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(continued from page 58) further processing. Naptha is used as a diluent for Canadian oil sands crude oil for pipeline transportation, as well as a chemical feedstock. It can also be further processed into gasoline. ATBs are used to blend with heavy fuel oil and can be processed into other petroleum-based products.
While the construction timeline remained in line with initial estimates, the cost of the project has exceeded early projections. Construction of the facility began last March, with a forecast for a 20-month construction timeframe and an initial cost estimate between $280 million and $300 million. The latest disclosures by MDU Resources and Calumet place the project price at approximately $350 million.
A variety of factors contributed to the higher construction costs, according to Rasmussen. “Primary factors included addi- tional site preparation and concrete work, along with revised federal regulations regarding the firewater system,” he says.
The state’s renowned inclement climate was also an issue for the project. “The work site experienced a harsh winter last year and periods of significant rain this summer,” Rasmussen says. “Working on an outside job site and dealing with weather challenges was the largest complexity we experienced. The second complexity was expected, and that was simply the logistics of getting all the necessary equipment in the right spot at the right time combined with the right technical personnel on hand to work on it.”
In mid-November, hiring was well under way and 72 of 85 positions had been filled, including all supervisory positions. New hires included local North Dakotans and former residents. “In addition to North Dakotans, we have hired professionals from all over the country,” Rasmussen says. “We have some professionals coming from other countries, as well.”

The plant will eventually provide 90 full-time jobs, he says.
State leaders and business owners are confident that Dakota Prairie Refining will have a positive impact on North Dakota’s economy, both inside and outside the refinery’s walls. Dickinson, and other towns in and around the Bakken, stand to benefit from the refinery as well. As construction comes to a close, about 750 craft workers were on the job site, generating business for local hotels, restaurants and shops.
“We are creating permanent, high-paying new jobs for professional people … this all contributes to tax base in the city and county,” Rasmussen says.
According to the North Dakota Petroleum Council, oil production contributes $50 million per day to North Dakota’s economy, with more than $11 million paid per day in state oil and gas taxes. The state’s now massive oil industry has spurred MDU Resources to consider building a second 20,000 b/d diesel refinery in the Bakken region, which Rasmussen says would essentially be a twin plant to Dakota Prairie Refining.
“We are working on selecting a site and some early permitting work has begun,” he says. “Should the project evaluation proceed successfully, we would anticipate starting construction in the spring of 2015.” PB
Marnie Lahtinen Contributing writer MarnieLahtinen@gmail.com

New-well oil production per rig
New-well oil production per rig
New-well gas production per rig
New-well gas production per rig
Monthly additions from one average rig
Indicated monthly change in oil production (Dec vs. Nov)
December-2013
Monthly
Indicated monthly change in gas production (Dec vs. Nov)

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The NDSU Research and Technology Park is changing the way you do business. We help entrepreneurs and start-ups in high-tech industries gain a foothold and move onto solid financial and operational ground. At the same time, we enable established companies to advance their research and development initiatives with:
• Technology innovation, commercialization, licensing and joint venture opportunities

• Entrepreneur Program - comprehensive business assistance, market research, educational events, mentoring and networking
• Financing, venture capital and strategic partnerships
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Developing and maintaining the infrastructure in the Dakotas and neighboring states at Morris Inc. requires planning and partnering with our associates.
Our manufacturing division utilizes a skilled team of craftsmen and women to build state of the art aggregate processing equipment to create clean high grade materials for use in construction where asphalt and concrete are required.
Morris is also a Terex Powerscreen dealer in the Dakotas providing sales and rentals of mobile crushing and screening equipment as well as recycling concrete and asphalt into new road building material.