New Refinery in Trenton - - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

New Refinery in Trenton

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So many stories focus on the oil boom in Western North Dakota.

The latest story involves a refinery in the Trenton area.

Gary Brode traveled west on highway 1804 to learn more about the newest addition to oil industry in the Baaken.

Dakota Oil Processing will be converting crude oil into a finished product but...

(Mel Falcon, Founder, Dakota Oil Processing) "It's not a full fledged refinery..."

That's because the company will be focusing on diesel fuel. Employees at the company are calling it a diesel skimming plant. The production is expected to be around 20,000 barrels per day, 8,600 of those barrels will be diesel. The rest will be naphtha, a light gasoline based material. Owner Mel Falcon, believes because of the needs of the area, concentrating on diesel makes the most economic sense.

(Mel Falcon, Founder, Dakota Oil Processing) "We're manufacturing just diesel only. The reason we're doing that is it's a little bit more economical to get started in that field and diesel is in demand so therefore that's the product we're looking at right now."

Ultra low sulfur diesel, off-road diesel and ag diesel will all be refined at the site. Located three miles southwest of Trenton. Plans for the skimming plant began in 2006. After the health department approved the company's application, some state legislatures helped the company determine creating the plant was feasible.

There will be at least an 18 month wait to receive all of the materials needed for the refinery so in the mean time Dakota Oil have a plan to kick start sales revenue.

(Mel Falcon, Founder, Dakota Oil Processing) "We're planning on putting in what we call our terminal. It's going to provide some storage for diesel and also we are going to be shipping probably some crude oil off of it. It's a good step in the right direction to get it started."

(Mel Falcon, Founder, Dakota Oil Processing) "Most of the diesel will actually be sold right at the terminal. We'll have at least 12 that we've got designed right into the system where the trucks can come in and distribute it right to that area."

Falcon believes the company is getting very close to where they want to be. Adding there are several entities that want to finance the project. Construction is expected to begin in the Spring.

Gary Brode, KX News.

Tomorrow Gary will look into the impact of the diesel skimming plant on the surrounding cities.

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