A $457,000 federal Energy Department grant to study the feasibility of a new oil refinery in North Dakota doesn't slow down plans already in the works for a 100,000 barrel-per-day plant proposed for Williston.

Williston's Mel Falcon, president of Northwest Refining Inc., is on the steering committee for the grant that was secured by Sen. Byron Dorgan, D-N.D, and was announced this past Friday. Falcon is working with the North Dakota Association of Rural Electric Cooperatives group that is coordinating the study so work that's already done isn't duplicated.

Falcon's proposal for a 100,000 barrel-per-day plant involved a preliminary feasibility study. Documents filed with the North Dakota Industrial Commission stated Falcon's preliminary feasibility engineering study was to explore all of the factors involved in the development, construction and operation of an oil refinery that would be located near Williston. Falcon said the new grant dollars should reinforce what his project already has documented and "it should give us a little bit better marketing tools and things like that."

When asked how many new oil refineries that state could handle, Falcon said, "The oil is here, but I'm not sure about the marketing of the finished product. If that looks good, I would say a 100,000 barrel-per-day refinery would be sufficient for now."

But he asked what are people looking at for the future, "U.S.-made goods or do we still want to import 75 percent?"

Falcon believes the new study should provide more details for a refinery proposal.

"I think the dollars will be put to good use. That's my opinion anyway," he said.

The study is to take place in phases, with the first phase involving creating the framework to hire a consultant, he said.

"In November we will have (Phase 1) put together to hire a consultant to get it started," Falcon said.

Getting a refinery built, considering a new facility hasn't been constructed in the United States in over 30 years, "takes a collective effort on everybody's part to make everything work. It takes a little participation from everybody. We've already started doing that with the Mon-Dak Energy Alliance."

He believes the Mon-Dak Energy Alliance is a good resource, as it has helped to pull federal, regional, state and local officials and residents together to discuss energy topics.

"I'm happy to see people coming in," he said of the ongoing Mon-Dak meetings that have so far alternated between Williston and Sidney. "We seem to be getting a bigger crowd every time."

Dorgan spoke in Williston at the last Mon-Dak meeting on Aug. 20. In a Dorgan press release announcing the grant funding, it stated North Dakota has been hit in recent years with fuel shortages that pinched consumers at the pump and threatened fuel supplies for farmers.

"The fuel shortages we've seen demonstrate North Dakota needs more refining capacity," Dorgan was quoted as saying in the release. "We are a state that produces much more energy than we can use, and we should never be short on fuel."

Dorgan said the Tesoro refinery in Mandan is a great refinery, and "I've encouraged them to expand. However, more refining is needed."

Rep. Shirley Meyer, D-Dickinson, along with Rep. Kenton Onstad, D-Parshall, have pushed the need for an oil refinery in the state. Meyer said she and others support Tesoro's efforts, but that operation is basically landlocked.

The Three Affiliated Tribes also are pursuing a plant that would process tar sands oil piped in from Canada. When the Tribes started to explore a refinery several years ago, the Canadian tar sands oil was the primary product available to pursue.

"They did not know at the time they were going to be sitting within 25 or 30 miles from many, many wells that are 3,000 to 4,000 barrels a day," Meyer said of the tribal project.

One of the points Meyer wants people to consider, however, "is we need more than one refinery here."

She said there have been months were North Dakota oil has been discounted as much as $13 a barrel because it can't get to market. That has resulted in $30 million in lost revenues because of stranded oil, she said.

"It's ridiculous for our economy and the royalty owners," she said.