Oil boom coming to Minot
Commission OKs temporary chemical, explosive storage by oil-field companyBy JILL SCHRAMM, Staff Writer jschramm@minotdailynews.com
Fact Box
An Iowa developer is proposing to build a 60-unit, extended-stay hotel north of the Minot airport to accommodate Minot's growing oil-field work force.
The Minot Planning Commission is recommending the Minot City Council approve the hotel, to be located at the northeast corner of 36th Avenue Northeast and North Broadway.
The purpose of the project is to address the city's need for temporary housing, developer Marshall Goodman of Ankeny, Iowa, told the planning commission Monday.
In information provided to the commission, the developer noted Minot will be in the center of oil-field activities in the coming years. Minot is expected to become home to more than 10 percent of the in-migration to western North Dakota. Based on that estimate, Minot could become home to 5,000 or more employees involved in oil and related oil-field jobs.
The hotel project would provide temporary, furnished residences with attached garages for four- to six-month stays. Each unit would have a kitchenette and laundry facilities.
An oil-field company interested in storing chemicals and explosives in north Minot received conditional support from the Minot Planning Commission Monday.
There was no public opposition to the request from Integrated Production Services, a sister company to Pumpco, which is locating in Minot's Great Plains Energy Park.
Minot's fire officials were cautious about the project, although they recognized the location, 5220 N. Broadway, is the best IPS could find on an interim basis. The project is a sign of oil activity coming into Minot more quickly than the facilities can be built to accommodate the industry.
"I have concerns simply because we are storing explosives, methanol and toxic substances inside a building that doesn't have a sprinkler system. There's no fire alarms," said Ed Hausauer, fire marshal. "But I do recognize the fact that IPS needs to get up and running. I would support this only for a temporary basis at best. Long-term, IPS is going to need to get into a better facility in a more appropriate zone."
Fire officials expressed similar reservations when the city granted a permit to Pumpco in July to store oil-field chemicals in large quantities on property in northwest Minot until its permanent facility could be built. The storage was necessary to enable Pumpco to start its operations immediately and not wait for its new facility.
Tom Cashell, representing the Wyoming-based company, said IPS plans to co-locate in the new Pumpco facility, currently under construction. If that doesn't work out as planned, IPS will find another, more suitable location within a year's time.
The planning commission is recommending the city council approve the permit for only a year, that the fire department conduct regular inspections and that IPS return in six months to provide the city with an update on its future location plans.
Officials with IPS explained that the explosives used by the company are largely of a type that pose a minor chance of hazard. Detonators will be stored and transported separately from the explosives. Explosives are used in perforating casings used in oil drilling.
Methanol will be stored in an above-ground, 1,000-gallon tank with a secondary containment system. Another product used for treating water in fracturing wells will be stored in a 330-gallon plastic tote. All the facilities will be fenced and locked.
Other oil-field companies and private storage are located in the condominium-style building where IPS proposes to set up operations.
City administration offered the only objection to the plan.
Alan Walter, public works director, said the city's concern is the proximity of housing less than a quarter of a mile away.
