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Monday, October 03, 2016

SCHMID: LOOKING BACK FROM THE LEFT COAST - SEPTEMBER 3, 2016

PIPELINES “Don’t Let Politics Stop the Dakota Access Pipeline.” -- Heading of a full-page ad in the Wall Street Journal by the National Association of Manufacturers objecting to administrative interference in the completion of the pipeline. The ad is an indication of the national attention drawn to the protests in ND. Groups opposing the pipeline have crafted an appealing message about threats to Standing Rock’s water supply and sacred areas. Although no significant evidence has been found to support the message, opponents have garnered media attention and rallied support from many liberal politicians and celebrities.

THE DOWNTURN IN THE OIL INDUSTRY is painful for oil service companies, yet at the same time economically healthy. Weak companies are weeded out -- companies that are better capitalized and managed consolidate their positions. RockPile Energy Services has about half of its 400 employees in ND and an office in Dickinson. White Deer Energy (a private equity firm specializing in oil service companies) spotted RockPile as a promising investment and acquired it. White Deer beefed up RockPile’s capital allowing it to expand and acquire America Well Service in Kenmare. The acquisition makes RockPile a significant player in the entire Bakken region with a steady business in the workover rig market.

CARSON WENTZ Last week I asked whether his astonishing debut in the NFL could last. We got an answer -- Wentz had another record week and is the first player in NFL history with at least 100 pass attempts, 60 completions, five TDs and zero INTs in his first three games. National sportswriters are flabbergasted. This from the NY Daily News: “There is a sense of disbelief that this sort of geeky kid is making it happen so quickly.” ESPN referred to Wentz as a “breathless September phenomenon.”
BROADWAY IN FARGO was partially closed today to film clips of Carson Wentz. The Philadelphia Eagles where Wentz quarterbacks have a week off. The clips will be used in promotional videos for RealTruck, a Jamestown company featuring after-market products for pickups. Wentz is also in Fargo for NDSU homecoming weekend.

“UND must be mindful of the law of diminishing returns.” -- Tom Dennis of the GF Herald cautioned UND to be judicious in its reaction to lesser racial incidents. He indicated overreaction can create a backlash.

UNFUNDED MANDATE Is Fargo paying too much for refugee resettlement? City Commissioner Dave Piepkorn considers refugees moving to the area an “unfunded mandate,” since the city has no input in the decision. He wants a cost estimate. Fargo-Moorhead receives three times the number of refugees as Grand Forks and Bismarck combined.

A TRAVEL TIP A sizable group opposes more refugees in Fargo. They are especially concerned about Muslims and tend to direct blame at Lutheran Social Services. One member of the group wrote to the Forum suggesting that Jessica Thomasson take a vacation -- she is the LSS director in Fargo. The suggested destination -- Somalia.

NUCLEAR "If we don't replace these systems, quite simply they will age even more, and become unsafe, unreliable, and ineffective.” -- Secretary of Defense Ash Carter speaking at Minot AFB about America’s nuclear deterrent. Minot AFB is one of the nation’s principal nuclear weapons sites.

THE MR. SPINDLE FACTORY was an abandoned eyesore. Today, it’s home to 20 luxury condos, you know: granite countertops, hardwood floors, custom cabinets, etc. Where do you find this luxury? Minneapolis, or even Fargo? Nope, Valley City. Land O’Lakes built the building in the 1940’s as a creamery. With 16-inch walls, the developer says “It’s built like a fortress” and will be the nicest place in town. in case you are thinking of moving to Valley City, prices are $260,000 to $280,000.

“BUNKY was a good cowboy. He knew how to break and handle horses.” -- From the obituary of “Bunky” Lillibridge (81) of Belfield. Bunky’s cowboy training began when he was ten years old and he and his father rounded up horses in the Badlands for sale to the military. After they had a herd of about 50 horses, with the help of neighbor boys, they trailed the herd to sales rings in Killdeer or Dickinson, picking up neighbor horses along the way and arriving with 150 head or more. Bunky ran the Double L ranch in Fairfield until its sale in 1998.

FROM SECTION GANG TO THE BOARD ROOM Norman Lorentzen (99) began his career as a section hand on the Northern Pacific Railroad. Forty years later he retired as CEO of Burlington Northern (today BNSF). His obituary indicates Lorentzen was born in Horace, ND. He is a Concordia graduate who later served as Chairman of its Board of Regents.

“HAMBONE” IS BURIED Not everyone aspires to being board chairman. Hambone (39) was one who didn’t. His major enjoyment was “to put a smile on everyone’s face.” Hambone’s obituary said he “enjoyed dancing, singing, fishing, riding his motorcycle, and playing guitar.” He was born Glenn Belgarde, Jr. and grew up in Fort Totten. He went many places and did many things -- a burial procession began in New Rockford last Monday and escorted Hambone home to Fort Totten. He is survived by his mother Alice Dogskin and brother Delmar Youngbird.

“FOR MOORHEAD TO SUCCEED, we must break the chains that St. Paul and our very own legislators have used to tie us down.” -- Jordan Idso, Republican candidate for the Minnesota House. He also said, “Our legislators, having already admitted defeat, continue to support regulatory and tax policies that place ever increasing burdens on local individuals and businesses.” This contention is frequently made by Minnesota communities bordering ND -- that they are disadvantaged by taxes and regulation.
TAX CLIMATE The Tax Foundation ranks states for their business tax climates -- ND is in the middle with neighbors on both extremes. In 2016, neighbors Wyoming (#1), South Dakota (#2) and Montana (#6) are among the ten best states. Minnesota (#46) is near the bottom. ND (#29) ranks poorly on sales and income tax, but is one of the best states for property tax.

DAKTOIDS Darcy's Cafe in Grand Forks was recognized as the best diner in ND by “Business Insider” . . . Serious crime for Bismarck was up 25 percent in 2015, while population increased only 3 percent. No clear explanation . . . Rapid growth is expected for Williston and Watford City -- Williston will remain larger, but Watford City will grow faster . . . In 1915, ND had about 2,000 grain elevators with an average storage capacity of 30,000 bushels each; 100 years later, there are about 500 elevators, each with average storage of 1.2 million bushels.

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