Prairie Business October 2016

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October 2016 Powerful Partnership Coal, oil team up for carbon capture, reuse pg. 22 Building Boom Oil prompted development in Minot, N.D. pg. 28 Inside IT Experts share insights pg. 32

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4 Prairie Business October 2016 |INSIDE| October 2016 VOL 17 ISSUE 10 FEATURES DEPARTMENTS
Editor's Note
6
Computers, Community and a Makeover
Benefits
8
Health Savings Accounts Becoming Increasingly Popular
Workforce
Opportunities
Investment
Critical for Marketable Products
Prairie News 19 Prairie People
Business Insider ‘Research Renaissance’ Sanford doctor stays active in patient care and clinical trials
Construction Corner Expanding to Accommodate NISC adds to Mandan, N.D., campus with fitness center, dining hall and more
By the Numbers 40 Federal Drilling Data Next Month The November issue of Prairie Business will cover health care and wellness, as well as higher education. It will also mark the launch of the magazine’s redesign. ON THE COVER: John Harju is the vice president for strategic partnerships at the University of North Dakota’s Energy & Environmental Research Center in Grand Forks. IMAGE: ERIC HYLDEN, FORUM NEWS SERVICE 22 Optimized Oil Recovery Research partnership recycles carbon for use in oilfields Follow us on Twitter https://twitter.com/PrairieBiz Check us out on Facebook https://www.facebook.com/PrairieBusiness
10
STEM
12
R&D
14
20
34
38
32 Break IT Down IT professionals talk about the five major components of their job 28 Transforming a City Minot, N.D., built up its infrastructure during the oil boom
Employees working in Eide Bailly’s technology consulting division collaborate to provide a wide range of IT services for businesses. Turn to page 32 for advice and insights from IT professionals. IMAGE: EIDE BAILLY

lgibson@prairiebusinessmagazine.com

Chemistry, Computers, Community and a Makeover

While writing Optimized Oil Recovery — the research feature starting on page 22 — I got a chance to channel what’s left of my high school chemistry knowledge and practice some basic equations. Some hydrogen, some carbon monoxide, some oxygen — somehow, we get water and carbon dioxide.

The article simplifies incredibly complex research that aims to use carbon dioxide emissions from coal-fired power plants to draw more oil from existing wells, facilitating reuse and eventually subsurface storage of the greenhouse gas. The work is being done by researchers at the University of North Dakota’s Energy & Environmental Research Center, along with their partners in the coal and oil industries. It’s exciting stuff. The EERC has been working on projects like this since long before regulations were in place to control and reduce greenhouse gas emissions. Every time I write about EERC research, I learn something interesting. Read the full story and you likely will, too.

The information technology feature shares expert insights and advice on the most important aspects of IT professionals’ job duties, separated into easy-to-read categories. You’ll find it on page 32.

This month also features another Community Profile. This time, we go inside Minot, N.D., a town that boomed when oil was in charge, but still has some ongoing development despite the downturn. The airport underwent significant enhancements, the county jail is in the process of a large expansion and there’s more to come. Read all about it on page 28.

Business Insider features Dr. Steven Powell, a physician scientist with Sanford Health in Sioux Falls, S.D. He sees patients but also is dedicated to his role as a medical researcher. He is the perfect candidate for this month’s Q&A because it seems most of the research successes that come out of Sanford have his name on them somewhere. See what he has to say about his career, starting on page 20.

Construction Corner takes a peek inside an expansion of the National Information Solutions Cooperative campus in Mandan, N.D. See what the company has added for its employees, starting on page 34.

Finally, visit www.prairiebusinessmagazine.com to nominate someone for 40 Under 40, Prairie Business’ annual list of impressive young professionals. Nominations are open through Oct. 14. And visit our website again Nov. 1 to catch the November digital edition as soon as it drops. It’s the first edition of our brand new redesign, complete with a new logo, overall look and content staple sections. We’re eager to unveil our new style. I think you’ll love it as much as we do.

6 Prairie Business October 2016 |EDITOR’S NOTE|

KORRIE WENZEL, Publisher

STACI LORD, Ad Director

LISA GIBSON, Editor

KAYLA PRASEK, Staff Writer

BETH BOHLMAN, Circulation Manager

KRIS WOLFF, Layout Design, Ad Design

Account Managers

NICHOLE ERTMAN

800. 477.6572 ext. 1162 nertman@prairiebusinessmagazine.com

GARRETT RICHIE

248.202.8955 grichie@prairiebusinessmagazine.com

Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203.

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Health Savings Accounts Becoming Increasingly Popular

Here in the Dakotas and western Minnesota, we have entered the fall season. Employers all over the region are preparing their group benefits plan offerings for open enrollment. It’s a familiar scene here, like combines and tractors in the fields. Fall open enrollments have become a big part of our culture in this region.

It’s important for employers to be well aware of the trends emerging in the benefits industry. Some major differences exist between benefits plans offered by larger employers (more than 50 employees) versus those offered by smaller employers (fewer than 50 employees).

While there are differences, there are also multiple effective benefits strategies that apply to all employers. One we’ll examine here is the Health Savings Account. Whether now or in 2017, employers should take the time to understand and then make the decision to offer a consumer-driven HSA with a qualified health plan to their employees. Across our region, people continue to ask, and at times demand, access to the kinds of tools that allow them to become increasingly involved in their own health care decisions and, ideally, wiser consumers of health-related services. They want more choices. They need more education.

Many employers and employees alike want to understand how the health care system works, so they can determine the best ways to engage with it. A consumer-driven HSA is the best place to start.

According to the 2016 Kaiser Family Foundation’s Employer Health Benefits Survey, 7 percent of employers who offered health insurance to their employees in 2006 provided them with a consumer-driven plan. In 2010, that percentage jumped to 15. Currently, that figure is at 29 percent — nearly one in three employers — regardless of size. The

vast majority of these plans are HSAs. In 10 short years, this type of health plan has grown in popularity by more than 22 percent.

A 2016 study by Denevir, an investment advising and consultant firm, reveals that more than 18.2 million people currently are using HSAs. That number is 25 percent higher than in the previous year. To appreciate the size and scope of that number, consider that the combined population of North Dakota, South Dakota, Minnesota, Montana, Iowa and Nebraska is just more than 13 million. It’s a big number and getting bigger every year.

For employers who sponsor health and benefits plans in the region, a consumer-driven plan with an HSA is quickly becoming a must have. In fact, Fargo’s own Discovery Benefits is actually one of the nation’s leading providers of HSAs — and they’re right here in our backyard.

Employers should also consider including outcomes-based wellness, telephonic or virtual physician visits, working spouse provisions and new pharmacy tier spreads.

Employers should be interested in learning more about how to design these kinds of programs and offerings. Properly implemented, they are all helping to control benefits costs for many employers in this region. Seek the advice and counsel of your benefits advisor — they should be prepared to help you with both the education and implementation of these strategies. PB

|BENEFITS| 8 Prairie Business October 2016

Create STEM Opportunities

In the past few years, North Dakota’s dynamic economy has spurred vigorous population growth, an employment surge and increasingly higher wages. Traditional career opportunities ranging from energy production, manufacturing and healthcare combined with emerging markets within STEM professions (science, technology, engineering and math) are driving the state to new heights.

STEM jobs currently represent just more than 3.3 percent of all jobs in our state, but it is projected that North Dakota will need to fill more than 5,000 STEM jobs in the next five years. The growing demand for skilled workers leaves an untapped opportunity to expand STEM employment and break down traditional barriers.

Mortenson is building partnerships with local schools, universities, trade associations and nonprofits to bridge the STEM skills gap and encourage today’s youth to consider jobs in construction or the trades.

Mortenson facilitates STEM mentorships for students, including an internship for a student from Sheyenne High School in West Fargo, N.D., this fall. Over the course of a semester, the STEM intern will gain relevant work experience through participation in the new $16.5 million West Fargo Public Schools Hockey Arena construction project. The intern will be given the opportunity to employ professional-level practice and gain continuous improvement by working alongside a mentor through all phases of the project.

In April 2016, Mortenson joined an impressive list of North Dakota businesses in sponsoring Expanding Horizons, a one-day conference that provides young women in grades 7 through 9 more than 40 hands-on workshop sessions each year at various locations throughout the Fargo-Moorhead

area. Local professionals led the workshops and provided students opportunities to meet and form personal connections with women working in traditionally male occupations.

Opportunities for North Dakota businesses interested in advancing and developing a strong STEM workforce are abundant. Here are a few ideas:

 Consider offering academic scholarships that encourage high school, undergraduate or graduate students to pursue coursework in preparation for a career in a STEM industry.

 Pair company leaders with students of all ages interested in STEM careers for one-on-one mentorship. This is rewarding for all involved. An hour-long conversation over coffee could spark a student’s pursuit of a STEM career.

 For a practical experience, support a high school or college internship. Whether for a summer or semester, students can work side-by-side with industry leaders to jumpstart their career by developing the skill sets needed for the STEM workforce.

 Job shadowing and career counseling sessions might provide the insight needed for students to choose a pathway to STEM. Allowing students to observe STEM leaders in a professional setting can be an inspiration.

 Last, consider volunteering time. Offer your talents as a classroom speaker, student mentor, panelist or conference speaker.

These are just a few examples of real steps the business community can take to help bridge the STEM gap and build a strong North Dakota workforce. PB

10 Prairie Business October 2016
|WORKFORCE|
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R&D Critical for Marketable Products

Research, technology and economic development are broad terms holding a variety of meanings for different people. Competition is fierce to commercialize the next big technology or product and quickly capture market share. Research and development (R&D) are critical activities for moving a technology beyond the proof of concept stage and into a marketable commercial product.

The U.S. has always relied heavily on the innovation of its entrepreneurs and scientists to compete in the world marketplace, and our nation’s universities and colleges play a key role in the economy as innovation-generating institutions. There is a proven and strong relationship between an economy’s ability to convert its science and technology assets into economic development and its standard of living. Consequently, states have begun investing more in R&D activities to supplement recent declines in federal investment, with the recognition that universities and colleges are playing a growing role as engines of innovation, productivity and economic vitality.

North Dakota is fortunate to be home to major research universities and higher education institutions that attract and develop talent and spur innovation. Universities and colleges educate students for careers, train workers, prepare and support people for entrepreneurial pursuits and perform research and development with technology and business innovators. These science, technology and training activities are recognized throughout the world as a potent recipe for creating higher-value economic opportunities and higher-paying jobs.

The Red River Valley of eastern North Dakota and western Minnesota has emerged in recent years as a hotspot for scientific research and technology-based development. The state’s two major research institutions — North Dakota State University in Fargo and the University of North Dakota in Grand Forks — spearhead these initiatives. The North Dakota State College of Science in Wahpeton and Northland Community & Technical

College in northwest Minnesota, among other institutions, are leading the way in advanced skills and technology training in the Valley.

Emerging technologies related to cybersecurity, unmanned aerial systems (UAS), precision agriculture and big data all have important implications for this region. Not only do these technology sectors have tremendous promise independent of one another, but advances in any one generates opportunities in another. By becoming a national leader in UAS, economic opportunities in precision agriculture increase as innovators explore opportunities where these industries complement and converge with one another with the most obvious example being UAS to gather data and imagery for crop analysis. Likewise, opportunities are created at the crossroads of cybersecurity and big data.

The Red River Valley Research Corridor promotes and supports efforts contributing to the development of technologies and opportunities in these promising emerging industries by convening summits that bring together the “triple helix” of universities, business and economic development — most recently by organizing the 10th UAS Summit & Expo in August in Grand Forks. In January, the RRVRC will co-host the sixth Precision Ag Action Summit in Jamestown, N.D., to not only support farmers in utilizing technology to optimize their operations, but also explore the growth and opportunities in various industries, which include the role of UAS, big data, sensors, data management and more.

The current state of these developing industries shows promise for the future and it is important to sustain our momentum. There is much room for growth and development in these high-growth industries and you can be certain other states are taking significant measures to become leaders in these emerging fields as well. PB

12 Prairie Business October 2016
|INVESTMENT|

Amazing how something so tiny, can make for such big news.

Amazing how something so tiny, can make for such big news.

We at Prime Therapeutics have some pretty big news to share. We are working together with Walgreens to bring a completely new perspective to pharmacy bene t management. The combined scale of our new alliance, serving the members of over 25 Blue Cross and Blue Shield clients, brings with it industry leading cost advantages. It’s a strategic relationship that enhances the experience and improves the well-being of the people in our communities. All by building connections from the health plan to the pharmacy to bring the whole system together. And that is going to be a pretty big deal.

We at Prime Therapeutics have some pretty big news to share. We are working together with Walgreens to bring a completely new perspective to pharmacy bene t management. The combined scale of our new alliance, serving the members of over 25 Blue Cross and Blue Shield clients, brings with it industry leading cost advantages. It’s a strategic relationship that enhances the experience and improves the well-being of the people in our communities. All by building connections from the health plan to the pharmacy to bring the whole system together. And that is going to be a pretty big deal.

Learn more at APowerfulAlliance.com or by calling 855-457-1422.

Learn more at APowerfulAlliance.com or by calling 855-457-1422.

Prime Therapeutics LLC is an independent company providing pharmacy bene t management services. © Prime Therapeutics LLC 08/16
Prime Therapeutics LLC is an independent company providing pharmacy bene t management services. © Prime Therapeutics LLC 08/16

GM potatoes focus of panel discussion at international ag bioscience event in Fargo

The potato industry is marked by slow adoption of new technologies and new varieties, said Craig Richael, director of research and development for Simplot Plant Sciences, to a crowd of about 40 people in a breakout session of the Agricultural Bioscience International Conference Sept. 20 at the FargoDome in Fargo. ABIC is a global event in its 20th year and this is the first time it’s been hosted in the U.S.

Adoption of new potato varieties and technologies might be slow because of some consumers’ wariness of genetically modified food and the fact that potatoes are a staple food and dietary requirement in many cultures. Whatever the reason, opportunities to genetically improve the potato are available and Simplot is taking advantage of them.

Simplot’s newest GM potato is called Innate 2 and Richael explained that it was engineered using only potato genes, both wild and cultivated, to possess four important traits:

• Reduced black spots from bruisies and low browning when peeled.

• Reduced potential for formation of acrylamide, a potential carcinogen.

• Reduction in browning resulting from sugar buildup in cold storage.

• Reduction in late blight.

Innate 2, not yet commercially available, is an improved version of Innate, which possessed just the first two of the four traits and has been on the market for two years, Richael said. Richael also talked about potential in potatoes for genome editing, which is the knockout or knock-in of certain genes. The process is difficult in potatoes, he said, and might be regulated in the U.S. and other countries in the future.

While these innovations hold promise, regulations prevent their full, accepted and widespread use, Richael said. “As one trying to develop and encourage a specialty crop … I think that the glass is mostly half empty,” he said, adding that regulators should “back off.”

Still, the advances are promising. “It is a great time to be in the genetics field, using all these tools. It’s a wonderful time to be involved in crop improvement.”

Also presenting in the ABIC breakout session was Neil Gudmestad, distinguished professor of plant pathology at North Dakota State University in Fargo, who discussed his department’s research into potato diseases. As a vegetatively propagated crop, the potato is extremely susceptible to diseases, he said.

“Soil-borne diseases are the most damaging in the United States and the most difficult to control. There is a need for us to understand what constitutes a healthy soil.” Microbes are good indicators of soil health, as they respond quickly to any changes in their environments, he said. Changes in those microbe communities can precede problems in the soil.

The research Gudmestad discussed is focused on reducing dependence on soil fumigation to control diseases through genome sequencing. Gudmestad’s team and its partners are studying the phytobiome — the plant itself, its environment and associated communities of organisms — of the potato plant. The project already has identified some soils in which potatoes are or are not affected by soil-borne disease.

But there’s more to do, he said.

“We’re not there yet. We are a long ways away from determining what constitutes a healthy soil.” PB

14 Prairie Business October 2016 |PRAIRIE NEWS|
lgibson@prairiebusinessmagazine.com
Richael More than 300 people from around the world attended the Agricultural Bioscience International Conference Sept. 19 to 21 at the Fargodome in Fargo. PHOTO: SCOTT THUEN, ADFARM Gudmestad

Better care. Lower costs.

Altru & You with Medica

Employers and employees alike are excited about Altru & You with Medica. No wonder. Medica, a leading health plan, has teamed up with Altru Health System, a leading health provider, to deliver an innovative new model for health care in Minnesota and North Dakota. Now your provider and your health plan are working together to provide high-quality care at a lower cost. Employees get the care they need – when they need it – while employers enjoy the benefits of lower costs. Everybody wins. It’s one more reason why Medica is already the plan of choice for tens of thousands of people. Talk with your broker, call Medica at 800-371-1613, or visit us at medica.com/altruforemployers.

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UND launches UAS business class

It was the first university to offer a degree in unmanned aircraft systems operations, so it only makes sense that the University of North Dakota in Grand Forks also offers the first UAS business course, says Matt Dunlevy, instructor of UND’s UAS in Business class and president and CEO of SkySkopes, a Grand Forks UAS company.

The course teaches the business side of the unmanned aerial systems industry, while also preparing students to take the Federal Aviation Administration’s Part 107 test to fly commercial unmanned aircraft. “Business opportunities are the most important part of the UAS industry,” Dunlevy says.

Dunlevy’s co-instructor is Rick Thomas, program manager for Northrop Grumman in Grand Forks. Dunlevy says the class style depends on who is teaching that day — Thomas “commands the rapt attention of the students,” while Dunlevy’s style is a bit more interactive and laid back. They discuss current events in the UAS world, show videos of what to do and what not to do, and usually have guest speakers from different parts of the industry.

The course is open to any level of student in any major who is enrolled at UND. While some of the students in this fall semester class are UAS majors, others are marketing, business or entrepreneurship

majors. “It’s definitely an interdisciplinary course,” Dunlevy says. The course is also separate from the UAS department, and is listed in the entrepreneurship course catalog.

The course is split into four phases, starting with training and memorization of the Part 107 handbook so students can take that test to fly commercially. They will also view UASs in action, and will eventually fly the aircrafts themselves. Finally, they will start a UAS business, create a business plan and research commercial UAS businesses. That project will wrap up with a “shark tank,” in which students will present their businesses to a panel of expert judges, Dunlevy says.

While the class is currently only scheduled for this fall semester, Dunlevy says it’s “off to a good start,” and is hopeful it will be offered every semester. “It’s always great to see UND taking the next step in an industry where they can be a leader,” Dunlevy says. PB

701.780.1187

16 Prairie Business October 2016
|PRAIRIE NEWS|
A DJI Matrice 600 drone outfitted with a special mapping system that uses lasers to measure and record its environment sits ready for a Sept. 21 flight demonstration while a University of North Dakota class gathers behind it. IMAGE: BRANDI JEWETT, FORUM NEWS SERVICE SkySkopes drone pilot Andrew Schill explains a flight procedure to a class of UND students before a drone takes flight on the campus Sept. 21. IMAGE: BRANDI JEWETT, FORUM NEWS SERVICE

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CELEBRATING

Three North Dakota State University research projects have received a combined total of $250,000 in funding from the Sanford Health NDSU Collaborative Seed Grant program, a broad collaboration that partners researchers from both parties to study human nutrition, weight management and other basic health topics.

Of seven project proposals this year, the three winners are:

● Protein Intake and Muscular Health with Aging: Effects of Increased Physical Activity

Health nutrition and exercise sciences professors Kyle Hackney, Sherri Stastny, Wonwoo Byun and Shannon David will explore the interactions of nutrition, physical activity and exercise, and the progressive loss of muscle mass with aging. Findings will help provide recommendations for food intake or dietary supplementation.

● Downregulation of D5D to Exploit Anti-Cancer Effect of ω-6 Diet Supplementation for Colon Cancer Treatment

Steven Qian, associate professor of pharmaceutical sciences, will examine supplements used to enhance results of chemotherapy in colon cancer treatment. The outcome will help optimize the effectiveness of colon cancer therapies and ensure safer outcomes for cancer patients.

● The Effect of Nutrient Intake and Probiotic Administration on Weight and Glucoregulation Before and After Bariatric Surgery: A Combined Human and Murine Approach

Kristine Steffen, associate professor of pharmaceutical sciences, Amanda Brooks, assistant professor of pharmaceutical sciences, and Glenn Dorsam, associate professor of veterinary and microbiology sciences, will compare gut bacteria of patients who will undergo weight loss surgery to patients who have already had the surgery. Samples will be further examined to study mechanisms of post-surgical weight loss and diabetes resolution.

This is the second round of funding through the Sanford Health NDSU Collaborative Seed Grant, which was signed in December 2014. The third and final round will be awarded in 2019.

“The Seed Grant program has been beneficial to NDSU in several ways,” says Jolynne Tschetter, executive director for corporate

Sanford awards

to NDSU research through seed grant

and foundation research relations at NDSU. “In addition to funding projects in individual labs, the program has led to the development of research collaborations between NDSU faculty and Sanford researchers and clinicians, funding for graduate and undergraduate assistants in three colleges (College of Science and Mathematics, the College of Health Professions and the College of Human Development and Education) and is broadening our knowledge and understanding of the type of research being done at Sanford both in Fargo and in Sioux Falls. Long term, these collaborations have the ability to strengthen each institution and lead to collaborative applications for federal research funding.”

Stephen Herrmann, director of development and training for Profile by Sanford, says, “The seed grant program also provides a unique opportunity for a public-private partnership. One of the goals was to continue to grow the collaboration between institutions, and this funding provides an opportunity to facilitate the unique and collective talents of individuals from both institutions.”

Project proposals submitted for funding are reviewed for scientific merit and how well they meet the scope of the program, Tschetter explains. Each proposal is reviewed by personnel at both NDSU and Sanford. For this round of funding, each proposal was reviewed by six people — three from NDSU and three from Sanford. Final funding decisions were made by a panel of four — two from Sanford and two from NDSU.

“This helps generate some unique collaborations,” Herrmann says of the seed grant program. “Over time, this seed funding is intended to stimulate more research and can provide pilot data to help obtain funding from other sources. Beyond the research, Sanford has a strategic focus that research conducted through Sanford should have the potential to impact patient care and improve health in the communities that we serve.” PB

18 Prairie Business October 2016
lgibson@prairiebusinessmagazine.com
$250,000

Border States Electric names strategy enablement director

James Sipe has been promoted to strategy enablement director of Border States Electric, headquartered in Fargo.

Sipe joined Shealy Electrical Wholesalers in 2011 and has served as vice president of operations since June 2013. Sipe joined BSE Aug. 1 when Shealy Electrical Wholesalers was acquired by BSE.

NDSCS names Grindberg vice president of workforce affairs

Tony Grindberg has been named vice president of workforce affairs at the North Dakota State College of Science in Wahpeton. Grindberg, who led the development and launched the initial operations of NDSCS-Fargo, will oversee the restructuring of the college’s Division of Workforce Development and expansion efforts in Cass County and the surrounding region.

A Fargo city commissioner, Grindberg represented south Fargo in the North Dakota Legislature for 22 years before he decided not to seek another term in 2014. He was head of the NDSU Technology and Research Park and also worked for an aerospace company. He’s been consulting for businesses since January 2016.

Grindberg earned his Associate of Science from NDSCS and Bachelor of Science from Minnesota State University Moorhead.

Sioux Falls Development Foundation names workforce development VP

Lon Clemensen has accepted the position of vice president of workforce development at the Sioux Falls (S.D.) Development Foundation.

Clemensen, vice president for program support services at LifeScape Sioux Falls, has more than 30 years of human resource management experience, including 16 years with Wells Fargo & Co. in Sioux Falls, where he directed all human resource functions for a four-state region. At LifeScape, Clemensen’s areas of responsibility expanded from human resources management, budgeting and retention strategies to include volunteer coordination, case management and quality assurance programs.

Starion Financial names Staller chief banking officer

Starion Financial in Fargo has named Dan Staller its chief banking officer, a new position with oversight of every aspect of customer service.

In 2008, Staller joined Starion as senior vice president and business banking officer, and was named Fargo market president in 2012. Staller earned a bachelor’s degree in finance from Minnesota State University Moorhead and is a graduate of the Graduate School of Banking at the University of Wisconsin – Madison.

Cornerstone Bank promotes Carlson

Rob Carlson, vice president/mortgage banking, is now overseeing Cornerstone Bank’s North Dakota home mortgage consultants in Fargo. Carlson joined the bank in August 2013 as vice president/mortgage banking. His position changed to vice president/mortgage operations in January 2015 to be the primary liaison between the originating team and the processing team as well as to improve the process between operations and underwriting.

Washburn Area EDA names economic development director

Tana Waldren Larsen has been named economic development and marketing director for the Washburn Area Economic Development Association in Washburn, N.D.

She will work with the WAEDA Board, city and other community groups in providing guidance to individuals and companies to establish, relocate or expand their businesses in or near Washburn. Marketing and promoting the community, recreation and businesses will also be part of her role.

Waldren Larsen will also provide assistance in the planning and coordination of community development projects, assisting business and residential applicants with available local, state and federal economic development programs, and providing research for community-sponsored projects.

19 www.prairiebusinessmagazine.com
James Sipe Tony Grindberg Dan Staller Rob Carlson Tana Waldren Larsen
|PRAIRIE PEOPLE|
Lon Clemensen

‘Research Renaissance’

Q A Q A

When did you know you wanted to be a doctor and what steps did you take right away to make it happen?

During my undergraduate degree in biomedical engineering at Arizona State University, I started work in a laboratory where we identified and developed anti-cancer drugs from natural sources like tree bark, sea sponges, microbes and other flora and fauna. As part of this research, I learned about the clinical trials being done to evaluate these compounds in patients with cancer. This clinical correlation made me interested in being a physician. I wanted to bridge the gap from the lab to the clinic. It was amazing to see the impact of these treatments we developed in the lab to the patient. As a result, I made sure to complete the necessary curriculum to go to medical school. I also continued my work in the lab with a focus on developing better treatments for cancer patients.

Are you more passionate about any certain aspects of health care than others?

I like the combination of patient care and research. This is why I am a clinical trials specialist. With additional training in clinical trials and a background in the lab, I am able to bring the most innovative therapies to my patients through clinical trials. It is very exciting to be able to offer a patient a treatment that may revolutionize cancer care. This is where we are at right now with cancer. We are able to understand the genetic code of the disease and tailor some of our treatment to target these changes.

I think one of the most exciting recent advances has been in cancer immunotherapy. Through clinical trials, we have been able to offer our patients these exciting new treatments before they are approved by the FDA for general use. It is a new era for cancer care, and it is great to be part of the driving force.

Q A Q A Q A

What’s your favorite part of your job?

I enjoy both the patient interaction and the ability to do research. The ability to take what you have learned in the clinic and go back to the lab to try and solve clinical problems is my favorite part of the job. It allows you to think ahead and try to improve upon the therapies we already have and bring forward others that show promise. We are sitting on a mountain of knowledge when it comes to cancer. Now we are finally at a time that we can act on this knowledge.

You’re involved in all kinds of research for Sanford. Do you have a specialized area of expertise?

Clinically, my major focus is on head and neck cancers. I serve on the National Cancer Institute Steering Committee for Head and Neck Cancers and am an active researcher in this area. My major areas of expertise are the area of genomics and immunotherapy in this disease. I actively write and collaborate on clinical trials investigating new treatments and biomarkers (laboratory tests) in head and neck cancers.

What has been your favorite research project so far and why?

Currently, we are enrolling in a clinical trial evaluating a new immunotherapy in combination with chemotherapy and radiation for head and neck cancer. This trial is a prime example of what I do. We spent about a year in the lab evaluating the concept of adding immunotherapy to standard treatment to improve cure rates in head and neck cancer. Our results were very positive in our preclinical mouse studies, so we decided to move this to the clinic.

Throughout this process, we worked with our clinical trials team and the FDA and now have a clinical trial evaluating this treatment in patients with advanced head and neck cancer. Our hope is that this leads to a new curative intent therapy with fewer side effects for patients with head and neck cancer. The trial is one of the first of its kind and will hopefully lead to advances in treating head and neck cancer and other cancers. It has been

20 Prairie Business October 2016 |BUSINESS INSIDER|
Steven Powell, M.D., is a physician with Sanford Health in Sioux Falls, S.D., who also spends a great deal of time leading medical research for Sanford and its partners. His passion is cancer care and he sees promise in new treatments as they evolve with new discoveries about the disease. IMAGE: SANFORD HEALTH

phenomenal to be able to grow this from the lab into a treatment that helps patients.

Where do you see yourself in your career in 10 years?

Despite being involved in cancer research for more than 10 years, I’m still early in my career and considered a “young investigator.” My hope is to grow into a senior investigator and help others grow in the same way I have.

In order to advance cancer care through research, you must have experts in each area of cancer, like breast cancer, colon cancer, lung cancer and so on. At Sanford, we have been trying to recruit physicians who are interested in this approach and want to help advance the field in their areas of interest. I’m hopeful that with my experience, I can help mentor others to be leaders in their fields. At the end of the day, I would like to help establish a program throughout this region that provides exceptional cancer care with cutting-edge treatments driven by research.

A Q A

What advancements in health care do you think we’ll see in the next 10 years?

Mainly, I can speak for advancements in cancer care. As previously mentioned, we have amassed a huge amount of information on the nature of cancer, all the way down to the genetic level. We are at a major turning point in cancer research right now where we have the capability to act on this information. I expect there to be major advances in immunotherapy and targeted therapies. We will see growth in precision medicine and the ability to tailor treatments to an individual person’s cancer, rather than just a cancer type. The number of treatments being developed right now is astonishing. We are going to learn how to use these more effectively and efficiently.

My hope is that we can catch more cancers earlier on and cure them before they become too advanced. Even when they cannot be cured, my hope is that they can be controlled for longer time while still retaining a good quality of life for patients. This is only possible through cancer research and clinical trials. Looking forward, I’m excited to be part of this cancer research renaissance. PB

21 www.prairiebusinessmagazine.com Excel in your career by earning a master’s degree. Our graduate programs offer convenient and flexible schedules on campus and online. Contact the Graduate School at 701-858-3250 or 800-777-0750, or go to MinotStateU.edu/graduate for specific information. Complete the graduate school application at MinotStateU.edu/graduate. We invite you to visit with an advisor by calling 701-858-3413 or 800-777-0750, ext. 3413. GROWTH in your career. Be seen. Be heard. Continue learning for
Q

Optimized Oil Recovery

A partnership of research and industry is developing a strategy to use the carbon dioxide from coal power emissions to recover more oil from North Dakota’s oilfields without drilling new wells

|RESEARCH| 22 Prairie Business October 2016
Nate Fiala (left), research engineer, and James Tibbetts, research scientist, work on a solvent-based carbon dioxide capture system in a lab at the University of North Dakota’s Energy & Environmental Research Center in Grand Forks. IMAGE: EERC

Carbon dioxide is one of those “funny molecules” that can change the properties of oil in the ground and facilitate its flow to extraction wells, says Charles Gorecki, director of subsurface research and development at the University of North Dakota’s Energy & Environmental Research Center in Grand Forks.

Those property-altering components of CO2 have been used in enhanced oil recovery projects on small and demonstration scales — and even one Montana-based commercial-scale project — in our region for years. Progress on the concept has been made through the Plains CO2 Reduction Partnership (PCOR), funded by the U.S. Department of Energy and more than 100 of the EERC’s public and private program partners. Traditionally, CO2 used in PCOR injection projects comes from natural gas processing, but the partnership — including the EERC, the Lignite Energy Council, the North Dakota Petroleum Council, and many others — now is working to make coal-fired power plants the next supplier. That would reduce coal plant stack emissions while aiding in extracting up to 20 percent more of the oil that sits beneath the ground in western North Dakota.

In our region, and particularly in North Dakota, the oil and gas industry is one of the main users of the predominantly coal-fired power, says John Harju, vice president for strategic partnerships for the EERC. “You’ve got coal-fired energy serving this extractive industry of oil and gas,” he says. “Geologically, we have the opportunity of these prolific oil and gas basins to sequester carbon dioxide.”

It works like this: The CO2 is captured from the coal-fired power plants, separated from the other components in the stack and compressed into what’s called supercritical fluid. Supercritical CO2 is then moved to the oilfields and pumped into reservoirs to allow its oil-altering properties to get to work on enhancing the flow to the existing wells. That increases the amount of oil recovered, without drilling new wells, and, over time, sequesters that carbon in the subsurface.

Transforming the CO2 into supercritical fluid allows large masses of CO2 to be moved in relatively small volumes, Harju says. While some will come back out with the pumped oil, it is injected back in and reused repeatedly until it stays stored underground. “All of the CO2 we bring to the field is ultimately stored in the reservoir,” he says. “It’s just that we might use it three, four, five, six times.”

From the Source

Coal-fired power plants produce up to 30 million tons of CO2 each per year,

23 www.prairiebusinessmagazine.com
|RESEARCH|
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Researchers in the Plains CO2 Reduction Partnership are analyzing the use of coal-fired CO2 emissions for enhanced oil recovery in North Dakota’s oilfields. IMAGE: EERC
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Harju says, making them a great source for the enhanced oil recovery project.

“At the Lignite Energy Council, one of our goals is to look at how we can reduce the carbon dioxide from making use of lignite,” says Mike Jones, vice president of research and development for the Lignite Energy Council. “We see this as an opportunity to produce a low-cost electricity source and, at the same time, have a source of carbon dioxide that can be enhancing the output from the oilfields in western North Dakota.”

Carbon capture is generally done with solvents, a liquid applied to the emissions stream that easily absorbs CO2 only, leaving behind other elements such as nitrogen and water vapor, Harju says. That solvent containing CO2 is then heated to drive off the CO2 , which is then compressed and ready for use. Heating the solvent consumes large amounts of energy so some research will focus on how to transfer energy from the existing power plant boilers or how to produce a solvent that is already hot enough to liberate the CO2 , Harju says.

“The last thing we want to do is expend a bunch of energy incorporating carbon capture because then you kind of defeat the purpose,” says Mike Holmes, director of energy systems development for the EERC. The whole idea is to capture, compress and inject the CO2 in a manner optimized for cost, efficiency and effectiveness, he says.

The EERC and the Lignite Energy Council also are researching a process called the Allam Cycle, which gasifies coal instead of combusting it. That produces a syngas of carbon monoxide and hydrogen that can be burned in oxygen at high pressures to create a pure stream of water and CO2, Jones says. The syngas also can be used to turn the power-production turbines, instead of using steam released from combusting coal.

If coal emissions can be lowered and oil production enhanced in one project at a reasonable cost, both industries will have responded to changing environmental regulations while allowing for more business activity in the western part of North Dakota, Jones adds. “A lot more oil could be produced and all the economic benefits that come with that,” he says. “As the Lignite Energy Council, of course we’re interested in what we can find that allows lignite to continue to participate as a key opportunity for energy in this state and region.”

Scaling Up

Next, the process needs to be built out to commercial scale so it can make an impact on entire industries and the country. “These are very, very big capture systems that we’re building out,” Harju says. “It’s different than applying it on a small scale.”

Harju says building to a large scale means figuring out a few things: the appropriate size for modules to replicate the small-scale research; what other elements — such as particulate matter — might exist in coal-fired emissions that also will need to be removed, separately from the CO2 ; and what exactly happens to the CO2 within the reservoirs.

The total value of the work behind all PCOR projects thus far — including those with and without injection components — is well in excess of

24 Prairie Business October 2016
|RESEARCH|
Workers handle equipment at a carbon sequestration field demonstration site for the EERC and its research partners. IMAGE: EERC James Tibbetts, a research scientist with the EERC in Grand Forks, operates a solvent-based carbon dioxide capture system. IMAGE: EERC

$100 million and in the coming years will be in the billions of dollars, Harju says. PCOR began in 2003 and is scheduled to wrap up at the end of 2018. It’s initial goal was to store 1 million tons of CO2, but it has succeeded in storing triple that, Gorecki says. The partnership is one of seven across the country started by the DOE, six of which remain.

PCOR is an enormous project that spans North Dakota, South Dakota, Montana, Wyoming, Iowa, Minnesota, Wisconsin, Nebraska, Missouri and the Canadian provinces of Manitoba, British Columbia, Alberta and Saskatchewan. But “North Dakota represents one of the best opportunities to use carbon dioxide for enhanced oil recovery and also to store large volumes because we have this great juxtaposition of coal resources and coal-powered facilities that are all close to the oil and gas operations,” Gorecki says. “We have industries — both oil and gas and the power industry — that are engaged and want to make meaningful strides.” Despite low oil prices, oil extraction will continue to use an immense amount of power, doubling or tripling current use, Gorecki says, adding the current downturn will not last forever.

“Great partners make great projects and we are just absolutely blessed with many, many, many great partners in this work,” Harju says. “Without all of them collectively working toward this common goal, we wouldn’t be able to make the kind of progress we’re making.” PB

26 Prairie Business October 2016
|RESEARCH|
Nate Fiala, research engineer with the EERC in Grand Forks, works on a lab-scale solvent-based carbon capture system. IMAGE: EERC The EERC has partnered with the coal, gas and oil industries to reuse carbon dioxide for enhanced oil recovery. The Plains CO2 Reduction Partnership (PCOR) spans several states and Canadian provinces. IMAGE: EERC

Transforming a City

When the oil boom hit North Dakota, it opened a new chapter for the city of Minot. The city has seen incredible growth, which has led to increased development and the completion of much-needed infrastructure projects.

John MacMartin, president of the Minot Area Chamber of Commerce, says Minot is a wholesale/retail hub, with energy and value-added agriculture the other two major industries. The Minot Air Force Base has also been an economic driver since the 1960s. Additionally, Trinity Health is the region’s major employer.

Both MacMartin and Stephanie Hoffart, president and CEO of the Minot Area Development Corp., highlight Minot’s many infrastructural projects as the city’s greatest successes over the past couple years. “The public infrastructure we’ve seen go in has really been a success,” MacMartin says. “The crown jewel is the completion of our new airport, and the downtown infrastructure projects are an ongoing process. That project has allowed us to get rid of 100-year-old infrastructure in parts of downtown.” A new terminal, airport parking and apron were recently completed at the Minot International Airport for $85 million.

Among Minot’s investments is $8 million for its distribution hub, the Port of North Dakota, which will strengthen the city’s competitive advantage and enhance the city as a strategic location for businesses, with access to two railroads and three U.S. highways, Hoffart says. AGT

Foods, one of the city’s major employers and the anchor tenant at the Port of North Dakota, completed a $30 million expansion and is just beginning another expansion. Ward County has also seen a $37 million jail expansion and the completion of a $20 million administrative building. The city was also awarded $74.3 million from the Department of Housing and Urban Development’s National Disaster Resilience Competition.

While these projects have helped transform Minot, overall development is down this year, with a small number of commercial projects in construction and zero apartments, according to MacMartin. “Even though we are down compared to last year, there are still exciting large projects in Minot that will greatly influence the future direction of Minot,” Hoffart says.

Energy

Since many of the large infrastructure projects are the result of Minot’s growth spurred by the oil boom, the city is currently feeling the downturn in the industry. “We certainly have seen and can feel the slowdown in the decrease of building permits and decrease in the number of passengers at the airport,” MacMartin says. “At the same time, the number of passenger boardings is still above boardings in 2008 to 2010.”

28 Prairie Business October 2016
In Minot, N.D., the oil boom prompted unprecedented growth, leading to an overhaul of the city’s infrastructure and a building boom. Development has slowed with the oil downturn, but has not stopped completely
|COMMUNITY PROFILE|
ABOVE: Minot, N.D., is home to the Minot Air Force Base, which had an economic impact of $597 million on the city in 2015. IMAGE: MINOT AREA DEVELOPMENT CORP.
29 www.prairiebusinessmagazine.com |MINOT, N.D.|
MINOT
BELOW: Thanks to Minot’s growth, the city is halfway through a threeyear project to replace 100-yearold underground infrastructure in its downtown area. IMAGE: MINOT AREA DEVELOPMENT CORP.

Hoffart says that while the downturn has affected Minot, it hasn’t had the impact it has had on the western part of North Dakota. “Over the years, Minot’s economy has become more diversified, which has made us stronger during times of downturn. Diversification is something the Minot Area Development Corp. is committed to continuing to help make Minot’s economy more stable and resilient.” Hoffart says Minot serves as a regional hub for western North Dakota and Saskatchewan, which is another key aspect of how Minot’s economy is staying strong during the oil downturn.

MacMartin says the city ended up with “far more oil service companies than actual oil companies,” which has helped Minot avoid seeing a downturn in population as well. “The employees of those service companies have chosen to put down roots here,” which has led to the city recently opening a new elementary school and fire station with a second new fire station under construction, MacMartin says.

Workforce Development

According to Job Service North Dakota of Minot, there were about 1,200 job openings in the area in September 2016. But Hoffart says many efforts are ongoing to help fill those needs. “Minot State University and Minot Public Schools have top-notch programs that introduce superior and diverse professionals into Minot’s workforce each year,” Hoffart says. “As industries evolve, so do the programs at MSU and MPS to better serve Minot professionals.” Additionally, about 500 highly skilled servicemen and women from the Minot Air Force Base transition out of the military each year and join the civilian workforce. The MADC also provides

and promotes resources for job seekers and employers, including Job Service ND, the North Dakota Department of Commerce’s Find the Good Life in North Dakota program and TeamND.

Agriculture

The downturn in the ag industry has affected Minot’s farmers, but they are maintaining and staying steady, Hoffart says. “Farmers know the ups and downs in the ag industry and even though prices are down, farmers in the Minot area are holding on.” MacMartin says the area’s farmers have had less disposable income for consumer purchases, yet “in talking with implement dealers, many had their best Decembers ever in 2015 during the last five days of the year.” Hoffart says the MADC is “looking to get more businesses like AGT Foods and Minot Milling who purchase from local farmers to help support and grow the ag industry in North Dakota.” PB

30 Prairie Business October 2016
|COMMUNITY PROFILE|
kprasek@prairiebusinessmagazine.com
Minot’s Scandinavian Heritage Park is a popular tourist destination featuring remembrances and replicas from Sweden, Norway, Denmark, Finland and Iceland. IMAGE: MINOT AREA DEVELOPMENT CORP.

LEFT: Minot State University experienced an increase in enrollment this year for the first time in six years and the largest overall enrollment since 2013.

BELOW: Minot State University offers more than 60 undergraduate majors, specializing in criminal justice, education, management, nursing, social work, the sciences, energy economics and finance and management information systems.

IMAGES: MINOT STATE UNIVERSITY

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Break IT Down

Information Technology careers go beyond troubleshooting for coworkers. Prairie Business talked to six IT experts about the most crucial aspects of their job

Whether a company has an in-house IT department or outsources that responsibility, IT specialists do more for a company than many employees realize. Prairie Business asked some of the top IT services companies in the region to lend advice on five major areas in their industry — wireless technology, server virtualization and cloud, technology planning and strategy, business process improvement, and compliance and regulation.

WIRELESS TECHNOLOGY

Though the need to go wireless might be a no-brainer, the technology behind it is anything but. Operational and security issues require a clear and insightful plan right from the start to avoid spotty connections and gaps in security down the road.

Questions must be addressed during the design process, such as: What’s the primary use of the wireless environment? Who should be allowed access?

One of the most important aspects of creating a secure wireless network is determining who’s authorized to connect. Secure screening processes must be set to sort authorized devices from non-authorized devices.

Splash pages — a popup that precedes a website — and network access control are also crucial in allowing internal staff and approved guests access to the wireless network.

SERVER VIRTUALIZATION AND CLOUD

Server virtualization takes the essence — operating system and applications — of a physical server and turns it into a virtual machine, or VM. Virtual machines are easier to back up and restore, they are not dependent on the hardware they run on, and they are quicker to deploy, saving time and money. Many virtual machines can be run on a single physical server, reducing the number of servers required to support a business.

Taking the server virtualization concept a step further, VMs can be hosted in a public cloud on the internet. Public clouds are large server farms that provide a pool of shared resources for virtual machines. The purchasing model is different for cloud services — instead of buying hardware, resources such as disk space, the central processing unit and memory are rented from the public cloud service.

32 Prairie Business October 2016
|INFORMATION TECHNOLOGY|
Marco in St. Cloud, Minn. Mike Pagán is service manager at Network Center Inc. in Fargo. IMAGE: EIDE BAILLY

TECHNOLOGY PLANNING AND STRATEGY

Leveraged effectively, technology should help reduce operating costs and facilitate a competitive advantage. In a world of rapidly changing technology, it’s easy to lose sight of the big picture, causing inefficiencies and breaks in the technology supporting a business, as well as the processes around it.

A few crucial questions need to be asked when assessing technology:

• Have we outgrown our current systems or processes?

• Do we have a proactive technology plan to ensure future business growth?

Address unique business challenges through a review of the current situation, assessment of systems, and analysis of business requirements to identify and develop the strategic technology direction of the business. As a technology plan develops and is implemented, the organization will begin to see progress in three key areas:

• Improved efficiency and transparency across operations and resources.

• Enhanced systems that deliver useful, timely information and provide true business intelligence.

• Defined technology and business initiatives unique to current and future business goals. It is important to have technology work for a business, not against it.

BUSINESS PROCESS IMPROVEMENT

The right strategy is crucial to business success. Streamlined, documented and well-communicated business processes are fundamental to every company’s performance and its ability to successfully execute a business strategy. Improved business processes equal better customer service and profitable growth.

A holistic approach to Business process improvement includes the identification and documentation of:

• As-Is: How do things function today?

• Problem: What are the pain points? What is causing them? Why do we want them gone?

• Opportunity: What can be done to improve?

• Implement: How do we make the idea happen?

• Monitor: How do we ensure the process stays in place?

Throughout this process, it is advisable to address and plan for change management as well as impact on organizational culture. This ensures the best possible match between intended results and actual results, while providing measurable return on investment.

Used correctly, BPI is a powerful tool that can empower an organization to take it to the next level and achieve strategic objectives for success.

COMPLIANCE AND REGULATION

Regulatory compliance is defined as the requirement to conform to a rule, standard or law usually specific to an industry. The top five regulations affecting organizations are:

• HIPAA: Makes it easier for people to keep health insurance, protects the confidentiality and security of health care information and helps the health care industry control administrative costs.

• Sarbanes-Oxley: Protects investors and the general public from accounting errors and fraudulent practices.

• Payment Card Industry: A set of requirements designed to ensure all companies that process, store or transmit credit card information maintain a secure environment.

• Can Spam Act: Standards for the sending of commercial email.

• Gramm-Leach-Bliley Act: Requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data.

To ensure success, it is important to apply a single, integrated IT infrastructure to monitor and enforce policies while reducing risk to acceptable levels. For IT, this might mean implementing security policies with software to automatically apply and enforce them.

33 www.prairiebusinessmagazine.com |INFORMATION TECHNOLOGY|
Shelley Earsley is a partner at Eide Bailly LLP in Fargo. Ken Satkunam is president of NorthStar Technology Group Inc. in Fargo. Lorie Pope is co-founder of Nexus Innovations in Bismarck, N.D. Tony Ambrose is director of strategy and technology.

Expanding to Accommodate

National Information Solutions Cooperative expands its Mandan, N.D., campus, adding office space, a fitness center and dining hall in a new employee building

In response to an ever-expanding member base, National Information Solutions Cooperative continues to see its number of employees grow. As a result, the company is in the final stages of expanding its campus in Mandan, N.D.

NISC, an information technology organization that develops, implements and supports software and hardware solutions for its members, has another primary campus location in Lake St. Louis, Mo., as well as additional office locations in Iowa and Wisconsin.

In Mandan, NISC is completing its 33,000-square-foot employee building. The $7.5 million project “will allow us to grow our presence in Mandan with about 75 additional positions over the next five years,” says Jasper Schneider, vice president of member engagement.

“We currently have 400 employees at our Mandan campus, with just over 1,100 employees overall.”

34 Prairie Business October 2016 |CONSTRUCTION CORNER|
National Information Solutions Cooperative is in the final stages of completing its 33,000-square-foot employee building at its Mandan, N.D., location. A formal ribbon cutting will be held in the spring to officially open the $7.5 million building. IMAGE: NISC The employee building’s lobby features an open ceiling to the second floor and floor-to-ceiling glass. IMAGE: NISC The employee building provides training space for employees and members. IMAGE: NISC
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NISC formally broke ground on the project in summer 2015. The project, which was designed by Al Fitterer Architect of Mandan, is in its final stages, and the company expects to hold a formal grand opening with its national board of directors at its spring board meeting in April. while Prairie Engineering of Minot, N.D., provided engineering services.

The new employee building “will tie our campus together by connecting a building that currently houses one of our subsidiary companies, Capturis, which is a utility bill pay company that serves Fortune 500 companies, and the rest of the NISC campus,” Schneider says. The two-story employee building will provide additional office space, common areas, training space for members, a new gym to complement NISC’s wellness program and an employee cafeteria.

As for the design of the employee building, the exterior is primarily stucco. The building lobby is open ceiling to both floors and features floor-to-ceiling glass. The employee cafeteria and back entrance also feature open ceilings with floor-to-ceiling glass on two sides of the building. The building will have LED motion-activated lighting throughout, and the second floor has several solar tubes, which look similar to LED lighting, Schneider says, but use reflective glass materials to provide natural light.

NISC took on this project because of the company’s continued growth, Schneider says. The employee expansion building “was necessary to accommodate NISC’s employee and member growth. As a technology cooperative, our customers are also our owners. Serving primarily the telecommunications and utility industries, as our membership has grown, so has our employee base.”

Schneider says the expansion shows NISC’s dedication to the state of North Dakota. “We are committed to Mandan and North Dakota. Because we are a technology company, our jobs also help diversify North Dakota’s economy,” Schneider says.

While parts of North Dakota’s economy are experiencing a slowdown, Schneider says it’s the complete opposite for NISC right now. “At a time when North Dakota is seeing some economic slowdown because of low commodity prices in the agriculture and energy industries, NISC continues to grow,” he says. “NISC serves utilities across the United States and some international markets. These jobs could be located elsewhere, but NISC has had a presence in Mandan for nearly 50 years, and the work ethic and talent of our North Dakota employees are excellent.” PB

36 Prairie Business October 2016
|CONSTRUCTION CORNER|
kprasek@prairiebusinessmagazine.com
The employee building features an employee cafeteria, which is open to the second floor and features floor-toceiling glass. IMAGE: NISC
37 www.prairiebusinessmagazine.com

Interest Rates

Employment

Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at david.flynn@business.und.edu.

38 Prairie Business October 2016 Oil |BY THE NUMBERS|
Jun‘16 1,026,584 Jun‘15 1,211,328 Average Daily Production (barrels) -184,744 Jun‘16 65 Jun‘15 192 Total Permits -127 Jun‘16 28 Jun‘15 78 Average Rig Count -50 Jun‘16 13,239 Jun‘14 12,868 Producing Wells +371 All time monthly high: 13,013, Oct. 2015 All time monthly high: 1,227,483, Dec. 2014 All time monthly high: 370, Oct. 2012 All time monthly high: 218, May 2012 Jun‘16 $38.75 Jun‘14 $47.73 Price per barrel -$8.98 All time monthly high: $136.29, July 2008 Jun‘16 1,662,025 Jun‘15 1,651,951 Gas (MCF/day) +10,074 All time monthly high: 1,227,483 Mar. 2016 Coal (Thousand Short Tons) -847 All time monthly high: 2,924, March 2004 Jun‘16 10% Jun’15 20% Gas (% Flared) - 10% All time monthly high: 36%, Sept. 2011
Unemployment Rate Employment Jun-16 Jun-15 Jun-16 Jun-15 North Dakota 3.2 2.8 405938 402326 Bismarck MSA 2.9 2.7 69609 66897 Fargo MSA 2.7 2.6 133494 127947 Grand Forks MSA 3.4 3.4 54643 53235 Dickinson MiSA 4.5 2.9 18304 20095 Jamestown MiSA 2.0 2.8 11238 10660 Minot MiSA 4.4 3.4 38788 38655 Wahpeton MiSA 3.3 3.3 12629 12129 Williston MiSA 4.9 2.7 23657 28040 South Dakota 2.7 3.2 443890 438120 Rapid City MSA 2.8 3.1 72210 71553 Sioux Falls MSA 2.2 2.6 145061 139971 Aberdeen MiSA 2.4 2.5 23258 23141 Brookings MiSA 2.9 3.2 17865 17653 Huron MiSA 2.4 2.6 9524 9592 Mitchell MiSA 2.3 2.7 13155 13114 Pierre MiSA 2.0 2.3 12900 12678 Spearfish MiSA 3.4 3.4 12863 12772 Vermillion MiSA 3.4 3.7 6157 6236 Watertown MiSA 2.8 2.8 15197 15217 Yankton MiSA 2.4 2.5 11698 11566 Minnesota 3.8 3.6 2927410 2901754 Duluth MSA 5.9 5.2 135355 137089 Minneapolis-St. Paul MSA 3.8 3.6 1896833 1882795 Alexandria MiSA 3.2 3.2 19974 20024 Bemidji MiSA 5.3 4.8 22727 22445 Brainerd MiSA 4.9 4.8 45008 45247 Fergus Falls MiSA 3.9 3.7 30675 30949 Hutchinson MiSA 4.6 4.0 19713 19848 Marshall MiSA 3.6 3.1 14578 14899 Red Wing MiSA 4.0 3.6 25941 26264 Willmar MiSA 3.6 3.6 23357 23684 Winona MiSA 4.2 3.8 27916 28302 Worthington MiSA 4.1 3.4 11003 11138 Gas
April 2016 SOURCE: N.D. PIPELINE AUTHORITY *EIA Original Estimate data (data since 2002) Gas captured and sold Flared due to challenges or constraints on existing gathering systems Flared due to lack of pipeline connection 2008 2010 2012 2014 2016 5 4 3 2 1 0 Percent E ective federal funds rate 10-year treasury constant maturity rate 2% 8% 90% | SPONSORED BY | Jun‘16 2,077 Jun‘15 2,924
Captured/Sold

a division of Fisher Industries

General Steel & Supply Company is the manufacturing division of Fisher Industries. We design and fabricate quality aggregate processing equipment for companies all over the world. We are proud to recognize October as Manufacturing Month and salute all employees involved in manufacturing, from accountants to welders!

Manufacturing Day is a celebration of modern manufacturing meant to inspire the next generation of manufacturer. Mfg Day usually occurs on the rst Friday in October, but any day can be a Mfg Day! At General Steel we strive to spark an excitement for careers in manufacturing in students by providing hands-on shop tours, donating materials to welding classes, and sponsoring Mfg Day events. Learn more about us at www. sherind.com.

3020 Energy Drive - Dickinson, ND 58601 (701) 456-9184 | (800) 932-8740 www. sherind.com

Year-over-year summary

Drilling Productivity Report

Drilling Productivity Report Year-over-year summary

Monthly additions from one average rig

September 2016

BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica

October-2015 October-2016

Indicated monthly change in oil production (Oct vs. Sep)

October-2015

October-2015 October-2016

Indicated monthly change in oil production (Oct vs. Sep)

FordHaynesvilleMarcellusNiobraraPermianUtica

-well gas production per rig

New-well gas production per rig

drilling data through August projected production through October

through August projected

October-2015 October-2016

Indicated

Indicated monthly change in gas production (Oct

October-2015

October-2015 October-2016

Indicated monthly change in gas production (Oct vs. Sep)

million cubic feet/day

October-2015 October-2016

FordHaynesvilleMarcellusNiobraraPermian Utica

U. S. Energy Information Administration | Drilling Productivity Report

SOURCE: U.S. DOE ENERGY

40 Prairie Business October 2016 |FEDERAL DRILLING DATA| U. S. Energy Information Administration | Drilling Productivity Report 0 200 400 600 800 1,000 1,200 1,400 2007200820092010201120122013201420152016 Oilproduction thousand barrels/day Bakken Region -50 -25 0 25 50 Sep 942 Mbbl/d Production from new wells Legacy production change Net change Oct 914 Mbbl/d thousand barrels/day Bakken Region +25 -53 -28 Indicated change in oil production (Oct vs. Sep) -50 -25 0 25 50 Sep 1,572 MMcf/d Production from new wells Legacy production change Net change Oct 1,547 MMcf/d Indicated change in natural gas production (Oct vs. Sep) million cubic feet/day Bakken Region +34 -59 -25 0 200 400 600 800 1000 2007200820092010201120122013201420152016 new-well oil productionper rig new-well gas production per rig New-well oil production per rig barrels/day Bakken Region (70) (60) (50) (40) (30) (20) (10) 0 2007200820092010201120122013201420152016 Legacy oil production change thousand barrels/day Bakken Region (80) (70) (60) (50) (40) (30) (20) (10) 0 2007200820092010201120122013201420152016 Legacy gas production change million cubic feet/day Bakken Region 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2007200820092010201120122013201420152016 Bakken Region Natural gas production million cubic feet/day 0 50 100 150 200 250 0 1,000 2,000 3,000 4,000 5,000 6,000 2007200820092010201120122013201420152016 New-well gas production per rig thousand cubic feet/day Rig count rigs Monthly additions from one average rig October barrels/day September barrels/day monthover month Oil +21 Gas thousandcubic feet/day month over month +39 million cubic feet/day month over month
October thousand cubic feet/day September 1,189 896 875 thousandbarrels/day month over month Oil -28 Gas -25 3 U. S. Energy Information Administration | Drilling Productivity Report 0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Oil production thousand barrels/day 0 3,000 6,000 9,000 12,000 15,000 18,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Naturalgas production million cubic feet/day 0 400 800 1,200 1,600 2,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 New-well oil production per rig barrels/day 0 2,000 4,000 6,000 8,000 10,000 12,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica October-2015 October-2016 New
thousand cubic feet/day (700) (600) (500) (400) (300) (200) (100) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica
October-2016 Legacy gas production change million cubic feet/day (150) (125) (100) (75) (50) (25) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Legacy oil production change thousand barrels/day -50 -40 -30 -20 -10 0 10 20 30 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica
1,228
October-2015
October-2016 thousand barrels/day
monthly
production (Oct vs. Sep) -400 -300 -200 -100 0 100 200 300 400 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica
Indicated
change in oil
October-2016 million cubic feet/day
Sep) 2 0 200 400 600 800 1,000 1,200 1,400 2007200820092010201120122013201420152016 Oilproduction thousand barrels/day Bakken Region -50 -25 0 25 50 Sep 942 Mbbl/d Production from new wells Legacy production change Net change Oct 914 Mbbl/d thousand barrels/day Bakken Region +25 -53 -28 Indicated change in oil production (Oct vs. Sep) -50 -25 0 25 50 Sep 1,572 MMcf/d Production from new wells Legacy production change Net change Oct 1,547 MMcf/d Indicated change in natural gas production (Oct vs. Sep) million cubic feet/day Bakken Region +34 -59 -25 0 200 400 600 800 1000 2007200820092010201120122013201420152016 new-well oil productionper rig new-well gas production per rig New-well oil production per rig barrels/day Bakken Region (70) (60) (50) (40) (30) (20) (10) 0 2007200820092010201120122013201420152016 Legacy oil production change thousand barrels/day Bakken Region (80) (70) (60) (50) (40) (30) (20) (10) 0 2007200820092010201120122013201420152016 Legacy gas production change million cubic feet/day Bakken Region 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2007200820092010201120122013201420152016 Bakken Region Natural gas production million cubic feet/day 0 50 100 150 200 250 0 1,000 2,000 3,000 4,000 5,000 6,000 2007200820092010201120122013201420152016 New-well gas production per rig thousand cubic feet/day Rig count rigs
monthly change in gas production (Oct vs.
October barrels/day September barrels/day month over month Oil +21 Gas thousandcubic feet/day month over month +39 million cubic feet/day month over month 1,228 October thousand cubic feet/day September 1,189 896 875 thousandbarrels/day month over month Oil -28 Gas -25 U. S. Energy Information Administration | Drilling Productivity Report 0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Oil production thousand barrels/day 0 3,000 6,000 9,000 12,000 15,000 18,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Naturalgas production million cubic feet/day 0 400 800 1,200 1,600 2,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 New
oil
barrels/day 0 2,000 4,000 6,000 8,000 10,000 12,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian
-well
production per rig
Utica
(700) (600) (500) (400) (300) (200) (100) 0 BakkenEagle
Utica
thousand cubic feet/day
FordHaynesvilleMarcellusNiobraraPermian
million cubic feet/day (150) (125) (100) (75) (50) (25) 0
October-2015 October-2016 Legacy gas production change
Legacy
thousand barrels/day -50 -40 -30 -20 -10 0 10 20 30 BakkenEagle
oil production change
thousand
barrels/day
-400 -300 -200 -100 0 100 200 300 400 BakkenEagle
million cubic feet/day
Sep) 2 U. S. Energy Information Administration | Drilling Productivity Report 0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Oil production thousand barrels/day 0 3,000 6,000 9,000 12,000 15,000 18,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica
October-2016 Naturalgas production million cubic feet/day 0 400 800 1,200 1,600 2,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 New-well oil production per rig barrels/day 0 2,000 4,000 6,000 8,000 10,000 12,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica October-2015 October-2016 New-well gas production per rig thousand cubic feet/day (700) (600) (500) (400) (300) (200) (100) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica
October-2016 Legacy gas production change million cubic feet/day (150) (125) (100) (75) (50) (25) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica
October-2016 Legacy oil production change thousand barrels/day
vs.
October-2015
October-2015
October-2015
-50 -40 -30 -20 -10 0 10 20 30
thousand
BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016
barrels/day
-400 -300 -200 -100 0 100 200 300 400 BakkenEagle
FordHaynesvilleMarcellusNiobraraPermian Utica
2
0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Oil production thousand barrels/day 0 3,000 6,000 9,000 12,000 15,000 18,000 Naturalgas million cubic 0 400 800 1,200 1,600 2,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 0 2,000 4,000 6,000 8,000 10,000 12,000 (700) (600) (500) (400) (300) (200) (100) 0 Legacy million (150) (125) (100) (75) (50) (25) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Legacy oil production change thousand barrels/day -50 -40 -30 -20 -10 0 10 20 30 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 thousand barrels/day Indicated monthly change in oil production (Oct vs. Sep) -400 -300 -200 -100 0 100 200 300 400 million cubic Indicated
U. S. Energy Information Administration | Drilling Productivity Report 0 400 800 1,200 1,600 2,000 2,400 2,800 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Oil production thousand barrels/day 0 3,000 6,000 9,000 12,000 15,000 18,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Naturalgas production million cubic feet/day 0 400 800 1,200 1,600 2,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 New-well oil production per rig barrels/day 0 2,000 4,000 6,000 8,000 10,000 12,000 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica October-2015 October-2016
-well gas production per rig thousand cubic feet/day (700) (600) (500) (400) (300) (200) (100) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica October-2015 October-2016 Legacy gas production change million cubic feet/day (150) (125) (100) (75) (50) (25) 0 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 Legacy oil production change thousand barrels/day drilling data
production
INFORMATION ADMINISTRATION
New
through October September 2016
-50 -40 -30 -20 -10 0 10 20 30 BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica October-2015 October-2016 thousand barrels/day Indicated monthly change in oil production (Oct vs. Sep) -400 -300 -200 -100 0 100 200 300 400 BakkenEagle FordHaynesvilleMarcellusNiobraraPermian Utica October-2015 October-2016 million cubic feet/day Indicated monthly change in gas production (Oct vs. Sep) 2

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