Tag Archives: Davis Refinery Belfield North Dakota

Update On Confusion About Proposed Davis Refinery West Of Belfield, North Dakota

In February of 2017, I wrote a blog post titled “Confusion About Proposed Davis Refinery West Of Belfield, North Dakota”.  I wrote this blog post, because I was so sick of the hype surrounding the Davis Refinery.  I was disgusted at North Dakotans, for not being able to tell the difference between fact and fiction, and being so easily duped.

In this February 2017 blog post, I looked up, and then explained who the Meridian Energy Group was, and who the Davis Family Partners were.  These two entities were founded in roughly 2012, and they had never constructed a refinery before.  I thought that this information would or should cause North Dakotans to slow down, wait a minute, and not get carried away.

I then explained, that the Dakota Prairie Refinery that was completed in 2015 near Dickinson, cost $430 million to construct, and was a joint venture between MDU Montana Dakota Utilities and Calumet Specialty Products.  I explained that the net worth of MDU was $5.28 billion.  After the Dakota Prairie Refinery was completed, it had quarterly losses of something like $7 million, and the refinery was sold to Tesoro.

I didn’t think that I had to break this down any further, but apparently I do:  MDU, which has a net worth of $5.28 billion, didn’t even attempt to build the $430 million refinery without a financial partner.  Then, with $7 million losses each quarter, MDU didn’t want to or couldn’t afford to own this refinery.

Meridian Energy Group originally stated that the Davis Refinery would cost $900 million to construct.  Given that the Meridian Energy Group and their largest investors the Davis Family Partners were created in about 2012, and had never built a refinery before, where was this $900 million supposed to come from?

I did see, and I did include in my February 2017 blog post about the Davis Refinery, a prospectus for investing in the Davis Refinery for the purpose of having money to start the project which read, “The proceeds from this Offering will provide Meridian with the working capital to acquire the necessary permits, secure project financing and perform all pre-construction activities to bring the project to “shovel ready” status.”

I didn’t think that I needed to break this down any further, but apparently I do, and this is very, very important:  The Meridian Energy Group was seeking investors in order to have enough money to cover permitting and pre-construction activities.

I do not want to be sued for libel, which can occur when written statements are made that are defamatory, untrue, and presented as statements of fact, so I want to emphasize that this is my personal opinion, not fact:  My opinion is that the Meridian Energy Group might only have $10 million to $40 million in investments and funding.

There have been delays preventing construction of the Davis Refinery, due to permitting, especially the air quality permit.  In order for there not to be further delays, the proposed capacity of the Davis Refinery was reduced, so that a “siting permit” would not be required, which would have involved public hearings.  By July of 2018, all of the permits were approved, and the Davis Refinery construction could begin.

Though construction on the Davis Refinery could begin in July of 2018, some environmental groups have joined together to file court cases in an attempt to stop construction, but there have been no cases that have been heard in court yet.

So has construction on the Davis Refinery begun?  All summer long in 2018, there were many articles about construction getting underway for the Davis Refinery.  From the enthusiastic hyperventilating newspaper articles and energy industry journals, you would have thought that there was going to be a tidal wave or tsunami of construction.

From what I have read, at the site of the Davis Refinery, some site grading has been done, and a site fence has been put up.  I drove to Belfield in July and August to look at houses for sale, and there was nothing going on in Belfield.  There was a fully furnished 3br/1ba manufactured home on its own 75’x140′ lot for $25,000 that no one bought and the price has now dropped to $20,000.  If there were many construction personnel working at the site of the Davis Refinery this Summer and Fall, housing in Belfield wouldn’t be so available and cheap.

I wish that the newspapers and energy industry trade journals would just stop it.  What are you trying to do?  And I wish that North Dakotans would do some reading, some research, and then drive to Belfield to go look at the refinery site.

Drive Directions To Site:  From I-94, exit onto Hwy 85 going south in Belfield.  Take Hwy 85 going south for approximately one mile until you get to 37th Street SW.  Head west on 37th Street SW for approximately 3-1/2 miles, on the north side of 37th Street SW, you will see where some ground has been worked and tilled, this is it.  There is no sign.

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We Could Have A James Bond Movie “Prime Meridian” Right Here In North Dakota

Thirty miles west of Dickinson, North Dakota, just outside of the Theodore Roosevelt National Park, the Meridian Energy Group is planning to build an oil refinery, called the
“Davis Refinery”.

Some environmentalists, residents, and landowners do not want a refinery to be built so close to the National Park.  Some people don’t care either way.  Some people think that this would be wonderful because of the jobs that would be created and the boost to the local economy that would occur.

Not all aspects of the permitting process for the Davis Refinery have been going quickly or smoothly.  The Air Quality Permit review process conducted by the North Dakota Department of Health looks like it is going to end up taking more than a year to complete.  One other possible hold up, could have been the “Siting Permit”.

In North Dakota, if a refinery is expected to have the production capacity of 50,000 barrels per day or more, a “Siting Permit” is required.  The Siting Permit review process is conducted by the North Dakota Public Service Commission.  Part of this permit review process involves public input, at public hearings.

In order for the Davis Refinery project to not have any further delays due to permitting, the refinery developer, Meridian Energy Group, has decided to set its refinery production capacity at 27,500 barrels per day, thus avoiding the requirement for a “Siting Permit” and review by the North Dakota Public Service Commission.

A recent Dickinson Press newspaper article dated December 19, 2017, features a headline photograph of Meridian Energy Group CEO, William Prentice.  William Prentice voluntarily attended a public information gathering meeting at the State Capitol Building in Bismarck, where North Dakota Public Service Commission members asked him questions.

From the photograph of William Prentice, CEO of Meridian Energy Group, and his smooth, polished, measured, and calculated answers to questions, he kind of reminded me of a villain out of a James Bond movie.

At first, I was thinking that William Prentice reminded me of the character “Mr. White” in the James Bond films “Casino Royale” and “Quantum of Solace”.  He does, he does remind me of “Mr. White”, but there was one other character that he reminded me of.

I had to think for a while, but the movie villain who William Prentice most reminds me of, is the character “Victor Maitland” from the the 1984 movie “Beverly Hills Cop”.  This actor who played “Victor Maitlalnd”, also played the James Bond villain “General Orlov” in the 1983 movie “Octopussy”.

Here is a quote from the character “Victor Maitland”:

“Now listen to me, my tough little friend.  I don’t know from under what stone you crawled, or where you get these ridiculous ideas about me, but it seems painfully obvious you haven’t the slightest fucking idea who you’re dealing with.  Now, my advice to you is crawl back to your little stone in Detroit, before you get squashed.  Okay?”

Just for fun, it would have been funny to see William Prentice recite the above paragraph in response to one of the questions from the Public Service Commission at the public meeting in Bismarck at the Capitol.  Not only would it have been funny, maybe they would quit holding up his permits.

Anyway, since we have got William Prentice in this area now, we can have our own James Bond movie.  A working title for this movie is “Prime Meridian” though I don’t know if this will be the final title in the end.

Since I am involved in writing, casting, location, filming, production, and budget, in order to save time and money, I am going to enlist actual real people to play many of the parts, and incorporate actual real places in the scenes.

William Prentice can play the role of  “Mr. White”, part of the secretive organization Quantum, as well as a high ranking member of the Spectre organization.

Ordinarily, I would have had a hard time writing some plot scenario where agent 007 James Bond would come to Belfield, or even Dickinson, however, once British Intelligence MI5 finds out that “Mr. White” is building a refinery, the Davis Refinery, James Bond will certainly need to come to western North Dakota.

An essential part of any James Bond movie, are the “Bond Girls” and “Femme Fatales”.  Upon mentally reviewing my blog post “List Of Attractive Women In Dickinson”, which I continually update, I am relieved to say that I have enough attractive and alluring women.

I have thought this all out, and in order for this movie to be a success, some of the women on my list of attractive women, are really going to have to make some of these scenes memorable and unforgettable.  This starts, by not being difficult, if this is at all possible.  This means, not complaining about the writing and the scenes that I am putting you in.

I will tell more about what is going to happen in future blog posts.