50 years of respeC | 3
fifty years of innovation a celebration of the entrepreneurial spirit
In 1969, the same year that Apollo 11 first landed men on the moon, RESPEC was founded by a group of young, entrepreneurial college professors who were bound together by loyalty to their engineering school, respect for technology, and love for the Black Hills of South Dakota. They could never have imagined how the engineering and technological breakthroughs over the next 50 years would change the world around them. Nor could they have imagined how their pioneering work in the management of nuclear waste and partnerships with world-renowned universities and laboratories such as the South Dakota School of Mines & Technology (SDSM&T) and Sandia National Laboratories would
transform their entire careers. Today, 50 years later, RESPEC navigates through a wireless world to work with clients, business partners, and multiple office locations to deliver advanced technological and innovative engineering solutions. As we celebrate our 50th year in business, we appreciate some of the moments that defined RESPEC as a company and family. Thank you to our founding members, former employees, and current employees who have contributed their stories and shared their time to put this book together. And thank you to everyone who has played a part in the 50-year journey of RESPEC. We are proud of what we’ve learned and accomplished, and we look forward to continuing to build upon the great history of RESPEC. Todd Kenner, CEO/President
06
table of contents
a growing company: maintaining a core value of trust
11 From local to global
08
celebrating our history
12 The respec family: Our people and culture
23
24
The founders: honoring respec’s visionary pioneers
1970–1979: the seventies
36 Staying current: Changing with technology
42
38 1990–1999: the nineties
46
2000–2009: the new millennium
2010–2019: the current era
51
52
Transforming ideas: solving complex challenges
Conclusion: continuing the path forward
10
Acquisitions: transmitting culture
20 1969: the beginning
30 1980–1989: the eighties
41 Growing and Expanding: A Global footprint of Diversificaion
50 Vision 2025: building for the future
6 | 50 years of respec
a growing company
303 EMPLOYEES
WATER & NATURAL RESOURCES MINING & ENERGY
maintaining a core value of trust
RESPEC celebrates its 50th anniversary by sharing the tale of its evolution across decades of cutting-edge solutions, advances in science, and technologically driven changes in our social fabric. While the speed of innovation has steadily increased through the decades and changed the way businesses respond, the immutable thread that continues to bind RESPEC’s years of business together is the entrepreneurial instinct, dedication to quality results, and perseverance that each employee shares.
2019
DATA & TECHNOLOGY SOLUTIONS
2011 140 EMPLOYEES
278
New historical company employment level
1980 47 EMPLOYEES
247
Major focus on nuclear waste repository science in support of establishing a licensed facility
234
1990
212
82 EMPLOYEES
Building technology resources in support of the nation's national laboratories
125 EMPLOYEES
Peak of the company's technology support to Sandia National Laboratories
133 EMPLOYEES
84 information technologies employees who support Sandia National Laboratories
112
104
200
2007
2000
The idea for RESPEC was formed on a patio over a shared jug of wine between a group of young men who all shared a core value of trust and belief in one another. Determined and dedicated leadership throughout our history has led to groundbreaking work in nuclear waste management, long-standing client relationships, substantial federal research contracts and, more recently, strategic acquisitions that have allowed RESPEC to expand and grow into new areas of consulting and services.
281
110 98
166
114 104 110
94
12 2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1990
1980
1972
1970
1
50 years of respeC | 7
Our growth is not focused on size;
, it` s focused on opportunity. —Todd Kenner, CEO/PRESIDENT
NICHE technical service offering
technical expertise in private sector
1969–1990
1990–2010
Focus on nuclear repository science research
Service offerings focused on mining, energy, and technology consulting
market growth and diversification 2010 Begins expanding service offerings and adds geographic diversity through acquisitions and strategic hires
One Company Focus
Integrated solutions Partner
2015
2019
Transition into “One Company” with 3 distinct divisions: Data & Technology Solutions, Mining & Energy, and Water & Natural Resources
Branded as an integrated solutions partner leveraging diverse capabilities across all business units in an effort to be customer focused
8 | 50 years of respec
celebrating our history
1998
1969
Incorporated in the state of South Dakota First contract is with Oak Ridge National Laboratories in researching high-level nuclear waste disposal in underground mines
1981
1975 Oak Ridge National Laboratory contracted RESPEC to begin fieldwork at the Jefferson Island and Avery Island salt mines in Louisiana
New 17,000-square-foot office/ laboratory facility completed in Rapid City, South Dakota, increasing space for rock mechanics-testing equipment
1989 Receives multi-million dollar contract for Waste Isolation Pilot Plant (WIPP) seals engineering at Sandia National Laboratories
1987 1971
1977
1982
Job #001 is commissioned with the South Dakota Department of Transportation
Builds and moves into a combined office and laboratory building in the Rushmore Industrial Park at 1 Concourse Drive
Opens offices in Albuquerque and Carlsbad, New Mexico, to be closer to Sandia— one of its best clients
1970S
Sandia awards personnel Meritorious Achievement for contributions to the WIPP
1980S
Completed Rapid City, South Dakota, corporate headquarters addition
1991 Establishes ESOP and creates employee ownership opportunities
1993
1999
New contract for structural integrity study at Mount Rushmore Memorial
1990s
US National Committee for Rock Mechanics awards the Applied Research Award
50 years of respeC | 9
2002
2011
2015
Becomes Microsoft Gold Partner
Establishes Idaho presence with technology resources
Acquires Flat Rock Geographics in Roseville, Minnesota, specializing in geospatial software and services
Acquires Moser & Associates in Denver, Colorado, with water resource expertise
2006 Acquires POD, Inc. and strengthens RESPEC's technology market
Acquires Matrix Consulting in Rapid City, South Dakota, strengthening solutions to government and tribes
2009 Leadership succession hire is made because 78% of ownership was retiring
2003
2010
Establishes Water & Natural Resources market sector
Acquires PHC Reclamation in Cheyenne, Wyoming, to add mine reclamation services
Celebrates 50 years of service
Acquires AQUA TERRA Consultants augmenting hydrologic and water quality modeling and software development
2013 Expands Montana operations to include offices in Missoula and Bozeman Acquires WRC in Denver, Colorado, specializing in water rights
Acquires Mine Development Associates and TerraSource software in Reno, Nevada
Strategic hire expands Albuquerque, New Mexico, services into Water & Natural Resources
2017 2012 Opens Minnesota office Becomes 100% ESOP
2000s
2019
Acquires SSG, Ltd., expanding data and technologies services to commercial clients and establishes a presence in Dallas, Texas
2014 Acquires Morgan Worldwide in Lexington, Kentucky, specializing in mine design
2016 Acquires North Rim Expoloration Ltd. expanding geographic footprint into Canada and broadens technical expertise in mining and energy sectors
2010s
10 | 50 years of respec
acquisitions transmitting culture
After consistently expanding our technical capabilities through the decades, RESPEC’s successful long-term strategy became acquiring companies that demonstrate excellent leadership. While financials are a key aspect of any sound acquisition strategy, the RESPEC leadership team looks at the whole picture of the acquisition, not just a balance sheet. Transmitting culture before acquisition is the key to a seamless win-win transition. A core component of continued growth, identifying ideal acquisitions that fit our values is key to defining RESPEC’s place as a global leader in geoscience, engineering, data, and integrated technology solutions.
1980S GECR RESPEC’s first acquisition was a local geochemistry company that consisted of SDSM&T professors and graduate sttudents. Their work involved geochemical testing and contaminant modeling of uranium tailings.
Gro/Tech RESPEC was approached by SDSM&T to help commercialize a patented root-growth stimulator synthesized by its organic chemistry professors. While Gro/Tech’s sponsored research proved the effectiveness of the synthetic hormone, we were continually frustrated by the Environmental Protection Agency’s product registration process. After spending $400,000 for seemingly unending testing, the product was abandoned. The lesson learned was to not step too far outside of your core business area. The technical challenges and required funding will be greatly underestimated.
MTQA This company was formed to explore the concept of marketing software to assist medical transcriptionists with their difficult spellings and medical phraseology. While the transcriptionists loved the software, their hospital managers felt the
software cost was unwarranted. RESPEC’s lesson learned was that even great ideas need to have customers that recognize the value in the idea.
1990S Teachmaster Technologies
position in the New Mexico area and expanded our client base to commercial, state, and local governments.
2010
As PCs and MACs started showing up in every school and classroom, a need emerged for software to aid teachers in developing curriculums. A database was collected of curriculum standards for almost every state, and management software was written to compare and choose standards to create the user’s new curriculum. A great idea once again, but this widely diverse market was very difficult to penetrate. The company sold in 2001 at a profit to Apollo Educational Software, a publicly traded company with the marketing capability to expand the client base for the product.
PHC Reclamation
2006
Matrix CONSULTING
POD DATA SOLUTIONS In a key acquisition, RESPEC gained Albuquerquebased POD Data Solutions. POD added 27 new employees to RESPEC and significantly strengthened RESPEC’s technology market
The PHC-REC team added to RESPEC’s mining capabilities. Led by SDSM&T graduates, PHC provided mining reclamation and environmental restoration, including reclamation design and construction services. Through this acquisition, RESPEC eventually grew geographically as well into the key western states of Wyoming, Montana, and Idaho.
2011 The MATRIX team consisted of environmental and regulatory specialists, engineers, hydrologists, biologists, wetland specialists, reclamation experts, and geographic information systems specialists. This acquisition increased RESPEC’s ability to provide turnkey solutions to government, private industry, and tribes in the mining, energy, and water markets.
Moser & Associates With the acquisition of Denver-based Moser & Associates (also led by SDSM&T graduates), RESPEC expanded its geographic presence to Colorado and added more water-resources expertise. Moser enhanced our continuum of services in the areas of planning studies, engineering analysis, and infrastructure design documents.
2013 WRC Engineering RESPEC’s acquisition of WRC grew RESPEC’s consulting services for the development, use, management, and protection of water and land resources. WRC diversified RESPEC’s service offerings in water rights and water and wastewater engineering.
2014 Morgan Worldwide Morgan was a specialized, high-quality mining consulting company located in Lexington, Kentucky. The Morgan acquisition brought extensive expertise in providing services for the aggregate, coal, gold, and diamond markets at national and international levels. These services complemented RESPEC’s expertise in materials testing, geomechanical modeling, groundwater modeling, mine and field services, and instrumentation.
2015 Aqua Terra consultants Through its 20-year history, AQUA TERRA established a reputation (through national-level competition) as a premier consulting company for providing services in hydrology and nonpoint-source pollution modeling and evaluation, exposure assessment, and environmental software development. This acquisition enhanced RESPEC’s hydrologic/water quality modeling and software development expertise and provided more robust water-focused services to RESPEC’s broad base of mining, energy, and natural resource development clients.
50 years of respeC | 11
Flat Rock geographics First established in 2003, Flat Rock was a geospatial software and services company that specialized in developing webbased and mobile mapping applications to support applied geographic analysis, business intelligence, asset management, and Geographic Information Systems (GIS) data creation and management. With the acquisition of Flat Rock, RESPEC built upon the strategic objective of integrating technology into water, mining, and energy markets.
Floyd Development services Mr. Hugh Floyd joined RESPEC and brought a small practice of professionals to focus on the private-sector infrastructure design market that continues RESPEC’s investment in the build environment.
Educator and Student Open Learning (EASOL) EASOL‘s focus was honed by developing a nationwide model to advance student achievement in the K–12 education market, which allows RESPEC the opportunity to bring data and technology solutions into education and affects how students learn and how teachers teach.
2018 ASSOCIATED DESIGN PROFESSIONALS, INC. Mr. Mike Bartusek joined RESPEC and gave us an immediate presence in Colorado Springs, Colorado. His private infrastructure design experience also helped diversify our service offerings in Colorado.
2016 North Rim Exploration The North Rim acquisition in Saskatoon, Saskatchewan, enhanced RESPEC’s technical service offerings through expanded capability in the geoscience consulting market. Specifically, North Rim’s specialized capabilities in the areas of drilling management, mineral resource mapping, mining integrity studies, feasibility studies, and 43-101 report compilations enabled RESPEC to provide turnkey services to the mining marketplace.
2017 SSG Founded in 1997 in Dallas, Texas, SSG had established itself as a market leader by providing exceptional software solutions for an impressive list of Fortune 500 clients. As an Oracle Gold Partner recognized for achieving Global Oracle Billing and Revenue Management Specialization, SSG brought extensive experience in delivering complex usage-based billing solutions.
ERMC2 Mr. Mike Ricci joined RESPEC and brought the resources of ERMC2 to expand our mining expertise in surface mining, specializing in coal.
2019 Mine Development Associates (MDA) For over 30 years, MDA served the mining community with geological expertise and engineering services. Complementing RESPEC’s leadership as an integrated solutions partner for mining, minerals, and energy, MDA’s specialized capabilities include resource modeling, competent persons reports, optimizing mine designs, and planning production schedules.
TerraSource Software Since 1996, TerraSource had been providing sales, training, and technical support for several exploration- and mining-related software programs, including Surpac, MineSched, Whittle, and ArcGIS. TerraSource also developed GeoSequel®, which is a drillhole and sample data management application for exploration and mining.
from local to global
In the early 1970s, RESPEC still consisted of makeshift offices, a name-only corporation, and a handful of hopeful engineers looking for that first “big one.” Nonetheless, they sustained their original idea of building a small engineering consulting company in South Dakota’s Black Hills, a place they had chosen because of its unparalleled beauty and its ideal environment for raising families and enjoying nature. At our 50th anniversary, we are now an internationally respected business at the forefront of engineering and technology breakthroughs, with more than 20 locations in North America and strategic alliances worldwide. With more than 300 professionals, our service horizon has expanded from mining and energy to include expertise in water, the environment, data, and technology. The first seeds so proudly planted locally have grown and expanded to make an impact stretching well beyond the Black Hills of South Dakota.
1969
1985
2010
2015
12 | 50 years of respec
the RESPEC family our people and culture
With monumental technical achievements like RESPEC’s early SPECTROM work, new technologies were developed, such as triaxial testing using our patented ported jacket and significant database work for Sandia National Laboratories and state governments. These technological breakthroughs affected entire industries. RESPEC’s 50-year-old history has a personal side too. The wealth of our 50-year-old business is contained in individual careers with memories marked by winning and losing contracts, blizzards and floods, births and deaths, marriage and children, summer picnics and Christmas toys. Whether creating engineering feats that prevented catastrophe or playing Santa to delight company families, RESPEC’s founders and long-term employees promoted technical leadership and family values without fanfare and with humility. But what people tend to remember most across the decades is what defines our culture: unexpected kindness. Our employees remember the people who sacrificed their paycheck to ensure other employees didn’t miss theirs, caring employees who rallied together by donating vacation hours when a coworker was experiencing a personal crisis, and all those who consistently went the extra mile to build a culture of family and camaraderie.
While many organizations state that company culture is based on a few core values, RESPEC simply defines itself as a family. Former CEO Tom Zeller shared his sentiment. “Since the early days, the practice of a true employee orientation was established to show newcomers the importance of knowing and trusting each other.” This emphasis has steered RESPEC’s company culture from a mere corporate business concept to an inspiring workplace atmosphere, where employees, executives, and spouses are expected to interact with mutual respect, humility, and integrity. Dr. John Osnes summed it up most accurately when he said, “Employees are way more than scientists and engineers here— they are family.” Putting a heightened emphasis on employees’ personal lives and what happens away from just RESPEC offices and project sites has led to a healthy familial team that bands together through decades. Because RESPEC’s leaders innately value a curious, entrepreneurial spirit, the company has always encouraged employees to nurture their passions and grow their careers accordingly, rather than making them fit a set of requirements or a job description. This unique characteristic of investing in employees beyond simply the work they can produce enables RESPEC to continue making meaningful technical contributions worldwide. Throughout the decades, leadership and employees have remained steadfastly faithful to a culture of “work hard, play hard, and don’t talk about what happens at the Sunstroker.”
50 years of respeC | 13
“
We don’t just clock in and clock out. Call it a family if that’s what you want, but it’s something more than just coming in, doing your thing, and punching out at 5:00, and not really knowing where all these people go after that. It helps with how you interact with these people professionally. It allows you a little more flexibility in dealing with people you work with. You understand them and they understand you a little bit better.” —Kirby Mellegard, Rapid City, SD Former Manager of Materials Testing
“
I joined RESPEC as part of the SSG acquisition, which can often be difficult situations to navigate, but I immediately felt welcomed and part of the team by everyone in RESPEC offices throughout the country. I’ve stayed with the company because of the culture and camaraderie. Cookouts, crawfish boils, stories shared over a beer, and annual events—where employees and families are encouraged to attend—really helps build and reinforce a unified, team environment.” —Tracy McGrath, Richardson, TX Corporate Information Technologies Support Specialist
“
Our culture is all about innovation and the exploration of ideas. Many places, you’re confined to standard, typical services, but RESPEC encourages us to think outside of the box. We’re able to work with really creative, innovative people, and because of that, we can grow. Our solutions are truly tailored to clients, and it’s broadened and expanded my own creativity. I don’t feel limited.” —Julie Blackburn, Roseville, MN Minnesota Area Manager
“
“Are you part of a stagnant company, or is it a team that really enjoys working together? You do a lot of business, believe it or not, when you sit down with your coworkers in a social setting. You learn about what they’re working on, and they learn about what you’re working on. There’s a lot of value in knowing who you’re working with.” —Tom Zeller, Rapid City, SD Former CEO/President
“
“I love the flexibility of working here. I’m a mom of a 5-year-old and I’m also very career driven, and I’m able to mix those two together. RESPEC respects my family life, which is very important. But they also trust me and understand that I’ll do the job that they’ve asked me to do.” —Tabetha Stirrett, Saskatoon, Saskatchewan Co-President, RESPEC Consulting Inc. (Canada) and Project Geologist
1970-1979
the seventies
1980-1989 the eighties
1990-1999 the nineties
2000-2009
the new millenium
2010-2019
the current era
50 years of respeC | 19
“
“I’ve worked with a lot of people throughout the company, and we have a lot of people who have been here for 20, 30, 40 years, plus. I think just the fact that they stay here that long speaks to the integrity of the company.” —Karla Lipp, Rapid City, SD Corporate Director of Administration
“
RESPEC was the first company that gave me an opportunity out of college. I’ve always felt supported by the company, especially by my coworkers when it comes to professional aspirations, but also personal ambitions and goals. Without that positivity and support, there is no room to grow professionally and personally, which makes RESPEC unique.” —Brett Drake, Cheyenne, WY Project Engineer
“
Working here is enjoyable and unique because the employees I work with totally focus on getting the job done and ensuring client satisfaction by not just following their job title. Everyone works toward a successful project and does whatever it takes, whether it is listed in their job description or not.” —Dan Donoghue, Albuquerque, NM Principal Consultant
“
I love the collaborative spirit of this company, not only in our local office, but across geographies as well. Working with industry experts from other regions brings different perspectives and skills to challenging projects. Our local office of 9 feels like an extended family, where we take moments out of the day to laugh together and also help each other out when it’s time to hammer down!” —Matt Johnson, Bozeman, MT Project Engineer
“
We really respect the individual. We respect that they’re more than engineers and scientists—that they are family. We want to give every opportunity we have to make this your home.” —Dr. John Osnes, Rapid City, SD Former Manager of Mine Geomechanics
“
RESPEC has given me a good work/life balance. I have a network of coworkers that I can relate to and collaborate with. I really enjoy coming to work every day and I love that everyone is passionate about what they are doing. The smaller office environment makes it easy to get to know everyone on a personal level and feels like an extended family.” —Rebecca McClure, Denver, CO Accounting Specialist
20 | 50 years of respec
1969 the beginning a seed planted in the black hills
At the end of the 1960s (one of the most tumultuous decades in history), RESPEC’s story began when five free-thinking engineering professors (Dr. Paul Gnirk, Dr. Earl Hoskins, Floyd Matthew, Dr. William Reuter, and Dr. James Russell) and an attorney (Michael DeMersseman, Esq.) joined forces in Rapid City, South Dakota. While working as a professor of Mechanical and Mining Engineering at SDSM&T, Dr. Paul Gnirk and his colleagues had a growing frustration with the lack of research opportunities on campus. They also were convinced that given an opportunity, graduates of SDSM&T would love to invest their lives and careers in the area if they could find professional engineering opportunities. RESPEC’s total capitalization began with $1,000—a $200 investment from each of the five professors and a $200 promissory note for future stock purchases to Michael DeMersseman, who wrote the corporate bylaws. Although one of the men’s wives was hesitant to contribute to such an unsure investment, the initial risk proved wise for a company now valued at millions of dollars.
Right: Pictured left to right are some of RESPEC’s earliest employees: Arlo Fossom, Les Wagner, Paul Gnirk, Bill Grahams, Julie Annicchiarico, Tom Zeller, Joe Ratigan, Leo Van Sambeek, and Frank Hansen.
“
Gnirk has a lot of self confidence and an entrepreneurial spirit. He was much gutsier than the way I perceived most professors to be. He was a chance taker, but he knew what chances he was taking... He knew who he wanted to be a part of the organization at the beginning— the concept was, “there’s talent here that isn’t being used. We should be consulting and form a corporation to provide the basis and structure for it. As the head of the Mechanical Engineering Department, Gnirk knew the students he was extremely high on. As soon as there were enough contracts and money, he assisted those people in getting their PhDs. Gnirk picked these people and helped them build a specialized group that could furnish information that was not just general engineering information.“ —Michael DeMersseman Original RESPEC Founder
50 years of respeC | 21
Incorporated in the state of South Dakota in 1969, RE/SPEC Inc. is an abbreviation for Research Specialties.
22 | 50 years of respec Left: RESPEC’s original founders left to right Floyd Matthew, Paul Gnirk, Jim Russell, William Reuter, and Earl Hoskins (not pictured: Michael DeMersseman).
Below: RESPEC’s Articles of Incorporation was signed on June 11, 1969.
After the company’s incorporation on June 11, 1969, founder and first president Dr. Gnirk’s driving motivation was to build a highly qualified engineering workforce by keeping SDSM&T graduates in state. The school’s graduates were a natural fit for RESPEC’s early talent requirements and included RESPEC’s first employees: Gary Callahan, Helge Hovland, and Leo Van Sambeek, who were all SDSM&T graduate students. Fifty years later, Dr. Gnirk’s far-reaching vision and our valuable partnership with SDSM&T continue to make a significant economic impact in South Dakota.
in rock mechanics and engineering. They were keenly aware that to build the highly specialized workforce required to support RESPEC’s growing business in deep geologic waste repository design, education was key. This commitment to ongoing education continued as RESPEC grew and has allowed many employees to enjoy company-supported higher learning.
In the 1970s, RESPEC had many challenges finding financial backing and support, managing cash flow, creating an industrious workforce, building a permanent workplace, and winning sustaining contracts. Despite the upfront cost, RESPEC’s founders were deeply committed to providing a continuing education program for employees seeking PhDs
Thanks to the technology evolution that made the successful lunar mission possible, American innovation caught the wave of a new level of inspiration. RESPEC was a part of the greater engineering and science community that boldly aspired to heightened human endeavors across many industries. But RESPEC’s founders could
50 years of respeC | 23 never have understood the decades-long ripple effect that their actions would have on their employees, their employees’ families, and the communities where employees and their families worked and lived. Having started in a period of technological openness, possibility, and pride, RESPEC has always stood out as a unique company and been characterized by the willingness of employees to challenge conventions, relentlessly pursue new opportunities, and make difficult sacrifices. The core values of perseverance, trust, and unwavering commitment were cemented into the foundation of RESPEC.
the founders
honoring respec’s visionary pioneers RESPEC’s story would be unthinkable without the trailblazing spirits and bravery of its pioneering founders. Through their collaboration and shared intellect, creativity, and ambition, the groundwork of RESPEC’s corporate culture was laid. The initial employees forged a strong work ethic based on quality and excellence. RESPEC’s work continues to be enriched by each employee’s contributions today. RESPEC’s long-time employees all agree on one thing: Any organization’s greatest asset is its people and the change those individuals can affect.
From the beginning, the founders established three priorities that would create RESPEC’s unique identity. First, take care of employees. Second, take care of clients. Third, stick to the company’s core values. The overarching goal— to always exceed expectations—still guides our work today.
Dr. Paul Gnirk, PE Professor of Mining and Mechanical Engineering, SDSM&T President and Principal Consultant, RESPEC
Mr. Floyd Matthew Professor of Civil Engineering, SDSM&T Consultant, RESPEC
Dr. Earl Hoskins Professor of Mining Engineering, SDSM&T Consultant, RESPEC
Dr. William Reuter Professor of Electrical Engineering, SDSM&T Consultant, RESPEC
Mr. Michael DeMersseman, J.D. Corporate Attorney
“ Above: Principal founder Dr. Paul Gnirk at Jefferson Island Mine , Louisiana.
“I would not do anything differently. I was fortunate to have associations with people who came to work here. It does not happen often in the real world—people coming together and sharing the same values as a team.”
—Dr. Paul Gnirk Original Founder of RESPEC and Past President
Dr. James Russell Professor of Civil Engineering, SDSM&T Consultant, RESPEC
24 | 50 years of respec
1970-1979 the seventies the garage days
Like other great businesses that started in someone’s garage—notably Apple, Amazon, Microsoft, Disney, Google, and Dell—RESPEC’s laboratory and fieldwork also began in garages. Our youthful, eager team tried to maintain a clear list of priorities for a workplace—popcorn and beer vending machines were on the top of their priority list, but running water didn’t make the cut! In the bleak job market of the early 1970s, engineering jobs were few and far between. Those who could secure full-time employment often earned less than $1,000 per month, so these office perks helped support a culture of optimism. RESPEC’s first job was commissioned by the South Dakota Department of Transportation in 1971. The task was to inspect a dangerous stretch of road in Spearfish Canyon, South Dakota, to determine whether or not a tunnel was a feasible option for a safer road. The study determined that adding a tunnel would not provide the additional safety needed, and the project closed. This first contract, however, brought in $200 and launched RESPEC on the path to building a revenue base for operations.
In its first 3 years, RESPEC had only one revenue-generating job, but RESPEC’s team stayed together and persevered while looking for a bigger opportunity. The wait paid off. In May of 1972, RESPEC secured its first major contract with Oak Ridge National Laboratory managed by Union Carbide Corporation. The contract was a coup for such a small company. While the US had been using nuclear power to produce electricity since 1957, no legislation existed for managing the waste products which, if improperly disposed of, could cause devastating environmental impacts that would affect many future generations of people. This massive problem translated to one of RESPEC’s greatest opportunities, and the design of nuclear waste repositories in salt became RESPEC’s core business. In 1972, the month after securing their first contract, the devastating flood in Rapid City brought with it a deluge of drama for RESPEC employees, who were just beginning to find their footing. After working on a report until midnight with Dr. Gnirk at SDSM&T, Dr. Gary Callahan waded home through chest-high flood waters to rescue his wife.
1970s highlights In 1971, RESPEC’s first job was commissioned with the South Dakota Department of Transportation. On June 9, 1972, the Rapid City Flood devastated the area and destroyed RESPEC’s laboratory equipment. Work with Oak Ridge National Laboratory at Avery Island salt mines in Louisiana began simulating nuclear waste placements and rock testing. First contract with Sandia National Laboratories was awarded.
50 years of respeC | 25
“ Above: RESPEC’s first completed job report. The report, which was written for Oak Ridge National Laboratory on June 30, 1972, was written by Gary Callahan and Paul Gnirk during the Rapid City flood.
Far Right: RESPEC’s early College Park Lab was just a garage in north Rapid City, South Dakota, with no running water, no bathrooms, and a poor HVAC system. The apparatus on the left features the test machine that Leo Van Sambeek, one of the first employees, built in 1972 and on the right is an early soil test machine.
We had the opportunity to carve out a niche with very little competition. No other company could do that.” —Dr. Paul Gnirk Original Founder of RESPEC and Past President
RESPEC’s modest headquarters were not immune to the devastation that the flood had on the area. The flood also destroyed the newly purchased laboratory test-machine components stored in Dr. Earl Hoskin’s garage. Despite the flood’s toll on the laboratory equipment, the group continued to develop a strong laboratory service and forged ahead in true entrepreneurial spirit. After sharing space in the Rushmore Building with Floyd Matthew’s civil engineering company, RESPEC moved into the Quarnberg Building at 809 South Street in the fall of 1972 and constructed a makeshift laboratory with plastic covering the walls and air ducts to prevent salt dust from spreading throughout the building. Soon after, the laboratory needed more space for its testing machines and sample-preparation equipment, initiating the move into what was affectionately called the “garage lab” in north Rapid City. The engineering side of RESPEC moved again in 1974 to a strip mall at 2103 Seventh Street. This office was also short-lived, and RESPEC built and moved into a combined office and laboratory building in the Rushmore Business Park
in 1976–1977. When asked why, Dr. Gnirk would often say, “We chose the east of Rapid City location because it was close to the airport.” By 1978, RESPEC had grown to a staff of 30 engineers and administrators at the 1 Concourse Drive office location in the business park.
26 | 50 years of respec
In the 1970s, RESPEC experienced its first government-imposed struggle when sustained funding on federal contracts was uncertain. The lack of capitalization and limited line of credit were problematic, which left the young company in limbo and highlighted the need to begin exploring new service lines. On the verge of closing its doors, RESPEC secured a contract for coalpillar strength research from the US Bureau of Mines and through the University of Utah in 1974 (Job #009). From that crucial and timely win,
RESPEC rapidly hired more engineers and won even more contracts as it successfully managed growth during the decade’s energy crisis and severe inflation. The 009 project marked the emergence of field engineering to complement the laboratory testing and analysis capabilities. In 1975, Oak Ridge National Laboratory contracted RESPEC to begin fieldwork at the Jefferson Island and Avery Island salt mines in Louisiana. The work involved designing and installing simulated nuclear waste placements and their heating effects on the surrounding rock. Along with similar work at the Weeks Island salt mine for the Strategic Petroleum
Above: Test machines in RESPEC’s laboratory designed by Bill Grams, who worked with RESPEC’s engineering group in the 1970s. Left Inset: Certificate to practice engineering in the state of South Dakota wherein RESPEC officially (and legally) became consultants as a corporation, rather than individuals.
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Reserve, this job provided a springboard for rock testing, engineering analysis, and other fieldwork that has lasted more than 40 years. Another lasting imprint was made in 1975 when RESPEC was awarded its first contract with Sandia National Laboratories for a preliminary design of an alpha repository and field-testing program. This repository later became the Waste Isolation Pilot Plant (WIPP) site where RESPEC continues to perform rock testing and modeling. In the second half of the 1970s, RESPEC began international work by expanding to Canada and Sweden for preparing preconceptual design studies for nuclear waste repositories in rocks other than salt. Toward the end of the 1970s, the Three Mile Island Unit 2 reactor near Middletown, Pennsylvania, partially melted on March 28, 1979. As the most serious accident in US commercial nuclear power plant operating history, this near catastrophe emphasized the importance of nuclear power safety regulations. This incident paved the way for massive legislation changes that would develop throughout the 1980s and change RESPEC’s business forever. In a field known for extreme specialization and acute competition, RESPEC sought to find the right balance of field, laboratory, and analytical work. RESPEC evolved in performing development work, writing computer codes, and more efficiently and accurately running laboratory tests. Working hours often poured into the evenings
Inset: An article from the Rapid City Journal on September 29, 1975, announcing RESPEC’s contract with Sandia National Laboratories on the Waste Isolation Pilot Plant site. Right Top: Randy Stickney in blue and an electrical engineer from Oak Ridge National Laboratory in 1978. Right Bottom: RESPEC employees on a tour at Homestake Mine in Lead, South Dakota. Pictured left to right are: Les Wagner, Glenda Coats, Dan Schiermeister, Paul Senseny, tour guide, Tom Pfeifle, tour guide, Bill McClain, Mel Klasi, John Osnes, Marc Loken, and Kirby Mellegard.
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“
Ownership is key. In some ways, we all fail more than we succeed. We need to own mistakes. Try to rectify it; then your fellow workers will respect you more for that than if you try to pass the blame. As they say: man up and own that screwup. Then? Maybe you have to work til midnight to fix it because it was your mistake. That’s owning the problem.” —Kirby Mellegard Former Manager of Materials Testing
Top Right: RESPEC’s first brochure from 1975.
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Bottom Right: One of RESPEC’s first organizational charts, dated April 1, 1975. Left: Kirby Mellegard at the electronics and calibration workbench.
and sometimes even into early morning as tests in the laboratory required continuous monitoring to successfully complete. Whereas some projects took hours or days to complete, nuclear waste projects could require 3 or more years of testing. Maintaining a sense of friendship and family, employees made many sacrifices in their efforts to succeed. RESPEC’s early success wasn’t just dependent upon the engineers—it relied heavily on diverse skill sets from our early-on ace secretaries Dawn Donellan and Julie (French) Annicchiarico. Winning contracts required writing technical and cost proposals, which had strict deadlines and consequently, long hours of intense work for everyone involved. Operationally, to build client relationships and report project progress, employees began to rack up millions of frequent flyer miles and shared hotel rooms to cut costs. Technologically, RESPEC was still in the predigital days and used IBM computer key punch cards that were processed at SDSM&T or in remote-batch processing on a Control Data computer located in Minneapolis, Minnesota. Still, these early employees look back fondly on working 16-hour days; going without pay for months; and performing their work with slide rules, computer key-punch cards, technical drafting pens and drawing boards, and early manual typewriters without a correction key. New products and technology began to revolutionize the way consumers and businesses communicated. In the workplace, a change was occurring from calculators to PC microprocessors and Apple computers as technology began to increase productivity. At the same time, RESPEC’s involvement in nuclear waste disposal studies and salt-mechanics applications was just beginning.
Left : Kirby Mellegard in RESPEC’s calibration lab circa 1975.
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1980-1989 the eighties
1980s highlights The Nuclear Waste Policy Act (NWPA) legislation opened new doors and closed lines of work throughout the decade. Work shifted from rock-salt projects in Texas to tuff-rock environments in Nevada. Project work expanded to Saskatchewan for IMC at the potash mine. The rights to keep surplus laboratory equipment were successfully negotiated. Software programs under SPECTROM were developed.
new legislation forces new partnerships Following the tumultuous uncertainty of the 1970s, RESPEC began a new decade with optimism and began constructing the current laboratory facility in another part of the Rushmore Business Park in 1981. RESPEC remained committed to staying on the cutting edge of the latest technology by purchasing the Data General MV8000, the company’s first super-minicomputer (small mainframe computer). While RESPEC was improving the company’s headquarters and infrastructure, external forces and legislative changes would impact project work for a large part of the 1980s. The Nuclear Waste Policy Act (NWPA) legislation was responsible for many of the ups and downs of RESPEC’s finances and lines of work in the 1980s. The federal law established a national program for safe, permanent disposal of highly radioactive wastes and targeted three
specific geologic materials for characterization: salt, basalt, and tuff. The NWPA also presented the path for licensing a geological nuclear waste repository. The law opened a new set of doors, with RESPEC beginning field experiments in conjunction with Sandia National Laboratories at the WIPP facility (New Mexico’s deep geological repository for transuranic waste) later that year. The work in New Mexico was a timely replacement for the Avery Island experiments, which wrapped up in 1983. In 1983, RESPEC was enjoying a relatively stable and steady income for the first time in a decade. The company had been awarded a $15M contract for consulting and rock-mechanics testing for a proposed nuclear waste isolation facility in a bedded salt formation in Texas, with funding from the US Department of Energy (DOE) through a contract with Battelle Memorial Institute and the Office of Nuclear Waste Isolation (ONWI). The financial stability was short-lived, however. Only 4 years after awarding the contract, work was abruptly cancelled as a result of federal legislation. With a swift signoff from Congress, which
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Left: Sam Key, Vice President, opening the original Albuquerque, New Mexico, office on Eubank Street.
Middle Top: Doug Blankenship and an engineer from the Cote Blanche salt mine in Louisiana, looking at a borehole pressure cell stress measurement installed by the Bureau of Mines. Middle Bottom: Slide rules, one of which can still be found in the Rapid City office, was used for engineering calculations until calculators and computers took over during the decade.
Right Top: Building the new office building in 1981 at 3824 Jet Drive, Rapid City, South Dakota. Although it has been added onto since then, this is where RESPEC headquarters is still located today. Right Bottom: Moving RESPEC’s testing machines into the new laboratory in 1982.
32 | 50 years of respec Left Top: Leo Van Sambeek, Brett Stenson, Sam Key, Doug Blankenship, and Don Stroup at the WIPP site Room D performing thermal structural experiments in 1984. Left Bottom: Kirby Mellegard setting up for a hollow cylinder creep test in the 1/2-million-dollar test machine that RESPEC purchased to prove Leo Van Sambeek’s PhD thesis wrong. His thesis was never proven incorrect. Right Bottom: Frank Hansen performing dislocation density counts on rock salt.
50 years of respeC | 33 Left: Brett Stenson, Wes DeYonge, and Craig Warren after a day’s work on heater tests at Avery Island, Louisiana.
terminated all but one study for nuclear waste disposal (barring one site in Nevada), RESPEC lost an excruciating 50 percent of its projected income overnight. The suddenness of the loss hit hard and forced the company to make extremely tough decisions to avoid closing its doors. Many great employees were lost in the days and months after this devastating blow while RESPEC struggled to find new work to replace a majority of its revenue stream. The legislation that disrupted RESPEC’s Texas project effectively stopped analytical and laboratory work, but the company remained resolute in pursuing fieldwork. Now that nuclear repositories could no longer be located in salt, the company shifted its focus from rock-salt projects in Texas to tuff-rock (hardened volcanic ash) environments in Nevada. RESPEC also adapted and repurposed its experience with salt mechanics contracts into new work in the underground storage of crude oil, natural gas, and compressed air in salt caverns and the mining of salt and potash. The company was effectively transformed from a government-dependent contractor to one that could equally thrive on commercial contracts. This shift in focus quickly brought about propane storage work at Barbers Hill salt dome in Texas, a salt mine closure in Louisiana at Belle Isle for Cargill, and surface subsidence measurement and interpretation at several storage sites. RESPEC began work for IMC at its potash mine (later Mosaic Potash) in Saskatchewan at the time and that work is still ongoing today. The perseverance of a few key employees turned RESPEC’s near-certain demise after the cancellation of the DOE contract in 1987 into an emerging
“
new company gaining footing in the commercial salt-mining and cavernstorage world. RESPEC also began a long-term relationship with the Solution Mining Research Institute, an industry consortium of salt-mining and storage companies. Our involvement allowed five of our employees to eventually serve as presidents of the institute; that exposure allowed us to market to the institute’s members at twice-annual meetings. During the 1980s, Sandia National Laboratories in Albuquerque and Carlsbad, New Mexico, became even more of a crucial client for RESPEC. Engineering analysis and database management (the forerunner of information technologies) grew substantially because of our proximity to the client. In 1988, RESPEC’s successful negotiation of the retention and transfer of the Battelle/ONWI contract to Argonne National Laboratory allowed RESPEC to keep the laboratory equipment and maintain opportunities for further work under the repository program. But it wasn’t just because of luck and circumstance. Dr. Gary Callahan, Mr. Tom Zeller, and Mr. Mike
RESPEC is unique because there is very little corporate politics. It’s project driven —the guys running the projects run the show. And it’s casual—they might be a Berkeley or Minnesota PhD, but they’re running around in their cowboy boots and jeans, and nobody’s trying to impress anyone, except with the quality of their work.” —Michael DeMersseman Original RESPEC Founder
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“
I hate to use the term ‘winging it’, but that has been, in my opinion, one of the hallmarks since the beginning—a willingness to just wing it. Because you can’t be an expert in every aspect of what somebody’s looking for. When our clients call us and ask if we can figure something out, it’s always ‘sure, we’ll figure it out.’ We don’t quibble over ‘oh, that’s not really something we do.’ We’ll figure out how to help you and solve what you’re asking, whether we’ve done it before or not.” —Dr. Leo Van Sambeek Vice President
DeMersseman traveled to Washington, DC to visit with Senator Larry Pressler. This noteworthy visit was instrumental in getting RESPEC the rights to keep what was deemed as “government surplus” laboratory equipment. By the late 1980s, RESPEC’s many technical accomplishments included developing software programs under the umbrella name SPECTROM (Special Purpose Engineering Codes for Thermal Rock Mechanics). A uniqueness of SPECTROM was that the source language for the software was readily available to the public: another example of where RESPEC considered technical understanding to be more important than the tools. While the computer language FORTRAN was typically for science and engineering software, in a true show of unrestrained innovation, RESPEC repurposed the language for its accounting and business software. In 1988, RESPEC’s founder and first president, Dr. Paul Gnirk, resigned as President but continued to work for RESPEC as a Principal Consultant. In 1992, Dr. Gnirk retired to pursue other endeavors with the US DOE and the SDSM&T Alumni Association and to raise longhorn cattle on his ranch east of Rapid City. Dr. William Coons was elected as the second President of RESPEC in 1988. As the decade of Nintendo, IBM PCs, and MS-DOS ended, the first GPS satellite was launched and the transformative technology from the 1980s inspired a new era of innovation and instrumentation for RESPEC and the industries we served. By the end of the decade, RESPEC had the largest salt-rock testing capabilities of any laboratory in the world, advanced in-house written and proven numerical-analysis software, and an active field engineering group working at several mines. The local banks and political community finally took notice of RESPEC’s growing presence and began to believe that RESPEC was a real business. Top: Leo Van Sambeek demonstrating equipment to an attendee of the US Rock Symposium in 1985. Bottom: Dan Schiemeister and Wes DeYonge at WIPP.
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Left: Printouts on thermal paper from lab machines in August of 1983. The far-left image is a programming code created in the BASIC coding software, which is how the laboratory machines were programmed to control the machine, acquire the data, and analyze the data. The right photo is a stress output from a machine.
Above: A memo from Kirby Mellegard to Dan Schiermeister on February 3, 1984. Left: Log book entries from the laboratory in 1987. Employees were required to keep daily log books until 1988.
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staying current
changing with technology
Today’s instant communication and high-speed calculations are made possible by a steady evolution of technology that spans multiple centuries. To lead as a provider of integrated technology solutions, RESPEC had to anticipate, master, and evolve with technology throughout the decades. RESPEC’s multi-decade history offers a unique snapshot of how dramatic this evolution has really been. For example, RESPEC’s first computer, purchased in 1984, had 3 megabytes of memory. In the early 1980s, a single megabyte of memory cost $60,000—an exorbitant sum by today’s standards where a 128GB smartphone contains 128,000 megabytes. As extravagant as the cost was, the new computer gave the company freedom from “renting computer time.” The remote computer-access model was soon to become completely outdated. Another changing technology front that impacted RESPEC was mathematical computing devices. While the company started with the slide rule—the standard for the time—we quickly invested in cutting-edge, hand-held calculators in 1975. The first model was a simple (by today’s standards) HP-35 for $450 and its security cradle for $150. From that point, the ever-increasing chip density, improvements, and shrinking of integrated circuits led to leaps in computing power that fueled the increased detail and sophistication whereby we could perform analyses. The following decades brought about new technologies that the company could rely on for increasingly powerful, detailed, and sophisticated analyses. RESPEC grew from depending on slide rules to conducting complex three-dimensional (3D) analyses on desktop devices that are significantly smaller than the first super computer. The rise of the Internet further increased collaboration, communication, and business opportunities. Today, the Internet continues to produce a steady stream Left: Brett Stenson hand-recording data for heater tests conducted at the Avery Island Site C in 1979. These types of measurements are now gathered through automatic, digital data loggers. Left Inset: Hand-recorded borehole diameters in a salt pillar at Avery Island. This data was collected daily and took several hours to complete.
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of new and innovative tools and business opportunities. The benefits extend further than the technological capabilities and, for RESPEC, our engineers need to be able to correctly analyze data based on a series of numbers and measurements. These better, faster, and smarter tools give our engineers more time for actual problem solving. RESPEC’s long-time Manager of Materials Testing, Mr. Kirby Mellegard, PE, who was with the company from 1977 until 2014, shies away from an overdependence on technology, and warns new employees that technology is only a tool. He says, “Having huge quantities of data are not the same as having knowledge. In a laboratory setting, we get gigabytes of data but if the test is done incorrectly, the data are worthless. The automation of technology can never be a substitute for knowledge that comes from experience.”
“
Technology gives you a better hammer, but if you don’t know anything about building a house, it won’t come out any better. If you depend too much on the automation of technology it’s a poor, poor substitute for knowledge. You get that knowledge by hands-on experience and work. ” —Kirby Mellegard Former Manager of Materials Testing
Continuous major advances in science and technology have fed RESPEC’s innovations and made new kinds of integrated solutions possible. RESPEC’s fascination in, adaptation to, and mastery over new technology keeps us ahead in anticipating and serving industry needs. Our next 50 years depends on staying current and staying ahead of the status quo. Top Right: Natalie Eslinger running a remoteaccess computer and printer. Stored files from the computer were sent to Minneapolis, Minnesota, for remote-batch processing. Bottom Right: Julie Annicchiarico, office administrator extraordinaire, using the Wang word processor. This was the first word processor in the administrative world. Bottom Left: Wes DeYonge in 1979 at Avery Island, Louisiana, making floor extensometer readings using a dial gauge and clipboard for recording.
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1990-1999 the nineties esop unifies the respec family
While astounding scientific and engineering breakthroughs have been a recurring theme in RESPEC’s story, seemingly impossible discoveries began to happen on a regular basis during the 1990s. For example, the Hubble Space Telescope found black holes in the universe and scientific advances revolutionized the study of DNA. In engineering, RESPEC became increasingly known throughout the global research and engineering community as go-to experts in geomechanical engineering, rock mechanics, and salt research. With a far-reaching vision that ultimately ignited a turnaround for the company after a few precarious years, RESPEC leveraged the purchase of surplus government-owned equipment by marketing to potential clients the world-class capabilities of the materials-laboratory testing. This entrepreneurial decision later proved incredibly business savvy because it uniquely positioned RESPEC in the rock-mechanics marketplace.
At this time, the company made a serious decision that intentionally placed the profits and future of the company in the hands of the employees. In 1992, RESPEC employees formed a leveraged Employee Stock Ownership Plan (ESOP) and bought out the 61 percent of the shares of the six founders. This tax-efficient transformation also ensured that employees would always have a voice in company direction and resulted in a unique company differentiator in workplace culture and the marketplace. The RESPEC ESOP recognized the immense value brought by each employee, from executive officers and principal engineers to engineering technicians and administrative staff. Twenty years later, in 2012, the company would have the unique prestige of becoming a 100 percent-ESOP (buying back all remaining capital shares from nine employees) to financially benefit hundreds of employees and their families. Julie Annicchiarico, who was the former Corporate Director of Resources and Information, Corporate Secretary, and a leader in the massive administrative effort of creating the ESOP said, “We were all shareholders. It makes a difference in your psyche. You have a vested interest.”
1990s highlights ESOP was established. Work with rock-mechanics was expanded thanks to the surplus laboratory equipment. A new IT division was created and employed 70 dedicated IT staff for Sandia National Laboratories. Geographic expansion included new offices in Minnesota, Texas, and South Dakota. Work began with two national landmarks—Stone Mountain in Georgia and Mount Rushmore in South Dakota.
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With the rapid expansion of the Internet and the creation of websites, RESPEC had to change its branding because the name “RE/SPEC” was not permitted as a website name because of the slash. Left: Boasting of 10,000 square feet of materials testing space, RESPEC’s laboratory is the largest of its kind in the world. Right: Steve Olsberg and an intern erecting signage in front of the Rapid City headquarters building that displayed the new RESPEC logo.
During the summer of 1995, a company-wide skills assessment was implemented to help each employee better connect with their own strengths and zone of genius. The skills assessment revealed that the company had a talented technical and administrative team that could lead the company into the future. This assessment led to a series of organizational shifts, including the election of Mr. Tom Zeller (long-time Chief Financial Officer [CFO]) to President, a position he held for the next 15 years. Mr. Zeller commented on the unique challenges of his positions at RESPEC: “As CFO you’re always looking in the rear-view mirror, but as CEO you always have to be looking ahead.” The internal strength brought about by the skills assessments came at an opportune time. By 1996, RESPEC again dealt with the fallout from regulation changes and shifting politics around nuclear waste regulations. While this meant losing a major nuclear waste-disposal
contract in Nevada with Sandia National Laboratories, the team continued to move forward despite worried bankers and auditors who thought losing this contract was a sign that the company’s end was near. As Internet use accelerated in the 1990s, RESPEC continued ramping up its Information Technology (IT) services and eventually employed approximately 70 IT staff members to work out of its Albuquerque, New Mexico, office with Sandia National Laboratories. As the need for IT work grew, RESPEC’s newly created IT division began searching for an acquisition partner to expand service offerings. RESPEC’s IT team forged ahead and eventually received major recognition via the R&D 100 Award, one of the most prestigious innovation awards for ATM Encryption. RESPEC continued performing rock-mechanics analyses for the Yucca Mountain and WIPP projects and performed salt-mechanics studies
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for mining and cavern storage. RESPEC also provided salt-mechanics support at the Strategic Petroleum Reserve and was awarded a contract by the Defense Nuclear Agency for a study of rock-liner interaction. RESPEC supported WIPP efforts, including the WIPP compliance submittal to the US Environmental Protection Agency, especially as it involved designing underground seals and shaft plugs (with design lives of 10,000 years!). By the end of the 1990s, RESPEC’s success was now recognized at a national level. We performed highly visible structural analysis work on the Stone Mountain Memorial in Georgia, and real-time monitoring of Mount Rushmore in South Dakota–gracing covers on several engineering magazines and LIFE magazine. We were awarded the Applied Research Award for significant and original research from the US National Committee for Rock Mechanics in 1999, and Sandia National Laboratories named RESPEC as a Strategic Partner. RESPEC launched three new offices in Minnesota, Texas, and South Dakota during the 1990s. By the end of the decade, RESPEC’s team was on the rise and ready for the new millennium.
“
There’s a difference in working for an employee-owned company. As an employee-owned company, you have a voice as a shareholder, and you believe that what you’re doing is coming right back to you.” —Dr. John Osnes Former Manager of Mine Geomechanics
Above: Joe Ratigan (left) at Mount Belvieu, Texas, inspecting pipelines crossing a potential sinkhole in 1994. Bottom Left: RESPEC conducting in situ stress measurements at shallow depths in Austin Chalk for superconducive supercollider near Waxahachie, Texas. These types of measurements had never been conducted using oil-field equipment in history and were successful. Bottom Right: RESPEC installed a new crack grout and rock-monitoring system to ensure that Mount Rushmore would be stable for another 10,000 years.
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growing & expanding A GLOBAL FOOTPRINT OF DIVERSIFICATION
Through a mixture of organic growth, strategic acquisitions, and careful investments, RESPEC expanded into new geographies and developed more ways to serve a broader and more diverse client base. The company’s global footprint was increased by offering a wide range of services to public and private clients in Mining & Energy, Water & Natural Resources, and Data & Technology Solutions business units.
Czech Republic
ireland
united kingdom austria italy germany united states
Poland
France
Belarus
Romania
Finland
slovakia
turkey
Kazakhstan serbia
Hong Kong
Ukraine
vietnam Kyrgyzstan
Switzerland
Canada
malaysia Philippines
spain Morocco panama
mexico Colombia peru chile
Indonesia
venezuela israel Ghana Kuwait ecuador
Pakistan india Congo
Brazil Tanzania South Ethiopia Africa argentina
china Mongolia Madagascar
thailand
australia
new zealand
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2000-2009 the new millenium
2000s highlights Annual gross revenues exceeded $10M Awarded the American Council of Engineering Companies Grand Award for work with the Belle Fourche Irrigation District Awarded the Outstanding Achievement Award by the South Dakota Engineering Society for the Rock Block Monitoring System for Mount Rushmore Awarded the Excellence Award for Custom Software for work with the New Mexico Public Education Department
growth through water resources and technology
At the turn of the century, RESPEC was part of the global technology community that waited for the notorious Y2K bug to crash computer networks worldwide. While the beginning of the twenty-first century proved to be anticlimactic when computers didn’t explode and networks remained intact, Y2K brought attention to IT vulnerabilities in every industry sector, and RESPEC was already planning its next business line in data and technology. For the first time, RESPEC’s annual gross revenues exceeded $10 million, which indicated its continued growth—and success—in the market. With social and business norms rapidly changing to accommodate new technology, RESPEC swiftly made changes to conduct business in a society where data were moving faster than ever before.
The team was awarded a multi-schedule federal GSA contract for engineering, IT, and environmental services in 2003. RESPEC was also selected by the Albuquerque Technical Vocational Institute to implement a new IT enterprise infrastructure in the same year. RESPEC, which was named a Novell Gold Partner in 2004, remained New Mexico’s largest Microsoft Gold Certified Partner and was approved for advanced infrastructure solutions. After searching for an IT services partner with long-term contracts, unique expertise, financial success, and great leadership, RESPEC acquired POD Data Solutions, Inc., an IT consulting firm located in Albuquerque, New Mexico, with 27 employees. The 2006 acquisition provided instant diversification into many new markets, added new IT capabilities to RESPEC, and gave the data and technology team a home inside the Albuquerque office. After the POD acquisition, RESPEC formed a team and won the IT Staff Augmentation contract at Sandia National Laboratories in 2007.
50 years of respeC | 43 Top Left: As part of the Dewey-Burdock proposed in situ uranium project in the southern Black Hills of South Dakota, RESPEC conducted baseline groundwater and surface-water studies and geology, GIS, and permitting tasks. Bottom Left: John Osnes at a Wyoming drilling site inspecting rock cores as they are recovered from deep underground. Bottom Right: RESPEC staff designed and implemented a monitoring plan for collecting water-quality samples and measuring stream discharge in the Cheyenne River Watershed in western South Dakota. Water quality samples were collected over a 2-year period and data were used for a statistical analysis of water quality as well as calibrating and validating a watershed model.
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Throughout the early 2000s, our team continued to work with Sandia National Laboratories on a scientific software development contract. In 2004, Sandia National Laboratories awarded RESPEC a multiyear contract for IT professional services, and RESPEC was named a Sandia National Laboratories’ Strategic Supplier in 2005. In 2003, a Water & Natural Resources (WNR) market sector was established when the Environmental Services unit was underperforming and losing ground in Pierre, South Dakota, and Minneapolis, Minnesota. The new WNR business unit started with a partnership between RESPEC and Dr. Scott Kenner, who was a water and natural resources professor at SDSM&T. It allowed students to apply water solutions to tackle problems with water quality throughout western South Dakota. Understanding water quality in large-scale watershed assessments led to a growth in HSPF modeling experts, which is still a niche service today.
In 2005, RESPEC reorganized along three business lines of Engineering, Information Technologies, and Water & Natural Resources. The WNR business unit at RESPEC provided cleanup services for contaminated oil-field sites in southeastern New Mexico. In South Dakota, the Belle Fourche Irrigation District received grant funding from the US Department of the Interior, and RESPEC played a major role in upgrading their irrigation district capabilities. Another win occurred in Canada with expanded work at the IMC potash mine in Esterhazy, Saskatchewan. At the forefront of solving engineering problems using IT as an aide in preventing potash mines from flooding, RESPEC’s team completed a SQL database to drive the Water Control Information System (WCIS). When IMC later merged with Cargill and formed Mosaic Potash, RESPEC was appointed as the vendor of choice and had earned a strategic position in the new company. The continuous (and still on-going) IMC/Mosaic/Cargill relationship now spans 35 years—only a combination of Sandia National Laboratories’ projects have a longer client relationship. During the 2000s, RESPEC was again recognized for engineering excellence and awarded the prestigious American Council of Engineering Companies Grand Award for Engineering Excellence for the Belle Fourche Irrigation District project. Further, the South Dakota Engineering Society recognized RESPEC’s Rock Block Monitoring System for Mount Rushmore with an Outstanding Achievement Award. While joining the RESPEC team, POD received the prestigious Excellence Award for Custom Software at the New Mexico IT & Software Association for the Public Education Department Automated Budget Management System. Strategic alliances became an important part of growth. RESPEC formed valuable alliances with Cisco Solutions and became a Microsoft Gold Partner certified in e-commerce. We also formalized strategic alliances
Left: Looking up Mosaic Potash’s #5 shaft at Carlsbad, New Mexico. The white dot in the center is the surface (sky) from 800 feet underground, proving that the shaft is unobstructed.
“
Some employees wanted to go out and buy this big, gas grill for our cooking a whole hog at our cookouts in the summer time. I told them ‘you can’t spend that kind of money— it was going to be like $2,000—on a grill to cook a whole hog.’ So the lab guys went out and bought parts and a big barrel and built their own. They got all the parts and pieces and motors. I bet they spent $10,000 building that gas grill just so we could cook a hog. I should have just let them spend the $2,000! These engineers know how to get around those kinds of things. But if you give them a challenge, they’re going to get it done. We still use it, so it was a good investment.” —Tom Zeller Former CEO/President
50 years of respeC | 45
Top Left: The underground pumping station in Mosaic’s Esterhazy, SK, potash mine. The pumping capacity was 20,000 gpm to surface from a depth of 3,200 ft underground—a several million dollar per month electric bill! Top Right: RESPEC worked closely with local stakeholders and the Belle Fourche River Watershed Project to secure over $22 million to plan and implement conservation practices. This effort resulted in several impaired waterbodies being delisted and received national recognition by the US Environmental Protection Agency.
with SDSM&T and PB Energy Storage Services, Inc., including forming industry associations at several salt-cavern storage fields to avoid confidentiality concerns with operating parameters and data collection. The new millennium was a time for formally establishing RESPEC’s data and technology business and further defining company-wide service offerings. In a decade of risk and reward, the company grew with relative security. In the Black Hills area, RESPEC was becoming a community leader and was known as “the people who give back.”
“
When we first started, we had no brand, no identification, no clients as a water group. Rewinding, maybe we were crazy. But it was exciting being young and having people believe in you, and it was exciting to grow something from nothing. At that time, the three of us had unique skills focused around water quality. Fortunately, we started winning work, and one day, we got a big contract with the Environment Protection Agency and another with an in situ mine in the area. Those projects allowed us to make some hires and gain traction. We only really had two key clients and ten people in 2007 when my predecessor left and I was named vice president. When Todd Kenner joined the company, he talked to me about the risks of our current model and our need to grow and diversify. We needed to be able to provide services in new geographies to new clients and expand the service offerings. We started venturing into Wyoming and Colorado by penetrating the area using our water quality modeling service and expanded on it by making acquisitions and bulk hires. Through this model, we’ve gone from 10 people in 2007 to over 100 people today.” —Jason Love Senior Vice President, Water & Natural Resources
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2010-2019 the current era respec expands national and global footprint
After 15 years of carefully crafted, people-oriented leadership, Mr. Tom Zeller, PE, stepped down from his position as RESPEC’s CEO. While it was a bittersweet time for the company, it was also one of hope and optimism. Mr. Zeller was confident in the abilities of the new president and CEO, Mr. Todd Kenner, PE, who had helped Mr. Zeller shape the vision of the company for future years. Mr. Zeller said, “I’m very grateful for Todd Kenner. Our strategic 5-year plan seemed far-reaching but we got everything done.” Today, RESPEC’s three main business units—Data & Technology Solutions (DTS), Mining & Energy (M&E), and Water & Natural Resources (WNR)—are thriving in a cross-disciplined approach to client challenges. DTS features a team of leading-edge innovators in technology solutions that transform organizations and make big data management possible.
Our M&E experts, who were the early core of the company, remain as global leaders in geoscience and engineering with comprehensive integrated technology solutions for safety, productivity, and peak efficiency. RESPEC’s world-class water experts in WNR use smart technology and sustainable water management solutions to protect our world’s most valuable resources.
2010s highlights
In recent years, RESPEC has undergone structural change and matured in business development practices. In approximately 2010, leadership made a strategic decision to approach new business by partnering with local companies that were more familiar with the environmental sensitivity of the area, particularly within WNR. This teaming approach led to a significant escalation of new work and expanded RESPEC’s WNR service line into Wyoming, Minnesota, and surrounding areas. A significant relationship with the Minnesota Pollution Control Agency was born, which continues to grow, and has resulted in state-of-the-art, standardized modeling for improving water quality and water management.
Big Sioux River Flood Information System project shows unification of DTS and WNR, creating predictive modeling for more than 8,500 flood scenarios.
Business development begins partnering with local companies to secure new project wins in Wyoming, Minnesota, and surrounding areas.
Overseeing the asset valuation between mining companies Lafarge and Holcim took RESPEC to 11 countries around the globe.
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In 2016, RESPEC underwent a comprehensive rebranding process to unify the entire company under one name and one mission—to become the preferred integrated solutions provider throughout the world.
Above: In 2015, RESPEC performed due diligence for CRH’s purchase of $7.4 billion of assets that were divested as part of the merger of Lafarge and Holcim —two of the world’s largest construction and building materials companies. Bottom Left: RESPEC’s vast knowledge of repository science reinforced our strong leadership in effective public outreach for a Department of Energy Deep Borehole Field Test project. Jay Nopola is pictured speaking at a public outreach event. Bottom Right: As an integrated solutions partner to our clients, our water, data, and mining experts routinely work across the organization to provide transformative solutions.
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Client partners at the Colorado Department of Transportation and the Wyoming Department of Environmental Quality have also kept RESPEC at the forefront of innovation in watershed management and restoration, water conservation, sustainability, and flood mapping and prevention. The Big Sioux River Flood Information System, which is a landmark project that began in 2016, showed the power of RESPEC integration by bringing DTS to WNR problems. The Flood Information System uses a hydrologic and hydraulic model application and a web-based mapping tool to predict river elevations and flood inundation at critical points in the Big Sioux River Basin. This tool is designed to prevent natural disasters,and warn people of potentially catastrophic conditions, to save lives, and prepare emergency response teams to react better. While the WNR business unit was enjoying growth with strategic partnerships and expanding geographical areas, the M&E business unit was further solidifying RESPEC’s reputation as a mining industry
expert around the world. In 2015, when two of the largest global mining companies, Lafarge and Holcim, merged, RESPEC was tasked with the due-diligence process to assess their assets for purchase by CRH, another influential mining industry company and long-time RESPEC partner. This work took RESPEC to England, Ireland, France, Romania, Switzerland, Canada, Brazil, Germany, Slovakia, Serbia, and the Philippines to evaluate operations and raw materials. Because of RESPEC’s long-standing reputation and deeply instilled knowledge of safe, underground material disposal, the US DOE solicited RESPEC in 2016 to begin exploring the possibility of conducting a deep borehole field test near Philip, South Dakota. The resulting proposal included plans to test sealing nuclear waste in a granite-encrusted tomb several miles below the earth’s crust. Although a change in political administration defunded the continuation of the project, RESPEC’s ingenuity and approach to rock-melt experiments again showed its leadership within the industry.
Top Left: RESPEC’s work with Sandia National Laboratories contributes to developing safer underground nuclear waste repositories to ensure our national security. Top Right: A major innovation for mission-critical technology. RESPEC’s Flood Information System helps federal, state, and city decision-makers predict and manage flood activity and offer the best emergency response.
50 years of respeC | 49 Right: RESPEC implemented critical drainage improvements for US 24 Fountain Creek and Waldo Canyon in 2014. We continue to provide many services for Department of Transportations throughout the country.
The DTS business unit has enjoyed continued success in recent years by maintaining valuable client relationships and expanding service offerings. Leadership also changed, which was largely credited to the SSG acquisition in 2017. As a company with long-term clients, stewarded by the DTS team, RESPEC continues one of its longest relationships with Sandia National Laboratories. To address the nation’s projected shortage of underground nuclear waste repositories over the next decade, our most recent work with Sandia National Laboratories’ geomechanics laboratory lays the groundwork for critical test results that will contribute to safer, stronger, and more secure underground salt cavern storage. The Indian Health Services (IHS) is a division of the Department of Health and Human Services and has continued to use RESPEC’s technical expertise for data infrastructure needs, including data standards, data marts, and data warehouse management. IHS currently provides a comprehensive health service delivery system for approximately 2.2 million American Indians and Alaska Natives, who belong to 573 federally recognized tribes.
“
One of the attractivenesses about working at RESPEC is a challenge that we seek in the clients we pursue and the projects we pursue. We do a lot of things that are not just repeatable engineering solutions. We’re at our best when we take on unique and challenging projects that our clients have and deliver a value that they couldn’t have otherwise had. Our ability to seek those challenges from our clients and seek clients who need innovative solutions and a new way of looking at things is a core part of our business and what we do.” —Russell Persyn Vice President
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Vision 2025 building for the future
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What really attracted me to RESPEC, and why it’s been around for 50 years, are three things—it’s made up of really caring, intelligent people; it’s been a well-run company since the beginning; and the collective world-class technical expertise and work the team produces.” —Todd Kenner RESPEC CEO/President
an integrated solutions partner throughout the world
Amid the constant growth and innovation that has become a part of RESPEC’s daily life, there’s an underlying question: Where do we go next? It’s the question behind RESPEC’s Vision 2025—a plan of company goals and expectations. It might come as no surprise that building and maintaining partnerships—with people, the community, and technology—are the primary focus of this vision. Internally, our vision means encouraging employees to inspire each other “from hire to retire.” By 2025, RESPEC will be known as an integrated solutions company comprising progressive, innovative thought leaders. Our team will be recognized as multidimensional, applied-technology consultants with subject-matter expertise in delivering applied solutions. RESPEC’s Vision 2025 reach will include an expanded international presence, as our service areas grow, with plans to develop a fourth
business unit within the infrastructure marketplace that is focused on building communities. With fourth-generation leadership in place, RESPEC University, a continuing education program for employees, will lead employees’ personal growth and career development. In the next 5 years, our flexible employee work environment will focus on results. Over the next few years, RESPEC will continue to work across all business units to increase geographical diversity; feature more areas of specialization; and incorporate more sophisticated IT, data, and technology that will accelerate efficiency and decision-making for our industry and business. Our vision will continue to focus on the interface between subject-matter expertise and technology to provide real-time, decision-support systems. As integrated solution partners, RESPEC will continue to provide clients with solutions that are relevant to a fastchanging environment.
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Partnering in
everything we do.” – People. Community. Technology.
What was true in 1969 will still be true in 2025 and beyond. In the words of RESPEC’s long-time influencer, Dr. Leo Van Sambeek, “Being a consulting company for 50 years requires us to operate as a business, but enjoying our work and solving our challenging problems means developing a vital and trusting relationship between our people and the client’s people. There’s a compelling difference between merely going to a potential client and telling them what you can do for them (the marketing approach), compared to having the client ask you, ‘Can you help me solve this problem?’ (a trusted relationship). Never be afraid to say, ‘I don’t know or don’t understand yet, but tell me more and then we can solve it together.’ This humble approach means you never embellish or flaunt your capabilities and knowledge to the client, but you must always listen until you fully understand their problem and needs. This shows that you can truly be their partner and avoids the embarrassment of ‘solving’ the wrong problem.”
transforming ideas solving complex challenges
We are leaders in providing transformative solutions to solve the most complex problems. We are partners with our clients, communities, and employee-owners. We invest in everything we do – technology, education, and community to provide a career that will take you from ‘hire to retire’ with lifelong friendships and adventures. Partnering is our Legacy.
PEOPLE
Great Place to Work Aligned Culture and Purpose Talent Management
Process
Entrepreneurial Integrated Solutions Providers Innovative Application of Technology
partner performance
Value-Added Partner Recognized for Excellence
Financially Rewarding Sustainable Growth for Opportunity
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conclusion
continuing the path forward RESPEC will continue to lead industry breakthroughs as new elements of technology appear and transform industry capabilities. Just as all breakthrough programs and instruments ascend the technology curve, saturate the market, and start their descent, innovators have already prototyped the replacement and are launching the next must-have tool or solution.
can guide each day with integrity, trust, and caring because we understand the enormous value of people. We believe that our leadership responsibility extends well beyond our doors and into the greater society. For the next generations that have more access to a STEM (science, technology, engineering, and mathematics) education, the sky is the limit, as it was 50 years ago in the early lunar landing days when RESPEC first began.
By living and working in a context of accelerated change and increasing demand for resources, RESPEC’s professionals will continue to address the need for new technology solutions on the unseen horizon. Our highly qualified experts stand ready to solve the world’s most critical challenges in mining and energy, water and the environment, and data and technology. With a strong, multidisciplinary approach, our talented team will broaden RESPEC’s geographic reach, diversify our offerings, and make use of lightning-speed data and technology tools.
While we may try to envision what future business and technology demands look like, we know that the future is a complete mystery that will have to be lived and experienced. The golden thread that ties these 50 years together and leads us into the unknown is the entrepreneurial spirit that has always pervaded the RESPEC culture. Entrepreneurial zeal initiated RESPEC as a company when we first created something from nothing and became global leaders in mining and energy, world-class water and environmental experts, and leading-edge innovators in data and technology.
RESPEC’s longevity and performance indicate that hard work, creativity, trust, and sacrifice were required for us to thrive. Only one-third of businesses survive their tenth year in business, so RESPEC beat the odds! In addition to operational success, RESPEC’s intention includes, in some small way, being a steward of the future. Although we can’t see the far future, we
RESPEC is a very grateful family of diverse thinkers, inventors, scientists, engineers, innovators, marketers, planners, artists, assistants, accountants, and what-if people. Looking to the future, we will strive to help one another as we solve the world’s most difficult problems and create wonderful things not yet dreamed.
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“
The entrepreneurial attitude of RESPEC is why I like working here—It’s not ‘this is the way it’s always been done and this is the way we’re going to do it’. It’s ‘You’ve got something better? Prove it! Let’s go find out!’ And then you can take that to your clients and say that we aren’t out there just doing the same thing as everyone else. We can find you a better solution because we’re pushing those boundaries of where the industry and the state-of-the-art is.” —Jay Nopola Vice President
1969
2019