SCHMID: SCHMID’S TEN BIGGEST NORTH DAKOTA STORIES OF 2013
1. THE LUCKIEST PLACE ON EARTH
That was the title of a February New York Times Magazine cover story about North Dakota followed a month later by a National Geographic cover story, “America Strikes Oil.” ND is lucky -- at the end of the third quarter the state’s 9,700 wells were producing 931,000 barrels of oil a day. Ostensibly, the articles were about the promise of the state’s oil boom, but the subtext was something else. Both magazines emphasized the bleakness and downside of oil production. The NYT article concluded ND residents “appear to have weighed the benefits against the costs” and “given the state’s history of hardship, they don’t feel entitled to qualms about social and environmental costs.”
2. WHO’S GOT IT BETTER THAN US?
That is the call of the Harbaugh brothers, one the coach of the SF 49ers, the other the Baltimore Ravens. Their response to the call is a loud, stretched out “Nooooo-body.” This could easily be the call-and-response chant of ND and its governor, Jack Dalrymple. One state legislator said no governor in ND’s history had been able preside over such strong economic times. The state’s spending for the 2013-15 biennium will be over $7 billion compared to $4 billion for the biennium just ended.
3. IT’S BEAUTIFUL -- IT TIES TWO OF THE STATE’S PREMIER INDUSTRIES
The ND Commerce Commissioner explained the benefits of capturing the state’s wasted natural gas to make nitrogen fertilizer, thereby giving competitive advantage to the state's energy and ag industries. Presently, much nitrogen fertilizer is imported from the Middle East. Billion dollar fertilizer plants are planned in both Jamestown and Grand Forks -- natural gas will represent about 80 percent of production costs. These and many other projects are part of the state’s rapid industrialization. Three diesel refineries are being constructed, 17 rail loading stations are in service, numerous natural gas plants are being built, and 1,700 workers are engaged in pipeline construction.
4. A FARMLAND BUBBLE?
Several variables support the price of farmland: demand for farm commodities, crop yields and interest rates. In recent years, all three variables moved in a favorable direction and ND farmland prices moved in accord. ND farmland prices jumped 46 percent in 2012 and 36 percent in 2013. The Wall Street Journal speculated that farmland values may be in a bubble. There may also be a scarcity of qualified buyers -- half the farmers in ND are over 50. In the future, more young farmers will rent from retired farmers.
5. WIN-AT-ALL-COSTS PROGRAM
The NDSU Bison completed the 2012 football season by thundering to another national championship. Fargo became a darling of ESPN -- the city was proud and elated. There were backbiters: a state legislator ticked off a long list of criminal charges against NDSU players and an absence of discipline at the university. Some players were given minor community service, but skipped it. The GF Herald observed, “Shame on you NDSU for the handling of this whole sorry episode.” Ignoring the critics, the Bison went undefeated in 2013 and will again play for the national championship. Coach Craig Bohl leaves after the championship game to coach at the U. of Wyoming for annual compensation in excess of $1 million.
6. RIDING INTO THE SUNSET
Grand Forks Herald Publisher Mike Jacobs called NDUS Chancellor Hamid Shirvani “ND’s person-of-the-winter.” Later, Fargo Forum cartoonist Trygve Olson drew Shirvani as a cowboy riding west into the sunset. Shirvani did not go empty-handed -- his saddlebags were stuffed with a buyout totaling nearly $1 million. Shirvani became chancellor of the university system in mid-2012 and almost immediately introduced reforms considered by many to be needed and rigorous. But the reforms didn’t sell well, some university presidents and their supporters felt the reforms threatened to diminish their status and reduce enrollments. Shirvani did not have the political skills to combat “behind-the-scenes” efforts to discredit him.
7. THE HOME OF THE GLOOMY
A Federal Reserve survey of business leaders in Minnesota found less than 50 percent optimistic, while those in ND were 85 percent optimistic. The survey results were a microcosm of business attitudes in Minnesota, particularly in the Red River Valley where in the past decade ND counties have grown 20 percent, while corresponding Minnesota counties have grown by 3 percent. Minnesota responded to fiscal problems by raising taxes -- this has been especially hard on the counties bordering ND where taxes decreased. There is also concern about Minnesota’s future productivity because of falling education levels and skills. About 20 percent of Minnesota’s population and 25 percent of children are people of color, many are refugees who have immigrated to the state in the last two decades.
8. THE PEOPLE ARE FED UP
A quote from an elder of the Spirit Lake Nation. The elders adopted a resolution to dismiss the entire Tribal Council after a history of scandal and corruption. A tribal assembly voted 114-3 to oust Chairman Roger Yankton, who responded, as always, that the tribe was making progress, but was hampered “by the negativity” of media reports and unfair allegations. Yankton fought his dismissal, until he was finally removed by the Intertribal Appellate Court in Aberdeen. An editorial in the Grand Forks Herald concluded “The Spirit Lake Tribe has a long row to hoe in regaining the public’s trust.”
9. HOPE, JOBS AND BUSINESS OPPORTUNITIES
Only a few years ago, the Three Affiliated Tribes at the Ft. Berthold Reservation were deeply in debt and shared the poverty and unemployment of the other three ND reservations. Today, the debt is paid, the tribes are constructing a $450 million oil refinery and planning a natural gas plant. There are 640 wells on the reservation netting the tribes over $20 million a month in oil tax collections. The tribes are using the money to build homes, medical facilities and water systems.
10. A TEMPEST IN A TEAPOT
A wild-eyed man wanted to take over the southwest ND town of Leith (pop. 19), make it a sanctuary for white supremacists and rename it Cobbsville. Craig Cobb energized extremists on both ends of the political spectrum and Leith witnessed competitive political demonstrations. Editorials in state newspapers denounced bigotry. Hysteria abounded. Meanwhile, where was the terrible little terrorist Craig Cobb? He was arrested and, at one point, confined to the state mental hospital in Jamestown and refusing to eat. The Economist magazine referred to the episode as "A racist mob of two."
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I'VE GOT IT! UND’s new football coach is nicknamed Bubba, but his team has no nickname. How about just calling them "The Bubbas."
LATE BREAKING NEWS:
Good: The Federal Aviation Administration selected Grand Forks as one of six drone test sites. This has been a long-sought goal of the Grand Forks community. There is potential synergism with the UND Aerospace School, GFAFB, and private business and government agencies in the area.
Not so good: Casselton closed out the year with a bang. A 100-car grain train derailed and was struck by a 100-car oil train. The result: the biggest rail fire and explosion in ND history. The crash happened west of Casselton and there were no injuries.