Tag: North Dakota

Exec: Davis Refinery Not Affected by Dakota Prairie Refinery Sale

BELFIELD — The company trying to build an oil refinery just three miles from Theodore Roosevelt National Park in Billings County isn’t slowing down its efforts, even after the Dakota Prairie Refinery sold at a loss earlier this week.

Thomas Johnson, chief operating officer of California-based Meridian Energy Group, said Tuesday’s sale of the Dickinson diesel refinery doesn’t affect his company’s goal of building the Davis Refinery, which would process 55,000 barrels of Bakken crude a day.

“We did economic modeling, what our costs are going to be and concluded that we’re going to make some profits there in the Bakken and the Belfield area,” Johnson said.

Tesoro bought the Dakota Prairie Refinery from MDU Resources Group and Calumet Specialty Products, which broke ground on the refinery in 2013 and opened it in May 2015.

Johnson pointed to the Davis Refinery’s efforts to build a refinery that’ll produce gasoline, jet fuel and ultra-low sulfur diesel fuel as the difference between its plans and the Dakota Prairie Refinery, which processed 20,000 barrels of oil into around 8,000 barrels of diesel fuel a day, along with a set of byproducts.

MDU Resources spent $430 million on the refinery and reported that it lost $7.2 million in its first quarter of operations. The refinery’s construction was plagued by cost overruns and construction delays.

Johnson said he was involved in the building of PetroMax Refining, a 25,000-barrel-a-day refinery in Houston that opened last year, and said Meridian is using a similar business model with the Davis Refinery.

“We were successful last year, so we fully anticipate being successful this time,” Johnson said. “The key is not to get into a situation like Dakota Prairie. It’s unfortunate what happened, but it is a good lesson to learn.”

In an effort to rally community support for the Davis Refinery, Meridian is hosting a public gathering at 5 p.m. Tuesday atop Buck Hill, the highest point in Theodore Roosevelt National Park’s South Unit.

Opponents of the refinery have said it will be clearly visible from Buck Hill, and have used that as ammunition to stop it from being built.

“Basically, we want to give everybody kind of an opportunity to see that the view from Buck Hill towards the refinery,” said Adam Williams, Meridian’s director of corporate communications. “We’re going to have some surveyors out and we’ll be floating several large weather balloons at the exact height as the top of the crude tower from grade. We want to do all we can to give people an opportunity to see what the effects will be, or if there’s any visual line of sight from Buck Hill. My guess is it won’t be too visible from the naked eye.”

The Billings County Commission is scheduled to discuss the Davis Refinery for its third straight monthly meeting at 9 a.m. Wednesday. Williams said Meridian CEO Bill Prentice plans to attend the meeting, along with several other of the company’s key players.

Referendum for New Richardton-Taylor School Passes

RICHARDTON — The Richardton-Taylor school district is getting a new high school.

Residents of Richardton and Taylor voted on Tuesday night to approve a bond referendum during a special election, though the results were clearly split between the two towns.

Sixty-five percent voted in favor of the $2 million bond referendum for the $12 million project. Curiously, nineteen less voters approved of raising the district’s debt limit by 5 percent to help finance the project with a $10 million loan from the Bank of North Dakota.

“We’ve been working on this thing for two-and-a-half, three years,” Richardton-Taylor Superintendent Brent Bautz said late Tuesday night. “We’ve put a lot of hard work into it. It’s good to finally realize it’s coming to fruition.”

The bond referendum needed a 60 percent “yes” vote to pass. It was decided by just 28 votes.

Vote tallies showed Richardton voters overwhelmingly supported the project while Taylor residents opposed it.

Seventy-three percent of Richardton residents voted in favor of both the referendum and raising the debt limit. Only 43 percent of Taylor residents voted for the referendum and 40 percent voting to raise the debt limit.

Bautz said the district needed to raise the debt limit because the North Dakota Century Code would have only allowed the district to borrow 5 percent of its assessed value, which wouldn’t have been enough for the project. The approve allows the district to borrow 10 percent of its assessed value.

Bautz said the district would like to begin construction on the project next spring with a scheduled completion by summer 2018.

Richardton-Taylor’s administration and school board approached residents about a remodel earlier this year because of decay in the 55-year-old facility and as a long-term cost-cutting move.

The current high school building in Richardton holds grades 7-12. The elementary school in Taylor has grades 2-6. Pre-kindergarten through first-grade students are in the St. Mary’s Social Center Building in Richardton, which costs roughly $72,000 annually in lease payments and additional staff.

With the referendum passed, pre-K through first grade will move to Taylor and grades 5-12 will be placed in Richardton.

Mott-Regent Passes $8.7 Million School Bond Issue by Thinnest of Margins

MOTT — Mott-Regent is getting a new elementary school and making major improvements to its high school.

The district’s school board made that official Monday after a canvassing meeting found that 61 percent of the district’s residents voted in favor of the $8.7 million bond referendum. The project needed a 60 percent “yes” vote to pass.

Viola LaFontaine, the district’s new superintendent who is just settling into her role and doesn’t start full time until July, said she has heard the mixed opinions about the bond passing.

“When you get a vote this close, you know there’s opinions out there,” she said. “I’m hearing different things.”

The bond calls for a 32.01 mill levy increase, or about a $143 increase on $100,000 in residential property. Cropland will see an average tax increase of 93 cents an acre.

A total of 639 district residents in Hettinger, Adams and Stark counties voted on the bond referendum, with only 390 voting yes. It was such a thin margin, the school board waited to receive additional mail-in ballots at Monday’s canvassing meeting to officially announce the results. They received just one mail-in ballot.

Mott-Regent has 240 students in its system.

With the funding, the district will construct a new elementary school, remodel and renovate the high school building, and demolish the old elementary school.

Work could begin immediately, LaFontaine said. Though she and school board president Kevin Roth said the school is likely going to ensure all the legal aspects of the project are shored up.

“We’re not going to rush into anything,” Roth said. “We’re going to do our due diligence and do everything properly. Hopefully everything will come in under bid.”

Consolidated Construction was hired as the contractor at-risk for the project. LaFontaine said the company wants to start soil borings and sight surveys soon.

“Some of those things, I think we can do pretty quickly,” she said.

The school will officially approach the Bank of North Dakota this week about a 2 percent, 20-year loan.

“The main thing is we just move forward from here,” she said. “I’m a very open and willing to listen to people, and am looking to make this a positive move for the Mott-Regent School District. … This is an opportunity for the school to celebrate education.”

The district also canvassed the election of incumbent school board members Garret Swindler and Lucas Greff, as well as newly elected Jeremy Ottmar. All three ran unopposed.

Simons, Schatz Win GOP Nomination in District 36 House

The two Republican Party-endorsed candidates for District 36 House of Representatives are moving on to the general election.

Rep. Mike Schatz and Luke Simons gained the party’s nominations on Tuesday, each garnering more than 1,800 votes in a three-person race.

Rep. Alan Fehr, who did not receive the party’s endorsement during the district convention, will not return the Legislature next session after finishing third in the voting with just over 1,200 votes.

Simons, a rancher from rural Dickinson and a self-described Constitutionalist, received the party’s nomination earlier this year over Fehr.

He said he has spoken with several people on the campaign trail who agree with allegiance to the U.S. Constitution and conservative Christian philosophies.

“I think I’m explaining some principles we used to hold to be self-evident to a lot of people,” Simons said.

Schatz, a retired teacher and football coach from New England, said it was the most interesting race and first contested primary he’s ever been a part of.

“There was a lot of time and effort put in by everybody,” Schatz said. “I want to thank Alan and Luke for being such gentlemen during the campaign. It was a well-run primary.”

Fehr, a Dickinson psychologist and retired U.S. Navy officer, said he was grateful for the opportunity to serve in the Legislature over the past four years, and for the people who supported him.

“It’s one of those things that a lot of people don’t have the opportunity for, and I’m grateful for the opportunity,” he said. “I learned a lot doing that and it was a great experience.”

Sen. Kelly Armstrong, the state Republican Party chairman, ran unopposed in the primary.

On the Democrat-NPL side, Senate candidate John D.W. Fielding received just 224 votes while running unopposed. House candidates Dean Meyer and Linda Kittilson received 208 and 207 votes, respectively, to move on to the general election.

Burglar who shot himself in head after standoff gets probation

The Reeder man who shot himself in the head after a standoff with Dickinson police last December was sentenced to three years of supervised probation Monday during an arraignment at the Stark County Courthouse.

Jeremy Mellmer, 32, had a five-year prison sentenced suspended by Southwest District Court Judge William Herauf after the judge agreed to the Stark County state attorney’s deal to keep the severely injured Mellmer out of the corrections system.

“He shot himself in the head and left himself in considerable poor health, which will greatly impact his life going forward as well as the reality of any extended incarceration,” said James Hope, Stark County assistant state’s attorney.

Mellmer pled guilty Monday to theft of property and burglary charges, both Class C felonies, after breaking into the home of Dickinson resident Bernard Deichert and stealing approximately $3,000 worth of firearms and other items on Nov. 24.

Mellmer, who wore a large neck brace and an eyepatch over his right eye, spoke in a gravely voice and mustered only one-word answers when responding to the judge’s questions.

Herauf said he was concerned about the proposed sentence, but agreed to keep Mellmer’s health burden out of the state’s hands.

“I’m going to go along with what’s been worked out, otherwise the state is faced with the problems that your health creates,” he said, before speaking directly to Mellmer about his future. “We’re not having this conduct again. None of it whatsoever.”

Joseph Mrstik, Mellmer’s court-appointed attorney, spoke on Mellmer’s behalf before Herauf agreed to the sentence.

“Through his own actions, Mr. Mellmer has significantly limited the ability to live his life and, frankly, if it weren’t for his father, he’d probably be out on the street and not doing very well,” Mrstik said. “My point is, he’s basically just taking it one day at a time, trying to make up for lost time and appreciating the fact that he’s still here.”

Mellmer escaped police during a traffic stop on Nov. 30. Police searched for him until Dec. 2, when they surrounded a house on the 900 block of Ninth Street East. The standoff ended when Mellmer shot himself. He has not been charged for that incident.

However, Mellmer is not done with court appearances.

He will have pretrial conference July 5 on charges of possession of marijuana with intent to deliver, a Class B felony, and possession of methamphetamine paraphernalia and carrying concealed firearm or weapon, both Class A misdemeanors. A July 20 trial is scheduled.

Hope said the state has few concerns about Mellmer committing further crimes following his final sentencing, solely because of his health.

“We’ll monitor his health condition and see how his recovery goes, and whether the health condition he has now is permanent,” Hope said in an interview.