South Dakota Oil and Gas Association

South Dakota Oil and Gas Association

Wednesday, November 26, 2014

SDOilStrong! Member Spotlight - Broadwind Services, LLC

The November SDOilStrong! member spotlight features Broadwind Services, LLC in Howard, SD. Jason Eddy, VP of Midwest Services offers a wide range of gearbox and mechanical services to the oil and gas, energy, and other industries. Broadwind recently worked with a leading drilling equipment owner/operator to conduct root cause analysis, redesign and remanufacture a series of draw works boxes where they were experiencing unacceptable early failure rates.

"Broadwind specializes in repair and redesign of enclosed drive gearboxes and other mechanical equipment. With our 16,000 sq. ft. service shop capable of handling the big jobs down to the small ones and nearly 100 service technicians throughout the Bakken, Rocky Mountain, and Midwestern states, we are able to respond to our customer’s time sensitive service needs,” states Mr. Eddy. Broadwind is leveraging their success working with upstream O&G customers to offer infield service of gearbox equipment found in downstream applications as well.

Beyond the Bakken and Rocky Mountain region, Broadwind has a 30,000 sq. ft. service facility located in Abilene, TX. This facility is strategically located to offer O&G customers throughout the Texas and Oklahoma region the same level of service. Broadwind values EHS, Quality and Engineering systems and has deployed rigorous programs to achieve ISO 9001, API and ISNET World qualifications. Visit Broadwind online at or email to learn more!

To receive this member spotlight, updates and more, be sure to sign up for our E-Newsletter by visiting SDOGA at  The industry needs your continual support. Join SDOGA today and let your voice be heard! 

Saturday, September 13, 2014

Frac Sand Mine Tour with South Dakota Proppants Executives

Pictured left to right: COO Chris Galvin, SDOGA Executive Director Adam Martin, CFO Craig Meis, and CEO Pat Galvin

I took a wonderful tour this past Friday, September 12 near Hill City S.D. with executives from one of our Association members, South Dakota Proppants (SDP).  

South Dakota Proppants has plans to build the state's first silica mine under 1750 acres in the Black Hills National Forest near Hill City, S.D.

CEO Pat Galvin and the SDP team gave their insight on how they discovered the silica sand, and why this particular sand can be used for the hydraulic fracturing process and technology.  To put it simply, s
ilica sand is extremely strong and round, the best material known for fracking. 

To the naked eye, you would not know you were looking at something used in so many products.  Under the magnifying glass, this is where it all changes.

Silica sand is a key ingredient in anything from solar panels, smartphones, toilets, eyewear, glass bottles, and more.  It is literally eye opening to see this material exists right here in South Dakota, and it just happens to be the right stuff for fracking.  This particular silica sand is clear, one of the qualities that makes it so valuable as its more pure.  

Just how much silica sand exists?  CEO Pat Galvin estimates they will have enough material for the next 50 years to service the industry, with extracting only up to 30% of available resources in this particular area of the mine. One well can use up to 10,000 tons of frac sand in its lifespan.  SDP states the proposed $65 million facility will generate one million tons of sand a year. 

We discussed how the facility will impact the local economy, creating new jobs, and the value the strategic location in the Black Hills means to the company and the oil and gas industry in our region.

We also discussed the process of getting the facility through the permitting process to becoming fully operational.  SDP is working to get this done and be shipping product by the 4th Quarter of 2016.  "We're hopeful, and everyone in the process so far has been great to work with," states COO Chris Galvin.

The economic impact to the local communities will be significant once it's up and running, something the SDP team cares a great deal about.  Hill City, Rapid City, Custer, Hot Springs and Newcastle, Wyoming all stand to benefit. CEO Pat Galvin estimates the facility will create nearly 300 local staff and truck driver jobs once fully operational.  

The routes the delivery trucks will be taking to avoid populous areas and highways that frequent both local and tourist traffic will result in minimal impact to the area. Pat Galvin explained they would like to attempt to avoid it all together, other than occasional maintenance needing done in Hill City or Rapid City.

During the tour and conversation, the value was even considered of shutting the plant down during the week of the Sturgis Motorcycle Rally to avoid any potential issues with truck and motorcycle traffic conflicting on highway routes in the region.  I was very impressed with how SDP is carefully considering all of the aspects of doing business in South Dakota.  

The goal is to have the facility and truck traffic be out of sight, out of mind as much as possible for local traffic, and so the people who spend time hiking, hunting, and exploring in the area can continue to still enjoy all the Black Hills National Forest Service has to offer.  

I am an avid outdoorsman and hunter.  Ensuring the least amount of impact to the views people enjoy in the area was also brought up.  The SDP team explained this is being kept at the front of the business plan.  Pat Galvin explained, "We want to do this right." 

In fact, when we arrived at one location in the area of the mine, we ran into some locals on UTV's ready to take in the weekend, relax, and enjoy the outdoors.  I watched as each member of the SDP team stopped what they were doing to visit with the locals to ensure they were educated about their plans, answer questions about the mine, and encouraged them to continue to frequent the area and enjoy all it has to offer.  

The location of this facility couldn't be any better to serve South Dakota, the Bakken, Niobrara, and Powder River.  Due to South Dakota's proximity of routes to these major plays alone, the company has a strong competitive advantage.

South Dakota Proppants is a member of the South Dakota Oil and Gas Association, helping move our great State forward as a partner in the oil and gas industry.  

Pat Galvin is a featured speaker at the 2014 Black Hills Bakken and Investor Conference.  He will also be participating in a Manufacturing Opportunities Panel Discussion with other leading companies serving the Bakken to share his business and manufacturing experience with attendees. 

The Black Hills Bakken and Investor Conference is October 1 and 2, at the Spearfish Holiday Inn Convention Center, Spearfish, S.D.  Seating is limited, and is expected to be sold out soon. Sponsor and Exhibitor spots are still available and going fast.   

I strongly encourage you to attend and learn more about South Dakota Proppants, other companies, speakers, and engage in the panel discussions to help your business or investments continue to grow in the Bakken.  

Thursday, September 11, 2014

I want to share a recent press release with the group from SDOGA in coordination with Governor Mike Rounds speaking at the 2014 Black Hills Bakken and Investor Conference in Spearfish October 1 and 2.  If you can't tell from the release, Governor Rounds is fired up about missed economic development opportunities by delays from President Obama on projects like the Keystone XL.  We are honored to have him be a featured speaker, along with many other speakers including local economic development, business leaders, Inc. 500 companies, energy companies, and Investment companies from throughout SD, ND, and the U.S.

The economic development directors involved in the conference, include SDGOED, Rapid City, Sturgis and Williston North Dakota.  Each are scheduled to take active roles in this years conference, so we don't miss out on opportunities to help our existing companies continue to grow economically.

The goal of the conference is helping companies from South Dakota and the region continue to build and develop their business in the Bakken, and will attract companies from the region eager to learn how to get their piece of the pie.

Now that we know the Bakken is here, and will be for a long time to come, we have a window of opportunity to capitalize on the vast amount of industry growth that will no doubt affect our manufacturing and service-related businesses right here in South Dakota.  We appreciate the involvement and roles from the economic development teams to help South Dakota continue to push forward as the best state in the country to do business in and from!  

September 10, 2014 For Immediate Release: 
The South Dakota Oil and Gas Association (SDOGA) announces U.S. Senate Republican candidate and former South Dakota Governor Mike Rounds will be a featured speaker at the 2014 Black Hills Bakken and Investor Conference October 1 and 2.  The conference will be held at the Spearfish Holiday Inn Convention Center in Spearfish, S.D.

Governor Rounds will be speaking on various business and energy topics including North American energy independence, support of the Keystone Pipeline, and reining in federal bureaucracies like the EPA.

The U.S. Chamber of Commerce recently endorsed Governor Rounds for his record and experience supporting pro-business issues.  “The best thing the federal government can do from an economic development standpoint is get out of the way,” said Gov. Rounds. “We need to stop the feds from picking winners and losers based on failed economic policies.”

SDOGA's Executive Director Adam Martin praises Governor Rounds attendance by stating, "We are honored to have him speak. Governor Rounds knows South Dakota.”

“We are becoming a central hub in the region to the oil and gas industry. Governor Rounds has a proven track record working to promote South Dakota’s business interests, to help boost the nation’s economy and create jobs for South Dakotan’s.  The opportunities in the Bakken have become a critical piece to South Dakota’s business growth,” said Martin.

End of press release.

I wish Governor Rounds well in his campaign for the U.S. Senate, and we hope to see you at the conference!  Please feel free to reach out to me if you would like more information and take a look at the list of the speakers and agenda!  You won't be disappointed you attended.


Friday, August 29, 2014

Potential Game Changing Technology removes H2S from #Bakken Oil

A potential “game-changer” in the oil industry will be highlighted during a featured presentation at the 2014 Black Hills Bakken & Investor Conference October 1st and 2nd at the Spearfish Holiday Inn Convention Center, Spearfish, S.D.

Two western South Dakota entrepreneurs, Tom Wilson and Dan Johnson, have created an innovative and environmentally friendly method of turning hazardous oil into safe and profitable oil.  Tom and Dan have extensive backgrounds in the oil industry with nearly 70 years combined experience.

The company, Blue Bull, LLC, turns sour crude into sweet crude by removing Hydrogen Sulfide (H2S) from the oil.  Hydrogen Sulfide is the second-most-deadly, naturally occurring gas.  It kills by paralyzing the nervous system area that controls the involuntary function of breathing. The result is lack of oxygen to the brain, followed by death in minutes.  Stricter regulation of H2S makes it more difficult to blend large volumes of H2S oil with crude, leaving H2S oil more difficult to transport by rail and pipeline, as it’s highly corrosive.

Their first, fully operational processing plant in Sidney, Montana has been in operation for a few months and they are processing approximately 2000 barrels of oil a day.  The company’s patent pending processing system doesn’t just remove H2S from oil; it eliminates it completely without residue or additional cleansing. 

Prior to their system, the only way to treat sour crude was with chemicals, which added between $4 and $15 per barrel.  With chemical cleansing, H2S is only reduced, not eliminated; and trace chemicals remain after the process.  This new process leaves no chemical residue because chemicals aren’t used in any part of the process.  

SDOGA Oil and Gas Industry Afterwork Social a Huge Success

On August 27th, the South Dakota Oil and Gas Association hosted an Oil and Gas Industry Afterwork Industry Social at Minerva's in Rapid City, SD.  The social was held from 5pm to 8pm, and featured sponsors Caber Engineering and Black Hills Corporation.

The goal of the social was to simply get the conversation started in South Dakota on what is happening, what our future holds, and how South Dakota companies can make a collaborative effort to work together.  This is the culture of doing business in South Dakota.  This was clearly evident when it came to helping our ranchers this past winter after winter storm Atlas, and the thousands of people supporting the losses through the Rancher's Relief Fund.

As I approached on how to put an industry social together in South Dakota, I realized the overwhelming need to put forth the efforts to get the industry to work together now.  South Dakota is quickly becoming a service-related business hub to the region.  With companies like Adams ISC, Caber Engineering, Black Hills Corporation, Broadwind Services, and many more, I've listened first hand how the Bakken has increased business and evolved how these companies do business in the years to come.

I put together a simple gathering in a room that could hold about 40 people.  We filled it with over 40 for nearly two in a half hours.  This couldn't have been done without the support of the sponsors and our members helping spread the word.  As I look back on how the social went, it was a huge success.  Everyone was engaged in some sort of fashion, and I think everyone met someone new!

One of the critical pieces to the social was getting immediate feedback from the attendees before they left.  I did this by getting a beautiful wine basket donated by my good friends and owners of Belle Joli Winery in Sturgis.  In order to be register, attendees were asked to give us feedback on the event.  This is proving to be really helpful.  All of the feedback received (more than half at 27) was very positive, and only a few things stand out that we will improve upon for the next event.  Here are some of the comments from attendees:

"Good opportunity to meet people and promote the new Petroleum Systems Engineering Program at SD School of Mines and Technology... which was created to serve the regional Oil and Gas Industry!" Brad Johnson, VP at SDSM&T

"Very good networking with people in the industry" Tom Wilson, Blue Bull, LLC

"Great gathering, good info, fantastic networking" Tory Stugelmeyer, Camo Ltd

A couple of people felt we should have some sort of a presentation at the social.  I'm not sure why, because typically a networking social is meant to do just that, socialize and network with your peers and not have a presentation or agenda pushed on people.  I didn't want the atmosphere to be about the SD Oil and Gas Association, but about helping our members meet new people in the industry.  But I love the idea, and we will certainly look to bring good topics of discussion from several of our most valuable resources in our member companies.  I have no doubt South Dakota School of Mines and Technology would be more than happy to provide a brief presentation on their new Petroleum Systems Engineering Program, and I have a few other companies in mind that could provide some great educational pieces.  Another piece would be to provide Bakken updates to attendees on an ongoing basis, and this could include interaction from attendees if they are seeing any new trends or changes in the work environment.  If our attendees are saying they want to learn more while still coming to socialize with other industry professionals, I will certainly listen.  After all, the events are meant for our members and attendees to grow both professionally and help provide networking opportunities for their businesses to succeed.  

I want to say thank you to our sponsors and our members, and I really appreciate everyone that came to the event just to check it out and see what we have going on.  I am both humbled and excited to see the turnout for our next event!  If you want to stay tuned in, become a member and make sure you are subscribed to our e-newsletter at


SD Dept of Ag proposes new Oil and Gas Mediation Rules

The South Dakota Oil and Gas Association recently received notice on the proposed new rules for the expansion of the mediation program for federal lands mediation, and oil and gas mediation.  The reason for adopting the new rules, according to the Department of Agriculture is to enhance the existing farm loan mediation program and to adopt rules for the federal land mediation and oil and gas mediation areas.
SDOGA has obtained a copy of the new proposed rules to the oil and gas mediation.  I am currently reviewing the rules, and can provide a copy to anyone interested in reviewing it themselves.  The rules are open to the public for review.  I recommend any members who have interest in the mediation process to voice their concerns directly to SDOGA via email or by calling me, so I can voice concerns at the public hearing on behalf of members.  A copy of the Notice of Hearing can be found here. 

Black Hills Bakken and Investor Conference

The South Dakota Oil & Gas Association is hosting the 2014 Black Hills Bakken & Investor Conference October 1-2 in Spearfish, SD.  The event will be held at the Spearfish Holiday Inn & Convention Center.

Inc. Magazine’s Norm Brodsky will kick off the conference October 1 as the keynote speaker.  Brodksy is the co-author of Inc. Magazine’s “Street Smarts” column.  He has invested his own capital in the Bakken region of North Dakota and is the founder of several businesses, including a three-time Inc. 500 company.  

CEO Chris Faulkner of Breitling Energy is also featured to speak, along with a private viewing of his movie Breaking Free: The Shale Rock Revolution immediately after.  

In addition to the full agenda will feature several industry investment guru's, like Joel Block and Mark Anderson.  The investor section will feature how to use crowdfunding to your advantage, and investing in oil production.  

I can't stress this message enough to South Dakota companies that want their foot in the door in the Bakken.  This is a must attend event you will not want to miss.  The Conference will offer critical information on industry, technology, investments, and help the attendees become more profitable in the energy marketplace.

The conference will feature speakers from several different states with topics ranging from investing in North Dakota oil, to raising private equity, to crowdfunding.  Seating is limited and the 2012 conference sold out early.  More information can be found at

Don't miss out on your slice of the pie.