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Page 14 of 59

800-6 4 6- 7353 217 Yellowstone Ave, West Yellowstone, MT 59758 Get away from it all. For an action-packed adventure, come to West Yellowstone. All the trails and powder you can handle. Authorized Concessioner LODGING, RESTAURANT, C L O T H I N G R E N T A L S AND S N O W M O B I L E AFTER A HARD DAY'S RIDING, RELAX AT WEST YELLOWSTONE'S SNOWMOBILE HEADQUARTERS. ➤ continued, Pg 16 Despite oil production of a million barrels a day, North Dakota is home to only a single operating oil refinery. That lone operation is the Tesoro refinery in Mandan, which is now converting about 71,000 barrels of shale oil into commercial products each day, mainly turning out diesel fuel, jet fuel, heavy fuel oil and liquefied petroleum gas. It's been in operation since 1954, coming into existence only a few years after oil drilling in North Dakota got underway. At this point, the Mandan facility is refining just six percent of North Dakota's daily oil output. Meanwhile, demand for refined products in North Dakota is soaring. To catch up with surging production and internal demand, two more refineries are now under construction. However, they're much small- er. Each of the two new facilities has been designed to handle only 20,000 barrels of oil per day. Moreover, construction will span almost two years, which means it's unlikely either site will begin refining op- erations before the start of 2015. They will turn shale oil primarily into diesel fuel, naphtha and natural gas for the North Dakota market. Meanwhile, it should be noted that no new oil refineries have been built in the US for several decades. Many existing refineries have been expanded, but new facilities have not appeared. Hence, North Dakota is breaking an unfortunate trend that should have been broken long ago. But opposition to energy-related projects in other states has been intense, and it wasn't until recently that oil production in North Dakota was high enough to ensure the success of a refinery in the state. Fortu- nately, North Dakota isn't going to miss this opportunity. Calumet Specialty Products Partners (stock symbol CLMT) and MDU Resources (stock symbol MDU) formed a joint venture to build and op- erate a facility that's been named the Dakota Prairie refinery. Ground- breaking on the 375-acre Dickinson, ND site occurred last March. The cost of the project is estimated at $300 million, which the two backers have committed to contributing. When up and running, the plant is expected to generate EBITDA (earnings before interest, taxes, depre- ciation and amortization) of $35-$45 million. NORTH DAKOTA Breaking Ground in by CHRIS BISCHOF Oil Refining

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