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Spiritwood Energy Park, ND Soybean Processors settle lawsuit

Spiritwood Energy Park Association announced Friday, Feb. 7, that it and North Dakota Soybean Processors had settled a lawsuit. North Dakota Soybean Processors had once intended to build a soybean crushing plant in the Spiritwood Industrial Park, in the area center left in this file aerial photo. John M. Steiner / The Sun
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Spiritwood Energy Park Association announced Friday, Feb. 7, that the 2019 lawsuit filed against the organization by North Dakota Soybean Processors has been settled to the satisfaction of both parties and dismissed with prejudice, meaning the case is over.

“We’re very pleased to have this matter settled,” said Connie Ova, Spiritwood Energy Park's CEO. “With this distraction removed, we can focus our full attention on building North Dakota's first soybean processing facility. A local crushing plant will create new jobs here in the Jamestown area and new economic opportunities for North Dakota farmers.”

North Dakota Soybean Processors, a subsidiary of Minnesota Soybean Processors, announced in 2017 that it planned to build a crushing plant at the Spiritwood Industrial Park. In 2019, the Spiritwood board of directors nullified its agreement with North Dakota Soybean Processors, noting delays in the start of the construction of the plant. The soybean group then went to court, getting a temporary restraining order prohibiting the energy park from nullifying the agreement. That was later lifted. In its original filing, North Dakota Soybean Processors had sought to either be allowed to build per the contract with the energy park or for the energy park to pay the $7 million the soybean processors had incurred in the planning phase.

Ova said the settlement has both sides paying their own expenses and includes no payments to either side from the other.

"They pay their bills, we pay our bills," Ova said. "It is over."


The Spiritwood Energy Park Association's sole function is to manage the Spiritwood Industrial Park, a 551-acre industrial park located approximately 10 miles east of Jamestown, N.D., and just south of Spiritwood, N.D. The park adjoins the Great River Energy heat and power plant and its anchor tenant is Dakota Spirit AgEnergy, a 65 million-gallon-per-year biorefinery that produces ethanol, distillers’ grains and fuel-grade corn oil.

As the agreement with NDSP failed, another company sought permission to build a soybean crushing plant at the Spiritwood Energy Park Association location. The new company wished to remain anonymous and has been identified as "Company X" in documents.

The energy park entered into an exclusivity agreement and non-disclosure agreement with the unnamed company in September after ending an agreement with Minnesota Soybean Processors for a soybean crushing plant at the industrial park.

Company X was granted an extension until July to its exclusivity agreement to explore the possibility of a value-added agriculture processing plant at the Spiritwood Energy Park Association industrial park, Ova said.

"The extension to July 10 of 2020 allows continued due diligence and progressive movement forward," Ova said in an email. "SEPA board of directors and staff are pleased with great progress to date and optimistic about good news to come.”

Court documents filed by Minnesota Soybean Processors in September indicated the energy park was negotiating with Archer Daniels Midland to construct a soybean crushing plant at the Spiritwood location.

Ova said the settlement of the lawsuit brought by the soybean processors could help move the new project forward.

"Company X is definitely not unhappy about it," she said. "This is great news for the project."


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