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Cheyenne Refinery To Shift To Renewable Diesel, Cut 200 Workers

in Business/Economy/Energy/Jobs/News
4710

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By Jim Angell, Cowboy State Daily

HollyFrontier’s Cheyenne Refinery will shift from refining petroleum to producing a diesel fuel made out of soybean oil, the company announced Monday.

HollyFrontier announced in a news release that the conversion from petroleum refining will take 12 to 18 months and by the time the work is completed, about 200 workers will have been released.

The reduction in the refinery’s workforce will occur over a period of time, said Liberty Swift, manager of corporate communications for the company.

“Everyone’s learning today what the plan is so no one would be taken by surprise,” she said. “We’re working with everybody to try to assist them through this process.”

The refinery on the south side of Cheyenne has been processing petroleum for 86 years, according to Mike Jennings, HollyFrontier’s president and chief executive officer.

But Jennings said given the crash in oil prices caused by both oil price wars and the coronavirus, the company did not believe petroleum refining was a sustainable business.

In addition, the company was looking at high operating and maintenance costs related to the refinery over the next three to five years, he said.

Swift said there is a growing demand for diesel fuel made from renewable resources, particularly in California, but also in Colorado.

The Cheyenne refinery was well-suited for the conversion because some of the equipment already in place can be used to produce the renewable diesel, she added.

Any equipment not used in the production of renewable diesel will be idled, Swift said.

The conversion process is expected to cost about $125 million to $175 million, the company said.

When the work is finished, about 80 employees will remain at the refinery.

The company will work where possible to put employees removed from the refinery to work at other HollyFrontier plants, Swift said.

She added the company wants to continue working with Cheyenne as it has in the past.

“We want to continue to be in the Cheyenne community and want to continue to be a strong community partner,” she said. “This is a way we can stay in the community.”

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Year of the Pig sees Wyoming cut the fat, celebrate equality, go gaga for choo-choo trains

in Agriculture/Business/Energy/Jobs/News/Transparency/wildlife
Year of the Pig
2613

By Ike Fredregill, Cowboy State Daily

In 2019, Wyoming celebrated the 150th anniversary of women’s suffrage, welcomed back members of the Black 14 and bemoaned the worsening coal crisis.

Cowboy State Daily was there to cover it all.

Here’s some of our top stories from throughout the year.

Coal

Mineral extraction in Wyoming could enter a slump in the next four years, and the coal industry is slated to experience the worst of it, according to a report produced by Gov. Mark Gordon’s Power Wyoming initiative.

Some of the initiative’s scenarios predicted a recovery period in two years, but most, and the most likely, predicted a devastating decrease in both Wyoming’s total employment and population.

For the residents of coal country, those predictions could be life changing.

“The coal jobs have historically been the stable jobs,” said Alison Gee, a Gillette attorney. “Now, we’re shifting to an environment where we have to look to oil and gas to try and provide some of the stability for our families. And as you know, the oil and gas markets just aren’t that way. They’re very volatile because of the world economy.”

Although several hundred miners returned to work at the Eagle Butte and Belle Ayr coal mines after Eagle Specialty Materials assumed ownership from the bankrupt former owners, Blackjewel, the reverberations of 600 coal miners being laid off in one fell swoop earlier this year are still being felt statewide.

Corporate income tax

Despite dying in the Senate during the 2019 Legislative Session, a legislative committee is once again studying a proposal to impose an income tax on so-called “big box” stores.

The Legislature’s Joint Revenue Committee listened to testimony in September regarding a 7 percent corporate income tax on companies with more than 100 shareholders.

A similar proposal, House Bill No. 220, referred to as the National Retail Fairness Act, was not considered by the Senate Corporations, Elections and Political Subdivisions Committee before a deadline in February.

Both measures were raised as state officials were faced with rapid declines in the state’s mineral tax revenues, historically the biggest contributors to Wyoming coffers.

Irrigation collapse

After an irrigation canal collapsed, leaving more than 100,000 acres of farmland in Goshen County and Nebraska without water for months this summer, officials are looking into ways to prevent similar incidents in the future.

Built by the Bureau of Reclamation more than 100 years ago, the Gering/Fort Laramie Irrigation Canal collapsed in July, causing the governors of Wyoming and Nebraska to declare states of emergency.

Although the U.S. Department of Agriculture later said crop losses would be covered by insurance, a previous economic analysis report produced jointly by the Nebraska Extension and University of Wyoming Extension originally estimated the collapse could cost both states about $90 million combined. 

Opening the books

After a years-long legal battle between Wyoming officials and non-profit organizations over state government transparency, Wyoming State Auditor, Kristi Racines released Wyoming’s checkbook  shortly after taking office in January.

The data dump contained approximately 4.9 million line items of expenditures made by state agencies during the last six years, but it does not include several spending categories such as state employee salaries or victims’ benefit payments.

Racines took transparency a step further and launched a website dedicated to providing the public with basic spending data for the state.

Using the data provided through both the checkbook and website, Cowboy State Daily covered a series of state spending stories including the Wyoming Office of Tourism’s sponsorship of rodeo teams, the Wyoming Department of Correction’s purchases of religious items and a look at Wyoming’s own air fleet

Big Boy

The largest steam engine ever built, the Big Boy locomotive, crossed Wyoming for the first time in 60 years, bound for Utah and the 150th anniversary of the completion of the country’s first transcontinental railway.

“A steam locomotive is a living, breathing piece of machinery,” said Bob Krieger, a former steam locomotive engineer who now runs the UP Historical Society in Cheyenne. “You can see its muscles. You can hear it breathe as it pulls a grade. All steam engines do that. The Big Boy is just the biggest.”

Train enthusiasts from all over the world flocked to Wyoming to witness the historic trip.

Capitol renovations

State agencies started moving back into the Wyoming Capitol building this summer as a $300 million renovation project neared its end.

The refurbishment of the 129-year-old Capitol was the centerpiece for the Wyoming Capitol Square Project that also involved updating the Herschler Building to the north and the space between them.

The reopening ceremony coincided with the celebration of Wyoming’s Statehood Day, and the unveiling revealed a Capitol building considered to be much more accessible to the public, with larger rooms, broader passageways and more open space.

“They’ve done a lot of stuff here that opened up the Capitol,” said Joe McCord, the former facilities manager for the Capitol. “The stairs going into the House and Senate are wide open right now. Downstairs, you’ve got the galley that’s wide open. The rooms are bigger. I just love it, what they’ve done. They’ve done a great job.”

Despite being mostly complete, many agencies were still working with temporary furniture towards the end of the year as the state worked out the details of new furniture request for proposal.

Taco John’s

There was a whole lotta Mexican goin’ on at Taco John’s 50th anniversary this year, some of which the company is taking to Minnesota.

While founded in Cheyenne half a century ago, the fast food chain announced in December it was expanding its corporate office to Minneapolis, where there are more than 200 Taco John’s locations within a few hours drive from the city. But for those readers who can’t get enough oles, the franchise is slated to remain headquartered in Wyoming. 

Women’s Suffrage

State legislators kicked off the 2019 Legislative Session by passing a measure setting aside a day to recognize Wyoming as the first state in the nation to give women the right to vote.

The measure declared Dec. 10 as “Wyoming Women’s Suffrage Day,” which marks the day in 1869 when Territorial Gov. John Campbell signed the bill giving women the right to vote in Wyoming.

Marking the occasion with music, the Wyoming Symphony Orchestra commissioned an original work from American composer Stephanie Ann Boyd. 

“Wyoming, of course, put through women’s suffrage about 50 years before everybody else, and so we’re taking the inspiration of that, and the stories of the women that were instrumental in that, and writing a piece about them, but also writing essentially a 25-minute minute love letter to Wyoming,” Boyd said.

On Dec. 10, women and men marched to the Capitol commemorating the newly declared holiday and highlighting instances of inequality that still need to be addressed.

Black 14 

Fifty years after the University of Wyoming expelled 14 members of its football team, known as the Black 14, for wearing black armbands onto the field, race relations are still strained in the Equality State, said Mel Hamilton, one of the Black 14.

“It’s a shame to say, but it’s pretty much the same as when I entered Wyoming in 1965,” Hamilton said, adding, “with one exception — it went underground.”

Adding diversity to the history books and teaching students how minorities contributed to growth of the U.S. as well as informing them how racism was cultivated by ignorance would be a strong step toward improving Wyoming’s future race relations, Hamilton said. 

“They must be allowed to learn what other races have given this country,” he said. “They are ready to lead the way if we — the old vanguard — just get out of the way and let them do it.”

Chronic Wasting Disease 

The Wyoming Game and Fish Department released a draft plan to address a fatal disease running rampant through the state’s wildlife population.

“(Chronic Wasting Disease) has been documented spreading throughout the state, and there are areas where its prevalence is high enough that we think it could be having significant impacts on some of our herds,” said Justin Binfet, one of the plan’s authors and a Game and Fish Department wildlife management coordinator. “The plan is based on recommendations that were developed through an extensive collaborative process.”

Dubbed a “suite of strategies,” the plan suggests managing the disease by installing wildlife feeding bans, potentially targeting mule deer bucks during breeding season, voluntary and mandatory submission of harvested animal samples and working with landowners, cities and counties to eliminate areas with unintentionally high concentrations members of the deer family.

Losing coal could cost Wyoming dearly, take decades to recalibrate labor force

in Energy/Jobs/News
coal industry labor force
2362

By Ike Fredregill, Cowboy State Daily

Wyoming’s coal market has suffered devastating layoffs and mine closures in recent years, and by all accounts, the industry is shrinking. 

But, what if it dried up overnight? 

“If you were to instantly remove the coal industry, it would immediately cause job losses across the state,” said Robert Godby, the University of Wyoming director for Energy Economics and Public Policies Center and college of business associate professor. “You’re looking at about 5,000 miners directly involved in the coal industry. If you were to lose that all at once, people would feel that.”

It’s not just the miners, either. Godby said a sizable chunk of Wyoming’s labor market is reliant on coal.

“Approximately, there’s about 10,000 jobs directly or indirectly related to the coal industry — mining, electricity generation, railroads, plus all the businesses reliant on those workers’ wages,” he explained. “As coal declines in the state, we’ll have to transition those workers to other industries. And, there will not be enough jobs to absorb those workers.”

The good news, Godby said, is coal won’t disappear that quickly, but it could taper off sooner than Wyoming is prepared for. 

“In 2015, there were almost 5,600 miners in Powder River Basin, now there’s 4,400,” he said. “There are 12 mines up there that produce about 40 percent of the country’s coal. We could be below half of what we were producing in 2009 by the mid-2020s.”

High-paying careers

Data from the Department of Wyoming Workforce Services indicates once these workers lose gainful employment, many leave the state to work in the field elsewhere.

But, across the nation, there are fewer jobs for coal workers and retraining for other careers can mean starting all over.

“Those jobs pay really well,” Godby said. “It’s not only difficult to absorb and replace all those jobs, but you won’t be able to find jobs that pay nearly as well.” 

The average income for a coal industry employee is about $80,000 a year, he said. 

“The people who stay, if those jobs were to disappear, may have to do something else,” Godby said. “Many of those workers may have to accept the fact that unless they go back to school, retrain or re-skill, they won’t find jobs that pay as well.”

When a layoff occurs in any industry, Workforce Services deploys a rapid response team, agency spokesperson Ty Stockton said.

“In Wyoming, we don’t have very many businesses that have 600 employees that could get laid off,” Stockton explained. “We don’t have a real threshold for deploying the team. When Laramie County Community College (LCCC) laid off 17 employees in 2016, they went in for that.”

A team was also sent out in 2016 when about 500 workers were laid off from the North Antelope Rochelle and Black Thunder mines in Campbell County. More recently, Workforce Services deployed a rapid response team to Gillette when Blackjewel, LLC, abruptly laid off about 600 workers at the Belle Ayr and Eagle Butte mines in Campbell County.

“Rapid response is about giving those folks options and information,” Stockton said. “If they don’t have information, there’s nothing they can do.”

Teams can include mental health counselors, Wyoming Department of Family Services staff to help families, Wyoming Department of Health staff to help with health insurance questions and Workforce Services employees to discuss unemployment options and help laid off workers start the search for their next job, he said.

‘Generation of pain’

But all of those are stop-gap measures designed to lessen the blow to recently out-of-work families. 

In the long term, Workforce Services also provides funding for a number of vocational rehabilitation programs. 

“We’re trying to keep (the workers) here and give them some options,” Stockton said. 

The agency has access to about $2 million for retraining coal workers through the Partnerships for Opportunity and Workforce Economic Revitalization Grant, aka the POWER Grant.

“The only people eligible for the POWER Grant are the primary industries associated with coal-fired power plants and the coal mines,” Stockton explained. “But we also have the Workforce Innovation and Opportunity Act, and that covers everybody.” 

Additionally, Workforce Services helps fund some apprenticeship programs through grants. 

“Training an apprentice is expensive,” Stockton said. “The apprenticeship program was set up to help offset those costs, so if you need a few apprentices, you can apply for these grants and have their training paid for through the apprenticeship grant.”

About 80 trainees are currently enrolled in apprenticeship programs for electrical, plumbing and heating and cooling careers at LCCC and Northwest College, he said. 

Even with training programs already in place, Godby said recovery from the loss of an industry as big as coal would take years.

“To transition a labor force to work on anything else is going to take about at least about a decade,” he explained. “If we look at other industries like the furniture industry in the Southeast, soft wood lumber in the Pacific Northwest and the industrial decline in the Midwest, those transitions typically take a generation to overcome. That’s a generation — 20 to 30 years — of pain.”

Cody restauranteurs struggle with labor shortages

in Economic development/Jobs/News
2243

A low unemployment rate is creating some difficult situations for Cody’s restaurants.

Park County’s August unemployment rate of 3.3 percent is lower than the statewide average of 3.5 percent and the national average of 3.8 percent.

However, the low unemployment rate means there are fewer workers available, leaving businesses like Bubba’s Barbecue, owned by Brian and Denise Wiegand, without enough staff to remain open seven days a week. The Wiegands said for the first time in eight years, they have had to close their restaurant one day a week.

“Every week it seems like there’s another business opening in Cody, diminishing the labor pool even more,” Brian Wiegand said. “This has been the first winter, however, where it has really hit us, this shortage of labor in Cody.”

The problem is similar at the Proud Cut Saloon, owned for more than 30 years by Becky and Del Nose. 

Becky Nose said because of unreliable workers, she often does not know if she can open for a day of business.

“They text you at 4 in the morning and say ‘I’m not coming in’ or they randomly text you through the night and tell you they don’t like this or that and so they just don’t show up,” she said. “Or they just don’t show up at all. So every day, you’re actually standing in the doorway in the mornings, hoping you have enough people to open your business for that day.”

Lacking sufficient staff, Cassie’s Supper Club was forced to eliminate its lunch service this year, said Melody Singer, who has owned and operated the business for 25 years with her husband Steve.

“It’s so hard to keep a full staff at lunchtime and keep a staff at dinner time,” she said. “Dinner for us is a better choice, we’re a steakhouse. So we did away with the lunch service.”

Donna Lester, manager of the Cody office of the state Department of Workforce Services, said she understands the frustrations of the restauranteurs.

“You have people coming in here every day saying they don’t have jobs, they don’t have enough money to pay the bills or to put food on the table,” she said. “And then we don’t see them at our job fairs. There’s a distinction between what people say they want to do and what they’re actually willing to do.”

The restaurant owners agreed they would take the necessary steps to stay in operation despite the labor shortage.

“We’re trying to get labor hired so that we can get back open seven days a week, but if we can’t, we’ll keep closed one day a week, maybe two days a week,” said Denise Wiegand of Bubba’s Barbecue. “Because we know we’ll get the labor come the summertime.”

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