The Center Square

Indiana’s attorney general wants a U.S. appellate court to allow the Dakota Access Pipeline to remain open while the federal government studies the environmental impact.

Attorney General Curtis Hill said shutting down the pipeline would create public safety hazards, threaten the environment and deliver an economic blow to grain farmers throughout the Midwest.

Earlier, a lower court ordered the pipeline closed by vacating an easement that allowed continued operation. That U.S. district court cited a lack of an environmental impact study.

“The courts should allow the pipeline to continue transporting oil while the U.S. Army Corps of Engineers prepares an environmental impact study,” Hill said in a news release. “The order by the U.S. district court largely ignores the damage that a shutdown would cause to our economy, environment, food supply and personal safety.”

Hill, working with the state of Montana, joined nine other states in filing a brief with the appellate court.

For three years, the pipeline has carried about 570,000 barrels of crude oil per day from western North Dakota to southern Illinois. Closing it, according to Hill, would force oil shipments to go by rail.

Hill believes shipping by rail would force oil to compete for train space with agriculture, harming Indiana farmers and threatening the food supply during the global pandemic.

“The Dakota Access Pipeline has already been constructed, the oil is flowing and the American economy has come to rely on its benefits as an alternative to rail or truck transport,” Hill’s brief states. “The disruption that will result from vacating the easement is not merely economic. It will affect the food security of all who rely on Midwestern grain producers to ship affordable food through rail transport.”

Mason O’Donnell recently joined Stockman Bank as a Financial Analyst. His responsibilities include modeling interest rate and liquidity risk; and assisting in the analysis of the balance sheet strategies, funding options and firm capitalization.

He will also provide credit write-ups and analysis on fixed income investments for the bank’s bond portfolio, as well as the reporting of key measurements, performance ratios and credit standards.

O’Donnell earned his Bachelor of Arts degree in Economics and Finance at Northwestern College in Orange City, Iowa in 2019. He is currently a level 2 candidate in the CFA program.

He is located at 2700 King Avenue West.

Friday, October 2 is Manufacturing Day. It is an opportunity for manufacturers to highlight their work and energize a future pipeline of skilled workers. The Montana Manufacturing Extension Center is urging manufacturers to make it a Manufacturing month, showing the community what your business is all about, how hard you’ve been working this year – both at your facility and ways to advance the industry in Montana.

A tool kit to provide information and ideas is available at www.creatorswanted.org/ wp-content/ uploads/ 2020/08/ MFG-Day-Host- Toolkit-2020.pdf

From Oil Patch Hotline

A huge expansion costing between $35 million and $40 million, that will more than double the capacity of the Dakota Access Pipeline to 1.1 million BOPD, was proposed by Energy Transfer Partners. Work will be completed by February 2021.

The company said it is anticipated that crude oil production out of the Williston Basin will increase between 350,000 to 450,0000 BOPD over the next five years, with current production exceeding 1.3 million BOPD.

The 36-inch crude oil pipeline runs 1,172 miles from Stanley, ND to Patoka, IL.

Based on shipper support solicited during an open season late last year, the pipeline has reached its maximum capacity of 600,000 BOPD.

The company is proposing a new pump station adding 30,000 horsepower in Emmons County five miles west of Linton.

Expansion of the two crude oil tanks and pumping station at Johnson’s Corner in McKenzie County is also planned. A new 300,000 crude oil storage tank will be erected along with two 6,000 HP pumps.

A third pumping station will be constructed in Illinois.

In its formal application to the ND Public Service Commission, the proposed expansion “will allow Dakota Access to meet the growing demand from shippers by optimizing and fully utilizing the existing pipeline infrastructure, without the need to install new pipelines, and without the need for shippers to use less safe and efficient means of transportation, such as rail,” said attorney Lawrence Bender, representing Energy Transfer.

Chris Heivly, the co-founder of MapQuest met with local tech founders, last week, to share his entrepreneur journey and to discuss ways to develop a thriving startup community in Billings.

Heivly is part of a cohort of successful entrepreneurs at Techstars- a global platform for investment and innovation, that have adopted a philosophy they call, “GiveFirst.” He explained that creating a give-before-you-get cultural norm in Billings is a critical step to attracting talent and creating a vibrant, entrepreneurial culture.

Heivly also encouraged each founder to band together and take on a leadership role. He shared how facilitating regular meetups that bring entrepreneurs together to help each other will have an incredible impact on their own companies over time. “Spend 1 to 2 hours each week meeting and building the entrepreneurial ecosystem in Billings.” He said. “It will benefit your companies in more ways than you know.” After spending almost an hour discussing challenges and opportunities in Billings, the founders ended by sharing why Billings is the right place for them. “I like that Billings is built on a strong foundation, there’s a lot of hard-working people who live here” they said.

Andrew Korf, a business student at Rocky explained how being a part of this entrepreneurial community inspires him to stay here instead of going back home to Boise after he graduates. Founders in attendance included:

Chris Heivly- Co-founder of MapQuest and serial entrepreneur;

 Colter DeVries- Co-founder of Moochdocker;

Josh Toenyes- Co-founder of Cardsetter;

Andy Rahn- Founder of Landsource;

Ethan Kanning- Co-founder of Harken CRE;

Trevor Hartman- Co-founder of Converge and senior staff SRE at Carta;

Kevin Scharfe- Co-founder of Converge;

and director of Rock31 Andrew Korf- Finance intern and business student at Rocky Mountain College;

Michael Rae- Livestock BioTech entrepreneur.

To learn more about Billings Entrepreneur Eco-System visit www.rock31.org

The Center Square

Americans are paying down their credit card debt in 2020, and Californians are leading the way.

According to a new study from financial website WalletHub, American consumers entered 2020 owing more than $1 trillion in credit card debt. In the first quarter of the year, consumers reduced that by $60 billion. And in the second quarter, they reduced it by an additional $58 billion, or about 6.7 percent.

“Although first quarter paydowns are normal, Q2 2020 marks the first time in more than 30 years that credit card debt has dropped from April through June,” WalletHub’s report says. “As a result, WalletHub now projects that U.S. consumers will end the year with a slight reduction in credit card debt for the first time since the end of the Great Recession in 2009.”

California led all U.S. states in the amount of credit card debt reduction, according to WalletHub’s rankings. The average Californians reduced such debt by $558 in the second quarter. Texas placed second in the rankings, with the average household reducing credit card debt by $550.

California residents still have the fourth highest credit card debt on average in the U.S. at $9,472 per household. Only residents of Virginia ($9,589), Hawaii ($10,987) and Alaska ($11,250) have more on average, according to WalletHub.

Across the U.S., the average credit card debt is $7,938.

WalletHub says its study is “based on analysis of the latest data on consumers’ finances available from TransUnion as well as the Federal Reserve and Bureau of Labor Statistics. Quarterly changes in credit card debt levels include both the total amount outstanding (revolving credit, not seasonally adjusted) and charged-off debt (not seasonally adjusted) that is no longer on credit card companies’ books but consumers continue to owe.”

Dan McCaleb is the executive editor of The Center Square. He welcomes your comments. Contact Dan at dmccaleb@thecentersquare.com.

The Montana Department of Transportation (MDT) announced that Five Mile Road is now open to the public. Finishing work taking place will include epoxy striping in mid-September and final seeding and erosion control blankets in mid-October.

Fleetwood Gaming Gains Historic Horse Racing Partnership with Exacta Systems

Fleetwood Gaming CEO Jon Dehler announced that his company has entered into an agreement with Exacta Systems to form a joint partnership to manufacture and distribute Historic Horse Racing (HHR) machines in Montana.  The Montana legislature will consider HHR legislation in the upcoming session, after the passage of SB 183 in 2019, which instructed the Montana Board of Horse Racing to propose legislative language surrounding HHR.  The Montana horse racing and breeding industries support the introduction of HHR terminals to help sustain the equine and agriculture-based industries in the state. 

The agreement will see Exacta’s HHR pari-mutuel wagering platform rolled out throughout Fleetwood’s distribution network in Montana.  Fleetwood Gaming CEO Jon Dehler commented, “this is an amazing opportunity for us at Fleetwood adding HHR pari-mutuel terminals to our distribution chain. Having terminals with pari-mutuel payouts that can compete with the Montana Lottery and Montana Cash finally levels the playing field and will be a win-win for all.”

“We are excited to have found an experienced partner like Fleetwood Gaming and Jon Dehler,” commented Exacta Systems President Jeremy Stein.  “HHR terminals will help enhance Fleetwood’s already strong product lines and wide distribution range throughout Montana.  We look forward to bringing the HHR success story to Montana and its legendary equine industry.”  

Montana’s population is just over one million people, but over 12.6 million tourists visited Montana in 2019 and spent $3.6 billion in the Treasure State.  The leisure betting market in Montana provides a great market opportunity for the Fleetwood-Exacta Systems HHR partnership.

About Fleetwood Gaming, Inc.

In 1974, the Fleetwood Distributing Company headquarters was established in Montana and in 1978, Jon Dehler purchased the family run company from his father Bill.  Soon after, Fleetwood began operating as both a machine route operator and distributor. The business achieved a major product line expansion in 1985 when gaming was legalized and video poker machines were introduced in Montana. Today, Fleetwood Gaming, Inc. is one of Montana’s leading suppliers of gaming products, and has five locations throughout Montana providing local support and or distribution from Billings, Butte, Great Falls, Missoula and Sidney.

About Exacta Systems

Founded in 2013, Exacta Systems is the leading provider of Historic Horse Racing systems and terminals in the country.  Exacta is currently operating in Kentucky, Wyoming and Virginia, and is expanding into new markets each year

A recent survey shows that 21 percent of Montanans believe that employers should be liable to pay compensation should an employee contract Covid-19 in the workplace. Nationally, 38 percent believe the employer should be held responsible, in a survey done by Gomez Trial Attorneys.

As business slowly starts to pick up following Coronavirus-related restrictions, companies across America are addressing how they can create a safe space for their employees or customers. However, as Congress has recently been debating, there exists the potential for lawsuits to be filed against businesses should their staff or customers contract Covid-19.

A number of states have acted to extend liability protection to businesses. It will undoubtedly be an issue before the 2021 Montana State Legislature. The US National Chamber of Commerce has pushed for the provision to become a nationwide protection for business owners as part of the next Congressional package for COVID benefits. Harold Kim, President of the US Chamber, said during a recent virtual conference in Montana that more than 30 states have already “done something” in that regard, adding that “it shouldn’t be a partisan issues.”

The survey release pose the question, “Does the government side with workers who want their safety to be prioritized above anything else, or beleaguered employers who fear resulting lawsuits pose an existential threat to their businesses following extended periods of lockdown?”

Broken down across the country, the survey found that West Virginians felt most strongly about “protecting employees’ rights,” with 75% saying businesses should not be protected from legal blame if workers contract Coronavirus. Comparatively, South Dakotans felt most strongly about protecting businesses during this time, with only 11% agreeing that employers should be held liable.

One method many companies will adopt as they re-open their workspaces is to take everyone’s temperature regularly. Employees feel reassured that temperature checks are a positive way of protecting their health, as the survey found that over three-quarters (76%) believe they should be compulsory each time you enter their  place of work. If a person’s temperature is over a certain degree, they could be instructed to go home and seek medical advice. 

There are also ongoing debates on the issue of privacy regarding personal data involved in temperature checks. Nearly three-quarters (74%) of employees say their personal data obtained via temperature checks should be kept confidential. Re-introducing workers back into the workplace has not only brought up issues related to health and privacy, but also finance. For example, if Covid-19 testing or temperature checks take place outside of official work hours, should workers be compensated for their time? The survey found that 58% of employees feel they should be compensated, for example for testing before work, during lunch or after hours.

‘In the midst of a global pandemic, it is vitally important to know your rights – whether an employee, employer, or customer’ says a spokesperson for Gomez Trial Attorneys. 

Montana Chamber of Commerce Report

The Montana Chamber of Commerce has presented its 2020 Judicial Review of more than 50 Montana Supreme Court decisions from 2018 and 2019 that impacted business and the economy.

“The Montana Chamber is one of the only organizations that reviews court decisions with special attention to their long-term impacts on doing business in Montana,” said Bridger Mahlum, government relations director for the Montana Chamber.  “As the third branch of our state government, it’s just as important to evaluate the activity of the judiciary as it is to engage in its legislative and executive counterparts.”

Harold Kim, President of the US Chamber, during a recent webinar commented on the Montana Chamber’s review of the courts saying it “is critically important because it has had an impact on the Montana Supreme Court.”

Mahlum added, “It is an incredibly important tool .. not only do judges recognize it but so do legislators and policy makers.”

The Montana Chamber of Commerce has presented its 2020 Judicial Review of more than 50 Montana Supreme Court decisions from 2018 and 2019 that impacted business and the economy. Overall, the Court received a 74% rating for its decisions on crucial business cases – a slight improvement from its 72% rating on the 2018 review. Receiving the highest individual rating for the second consecutive cycle was Justice Laurie McKinnon at 83%t (Career Judicial Score of 87 percent). Other ratings included:

* 68 percent for Chief Justice Mike McGrath (57 percent Career Judicial Score);

* 78 percent for Justice Beth Baker (67 percent);

* 64 percent for Justice Ingrid Gustafson (64 percent);

* 80 percent for Justice Jim Rice (78 percent);

* 71 percent for Justice Dirk Sandefur (71 percent); and

* 72 percent for Justice Jim Shea (67 percent).

As a part of our continued focus on worker’s compensation, the Montana Chamber included a review of the Worker’s Compensation Court’s performance from 2018 and 2019. Twenty-six cases were reviewed, with Judge David Sandler ruling on all those cases. His rating was 62 percent, bringing his career score to 66 percent.

The Montana Chamber of Commerce tracks all activities related to business in Montana. With legal reform as part of its Envision 2026 business climate objective, the Chamber facilitates the Montana Justice Coalition and produces the Judicial Review under the auspices of that coalition.  The Coalition brings together business leaders, attorneys, association directors, and other stakeholders to track Montana’s legal climate, monitor important cases, and develop legal reform measures.