PBApril 2013

www.prairiebizmag.com

April 2013

Get in LineEngineering firms compete

for projects, employees

in western ND

pg. 24

ALSOThe Sustainable Factor

How building green benefits the bottom line

pg. 28

Skill MastersCustomized training enhances

available workforce skillspg. 34

North Dakota. Doing Business Better.With start-up support from the North Dakota Department of Commerce,Lift’n Buddy is producing innovative material transport solutions,helping companies worldwide improve worker safety and efficiency.Learn how North Dakota is doing business better at www.NDBusiness.com

4 Prairie Business Magazine April 2013

|INSIDE|April 2013 VOL 13 ISSUE 4

FEATURES DEPARTMENTS6 Editor’s Note

BY KRIS BEVILL

Steps toward a more sustainable future

8 Business Advice BY MATTHEW D. MOHR

Long-term investments

10 FinanceBY ELIZABETH ECHOLS

SBA wants to give small businesses the world

12 Research & Technology BY BRUCE RAFERT

Proof in numbers

14 Economic Development BY ALAN ANDERSON

Growing entrepreneurshipin North Dakota

16 Prairie News

20 Prairie People

22 Business DevelopmentRed River Valley unites for continued prosperity

34 Higher EducationThe best of what’s around

36 South DakotaSuccess on display

38 Western North DakotaThe next Williston

40 Energy

44 By the Numbers

46 Business to Business

Next MonthMay's issue of Prairie Businessmagazine will cover the area's agritourism industry, the availability of ruraldevelopment funds in Minnesota and the expansion of charter flight services in the region.

On the CoverA KLJ employee surveys the installation of a pipeline in western North Dakota.PHOTO: KLJ

24 ENGINEERINGCompete, Complete, Recruit, RepeatEngineering firms face stiff competition for projects, employees in western ND

SUSTAINABILITYThe Benefits of Being GreenSustainable building projects lessen environmental impact, reduce long-term operating costs

28

Scan this with your smartphone'sQR Reader to visit our website.

Follow us on Twitterhttps://twitter.com/PrairieBiz

Check us out on Facebookhttps://www.facebook.com/PrairieBusiness

The Children's Museum of South Dakota recently received nationalrecognition in honor of its focus on sustainable design. PHOTO: CHAD COPPESS, SOUTH DAKOTA DEPARTMENT OF TOURISM

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|EDITOR’S NOTE|

Steps toward a moresustainable future

If the upper Midwest had a collective mantra, it would probably be simply: We need more. We need more

workers for the growing number of businesses, more buildings to house those businesses, more homes

to house the workers and more infrastructure to make it all work together.

This month, I talked to several firms tasked with getting the “more” going. Engineering firms are working

around the clock in many cases to try to keep up with the region’s growth, particularly in western North Dakota.

But as firms strive to help their clients deal with unprecedented growth, they, too, are experiencing growing pains.

This issue’s cover story, “Compete, Complete, Recruit, Repeat,” (page 24) explores how engineering firms are cop-

ing with the increasingly competitive market for projects and employees.

The incredible growth in our region presents a great opportunity for developers to embrace sustainable

design when planning new projects. Green building offers the potential for lower operating costs and increased

marketability, as we report in “The Benefits of Going Green,” (page 28) which can offset the additional up-front

financial and time commitments. Certified sustainable projects are not as prevalent in the Midwest as they are in

other areas of the country, likely because land is widely available and energy costs are relatively cheap here com-

pared to more populated parts of the country. However, sustainability specialists say they are seeing increased

interest from clients in the area, and as the costs of environmentally friendly building materials continues to go

down and energy prices continue to increase, they expect the focus on sustainability will continue to sharpen in

years to come.

KRIS [email protected]

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An SBA Award Winning Publication

MIKE JACOBS, PublisherRONA JOHNSON, Executive EditorKRIS BEVILL, EditorTINA FETSCH, Production ManagerBETH BOHLMAN, Circulation ManagerKRIS WOLFF, Layout Design, Ad Design

Sales Director:JOHN FETSCH701.212.1026 [email protected]

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

SHELLY LARSON - eastern ND/western MN701.866.3628 [email protected]

Editor:KRIS BEVILL701.306.8561 [email protected]

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

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

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

Address corrections Prairie BusinessmagazinePO Box 6008Grand Forks, ND 58206-6008Beth Bohlman: [email protected]

Online www.prairiebizmag.com


|BUSINESS ADVICE|

Long-term investmentsBY MATTHEW D. MOHR

Business owners often face the difficult task of

deciding to make large, long-term investments

which may dramatically affect the cash flow and

profitability of the enterprise, such as building a facility.

It is popular to condemn Wall Street for forcing pub-

licly traded companies to be short-term profit orientated.

Although public companies’ quarterly earnings are under

close scrutiny, decisions do have to be made which impact

the enterprise for many years.

Most business leaders hope to face the challenges asso-

ciated with making large-scale decisions such as a new facil-

ity. Long-term commitments to growth and success can be

based on sophisticated measuring techniques, or on basic

business knowledge and foresight. Either approach may

succeed or fail.

Air Products and Chemicals, a $10 billion public com-

pany traded on the national stock exchange (symbol APD),

has a very sophisticated finance department which uses

financial decision making based on long-term returns, not

just the quarterly earnings impact. Air Products undertakes

many capital intensive projects for its customers, and each

receives a level of financial analysis seen in few companies.

Air Products has been extremely successful.

Titan Machinery, a publicly traded (symbol TITN)

local powerhouse, is operated with a philosophy based on its

modest rural beginnings. Titan recently built and is occupy-

ing a beautiful building in West Fargo. The building is defi-

nitely geared for the long-term, one which management is

dedicated to preserving and enhancing. Titan has many tal-

ented employees and its decision to build in West Fargo cer-

tainly was subjected to strict financial scrutiny along with a

deep understanding of its future needs and desires.

When making long-term investment decisions it is

best to review the ideas multiple ways. If financing is need-

ed, work with a good bank. Utilize your accounting profes-

sionals and use your own knowledge to evaluate the poten-

tial rewards and the risks involved. PB

Matthew D. MohrCEO, Dacotah Paper Co.

[email protected]


|FINANCE|

SBA wants to give smallbusinesses the world BY ELIZABETH ECHOLS

SBA has made it a priority to help small business exporters by providing a number of loan programs specif-

ically designed to help develop or expand export activities. If you own or wish to start a small export business, the

following SBA loans may be available to you:

• The Export Express Loan Program offers streamlined financing up to $500,000. It is the simplest export

loan product offered by the SBA. Any business in operation at least one year that can demonstrate that the loan

proceeds will support its export activity is eligible.

• The Export Working Capital Program offers financing up to $5 million as a credit enhancement. This pro-

gram is delivered through SBA Senior International Credit Officers located in U.S. Export Assistance Centers.

• International Trade Loan Program offers loan financing for fixed assets and working capital to businesses

that plan to start or continue exporting, or that have been adversely affected by competition from imports.

If you are a small business looking to export, U.S. Export Assistance Centers are an excellent resource. Their

mission is to provide financial and technical assistance to help small businesses compete in today's global market-

place. Carlos Sosa is the regional manager of the export solutions group at the SBA’s office of international trade

in Minneapolis and oversees Minnesota and the Dakotas. Reach him at (612) 348-1642 or [email protected].

Each state also has ITA trade representatives. In Minnesota, contact Ryan Kanne at ryan.kanne@tradegov. In

North Dakota, contact Heather Ranck at [email protected]. In South Dakota, contact Cinnamon King at

[email protected]. PBELIZABETH ECHOLS

Regional administrator, U.S. Small Business [email protected]

Twitter: @rockymtn

0

5

10

15

20

25

0

20

40

60

80

100

0

5

10

15

20

25

30

35

40

0

5

10

15

20

TOTAL 2012 EXPORTS % OF EXPORTERS WHO ARE SMALL BUSINESSES

TOTAL SMALL BUSINESS SHARE OF EXPORT$

% OF MANUFACTURING JOBS DEPENDING ON EXPORTING

MINNESOTANORTH DAKOTASOUTH DAKOTA

$20.6 billion

$4.3 billion$1.6 billion

89% 86% 83%

23%

36%

18%

19.2%

14.5% 14.7%COMPUTER/ ELECTRONIC SUPPLIES

OIL AND GAS

FOOD AND KINDRED PRODUCTS

TOP MERCHANDISE EXPORT CATAGORY

In today's global economy, selling goods around the world can bring large rewards. It just makes good

business sense to expand your prospective customer base to the more than 95 percent of the world’s pop-

ulation outside our country whose demand for American goods is growing every day. “Made in the USA”

is associated with quality, including in large markets like China.

Small businesses now constitute 34 percent of total export dollars, and comprise approximately 98 percent

of all exporters. Since fiscal year (FY) 2009, the U.S. Small Business Administration has guaranteed 6,400 loans to

small business exporters for over $3.3 billion and supported more than $6.3 billion in exports. In 2012, the SBA

provided $37.5 million in loans for exporters in Minnesota and the Dakotas. For the first five months of FY 2013,

the SBA provided another $18.8 million in support for exporters in the three-state area.

The SBA and other federal partners are all working toward the Obama administration’s goal of doubling

U.S. exports by 2014. To help reach that goal, the president recently signed trade agreements with Colombia,

South Korea and Panama to expand export markets for American companies. Additionally, President Obama

announced during his 2013 State of the Union address that the U.S. will launch talks on a comprehensive

Transatlantic Trade and Investment Partnership with the European Union.

According to the U.S. International Trade Administration, the following export activity occurred in the

northern plains region for 2012:


|RESEARCH & TECHNOLOGY|

Proof in numbers BY BRUCE RAFERT

Research and technology play vital roles in many

enterprises and significantly impact the

economies of the communities within which

they are located. North Dakota State University serves

as an example of this. A study by Economic Modeling

Specialists International of Moscow, Idaho, shows the

net added income generated by NDSU operations

pumps approximately $201.2 million into the region’s

economy each year. Approximately $74.8 million of

that economic impact is due to NDSU’s research

activities alone.

Bringing research discoveries out of the lab and into

the marketplace is another way to measure results. NDSU

patents inventions from wide-ranging research and licens-

es them to companies to develop the technology. One

measure of innovative capability is the total amount of

license revenue received by the university. From fiscal year

(FY) 2006-’07 to FY 2010-’11, NDSU received 256 inven-

tion disclosures, filed 142 new U.S. patent applications and

produced 486 licenses. By FY 2012, NDSU’s licensing rev-

enues topped $2 million, growing more than 77 percent

since FY 2006. Six start-up companies have been created in

industries such as electronics, computer systems, coatings

and biomedical technology. Direct and indirect economic

impact of start-up companies stemming from NDSU-

related research totals $3 million.

Spending generated by nonlocal students and visi-

tors, as well as a productivity effect from NDSU students

and graduates employed in our service area, yields

$884.6 million in annual added income generated from

the impact of NDSU and its students. This value is

approximately equal to 20,170 average-wage jobs in the

service area, which includes North Dakota and 18 coun-

ties in Minnesota.

More importantly, this economic impact provides

measurable benefits to students and companies in the

region. For every dollar students invest in NDSU, they

receive a cumulative $5.23 in higher future income (dis-

counted) over the course of their working careers.

EMSI’s study showed the average income of someone

with an NDSU bachelor’s degree is $58,200, compared to

$30,000 for someone with a high school diploma. The

higher earnings and associated increases in state income

expand the tax base in North Dakota by about $83.6 mil-

lion each year. NDSU graduates have a 14.4 percent aver-

age rate of return on their educational investments. An

estimated 58 percent of NDSU students remain in North

Dakota and contribute to economic growth. Visit

http://www.ndsu.edu/legislators/economic_impact/ for

the complete report.

With seven colleges and a graduate school offering

46 doctoral degrees, businesses benefit from access to

highly trained workers and the opportunity for ongoing

workforce training. One-fifth of NDSU students are

enrolled in the College of Engineering and Architecture,

providing a continuing stream of professionals to compa-

nies in the region.

Companies in the private sector partner with NDSU

for scientific research or seek expertise to gain data to help

them solve production, technology or manufacturing

challenges in an effort to enhance business success.

Further growth in NDSU research activities will con-

tribute to the regional economy. The numbers add up to

one thing — opportunity. Our continued commitment to

building public/private partnerships can only enhance

such numbers. It represents a bright future for students

and companies — one that benefits the entire region. PB

J. Bruce RafertProvost, North Dakota State University

[email protected]

Twitter: @NDSU


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|ECONOMIC DEVELOPMENT|

Growing entrepreneurship in NDBY ALAN ANDERSON

Innovation is the fuel for economic growth today

and entrepreneurs are the engines. Innovation and

entrepreneurship have been the backbone of North

Dakota’s economic success since the early days of our state.

A number of our major business successes are not from

outsiders bringing offices to North Dakota, but rather

North Dakotans building business success around innova-

tion, creating viable and valuable ventures in agriculture,

energy, manufacturing and technology. These businesses

include MDU Resources, Basin Electric, Bobcat and Acme

Electric, among others.

Our work ethic is second to none, and businesses

here enjoy a competitive edge from our innovative

workforce, stable and solvent government, fair tax and

regulatory climate and overall positive business envi-

ronment.

Our state is led by a well-known entrepreneur in

North Dakota, Gov. Jack Dalrymple. He was the founding

board chairman of Carrington-based Dakota Growers

Pasta Co., one of the largest manufacturers and marketers

of dry pasta products in North America. His work earned

him the Ernst and Young Midwest “Master Entrepreneur

of the Year” Award during his leadership of the company.

A key to future success in North Dakota is fueling

innovation and nurturing entrepreneurs who help build

the businesses of tomorrow. The capacity to innovate and

grow entrepreneurs increasingly separates regions that are

growing from those that are not.

North Dakota offers a number of programs to help

entrepreneurs succeed in our state, including the following:

• Technology-Based Entrepreneurship Grants pro-

vide grants to entrepreneur centers in four main areas:

access to capital, marketing assistance, entrepreneur infra-

structure and entrepreneurial talent. Visit

NDCommerce.com for more details.

• The North Dakota Development Fund coordinates

efforts between sources of financing, the business and the

community. Any project considered for this financing

must be feasible and have a reasonable chance of succeed-

ing. The fund provides "gap financing" through loans and

equity investments not available from most conventional

lenders and is available to any primary-sector business

with the exception of production agriculture. The fund

also administers the Regional Rural Revolving Loan Fund,

which provides funding for primary-sector projects that

are located in communities with populations fewer than

8,000 or are more than five miles outside city limits. More

information is available at NDDevelopmentFund.com.

• The Bank of North Dakota offers a number of pro-

grams that make financing easier to access and less expen-

sive for businesses of all sizes. BND’s website is:

BankND.nd.gov.

• Agritourism Grants are available for marketing and

advertising dollars for individuals, groups of individuals

or companies currently engaged in an eligible tourism

activity. Agritourism is the practice of inviting guests to

visit and/or participate in normal farm or ranch activities.

Farms and ranches participating in agritourism activities

are most often working farms and ranches, and tourism

activity is a secondary income for the family. For more

information, visit NDTourism.com

• Agricultural Products Utilization Commission

Grants can be used for basic and applied research, market-

ing and utilization, farm diversification, nature-based

agritourism, prototype and technology or technical assis-

tance. APUC, a program of the North Dakota

Department of Commerce, administers grant programs

for researching and developing new and expanded uses

for North Dakota agricultural products. Visit

NDAPUC.com for more details.

• Innovate ND is a program that assists entrepre-

neurs in the development of their business ideas through

access to coaches from entrepreneurial centers across

North Dakota. The program has a unique network of

entrepreneurial centers from across North Dakota that

offer technical assistance to all participants in the pro-

gram. Through their leadership and knowledge, partici-

pants are able to develop their business idea into a viable

business venture. For more information about the pro-

gram and the entrepreneurial centers, visit

InnovateND.com. PB

Alan AndersonCommissioner, North Dakota Department of Commerce

[email protected]: @InnovateND, @NDAmbassador, @NorthDakota


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Prairie News Industry News & Trends

Fargo Jet Center expands toWilliston

Fargo Jet Center is developing a new aviation

service company in Williston, N.D. Williston Jet

Center LLC will offer aircraft fueling, aircraft

maintenance, flight instruction, aircraft charter

management and aircraft sales. The company is

currently constructing a 6,400-square-foot pas-

senger facility and fuel farm. The center is expect-

ed to begin operating this year.

Sioux Falls builder receives national award

Sioux Falls, .S.D.-based Creative Building

Corp. was the recipient of two Best in American

Living Awards (BALA) from the National

Association of Home Builders during the

International Builders Show held in January in Las

Vegas. The company received the Gold BALA for

Remodeling and the Platinum BALA for Specialty

Remodeling Project in recognition for its work on

an estate home in Las Vegas that the firm trans-

formed into a luxury rental property. Renovations

on the 7,400-square-foot home included the addi-

tion of a 50-foot infinity pool and a 185-foot

stream with waterfall, among other improvements.

Development Fund disperses $1.4 million

The North Dakota Development Fund, a

commerce department loan program aimed at

providing flexible gap financing for new or

expanding primary sector businesses, recently

approved approximately $1.4 million in funding

for four projects in the state.

Agricultural equipment manufacturer

Horsch Anderson LLC in Mapleton received a

$600,000 loan to help finance the construction of

its 100,000-square-foot manufacturing facility.

Next Healthcare Inc., a medical health care

services business in Grand Forks, received a

$50,000 loan to fund the company’s working cap-

ital needs during its growth.

Packet Digital LLC in Fargo received a

renewal for a $750,000 line of credit to finance its

working capital needs. The technology company

provides power management for memory mod-

ules, servers and notebooks.

Taft & Main Properties LLC in Hillsboro

received a $73,000 loan through the fund’s child-

care loan program. The company is purchasing an

existing building in Hillsboro to renovate and

lease for a child care facility.

AE2S project wins engineering award

The North Dakota chapter of the American

Council of Engineering Companies has recog-

nized a water treatment plant improvement proj-

ect at Tesoro Refining and Marketing Co. in

Mandan, N.D., with an award for engineering

excellence. The project, developed by Advanced

Engineering and Environmental Services Inc.

(AE2S), utilized existing plant infrastructure with

modifications to improve the water treatment

plant’s performance.

The award will be formally presented at a

banquet on May 7 in Bismarck.

Spearfish hospital receivesLevel III Trauma certification

Spearfish Regional Hospital has been verified

as a Level III Trauma Center by the American

College of Surgeons. Level III Trauma Centers

provide 24/7 trauma care with a team including

trauma surgeon, emergency department staff and

physicians, respiratory therapy, radiology services,

CT scanning, and other services and staff.

The state of South Dakota developed, imple-

mented and administers a trauma care system,

including a statewide trauma registry for all hospi-

tals. Level III is the second highest trauma desig-

nation. Only the state’s three largest hospitals have

achieved the highest designation.

Obermiller Nelson Engineeringexpands to Bismarck

Obermiller Nelson Engineering Inc. recently

announced the addition of a fourth location. The

firm acquired KJ Schwartz Engineering in

NDTO presents 2012 export awardsFargo-based Legacy Steel Buildings, a manufacturer of pre-

engineered steel buildings, was named North Dakota’s 2012

Exporter of the Year during the North Dakota Trade Office global

business awards ceremony, held Feb. 19 in Bismarck. The compa-

ny received the award in honor of its expansion to a new interna-

tional market during the year, increased export sales and support

of the statewide effort to expand North Dakota’s global reach.

Legacy increased its exports by 70 percent in 2012 and expanded

into markets including Columbia, Bolivia and Australia.

Trade Acceptance Group, a financial services company that

provides trade finance solutions, received the 2012 Service

Provider of the Year award. According to the NDTO, TAG has

become an integral part of the Export Enhancement Program, a

new program between the Bank of North Dakota and the Export-

Import Bank of the United States, which provides loans to support

North Dakota companies that export manufactured goods. More

details about the Export Enhancement program are available at

www.banknd.gov.

Legacy Steel Buildings increased its exports by 70 percent in 2012, earning it theExporter of the Year award at the North Dakota Trade Office’s annual global businessconference, held Feb. 19 in Bismarck. From left: Dean Gorder, NDTO executive direc-tor; Bruce Engkjer, owner of Legacy Steel Buildings and Gov. Jack Dalrymple. PHOTO: LEGACY PHOTOGRAPHY

(continued on page 18)


Rotary District 5580Rotary District 5580


|PRAIRIENEWS|

Eventide to expand in FargoIn response to increasing demand for senior living facilities,

Moorhead, Minn.-based Eventide Senior Living Communities will

begin constructing a new facility in Fargo this summer. When complete

in 2014, the skilled nursing facility will provide about 90 private resi-

dent rooms for long-term and short-term care. Senior living apart-

ments are also planned. The new facility is expected to employ at least

200 people.

Jon Riewer, president of Eventide, said the nonprofit organization

considered expanding its existing facility in West Fargo, but concluded

the need for increased capacity warranted a new location that would

also provide options for future growth. “This decision was further sup-

ported after reviewing a recent market study about the future senior

housing needs in Fargo-Moorhead,” he said in a statement. “The pro-

jected growth in our senior population suggests to us that developing

on a new site rather than expanding on to one of our existing campus-

es was the better option.”

Eventide also operates a campus in Jamestown, N.D., and two

campuses in Moorhead.

Eventide Senior Living Communities has plans to break ground on afacility in Fargo this summer. The project is expected to be complete in late 2014. IMAGE: EVENTIDE SENIOR LIVING COMMUNITIES

Bismarck and will utilize the new branch office to

improve client services and strengthen its presence

in western North Dakota. KJ Schwartz opened in

1978 and has experience in HVAC design, build-

ing energy audits, alternative fuels use assessments

and plumbing.

ONE is headquartered in Fargo and has

additional offices in Grand Forks, N.D., and

Alexandria, Minn.

Delta Airlines adds Dickinson flights

Delta Airlines will offer twice-daily nonstop

service between Theodore Roosevelt Regional

Airport in Dickinson, N.D., and Minneapolis

beginning June 10. Flights will be operated by

SkyWest using 50-seat regional jet aircraft.

Sen. John Hoeven said his office worked

closely with the airline and city leaders to expand

the airport’s flight offerings, which he said will

help western North Dakota meet demand for

growing air service.

In 2012, the Dickinson airport had almost

24,000 boardings, about 5,000 more than the pre-

vious year.

KLJ study earns national recognition

Bismarck-based engineering firm KLJ

earned a National Recognition Award for exem-

plary engineering achievement from the

American Council of Engineering’ Companies in

recognition of the firm’s electrical load growth

study of the Williston Basin. The study assessed

how employment, population growth and hous-

ing demand will shape electricity demand in 43

counties in North Dakota, Montana and South

Dakota over the next 20 years. The ACEC stated

that KLJ’s study approach serves as a model for

other regions assessing long term electrical

demand and supply needs.

NDSU develops fuel app for farmers

North Dakota State University Extension

Service agricultural machine systems specialist

John Nowatzki has developed a cell phone app for

crop producers to compare projected fuel costs

and use for farming operations based on alternate

crop acreages, tillage systems and crop rotations.

The Farm Fuel Budget app can be downloaded for

Android phones from the Google Play Store.

Nor-Sun wins Minn. ABC awards

Nor-Sun Inc. recently received two awards

from the Minnesota Associated Builders and

Contractors in recognition for its workmanship

and achievement. The firm received Eagle awards

in two categories: Residential Single Family —

$1-5 million for a private home located on Star

Lake in Otter Tail County and Healthcare — over

$5 million for Perham Health Sanford.

The Star Lake home is a 7,600-square-foot

luxury home designed so that every room pro-

vides views of the lake. Perham Health Sanford,

designed by bhh Partners and construction man-

aged by Nor-Sun, is a 25-bed acute care hospital

that incorporates nature-inspired design, includ-

ing abundant natural lighting and a water feature

in the atrium, to ease anxiety for patients and

their families.

Nor-Sun is an integrated consulting, design

and construction services firm with offices in

Baxter and Minneapolis, Minn., Sioux Falls, S.D.,

and Fargo.

Wal-Mart Supercenters toopen in Sioux Falls

Wal-Mart plans to open two Supercenters in

Sioux Falls, S.D., by late 2014, pending plan

approvals by the city. The stores could create 500

jobs for the area. This is the first time in the com-

pany’s history that it will build two Wal-Mart

Supercenters in one city simultaneously, according

to the city. The stores are being proposed for the

southwest corner of 85th Street and South

Minnesota Avenue and the northeast corner of

60th Street North and North Marion Road.

(continued from page 16)


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|PRAIRIE PEOPLE|

Lignite Energy Council CEO to retire

John Dwyer, long-time president and CEO of

the North Dakota Lignite Energy Council, will

retire this year. Dwyer has served the council for

more than 30 years and is the LEC’s longest serving

president. He is also an original appointee to the

National Coal Council and serves as the elected

chairman of the Lignite Research Council, an

industry/government advisory panel.

The LEC board of directors is engaged in a

comprehensive process to select Dwyer’s successor.

RDO Equipment promotes several on leadership team

RDO Equipment Co. recently promoted six

employees to new positions on the company’s lead-

ership team.

Keith Kreps has been promoted from vice

president of agriculture to executive vice president.

He will be responsible for all agricultural regions

and will serve on the board of directors for

Vanderfield, a partnership between RDO and the

Australian John Deere dealer network. Kreps also

serves as an officer on the North Dakota Implement

Dealers board of directors.

Chris Cooper, Ryan Offutt and Jean

Zimmerman have also been promoted to executive

vice president roles within the company.

Additionally, Steve Connelly has been promoted to

vice president of Midwest agriculture and Kelly

Gress has been promoted to vice president of RDO

Integrated Controls.

Research scientist joins CCAST at NDSU

Khang Hoang has joined the North Dakota

State University Center for Computationally

Assisted Science and Technology (CCAST). Hoang

is a research scientist with expertise in condensed-

matter theory and computational materials science.

At CCAST, Hoang will research computation-

al studies of materials for rechargeable alkali-ion

battery electrodes and solid electrolytes, hydrogen

storage, thermoelectric and photovoltaics.

Applications for this research include electrical

energy and hydrogen storage for hybrid and electric

vehicles, waste heat-to-electricity conversion and

direct solar-to-electric energy conversion.

Hoang holds a doctorate in theoretical con-

densed-matter physics from Michigan State

University and is a member of the American

Physical Society and the Materials Research Society.

Securian names Wald advisor of year

David Wald has been named advisor of the

year for 2012 by Securian Financial Advisors of

North Dakota. Wald is a financial advisor with

Securian Financial Advisors of North Dakota Inc.

in Bismarck. He has been with the firm since

August 2008.

Wells Fargo appoints community development officer

Wells Fargo has named Clint Waara as com-

munity development officer for the Dakotas and

Nebraska. Waara will be responsible for communi-

ty and economic development activities in those

three states. He will be based in Sioux Falls, S.D.

Waara joined Wells Fargo in 2003 as a com-

munity development officer for Montana and the

Dakotas. Since 2007, he has served as a commercial

relationship manager for Wells Fargo Native

American Banking Services.

Eggerling named to NMF boardKristin Eggerling was recently elected to the

Northwest Minnesota Foundation board of direc-

tors. Eggerling is a freelance writer and co-owner of

two auto dealerships in northwest Minnesota. She

most recently worked in the public health field as

an administrator for Quin Community Health

Services, which serves the Minnesota counties of

Kittson, Marshall, Pennington, Red Lake and

Roseau. Eggerling blogs for Conservation

Minnesota and is actively involved in several com-

munity organizations.

Nor-Sun hires chief information officer

Karie Johnson has joined Nor-Sun Inc. as its

chief information officer/director of IT integration

& innovation. In this role, Johnson is responsible

for developing, directing and managing informa-

tion technology and information systems (IT/IS)

strategy and integration across the organization.

Nor-Sun is an integrated consulting, design

and construction services firm with offices in

Baxter and Minneapolis, Minn.; Sioux Falls, S.D.

and Fargo.

John Dwyer

Clint Waara

David Wald

Keith Kreps

Khang Hoang

Kristin Eggerling

Karie Johnson


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|BUSINESS DEVELOPMENT|

Economies throughout the Red River Valley of North

Dakota and Minnesota are strong, so now is an ideal

time to evaluate future opportunities in order to con-

tinue strengthening its communities. This is the sentiment

driving the Valley Prosperity Partnership, a coalition of pri-

vate business leaders, health care organizations, higher

learning institutions and local economic development

groups who have come together to identify opportunities

for the region as a whole.

Communities in the Red River Valley have not tradition-

ally collaborated on strategic development plans. In fact, they

often compete in many ways, from university recruitment to

attracting new businesses. But that concept was challenged last

year when Forum Communications Co. Chairman William C.

Marcil presented a vision for cooperative development

throughout the valley and put up $100,000 to seed the vision.

His efforts spurred the formation of the VPP, which Marcil

said will take both the Red River Valley and the entire state to

a higher level. “This is a historic occasion,” he said during a

kick-off event for the group held Feb. 5 in Fargo.

To launch its regional development effort, the VPP formed

a 24-member steering committee, with each member’s organi-

zation contributing at least $20,000 to support the partnership’s

work. Tammy Miller, CEO of Border States Electric in Fargo,

and Steve Burian, CEO of engineering firm AE2S in Grand

Forks, have been selected to serve as co-chairs of the committee.

In total, the group raised $500,000 for its initiative, about

half of which is being used to fund a regional economic eval-

uation and strategic development plan. Remaining funds will

cover ancillary expenses and initial implementation of the

forthcoming development strategy.

Wadley-Donovan GrowthTech LLC, a New Jersey-based

economic and workforce development consulting firm, has

been retained to conduct the regional economic evaluation. The

firm’s consultants will seek insight into the area’s current eco-

nomic drivers by surveying 300 to 400 businesses in the Red

River Valley, conducting one-on-one meetings with stakehold-

ers including students, business leaders and government entities,

and by holding public hearings. The firm will also take into

account previous economic studies of the region in order to

determine the area’s strengths and weaknesses and how best it

can achieve continued prosperity. A workforce assessment

analysis will also be conducted in an attempt to determine work-

force development needs when compared to projected growth.

The firm will present its findings, along with a handful of

suggested action items, to the VPP steering committee in August.

Burian said the VPP’s goal is to identify opportunities to

build upon the area’s existing strengths, such as agriculture-

based manufacturing and research capabilities at universities,

and provide economic development groups with tools to

attract businesses to the area. “Through this process we will

define what communities in the Red River Valley can do

together to capitalize on opportunities and strengthen our

region’s economic and employment base,” he said.

RRV unites for continued prosperityCommunity leaders form new group to promote joint economic developmentBY KRIS BEVILL

Steve Burian, CEO of AE2S,and Tammy Miller, CEO ofBorder States Electric, co-chair the Valley ProsperityPartnership’s steeringcommittee. PHOTO: FORUM NEWSSERVICE/DAVE SAMSON


EBUILDING SYSTEMS CONSULTANTSN

Though the steering committee is com-

prised of representatives from a broad cross-sec-

tion of interests, Burian says input from mem-

bers has been positive and he is optimistic the

group will be able to collaborate without the

interruption of individual biases.

Jim Gartin, president of the Greater Fargo

Moorhead Economic Development Corp. and

VPP steering committee member, said the

group’s leadership realizes that the Red River

Valley must join together in order to continue to

succeed. “The world is telling everybody now

that you have to be more collaborative,” he says.

“We can’t worry about who’s competing with us

here. We’re worried about who’s competing with

us in India and everywhere else.”

Burian says Wadley-Donovan was selected

to develop the region’s strategic plan in part

because the firm specializes in workforce develop-

ment. He expects that topic will play a fundamen-

tal role in the group’s final development initiative.

PB

Kris Bevill

Editor, Prairie Business

701-306-8561, [email protected]


|ENGINEERING|

Compete, Complete,Recruit, Repeat Engineering firms face stiff competition for projects, employees in western NDBY KRIS BEVILL

The need to quickly expand every component of life and business in west-

ern North Dakota has meant projects are aplenty for engineering firms

and the consensus is that the rapid pace of activity will continue for a

number of years. But as the build-out continues to draw attention from engineer-

ing companies throughout the country, everyone must contend with an increas-

ingly competitive market for projects and for employees. So how do firms plan to

keep up, retain their workforce and continue to expand their market shares?

Attention to detail, maintaining focus on the client’s needs and good old-fash-

ioned hard work are ingredients in the recipe for continuous work orders, according

to firms doing business in the region. Having connections in North Dakota through

previous projects doesn’t hurt either. Employee retention is a separate unique chal-

lenge. Leadership must constantly evaluate the compensation packages offered to

employees working in the region to maintain competitiveness. Housing provisions

and other stipends are common inclusions and most of the firms with employees in

the region feel all companies are providing similar pay and benefits, so the differen-

tiating factor typically boils down to company culture. Locating the right employee

to fit the firm is a task that now requires full-time recruitment specialists for many

engineering companies, and the search often extends throughout the country,

although many say they look first for potential candidates with direct ties to the area.

“Obviously finding staff is constantly a challenge and we’ve had to extend our

searches further and further out all the time to find those people,” says Steve Nagle, vice

president of North Dakota operations for Minneapolis-based Braun Intertec.

“Whenever we find somebody that has roots in North Dakota, we definitely give them

a high preference. We do not just limit ourselves to that, but we do try to appeal in our

ads or our social media searches to people that may have a North Dakota background.”

Braun Intertec employs more than 500 people at multiple locations through-

out Minnesota, North Dakota, Wisconsin and Iowa. The firm added 90 new employ-

ees last year, 60 of whom are located at newly opened offices in Minot and

Dickinson, N.D., and it’s looking to add another 50 people this year. “Just about every

one of our different disciplines added staff in 2012 and it looks like it’s going to be

another aggressive year of adding staff,” Nagle says.

Nagle’s firm has done some work in North Dakota throughout the years, but the

Bakken region has presented an opportunity to expand that presence in recent years,

Minneapolis-based Braun Intertec’s emphasis in west-ern North Dakota is in providing construction supportand environmental testing for infrastructure expansionprojects. The firm expects oil patch-related work toaccount for up to 50 percent of its total revenues withinthe next five to six years. PHOTO: BRAUN INTERTEC


|ENGINEERING|

from 10 percent of the company’s rev-

enues a few years ago to 26 percent since

2008. The firm now expects that western

North Dakota could account for as much

as 50 percent of Braun Intertec’s total rev-

enues within the next five to six years. In

his role, Nagle spends much of his time

evaluating the market, the competition

and developing tactics to respond to the

constantly changing atmosphere. There

are many components to staying ahead of

the changes, but one of the most challeng-

ing is keeping up with the competition for

employees, he says. “It definitely puts you

on your toes [because] it’s one thing to

hire them, but it’s another thing to make

sure that they’re happy, well-supervised,

safe and properly trained,” he says. “There

are a lot of challenges that are related to

that and focusing on doing what’s right for

the employees is what helps from the turn-

over standpoint.”

Bismarck, N.D.-based KLJ has

maintained a presence in western North

Dakota since the first oil wells were drilled in the early 1950s. About

40 percent of the firm’s current business is Bakken-related, accord-

ing to Chief Production Officer Barry Schuchard, who says all of

KLJ’s divisions are impacted in some way by the demand for proj-

ects in the oil patch. The firm has more than doubled in size over the

past few years in response to the growing opportunity for projects

in the oil patch and throughout the region. Approximately 125 full-

time workers were hired just last year, bringing its current staff up to

about 700 people across 18 offices. The firm has expanded multiple

locations to accommodate its increased size and plans to open addi-

tional offices in Watford City, N.D., and West Fargo. Schuchard says

KLJ will continue to hire based upon demand, and the potential

exists for a significant number of new employees to be added this

year. In early March, KLJ already had 50 openings for various posi-

tions throughout the firm.

In its search to fill senior-level positions, Schuchard says KLJ has

had to expand its efforts from a regional to a national focus in order

to attract the best talent, but a large part of the firm’s strategy to recruit

new members continues to be local universities. “Our talent here is

unbelievable,” he says. “You can’t match the work ethic of the people

in this area. They are highly sought after now, it’s become very com-

petitive, but we work very hard at our universities to make sure we

have a presence there, not just when it’s hiring time but year round.”

A common strategy among engineering firms with multiple

locations has been to utilize staff in offices outside of the oil patch to

assist in completing projects on tight timelines, and KLJ is no excep-

tion. That strategy can also assist in the hiring process, considering

that housing and other issues can sometimes deter potential candi-

dates from accepting positions in the western part of the state. “You

can only get so many people out there at a time,” Schuchard says. “So

we need to provide that support in other locations, where it might

be easier from a housing standpoint to get people situated and

working for you.”

Advanced Engineering and Environmental Services Inc.

(AE2S) has also maintained a presence in western North Dakota for

some time, but the energy boom of recent years has led to a rapid

expansion at the firm, which has grown from 60 full-time employees

two years ago to 180 full-time staffers today. Western North Dakota

currently accounts for about half of the firm’s business, according to

Russell Sorenson, regional manager for the western Dakotas. The

firm recently purchased a former clinic in Williston which it will con-

vert to office space. The company has been renting office space for

the past 15 years, but decided to permanently invest in the city due to

the area's increasing work load and the firm's growing number of

employees in the area. AE2S employs 60 people at its North Dakota

offices in Bismarck, Minot and Williston, but the entire firm con-

tributes to projects in the oil patch. “Pretty much every office from

Minnesota to our Montana offices has supported in some fashion

what’s been going on [in western North Dakota],” he says. “We’ve

leveraged companywide to get projects completed on time.”

After two years of substantial expansion, Sorenson anticipates

that AE2S will grow modestly this year, adding six to 10 new full-

time employees to help the firm continue to complete its project

load. When it comes to recruiting new employees, Sorenson says

aggressive headhunting among firms can make employee retention

difficult and the firm’s leadership is constantly on the look-out for

quality candidates. And while the national recession has brought

many applicants to the door when new positions are advertised,

they’re not always the best fit. “It’s a catch-22 — there’s a pool of

AE2S employees oversee the placement of pipes as part of the Western Area Water Supplyproject in western North Dakota. The firm, which specializes in water-related projects, hasgrown rapidly in the past two years in response to increased demand in western North Dakota.PHOTO: ADVANCED ENGINEERING AND ENVIRONMENTAL SERVICES INC. (AE2S)

people to pull from, but it’s a difficult pool to make sure you’re get-

ting what you want,” he says.

Sharon Miller, human resources director at Ulteig Engineers

Inc., agrees that while there are great candidates to be found, recruit-

ing to an area of the country that has become notorious for its

remoteness and difficult living conditions can present a hiring chal-

lenge. She also notes that the recession in other parts of the country

has made western North Dakota job opportunities tempting for those

seeking short-term solutions, but firms here would prefer to find loyal

candidates. “That’s why there’s such a high turnover,” she says. “People

are attracted to it because they can make some quick money. What

we’re looking for is people who really want to be a part of our culture.

It’s a very dynamic environment to recruit in.”

Ulteig currently employees about 350 people in eight offices

located in Minnesota, South Dakota, North Dakota and Colorado.

The firm racked up modest growth in new employees last year,

adding seven employees to its Bismarck office and four in Williston,

and is expected to continue growing this year. More important for

Ulteig, however, is implementing a complete overhaul of the firm’s

service strategy, a redesign which Miller says was brought about by

increased competition and a desire to explore new markets while pro-

viding the best possible client service. The new “client intimate” strat-

egy is expected to be fully implemented by June and entails a new

sales strategy which shifts from the traditional “seller-doer” style to a

process that includes dedicated sales staff working in tandem with

project managers and technical teams. “What we’re trying to do is

provide the engineers the tools and opportunities to produce high-

quality, accurate work and have someone else help with the sales side

of the business,” she says.

Ulteig’s new strategy is expected to be client-driven and should

be a seamless transition for existing clients, according to Miller. In the

meantime, the firm is continuing to focus on expanding its market

share and attracting new talent. Miller says she believes Ulteig’s

internship program is strong and offers an opportunity for organic

growth. “We do whatever we can to go to other locations to find tal-

ent beyond the local pool,” she says. When on the recruiting trail,

Miller finds the most success with candidates who hail from similar

climates or who have a North Dakota background.

The competitive climate in western North Dakota may appear to

offer an advantage to large firms with hundreds of staffers, but that is

not the case, according to Michael Karvakko, president of Bemidji,

Minn.-based Karvakko Engineering. His firm, with a current staff of

15, landed its first energy-related western North Dakota project just

last spring, but Karvakko says the opportunity for more work in the

area is so great that he made the decision to expand to Minot, N.D.,

and will open an office there this month. He anticipates doubling the

firm’s staff size within the next six months. “I don’t think it matters on

the size of the firm,” he says. “It’s the quality of service your client is get-

ting. We’ve been the David and Goliath story on many different fronts.

We work just as hard and get just as much work.”

While the Bakken region is a commanding source of work for

many engineering firms, the continued growth of the energy sector

and other industries elsewhere in the

region is also contributing to a healthy

outlook for engineers, with many expect-

ing that as demand slowly subsides in

western North Dakota work will continue

to ramp up in the eastern region. Those

tasked with evaluating the pace of new

projects in the Bakken region all express

confidence that the next two to five years

will continue to be quite active before lev-

eling off to more manageable workloads

as communities begin to catch up on

infrastructure-related projects and oil

production matures. “I would say we’ve

got another two years and then it’ll start

becoming more normal work,” says

AE2S’s Sorenson. “I do think there’s going

to be a lot of firms that probably can’t sus-

tain out here [in western North Dakota].

They think the workload is bigger than it

is. That’s not to say there’s not going to be

quite a few firms with some room to grow

and we would like to be inside of that and

be one of the more permanent ones.” PB

Kris Bevill




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|SUSTAINABILITY|

The Benefits ofBeing GreenSustainable building projects lessen environmental impact, reduce long-term operating costsBY KRIS BEVILL

Arecent report released by the World Green Building Council offers build-

ing developers, owners, investors and tenants a comprehensive review of

the costs and benefits associated with sustainable building projects. The

report, “The Business Case for Green Building,” makes the case that sustainable

design is not just good for the planet, it’s good for business too.

“While green buildings have well-documented environmental benefits, we have

made a conscious decision to focus this report on the economic and social benefits of

green building,” the authors said in the report. “The green building movement has

matured over time, and a deeper understanding of the ‘triple bottom line’ value of

green buildings has emerged, shifting the emphasis from ‘planet’ to ‘people’ and ‘prof-

it.’ Consequently, the conversation is now geared around how green buildings deliver

on economic priorities such as return on investment and risk mitigation and on social

priorities such as employee productivity and health.”

The report breaks down the business benefits of building green into five categories:

design and construction costs, asset value, operating costs, workplace productivity and

health, and risk mitigation. It states that while green projects do tend to cost more than

traditional projects initially, the actual costs are generally not as high as they are per-

ceived to be, and the additional up-front costs of green buildings are often recouped in

the long term by way of reduced energy costs, water usage and other factors.

From an asset standpoint, the report concluded that certified sustainable build-

ings enjoy increased marketability and can command higher rents and sale prices.

Because green buildings typically use less energy and water, they also cost less to own

and operate and can sometimes achieve additional savings through property tax

reductions, rebates and reduced insurance rates.

Sustainable design can also reduce operating costs in a workplace environment

through improved employee performance and health, according to the report.

Components of green design, including increased natural lighting, materials contain-

ing minimal toxins, appropriate outdoor air ventilation and open spaces all contribute

to healthy indoor environments and have been found to lessen employee sick days and

improve productivity.

As with any building project, there are risks and potential rewards associated

with investing in a sustainable building project and the report highlights several,

A 31,000 -square-foot expansion to Cass Lake IndianHealth Services on the Leech Lake Reservation innorthwest Minnesota is being designed to qualify forLEED (Leadership in Energy & Environmental Design)Silver certification. IMAGE: EAPC


|SUSTAINABILITY|

including regulatory compliance, supply and

demand, and the economic viability of locations

and designs in a changing climate. The report

advises investors to research the implications of

potential regulations and climate change and fac-

tor them into sustainability risk assessments.

Additionally, the report’s authors urge investors

to consider the growing demand for green build-

ings and compare the value of green buildings to

traditional buildings when considering those

types of investments.

Local DemandLeadership in Energy & Environmental

Design (LEED) is the third-party verification

program for green buildings in the U.S. and in

many other countries around the world.

Developed by the U.S. Green Building Council,

LEED is a voluntary program that uses a rating

system to verify a building’s sustainability. The

system includes four certification levels — certi-

fied, silver, gold and platinum — which corre-

spond with the total number of points awarded

in multiple design categories. Points are awarded

to projects in five main categories, including sus-

tainable sites, water efficiency, energy and atmos-

phere, materials and resources, and indoor envi-

ronmental quality. LEED accredited professionals

(APs), of which there are thousands throughout

the country, help guide a project through the

LEED project development process and certifica-

tion application necessary for the project to ulti-

mately be deemed LEED certified.

Although sustainable design and LEED cer-

tification is not as widely coveted a concept in the

wide open spaces of the northern Plains as it is in

regions of the country where space and energy

are at a premium, many architecture firms in the

upper Midwest employ multiple LEED APs. The

majority of LEED certified projects in our region

are publicly funded projects, which are generally

required to be built to LEED Silver standards.

However, firms are noticing increased interest

from private project clients as well, and say that

the number of privately funded sustainable proj-

ects continues to grow each year.

Architecture Incorporated of Sioux Falls

and Rapid City, S.D., employs a team of 13 LEED

APs and works on an average of between three

and five LEED standard projects each year,

according to Andrew Eitreim, LEED AP and

licensed architect.

The firm is currently working with Kansas

City-based Crawford Architects to design a new


|SUSTAINABILITY|

indoor practice and human performance center at South Dakota State

University, which will be seeking LEED Silver certification when com-

plete. The center, estimated to cost about $30 million, will include year-

round training space for all sports, an eight-lane, 300-meter track and a

100-yard synthetic field. One of the building’s LEED design features is a

tall band of windows throughout the perimeter of the facility which will

let ample daylight into the building. “That was one of the goals was to

have lots of natural light,” Eitreim says. “On most days, there should be

enough daylight that they won’t need to supplement with a lighting sys-

tem. That’s a unique opportunity with a facility of that nature.”

Eitreim says Architecture Incorporated tries to incorporate sus-

tainable concepts into every project. “You try to make intelligent choic-

es to conserve energy and give a good, long-lasting building whether

you’re going after LEED certification or not,” he says.

While the vast majority of the firm’s LEED certified projects to

date have been publicly funded projects, the firm does also work occa-

sionally on privately funded projects that aim to achieve LEED certifi-

cation. One of them, the Children’s Museum of South Dakota in

Brookings, recently received the Buildy Award 2013 from the Mid-

Atlantic Association of Museums, in large part due to the project’s focus

on sustainability.

Opened since September 2010, the museum is housed in a con-

verted elementary school, originally built in 1936. Sustainability was a

main focus during the building renovation and construction of the

museum and many of the building’s original features were re-used,

including the terrazzo and wood floors, wood doors and the wooden

bleachers. New materials were produced regionally, such as a

Minnesota-made pressed sunflower hull product used for casework,

or contained recycled content. The building incorporated many ener-

gy- and water-saving features, such as automatic lights, low-flow toi-

lets, automatic faucets and native plants in the outdoor areas to reduce

the need for watering, and was designed to provide the healthiest

indoor environment possible through the use of materials containing

minimal toxins.

Suzanne Hegg, executive director of the museum, says the muse-

um’s board of directors and its benefactor, the Pat and Dale Larson

Family Foundation, were committed to sustainability from the project’s

onset. The museum does not disclose the final cost of the project, but

Hegg says that while it was initially more expensive than a traditional

build, the museum has already recouped some of the initial added up-

front expense through energy rebates and reduced water and energy

costs. “Even if we weren’t recouping operating costs, just having the

investment in teaching families — that’s worth investing in,” she says.

EAPC, a consulting firm with offices in North Dakota, Minnesota,

Vermont and Argentina, also has LEED APs on staff and the firm incor-

porates sustainability measures into its projects whenever possible. One

of the firm’s current projects is a 31,000-square-foot expansion to Cass

Lake Indian Health Services on the Leech Lake Reservation in northwest

Minnesota. EAPC is currently in the design development phase for that

project. One of the program requirements by the Indian Health Services

is to design the project to achieve a minimum LEED Silver certification,

according to Leap Chear, LEED AP and project manager at EAPC. The

project will incorporate an upgraded, high efficiency HVAC system and

will source regional materials such as stone quarried in Minnesota for a

portion of the building materials. The expansion will also include addi-

tional access to daylight to further reduce energy use and improve the

indoor environmental quality and will install low-flow plumbing fix-

tures to lessen water use.

Chear says energy efficiency improvements are the most common

measures implemented to improve the sustainability of any project, and

he expects that trend to continue. “With the price of energy going up,

that will continue to be one of the biggest elements,” he says. The vast

majority of EAPC’s LEED certified projects are publicly funded, but

Chear says private projects are also increasingly interested in incorpo-

rating sustainable elements. However, it is more common for private

projects to incorporate sustainable features that make sense for the proj-

ect rather than devote the additional time and money to apply for LEED

certification, he says.

The Children’s Museum of South Dakota,located in a former elementary school build-ing, was built to LEED Silver standards andapplied sustainability concepts to every partof the museum grounds. Features of the 1.5-acre interactive outdoor prairie, which was aformer playground and baseball fields,include a stream and prairie grass maze.PHOTO: CHAD COPPESS, SOUTH DAKOTADEPARTMENT OF TOURISM



jlgarchitects.com

A multi-generation, family owned, global potato company, Black Gold Farms is thenation’s largest supplier of fresh crop chip potatoes. Dedicated to protecting theirroots in order to keep growing and thriving for generations to come, Black Gold’s newGrand Forks headquarters is seeking LEED Gold certification for its sustainable buildingmethods,whicharealready resulting in26%energyefficiencyoverother similarbuildings.

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|SUSTAINABILITY|

UND Goes PlatinumLast fall, the University of North Dakota set a new precedence for

LEED projects with the opening of the Gorecki Alumni Center. The $13

million project was built to achieve LEED Platinum certification and is

believed to be the first building in North Dakota built to those stan-

dards. It is also believed to be the first alumni center in the U.S. to seek

LEED Platinum certification.

The entire project, from site selection to grand opening, took

about six years to complete, according to Rebecca Molldrem, LEED AP

and licensed architect at JLG Architects. However, she says designing for

a LEED Platinum project was not much different than designing for a

Silver project, other than additional LEED-specific meetings to ensure

the project would meet sustainability goals.

As with most LEED projects, many of the sustainability features

installed at the alumni center are not visibly apparent. Geothermal heat

pumps are utilized to regulate the building’s temperature and photo-

voltaic panels on the roof produce energy to meet some of the center’s

needs. A storm water collection system was put in place beneath the

parking lot and the grass on the center’s lawn is a low-maintenance mix

considered to be adaptive to the North Dakota climate.

Other features at the center are more noticeable, although one may

not immediately know they were designed with LEED in mind. “My

favorite part is the access to daylight and views for the employees,”

Molldrem says. “It makes for a really great work environment to be con-

nected to nature and can help reduce the amount of sick days. There is

one particular place that if you stand in the hallway you can see out of

the building in all four directions. That I think is very unique for an

office building, which often can be a windowless cubicle city. That’s the

part of LEED I like best, where you begin to understand it is about the

people, and not the building.”

The alumni center’s LEED certification application is currently in

the review process, but JLG anticipates that the building will receive its

platinum rating by the start of the upcoming school year. The universi-

ty has already received positive feedback from alumni center visitors

and staff, according to Milo Smith, alumni center media coordinator,

who says the building has been a great selling point for admissions staff

giving tours to prospective students.

JLG, which has five North Dakota locations and two in Minnesota,

has 16 LEED APs and does work for one or two LEED projects each year

on average, although Molldrem says the number of LEED projects has

been steadily increasing over the past several years. The firm currently

has six LEED projects at various stages of certification, representing a

mix of public and privately funded projects and various building types.

The UND alumni center was the first project JLG designed for a LEED

Platinum certification. “Most of our clients are interested in at least sil-

ver or certified level at a minimum, with some requests for gold,”

Molldrem says. “Platinum is still a level which people are intimidated by,

mostly because of unfamiliarity with the process and how it may affect

their project timeline and concerns about added costs.” PB

Kris Bevill



The University of North DakotaGorecki Alumni Center is believed tobe the first alumni center in the U.S.to seek LEED Platinum certification.PHOTO: JLG ARCHITECTS

(continued from page 30)


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|HIGHER EDUCATION|

The best ofwhat’s aroundCustomized training programsaid in skills enhancement foravailable workforceBY KRIS BEVILL

Workforce supply issues have

become a common theme

throughout the upper Midwest in

all areas of business. Aside from simply not

having enough people in the area to meet

demand, shortages can also result from an

incompatibility between available workers’

skill sets and the skills required to fill open

jobs. In order to fill employment gaps, busi-

nesses may turn to customized training pro-

grams to deliver targeted training to current

or prospective employees in order to provide

them with necessary skills.

Publicly funded programs such as

TrainND in North Dakota and Minnesota State

Colleges and Universities’ (MnSCU) custom

training services have experienced increased

demand for their services in recent years as the

number of businesses in the region has grown

out of step with the available workforce.

Mary Ryan, director of client services for

Minnesota State Community and Technical

College’s (M-State) custom training services, has

been involved with M-State’s training services

program for nearly 20 years and says that while

the delivery methods for training have evolved in

the past two decades to incorporate technology

changes, the basic training needs of many compa-

nies have remained the same. “At least half of my

work is just plain people skills — supervisory and

leadership skills,” she says. “We’re ‘Minnesota

nice.’ We don’t like dealing with conflict.”

Ryan says that while the training topics are

often similar, each company measures success

in different ways, making customized training a

necessity. “We need to know what the company

wants for outcome and how well they do in per-

formance appraisals and in measuring people’s

abilities,” she says. “That’s where you run into

the variability — each company culture.”

M-State’s region encompasses a 50-mile

radius of its campuses in Fergus Falls, Wadena,

Moorhead and Detroit Lakes, but Ryan says the

program can, and often does, provide training to

businesses out of the area. Because training is cus-

tomized for each client, unique programs can be

developed to address issues targeted toward one

specific segment of an industry in a particular

region. For example, M-State recently partnered

with four long-term health care facilities in Fergus

Falls, led by PioneerCare, to provide certified nurs-

ing assistant (CNA) training in order to boost

interest in the field, reduce turnover and improve

the skill level of the incumbent workforce.

“There are several long-term care facilities

in Fergus Falls, and a hospital, and they just sim-

ply couldn’t recruit enough people for the nurs-

ing assistant field,” Ryan says. “[They] made the

decision to be pro-active in retaining CNAs and

give them a career path through extra training.”

The program was funded by a West

Central Initiative workforce development grant

and consisted of four, eight-hour CNA training

modules. Participants received a financial

incentive for completing each of the four mod-

ules, followed by a permanent bonus for those

who completed the entire program.

Participants who completed the CNA training

also had the opportunity to continue working

toward a nursing degree at either M-State or the

University of South Dakota. The program also

offered supervisor leadership training for

licensed practical nurses in order to improve

team leadership skills.

In total, the program provided training for

more than 40 participants. M-State is currently

measuring employee retention levels, and thus

the program’s success rate, at the four participat-

ing care facilities, the results of which will be

released later this year. Early feedback has been

positive, however, even drawing the attention of

Sen. Amy Klobuchar, who visited PioneerCare on

Feb. 21 as part of a listening session tour focused

on Minnesota’s workforce development needs.

North Dakota businesses are also facing a

continual shortage of workers and often must

provide on-the-job training for new hires.

TrainND, established in 1999 by the legislature,

has offices located at Bismarck State College,

Williston State College, Lake Region State

College in Devils Lake and North Dakota State

College of Science in Wahpeton.

Carla Braun Hixson, associate vice presi-

dent of continuing education, training and

innovation at BSC, says each regional office has

become somewhat specialized in the training it

provides based on the needs of the communi-

ties served, but all four regions are able to

acquire industry experts to provide uniquely

created training for any business. “That’s one of

the reasons that businesses work with us, is that

you can come to us for all of your training

needs,” she says. “Part of our job is to find some-

body who’s a subject matter expert in that area.”

Braun Hixson says each region typically

trains about 3,000 people each year, although

the Williston office provided training for about

5,000 people in 2012. “Everybody’s coming up

there without any of the skill sets,” she says. “You

can’t have people go out on a rig without any

training, so that becomes very important.”

The statewide workforce shortage and

influx of unskilled workers has been reflected in

TrainND’s program offerings, according to

Sen. Amy Klobuchar, D-Minn., listens as Mary Ryan, director of client services forcustom training services at M-State, describes a program developed to increase thenumber of available nursing assistants for long-term health care facilities in FergusFalls, Minn. PHOTO: KRIS BEVILL


|HIGHER EDUCATION|

Braun Hixson. When TrainND was launched, the

majority of the training provided was directed at

the incumbent workforce, for specific skills. Now

it's common for the program to host training ses-

sions, such as commercial driver’s license classes,

that are also open to the public for a small fee.

TrainND also collaborates with new compa-

nies to identify desired employee skills and devel-

op appropriate training programs. For example,

BSC’s National Energy Center of Excellence is

developing a training program with MDU

Resources Inc. and Calumet Specialty Products

Partners LP to train workers for the future Dakota

Prairie diesel refinery near Dickinson.

Kari Knudson, vice president of NECE, says

the program will likely be based upon the center’s

long-running process plant program, which pro-

vides training for operators at a variety of indus-

trial facilities, including refineries and ethanol

plants. The Dakota Prairie program is in the early

stages of development, so Knudson could not yet

estimate the number of workers that will be

trained through the program. PB

Kris Bevill




|SOUTH DAKOTA|

Brookings, S.D.-based Daktronics Inc. is a world

leader in designing and manufacturing a wide

array of large-screen video displays, scoreboards

and LED (light emitting diode) displays, providing some

of the most technologically advanced and largest screens

currently in use around the globe. But when South

Dakota State University professors Al Kurtenbach and

Duane Sander formed the company in 1969, world dom-

ination of the electronic display industry was far from the

forefront of the pair’s plans. They simply wanted to pro-

vide jobs for graduates of the university’s engineering

program. So they opened the business knowing not what

they would make, but that whatever they chose would

have to be engineer-based.

The company employed a number of SDSU students

from the start. One of them, Jim Morgan, would later

become the company’s leader. “I started working for

Daktronics while pursuing my master’s degree in electrical

engineering at SDSU,” says Morgan, who currently serves as

president and CEO. “At the time I started working for the

company in the fall of 1969 the company was less than a

year old and was still exploring business opportunities to

determine where it would focus.”

Morgan worked on a variety of projects during the

company’s early days before leading in the design and

manufacture of the company’s first standard product — a

wrestling scoreboard known as the Matside. That product,

as well as a customized electronic voting system, was

unveiled in 1970. The company later sold its electronic vot-

ing system segment and focused on its display systems

business. In 1999, Morgan became president and chief

operating officer of the company, just as a Japanese com-

pany had invented blue and green LEDs which could be

used with existing bright red LEDs in outdoor applica-

tions. Daktronics incorporated that full-color LED display

technology into its product line, allowing it to offer sports

venues true video displays for the first time. “This revolu-

tionized our display business and greatly expanded the

market for us,” Morgan says.

Morgan was named CEO of Daktronics in 2001 and

continued the company’s focus on advancing LED technol-

ogy-based displays. “The introduction of the LED technol-

ogy greatly increased the demand for our products, and our

biggest challenge through most of the 2000s, up until the

economic downturn, was how to respond operationally to

the increased demand,” he says.

In 2006, Daktronics adopted the lean manufacturing

concept, which Morgan says transformed its manufactur-

ing division and was one of the most significant moves the

company made to streamline operations. The concept,

which is based on increasing efficiency and reducing waste

by producing only those items needed by a customer, has

since been incorporated throughout the entire company.

Daktronics revenues grew steadily from $123 million

in fiscal year (FY) 2000 to $581 million in FY 2009. In 2006,

the company opened manufacturing plants in Sioux Falls,

S.D., and Redwood Falls, Minn., to meet increased cus-

Daktronics Inc. supplieslarge-screen video dis-plays for a variety ofapplications around theworld. In January, thecompany installed whatis believed to be thelargest LED display inEurope, located inLiverpool, England,which is being used for athird-party advertisingapplication. PHOTO:DAKTRONICS INC.

Jim Morgan, president and CEO,Daktronics Inc.

Success on displayHow Daktronics rose from humble beginnings to industry leader BY KRIS BEVILL


,/+ 47 0 :311*7;924$; 09$645;$539; 0&" ;&84&;;94&8 :49( 5605 7!;$4014%;7 4& 6#5;1 ";748&) -; 09; 9;$#8&4%;" &054#&011' 07 #&; #: 56; )#" */.'&,+.,- ! %+-&($+/- 4& 6#7!450145' .' /-&#!.# 1-*,!)+0!)" 0&" 1-)%0 '(*!.%** $%*!#.)

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|SOUTH DAKOTA|tomer demand. Both factories continue to operate, employing approximate-

ly 300 people in Sioux Falls and 200 people in Redwood Falls. The company

has a total of 2,650 employees worldwide; about 1,600 of them work at the

company’s headquarters in Brookings.

Daktronics has been exporting its products for many years, but the role

exports have played in its business model has expanded significantly in recent

years. The company opened its first international sales office in Montreal in

2000, followed by locations in Germany in 2003 and Shanghai in 2005. Early

this year, the company announced plans to acquire Belgium-based Open Out

of Home, or OPEN, which currently sells display products to the third-party

advertising market in Europe. Daktronics will incorporate its LED display

modules into OPEN’s displays and plans to utilize OPEN’s existing manufac-

turing facility to conduct assembly work on products for European cus-

tomers, saving time and money compared to other options.

Morgan says Daktronics’ future includes the continued evolution and

improvement of its LED technology and to develop new applications for its

use, including the expansion of LED displays for third-party advertising. The

company will have to do it without Morgan, however. In February, he

announced plans to retire by the end of this year. He will be replaced by Reece

Kurtenbach, who currently serves as executive vice president. “I am very

proud of Daktronics’ growth and success, and honored to have been a part of

it,” Morgan says. “I have been with the company since 1969. It’s time to pass

the torch.” PB

Kris Bevill



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|WESTERN NORTH DAKOTA|

The nextWilliston Watford City braces for extended growthBY KRIS BEVILL

According to the 2010 U.S. Census, Watford City,

N.D., had a population of about 1,750 people,

not bad for the quaint county seat in sparsely

populated McKenzie County, situated just to the north

of Theodore Roosevelt National Park’s North Unit and

west of Lake Sakakawea. But that was pre-oil boom.

The town’s population has since grown to a level never

before experienced, and the people just keep coming.

The explosive, ongoing influx of oil and gas-related

workers makes it nearly impossible to accurately pin-

point Watford City’s current number of residents, but

estimates place it around 6,000, nearly equal to the entire

county’s population in 2010. The 2012 North Dakota

Statewide Housing Assessment projected that McKenzie

County will continue to experience significant growth

over the next decade, most of which will occur during

the next two years, when the county’s population is

expected to grow to more than 11,500 people.

Growth of that magnitude brings with it many

complicated issues, but also many development oppor-

tunities. Residents of Watford City have been witness to

the community’s growth and need for related services

for some time, but industry and developers have been

somewhat slower to realize the town’s potential. That

appears to be changing as major projects have begun to

be developed in the community.

“It’s taken awhile for the markets to realize that

this is for real,” says Gene Veeder, executive director of

the McKenzie County Job Development Authority.

“The large companies come out here and take a look at

the area and the volume of business that’s coming

through, and then they have to sell it to their investors

that this is real. That’s what has taken the longest.”

Veeder says a “tremendous amount” of construc-

tion activity will take place this spring, as everything

from truck stops and hotels to large retail centers and

restaurants are built to meet the town’s demand for

goods and services. The largest project currently under

construction with announced tenants is a 120,000-

square-foot retail space, dubbed Watford Plaza, which

is being developed by Minneapolis-based Oppidan

Investment Co. The $20 million project will include a

Cash Wise Foods, Alco and a restaurant buffet and is

expected to be complete in mid-July, according to

Oppidan project developer Jay Moore.

Oppidan will also open a 42-unit apartment com-

plex in Watford City in May and recently provided a

$10,000 donation to the Wolf Pup Daycare Center,

which is being developed as part of Wolf Run Village, a

nonprofit project aimed at providing affordable hous-

ing for public service employees and daycare services

for up to 200 of the community’s children. Moore says

Oppidan contributed to the cause because the firm

wants to be a good steward of the community. “We’re

going to be in Watford City for a long time,” he says.

“Without a daycare, it’s hard to bring families there.

Without families, it’s hard to sell groceries.”

Other major development projects are in the

process of coming to fruition, including The Crossings,

a master-planned residential and commercial commu-

nity that will include retail options, hotels and restau-

rants and is being developed by Bakken Development

Solutions. Veeder says he expects a number of fast-food

restaurants, truck stops and hotels to establish in

Watford City soon and predicts the town will have the

ability to serve 100 percent of its population within the

next few years.

In response to new business growth, the Watford

City Area Chamber of Commerce recently added Laura

Sanford as executive director to promote the chamber

and its services to newcomers. The chamber currently

has 150 members, up from 100 one year ago, and has set

Oppidan Investment Co. is developing a 120,000-square -foot retail center n Watford City,N.D., which is expected to becomplete this summer. IMAGE: OPPIDAN INVESTMENT CO.

A


|WESTERN NORTH DAKOTA|

a goal of doubling its membership this year. “We

feel this is a great opportunity to get the businesses

involved and tell them what Watford City has to

offer and to reach more people to be part of our

wonderful community,” Sanford says.

One of the first programs Sanford imple-

mented since becoming executive director was a

monthly networking luncheon, which has so far

exceeded expectations. She expected about 20

attendees for the first event, held Feb. 5. “We had 50

people show up,” she says. Attendance increased to

60 people for the March event. “Businesses old and

new want to connect with the community and this

event helps them do that,” she says.

The chamber also hosts a monthly Business

After Hours event and plans to establish a store

front office this year to further service its members

and the community.

Unprecedented growth has become a com-

mon theme in communities throughout the oil

patch of western North Dakota, but Watford City

has gained a reputation for its willingness to

embrace the changes and develop in a forward-

looking fashion. Sanford and Veeder credit city offi-

cials and community members for working togeth-

er to prepare and implement plans for the town’s

historic change. Veeder also notes that many of

Watford City’s business people are young and

therefore have a vested interest in the town’s long-

term future. “When the business sector is older, they

may not be quite as interested,” he says, adding that

the town has always been “a fun place to work.” PB

Kris Bevill



Laura Sanford, executive director, WatfordCity Area Chamber of Commerce


This spring marks the beginning of what

is expected to be a multi-year popula-

tion boom in the Big Stone City, S.D.,

region, as hundreds of construction workers

carry out a massive environmental upgrade at

the Big Stone Plant, a 475 megawatt coal-fired

power plant owned by Otter Tail Power Co.,

Montana-Dakota Utilities Co. and

NorthWestern Energy. According to Otter Tail

Power Co., the operating agent for the plant,

up to 200 workers will be in the area this sum-

mer, increasing to between 300 and 500 work-

ers when the project is at its peak throughout

2014 before diminishing as the project nears

completion in 2016.

The $490 million project consists of

installing an air-quality control system

(AQCS) per federal emissions regulatory

requirements to reduce nitrogen oxide and

sulfur dioxide emissions by up to 90 percent.

The project is also expected to generate sub-

stantial economic activity in the area. Some

supplies and services such as concrete and

gravel will be purchased locally and the esti-

mated $130 million payroll provided to

workers installing the AQCS will likely turn

over multiple times in the local communities,

all of which are small towns. Big Stone City,

which is located minutes from the Minnesota

border in the northern part of South Dakota,

has a population of fewer than 500 people.

Nearby Ortonville, Minn., has about 2,000

residents, while Milbank, S.D., the largest city

in the immediate area, boasts a population of

about 3,000.

Because the plant is located in such a

A three-year, $490 million environmentalupgrade at the Big Stone Plant nearMilbank, S.D., will bring hundreds of construction workers to the area. PHOTO: OTTER TAIL POWER CO.

Gotta room?Otter Tail creates website to link construction workers toavailable housingBY KRIS BEVILL


rural area, ample housing and other services are not readily

available to provide for the hundreds of new temporary resi-

dents. To alleviate potential housing issues, Otter Tail teamed

up with local communities to create a website —

www.BigStonePlantAQCS.com — devoted to connecting busi-

nesses, services providers and local residents with workers to

provide information related to housing opportunities and

other relevant services.

“We’ve worked with the Milbank, Big Stone City, and

Ortonville city offices and Chambers of Commerce, who have

provided content and will promote our site,” says Cris Oehler,

public relations director for Otter Tail Power. “Much of the rest

of the information will be provided by local people who have

services to offer, such as child care or laundry, or rental proper-

ties, such as homeowners with available sleeping rooms.”

In mid-March, about 60 listings were posted on the web-

site, offering a variety of rental options, including lake cabins,

campers, and camper/RV sites, as well as houses for sale in the

surrounding area. A public meeting set for March 19 at Big

Stone Plant was expected to increase awareness about the web-

site and boost the number of offerings on the site, according to

Oehler. More than 125 people attended the open house to learn

more about the project, the anticipated ebbs and flows of con-

struction crews and the opportunities to market housing and

services through the dedicated website.

To post a listing on the website, interested parties must fill

out a form, which will be reviewed for clarity and posted with-

in 48 hours of its receipt. Oehler says all housing options are

welcome, from one-room rentals to businesses willing to set up

portable housing or RV parks. “All of those things are possible,”

she says.

This is the first time Otter Tail has created a website specif-

ically to connect project workers with resources in a rural area.

The retrofit project is also the largest project of its kind Otter

Tail has ever been involved in. The AQCS project will cost about

three times as much as it cost to build the plant, which was built

in 1975 for $170 million.

In February, Illinois-based Graycor Industrial Contractors

Inc. was announced as the general work contractor for the proj-

ect, a job which carries the responsibility of purchasing more

than $20 million of equipment, erecting the AQCS, and hiring

and managing the workers and subcontractors to accomplish

the task. The contract represents almost 40 percent of the value

of the entire AQCS project and is the single largest contract of

the project, according to Otter Tail. PB

Kris Bevill



|ENERGY|


|ENERGY|

It’s no secret that water is a critical compo-

nent for hydraulic fracturing in western North

Dakota. In fact, oil activities in that part of the

state drank more than 5 billion gallons of water

last year, up 75 percent from 2011, according to

the state water commission, most of which was

used for fracking operations. The exact amount of

water used per well varies, and drilling companies

keep the specifics tightly held, but it is estimated

that each well requires between 2 million and 5

million gallons of water for use in fracturing fluid

to help force oil from within the rocks of the

Williston Basin.

About 40 percent of the water used for frack-

ing flows back to the well surface, but re-using that

water is made difficult due to its high saline con-

tent, according to research conducted by the

Energy & Environmental Research Center at the

University of North Dakota. Therefore, water used

for fracking is primarily fresh water, and flowback

water is treated before being disposed of in deep

injection wells.

Robert Hearne, associate professor at North

Dakota State University’s agribusiness and applied

economics department, recently supervised a

master’s thesis project by Qinqing Yin that

attempted to assess recycling strategies for frack

water and address the feasibility of recycling alter-

natives. They concluded that recycling flowback

water presents a great opportunity to lessen the

environmental impact of hydraulic fracturing and

to reduce operating costs for the drilling company,

Halliburton has developed a technology foron-site treatment and recycling of water usedin hydraulic fracturing operations. IMAGE: HALLIBURTON

Getting more fromfrack flowbackRecycling hydraulic fracturing water could significantly reduce costs, environmental impactBY KRIS BEVILL



|BY THE NUMBERS|Employment UNEMPLOYMENT RATE EMPLOYMENT

Dec-12 Dec-11 Dec-12 Dec-11North Dakota 3.20% 3.20% 382,696 375,430Bismarck MSA 3.3 3.2 59,414 60,349Fargo MSA 3.6 3.7 115,723 117,118Grand Forks MSA 4.1 4.5 50,865 52,245Dickinson MiSA 2 2 19,047 18,233Jamestown MiSA 4.1 3.5 9,311 10,251Minot MiSA 3.7 3.3 31,272 32,874Wahpeton MiSA 4.4 4.4 10,721 11,370Williston MiSA 0.9 0.9 37,820 28,054South Dakota 4.30% 4.50% 427,589 425,967Rapid City MSA 4.8 4.6 62,843 64,038Sioux Falls MSA 4 4.2 124,385 125,584Aberdeen MiSA 3.6 3.7 22,478 22,515Brookings MiSA 3.4 3.8 18,491 18,725Huron MiSA 4 3.5 9,565 9,586Mitchell MiSA 3.5 3.8 12,954 12,794Pierre MiSA 3.4 3.4 11,595 11,828Spearfish MiSA 4.8 4.9 11,843 12,602Vermillion MiSA 4 3.5 7,258 7,342Watertown MiSA 3.9 4.2 18,475 18,305Yankton MiSA 4.1 4.2 11,173 11,233Minnesota 5.40% 5.80% 2,813,749 2,796,124Minneapolis-St. Paul MSA 5.1 5.5 1,762,526 1,751,893Alexandria MiSA 4.8 5.2 20,081 19,778Bemidji MiSA 7.2 7.5 21,173 20,943Brainerd MiSA 8.6 8.9 42,242 43,117Fairmont MiSA 5 5.2 10,639 11,170Fergus Falls MiSA 6.1 6.2 28,995 29,064Hutchinson MiSA 6.8 7.3 17,983 18,522Marshall MiSA 4.2 4.6 14,723 14,741Red Wing MiSA 5.1 5.7 24,765 24,881Willmar MiSA 5.1 5.4 23,350 23,108Winona MiSA 4.6 5.1 28,442 28,098Worthington MiSA 3.6 4.3 1,183 11,324

Oil Production

| SPONSORED BY |

Dec-12Dec-11

184199

77.0988.57

AverageRig Count Price

Dec-12Dec-11

8,2246,471

Producing Wells

Sep87 Jun90 Mar93 Dec95 Sep98 May01 Feb04 Nov06 Aug09 May12 Feb15

14000

12000

10000

8000

6000

4000

2000

Compensation of employees: Professional, scienti�c, and technical services

Com

pens

atio

n, m

illio

ns o

f dol

lars

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

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to O

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Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014

7

6

5

4

3

2

1

0

Percent

E ective federal funds rate10-year treasury constant maturity rate

May01 Oct02 Feb04 Jul05 Nov06 Apr08 Aug09 Dec10 May12 Sep13

155

150

145

140

135

130

125

Professional, Scienti!c, & Technical Services, MN & ND

All e

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thou

sand

s

Dec-12Dec-11

768,853535,048

155182

AverageDaily

ProductionTotal

Permits

Exchange

Rates

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Compensation

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


Prairie Engineering, P.C. recognizes the importance of energy conservation and environmental friendly constructionpractices and continues to be a leader in designing energy efficient mechanical and electrical systems. Innovativeenergy design is incorporated in all types of design including business, institutional, industrial, and educationalfacilities. Prairie Engineering, P.C. utilizes modeling software to design efficient lighting systems, geothermal wellsystems and ventilation heat recovery systems. Prairie Engineering, P.C. maintains an active membership with theUS Green Building Council regularly attends energy conservation programs.

• Geothermal Well Field Systems

• Water to Water Heat Pump Systems

• Heat Pump Hybrid Systems

• Variable Flow Pumping Systems

• Domestic Water Heat Pump Preheat

• High Efficient Heating Systems

• Heat Recovery Ventilation Systems

• Energy Efficient Lighting Systems

Randy J. Axvig, P.E., LEED AP, Mechanical EngineerJeremy J. Butman, P.E. Electrical Engineer619 Riverwood Drive, Suite 205Bismarck, ND 58504-4304Phone: (701) [email protected]

Jason L. Hunze, P.E. Electrical EngineerCaleb A. Bulow, P.E. Mechanical Engineer1905 17th Street SEMinot, ND 58701Phone: (701) [email protected]

www.prengr.net

particularly if on-site recycling is used. The

researchers also created a hypothetical system of

centralized water treatment plants that could be

used to treat water from multiple wells for re-

use. This option was also determined to be feasi-

ble, although not as economically effective as on-

site recycling, which offers the additional benefit

of reduced transportation of water to and from

the well site.

Due to the difficulties in obtaining actual

data related to water use per well and specific

information related to technologies that could

be used to treat and recycle water, Hearne says

the thesis should be considered a work in

progress. “This was a successful thesis, but it is

only the beginning of what I hope is more

research,” he says, adding that once the optimal

recycling technologies are identified further

analysis of the financial and environmental costs

of frack water re-use can be conducted.

“Basically, this is an invitation for the develop-

ment of new technologies,” he says.

In March, Halliburton announced that it

has commercialized technology to recycle frack

flowback water, which the company refers to as

produced water, and that it has completed more

than 60 wells and 280 fracturing stages in the

Permian and Bakken formations using this

approach. According to the company, the tech-

nology uses electricity to destabilize and coagu-

late contaminants in the water, which can then

be removed, allowing for the remaining water to

be re-used for fracking.

Walter Dale, Halliburton global strategic

business manager – water management solu-

tions, says the technology’s commercialization

represents a “paradigm shift” in the need for

fresh water for fracking operations. “This is no

longer a technical issue; this is a function of

logistics,” he said in a statement. “Customers can

now use produced water on unconventional

wells with no loss of well productivity at a net

economic benefit while minimizing the overall

environmental impact.”

Halliburton says its technology has been

proven to save up to $400,000 per well in the

Bakken. It is unclear how widespread the use of

the technology is at this time, however. When

asked, Dale said the company is “currently in dis-

cussions with multiple customers” on the uti-

lization of the technology. PB

Kris Bevill



|ENERGY|(continued from page 42)


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