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Monday, January 11, 2016

SCHMID’S TOP TEN NORTH DAKOTA STORIES OF 2015

OIL SLOWDOWN

Moody’s Analytics declared that “North Dakota’s oil boom has come to an end, and the state will underperform the nation for several years.” State officials and economists believed that is an overstatement, but as Gov. Jack Dalrymple said, the state “is going to have to do a little belt-tightening going into 2016.” The new Dakota Prairie Refinery near Dickinson exemplifies the effect of low oil prices -- the refinery was conceived when oil prices were as high as $120 a barrel, now they are $40 a barrel and the refinery is losing money.

THE ECONOMY

Gov. Dalrymple also said, “There is no indication that oil prices and farm commodity prices will rebound soon.” As the year unfolded, it became obvious that 2014 had been a high-water mark for the ND economy. But despite the double-barrel hit, the state’s economy remains strong. ND has the nation’s best credit quality and best fiscal solvency.

OIL TAXES

ND had a tax law provision where, if oil prices remained low for a sustained period, there would be an oil tax holiday which would cost the state billions in lost oil taxes. The state was approaching the “Big Trigger” when the Legislature revamped the way it taxes the oil industry, substituting a stable lower rate system for a variable rate. Their timing was prescient as oil prices declined further. The Three Affiliated Tribes (Ft. Berthold) were disturbed by the reduction in their revenues as a result of sharing the lower rates and threatened to impose additional tribal taxes and regulation on the oil companies.

WELL DONE, MY GOOD AND FAITHFUL SERVANT

Former Bismarck Tribune columnist Clay Jenkinson used a biblical quote to describe the nearly unanimous respect for ND Gov. Jack Dalrymple who will retire in 2016.

SQUAWK, SQUAWK! IT’S A HAWK!

The above is from a Fargo Forum editorial -- the Forum was one of few deriving pleasure from the demise of UND’s Fighting Sioux nickname. A letter to the GF Herald called the nickname and logo among the most loved and recognized in the nation. Another said it evoked a sense of pride in the spirit of being a North Dakotan. Yet another said the nickname served as a “positive identity for American Indians and UND alike.” The new nickname is Fighting Hawks.

UND PRESIDENT ROBERT KELLEY

Kelley is probably packing as we speak. He retires early in January. Seven and a half years ago he was greeted with high expectations. During Kelley’s administration there was significant growth in programs, funding and the physical campus. Those accomplishments were overshadowed by events near the end of his term. Kelley was thought to be overly eager to retire the Fighting Sioux nickname -- for that and other reasons he lost support of the students. The faculty had its own agenda and he largely lost their support. The campus was left with low morale and low confidence.

LUTHERAN SOCIAL SERVICES

LSS has 300 employees in ND and is the largest organization of its type in the state. It has a new $5 million headquarters in Fargo. Its most attention getting activity is refugee resettlement for the U.S. State Department -- as a result of LSS efforts, ND is the state with the most resettlements in relation to its population. Somali are one of the largest resettlement groups and the most difficult to integrate. Many Somali require indefinite taxpayer assistance. The majority of ND refugees live in Fargo where residents are pushing back and oppose further resettlement by a margin of two to one. LSS CEO Jessica Thomasson was selected Forum Person of the Year.

TEX HALL HAS MANY LIVES

A special investigation initiated last year by the Three Affiliated Tribes council found the former chairman attempted to extort over a million dollars from an oil and gas company and used his office to divert payments to a business partner who has now pleaded guilty to two murders. The report has been referred to the U.S. Attorney’s office. Hall has blithely moved on to form a partnership to produce medical marijuana on reservations. A tribal elder mused over Hall’s escapades, she said, “It’s like our reservation got hijacked by the plot of a bad movie.”

WILL-O-THE-WISP

The Jamestown Sun had no trouble selecting its biggest story of 2014: The $3 billion CHS nitrogen plant -- then projected to be the largest construction project in ND history. The plant was to rescue Jamestown from years of stagnation. Site preparation began. Then the project became Jamestown’s biggest story of 2015 -- CHS pulled the plug, abandoned the plant and took an $85 million loss. St. Paul-based CHS cited rising construction costs and water supply issues.

THE HERD’S ON THE MOVE

Last January the NDSU Bison won a fourth straight Division I FCS national football championship -- the first team in FCS history to do so. It was the Bison’s 12th national championship. This January the Bison go to Frisco, Texas, to compete for a fifth consecutive national championship and add to an astonishing list of national records.

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