Yeah, it's a story and probably not true (heard many variations).
From my experience, those young airmen and Jr NCOs that got crap duty on northern tier flightlines or missile silos out in the frozen tundra got respect and pretty good treatment. Any officer who doesn't know his first duty is to his men, is not worth spit.
And having served a number of years in JAG (who designs and delivers the lions' share of official punishments), one should always remember that no matter how shitty your job or duty location is, things can
always be made worse for you.
Personally, my favorite story is about the guy who ran off AWOL on foot in the snow from Minot AFB ND. Three days later, he was still visible from the base HQ.

That's also just a story.
Why not Minot? Freezin's the reason. 
What's the state tree of ND? Telephone pole.