Author: Press Room

Big Surprise for Montana Oil Patch

21 September 2020
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As Continental Resources brings more of its Williston Basin wells back on line, it was surprised to learn that production had sharply increased in Montana after two months of wells being shut in, reported Oil Patch Hotline.

“We turned it back on and the production was double of what it was before we shut it in,” said CEO William Berry. The company said it would bring most of the curtailed Bakken wells back on line by the end of this month. Continental led the early exploration of the Elm Coulee Field in eastern Montana in 2008 and now holds leases on 1.1 million acres there.

“This is a very low permeability reservoir, and you give it time to shut-in, you start seeing it— the reservoir basically recharged the stimulated rock volume area we’ve got around the wells” said President Jack Stark. “And so the fact is, there’s a lot of oil out here.”

Stark and other industry representatives say they expect North Dakota oil production is expected to return to record levels this summer, but they say the resurgence will be slow and steady.

Technology advancements are driving the increase in activity rather than the price of oil, Jack Stark is reported as saying in the Bismarck Tribune.

“This year, there’s no doubt that the Bakken is performing better than ever,” he said. “The rock hasn’t changed. It’s all happened through technology.”

Continental, North Dakota’s top oil producer, only recovered about 3 to 5 percent of the oil early in its Bakken operations. Now, said Stark the company recovers 15 to 20 percent of the oil, with efforts underway to continue increasing that.

As the re-charging of Montana wells indicate, “We’re leaving a lot down there,” said Thomas Nusz, chairman and CEO of Oasis Petroleum.

Erec Isaacson, vice president of Rockies Business Unit for ConocoPhillips, said $65 oil is the new $100 oil, thanks to innovations the industry developed during the downturn.

Best Place to Own Home in Montana

21 September 2020
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The best place to own a home in Montana is in Jefferson County, east of Butte, when comparing the cost of rent to the cost of a mortgage, according to smartasset.com. It takes 3.5 years in Jefferson County to break even, with the cost of rent.

The average monthly mortgage payment is $2,001 while monthly rent is $1,244 and the average home price is $465,243. Yellowstone County is considered the fifth best city in Montana to own rather than rent, with a payback period of 4.1 years.

The average monthly mortgage payment is $1,440 while average monthly rent is $1,332. The averge price of a home in Yellowstone County is $334,775. Other counties in the top ten in Montana were Lincoln, Golden Valley, Lewis and Clark, and Gallatin.

Beartooth Bank to Open in Downtown Billings

21 September 2020
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To provide more convenience for customers, Beartooth Bank, a division of American Bank Center, is adding a second bank located at 123 N. Broadway Ave. in downtown Billings. This 7,000-square-foot facility is expected to open in 2021. Beartooth currently has one location at 4130 King Ave. W., Billings.

In addition to offering personal banking services, this new downtown location will focus on providing effective and efficient banking solutions for businesses.

It will feature American’s Branch of Tomorrow concept, which includes industry-leading technology and a model of service that provides more convenience for customers.

Customers will have one point of contact for all their banking needs. Services offered downtown include commercial lending, ag banking, retail, e-banking, consumer lending and home mortgage. There will be an opportunity for future expansion to also meet customers’ trust and insurance needs.

“We are excited to serve our customers in this new location where we will continue to offer the high-quality service and local decision-making they have come to expect from us,” said Sheri Nicholson, Beartooth Bank president. Nicholson plans to retire later this fall and Allen McCormick will be the new market president. A lifelong resident of Montana and originally from Lindsay, he has 40 years of experience in the banking industry.

Montana Banking Board Appointments

21 September 2020
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The following Montana Bank Board appointments have been announced.

* Bill Davies, Billings. Qualification: Active officer of a national bank doing business in Montana. Davies is the Regional President for the Montana Northwest Wyoming Region for U.S. Bank.

* Tony Ennenga, Bozeman. Qualification: Member of the public who is not an officer, director or shareholder of a bank. Ennenga is a Certified Public Accountant in private practice.

* Tom Swenson, Missoula. Qualification: Active officer in state bank of Montana. Swenson is the Founder, Director and CEO of Bank of Montana and Bancorp of Montana Holding Company.

Gavilon Grain Elevator to Move to Huntley

2 September 2020
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By Logan Portenier, Yellowstone County News

Gavilon Grain LLC is moving from their current site in Billings towards Huntley. “The current location has run its shelf life,” stated the Gavilon Marketing and Communications Manager, Patrick Burke.

The main goal for the move is not only to make the process for the farmers and truckers more accessible and efficient, but also to have better access to the railway system. “We are going to be building a loop track,” added Burke. “It allows us to be more efficient when loading a train. Along with this, we can hold an entire train off from the main track while it’s being loaded, which prevents back-ups on the track. Once we are done loading our train, it can be directed back onto the main track without holding up other trains.”

With two grain elevators located so closely together, concerns of traffic congestion were raised. “It shouldn’t cause any traffic issues,” responded Burke. “We’re focusing on making the entire process insanely efficient and quick.”

“We hope to see the project finished by the fall of 2021,” said Burke. “The current Billings site will remain open throughout the construction of the Huntley location.

Montana Highlights August 15, 2020

2 September 2020
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Rolling Acres Subdivision, located west of Columbia Falls Stage Road and north of Kingfisher Lane,  is being proposed by Unique Realty Developer Inc.. The project will include 77 lots on 114 acres with shared wells, individual septic systems, plus a community sand-mound septic system. Rolling Acres  located in close to a pair of conservation easements meant to protect riparian habitat along the Flathead River. The development has spurred concern from local residents and government agencies.

Rattlesnake Dam was recently removed from Rattlesnake Creek. The planned renovation of the area includes a three year plan to restore the watershed. The dam was built in 1904, reinforced with concrete in 1924 and was an important part of Missoula’s water supply until 1993. The city  acquired the dam, along with 10 other dams on lakes in the Rattlesnake Wilderness, through the acquisition of the Mountain Water Company. The project includes 1,000 feet of stream channel restoration,

Grocers and convenience store operators are commenting on the lack of beer and soda products which are packaged in aluminum cans. There is a nationwide shortage of aluminum cans due to people staying home and consuming these products thereby increasing the demand for aluminum cans.

North Dakota lawmakers have halted the plans the Bank of North Dakota proposal for more coronavirus business aid. The lawmakers want more details before deciding on approval. Bank of North Dakota President presented the concept of loan interest relief for businesses hit by the pandemic, which would use $100 million of CARES Act money that’s expected to go unused. North Dakota received $1.25 billion of the aid. The nation’s only state-owned bank received $200 million, which went to fund the COVID-19 PACE Recovery loan program. The bank has provided $93.6 million through 114 COVID-19 PACE Recovery loans.

North Dakota is one of four states and a city asked to be part of a task force that will help the federal government think about how to distribute a COVID-19 vaccine once one is available.

The selection does not necessarily mean North Dakota will be first in line to receive COVID-19 vaccine, Given that COVID-19 has such an uneven distribution of risk, it is likely delivery will be prioritized to vulnerable populations first..

Governor Steve Bullock announced that he will direct up to $20 million in funding to the Montana University System to support its fall semester COVID-19 strategy for testing students. MUS will prioritize rapid detection and isolation of new COVID-19 cases, rapid contact tracing for each of those cases, and rapid quarantine and testing of individuals who have had close contact with positive COVID-19 cases. To prioritize resources, MUS will not test each student arriving to its campuses, but tests will be available to those who need them and MUS will also use epidemiological surveillance testing to improve effectiveness of mitigation efforts. Funding for testing comes from the state’s allocation of federal relief dollars made available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Bank of the Rockies, Livingston, announced  that Heather Malcolm was selected as a 2020 Rising Stars Honoree. Heather is the Vice President of Ag Lending for Bank of the Rockies and works out of their Livingston Branch where she’s been for 16 years. Each year BankBeat magazine, in conjunction with the United Banker’s Bank, honors rising stars in banking. Bank of the Rockies was founded in 1883, and is headquartered in White Sulphur Springs. The bank operates branches in White Sulphur Springs, Shields Valley, Emigrant, Livingston, Helena, Lewistown, and Bozeman.

About half the number of bikers as usual were expected to attend the Sturgis Motorcycle Rally, in Sturgis, SD,  but that still amounted to about 250,000 people, and – lamented reporters – there was hardly a mask in sight. There were some attendees interviewed, who considered themselves at high-risk, and were making the personal choice to wear masks and said they were avoiding bars and restaurants. Since South Dakota has imposed no COVID –related restrictions the choice was up to the individuals involved. Concerned civic leaders said that they will be interested to see if the level of diagnosed COVID-19 cases, which has been relatively steady, will increase.

Montana Highlights August 1 2020

31 August 2020
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Glacier National Park has been investigating several fires tht are suspicious in nature. Several investigators were on the ground, along with the FBI and National Park Service assisting remotely. Portions of the park are closed due to the investigation

The Billings REI store opened last Friday. The Washington-based outdoor retailer closed all its locations across the country in March. That included postponing the opening of the new Billings store at the corner of Shiloh Road and King Avenue West.

Ramsay residents are still fighting  to prevent Love’s Travel Stops from locating a truck stop complex next to Interstate 90 about 7 miles west of Butte. Residents say a Butte-Silver Bow Zoning Board decision that went against them bolstered their case. Love’s has purchased land for the truck stop at Ramsay and obtained a DEQ stormwater permit for general construction activities, but other regulatory approvals are still pending. Some Ramsay residents have opposed the project from the start, saying the truck stop will bring traffic, noise, pollution, transients and crime to the community.

Eagle Mount Bozeman and Julius Lehrkind Brewing have teamed up to make a special release beer in support of the local nonprofit. Eagle Mount provides a variety of camps and activities for kids and adults living with disabilities or cancer. Because of COVID-19, the nonprofit has scaled back much of its activities.

Sidewall Pizza Company opened this month in the Emerson Center in Bozeman. The first Sidewall Pizza Company was started in an old tire shop in South Carolina, hence the name, and the Bozeman Sidewall will be the first outside of that state. The menu features a variety of meat and vegetarian pizzas, all with the option of gluten free crust, and salads.

Slow Drift Shuttle Service has opened in Bozeman offering shuttle service for the Madison River and Yellowstone River.

Fishing on the Big Horn River is slowly recovering from a bad spring due to the coronavirus pandemic. Business has reportedly picked up in the past month and is looking better for following months. Many of the cancellations have been rebooked for October

The Bowman family has been growing cherries on the eastern shore of Flathead Lake for five generations. The family business has grown from a single acre of trees to the two-state operation it is today. As Bowman Orchards celebrates 100 years of operation in 2020, the family looks back at a century of ups and downs. As the orchard grew, so did the cherry crop and the family’s success. In 1935 when a harsh early winter storm destroyed the orchard the family dug in and replanted the orchard.

North Dakota airports are beginning to see a rise in passengers coming through terminals. The eight commercial airports saw around 24,000 people flying, including Williston, Minot, Bismarck and Dickinson – which is only 24 percent of the number of passengers in June of last year. Bismarck Airport says each day numbers continue to climb. In June, they saw more than 8,000 passengers– the highest since the pandemic began.

When the coronavirus hit Montana and non-essential businesses closed, Misty Williams, Froid Grocery store owner, took the radical step of closing the front door of her “essential business,” restricting it to phone and Facebook orders and curbside pickup. Instead of shopping the aisles in person, customers “virtually shopped” by looking at photos of the shelves on the grocery’s Facebook page. Williams says the results were astounding as orders increased fivefold.

Beginning July 20, the City of Livingston announced their offices would  be closed to the public since there were four or more active cases of COVID-19 in Park County. All persons on staff will remain available via telephone or email. In-person meetings will only be available by appointment. 

Gallatin County’s residential real estate market saw an increase in pending sales in June, while days on market, the inventory of available homes and new single-family listings decreased. The median sales price increased 6.7%, from $427,700 in June 2019 to $456,325 in June 2020. The average days on market decreased 3.5%, from 57 to 55. The inventory of available homes decreased compared to last year, from 472 to 364, and the month’s supply of inventory decreased 20%, from 3.5 to 2.8.

Sellers received 98.4% of their list price last month, down slightly from 99% last year. The number of new single-family listings decreased 13.4% compared to June 2019, from 269 to 233. Pending sales jumped 32.9%, from 173 to 230, and the number of closed sales fell slightly by 0.6%, from 171 to 170.

Two-Bit Saloon, The Yellowstone Raft Company, Rosie’s Bistro and Red’s Blue Goose Saloon were destroyed by a fire in Gardner, just six weeks after they were able to open following the COVID mandated closures.

Sheep Industry Questions Acquisition

31 August 2020
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From Northern Ag Network

At the 11th hour Senators and Representatives from Western States are calling on the Department of Justice to open an investigation into the acquisition of the Mountain States Rosen lamb processing plant by JBS USA. Montana Senator Steve Daines and Congressman Greg Gianforte said in the letter that, “This acquisition could have a major impact on sheep ranchers in Montana and their ability to get lamb to market, as well as result in an increase in lamb imports.”

The purchase of the Greeley, CO facility, that’s owned by 145 sheep producers from 11 states, was announced last week and could have significant long-term impacts on the nation’s sheep industry. Mountain States Rosen (MSR) is the second largest lamb packing plant in the country processing 350,000 lambs annually. MSR accounts for about 20% of the entire U.S. lamb market.

Mountain States Rosen filed for bankruptcy earlier this year, forcing the plant to be sold. JBS, a Brazilian owned meat packing company, has said they plan to use the facility as a value-added beef plant. Removing that processing capacity from the supply chain will leave the sheep industry with more lambs than there is ability to process them.

The purchase and potential conversion to a beef facility has created a lot of concern amongst sheep producers. The industry has already been hit hard by the recent trade disputes and the fallout from COVID-19. Lamb prices have fallen well over 30% in 2020 alone and many producers are dealing with drought conditions on top of all the challenges.

At this point the chief concern of the industry is that JBS may be attempting to buy market share and shift from processing domestic lambs to importing lamb. JBS is already the largest importer of lamb into the United States.

That fear has led many sheep producers to call upon lawmakers and the Justice Department to halt the sale of the plant. Set to be finalized on Friday, July 31st, sheep producers say the long term affects to the nation’s sheep industry must be examined.

Lawmakers from Montana, Wyoming, South Dakota and Utah joined together to send a letter to the Department of Justice to at least temporarily halt the sale. The Senators and Representatives commented in the letter that the DOJ must “demand that JBS cease from any irreversible actions that might harm the ability of American sheep ranchers to get their products to market until the Department can determine how best to protect competition in this significant part of America’s food supply.”

School Funding Ruling to Effect Laws in Other States

31 August 2020
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The Center Square

On June 30, the U.S. Supreme Court ruled in a 5-4 opinion that the application of Article X, Section 6, of Montana’s Constitution (Montana’s Blaine Amendment) violated the free exercise clause of the U.S. Constitution. The majority held that the application of the state’s Blaine Amendment was unconstitutional because it barred religious schools and parents who wished to send their children to those schools from receiving public benefits because of the religious character of the school.

Blaine Amendments refer to language in state constitutions that prohibit public funding for schools or educational institutions run by religious organizations. The language in each state constitution varies. Blaine Amendments are named after an amendment to the U.S. Constitution—sponsored by James Gillespie Blaine—that was proposed but never passed.

Thirty-seven states have Blaine Amendments in their constitutions as of 2020. Louisiana’s Blaine Amendment was repealed by voters in 1974.

In 31 states, the existing versions of Blaine Amendments were included when the state’s most recent constitution or constitutional revision was ratified by voters, which means voters did not vote specifically on the Blaine Amendment but rather considered an entirely new constitution or a larger set of revisions that contained the Blaine Amendment language. In six states, Blaine Amendments were added through specific constitutional amendments, at least three of which were referred to the ballot by constitutional revision commissions.

In Utah and South Carolina, the states’ Blaine Amendments were amended to remove the prohibition against indirect public funding of religious schools, leaving a prohibition against direct public funding.

SBA Officials Commend Local Businesses for Creativity and Community Service

31 August 2020
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By Dan Nordberg and Brent Donnelly

As leaders within the U.S. Small Business Administration (SBA), we have the privilege to partner with businesses and entrepreneurs pursuing their American Dream – even amidst extreme challenges. Last week, we visited Bozeman, Butte, and Belgrade to learn how local businesses are weathering the pandemic, and we were encouraged to hear about the ways so many not only kept their businesses viable but went above and beyond to support their community.

Take Bridger Brewing Company, for example. Known in the area for locally sourced pizza and brews, Bridger has made community partnerships a central component of their business model. When the coronavirus pandemic impaired their ability to continue business-as-usual, Bridger applied for a Paycheck Protection Program (PPP) loan through the SBA to supplement their income and keep their employees on payroll. Because of the financial flexibility provided by this loan, the restaurant committed to serving their community in one of the ways they know best: they delivered free pizza to fire stations, non-profits, and other first responders.

Mountain Hot Tub was also impacted by the economic challenges of recent months. An integral part of local tourism efforts, Mountain Hot Tubs experienced challenges based on the supply chains of national manufacturers. Though business was uncertain and they weren’t getting the inventory they needed, the hot tub retailer was able to bring back their entire staff through the help of a PPP loan. Kelly King, Mountain Hot Tubs’ co-owner and president, said the PPP allowed them to change their mindset from insecurity to innovation, and they utilized the time of reduced sales to dig into business strategy and consider opportunities for forward advancement.

These stories are just a few that demonstrate the incredible actions of your business community, and the SBA is honored to play a part in making them possible. In recent months, more than 30,000 Montana businesses have received over $2.2 billion in SBA loans. These dollars fueled local economies, made sure families continued to receive paychecks, and kept hometown businesses afloat.

Visiting your region, we were reminded that so much good is happening despite the challenges around us. People are giving back to the community. Neighbors are helping neighbors. Companies are going the extra mile. Yes, times are tough, but by investing in local businesses, we’re truly building a foundation for a stronger tomorrow.

We are profoundly grateful to your local business community for hosting us last week. Together, we’ll continue empowering Montana entrepreneurs to serve their hometowns and pursue their American Dream. To learn more about the PPP or other SBA programs, visit sba.gov/mt.

Dan Nordberg serves as the National Director for Rural Affairs for the U.S. Small Business Administration, and Brent Donnelly serves as Director for the SBA Montana District Office.