APRIL 2-3,2014 BILLINGS, MT - Montana Contractors Association

Transcription

METRA PARK
,
,
APRIL 2-3 2014 BILLINGS MT TRADE CENTER
HOSTS: MONTANA CONTRACTORS’ ASSOCIATION, MONTANA PETROLEUM ASSOCIATION, MONTANA COAL COUNCIL AND KLJ
Calling 811 is the law
Planning on doing any excavation or demolition?
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project. Making the free, easy call to your job site
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damage to underground utility lines and property.
NorthWesternEnergy.com
for all your
business
needs
business solutions
BUSINESS LOANS • CHECKING & SAVINGS ACCOUNTS
HEALTH SAVINGS ACCOUNTS • ONLINE SERVICES
BUSINESS CREDIT CARDS • MERCHANT SERVICES
visit your local branch or firstinterstate.com
Billings
Belgrade
100 Steffes Rd., Billings MT 59101
(406) 259-9720
343 Floss Flats Rd., Belgrade, MT 59714
(406) 388-2308
Building Montana
Published by:
DEL Communications Ltd.
Suite 300, 6 Roslyn Road
Winnipeg, Manitoba, Canada R3L 0G5
www.delcommunications.com
President & CEO
David Langstaff
contents
Publisher
Jason Stefanik
8
Message from the MCA President - Dave Zinke
Sales Manager
Dayna Oulion
[email protected]
10 Message from the Governor of Montana - Steve Bullock
12 Montana Energy 2014 conference and trade show agenda
14 Employee benefits you can trust: MCA Trusts
18 Montana Contractors Compensation Fund:
20 years strong
20 MCA members answer the call in the Bakken
24 MCA members work on Great Falls fabrication complex
28 Study shows coal dust from trains not harmful
32 The end of peak oil
36 MDU Resources president Dave Goodin looks to Montana for reliable contractors
38
40 NorthWestern Energy has big plans
for infrastructure and expansion
Cloud Peak Energy CEO shares
ties between mining, construction
44 The sage-grouse conundrum
46 Index to advertisers
Editor
Shayna Wiwierski
[email protected]
Advertising Sales Representatives
Cheryl Ezinicki
Gary Barrington
Brian Gerow
Ross James
Michelle Raike
Gary Seamans
Contributing Writers
Laura Bailey
Robert Bryce
Rebecca Colnar
Susan Gallagher
Jessie Luther
Steve Wade
Production services provided by
S.G. Bennett Marketing Services
www.sgbennett.com
Art Director
Kathy Cable
Layout & Design
Dana Jensen
Advertising Art
Caitlyn Hawrysh Haier
Joel Gunter
Cover by KLJ Engineering
©Copyright 2014. Building Montana. All rights
reserved. The contents of this publication may
not be reproduced by any means, in whole or
in part, without the prior written consent of
the publisher.
While every effort has been made to ensure the accuracy
of the information contained in and the reliability of the
source, the publisher in no way guarantees nor war
rants the information and is not responsible for errors,
omissions or forwarding looking statements made by
advertisers.
Opinions expressed herein are not necessarily those
of the Montana Contractors’ Assocation.Articles and
advertisements in this publication are not solicitations
to buy, hold or sell specific securities; they are for infor
mation purposes only.
Opinions and recommendations made by contrib
utors or advertisers are not necessarily those of the
publisher, its directors, officers or employees. Inv es
tors should be aware that risk is associated with any
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Subscription, advertising and circulation informa
tion can be obtained from the publisher.
PRINTED in the U.S.A.
03/2014
6
Montana contractors’ association
DEL
Communications Inc.
Message from the
MCA President
Dave Zinke
The Montana Contractors’ Association
resources. Coal mines, oil/natural gas
The company I represent, Knife
(MCA) is pleased to host Montana
wells, wind farms, hydro facilities and
River, Inc., has first-hand experience.
Energy 2014, along with our partners,
other energy sources turn a resource
Knife River has constructed numerous
the Montana Petroleum Association,
into value-added products that pump
projects in recent years made possible
the Montana Coal Council, and KLJ
hundreds of millions of dollars into
by the dramatic expansion of oil explo-
Engineering. If you get this magazine
Montana’s economy. The process of
ration and production in the Bakken.
and you aren’t already registered to
bringing energy resources to the mar-
Like many others, our company hires
attend, get with the program!
ket employs tens of thousands of peo-
people at high wages with benefits,
ple—in construction, trucking, whole-
purchases new equipment, and buys
sale/retail trade, and even non-resident
huge volumes of parts, supplies, fuel,
travel.
materials and professional services.
Energy development in Montana
involves “basic industries” that pro-
Steel Etc 7x4.625 Building Mag.pdf
duce new wealth from our natural
1
3/7/13
2:17 PM
A Partner You
Can Count On
At Steel Etc you’ll find expert
service, customized metals
recycling and salvage solutions
across the state.
Steel Etc’s roll-off containers
makes it easy to stay clean while
recycling your materials containers that can be placed at
your location or job site and filled with
almost any recyclable ferrous and
non-ferrous materials. In most cases, the service is FREE, and we can still pay
you top dollar on your recycled scrap metal material. We ensure safe delivery
and pickup, so contact us for details on how
Steel Etc can help increase your revenue!
Call 800-334-5964
Bob McIntyre, owner
Jim Filipowicz, owner
8
Specializing in Steel Solutions and Sales:
Rebar • Mesh Panels • Structural Steel and Plate • Culvert
1408 52nd Street N Great Falls, MT
(406) 761-4848
www.steeletc.com
People often inquire as to why the
even have some ownership of those facili-
attendees, and we hope to generate enthu-
Montana Contractors’ Association decid-
ties. Contractors definitely subscribe to an
siasm and broad political support for
ed to host and fund a major conference
“all of the above” energy policy, because
energy development in the future.
and trade show featuring energy develop-
we benefit from building all of them!
It is an honor for me to serve a vision-
ment. The answer is quite simple: what’s
The MCA Board of Directors is proud
ary, progressive organization like the
good for the energy industries is good
to lead efforts like the Montana Energy
Montana Contractors’ Association. We
for construction. New oil wells result in
2014 conference and trade show, that will
hope you’ll attend Montana Energy 2014
new pipelines, new railroad facilities, new
help businesses throughout the region
and you find it worthwhile and profitable.
office buildings, and improved public
understand the phenomenal economic
infrastructure.
opportunity energy development repre-
Dave Zinke is president of Knife River Montana/
In 2012, the MCA funded an economic
sents. We hope the networking at this
Wyoming, and serves as the 2014 president of the
impact study of the proposed Otter Creek
event will lead to profitable ventures for
Montana Contractors’ Association. q
Coal mine, which estimated 2,600 construction jobs would be created by building the mine and rail facilities. The taxes
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building montana 2014
9
Message from the
Governor of Montana
Steve Bullock
The Montana Contractors’ Association and members are busy
vehicles moving raw and finished products in and out of state. In
with work throughout the state. I want to extend my apprecia-
addition to supporting activities critical to daily life and a thriving
tion for your hard work in providing Montana with solid infra-
Montana economy, the State has supported contractors and jobs.
structure, and thank employers for providing great education,
In fact, Montana invested more than $300 million to more than 70
training, benefits, and workforce development. The State of
prime contractors on nearly 300 contracts just last year.
Montana recognizes the value of contractors, which is why the
State continues to support contractors in building and improving Montana’s vast infrastructure.
The State will continue to work to ensure Montanans are able
to safely move to work, to doctor appointments, to shop and
recreate, and will continue to provide safe roads for commercial
In addition to supporting highway construction jobs, these
payments also sustain higher-paying jobs throughout the state.
These dollars go on to purchase fuel, hotel rooms, contractor
supplies, asphalt, sand, gravel, concrete, timber, steel, construction equipment, vehicles, private engineering services, and meals
in local restaurants. Montana’s payments to contractors have
sustained and supported about 27,800 jobs since 2011, and on
average, MDT has supported 9,266 jobs per year. Hundreds of
jobs have been supported through hiring contractors working on
infrastructure projects throughout Montana. From Clearwater
Junction to Forsyth, and from Townsend to Windham, MDT
completed several projects over the past year. And, many more
are underway for 2014, including in Toston, Lincoln, Malta, and
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Montana has taken actions in recent years to streamline
project development in order to save both time and money.
Contractor incentives and innovative contracting techniques are
just a couple strategies in which the Montana contracting community has become more efficient. For instance, in 2013, a total
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of $277,000 in contractor incentives was awarded to two firms
for Turn Lanes-Gallatin Canyon, KBP-Reserve Loop to U.S. 93
and Nissler Interchange. Incentives were provided for early contract completion or early completion of project milestones—all
of which are important to minimizing disruption to the traveling public. And, this is only one of many examples of contrac-
Across the state, Montana is working to employ and
protect contractors as they work on projects and
facilities that will serve us for generations to come.
tor incentives on projects throughout the state. In 2013, MDT
paid over $2.7 million in incentives on 122 contracts to 35 prime
contractors related to items such as plant mix for materials,
In addition, Montana will no longer automatically adopt fed-
compaction and ride. This is done to compensate contractors
eral Davis-Bacon wage rates for heavy and highway construction.
for providing a higher-quality material and riding surface, with
The U.S. Department of Labor significantly altered its wage sur-
benefits such as longer service life, smoother ride, and better gas
vey and wage publication process in unnecessarily complicated
mileage to those traveling.
As members of MCA who treat their employees fairly, you
know what it feels like when you are outbid by a contractor
that slashes wages and benefits in order to win the job. That’s
not the way we do things in Montana, and we will continue to
fight against wage cutting as a method of competing for public
contracts. During the 2013 Legislative Session, I signed a bill
supported by contractors and labor unions to change the pre-
ways. That’s why DLI will conduct its own survey in an accurate and timely manner, and publish wage rates for heavy and
highway construction projects, which are subject to Montana’s
prevailing wage law. Montana Labor commissioner Pam Bucy has
begun advising state agencies to include Montana’s state wage
rates in construction contracts that receive both federal and
state funding.
vailing wage calculation methodology and to allow prevailing
Across the state, Montana is working to employ and protect
wage rates to be set in four, rather than 10, districts around the
contractors as they work on projects and facilities that will serve
state. This change in the number of districts will make it easier
us for generations to come. Thanks again for the MCA’s work—I
for contractors to determine the prevailing wages to be paid at
look forward to the work we will continue to do together to
any particular job location.
build an even stronger future for Montana. q
THE BEST
PROTECTION IS
BUILT ON A SURE
FOUNDATION.
This past year, Payne Financial Group joined with
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Insurance, a locally owned group with more
advisors, more carriers and more expertise in
contractor insurance and surety than anyone in
Montana. There’s no better foundation for
Montana builders to build on. Consultant for
the Montana Contractor Compensation Fund:
Chris Hoiness, 406-238-1925.
Associate member of the Montana Contractors’ Association
11
Montana Energy 2014 Agenda
Agenda is subject to change without notice.
Monday, March 31, 2014
8:00 am – 1:00 pm
Large Equipment Move In
Tuesday, April 1, 2014
8:00 am – 5:00 pm
Noon – 5:00 pm
Trade Show Set-Up/Move In
Registration Open
Continuing Education Sessions
9:00 – 11:00 am
Environmental Challenges – Trihydro Corporation
9:00 – 11:00 am
Extraction and Expansion – Montana’s Approach to Taxes on the Energy Industry – Crowley Fleck Attorneys, PLLP
9:00 – 11:00 am
REAL Montana – Building Montana’s Leadership – Janelle Booth, REAL Montana
1:00 – 2:00 pm
2:00 – 3:00 pm 1:00 – 3:00 pm
1:00 – 3:00 pm
Proppant Testing – Critical Testing Process – John Getty, Montana Tech
EOR Potential – Elm Coulee – Burt Todd, Montana Tech
EIS for Managers – Shane Bofto, HydroSolutions Inc.
Effective Emergency Response – Holland and Hart, LLP
1:00 – 4:00 pm
Energy Industry Job Fair and Panel Discussion
3:00 – 5:00 pm
3:00 – 5:00 pm
Environmental Issues – Sage Grouse – Browning, Kaleczyc, Berry & Hoven P.C.
GHG Regulations – Potential Impacts on Energy in Montana – Bison Engineering, Inc.
4:00 – 5:30 pm
Energy Business Appreciation Social
Hosts: Big Sky Economic Development and the Billings Chamber of Commerce
Wednesday, April 2, 2014
7:00 am
Registration and Tradeshow Opens
7:00 – 8:30 am
8:30 am
8:45 am
Continental Breakfast
Welcome: Dave Zinke, President, Montana Contractors’ Association
Opening Remarks: Montana State Governor, Steve Bullock
9:00 am
Keynote: Energy Industry Outlook, Robert Bryce – Author and Journalist
10:00 – 10:30 am
Networking Break
10:30 – 11:45 am Concurrent Sessions
Session A: Energy Transportation: Coal and Oil Rail Transportation
George Duggan, Group Vice President, Coal Marketing, BNSF Railway Company
Session B: Energy Finance: Understanding Regulation, Policy and Legalities
Matt Diette, Assistant Vice President, Supervision Regulation and Credit Division,
Federal Reserve Bank of Minneapolis
Session C: Challenges to Domestic Coal Fired Electricity
Mark Ourada, Vice President, Central Region, American Coalition for Clean Coal Electricity
Jason Bohrer, President, North Dakota Lignite Energy Council
Session D: Port Development – Challenges and Opportunities in Energy Delivery
Wendy Hutchinson, Vice President of Public Affairs, Longview LLC
Bob Watters, Senior Vice President, Director of Business Development, SSA Marine
Session E: Big Sky Business to Business Networking
Noon – 1:00 pm
Keynote: Robert C. Rowe, President and CEO – NorthWestern Energy
1:00 pm – 1:45 pm
Networking Break
12
Montana Energy 2014 Agenda
Wednesday, April 2, 2014 continued
1:45 – 3:15 pm Concurrent Sessions
Session A: Panel Discussion – Moving Energy Forward: Pipeline Activity, Development and Obstacles
Corey Goulet, Senior Major Project Manager, Keystone Pipeline Projects
Kevin Burdick, Vice President of Natural Gas Gathering and Processing, ONEOK
Tad True, Vice President, Belle Fourche/Bridger Pipelines
Duane Rae, President, Spectra Energy Liquids
Session B: Financing Options to Meet Energy Demand
Kevin Davidson, Assistant Vice President and Relationship Manager, Wells Fargo Bank
John Franklin, President and CEO, 1st Bank
Brian Bird, Vice President and CFO, Northwestern Energy
Session C: Capitalizing on Renewable Energy: Developing Outside the Box Opportunities
Session D: Oilfield Innovations: Driving Production and Efficiency
Scott Besmer, Director, Water Resources, Progress Solutions
Brian Cebull, President and CEO, GTUIT
Jamie Harris, Northern Region Business Development, Halliburton
3:15 – 3:45 pm
Networking Break
3:45 – 5:30 pm
Panel Discussion: Meeting Infrastructure Demands
Doug McLinko, Chairman, Bradford County Board of Commissioners
5:00 pm Tradeshow Closes to Public
5:30 – 6:30 pm
Social: Montana Brews and Spirits Energy Mixer
6:00 – 7:30 pm
Banquet and Keynote Address
David L. Goodin, President and CEO, MDU Resources Inc.
Thursday, April 3, 2014
7:30 – 8:30 am
7:00 am
7:30 am
Continental Breakfast
Tradeshow Opens
Registration Opens
8:30 am
8:45 – 9:45 am
9:45 – 10:45 am
10:45 – 11:15 am
Opening Remarks: Dave Galt, Executive Director, Montana Petroleum Association
Keynote: Colin Marshall, President and Chief Executive Officer, Cloud Peak Energy
Keynote: Chairman Darrin Old Coyote, Chairman, Crow Tribe
Networking Break
11:15 – 12:15 pm Concurrent Sessions
Session A: Montana’s Natural Gas Market Moving Forward
Pat Callahan, Director of Gas Transmission and Storage, NorthWestern Energy
Dan Hickman, President, Golden Stone Resources
Session B: Business Succession Planning for the Energy Industry: Making Decisions at the Right Time
Susan P. Rounds, Senior Director of Planning, Wells Fargo Bank
Steven K. McConley, Managing Director, M&A Advisory Services, Wells Fargo Advisors
Session C: Fossil Fuels: New Challenges, Issues and Answers
Matt Egloff, PE, Lab Director, Montana Tech
12:15 – 1:45 pm
Networking Lunch and Break
1:45 – 3:00 pm
CEO Insights – Montana Energy: Opportunities and Possibilities
Thomas B Nusz, President and CEO, Oasis Petroleum
James J Volker, Chairman and CEO, Whiting Petroleum
3:00 – 5:00 pm
6:00 – 8:00 pm
Networking Mixer and Closing Social
Tradeshow Move Out
Friday, April 4, 2014
8:00 – Noon
Tradeshow Move Out – Large Equipment
13
Employee benefits
you can trust
As the 2014 construction season begins, the MCA Health Care
And we will do it for the third year in a row without a rate
and Retirement Trusts looks forward to another successful
increase.
year of providing benefits for Montana construction workers
The MCAHCT will incorporate several ACA-mandated
and their families. Managing employee benefits has become
changes into the plan this year. Among the most prominent are:
more complicated for employers and their plan administrators
•Removal of the pre-existing condition limitation
in recent years. This is true for the MCA Trusts as well, but
•Addition of pediatric dental benefits for eligible dependents
we are pleased to report that the Trusts continue to rise to the
under age 19
•Addition of pediatric vision benefits for eligible dependents
challenge.
under age 19
MCA Health Care Trust (MCAHCT)
This year is a watershed year for the Affordable Care Act
There are many other less noticeable changes that are part
(ACA), as all health care plans must adapt to new regulations
of our effort to comply with the law. But we believe the most
and fees in 2014. Many employer-sponsored health care plans
important outcomes for 2014 are things that do not change:
have taken massive rate increases, reduced benefits, or even
•Employer contribution rates remain the same, unchanged
closed shop and sent their participants to the exchanges for
coverage. The MCAHCT, however, continues to provide coverage under the same formula we have used for the past 27 years.
Strong AMErICAn FoUnDAtIon
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•Deductibles ($575 individual/$1,150 family), unchanged since
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Resources to Make
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MCA-Ad_BuildingMontana2014_AshGrove.indd 1
2/14/14 4:09 PM
© 2013 Stockman Bank
Member FDIC
•Co-insurance (80 percent/20 per-
effective, ACA-compliant plan that
•Dedicated staff – the MCA Trusts
meets the real needs of our partici-
office staff has years of experience
pants. That combination of attributes
managing health care plans. We watch
Regardless of the regulatory climate,
leaves many people asking, “How do
plan costs the same way our contrac-
the MCAHCT always evolves with the
we do it?” The reasons have been the
tor members watch their bottom
times and strives to provide mean-
same for years:
ingful benefits for our participants.
•True risk pooling – all participating
This holistic view of the plan led to
companies and their employees are
the addition of the following non-ACA
in one risk pool. Security in numbers
related benefits for 2014:
holds costs down for everyone in the
•Diabetic counseling
group.
cent), unchanged since 1988
•Autism spectrum disorder benefit
The MCAHCT approach to health
care benefits translates into a cost
•Low administrative cost – MCAHCT
operates at half the overhead of many
plans.
lines.
•The best business partners – claims
administration, actuarial services,
legal support, auditing, banking and
investment advisors. All of our service
providers support the goals of the
MCAHCT and help us run an efficient
operation.
MCA Retirement Trusts (MCART)
The MCA Trusts also administers a
very successful Money Purchase retire-
AUTO, HOME, BUSINESS, FARM & RANCH, LIFE & HEALTH
ment plan and a 401(k) option. Both are
defined contribution plans. Employees
are 100 percent vested in their accounts
from their first day on the job.
Preliminary results indicate that the
MCART returned 18.8 percent in 2013.
The plan’s three-year investment returns
are slightly over 11 percent and the fiveyear average (since the market crash of
2008) exceeds eight percent per year.
The MCART ’s investment policy emphasizes sustained, long-term
growth. Our diversified portfolio pro-
BOZEMAN 587-5111 • 1-800-606-9378
tects against downside risk, while at the
same time providing our participants
with real growth in their retirement savings. Since inception, the MCART has
averaged a nine percent annual rate of
Dan Kunnary
Sales Representative
return for our participants.
For more information on our health care and
retirement plans, please call MCA Trusts at
MDM Supply Company
2609 Bozeman Avenue
Helena, MT 59601
Cell (406) 439-0169
[email protected]
(406) 443-4012
1-800-697-0005
Fax (406) 442-4536
“Wholesale Distributors of
Plumbing, Heating, Pipe, Valves and Fittings”
16
(406) 256-9910 or (406) 461-7625. q
Please recycle.
EVEN STRONG BACKS
NEED WATCHING.
Focus and vigilance prevent work injuries. So get
rest, follow safety rules, pay attention to yourself
and to the guy next to you, and do what you came
here to do. Work.
For tips on work safety, visit www.safemt.com.
WORK COMP INSURANCE
Montana Contractors Compensation Fund:
20 years strong
In 1994, a diverse group of Montana con-
Fund (MCCF), and the MCCF is just
1993, the fund has grown to five full-
tractors came together overcoming com-
one of many MCA benefits of member-
time employees with all claims manage-
petitive differences for a common goal
ship. Membership has doubled since
ment and safety/loss control handled
to take back control of their workers’
fund inception with contractors that
in-house. Still evolving, the MCCF pur-
compensation costs. Our state, reeling
have similar success goals. Is your com-
chased a building last year in Great Falls
over the last publicly bailed failure did
pany ready to take control of workers’
where we continue to provide first-class
not offer the proactive programs and
compensation?
service to our members.
measures these trend-setting companies
MCCF, as a Montana Plan 1 fund,
Our members are part of the work-
requested. Being contractors, they built
has more than doubled its member-
ers compensation claims process, some-
their own group insurance company but
ship in its 15 years in business. To date,
thing you may have only dreamed about.
did not open it up to all who applied.
fund members have collectively received
Problems and issues are dealt with in
It was opened to contractors who met
a return of over $28 million between
real-time with your company actively
strict underwriting criteria and main-
premium refunds and investments of
participating in the claims process. In
tained membership in the Montana
35 percent of premiums paid. From a
fact, without your involvement, the
Contractors’ Association (MCA). The
single employee (executive director)
program will not work. Our proactive
MCA serves as an umbrella for the
with claims management and safety ser-
approach fuses claims and risk manage-
Montana Contractors Compensation
vices contracted to an outside party in
ment with our proprietary Early-Return-
A t t h e e n d o f t h e d A y. . .
DEL
Communications Inc.
DEL Communications Inc.
has in excess of 100 years combined
experience working for you.
We offer outstanding personal service
and quality in the areas of:
When I look back on starting my business, I felt both thrilled and nervous. But I worried
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questions I needed to answer so I could make decisions I felt good about. he helped
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SMALL BUSIneSS LoAnS MAde eASy
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SBA_Montana Contractors Spring 2014
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As medical costs continue to rise,
is a national event attended by most
As costs continue to rise, it is critical
rates will follow. Cost containment
self-insured contractor groups from
to maintain control of your costs and
continues to top everyone’s list and
around the United States.
self-insurance is the most efficient. In
we are working in partnership with
fact, the MCCF’s delivery is one of the
all of Montana self-insureds to reform
purest examples among self-insureds, as
those areas that need to be addressed
100 percent of what is not used in claims
from an administrative and legis-
cost goes back to membership.
lative perspective. To promote this,
To-Work and safety programs.
If given the choice, “ why rent
when you can own” has been the question for many years as rental options,
like most insurance products, provide
little or no equity. It is only been in
We utilize PayneWest, Billings,
we have engaged a lobbyist who will
Montana, as our broker, which provides
help guide us through legislative ses-
the last 10 or so years that workers’
an international reach for products like
sions since 2009. We are also support-
compensation insurance has provided
excess insurance and report generation
ing efforts to implement revised fee
small returns. Our program is a pool
that they perform for less cost than us.
scheduling and treatment guidelines
with member results (any returns)
This is all accomplished on a multi-year
that will standardize what care pro-
strictly based on their own (members)
flat fee contract (they do not receive any
viders receive more in-line with what
commission) regardless of how many
is being paid for services nationally.
loss experience. When shopping for
Leadership has evolved through 12
new members we take on throughout
the year.
board presidents, with our first female
worker-comp products, you should
ask if they have a profit margin that
is factored into their rate structure as
We now pay a seven percent com-
president Vik ki Muus, Mountain
mission to insurance agents who bring
West Holdings, Billings, MT, lead-
in new members if a company feels more
ing us into the 21st year. Additionally,
comfortable using who you know. A
the fund will be hosting its AGC Self-
Interested in owning instead of renting? Call
company can still join without an agent
Insured Funds Information Exchange
the MCCF at (406) 453-8522, or visit our
if they so choose.
in San Diego in February 2015, which
website at www.mccfmt.org. q
ours does not.
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19
MCA members answer
the call in the Bakken
Contractors find plenty of work, challenges in the oil fields
By Laura Bailey
Last year, Ash Grove Cement opened its new Ridgelawn ter-
The Bakken has proven to be profitable for many MCA
minal between Sidney and Fairview, Mont. a few miles from
members, and even with its challenges, it’s still got plenty of
the North Dakota border. The terminal, which has been active
opportunity to offer.
for about a year, is able to supply Portland cement and class G
MK Weeden Construction, a large dirt-moving contractor
oil well cements to companies that serve the oil and natural gas
based out of Lewistown, moved eastward to the oil fields in
industry in the booming Williston Basin.
2010 when work closer to home started to dry up. They had
Like many Montana Contractors’ Association member com-
always had work in Eastern Montana, and followed their cli-
panies working in the oil fields of North Dakota and Eastern
ents to the oil fields, said Mike Kindzerski, estimator and proj-
Montana, Ash Grove Cement was called there to fill a need.
ect manager for MK Weeden Construction. Now, the company
Company representatives were approached by several ready-
has an operations base in Sidney and employs about 50 people
mix plant concrete operations that needed a reliable supply of
on four or five crews that do mainly well pad construction. The
cement.
company also operates a crusher, excavation crew, and truck-
“There’s a huge demand for Portland cement out there,”
said Curt Nunberg, senior sales representative at Ash Grove
Cement.
The cement is produced at Ash Grove Cement’s Montana
City plant, south of Helena, and is transported by rail to the
new facility where it is stored in two 2,000-ton overhead silos
and distributed by trucks across the Bakken. The impact has
been significant for the plant in Montana City.
ing crew in the Bakken.
In addition to oilfield work, MK Weeden also does highway
projects, as well as contract mining for Halliburton and mine
reclamation in Wyoming. This spring they’ll start on a spillway
rehab project at Fort Peck Dam.
“We’re trying to keep our contracting side of the business
going while we’re expanding oilfield work,” Kindzerski said.
The Bakken is an emerging market for contractors for
“It helped us out a lot last year,” Nunberg said. “We would
sure, but not all companies are new to the area. Fisher Sand
have had much more downtime without it, and we’re hoping it
and Gravel has had roots in North Dakota since the 1950s.
just gets better.”
Expansion of the oil fields due to hydraulic fracturing has
20
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In addition to oilfield work, MK Weeden also does highway
projects, as well as contract mining for Halliburton and mine
reclamation in Wyoming. This spring they’ll start on a spillway
rehab project at Fort Peck Dam.
led to expansion in the company,
The number-one challenge of any
which now operates 18 portable crush-
company operating in the Bakken is
ers in North Dakota and two in Eastern
housing. In the past few years, more
“We’re always looking for equipment
Montana. According to Mike Newton,
housing – hotels, apartments, and sin-
operators,” Newton said. “It’s difficult
operations manager for Fisher Sand and
gle-family homes – have been built, but
finding skilled people.”
Gravel in Glendive, the Glendive divi-
it still doesn’t come close to meeting the
sion scaled out 900,000 tons of material
demand.
last year, and most of it went to support
“We’ve got a man camp that we
construction in the Bakken, building
put people up in, but it’s still less than
critical infrastructure, such as highways,
ideal,” Kindzerski said.
challenge among companies working in
the Bakken.
The hiring pool stretches across
the nation, and it’s not uncommon for
Montana companies to have people from
10 different states on the payroll.
“We employ people from all over the
The housing that’s there is expen-
nation,” Kindzerski said. “We have a
Rapid expansion into new markets
sive, and is one of the largest operating
high turnover when guys come in and
doesn’t come without its challenges,
expenses in the budget, said Newton,
find out what work is like out there, but
especially in the Bakken, where the
and housing also factors into a high-
that’s the nature of it for everybody.”
infrastructure hasn’t kept up with the
er turnover rate. Finding and keeping
Century Companies, Inc., a Lewis–
quality employees is also a universal
town-based MCA member also at work
new buildings, and homes.
growth.
in the Bakken, has taken numerous
approaches to the problem. The company still has turnover, but has discovered that to keep employees, they have
to offer adequate time off, great salaries, and the best benefit package in the
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industry.
“We like to be the Big Sky employer
of choice,” said Tim Robertson, president and CEO of Century Companies,
Inc. “We want to be sure they’re treated
better here than anywhere else, and that
means we do everything in our power
to be sure that, in the end, our employ-
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ees are the most important part of this
company.”
The company started almost 40
years ago and has always had a presence in Eastern Montana, but has since
grown to a four-state, multi-discipline
contractor. Their work includes construction management, asphalt paving,
concrete placement and finishing, dirtmoving and excavation, trucking, crushing and materials production. Century
Companies, Inc. moved into the oil
fields at the urging of many of their clients who were expanding in that direction as well.
“Now, oil industry or oil-related
work has grown to between 15 and 25
percent of our business,” Robertson
said.
During the time the company has
been working in the Williston Basin,
Robertson has noticed a distinct shift –
a maturing of the marketplace. Five or
six years ago, mostly any company could
find work, and the oil fields attracted
hundreds of companies. Some of them
were reputable, some of them fly-bynight. These days, it’s much more competitive, and not all companies with an
interest in the Bakken will find work
there, Robertson said. In a competitive
climate, oil companies and other big clients can be more selective and demanding. Good, established companies are
still doing well, but those with make-aquick-buck attitudes are long gone.
“It has become exponentially more
competitive than it has been in the
past,” Robertson said. “It’s a much
more challenging place to work from a
profitability standpoint. It’s still a great
market, but it’s not the same place it
was three to five years ago.”
Newton, who is also an MCA board
member, is always encouraging fellow
MCA members to look east for work.
He knows that Montana companies are
among the best in the nation and have the
drive, professionalism, and work ethic to
succeed no matter where they go.
MK Weeden Construction
the largest dirt moving contractor
in the states of Montana, Wyoming and
North Dakota with expansion into
the Southwestern United States
OUr ServiCeS
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Highway 87 West • PO Box 1164 • Lewistown, Montana • 59457 • Office: (406) 538-3726 • Fax: (406) 538-4818
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“I know it’s a long way from home,
but it’s good work,” he says. q
23
MCA members
work on
Great Falls
fabrication
complex
By Susan Gallagher
ADF International Inc. recently commissioned its Great Falls
steel fabrication shop, which will produce modules for the oil
industry in Western Canada, and structural steel for commercial
and industrial projects across the western half of North America.
The shop covers 80,000 square feet, and the offices another
18,000 square feet.
Construction of the complex at the site off of U.S. 87, about
100 miles south of the Montana-Alberta border, began in April
2013 and ended in January. Plans include construction of a
56,000-square-foot specialized paint shop in 2014.
“It was the size that made it unique,” said Jeff Albrecht, project manager for general contractor James Talcott Construction
Inc., a member of the MCA. “From a design standpoint, one
thing that this size of building needed to address was the combination of moving overhead crane loads in conjunction with the
wind loads. Thus, a unique feature of the structure is some kickers on the leeward side of the building.”
The cooperation between James Talcott and the subcontractors was exceptional, said Dan Rooney, general manager of the
ADF facility in Great Falls.
“That really gave us the successful outcome that we have,”
Rooney said. “With eight-and-a-half to nine months of work to
get a 100,000-square-foot building up and operational, it definitely was an accelerated project. The cooperation is what made
it happen.”
Among the array of MCA members involved in the project,
Shumaker Trucking and Excavating of Great Falls did the site
work, and in the process, brought in more than 250,000 tons of
aggregate.
“We did the sewer, the water, the storm drains, the site excavation, gravel, paving, curb and gutter,” said the firm’s Joe Aline.
24
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“We’ve never graveled 100 acres
before. Usually, we do roads—long and
straight, not one big 100-acre piece. Those
don’t come along very often.”
Shumaker’s mobilization costs were
practically nil because the company’s site
is next to ADF’s.
“We’ve never had a job where the
mobilization was right out our back
door,” Aline said.
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height of the shop building, about 50 feet,
was a unique aspect of the job.
“Getting the work done to that elevation presented some challenges for us,”
said Belnap, whose firm had four to 12
people on the ADF project, depending on
Hammerquist
Casalegno
General Contractor
the day. “We brought in some articulated
boom lifts to do our work.”
In addition to the heating and cooling,
Central worked on the piping for delivery
of gasses used in the shop’s cutting and
welding processes.
ADF has “some very high-tech equipment that they use,” Belnap said. “It’s
quite the facility.”
Work by TC Glass Inc. included
installing 22 office windows. In the lobby
John Casalegno
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“big glass” look, said Cody Habel, estimator and project manager for TC Glass,
which had three people working on the
ADF project. Above the curtain wall, TC
installed a raised, aluminum panel.
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ADF, based in Terrebonne, Quebec,
north of Montreal, plans to employ hundreds of people at the Great Falls facilities.
They include welders, machine operators
and fitters. The company and Great Falls
College Montana State University have
collaborated to customize some aspects of
the college curriculum, to help supply the
trained workforce that ADF needs.
“This is going to be a big shot in the
arm for Great Falls,” said Shumaker’s
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27
Study shows coal dust from
trains not harmful
By Rebecca Colnar
Coal train near Helena. Photo courtesy of the Montana Coal Council.
Coal is an essential natural resource to
claiming dust from coal trains passing
study using their scientists to deter-
provide energy to the world. However,
through towns is harmful to human
mine whether or not coal trains emitted
environmental groups have been tout-
health. Due to those claims, in spring
dust along railways, and if so, verify if
ing the detriment of coal, opposing the
2012, the Missoula City-County Health
it was harmful to human health. The
construction of West Coast ports, and
Department (MCCHD) conducted a
study found no evidence that coal dust
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In 2013, BNSF
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coal to destinations
across the country.
was escaping from passing trains and
Coal train close. Photo courtesy of the TSRIA.
concluded even if it was, it would be
classified as nuisance dust—which
does not meet the particulate size
“Based on our understanding of
Bison Engineering concluded. They cited
determined by the EPA to be harmful to
the measures taken by the coal mines
that the Spokane Clean Air is confident
human health.
to reduce the emission potential of coal
rail cars with coal will not be an issue for
Enter the Treasure State Resource
dust from railcars, and the results of the
air quality impacts.
Industry Association (TSRIA) who
limited study conducted by MCCHD in
“Bison Engineering’s report on
contracted with Bison Engineering to
the Missoula Valley, we find it unlike-
the Missoula City- County Health
confirm methods used in the MCCHD
ly coal dust emissions generated by the
Department’s study confirmed there is
study were appropriate and followed
public transportation of coal by railway
practically no dust escaping from trains,”
scientific methodology.
will have health impacts on the public,”
notes Mark Lambrecht, executive direc-
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Photo courtesy of the BNSF.
tor of the TSRIA. “Our shippers in the Powder River Basin have
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the load is shaped makes it more aerodynamic and guards against
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load to create a crust on the top of each load to prevent dust from
is also a financial benefit.
“Coal is bought at volume at the point where it’s loaded. It’s
in the buyer’s best interest to keep the coal in the cars.”
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comed the TSRIA report saying, “This
enhance the likelihood that the Otter
report and Missoula City-County Health
Creek coal tracts will be developed or
initiated
Department’s original analysis brings
that another Montana mine will gear up
review of the
science and facts to the debate about
to take advantage of the export opportu-
Missoula City-
transporting coal. The results speak for
nity,” says Clinch.
County Health
“[The] TSRIA
the
He believes whether ports can con-
Department study
In 2013, BNSF shipped 240,000 car-
tinue to be built is currently dependent
to help the public
loads of Montana coal to destinations
on the findings in the environmental
understand the
across the country.
impact statement being conducted
facts about coal—that it is safely mined and
themselves.”
Mark Lambrecht, executive
director of the TSRIA.
Bud Clinch with the Montana Coal
by the U.S. Army Corps of Engineers
transported and provides a tremendous
Council agrees the dust issue is a way to
and the Washington Department of
amount of revenue for our communities
stop more coal development in Montana
Environmental Quality.
and schools,” Lambrecht concluded. q
and put the brakes on port development.
“Of the 11 train loads of production
per day from Montana coal mines, only
about three are transported westward
by rail. The majority of our coal goes
to the upper Midwest, and there has
been no opposition or allegations about
coal dust from communities along that
travel route. The ‘coal dust’ issue is tied
directly to the export issue and the fear
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Montana Energy 2014 opening keynote speaker
The end of peak oil
By Robert Bryce
These are lousy times to be in the peak
lasted a year. In 2013, domestic oil pro-
oil cult.
duction jumped by one million barrels
In 2012, U.S. oil production rose by
per day, another record.1
790,000 barrels per day, the biggest
In October 2013, U.S. oil exports
annual increase since U.S. oil produc-
– yes, I said exports – hit an all-time
tion began in 1859. That record only
record of four million barrels per day,
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that’s triple the volume exported in
October 2007.2
Similar growth has occurred in the
natural gas sector. In 2012, domestic
natural gas production averaged 69 billion cubic feet per day, a record, and
a 33 percent increase over the levels
achieved back in 2005. 3 That was the
year that Lee Raymond, the famously
combative former CEO of ExxonMobil,
declared that “gas production has
peaked in North America.”4
What has happened? Why is the
U.S. oil and gas sector, an industry
that’s been repeatedly left for dead
over the past few decades, having such
remarkable results? The short answer:
innovation.
Over the past century or so, oil and
gas drilling has been transformed from
an industry dominated by hunches and
wildcatters to one that is more akin to
the precision manufacturing that dominates aerospace and automobiles. The
convergence of a myriad of technologies—ranging from better drill rigs and
drill bits to robotic rigs and nanotechnology—is allowing the oil and gas sector to produce staggering quantities of
energy from shale formations. Those
formations were once thought to be
inaccessible or bereft of hydrocarbons.
That innovation could n’t have
happened at a better time. With the
U.S. economy still showing lackluster growth, the oil and gas sector has
added thousands of new jobs and
spurred enormous economic growth.
Last year, Wallace Tyner, an energy
economist at Purdue, estimated the
impact of the “shale gale” on the U.S.
economy at $473 billion per year. That’s
an addition of about 3.6 percent to the
U.S. GDP.
The shale gale happened because as
Buddy Kleemeier, the former head of
the Independent Petroleum Association
of America, has memorably put it, the
U.S. has about 9,000 independent oil
and gas companies, “ none of whom
know how to say they don’t know
how.”
The innovation that is stoking the
resurgence of the American oil and gas
sector can be seen in Montana. In 2012,
Montana’s oil wells produced an average of 26,500 barrels per day. That’s
about the same amount as the state produced back in 1986.5 If peak oil were as
big a problem as the fearmongers have
claimed, then the state’s production
should have been on a long downward
trend. Instead, the state’s drillers keep
finding new tools that allow them to
produce more hydrocarbons faster and
cheaper.
Advocates of renewable energy like
to point out that in 2012, some $270
billion was spent globally on “clean
energy.” 6 But spending on oil and
gas exploration dwarfs what is spent
on renewables. In 2012, global drilling expenditures totaled $1.2 trillion,
nearly 4.5 times the amount spent on
alternative energy. Trillions more were
spent transporting, refining, and delivering oil and gas to consumers.
The results of all that spending can
be seen in the numbers: Between 1949
and 2010, oil and gas companies drilled
more than 2.6 million wells in America.
Over that same period, they reduced
their dry holes drilled from 34 percent
to 11 percent. And the percentage of dry
holes being drilled continues to fall.
Today’s hydrocarbon hunters are so
precise that they can drill wells that
are two miles deep, turn their drill bit
90 degrees, drill another two miles
horizontally, and arrive within a few
inches of the targeted pay zone. The
technical prowess of the drilling sector has been proven twice this month
with announcements of major discoveries in the Gulf of Mexico. Anadarko
Petroleum and its partners have found
a huge field in what’s known as the
Lower Tertiary trend, containing as
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11/6/2008 8:19:39 AM
much as 3.7 billion barrels of oil equivalent. The well was drilled to a depth
of 31,000 feet below the ocean floor in
5,800 feet of water. 7 A few days later,
Chevron announced a similar find in
the Lower Tertiary with a well that was
drilled to about the same total depth.8
In the wake of the Deepwater Horizon
disaster, the offshore oil and gas sector has repeatedly been demonized.
Nevermind that the industry is conducting the marine equivalent of the space
program. A bit of history: in 1947, the oil
industry drilled its first offshore oil well
out of the sight of land.9 The Kermac 16
well, located off the Louisiana coast, was
drilled in 20 feet of water.
Back in 1947, the billions of barrels
of oil in the Lower Tertiary may as well
have been located on the dark side of
the moon.10 The industry simply did not
have the technical ability to tap all that
energy. Today, companies like Anadarko,
Chevron, Petrobras, and others are routinely drilling in water depths of 6,000
feet or more. They are leasing drill
ships costing $600,000 or more per day
because the global economy demands the
super-high-density transport fuels that
can be refined from crude and the superclean heating and electricity that can be
derived from natural gas.
In 1929, the economic historian
Abbott Payson Usher wrote that, “the
limitations of resources are relative
to the position of our knowledge and
of our technique.” The limits of available resources “recede as we advance…
at rates that are proportionate to the
advance in our knowledge.”11
The advances in knowledge that are
occurring in the oil and gas sector are
allowing us to keep energy cheap and
abundant. And, that’s very good news.
We won’t hit peak oil until we hit peak
imagination.
Robert Bryce is a senior fellow at the
Manhattan Institute. His fifth book, Smaller
Faster Lighter Denser Cheaper: How
Innovation Keeps Proving the Catastrophists
Wrong, will be published on May 13, 2014.
34
http://fuelfix.com/
1
blog/2013/12/26/2013-oil-boom-isbiggest-ever-data-shows/
2
http://www.eia.gov/dnav/pet/pet_move_
exp_dc_NUS-Z00_mbblpd_m.htm
3
Oil and Gas Journal, “Marketed Natural
Gas Production,” January 7, 2013, 34.
4
Reuters, “Exxon Says N. America Gas
Production Has Peaked,” June 21,
2005, http://www.reuters.com/article/
Utilities/idUSN2163310420050621.
5
http://www.eia.gov/dnav/
pet/hist/LeafHandler.
ashx?n=pet&s=mcrfpmt1&f=a
6
Bloomberg New Energy Finance,
“New Investment in Clean Energy
Fell 11% in 2012,” January 14, 2013,
http://about.bnef.com/2013/01/14/newinvestment-in-clean-energy-fell-11in-2012-2.
7
http://www.foxbusiness.com/
news/2013/03/19/anadarko-partnersannounce-us-gulf-mexico-oilfind/#ixzz2OCnloxY5. Tudor,
Pickering, Holt & Co., a Houstonbased investment banking firm
estimates the Shenandoah-2 discovery
has 3.7 billion barrels of oil equivalent.
8
http://fuelfix.com/blog/2013/03/25/
chevron-finds-oil-more-than6-miles-below-sea-level/?utm_
source=twitterfeed&utm_
medium=twitter
9
That well was drilled about 43 miles
south of Morgan City, La. See Joseph
A. Pratt, Tyler Priest, and Christopher
J. Castaneda, Offshore Pioneers: Brown
& Root and the History of Offshore Oil
and Gas (Houston: Gulf Publishing
Company, 1997), back cover.
10
Halliburton, “Brown & Root
and Kerr-McGee Celebrate 50th
Anniversary of First Producing
Offshore Oil Well Out-of-Sight-OfLand,” November 14, 1997, http://
www.halliburton.com/news/
archive/1997/bresnws_111497.jsp.
11
Abbott Payson Usher, A History of
Mechanical Inventions, (New York: Dover
Publications Inc., 1982), 9. q
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35
Montana Energy 2014 keynote speaker
Energy industry offers diverse opportunities
in the oil fields and beyond
MDU Resources president
Dave Goodin looks to Montana
for reliable contractors
By Laura Bailey
Last fall, Dave Goodin, president and
labor. Carpenters, welders, electricians …
CEO of MDU Resources, contributed
the list goes on and on.”
to a panel discussion at the Montana
Goodin should know. MDU Resources
Economic Development Summit in Butte.
is one of the major players in the energy
During his presentation, he was asked
industry in Montana and the Dakotas.
a question he’s been asked dozens of
times.
MDU Resources operates an oil and
gas exploration and production business,
“What kind of work is available in the
Bakken?”
a natural gas pipeline business, a construction materials and contracting busi-
His answer hasn’t changed in all the
years he has faced the question.
“When it comes to Bakken job oppor-
ness, and a construction services business
specializing in providing essential energy
infrastructure.
tunities, all services are in demand,”
Spend an hour in Williston and it is
Goodin said. “Skilled labor. Unskilled
obvious the opportunities that exist there,
Dave Goodin, president and CEO of MDU Resources.
but what is not as obvious are the opportunities the Bakken play presents for companies providing niche products or support services to the oil and gas industry.
Entrepreneurs throughout Montana are
finding ways to tap the local labor force
they have at the ready in their hometowns
and provide goods and services to the oil
fields. The growth on the fringes of the
industry has been huge, Goodin said.
“You don’t have to be living in the
Bakken to benefit from the economic
opportunities there,” he added.
Montana contractors are a good example of how companies are prospering both
in the Bakken and on its fringes. With
Diversified Materials & Construction LLC
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two rigs in the Bakken, Goodin said MDU
Resources relies heavily on private contractors to prepare drilling sites and help
keep things running smoothly. Montana
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fields building new homes, businesses
contractors are also at work in the oil
and motels, reconstructing highways and
36
county roads, and supplying materials to
Although the outcomes of these
construction sites across the Williston
federal initiatives are still unknown,
Basin.
stability for local and national economies.
what is certain is that growth in the oil
“ The energ y industr y provides
“We rely on contractors in all special-
and gas industry and related services
long-lasting, steady employment with
ties for virtually everything we do, so it
is only bound to continue, and with
good-paying jobs at household sup-
is critical for us to have a robust group of
it comes opportunity, prosperity, and
porting wages,” he said. q
contractors we can rely on,” Goodin said.
MDU Resources’ roots run deep in
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Montana. The company started in 1924
as a small electric utility on the North
Dakota/Montana state line. Today, MDU
Resources is a multi-billion dollar corporation with operations in 44 states. MDU
Resources is still in the utility business,
serving more than a million customers
with electric and natural gas services in
eight states, including Montana.
Expansion of the oil and gas industry
in Montana is part of MDU Resources’
development plan, and Goodin and his
colleagues in the industry are watching the Federal Lands Jobs and Energy
Security Act as it makes its way through
the legislative process. It’s presently
stalled in the House, but it proposes to
streamline government processes that are
blocking and delaying energy production
by reforming the leasing process for projects on federal lands.
“We support reasonable, responsible
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energy development on federal land,”
Goodin said.
Also among Goodin’s concerns are
barnard-inc.com
state efforts to come up with a plan to
conserve the greater sage-grouse, a species that the federal government has
deemed “warranted but precluded” from
listing as an endangered species. For the
past year, a committee appointed by the
governor has been developing a statewide
plan for conservation of the birds and
their prairie habitat. If approved by the
U.S. Fish and Wildlife Service, it could
have a chilling effect on oil and gas development, as well as construction.
“We’ve been operating in Montana for
90 years, so we’re clearly concerned as
to how the state plan is developed, and
we’re providing a voice in that process,”
Goodin said.
dams & reservoirs | hydropower | tunnels | power transmission | oil & gas pipelines | environmental
37
NorthWestern Energy has big plans
for infrastructure and expansion
Company seeking
approval to purchase
11 hydroelectric
facilities
By Laura Bailey
Robert Rowe, president and CEO of NorthWestern
Energy.
When talk turns to energy in Montana,
ral gas to about 673,200 customers in
and natural gas infrastructure,” said
conversation is bound to include
Montana, South Dakota, and Nebraska.
Robert Rowe, president and CEO of
NorthWestern Energy, the state’s larg-
“ O u r f o c u s a t N o r t h We s t e r n
NorthWestern Energy. “We’re heavily
est energy provider. NorthWestern
Energy is the long-term investment
focused on serving our customers and
Energy delivers electricity and natu-
in the development of basic electric
our communities, and we believe that
when our customers and our communities are doing well, we’re doing well.”
NorthWester n Energ y employs
about 1,200 people in Montana, and
hires about 300 private contractors
a year for various projects, including construction, tree trimming, and
line work. The economic impact of
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NorthWestern Energy’s basic operations in Montana is around $979 million annually, Rowe said.
The company is focused on investing
on essential infrastructure, and several
large-scale capital improvement projects are on tap for 2014.
The
Distribution
System
Infrastructure Project (DSIP) is a sevenyear investment in natural gas and electric distribution. NorthWestern Energy
maintains about 30,000 miles of electric infrastructure, including about half
a million poles, and about 10,000 miles
of natural gas infrastructure. All of it
220 22nd Avenue | Havre, MT. 59501 | T: (406) 265.9401 | F: (406) 265.5693 | E: [email protected]
38
needs regular upkeep and replacement
of outdated equipment. The project
started in 2011, and the overall cost is
NorthWestern Energy is a diverse
Even with NorthWestern Energy’s
expected to be about $370 million. It
energy company, generating power
ongoing investment in infrastructure,
should provide an economic impact of
using coal, natural gas, wind, and, soon,
customers are not seeing increased
more than $574 million in Montana, he
hydroelectric.
rates.
said.
NorthWestern Energy is in the pro-
“We’ve been able to balance invest-
This spring, work is starting on
cess of seeking approval to purchase 11
a new ge neral operations build-
hydroelectric facilities from PPL. The
ing in Uptown Butte. Dick Anderson
total cost is expected to be about $900
Construction is contracted for the proj-
million, and the facilities have the capac-
ect, which is expected to cost about
ity to generate 633 megawatts of power
customers has increased from about
$24 million. The office houses about
per year. Although the acquisition isn’t
$900 million to over $1.5 billion at the
200 NorthWestern Energy employees,
expected to generate any new jobs, it will
end of 2012 – an average annual growth
and is the main base for Montana oper-
provide more stability to NorthWestern
rate of just under 15 percent. During
ations.
Energy customers, and Rowe said the
that same period, a typical Montana
Another big project already under-
energy produced at the facilities will be
way is an upgrade of the line between
sold to Montana customers based on the
residential electric bill increased on
Four Corners and Big Sky. When fin-
cost of producing the power rather than
ished, the 37-mile $34-million project
market prices, which can be volatile.
ments with cost impacts,” Rowe said.
Since 2008, NorthWestern Energy’s
rate base investment to serve Montana
average by one percent annually, and
a typical Montana residential gas bill
decreased by an average of 11 percent
will increase capacity and provide reli-
NorthWestern Energy is the largest
able power to the growing Big Sky area.
taxpayer in the state of Montana, con-
Another large project is the installation
tributing almost $94.7 million a year,
“Over the next few years, we’re
of a new transmission line in Stillwater
and that total is expected to increase sig-
going to continue to invest in the dis-
County, including construction of a
nificantly with the purchase of the new
tribution of both natural gas and elec-
new substation.
hydroelectric facilities.
tricity,” Rowe said. q
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39
Cloud Peak
Energy CEO
shares ties
between
mining,
construction
By Rebecca Colnar
Cloud Peak Energy CEO
Colin Marshall.
The construction and energy industries share several commonalities,
one being that they use large equipment for potentially dangerous work
while providing a cr ucial ser vice.
Contractors construct homes, hospitals, schools and office buildings,
while the energy sector provides electricity that keeps lights burning, food
cooking, heaters heating and computers computing. One energy company
that is doing its part to meet western
energy needs is Cloud Peak Energy
(CPE). It is the only large surface
mine based solely in the Powder River
Basin, extending across Wyoming and
into Montana, with Spring Creek Mine
being the largest operating mine in
Montana.
Colin Marshall, chief executive officer of Cloud Peak Energy, speaks highly of the relationship between the two
industries.
“In mining and energy production,
ongoing and expansion work often
40
requires contractors, whether through
road construction, facility building
or upgrading and other projects,”
Marshall explains. “There is normally
a steady f low of contractors working on our sites on a number of projects. In addition, last year Cloud Peak
Energy signed an agreement with the
Crow Tribe to develop coal reserves
totaling more than one billion tons
on the Tribe’s land in Southeast
Montana.”
Marshall says the exploration and
Cloud Peak Energy CEO Colin Marshall in an historic ceremony with Crow Tribal members regarding leasing coal
in southeastern Montana.
other work to get to a decision on
exercising an option and, ultimately
to production, is a multi-year process.
“Ideally, the development of the
Crow Tribe coal resources and our
larger Spring Creek complex would
coincide with the development of new
West Coast export terminal capacity
that would create considerable contractor construction jobs in Montana,
THE MONTANA COMPANIES
of Oldcastle Materials
building the mines, and in Washington
State, developing the port.”
Along with expanded constr uction opportunities, the two industries
share another commonality—safety.
Last year, the Spring Creek Mine
reached a significant safety milestone,
operating for more than one-million
work hours without a Mine Safety and
Health Administration (MSHA) reportable injur y. The achievement took
more than 500 days to accomplish.
Early in 2014, their Cordero Rojo Mine
reached the one-million work hours
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without a reportable injury.
“ This outstanding achievement
took vigilance and dedication by each
employee during every shift,” notes
Marshall. “Safety is a core value at
Cloud Peak Energy, and we believe there
is no reason for anyone to be harmed
mining coal. We encourage all of our
employees and contractors to be actively
engaged in safe operations. This drives a
proactive approach to prevent incidents
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41
Currently, the coal industry is fac-
America’s global competitiveness,” he
tactics of anti-fossil fuel groups that
ing opposition to coal mining from
explains. “The U.S. has some of the
do not represent the vast majority of
some organizations, a belief which
most abundant natural resources in
Americans.
Marshall quickly counters.
the world, yet is lacking a coherent
“We are concerned that EPA regu-
“Coal remains America’s largest
and balanced national energy strategy,
lations threaten to leave families and
source for safe, reliable and affordable
which is critical to move our country
businesses with higher electricity
electricity. Our country needs a fair,
back on a path toward growth and
bills and push jobs, investments and
predictable and balanced regulatory
prosperity.
important energy research and devel-
framework that encourages, not pre-
Marshall believes America’s energy
opment overseas. The energy sector
cludes, investments in modern, clean-
future is too important to be decided
has become something of a ‘ political
burning, coal-fueled power plants
by seemingly endless EPA regulations
football’, so making decisions based
to support future generations and
and highly coordinated, well-funded
on economics and sound environmen-
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2546 Highway 87 E • Billings MT 59101
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How CPE contributes to Montana
In 2012, Cloud Peak Energy added more than $20 million to Montana’s economy through goods, services and
contributions. In addition for 2012, Cloud Peak Energy paid $57 million in taxes and royalties that went to
Montana and local governments in the state. Cloud Peak Energy is a major supporter of higher education in
Montana. In addition to over $100 million dollars they have paid in taxes since 2011, Cloud Peak Energy has
directly contributed over $180,000 to Montana higher-education institutions, and actively recruits graduates
from Montana colleges and universities, offering challenging, high-paying jobs.
tal policy is increasingly difficult,” he
laments.
Marshall encourages those involved
in the energy sector to educate the
public about mining. “Our coal generates safe, reliable and affordable electricity, and we are proud of our work.
Unfortunately, there is a significant
amount of misinformation spread by
opponents of fossil fuels, so countering that with accurate information is
vital,” he says.
To promote understanding of the
industry, CPE offers mine tours so
opinion leaders can see their operations firsthand and learn that Powder
River Basin coal, with its low-sulfur
content, has played an important role
in helping reduce acid rain caused
by sulfur dioxide. In addition, utilities are playing an important part
with 90 percent of U.S. coal power
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Public support for energy development is critical to moving forward,”
Marshall concludes. q
43
The sage-grouse conundrum
By Steve Wade and Jessie Luther
Sage-grouse are a hot topic recently for
environmentalists and industry. The
reason? By September 2015, the U.S.
Fish and Wildlife Service must make
a determination based on state sagegrouse management and conservation
plans whether to list the bird under the
Endangered Species Act.
Montana, along with other sagegrouse-inhabited states, has been crafting a sage-grouse management and conservation plan in an effort to preclude
ESA listing. All parties agree that a listing should be avoided. Over the last 10
months, Montana’s Greater Sage-Grouse
Habitat Conservation Advisory Council,
appointed by Governor Bullock, studied
the issue and formulated a strategy for
conservation of Montana’s sage-grouse.
The strategy plan was submitted to the
governor on January 29, and if it meets
with his approval, an executive order
requiring compliance with the plan may
be issued.
This matters to contractors because
Montana has one of the largest sagegrouse populations and several million
acres of sage-grouse habitat (see map).
Of identified threats to sage-grouse and
its habitat, regulation of industry is the
“easiest” threat to address and mini-
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mize. Other threats, such as fire, predation and disease are more difficult to
control or prevent. The plan divides the
state’s habitat into core areas and general areas.
Sage-grouse populations are linked
to the availability of suitable habitat—
unfragmented patches of sage brush
with other grasses and forbs providing
food and cover. The proposed plan places restrictions on development in sagegrouse core habitat, general habitat, and
connectivity areas that may significantly
hamper development. As contractors,
you could see significant impacts to the
siting and permitting operations in the
areas shown on the sage-grouse habitat
map.
Restrictions in core and general habitat seek first to avoid development that
may impact the bird. If surface disturbance is unavoidable, minimizing the
size of surface impact is next considered, followed by pre-development mitigation off-sets to reduce the existing
45
By September 2015, the U.S. Fish
and Wildlife Service must make a
determination based on state sagegrouse management and conservation
plans whether to list the bird under
the Endangered Species Act.
human footprint, such as conservation
no surface disturbance cap. Noise and
members feared absence of a federal law
banks, habitat exchanges, or approved
seasonal restrictions are similar to those
setting minimum standards for sand
conservation plans.
in core areas.
and gravel mining would fail to protect
Core areas, those deemed the most
Restrictions specific to opencut
sage-grouse should current Montana
critical, have a No Surface Occupancy
gravel mining for both core and general
law change, and no imposition of new
(“NSO”) restriction within one mile of
habitat may be governed through the
an active sage-grouse breeding ground
Department of Environmental Quality’s
restrictions would only serve to “solidi-
(“lek”), and surface disturbance is lim-
Opencut Mining Act. The proposed
ited to five percent of suitable sage-
plan would require sage-grouse specific
grouse habitat. During breeding sea-
considerations to be added to already-
son (March 15-July 15), production and
required operations plan, reclamation
development is prohibited, but main-
plan, and reestablishment of vegetation
tenance is allowable except from 4-8
in the permitting process. For specifics,
a.m. and 7-10 p.m., and noise levels
see Montana Code Annotated § 83-4-
cannot exceed 40 dBA above ambient
401 et seq. and Administrative Rules of
noise from 6 p.m. to 8 a.m. Roads used
Montana 17.24.201 et seq.
fy ‘business as usual’”.
However, while not yet mandatory, it
is likely sand and gravel operations will
be subject to the new general restrictions in core and general habitat, discussed above. Is it better to accept these
potentially unduly restrictions on development in sage-grouse habitat or risk an
ESA listing?
for transport are prohibited within two
A Minority Committee Report re–
miles of a lek, and maintenance and
quests thorough review of the standards
Steve and Jessie are attorneys at Browning,
access roads must be a minimum of one
for sand and gravel mining in the con-
Kaleczyc, Berry, & Hoven, P.C. that represent
mile from an active lek. General habitat
servation plan to ensure adequate pro-
the Montana Contractors’ Association and its
has a 0.25 mile NSO around a lek, but
tection of sage-grouse. These council
members on various matters. q
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Ash Grove Cement Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Barnard Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Bio Seal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Blue Cross & Blue Shield of Montana . . . . . . . . . . . . . . . . . . OBC
Bnsf Railway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Bouma Truck Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Bricklayers & Allied Craftworkers. . . . . . . . . . . . . . . . . . . . . . . . 42
Browning Kaleczyc Berry & Hoven . . . . . . . . . . . . . . . . . . . . . . 34
Central Plumbing & Heating Inc.. . . . . . . . . . . . . . . . . . . . . . . . 41
Century Companies, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Cummins Rocky Mountain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Dick Anderson Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Dick Irvin, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Diversified Materials & Construction LLC . . . . . . . . . . . . . . . . . 36
Donaldson Bros. Ready Mix. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Door Systems of Montana Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 44
Dowl HKM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Duneman Contracting Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
First Interstate Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
First West Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Fisher Construction, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
46
H & E Equipment Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Hammerquist Casalegno LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Huppert Construction Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Interstate Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Interstate Power Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Klj . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Lafarge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Lakeside Excavation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Marks Lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Martel Construction Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
MDM Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
MK Weeden Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Montana Contractors Compensation Fund. . . . . . . . . . . . . . . . 35
Montana Department of Labor & Industry. . . . . . . . . . . . . . . . . 4
Montana State Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Morrison-Maierle Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Mountain West Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
NorthWestern Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC
O’Keefe Drilling Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
PayneWest Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Pierce Flooring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Pierce Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Pioneer Technical Services, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 10
RDO Equipment Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Sage Technical Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Sime Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Sowles Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Steel Etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Stockman Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Storm Water Construction, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Swank Enterprises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Tetra Tech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
The Montana Companies of Oldcastle Materials . . . . . . . . . . . 41
Titan Machinery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Tmc Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Tractor & Equipment Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC
W.R. Drinkwalter & Sons Trucking. . . . . . . . . . . . . . . . . . . . . . . 42
Walker Excavation, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Westate Machinery Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Whetzel Concrete Construction . . . . . . . . . . . . . . . . . . . . . . . . . 35
Worldwide Rental Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
WWC Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Xylem Dewatering Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
MORE
POWER.
LESS FUEL.
If you are looking for a large machine to do more work with less fuel, look no further than
the new 336E H, the industry’s first hydraulic hybrid excavator. This unique machine uses
recovered energy from the swing to load your trucks all-day long using up to 33 percent
less fuel than our powerful 336D machine doing the same amount of work.
More important than being first is being best at delivering the most production with the
least amount of fuel to reduce your overall costs and make your business more profitable.
Bottom line is the new 336E H is designed to put more money in your pocket while making
you more competitive, and that’s good news for you, your family, and your customers.
For more information on the new 336E H Excavator, contact your Western States or
T&E Sales Representative today!
Billings
406-656-0202
Bozeman
406-585-5800
Great Falls
406-761-7900
Helena
406-442-2990
Missoula
406-721-4050
Kalispell
406-752-3030
© 2014 Caterpillar All rights reserved. CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are
trademarks of Caterpillar and may not be used without permission. www.cat.com www.caterpillar.com

APRIL 2-3,2014 BILLINGS, MT - Montana Contractors Association

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