The Mon-Dak Energy Alliance's goal of producing an energy park in northwestern North Dakota or northeastern Montana is far from dead, despite continued negativity from some North Dakota oil leaders.

"Actually, I think we have had a lot of progress on it. We've been noticed by a lot of people around the country," said Williston's Northwest Refining president and CEO Mel Falcon in response to a Nov. 26 Associated Press story that described a proposed diesel fuel topping facility as "a risky business."

The proposed mini refinery by Dakota Oil Processing LLC of Fargo is one of two key first projects for the proposed overall Mon-Dak energy park. The energy park is also to include an ethanol plant, a 100,000 barrel-per-day oil refinery, a coal-to-liquids facility, a biodiesel plant and a wind farm.

"This complex is one of a kind. It is not going to happen overnight," Falcon said. "But we're trying to do it one step at a time."

The November AP story included comments from Ron Ness, president of the North Dakota Petroleum Council. Ness was reported to say fuel refiners run on a slim margin and need a steady market to generate enough income to pay back investors. "It seems like a simple idea but the economics are tough," Ness said to the AP regarding the topping plant.

That same AP article also reported Williston Mayor Ward Koeser as saying most of the projects associated with the Mon-Dak proposal now seem unlikely. The AP stated Koeser called the 100,000 barrel-per-day refinery "a longshot" and said Yellowstone Ethanol's proposal for an ethanol plant "is not as sexy as it was a couple of years ago."

Contacted about these remarks, Koeser said the proposed ethanol plant, "is not as rosy as it used to be."

His feelings regarding the rest of the proposed Mon-Dak projects aren't as negative as the AP portrayed, he said.

"The diesel topping plant, I feel great about it," Koeser said. "The others are going to take some time. I still feel as good about the energy complex. In fact, I feel better about the energy complex now than I did a year go. It is starting to gel into a plan."

Falcon said starting the diesel topping plant and bringing along the ethanol plant stays with the original concept for the energy park. The diesel topping plant and the ethanol plant each are seeking investors.

Late last week, Falcon received a draft of the private offering document for the topping plant that should be final this week to formally start the investor drive for that project.

As for the proposed ethanol plant, Falcon points to higher corn prices caused by speculators, combined with the ongoing recession, as creating a difficult environment.

"About the time the ethanol industry was getting a start, we go into a recession. Speculation drove the price of corn out of the roof. That was ridiculous," he said. "It didn't relate to actual demand. It was inflated, just like petroleum products were inflated."

The artificial corn prices got so high, "the ethanol plants were not able to make a profit, and we're still importing over a billion gallons (of ethanol) a year," Falcon said of statistics from the Energy Information Administration.

It's the refiners who also get the subsidies associated with the ethanol-enhanced petroleum products, not the ethanol plant.

"The ethanol plant kind of gets left out in the cold on the subsidy part of it. If that can be done on the local level, that ethanol product is much more profitable," Falcon added.

The idea behind the energy park is starting with small projects that can expand, he said.

"You got to learn to walk before you can run," Falcon said. "We're looking at small items that complement each other. Hopefully in the future, it could get to be bigger and bigger."

He said the negativity that continues to be expressed about the energy park "is ridiculous. Because these are the people who are to be representing the oil industry."

Falcon said there remains a lot of possibilities for the area.

"Like I always state at these meetings, this is probably the last frontier for fossil fuels and biofuels combined," he said. "We got rail. We got water. We got open land. It is not so congested in this area. That makes a big difference."

Koeser said attracting investors for the Mon-Dak energy park is best done on an individual project basis.

"I feel good about the topping plant," Koeser said. "I am quite optimistic that they will find the investors. You eat that elephant first a bite at a time and then you go to the next one."

Koeser said because of the huge price tag associated with the 100,000 barrel-per-day refinery, "you're not going to get that by having farmers put in $10,000 apiece."

Falcon agrees it is going to take a few key larger investors to step forward to make the big refinery work.

"I anticipated some of the larger (oil) producers eventually doing something like that," Falcon said. "Obviously, they are a little gun shy starting anything right now, and I don't blame them one bit."

He said once you start working through the permitting process, some people respond very negatively.

Koeser said the one thing the 100,000 barrel-per-day refinery does have in its favor right now is low interest rates make it hard to make money on your money through more traditional financial investments.

"Maybe this is a good time to invest in something energy related," he said.

Falcon also serves on the steering committee that is studying the potential for a new oil refinery in North Dakota. The study is being funded by dollars secured by Sen. Byron Dorgan, D-N.D.

The steering committee is meeting Dec. 9-10 in Mandan to review proposals from firms who want to conduct the study, he said.

"There are six, or possibly even seven, who have decent proposals that are sufficient for what we specified," Falcon said of the proposals he has seen.

During this week's meeting, Falcon said the steering committee is to select the top three firms it wants to consider. It is then to meet on Dec. 17 to make a final selection.

"I think we got a good group of people who have come together to evaluate these," Falcon said of the steering committee.