New Refinery Floated for Western North Dakota

by John Hageman (The Dickinson Press) A new refinery has been proposed for oil-rich western North Dakota, prompting questions from a local township chairman.

AIC Energy Corp. filed an application earlier this month with Williams County planning and zoning officials. It described the so-called "Bakken Oil Refinery" as a 28,000 barrel-per-day biofuel facility located along Highway 1804 southwest of Trenton near the Montana border.

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The refinery would use Bakken oil and "various locally sourced fuel feedstocks including agricultural products and waste oils," according to an AIC executive summary provided by county officials. Its primary customers would be "advanced manufacturing and commercial enterprises," and its products would include diesel, kerosene, gasoline and biofuels.

AIC said the refinery would provide at least 12 permanent jobs and 14 to 16 "support staff" on top of a minimum of 200 construction jobs.

"This project, if developed, could dovetail with our efforts to diversify our regional economy and increase the region's economic resilience," Everette Enno, executive director of the Tri-County Regional Development Council, wrote in an endorsement letter included with the application materials. But Mike Casler, chairman of the Buford Township board, raised skepticism about the project due to AIC's apparent ties to Chinese firms and the potential effects on a creek that he described as a tributary to the Missouri River.

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(John) Melk, the company's president, is an enrolled member of the Turtle Mountain Band of Chippewa whose work history includes managing the Mandan oil refinery "for three major turn-around retrofit upgrades," according to AIC's website.

AIC's website summarizes its involvement in oil and gas exploration and development in China and Kyrgyzstan as well as a seismic survey to identify potential oil and gas resources in Montana.

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Ron Ness, president of the North Dakota Petroleum Council, said he was unaware of AIC’s plans. He said it typically makes more sense to ship raw crude oil out of the state to be refined, but North Dakota could find a niche market in meeting regulations like California’s low carbon fuel standard. READ MORE