A grain elevator in Northwood – which was involved in a bankruptcy several years ago – will be re-opening,
Northwood Mills went bankrupt after a multi-million dollar order for soybeans was cancelled – and the company didn’t have enough money to pay creditors. Now, a new company – Prairie Premium Oil – is reopening the facility and its associated processing plant – to process canola.
The Public Service Commission okayed a new license for the elevator. Commissioner Randy Christmann says Prairie Premium Oil posed the required $50,000 bond. But he says this points out the need for another look at the bonding requirements for elevators.
"When fully operational, they estimate purchases of 1750 tons of canola per week, with a value of nearly $900,000," said Christmann. "I figured that, at a 50 hour week, in a half a day they would take in more canola value-wise than what the $50,000 bond would cover. In half a day.”
Christmann says the owners have told him they would be willing to file a higher bond, should that become necessary. He says he plans to meet with the North Dakota Grain Dealers Association at its July convention in Fargo – to have a discussion on what those bond levels should be.