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About Amy Dalrymple

Amy Dalrymple is a Forum Communications Co. reporter stationed in Williston, N.D. She covers stories related to the state's oil boom. Dalrymple has worked as a full-time reporter with Forum Communications since 2003, most recently covering higher education for The Forum of Fargo-Moorhead.

Faces of the Boom: N.D. provides math instructor with a solution

Amanda Davis, center, tutors students at Williston State College on Thursday, April 18, 2013. Amy Dalrymple/Forum News Service

WILLISTON, N.D. – Amanda Davis was struggling financially as an adjunct professor in Texas when a CNN story caught her attention.

The news story talked about how much money North Dakota has, prompting her to immediately Google “colleges in Williston.”

She learned that Williston State College had an opening for a math instructor, so she applied for the job, along with a position at another college.

Davis, 32, ended up receiving both job offers in one day, but decided Williston was the best place for her.

“Money wasn’t really the thing that drew me up here,” Davis said. “What drew me was the opportunities.”

Now finishing her first year at the college, Davis has more financial stability than she did working as an instructor for Tarrant County College in Texas, a position that did not provide benefits.

Her husband struggled to find steady work in Texas, but immediately found a job in Williston working for Napa Auto Parts.

While Davis moved to North Dakota from across the country, she was not a stranger to the state. Davis was born in Minot but moved in 1988 to Florida with her parents at age 8.

Now back in the north again, Davis is reconnecting with relatives.

“I’m on a homecoming thing,” Davis said.

Davis and her husband initially lived in a campus residence hall, but recently moved into a three-bedroom trailer with another couple from Texas they encouraged to move to North Dakota.

Davis enjoys the additional responsibility she now has as a member of the faculty rather than as an adjunct professor. This semester, she adopted a new textbook for college algebra that is taught with the iPhone and regularly holds tutoring sessions with students.

“I wanted to be somewhere where my skills would be put to use,” Davis said.

Singapore investor eyes N.D. Oil Patch

Danny Lim, founding principal of Barons Companies of Singapore, speaks during the Bakken Investor Conference Friday, April 26, 2013, in Minot, N.D. Amy Dalrymple/Forum News Service

MINOT, N.D. – A real estate investor from Singapore expects to make two or three deals in the Bakken before leaving a conference this week with plans to invest millions in North Dakota.

Danny Lim, founding principal of Barons Group of Companies, was among more than 200 people who attended the Bakken Investor Conference in Minot this week.

Lim said he raises funds from Singapore, India, Malaysia, China and other eastern countries that he’s interested in investing in western North Dakota residential and commercial projects.

Initially the fund is looking to make $5 million to $10 million in investments for a period of three to five years. But the group would like to establish a larger fund and return to North Dakota to invest as much as $100 million for the long term, Lim said.

“We’ll come back to North Dakota when things are a little more stable and we’ll know exactly who makes it and who got killed,” Lim said.

The company, which includes Property Barons, began doing work in the United States in 2009, buying properties from banks.

“We thought everybody is running out, perhaps we should start looking in,” Lim said.

The investors found success in the United States and decided to investigate North Dakota.

Before attending the conference this week, Lim said he thought there would be a huge demand for hotels. But after visiting, he’s reevaluating his strategy and looking for local partners.

He said he expected to make two or three deals and visit a Stanley apartment project before returning to Singapore today.

Lim said he’s nervous about the danger of overbuilding and the lack of information about what housing projects are being built.

“It’s everybody’s guessing game,” he said.

Lim said he’d like to see communities and the state compile information about building projects that have been permitted so developers can analyze that information.

“The main challenge is for the entire state of North Dakota to actually bring all of the statistics together so everybody knows what is being built and what is the supply and nobody gets burned,” Lim said.

International investors are interested in the Bakken, said Tom Rolfstad, economic development director for Williston. Williston has seen investors from Turkey, India, England and China and continues to receive interview requests from international media, Rolfstad said.

“A lot of the world is very interested in what’s going on here,” Rolfstad said.

Lim said he is leaving North Dakota impressed with the prospects.

“There are loads of opportunities but there are a lot of entrapments as well,” Lim said. “Easy to get in, but not easy to get out. I think the main strategy is to find how you can actually exit. For investors, most of the time, you don’t put in money forever.”

Hess Corp. brings sons, daughters to work

Students participate in Take Your Sons and Daughters to Work Day at Hess Corp. in Tioga. Photos courtesy of Hess

TIOGA, N.D. – Nearly 40 fourth- and fifth-graders learned about the oil and gas industry Thursday during Take Your Sons and Daughters to Work Day at Hess Corp. in Tioga.

The students built simulated drilling rigs to learn about using geological data to drill oil wells. They also did an exercise to see how much money their wells generated, learned about obtaining mineral rights and got a demonstration on rig safety.

 

 

Bank of N.D. bringing together smaller lenders for Bakken projects

MINOT, N.D. – Investors and developers interested in helping solve North Dakota’s housing shortage often run into a common problem: how to finance multi-million dollar projects.

Community banks in the state don’t have the ability to finance deals of that magnitude, national lenders don’t have a presence in western North Dakota and out-of-state banks are wary, said Jeff Zarling, organizer of the Bakken Investor Conference being held this week in Minot.

A new program through the Bank of North Dakota is combining resources of community banks to finance projects that none of the individual banks could do alone.

“We’re hoping that is one solution for opening up more commercial lending in western North Dakota,” said Zarling, president of DAWA Solutions Group, a business development firm based in Williston.

The program was one of the topics highlighted Thursday in the Bakken Investor Conference, which attracted more than 200 attendees from around the country and a few foreign countries.

Tom Redmann, commercial loan officer for the Bank of North Dakota, said the state-owned bank has now done two multi-bank loans, known as subparticipation loans. One loan was a small, pilot project and a larger loan involved several banks.

First International Bank, founded in Watford City, was the lead lender to finance the Renaissance Heights apartment development in Williston that’s being developed by Investors Real Estate Trust of Minot.

First International Bank then partnered with the Bank of North Dakota, which backed a significant chunk of the loan but also involved 12 smaller lenders, Redmann said. The total project cost is $63 million and the loan was for $42 million, he said.

One of the participants was Garrison State Bank, a small-town bank that never would have been able to get involved in a Bakken project without partnering with the Bank of North Dakota, said Garrison Senior Vice President Norman Thoreson.

Some banks from eastern North Dakota participated in the program, but Redmann pointed out that none of the banks from the eastern part of the state were represented at the conference.

“The eastern part of the state is fairly convinced that the western part of the state is just going to fall off the side of the planet,” Redmann said. “They’re not too sure that this oil play is for real.”

He added that eastern North Dakota banks are interested in the Bakken, but they need to get more comfortable with it.

National banks such as U.S. Bank and Wells Fargo are primarily staying on the sidelines when it comes to the Bakken, Redmann said.

The Bank of North Dakota has financed a lot of projects in oil country in the past two years, but is starting to worry about being too heavily concentrated in that area and may not be able to jump in as heavily, Redmann said.

Another presenter, Jon Nelson of Hegg Development Group, spoke about how to position major projects to get the attention of Wall Street. Hegg Development, based in Sioux Falls, S.D., expects to break ground on $100 million of development in the Bakken this year, with help from Wall Street financing, Nelson said.

“Wall Street is paying attention to the Bakken,” Nelson said.

The conference continues through today.

OSHA issues safety violations to oil drilling company

TRENTON, N.D. – The Occupational Safety and Health Administration has issued Nomac Drilling of Killdeer three safety violations, including one repeat for failing to provide fall protection to workers at a Trenton well site.

OSHA has proposed penalties of $65,300.

OSHA did an inspection earlier this month and cited the company for failing to protect workers from falling off platforms. The same violation was cited to Nomac in 2010 and 2011 in Pennsylvania and Oklahoma.

“Falls are one of the leading causes of injury and death in the workplace,” Eric Brooks, OSHA’s area director in Bismarck, said in a statement. “Employers have a responsibility to implement worker safety programs effectively and to train their employees on the proper use of fall protection equipment.”

Nomac also was issued two serious violations for failing to install an effective emergency escape line from the derrick board and failing to provide a usable eyewash station for working with corrosive chemicals.

Nomac Drilling has been inspected by OSHA 35 times nationwide since January 2010, with 16 of those inspections resulting in citations.

The company has 15 business days to comply, contest the findings, or request to meet with an OSHA official.

A Nomac spokesman issued this statement: “Nomac takes worker safety very seriously and will address OSHA’s concerns when we receive details from the agency.”

FracFocus site criticized in Harvard report

WILLISTON, N.D. — The website North Dakota and several other states use to monitor hydraulic fracturing has too many flaws to be effective, says a new report from Harvard Law School.

The report, released this week, says an evaluation of FracFocus, a website that allows companies to disclose the chemicals used in fracking, revealed that the site fails as a tool for regulating industry compliance.

However, some of the shortcomings mentioned in the report are issues that North Dakota’s Department of Mineral Resources is working to improve.

North Dakota began requiring companies to disclose chemicals to FracFocus in April 2012 as one of several new rules adopted by the North Dakota Industrial Commission.

Colorado, Louisiana, Mississippi, Montana, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas and Utah also direct companies to report to FracFocus, according to the report.

Hydraulic fracturing, or fracking, is the process of extracting oil and gas from underground formations using pressurized fluids, sand and chemicals.

States require that companies report to FracFocus during a certain time period. For North Dakota, the requirement is 60 days within the completion of a well.

However, the website does not notify a state when it receives a disclosure and most states cannot easily determine when a disclosure is made, the report said.

Alison Ritter, spokeswoman for the Department of Mineral Resources, said monitoring the timeliness of disclosures is a concern for state officials as well.

The department did an audit last year to see how well companies operating in North Dakota were complying with the new rule.

The audit found that eight companies had not complied during the first months and those companies were sent letters directing them to comply, Director Lynn Helms told industry leaders at a North Dakota Petroleum Council event in September.

When contacted Wednesday, Ritter said she did not immediately have information about how those eight companies are now complying.

North Dakota is working with the Groundwater Protection Council, one of the organizations that run FracFocus, to improve online databases so the state can more effectively monitor when companies submit the disclosures, Ritter said. Information technology staff from North Dakota attended a meeting with the agency last week to work on solving that problem, she said.

Another loophole the report raises is that FracFocus does not have state-specific forms, so some companies may neglect to report some information that is required by those states.

Ritter said that loophole doesn’t exist for North Dakota, however, because the state requirement is the same as what FracFocus requires.

The report also said most states do not receive the disclosure forms and FracFocus staff do not review the forms, which may encourage companies to undervalue careful reporting. The report recommends that states require companies to submit FracFocus forms to the relevant state agency, which is a requirement Texas has.

In addition, the report raised concerns that companies may not report chemicals for trade secret reasons. It recommends that states adopt consistent trade secret standards.

The report also says the database is difficult to search.

Ritter said that while FracFocus can be improved, it is providing North Dakota residents more transparency and allows them to look up individual wells.

“I think FracFocus is a step in the right direction and it’s been a good thing for North Dakota,” Ritter said.

N.D. energy company cited for safety violations after worker’s death

STANLEY, N.D. — The Occupational Safety and Health Administration has cited First Choice Energy of Minot with nine serious safety violations following an inspection that was prompted by the death of a worker.

Joshua Hoiland, 31, Minot, died March 14 at a work site south of Stanley after he was caught in the agitator of an oilfield vacuum truck storage tank.

An OSHA inspection found that workers were exposed to unsafe conditions at the oilfield drilling and disposal operation, according to a news release from the U.S. Department of Labor.

Five of the nine citations involve OSHA’s confined space requirements, including lack of atmospheric testing, permitting, signs and emergency response procedures.

Other citations involve not properly protecting workers from open pit fall hazards, lack of energy control and lockout/tagout procedures and equipment, failing to conduct annual inspections of energy control procedures and failing to train workers on such procedures.

OSHA has proposed penalties of $33,000. First Choice Energy has 15 business days to comply, request an informal conference with an OSHA official or contest the findings.

“First Choice Energy failed to develop and implement the most basic of confined space and energy control safety protocols,” Eric Brooks, OSHA’s area director in Bismarck, said in a statement. “Companies have a responsibility to recognize – and train their workers to recognize – hazards unique to their job sites in addition to protecting workers from such hazards.”

USDA home loan limit increased for ND

WILLISTON, N.D. – The USDA home loan limit for North Dakota will increase from $179,000 to $240,000, the USDA Rural Development office announced Wednesday.

Jasper Schneider, state director for USDA Rural Development, said the increase in loan limit reflects the realities of North Dakota’s booming economy and the high valuations of homes.

“It’s a different game here than it is elsewhere,” said Schneider, who announced the increase in limit during an event at the Williston Chamber of Commerce.

The new rate, which will be effective May 1, will allow the federal agency to continue being part of the solution for solving housing shortages in North Dakota, Schneider said.

“The market has just continued to take off, not just in Williston and Williams County, but all over North Dakota,” he said.

The last time the loan limit changed was in 2010. In fiscal year 2012, the USDA housing program provided more than $61 million in financing for more than 500 North Dakota homes.

For more information on USDA’s housing programs, call (701) 530-2037 or visit www.rurdev.usda.gov/nd.

Williston suspends liquor licenses of strip clubs

WILLISTON, N.D. — City commissioners here suspended the liquor licenses of Williston’s two strip clubs, which police say are causing excessive calls for disorderly behavior.

Commissioners voted unanimously Tuesday night to suspend the license of Heartbreakers for 30 days and suspend the license of Whispers for seven days, both starting at midnight Tuesday.

Williston City Attorney Taylor Olson said the clubs violated city ordinances related to serving intoxicated customers, allowing patrons to take alcohol outside and maintaining an orderly establishment.

The two clubs, which are adjacent to each other on the city’s Main Street, are in the area of downtown Williston where a homicide occurred in March.

However, concern about these clubs violating their liquor licenses began long before that incident, said Police Chief Jim Lokken.

The two bars often are responsible for three to four calls per night to the police, while other bars in town have none or one or two each week, Lokken said.

Olson said she tallied 120 calls for incidents to those bars between January 2012 and this February, with 84 of those calls representing assaults, bar fights or gun incidents. Seven of those 120 calls resulted in criminal charges that were filed, Olson said.

City Commissioner Tate Cymbaluk, who made the motions for suspension, said citizens elected commissioners to maintain a safe community and be responsible with spending.

“I’m satisfied in my mind that for the safety of this community we need to do something. I think something needs to happen and it needs to happen now,” Cymbaluk said. “We need to send a message to this community that we are here to protect them, not necessarily you as the bar owner or the liquor license holder.”

Managers of both establishments denied the allegations, saying employees monitor the door to prevent alcohol from leaving the premises and that employees take care to not overserve patrons.

The recent law banning smoking inside bars has pushed more customers outside, where they can’t be monitored by bouncers, said Jared Holbrook, operations manager for Heartbreakers.

“The rate of crime has came up since then,” Holbrook said. “We’re doing everything that we can to stop it, but we’re not going to go outside and monitor it on the public streets.”

Managers from both bars offered to hire an off-duty Williston police officer to have a presence outside the bars at their expense.

“As long as he’s parked outside and shows a presence, 99 percent of this problem will disappear,” Holbrook said.

Lokken said after the hearing that police officers are not allowed to work for liquor establishments, but the bars could hire private security firms.

Williston police Sgt. Detective Dave Peterson said Heartbreakers, which Holbrook said opened in 2010, causes most of the problems.

Peterson said he’s seen dancers at Heartbreakers pull the faces of patrons into their breasts, which is a violation of a city ordinance.

Peterson said he’s seen video surveillance of a Heartbreakers bouncer pulling a pistol out of his waistband and striking a patron in the head. The bouncer then went outside and fired off a round from that firearm, Peterson said. It was later learned that the firearm was stolen and the man was a convicted felon, Peterson said.

Holbrook said the man was a bouncer who had been fired that day for smoking cigarettes when he was supposed to be working. He asked to return later to have a few drinks.

“We had no idea he armed himself,” said Holbrook, adding that it was his employees who called police.

The night of the shooting, Whispers employees called police about rowdy behavior but were told that officers were busy responding to another call, said Michael Holub, co-manager of Whispers.

Two employees, who are Iraq war veterans, went outside to retrieve firearms to provide protection while they waited for police to arrive, Holub said. Once officers arrived, the assistant manager walked over to show police his weapon and put it away, Holub said.

Peterson said video surveillance shows bouncers carrying firearms in the streets during that incident.

“It is unknown to that officer who these people are with firearms, which produces an extremely dangerous situation for our officers responding down there,” Peterson said.

Whispers has been operating since 1999.

“Until recently, there were no issues on Main Street. Now all of a sudden there are issues on Main Street,” Holub said. “It’s not coming from our place.”

Williston resident Tom Powers, who attended the hearing, said the city has limited resources and shouldn’t be spending an unwarranted amount of resources on these two bars.

“Let them clean it up or leave town,” Powers said.

Charlie Tanner, who retired from the police department after 26 years, said his shift had problems with the strip clubs and began keeping a greater presence there to prevent incidents.

“In my opinion, these bars are open sewers,” Tanner said.

In an interview after the meeting, Holbrook said he was surprised Heartbreakers received a 30-day suspension when the neighboring bar received seven days and had the same allegations.

While many during the meeting said the issues didn’t exist before Heartbreakers opened, Holbrook said, “The answer to that is we opened when the boom started.”

Holbrook said he’ll use the 30 days to renovate the club and regroup with management and staff. He said he welcomes city officials at any time to observe how the bar is operated. Heartbreakers has four to five full-time security employees on site at all times and employees walk female patrons to their cars, Holbrook said.

“We put public safety at highest regard,” he said.

‘Hype about Pipe’ public meeting scheduled Thursday in Stanley

STANLEY, N.D. – Western North Dakota landowners with experience dealing with pipelines and other oil development issues will lead a public meeting in Stanley on Thursday.

The meeting, sponsored by Dakota Resource Council, is at 7 p.m. Thursday in the Mountrail County Fair Building.

Panelists will discuss easements, impacts of pipelines on property, and other oil development related issues.

Panelists are Donny Nelson, Keene rancher and chairman the council’s oil and gas task force, Rose Person, White Earth rancher and member of the task force, and Mark Trechock, regional organizer with the Western Organization of Resource Councils.