Heidi Heitkamp, NorthropGrumman, Red River Valley Research Corridor and the City of Grand Forks.

Tap into the potential of UAS:HEAR FROM UNMANNED SYSTEMS EXPERTSUAS leaders from federal agencies, universities, commercial entities and morewill discuss the latest developments in UAS applications. Exhibitors, Net-working Opportunities and more. Check theresearchcorridor.com/UASsum-mit2013 for more details and new agenda items.

Register online at THERESEARCHCORRIDOR.COM/UASSUMMIT2013

Speaker Session Topics Include:• International Airspace Integration Strategies• Privacy Town Hall: A Legal, Moral, and Ethics Dialogue• Exploring Law Enforcement and Emergency Services.• UAS in Agriculture – Industry and Market Overview

THERESEARCHCORRIDOR.COM/UASSUMMIT2013

THERESEARCHCORRIDOR.COM/UASSUMMIT2013

10 Prairie Business Magazine May 2013 10www.prairiebizmag.com

|FINANCE|

Running a year-round business in a seasonal marketBY JOHN GIESE

If you own a landscaping business or air condi-

tioning repair service, the busiest time of the year

is just around the corner. But if you specialize in

planning holiday parties, the lean times are here.

Either way, running a seasonal business calls for a

high degree of financial flexibility.

Build a 12-month budgetPlanning is the key to making a seasonal business

thrive financially. Even if you earn most of your rev-

enue in just a few months, consider your income and

expenses over a full 12-month period. Many expenses

continue year-round even if you scale back your oper-

ations in the off-season, so your budget planning

should do the same.

Here are some tips to help you establish and man-

age a year-round budget:

• Add up all your fixed costs such as rent, loan pay-

ments, utilities and services, taxes and year-round pay-

roll. These represent the minimum your business needs

to earn.

• Factor in variable costs such as inventory, sup-

plies, and seasonal staff.

• Establish a business savings account to help cover

ongoing costs as well as unexpected expenses. Consider

setting up regular payments to this account when the

revenue is coming in.

• Think about how you pay yourself. In a startup

or smaller business you may not draw a salary, but you

should plan ahead for paying your personal expenses

year-round.

Of course, your peak revenue may not match your

expectations. If it falls short, adjust the expense side

wherever possible to compensate. And if you take in

more than you expect, consider making investments in

the business, building up the savings account or both.

Ramp up your down time“There is no off-season” is the rule today for ath-

letes who want to perform their best. That maxim holds

true for many businesses as well. Some business owners

find new ways to expand their products and services to

appeal to customers beyond high season. For example,

a landscaping company might offer snow removal or

holiday decorating services in December.

Chances are, however, that you’ll still face a drop in

income at some point on the calendar. When the rev-

enue falls off, a line of credit can help cover your

expenses and keep your finances in order. You may even

be able to link a line of credit directly to your business

checking account and online banking.

Keep in touchPerhaps the single most important thing you can

do in the off-season is to stay in touch with your cus-

tomers. To help sustain customer relationships year-

round, many business owners send thank-you messages

or special offers. Others launch promotions such as off-

season or early-bird discounts. Whatever tactic you

choose, make every communication a welcome one by

offering something of real interest or value.

Protect your investmentWhile the demand for products and services may

vary throughout the year, risk is a constant. Take advan-

tage of some down time to make sure your business is

protected from business-related risks.

If you haven’t yet done so, talk to your banker or

business insurance planner about the risks inherent in

your business and learn how to set up a business prop-

erty and liability plan. Some of the building blocks of a

comprehensive plan include business liability insur-

ance, business property insurance, workers’ compensa-

tion, business auto insurance, business umbrella liabili-

ty insurance and business identity theft insurance. If

you already have a plan, schedule a check-up to make

sure it has grown with you and your business.

No matter how creatively you plan, it may be a

challenge to sell as many health club memberships in

June as it is in January. But by keeping your perspec-

tive during the peak season and making the most of

the off season, you can even out some of the financial

bumps and groom your business for a smoother ride

year-round. PBJohn Giese

Regional Business Banking Manager, Wells [email protected]

Twitter: @WellsFargo



www.dakotacarrier.com 11www.prairiebizmag.com

http://www.dakotacarrier.com


CIVILDES.COM

dakotacarrier.com


|RESEARCH & TECHNOLOGY|

Water is lifeBY DELORE ZIMMERMAN

Water scarcity and lack of safe drinking

water is one of the world's leading

problems. According to the Blue

Planet Network more than 1.1 billion people —

one in every six people globally — lack access to

safe drinking water.

I recently arrived in Accra, Ghana, in West

Africa on World Water Day, which amplified my

mindfulness of water. The Greater Accra

Metropolitan Area (GAMA) is home to about 4

million people and parts of GAMA are now

rationing water due to technical problems with fil-

ters at a major treatment plant. I immediately won-

dered about the future of water here, where more

than one in three people are under 14 and the

country is adding nearly 500,000 children a year,

leading to a doubling of the population in Ghana

to 25 million by 2050.

Worldwide there is a strong correlation

between water stress, poverty and hunger. Rain-fed

agriculture is practiced in all parts of the world and

the amount of rainfall is a clear-cut determinant of

yields. Rain-fed agriculture is most significant in

Sub-Saharan Africa where it accounts for about 96

percent of the cropland, but we in the Red River

Valley and across the Great Plains all understand

the impact that the amount and timing of rainfall

can have on crops and livelihoods.

So yes, water is life; but it can also mean strife.

My home in Grand Forks, N.D., had a basement

full in 1997 and at the office we lost everything

below the top drawer of a three-drawer file cabinet.

Fortunately for Grand Forks its flood protection

system is up to the most troublesome spring thaws,

but Fargo and other cities along the Red River

remain vulnerable and anxiously monitor each

year’s snowfall and melt situation and must pre-

pare accordingly.

"Whiskey is for drinking; water is for fighting

over,” a quote attributed to Mark Twain, could be

a harbinger of the future as we can anticipate more

conflicts among water users including mining and

extractive industries, growing urban areas and

crop irrigation. In western North Dakota the focus

is on the use of hydraulic fracturing for oil produc-

tion and its effect on groundwater and the han-

dling of wastewater.

In his book “Empire Wilderness,” Robert

Kaplan wonders how the United States would be

different had it been settled from west to east, orig-

inating under conditions warranting large central-

ized government for big public works for water. We

can think about how that sort of calculation might

take its course in the future here as more rigorous

management of water resources in times of plenty

and scarcity can be expected.

Notably, the proposed Red River Valley Water

Supply Project, a plan to transfer water from the

Missouri River to the Red River Valley is vital to

sustaining the valley’s economy and population

growth. I’m not imagining draconian top-down

mandates in this instance. Instead, a highly central-

ized government solution will need to give way to

the ebb and flow of creative solutions and mean-

ingful partnerships between local, state and federal

entities — and maybe even a little whiskey. PB

Delore ZimmermanPresident, Praxis Strategy Group

Executive Director, Red River Valley Research [email protected]

Twitter: @DeloreZimmerman




NextStepND.com

AE2snexus.com


|ECONOMIC DEVELOPMENT|

South Dakota: Not a low-wage stateBY PAT COSTELLO

Here in the Governor’s Office of

Economic Development, a two-year-

long study of occupations and wages

is showing the country what we in the state

have known for some time: South Dakota is

not a low-wage state.

We have all heard the rhetoric before: “But

I just won’t earn as much in South Dakota!”

We have also heard the rebuttal: “But South

Dakota has low taxes and a low cost of living.”

This is definitely true. But what exactly does it

mean in the grand scheme of wages versus costs?

For most people, purchasing power —

your remaining wages after paying taxes and

covering your cost of living — is what’s impor-

tant. The GOED wage study calculated that pur-

chasing power and found that in 2011, we

ranked 26th out of 50 states in purchasing

power, which is a far cry from the “lowest wages

in the nation” and “way-below-average salary,”

phrases we have become all to familiar with.

So where did the low-wage misconception

come from and how did our study prove the

contrary? To begin, the U.S. Department of

Labor puts out an annual average wage and

salary calculation, which is determined by divid-

ing each state’s total wages paid by the number of

full- and part-time employees. While this num-

ber is accurate, it is misleading considering the

disproportionally high number of part-time jobs

held in South Dakota.

To get a more accurate picture, Mark

Boehm, GOED’s tax and industry analyst, used

the labor department’s Standard Occupational

Codes, which provide detailed, accurate wage

and employment information for each state by

specific occupation, and deducted federal

income taxes, state income taxes and

FICA/Social Security from the median gross pay.

He also factored in the Council for Community

and Economic Research’s (C2ER) Cost of Living

Index, based on the largest city in each state. This

method was used to calculate the purchasing

power for more than 550 occupations that are

found in South Dakota. The results for each

occupation are found in the study.

For the purposes of this study, all wage

earners were assumed to file as single, using the

standard deduction, with no dependents.

If sales tax, property taxes and other fees

such as vehicle registration taxes were included

in this study, South Dakota’s rank would be even

higher. At this time, the most current numbers

available reflect 2011 prices. The 2012 update is

expected to be out early this summer.

This data is all available on our website,

www.sdreadytowork.com. Simply click on “News

& Media,” and then “Publications & Studies.”

I encourage everyone to get online and

take a look at what we have out there. I’m opti-

mistic that this useful information will help

economic developers break down the “low

wage” myth in South Dakota. PB

Pat CostelloCommissioner, South Dakota Governor’s

Office of Economic [email protected]

Twitter: @sdgoed

http://www.sdreadytowork.com




forumprinting.com

interstateeng.com

jlgarchitect.com


Prairie News Industry News & Trends

Minot airportreceives award, city approves railinfrastructure funding

The Minot International

Airport recently received the

2012 Commercial Service

Airport of the Year award from

the North Dakota Aeronautics

Commission in partnership

with the Airport Association of

North Dakota in recognition

for excellence in maintaining

safety, project management

and community awareness.

In 2012, the airport

began work on a terminal area

study which resulted in the

city’s decision to begin multi-

ple large improvement proj-

ects, including a new terminal

building to accommodate the

airport’s increasing number of

passengers. The airport also

worked with carriers to

increase the number of daily

flights offered and collaborated

with the community to offer a

free air show, which drew an

estimated 15,000 attendees.

In April, the Minot City

Council approved $3.4 million

from the city’s MAGIC Fund

for rail infrastructure that will

support the expansion of sever-

al agriculture-related opera-

tions and a manufacturing

company. About 7,800 linear

feet of rail will be installed this

spring at the Port of the North

Dakota. The company expan-

sions as a result of the expand-

ed rail infrastructure are

expected to support 240 jobs,

according to the Minot Area

Development Corp., which

submitted the application for

funding to support the project.

Essentia launches $80 million Fargo expansion planEssentia Health recently announced it will invest $80 million over the next three years in multi-

ple construction projects at its campuses in Fargo, beginning with the construction of a 105,000-

square-foot, four-story hospital tower at its 32nd Avenue Fargo hospital, a support services building

in south Fargo, 400 parking spaces, and major renovations at its South University Clinic.

In early April, Essentia leaders said they expected parking lot work to begin by the end of the

month, followed by a groundbreaking for the new tower this summer. The tower will include high-

tech suites for imaging, endoscopy, interventional radiology and heart catheterization, and is slated to

be complete in January 2015. The expansion will initially add 28 new beds, but there will be room to

more than double that number in the future, according to the organization.

Construction of the 25,000-square-foot support services building will also begin this summer.

When complete, the unit will serve as a regional supply distribution center for Essentia and will provide

office space for coding and business services departments. The clinic renovations will allow several

departments to expand and will move support staff off-site, returning the entire facility to clinic space.

In 2014, Essentia will begin constructing a specialty clinic building at its 32nd Avenue campus

to allow additional space for physicians and other providers. That project is scheduled to be complete

in March 2015.

The third phase of Essentia’s expansion plan will double the capacity of the emergency department

at 32nd Avenue from 13 rooms to 26 rooms and will expand operating rooms and imaging services in that

department. That project is expected to commence in December 2014 and will extend into early 2016.

Dr. Greg Glasner, president and chief medical officer of Essentia’s West Region, said the expan-

sion projects are necessary to meet growing demand and the changing health care environment.

Essentia Health will begin construction this year on a four-story tower at its south Fargo hospital campus.The facility is expected to be complete in early 2015. IMAGE: ESSENTIA HEALTH


|PRAIRIE NEWS|

RDO acquires SD survey contract from Mathison’s

RDO Equipment Co.’s positioning division,

RDO Integrated Controls, has acquired the

Topcon Survey Contract for the state of South

Dakota from Mathison’s Co. Inc. RDOIC will also

assume the responsibility for providing construc-

tion supplies for RDO Equipment Co. construc-

tion stores across Minnesota, Montana, North

Dakota, South Dakota and Wyoming.

Mathison’s has supplied the survey commu-

nity throughout the region for more than 50 years.

It is shifting its focus to the company’s printing

and color graphics division.

Minneapolis developmentfirm opens western ND office

Minneapolis-based Oppidan Investment

Co., a national property development firm, will

open an office in Watford City, N.D., in order to

maintain a consistent presence in the town and

throughout the Bakken region.

The 2,500-square-foot office will be located

in Watford Plaza, Oppidan’s 120,000-square-foot

commercial development currently under con-

struction and scheduled to open in July. Oppidan

is also the developer of a 42-unit apartment com-

plex in Watford City that will open in June.

The company has invested a total of $150

million in projects throughout the Bakken region

in the past year.

Lake Region Healthcarelaunches local foods initiative

Fergus Falls, Minn.-based Lake Region

Healthcare will break ground this spring for a

local foods initiative called “Lake Region Takes

Root.” The project involves gardening, growing

and giving through community collaboration

and was inspired by a community health needs

assessment completed by Lake Region Healthcare

and Otter Tail Public Health, which indicated that

families with children under the age of 21 are

concerned about the ability to access fresh fruits

and vegetables at an affordable price. “After much

research, we’ve determined that using this

resource to grow local foods is a natural fit with

that vision,” LRH CEO Larry Schulz said in a

statement. “It’s also an opportunity to do some-

thing unique to contain health care costs through

preventative health measures.”

Food will be grown on land close to the

LRH walk-in clinic in Fergus Falls and will be

distributed primarily to WIC clients in Otter

Tail County.


abbusiness.com

|PRAIRIE NEWS|


Representatives of Opp Construction accept the Grand Safety Excellence Award from the AssociatedGeneral Contractors of America. From left: Dave Opp, chief safety director; Marissa Taylor, HR manager; SallyOpp, operations manager; Greg Opp, president; Paul Diederich, AGC of America 2013 president and JosephJarboe, AGC of America 2012 president.

Opp Constructionnamed safest in nation

Grand Forks, N.D.-based Opp

Construction has been named the

nation’s safest construction company

in 2013 by the Associated General

Contractors of America. The company

was selected to receive the award based

on its exceptional leadership in safety

through dedication to the develop-

ment and implementation of premier

safety and loss prevention programs,

according to AGC.

In addition to the Grand Award

for safety, the company also received a

first place award in its division for safe-

ty excellence. The AGC distributes first

place awards in a number of cate-

gories, based on company size, the

amount of work performed and the

type of work performed. Winners are

selected by a panel of five independent

safety professionals.

Williston job fair attracts more than 1,000 workers

More than 1,300 job seekers attended the

Williston Spring Job Fair on March 28, according

to the Williston Economic Development office.

The turn-out was nearly twice as many as was

expected. More than 100 employers also attend-

ed the fair, including schools, banks, insurance

companies, oilfield companies, grocery stores

and restaurants.

Marco expands in IowaSt. Cloud, Minn.-based Marco, a technolo-

gy advisory firm specializing in providing net-

work expertise to voice, data, video and print

solutions, has purchased Iowa's Hyde Telecom

Partners Inc. Hyde Telecom employees have been

retained by Marco.

Marco has acquired six companies in nine

months. Prior to the purchase of Hyde Telecom,

its most recent acquisition was also in Iowa, where

it now employs 100 people. A total of 650 work for

Marco throughout 34 locations in the Upper

Midwest, including five locations in each of the

Dakotas, 12 locations in Minnesota and offices in

Wisconsin and Iowa.

Bismarck hospital adds interventional radiology lab

St. Alexius Medical Center, a 306-bed, full-

service health care system based in Bismarck,

N.D., recently opened a second interventional

radiology lab. The addition was necessary to meet

increasing demands for services performed by its

team of three board-certified interventional radi-

ologists and three certified family nurse practi-

tioners, according to the organization.

Interventional radiology is a sub-specialty of

radiology that offers target treatment options for

blood clots, spine fractures, fibroid embolization

and peripheral vascular disease. The procedures

performed by interventional radiologists are min-

imally invasive and provide less risk and recovery

time compared to open surgery.

St. Alexius is a member of Mayo Clinic Care

Network and serves patients in western and cen-

tral North Dakota. It is the only facility in its

region to offer interventional radiology services.


|PRAIRIE NEWS|

NCTC estimates $85 million impact on Northland communities

Northland Community & Technical College

generated an $85 million impact in northwest

Minnesota, according to a study by Wilder

Research. Additionally, the study found that the

college generates approximately $5 million in state

and local tax revenues annually and generates

more than 1,000 jobs in the region.

NCTC serves approximately 5,700 students

each year at campuses in East Grand Forks, Thief

River Falls and Roseau, Minn.

Sioux Falls building permitactivity remains strong

Building permit data from the city of Sioux

Falls, S.D., shows that the valuation for new resi-

dential construction from January to March 2013

is just over $56 million, compared to $21.7 million

in 2012 and $13.3 million in 2011. During that

time frame, 141 building permits were issued for

141 single-family units, compared to 99 last year

and just 51 in 2011.

“We’ve heard first-hand from many of our

members that the home building industry in our

market is picking back up,” Kevin Zomermaand,

president of the Home Builders Association of

Sioux Falls, said in a statement. “Consumers are

ready to move on from the downturn and they’re

finally ready to make the big move. With interest

rates still at all-time lows, it’s hard to say how long

this will last. People around here are smart though

and are still taking full advantage of the incredible

homeownership opportunities out there.”

Bemidji DowntownDevelopment Authority offers loan opportunities

The Downtown Development Authority

(DDA) of Bemidji, Minn., has established a fund

with the Northwest Minnesota Foundation that

will offer loans up to $5,000 with a goal of further

enhancing the business presence in downtown

Bemidji. The revolving loan program is to be used

to assist businesses in either locating downtown or

expanding their downtown business.

Loans are available to any business looking to

locate or expand in downtown Bemidji. Funds can

be used for building improvements, equipment,

inventory, supplies and working capital. The busi-

ness must maintain DDA membership through-

out the term of the loan. Applications are available

at www.nwmf.org under Business Development

on the Entrepreneur Development Program page.

McKnight Foundation gives $6 million to Northwest Minn. Foundation

Northwest Minnesota Foundation will

receive $6 million from the McKnight Foundation

over five years to support NMF’s programs, build

the organization’s endowment and support its

development as a community foundation.

NMF says the pledge reflects a commitment

on the part of the McKnight Foundation toward

the group’s goal of developing community assets

in northwest Minnesota.

“We are very appreciative of the support we

have received throughout our 26-year partner-

ship with the McKnight Foundation,” NMF

President Nancy Vyskocil said in a statement. “We

look forward to continued success, working

together to meet the needs of northwest

Minnesota through our Quality of Place strate-

gies and our unique work as the sole community

foundation of the region.”

ND creates 100,000 jobs in 10 years

The North Dakota Department of

Commerce announced April 5 that the state has

created 102,000 new jobs since 2000.

In 2012, North Dakota had an average

annual employment level of 429,800, an increase

of 102,100 from 2000 when the state had

327,700 workers. This represents an increase of

31.2 percent. North Dakota added 33,000 new

net jobs in 2012.

“Together with local developers and for-

ward-thinking private sector participants, the

North Dakota Department of Commerce can

show that our efforts are indeed facilitating

growth,” Al Anderson, commerce commissioner,

said in a statement. “We have added over 70,000

new jobs in the past five years and as we continue

to focus on greater economic diversification, we

will see even more jobs created.”

www.prai r iebizmag.com

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Prairie Business, a monthly magazine, and Talking Points, a weekly newsletter, focus on businesses in S.D., N.D., and Minn., that drive the regional economy, including agriculture, energy, health care, architecture and engineering, higher education and more.

The May issue of Prairie Business will cover the area’s agritourism industry, the availability of rural development funds in Minnesota and the expansion of charter flight services in the region.

Subscribe to the free digital edition of Prairie Business and sign up to receive Talking Points at www.prairiebizmag.com.

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|PRAIRIE PEOPLE|

Spectrum Aeromed hires Kost as COO

Spectrum Aeromed has hired Chad Kost to

serve in the company’s newly created position of

chief operating officer. In this role, Kost will handle

many aspects of the company’s daily operations and

procedures and will aid with strategic planning.

Prior to joining Spectrum Aeromed, Kost

spent 17 years in the banking industry, where he

most recently managed the financial reporting for

Bank of the West’s $3.4 billion direct consumer

loan portfolio. Kost also briefly aided Spectrum

Aeromed as a consultant.

Bemidji State names business school dean

Shawn Strong has been named dean of

Bemidji (Minn.) State University’s College of

Business, Technology and Communication. He will

begin on July 1 and will replace Carol Nielson, who

has served as interim dean of the college since

August 2011.

Before joining BSU, Strong spent 14 years as

a faculty member at Missouri State University,

serving as an assistant professor, associate profes-

sor, department chair and, most recently, as pro-

fessor of technology and construction manage-

ment. He says the student-focused nature of BSU

and the quality of the Bemidji community drew

him to the position.

McGraw joins Noridian as president, CEO

Tom McGraw has joined Noridian

Administrative Services, a wholly owned subsidiary

of Noridian Mutual Insurance Co., as the second

president and CEO to lead the company as it

expands its service offerings throughout the country.

McGraw has more than 25 years of experience

developing and managing operations and consult-

ing practices in government and the private sector

and has been at the forefront of numerous health

industry advancements including consumer direct-

ed care, health homes, health insurance exchanges,

web-based consumer health care information and

evidenced-based medicine.

Prior to joining Noridian, he served as senior

vice president of business development at

Amerigroup Corp. and senior vice president of

government solutions and government program

integrity at OptumInsight, a United Health Group

company focused on health technology.

Kotb named founding chair for basic sciences departmentat UND med school

Malak Kotb, a noted infectious disease and

biodefense expert, has been named the founding

chair of the Department of Basic Sciences at the

University of North Dakota School of Medicine

and Health Sciences. She will begin serving in this

role on July 1.

Kotb has been a tenured professor since 2008

at the University of Cincinnati College of

Medicine’s Department of Molecular Genetics,

Biochemistry and Microbiology/Immunology

and is a senior career research scientist at the

Veterans Affairs Medical Center in Cincinnati. Her

research expertise uses interdisciplinary

approaches to study the genetics and biology of

disease-modifying genes and pathways. She holds

two U.S. patents on her work in developing a

medical screening method for cancer and a target-

ed treatment of cancer. She is a 1997 Fulbright

Scholar, the author of more than 170 scientific

articles and has worked on and chaired numerous

grant review panels for the National institutes of

Health study sections, the Department of Veterans

Affairs and other national and international advi-

sory boards and granting agencies.

Kotb grew up in Egypt and received her bach-

elor’s degree from Ain Shams University in Cairo.

In 1972, she was selected by the International

Rotary as Goodwill Ambassador to the U.S. and

was given a full scholarship to cover her education

and living expenses.

AGC of America picksDiederich as president

The Associated General Contractors of

America has selected Paul Diederich, president of

West Fargo, N.D.-based Industrial Builders Inc., to

serve as the group’s president. Diederich, who has

worked in the industry since 1974 and currently

leads the company started by his father in 1953,

says the AGC allows construction firms to come

together to build knowledge and educate the pub-

lic about the role the construction industry serves

in supporting economic growth, making struc-

tures more efficient and providing rewarding

career opportunities.

Industrial Builders employs approximately

275 construction workers during peak seasons and

performs about $50 million worth of volume

annually.

Chad Kost Malak Kotb

Shawn Strong

Tom McGraw

Paul Diederich


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22 Prairie Business Magazine February 2012

Cirrus Aircraft co-founder and CEO Dale Klapmeier, left, has named Patrick Waddick as company president.PHOTO: CIRRUS AIRCRAFT

Cirrus Aircraft namesWaddick president

Dale Klapmeier, co-founder and CEO of

Duluth, Minn.-based Cirrus Aircraft,

announced that Pat Waddick has been pro-

moted from executive vice president and chief

operating officer to president and COO of the

company. In his new role, Waddick will be

responsible for daily company operations,

including sales and service, manufacturing

and supply chain, product development and

administration. Klapmeier will remain CEO

and will focus on new product development

and client relations.

Waddick joined Cirrus in 1988 and has

served in several leadership roles throughout

his career with the company, including chief

engineer, vice president of engineering and

senior vice president of engineering.

Cirrus Aircraft has locations in Duluth

and Grand Forks, N.D.

UND selects next provostUniversity of North Dakota President Robert

Kelley has named Thomas DiLorenzo as the next

provost and vice president for academic affairs. He

replaces Paul LeBel, who will assume a full-time

faculty position in UND’s School of Law, where he

served as dean prior to being named provost.

DiLorenzo previously served as associate vice

president for innovation, commercialization and

entrepreneurship at the University of Alabama at

Birmingham. As provost and vice president for aca-

demic affairs at UND, he will serve as the universi-

ty’s senior academic administrator and will oversee

the university’s academic division.

Ackerman-Estvold adds project engineer

Minot, N.D.-based Ackerman-Estvold

Engineering and Management Consulting Inc. has

hired Jeff Hawks to serve as a project engineer.

Hawks has eight years of experience in water

resources, land and site development and aviation

engineering, working most recently for HNTB

Corp. in Utah as a drainage and utility engineer.Jeff Hawks

Kyle RuhlandThomas DiLorenzo

Darwin Viet

Century Business Productsnames 2 to president’s club

Century Business Products Inc. has named

Kyle Ruhland and Darwin Viet to the company’s

President’s Club for 2012.

Ruhland and Viet, both of the Sioux Falls,

S.D., branch, are recognized for representing the

company’s values, product knowledge and excel-

lence in providing business solutions for current

and new customers.

Ruhland has worked for Century Business

Products for 10 years and has been named to the

president’s club for seven consecutive years.

Viet has worked for the company for three

years. This is his first election to the president’s club.

|PRAIRIE PEOPLE|


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|BUSINESS DEVELOPMENT|

Agriculture Secretary Tom Vilsack speaks at the U.S. Department of Agriculture’s StrikeForce for Rural Growth and Opportunity event held atVoorhees College in Denmark, S.C., on March 26. PHOTO: U.S. DEPARTMENT OF AGRICULTURE



The U.S. Department of

Agriculture announced in

March that it is expanding its

StrikeForce initiative to encourage

economic development in historically

poor counties in 16 states, including

North and South Dakota.

Originally launched in 2010 as a

pilot program in regions of Arkansas,

Georgia and Mississippi, the initia-

tive’s goal is to promote economic

growth in poverty-stricken counties

through collaboration between

USDA representatives and communi-

ty leaders. Representatives of USDA

agencies, including the Farm Service

Agency, Rural Development, Natural

Resources Conservation Service and

Food & Nutrition Service, provide

specialized guidance and assistance

to parties in targeted areas who are

interested in utilizing USDA pro-

grams to develop businesses or serv-

ices that will beneficially impact

those communities.

To identify areas in need of

focused support, the USDA uses U.S.

Census data to determine areas with

poverty rates of more than 20 percent.

The agency then contacts local officials

to increase awareness of USDA pro-

grams and recruit participants.

Secretary of Agriculture Tom

Vilsack says one reason persistently

poor communities struggle with high

poverty levels is because they have not

previously received much government

support. USDA aims to change that.

“We want you to help us figure out

what the community needs most and

then we’ll figure out within USDA’s

programs how to access the resources

for the technical assistance or person-

nel that will be able to make that hap-

pen,” he says. “We have a wide range of

tools and StrikeForce basically pro-

vides intensive care and a focused

effort in areas that have been persist-

ently poor. Working in partnership we

think we can leverage and more effec-

tively use our resources than we have

in the past.”

The expanded StrikeForce initia-

tive includes the North Dakota coun-

ties of Benson, Rolette and Sioux and

13 counties in South Dakota —

Bennett, Buffalo, Charles Mix, Corson,

Dewey, Gregory, Jackson, Lyman,

Mellette, Roberts, Shannon, Todd and

Ziebach. The targeted regions include

the states’ Native American reserva-

tions, and state agency representatives

say the initiative will allow them to

work closely with tribes to improve

their economic conditions.

“Although USDA Rural

Development finances many projects

on South Dakota’s reservations,

being designated as a StrikeForce

state to work on tribal lands compels

us to become more strategic in

bringing access of all Rural

Development’s programs to reserva-

tions,” says Elsie Meeks, USDA rural

development director for South

Dakota. “For example, one of our

initiatives will be to create a network

to provide more opportunities for

homeownership on tribal lands.

Along with home ownership and

business programs, Rural

Development will finance critical

infrastructure needed for growth

and a healthy environment on our

tribal lands.”

“We place a high value on the

partnership we have with our tribal

communities and the investments

USDA has made,” says Jasper

Schneider, North Dakota USDA Rural

Development director. “Secretary

Vilsack’s StrikeForce initiative will fur-

ther those efforts by focusing all of

USDA to increase outreach, provide

more technical assistance and help

communities leverage resources.”

Vilsack noted that despite North

Dakota’s overall stellar economic per-

formance, areas of the state that are

included in StrikeForce continue to

suffer from high poverty rates. “You’ve

got a boom and bust kind of deal

where you’ve got tremendous oppor-

tunities because of energy, and that has

created a real healthy economy in

USDA expands StrikeForceto include DakotasInitiative focuses on boosting economic development in poverty-stricken areasBY KRIS BEVILL



North Dakota, but not everybody is ben-

efitting from that economy,” he says.

Compared to a statewide unemployment

rate of less than 4 percent, the North

Dakota USDA Rural Development office

says the three counties included in the

initiative have official unemployment

rates as high as 15 percent. Actual unem-

ployment rates may be even higher. The

agency plans to work with the tribal

nations of Standing Rock Sioux Tribe,

Spirit Lake Tribe and Turtle Mountain

Band of Chippewa Indians to help

reduce those rates.

In addition to the Dakotas,

Arkansas, Georgia and Mississippi, other

states targeted under StrikeForce include

Alabama, Alaska, Arizona, Colorado,

New Mexico, Nevada, North Carolina,

South Carolina, Texas, Utah and Virginia.

Projects developed under the initiative

will vary to reflect each region’s unique

resources and needs, but examples of the

types of projects that have been success-

fully developed so far include food hubs

where local growers formed cooperatives

to market their products to large dis-

count stores, summer food programs to

deliver meals to children in need and

expanded health care services.

USDA agencies in previously exist-

ing StrikeForce regions reported notable

increases in the number of loan and

grant applications in 2012, which Vilsack

says proves the program is working and

makes him excited about the prospects of

the expanded initiative. “The most

important thing, when we’re dealing

with limited resources, is to make sure

that we leverage and coordinate and

focus those resources,” he says. “We know

that this is working, which is why we felt

confident that it could be extended to

other states where the needs are great.”

For more information, including

contact information for each state’s

StrikeForce representative, visit

www.usda.gov/StrikeForce. PB

Kris Bevill

Editor, Prairie Business

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|TOURISM|

Ready forthe RushOfficials expect healthy summer tourism seasonthroughout the regionBY KRIS BEVILL

The tourism industry contributes billions of dollars annually to state

economies in the northern Plains and is a critical source of tax rev-

enue for the states, particularly in South Dakota where it ranks

behind only agriculture in terms of size. The industry has experienced mod-

est but steady growth throughout the region since 2009 and early indicators

suggest that this year’s summer season will be another success, drawing more

visitors and spending dollars to the area than last year.

“Everything is looking fantastic,” says Wanda Goodman, media and

industry relations manager for the South Dakota Department of Tourism.

A report from IHS Global Insight found that tourism in South Dakota

had a nearly $2 billion direct impact on the state’s economy last year, up 5 per-

cent from the previous year, and generated $291 million in state and local tax

revenue. Based on information gathered by the tourism department through-

out the year, Goodman expects the industry’s impact on the state will be even

greater this year. In February, which Goodman says is the month most people

begin making summer travel plans, information requests and taxable sales were

up compared to February 2012, indicating increased interest from potential

Popular tourist destinations such as BadlandsNational Park in South Dakota help to draw millions of visitors to the state each year. PHOTO: SOUTH DAKOTA DEPARTMENT OF TOURISM


|TOURISM|

summer visitors. “Looking at national indicators, too, numbers

are looking good,” she says. “Certainly, there are standard con-

cerns, such as gas prices, that we continue to watch. But as long

as they stay stable and don’t go too high, I think we’re looking at

a good season.”

Mount Rushmore and the state’s other national parks,

including Badlands National Park, Jewel Cave National

Monument, Minuteman Missile National Historic Site, Missouri

National Recreation River and Wind Cave National Park, are

obvious tourist draws for South Dakota, tallying close to 3.8 mil-

lion visitors in 2011 and contributing $160 million in economic

impact, according to the National Park Service. “We attract visi-

tors from across the U.S. and around the world who come here

to experience these parks and then spend time and money enjoy-

ing the services provided by our neighboring communities and

getting to know all that this state has to offer,” Mount Rushmore

Superintendent Cheryl Schreier says.

The state tourism department intends to continue market-

ing Mount Rushmore’s appeal this year by taking the depart-

ment’s Mount Rushmore mascots on a bus tour to a dozen

Midwest cities. “People love them,” Goodman says. “That will

raise some awareness at the start of the season.”

While the state does attract a fair share of international

tourists, Goodman says the bulk of South Dakota’s tourist traffic

originates in Minnesota and Wisconsin. The department will

continue doing most of its marketing in neighboring states this

year, but Goodman says it’s also receiving good results from sev-

eral newer markets, including Kansas City, Mo.; Des Moines,

Iowa, and Chicago.

Additionally, South Dakota legislators approved funding

this year for several projects that are expected to positively

impact the industry. Among them is the first new state park in

South Dakota since 1972 — the 615-acre Good Earth State Park

at Blood Run, located southeast of Sioux Falls. Blood Run, a



|TOURISM|

known Native American trading and ceremonial center, has

been a National Historic Landmark since 1970 and is consid-

ered the most significant Oneota cultural site in the Midwest.

Goodman says the park will help the tourism department con-

nect Native American tourism stops located throughout the

eastern part of the state, which could contribute to an expan-

sion of tribal tourism as a niche segment of the state’s industry.

“Tribal tourism is an area that continues to gain interest,

especially with our international audience, but even with

some of our neighboring states,” she says. The tourism

department, led by tourism secretary Jim Hagen, is organiz-

ing listening sessions with the state’s tribes to gauge their lev-

els of interest in promoting tribal tourism. “We need to take

our cues from each tribe,” Goodman says. “Not all tribes are

going to want to do the same thing with tourism. Some may

not want to promote tourism at all. We need to find out what

it is that we can help with.”

Adventure tourism is another segment the department is

focused on expanding within the state. Goodman says there are

a number of adventure businesses already, such as hiking and

bike trail guiding companies, but she believes there is room to

grow and promote the segment further.

The South Dakota tourism department offers several

cooperative marketing campaigns to assist businesses and com-

munities in promoting themselves. Among them is the

Matching Dollar Challenge program, which provides matching

grants to help businesses execute marketing plans. The depart-

ment also collaborates with local convention and visitors

bureaus to support their marketing efforts.

North DakotaTourism is the third-largest industry in North Dakota,

after agriculture and energy. In 2011, the industry drew about

17 million visitors to the state, generating $4.8 billion in spend-

ing, according to estimates compiled by North Dakota State

University. Year-end statistics for 2012 show continued growth

Federal budget cuts threatened the closure of some National Park Service sites this year, including the Painted Canyon Overlook in NorthDakota’s Badlands, but those issues have mostly been resolved. PHOTO: NATIONAL PARK SERVICE


in the industry and Sara Otte Coleman, director of North Dakota

Tourism, says several factors contribute to another optimistic

outlook for this year’s travel season. Forty-two new hotels have

been built in North Dakota since 2011, adding 3,500 rooms. An

additional 39 properties, accounting for approximately 3,700

new rooms, are expected to be added this year. “Additionally, we

have more airlines flying in and more seats available,” she says.

“There are several new lodges, venue additions and attractions

opening as well.”

North Dakota focuses its tourism marketing campaigns on

neighboring states and bordering Canadian provinces. Otte

Coleman says the main reason people travel to North Dakota is

to participate in outdoor activities and the state could use more

outdoor recreation providers to meet the needs and expectations

of travelers. “This includes a variety of services from full-service

resorts, guest ranches, active farm stays and guided adventures,”

she says. “We also do not have a lot of businesses offering out-

door sports rentals.”

North Dakota offers several grant programs to assist new

and existing tourism-related businesses with their ventures,

including matching grants of up to $25,000 that are intended to

serve as the final piece of funding to allow new or expanded busi-

nesses to open to the public. In 2011, the legislature created the

Tourism Infrastructure Grant Program, which provided

$750,000 for five projects selected for their demonstrated ability

to attract and retain visitors. That program’s future is currently

uncertain, however, as it requires the legislature to appropriate

additional funds this session.

North Dakota’s most well-known attraction, Theodore

Roosevelt National Park, welcomed nearly 650,000 visitors last

year, the most since 1982. Eileen Andes, park spokeswoman, says

another busy summer season is expected this year. The park is

working to establish an astronomy program and debuted sever-

al events last year, including full-moon hikes and astronomy

events. Those events will continue this season, along with an

inaugural astronomy festival to be held Sept. 27-29 in Medora.



“We’re working with Medora [Area Convention and

Visitors Bureau] and the city of Medora on that, as well as

the Theodore Roosevelt Nature and History Association,

which is our cooperating association,” Andes says.

Oil patch activity has played a role in increased visi-

tation to the park and will likely continue to impact visita-

tion numbers this year, assisted by improved accommoda-

tion availability at nearby hotels. “There are a lot of folks

moving into the area with their families and children, and

national parks are always great for family activities,” Andes

says. “Last year and some of the year before, it was hard for

visitors to find hotel rooms. Now there are more hotel

rooms in the area so things should loosen up a little on

that front.”

North Dakota’s state parks have also experienced

growth in visitation, racking up nearly 1.2 million visitors

last year. In early April, Gordon Weixel, public information

officer for the North Dakota Parks and Recreation

Department, said reservations were slightly ahead of last

year and the number of inquiries received at spring sports

shows indicates a strong season is ahead. “People are real-

ly excited this year,” he says. “It’s been a long winter and

people want to get outside and get camping.”

MinnesotaIncreased consumer confidence stemming from a

recovering economy, stable Canadian exchange rates and

improved community marketing initiatives are all factors

in a positive outlook for tourism in northwest Minnesota

this year, according to David Bergman, spokesman for

Explore Minnesota Tourism. “I think it’s going to look

pretty good,” he says.

A survey of Minnesota tourism businesses conduct-

ed by the tourism department in January further indicates

a positive outlook for the season ahead. Of the businesses

responding to the survey, 42 percent say they expect

spring/summer occupancy rates to be better than last year,

47 percent expect rates to remain the same and only 10

percent predict a decrease in rates compared to 2012.

Similarly, 47 percent of respondents expect revenues to

increase this spring/summer compared to last year, while

only 11 percent anticipate decreased revenues this year.

Canadian visitation and resort activity are the two

most prominent sources of tourism revenue for the north-

west region of Minnesota, according to Bergman, but the

region is also experiencing growth in athletics travel and

community summer events. Tourism is “a significant play-

er” in the region’s economy and is becoming more recog-

nized by residents as an economic driver, which is resulting

in improved community marketing efforts, he says. Explore

Minnesota Tourism offers a variety of programs to assist

businesses and communities in marketing their services and

events, including a partnership program which communi-

ties can access for up to $4,000 in matching grants to sup-

port marketing campaigns. For individual businesses,

Bergman recommends utilizing the department’s website

— www.exploreminnesota.com — as a marketing tool. The

site boasts 3.1 million users annually and allows businesses

to list their services for free, with the option to purchase

additional advertising.

Attendance at Minnesota’s many state parks has also

been on a steady upward trend over the past several years,

with the exception of 2011 when a state government shut-

down forced parks to close for three weeks of the summer.

Last year, nearly 1.6 million people visited the 14 state

parks located in the northwest region of Minnesota. Itasca

State Park, which encompasses 32,000 acres and has

entrances near Park Rapids, Bemidji and Bagley, is by far

the most visited state park of the northwest region, draw-

ing more than 500,000 visitors in 2012. The second most-

visited park of the region, Lake Carlos State Park, located a

few miles north of Alexandria, recorded approximately

162,000 visitors last year.

Amy Barrett, communications project supervisor for

the Minnesota Department of Natural Resources parks

and trails division, says the department is anticipating a

strong year for attendance at Minnesota state parks, which

will provide an economic boost to surrounding commu-

nities. According to the DNR, visitors to Minnesota state

parks return $26.23 to local economies each day. PB

Kris Bevill



http://www.exploreminnesota.com




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|AGRITOURISM|

Coteau des Prairies Lodge is perched on a ridge of hills at the northernmost point of the Coteau des Prairies in southeastern North Dakota.PHOTO: PHILLIP BREKER


|AGRITOURISM|

Getting Backto the FarmAgritourism offers opportunity to visit rural rootsBY KRIS BEVILL

As more young people move from farm com-

munities to population centers and small

family farms are sold to larger operators, the

opportunity for agritourism — a term broadly used

to describe any type of farm or ranch-related activity

— is growing. The North Dakota Tourism Division

began emphasizing agritourism’s niche market in the

state a few years ago after recognizing demand from

young families and curious urbanites seeking to

explore rural life.

Dean Ihla, tourism development manager, says the

segment has grown recently, but there continues to be a

need for ag-based tourist businesses in the state. “People

expect to have more places in North Dakota because of

our strong agricultural base,” he says. “That’s changing.

We are getting more operators all the time.”

One factor that has allowed North Dakota’s agri-

tourism sector to expand is a bill passed during the 2011

state legislative session that provides agritourism opera-

tors with liability protection. The bill establishes that

participants assume risk by taking part in agritourism

and, therefore, the operator is not liable for injuries

incurred on property. To be covered under the law, agri-

tourism operators must register with the tourism divi-

sion and provide a notice to participants that the oper-

ator is not liable for participant injury from inherent

risk. There is no fee to register with the tourism division

and registrations are effective for five years. In exchange,

the tourism division supplies operators with signage

relaying the state law. The division also provides mar-

keting support for operators. This month, it is unveiling

a redesigned website, www.ndtourism.com, complete

with a section devoted to agritourism, which Ihla says

will help connect interested parties with the state’s agri-

tourism providers.

Of the 81 identified existing or potential agri-

tourism businesses within the state, 25 operators are

currently registered with the division, Ihla says. Seven of

the registered operators are new businesses. It’s not clear

whether the liability law was the deciding factor in the

creation of all the new businesses, but Ihla says many

operators have said the law provides them a level of

comfort. “The other thing we hope happens is that as

time goes on, companies are more comfortable with

insuring these types of operations so that over time this

may open up the marketplace and lower the cost [of

insurance],” he says.

The tourism division maintains a presence in the

agritourism industry by regularly collaborating with

agritourism-related groups, including the North Dakota

Grape and Wine Association, Pride of Dakota and the

North Dakota Farmers Market and Growers

Association. The department participates in cross mar-

keting with the groups and actively recruits group

members for the state program. “We’re still a new seg-

ment of tourism so a lot of it right now is about devel-

opment and growth,” Ihla says.

Currently, agritourism businesses in North Dakota

are spread fairly evenly through the state, including

ranches in the west, vineyards in the east and variety of

other offerings scattered throughout. The tourism divi-

sion would like to expand the number of large-scale

grain farm tours because it is a unique aspect of the

state. However, because agriculture is experiencing a

period of increased profitability, interest from potential

operators has dropped compared to when commodity

prices were low. “We’re in a cycle where things are pret-

ty good and everybody’s kind of happy with the way

things are,” Ihla says. “We’re seeing more hobby farms

and crops such as fruit and vegetables that are getting


http://www.ndtourism.com


|AGRITOURISM|

involved in agritourism as opposed to large-scale

grain operations.”

The Breker family of Havana, N.D., is an exception

to the situation. The family has farmed in southeast

North Dakota for five generations and currently grows

corn, winter wheat, soybeans and specialty crops such as

radish for seed on 3,000 acres in addition to raising

about 100 head of Angus beef cattle. Last October, after

two years of planning and building, the family added

lodging and farm tours to its list of duties with the

opening of Coteau des Prairies Lodge LLC

(www.cdplodge.com).

“It’s been a long-time dream of our family to build

a lodge in this pasture that we own for grazing our cat-

tle,” says Phillip Breker, who serves as website and social

media administrator for the family venture. “Seldom do

folks get out this way because it’s off the beaten path, but

it’s such a beautiful part of the state.”

The lodge was built using Ponderosa pine from

western North Dakota and consists of nine bedrooms

and a three-room suite as well as an impressive great

room and kitchen designed to accommodate large

gatherings, a wrap-around porch and a look-out perch

for visitors to soak in the landscape. The entire project

was a labor of love, with family members including

Phillip’s parents, Joe and Patty, and sister, Olivia,

investing sweat equity into the building of the lodge

nearly every day for two years. The financial cost of the

project was more than $1 million, most of which was

funded through investments made by family and

friends, Breker says. A PACE (Partnership in Assisting

Community Expansion) loan from the Bank of North

Dakota, with participation by the Sargent County

Bank and the local Jobs Development Authority, cov-

ered the remaining portion of the costs. “That was

huge for us,” Breker says. “Having that low-interest

loan in these early years when there’s a lot of unknowns

about how much revenue will be generated to pay back

the loan … that’s huge.”

While the overall project cost was quite large,

Breker says the business plan was designed to minimize

risk for investors. “No single investor is counting on a

profit to make a living, but if it does take off it’s going to

be a lot of fun and a great adventure,” he says. “We have

no guarantee that this is going to work. We’re just work-

ing hard and planning for the best.”

The lodge has already hosted a number of gather-

ings since opening last fall and has several weddings

booked for the summer, according to Breker. The fami-

ly will gradually expand the business as dictated by

demand, including first-hand farm and ranch experi-

ences and tours, and horse-drawn buggy and sleigh

rides. They are also developing a unique dining experi-

ence which may feature dry-aged “story beef” from the

family’s herd.

Breker says the state’s liability protection was the

deciding factor in the family’s decision to move forward

with the agritourism side of the business. “If you want

guests to have an authentic experience, there’s potential-

ly a lot of liability in bringing people out on a working

farm,” he says. “I think [the legislation] was a great idea

and it definitely gave us a lot of confidence.”

The Brekers’ desire to share their scenic views and

rural North Dakota experience with people who other-

wise may never have the opportunity fits perfectly with

the tourism division’s desire to focus on agritourism

businesses that play up the state’s unique offerings. The

division awarded Coteau des Prairies Lodge with a

grant to assist in marketing efforts and has been active-

ly promoting the lodge and the geographic region of

the state in its publications this year. “One thing we like

most about the tourism department is how excited they

have been for us,” Breker says. “We feel like they will be

a great partner.”

Ihla says many agritourism providers start slow,

offering tours or services by appointment to test the

waters and determine whether demand will support a

full-fledged venture. The tourism division allows

providers to list their services on its website, including

contact information so that potential customers can

arrange appointments. The division is doing what it can

to encourage growth from both sides of agritourism —

operators and public participants — and Ihla suggests

that potential operators consider what they may have to

offer that can be developed into an agritourism destina-

tion. “Agritourism is kind of a broad category,” he says.

“It can be ranching, it can be a vineyard, it can be a bed

and breakfast in the middle of the country. It can be

whatever you want it to be.” PB

Kris Bevill



http://www.cdplodge.com



If you haven’t had a chance to meet in Minot, you really should. With state-of-the-art meeting facilities and the recent addition of over ten new hotels, Minot is the obvious place to plan your next convention or conference. We’re ready for you.

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whyflyminot


|TRANSPORTATION|

The Fargo Jet Center is one of several fixedbase operators in the area experiencingincreased business as a result of air traveldemands from commercial and private aircraftoperators. PHOTO: FARGO JET CENTER INC.

Commercial air travel continues to

increase in North Dakota, as

demonstrated by record-break-

ing enplanement numbers and newly

added flights at many of the state’s air-

ports. But the effects of increased com-

mercial air travel have also impacted the

area’s fixed base operators (FBOs),

boosting business and allowing for

expansions to further support the area’s

appetite for flight.

Darren Hall, vice president of mar-

keting at Fargo Jet Center Inc., says fuel

sales, which are the largest segment of

FJC’s business, were actually down slightly

last year compared to 2011, but charter

flight activity was up by 22 percent, indi-

cating that local demand for air services

continues to grow while businesses on the

U.S. coasts are continuing to recover from

the recession and are travelling less fre-

quently. Still, FJC served more than 3,500

customers in the past year.

Private aviation services, including

aircraft sales and management, have proven

to be a booming business for FJC recently.

The number of customers who base their

planes at FJC’s facility has increased by

more than 20 percent and aircraft sales are

also on the rise. FJC’s sales segment,

Exclusive Aviation, sold 32 planes last year,

ranging from small, single-engine aircraft

to corporate jets. “The people who operate

airplanes in Fargo are flying them more

often and some are routinely going out to

western North Dakota,” Hall says. “But

there’s also been an increase in people get-

ting into aviation because their business is

doing so well.”

FJC employs 14 pilots for its charter

business and has experienced a bump in

demand recently as a result of oil patch

activities in the western part of the state.

Hall attributes the increased demand to the

Up, up and awayFBO businesses grow asregion’s air travel demandscontinue to climbBY KRIS BEVILL


|TRANSPORTATION|

center’s charter fleet, which includes a Bombardier Learjet 60, a

Cessna Citation SII, and a variety of Beechcraft King Air models,

some of which are leased from jet center clients.

After eyeing the Williston, N.D., market for several years, FJC

recently decided to expand to the area and will open the Williston Jet

Center this summer, offering the same range of services to clients

there as it does in Fargo.

Hall is hesitant to predict the amount of business WJC will han-

dle in its first year, but says the corporate side of air travel in Williston

is comparable to Fargo and many of the private aircraft flying into

Williston are FJC customers, so the company hopes to earn their con-

tinued business at its new location.

FBOs in western North Dakota have also been experiencing

continuous growth as demands for fuel and services increase. Pietsch

Aircraft Restoration and Repair took over ownership of the Minot

Aero Center from the city of Minot about three and half years ago

and has been expanding the business ever since, according to line

manager Shelley Cole. “It’s been growing considerably and continu-

ously,” he says.

Increased traffic at Minot International Airport has been a

major contributor to the expansion of the Minot Aero Center as the

number of commercial flights at the airport has grown from just

three per day a few years ago to approximately 12 per day. Cole says

the aero center pumps about 10,000 gallons of jet fuel per day for

commercial airlines and general aviation customers and has added

staff every year for the past several years. It currently employs about

30 people, including fueling staff, customer service personnel and

maintenance crews.

Bismarck-based FBO Executive Air Taxi Corp. has experienced

a 30 percent increase in business just in the last year, much of it from

companies supporting oil activities in western North Dakota, says

Paul Vetter, chief operating officer. He says the majority of Executive

Air’s current flights cover the upper Midwest, but it occasionally

delivers customers as far south as Oklahoma, Texas and elsewhere.

Based on customer feedback and anticipated future business

demands, the company recently added two larger aircraft to its fleet, a

Beechcraft King Air 200 and a Beechcraft King Air C90, in order to

provide longer-distance flight capabilities for its clients. “We can fly

anywhere in North America with the new planes,” he says. “[They]

give us a lot more range.” PB

Kris Bevill






|SOUTH DAKOTA|

Eagle Creek SoftwareServices President KenBehrendt addresses atten-dees at a March 13 pressconference to announce apartnership to launch theInformation TechnologyConsultant Academy. Alsoshown: Tena Haraldson andJames Abbott of theUniversity of South Dakotaand South Dakota Gov.Dennis Daugaard. PHOTO:AARON PACKARD, UNIVER-SITY OF SOUTH DAKOTA

Eagle Creek Software Services is a firm believer in

the Dakotas, so much so that the company has

branded its service strategy the “Dakota Model”

to reflect its dedication to providing top-notch client

service from technology center locations in the area. The

Minneapolis-based onshore information technology

services provider delved into the Dakotas about eight

years ago when it opened its first project center in Valley

City, N.D. Two years later, the company opened a center in

Pierre, S.D., and it now employs about 170 workers

between the two locations, providing technical expertise in

CRM, information management and applications devel-

opment to Fortune 2000 clients throughout the world.

Ken Behrendt, company president, says it is the

states’ commitment to working with businesses like Eagle

Creek and the quality of the area’s workforce that make the

Dakota Model successful. “North and South Dakota can

compete against anybody in the world,” he says. “They

have great resources. We deliver quality and North and

South Dakota deliver it back.”

The strategy has been successful enough to warrant a

rather rapid expansion plan over the next few years, with

South Dakota being the chosen state to house up to 1,000

new employees at several new project centers, beginning in

Vermillion, S.D. The company recently announced a part-

nership with the state and the city of Vermillion to con-

struct a $10 million technology center there, which will

house 200 workers when fully staffed in 2015. But while

the quality of workers is apparent, South Dakota, like the

rest of the U.S., is short on available workers who possess

the technological skills needed by companies like Eagle

Creek. To address that issue, the company has formed a

partnership with the Board of Regents and the University

of South Dakota to launch the Information Technology

Consultant Academy, which will offer undergraduate and

master’s degree IT programs and scholarship opportuni-

ties geared toward training a local workforce that can fill

Eagle Creek’s ongoing demand for skilled workers.

Educating for expansionIT services provider teams with university system to train workers for new locations BY KRIS BEVILL


|SOUTH DAKOTA|

Eagle Creek, the state and the city of Vermillion will share the

costs of establishing the technology center. Behrendt says Eagle

Creek has already begun recruiting staff for the Vermillion center,

which will begin operating in a temporary facility later this year and

will ramp up to a staff of 200 by the second half of 2015.

“The challenges of today’s job market call for new skills and

approaches,” James Abbott, president of USD, said. “Our mission as

a university should be to prepare students to succeed in an increas-

ingly high-tech workforce. The Information Technology Consultant

Academy will put students on a career path for success.”

Behrendt says aligning with the university system offers sever-

al benefits to Eagle Creek, including recruitment assistance and

technology expansions to better serve its customers. “They can help

us through course development and curriculum and expand the

breadth and depth of our technology offerings,” he says.

The IT Consultant Academy will begin accepting students this

fall in two programs — an undergraduate certificate program and a

master’s degree program. Both programs provide scholarships for

participants and guaranteed job interviews at Eagle Creek. The under-

grad program also includes a three-month paid internship with the

company. Behrendt says he expects each program to produce 20 to 25

potential new employees each year when the academy is fully engaged,

and Eagle Creek hopes to hire as many of those graduates as possible.

“We’re doing this because we want to fill the pipeline of resources for

the company,” he says. “We want to recruit as many as possible out of

[the university system]. Effectively, we’re investing money in there and

so we want that return.”

Graduates of the IT Consultant Academy will not be required to

work at Eagle Creek, however, and the broad-based technology skills

gained through the program would allow them to work at any main-

stream IT company, according to Behrendt. “Anybody who comes

into the program and graduates can work literally anywhere in the

U.S.,” he says. “They are in-demand, high-demand technologies.”

Meanwhile, Eagle Creek is continuing to work with the state

and its university system to identify locations to accommodate the

company’s further expansion. Behrendt says the company’s first

preference is to align with communities that have universities, which

makes Aberdeen and Rapid City attractive possibilities. However,

the company must also consider the limitations of communities and

the economies of scale when working to meet a goal of 1,000 new

employees. “You can’t build 10, 100-person project centers,”

Behrendt says. “You’d really want to build a larger one, one that can

incorporate 300 to 400 people. In South Dakota, that means we

would like to see a community like Sioux Falls or Rapid City partic-

ipate in this.”

The company expects to select sites for additional locations

within the next two to three years, depending on demand. PB

Kris Bevill






|WESTERN NORTH DAKOTA|

The Williston AreaDevelopment Foundation ispromoting the positiveaspects of life in the oilpatch town through a mar-keting campaign called“Build a Better Tomorrow.”PHOTO: CHUCK COUTUREPHOTOGRAPHY

It’s not easy living in North Dakota’s oil patch.

While the boom offers benefits for many, the day-

to-day stress of life in the fastest growing region

of the U.S. is taking its toll on residents, some of

whom are choosing to pack up and leave rather than

wait it out. Recognizing the frustration of local resi-

dents, the Williston Area Development Foundation,

which includes representatives from the city commis-

sion, the economic development office, the Williston

Area Chamber of Commerce, local businesses and

higher education institutions, recently launched a

marketing campaign developed by Odney Advertising

dubbed “Build a Better Tomorrow” to promote the

positive changes taking place and to assure residents

that the situation will continue to improve.

“What we’re trying to do is provide some hope to

our existing residents that it’s going to be a better

tomorrow,” says Shawn Wenko, assistant director of

Williston Economic Development. “We’re not where

we need to be yet, but we’re getting there.”

A major focus of the campaign will be promoting

the city’s quality of life, which Wenko says includes

items that are important to families — top-notch med-

ical care, good schools and parks and recreation. He

touts the rapidly expanding Mercy Medical Center and

construction of a $72 million rec center, expected to be

complete next year, as evidence that the community is

taking steps in the right direction. “There are some

challenges, but it’s getting better every day,” he says.

Diversification of the workforce is another area of

focus and is necessary to allow the city’s restaurant and

retail sectors to continue to expand. “As we catch up

with housing I think you’re going to see a more diverse

labor pool come into the area and that’s going to help a

lot with area businesses,” Wenko says.

Although it’s located on the fringe of the oil patch,

Minot, N.D., has also experienced significant growth in

the past few years and is battling similar issues related to

public perception and housing and workforce short-

ages. The Minot Area Development Corp. has been

addressing those issues for several years already, says

MADC President Jerry Chavez, but recently formally

adopted a series of recommendations to continue that

effort. The recommendations stemmed from a plan-

ning session facilitated by Odney Advertising late last

year during which nearly 50 community leaders joined

Promoting the positivesCampaigns focus on quality of life in oil patchBY KRIS BEVILL


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|WESTERN NORTH DAKOTA|to discuss the future of Minot and MADC’s role in shaping that future.

The group largely agreed that continued diversification of Minot’s econ-

omy should remain a key focus and can be accomplished through qual-

ity of life improvements.

“We as a community and as an organization recognize that our

ability to bring new businesses to town is hinged very highly on advanc-

ing our quality of life,” Chavez says.

Like other western North Dakota towns, Minot’s quality of life

improvements are part of a larger effort to attract and retain young fam-

ilies. One of the most immediate and pressing hurdles is the lack of

affordable housing.

“What we want to do is create a home and a price point whereby

the average worker can purchase,” Chavez says. “Today we don’t have that

and we’re struggling to get there, but we have some very strong initiatives

that we’ll be unveiling this spring that will be able to address those issues.”

A report compiled by Odney based on discussion at the Minot

planning session states that Minot has experienced 20 years of growth in

the past five years. “As a city that may already be exceeding 50,000 peo-

ple, Minot can’t afford to just let development happen,” the report stat-

ed. “Again, it’s about working to get the city you want instead of letting

development determine the kind of city Minot becomes.” PB

Kris Bevill



http://www.gfkairport.com



grandinternational.com


Paragon Water Solutions provides water treatment services for oil drilling companies in western North Dakota. PHOTO: AIMEE ERDMAN

Problem solvers Couple forms water treatment company to serve oil industryBY AIMEE ERDMAN

Everyone knows oil and water don’t mix. But in the oil patch, you can’t get

one without the other. Water is a huge part of the oil drilling process —

and a huge problem. That’s where companies like Paragon Water

Solutions come in.

Two years ago Dale Bercier was working for an oil company and noticed the large

amounts of water being hauled off rig sites. “They weren’t solving the problem. They

were just moving it somewhere else,” he says. “I knew there had to be a better way to

handle all that water.”

So Dale and his wife Angela launched Paragon Water Solutions to address the

problem. Dale researched different processing methods and equipment and settled on

the ALAR Auto-Vac filtration drum, which can be used to process drilling water to

produce clean, environmentally safe water and a grainy solid that is safe for landfill


|ENERGY|

disposal. The processed water can be re-used in the drilling process, saving the

drilling company money on water and transportation costs.

“ALAR is in all kinds of industries,” Dale says. “But the unit is always inside, in

a factory. It wasn’t designed to be portable. So that was our next problem to solve.”

The solution meant fabricating a trailer that would accommodate the size of

the ALAR unit. It also meant they had to get special permits to haul the oversized

trailer down the road, which were initially denied.

Financing was also a struggle. Because they didn’t have a master signed agree-

ment (MSA) with even one company, no bank would give the company a loan, so

the couple used whatever resources they had at their disposal to bring what they

believed to be an important service to the oil patch. “We took out a second mortgage

on our house,” Angela says. “I’ve always been an environmentalist, and I knew there

had to be a better way than dumping this stuff back in the ground.”

After working through many obstacles, the couple began to score clients.

“Continental Resources was our first client,” Angela says. “It was our pilot project.

After that it was a lot of word of mouth.”

According to Angela, a typical well requires 1,500 barrels of water.

Paragon's process can be used to reuse most, if not all, of that water, saving the

driller money on water disposal and replacement costs. The company also touts

a cost savings compared to other disposal methods, charging $20 per barrel to

process compared to an estimated $45 to $65 per barrel to truck and dispose of

contaminated water.

The pair’s persistence in addressing some of the oil patch’s water issues

began to pay off in a big way rather quickly. “Our first year we had $4 million in

revenue,” Angela says. “And then it was the time of year companies were locking

up their MSAs, so we were able to get financing for another unit.”

Now the company has 10 MSAs and is working on getting a third unit.

It has also partnered with the ALAR company to be the sole distributor of this

system in the Rocky Mountain region and employs up to 50 people.

“Our next challenge is to work with frack water,” Angela says. “And we’ve start-

ed working with processing diesel mud using a vertical centrifuge. Our process

doesn’t require any fly ash and it saves the company an average of $80,000 per well.”

The couple’s entrepreneurial drive and ingenuity has served them well in the

early years of the company, and they’re not done yet. “I know there is a use for the

byproduct from the cleaning process,” she says. “We just have to figure it out.” PB

Aimee ErdmanContributing writer

[email protected]

"I knew there had tobe a better way tohandle all that water."

- Dale Bercier, co-owner, Paragon Water Solutions



kljeng.com


|ENERGY|

The amount of natural gas being flared at oil wells in

western North Dakota continues to hover at around

30 percent, but recent advances made by the industry

to increase gathering and processing capacity may help to

reduce flaring.

On April 9, ONEOK Partners LP, the largest independent

operator of natural gas gathering and processing facilities in the

Williston Basin, announced that its newest natural gas process-

ing facility in the region has begun operating. The 100 million

cubic feet per day Stateline II plant, located in western Williams

County, is the third new gas processing facility completed by the

company since 2011. The plant cost between $135 million and

$150 to complete, according to the company, and brings the

company’s total processing capacity in the region to 390 million

cubic feet per day, up from 90 million cubic feet per day just two

years ago.

Additionally, ONEOK Partners has completed a 600-mile

pipeline capable of transporting 60,000 barrels per day of

unfractionated natural gas liquids (NGLs) from processing

plants in the Williston Basin to an interconnection with a

pipeline in northern Colorado, where the product can then be

delivered to ONEOK Partner’s fractionation and storage facili-

ties in Kansas.

According to ONEOK Partners, the pipeline cost between

$450 million and $550 million. The company is also investing an

additional $100 million to install pump stations along the

pipeline which will increase its capacity to 135,000 barrels per

day. The expansion is expected to be complete next year.

“The Bakken NGL Pipeline is the first pipeline to transport

natural gas liquids from the Williston Basin to NGL fractiona-

tion and storage infrastructure in the Mid-Continent and Texas

Gulf Coast,” Terry Spencer, president of ONEOK Partners, said

in a statement. “This project and our continued investments in

the Williston Basin reflect our commitment to provide produc-

ers with the essential NGL infrastructure needed as they contin-

ue to develop the Bakken Shale and Three Forks formation.”

A summary of oil patch activity released April 16 by Lynn

Helms, director of the North Dakota Industrial Commission

Department of Mineral Resources, shows that natural gas pro-

duction at the state’s wells increased by about 7 percent in

February, compared to an increase in oil production of about

5.5 percent, which is in line with expectations that gas to oil

ratios will increase at Bakken wells as they age. Helms noted that

gathering and processing capacity did not keep up with produc-

tion during that time, so the percentage of flared gas rose to 30.4

percent, compared to 29 percent the previous month. PB

Kris BevillEditor, Prairie Business


Building out gas capacityONEOK Partners completes additional plant, pipeline for natural gas liquidsBY KRIS BEVILL



|BUSINESS TO BUSINESS|PRAIRIE BUSINESS

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John [email protected]

Brad [email protected]

Shelly [email protected]

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48 Prairie Business Magazine May 2013 48www.prairiebizmag.com

Employment UNEMPLOYMENT RATE EMPLOYMENTJan-12 Jan-11 Jan-12 Jan-11

North Dakota 3.30% 3.10% 383,748 376,438Bismarck MSA 4.1 3.8 57,434 59,863Fargo MSA 4.7 4.1 113,263 115,951Grand Forks MSA 5.3 5.1 50,959 50,921Dickinson MiSA 2.1 2.1 20,626 17,314Jamestown MiSA 4.9 4.2 9,790 10,161Minot MiSA 4.3 3.7 34,455 32,632Wahpeton MiSA 5.5 5.2 10,960 11,056Williston MiSA 1 0.8 38,803 29,878South Dakota 4.30% 4.40% 427,880 426,209Rapid City MSA 5.2 4.7 61,144 62,727Sioux Falls MSA 4.5 4.5 125,417 124,372Aberdeen MiSA 4.1 3.8 21,871 21,962Brookings MiSA 3.9 3.9 17,668 18,076Huron MiSA 4.7 3.7 9,420 9,437Mitchell MiSA 4.3 3.9 12,520 12,450Pierre MiSA 3.5 3.3 11,629 11,799Spearfish MiSA 5.1 4.9 11,785 12,463Vermillion MiSA 4.2 3.4 7,367 7,442Watertown MiSA 5 4.6 18,039 17,978Yankton MiSA 4.5 4 11,107 11,073Minnesota 5.50% 5.70% 2,819,298 2,797,420Minneapolis-St. Paul MSA 5.1 5.5 1,762,526 1,751,893Alexandria MiSA 6.2 6.1 19,411 19,391Bemidji MiSA 9 8.2 20,170 20,942Brainerd MiSA 10.8 10 39,976 42,124Fairmont MiSA 6.6 6.1 10,247 10,647Fergus Falls MiSA 8.2 7.3 27,735 28,394Hutchinson MiSA 8.6 8 17,568 18,714Marshall MiSA 6.1 5.3 13,935 14,393Red Wing MiSA 6.7 6.3 24,196 24,666Willmar MiSA 6.9 6.4 22,344 22,630Winona MiSA 5.9 5.3 27,659 28,116Worthington MiSA 5.3 4.9 10,881 11,131

Exchange

Interest Rates

Jan-13Jan-12

185200

87.8988.09

Average Rig Count

Jan-13Jan-12

8,3226,624

738,022546,218

218170

ProducingWells

AverageDaily

ProductionTotal

Permits

Oil Production

|BY THE NUMBERS| | SPONSORED BY |

Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014

1.6

1.5

1.4

1.3

1.2

1.1

1

0.9

Cana

dian

Dol

lars

to O

ne U

.S. D

olla

r

Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014

1.6

1.5

1.4

1.3

1.2

1.1

1

0.9

Cana

dian

Dol

lars

to O

ne U

.S. D

olla

r

2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2

300,000

250,000

200,000

150,000

100,000

50,000

0

Num

ber o

f em

ploy

ed in

divi

uals

MinnesotaNorth DakotaSouth Dakota

2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2

12

10

8

6

4

2

0

Perc

ent

MN (2011) ND(2010) SD(2010)

18

16

14

12

10

8

6

4

2

0

Tota

l eco

nom

ic im

pact

, bill

ions

$

Total Tourism Employment

Tourism Share of Total Employment(M.N., N.D., S.D.)

Tourism Economic Impact

Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at [email protected].



midcontinent.biz/npnet

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