Following his Centennial Cup-winning season with Notre Dame, Herter moved to the University of North Dakota to play college hockey with the North Dakota Fighting Sioux of the Western Collegiate Hockey Association (WCHA). Midway through his freshman season, Herter was ranked as the top player available at the 1989 NHL Entry Draft by the NHL Central Scouting Bureau. Herter finished his freshman season with eight goals and 24 assists in 41 games. His 24 assists and 32 points set single-season freshmen assist and point records at North Dakota, although his point record has since been broken. Following the season, Herter entered the 1989 NHL Entry Draft ranked second overall among North American skaters, dropping one position in the NHL Central Scouting Bureau's final draft ranking. On June 17, 1989, he was drafted 8th overall by the Vancouver Canucks.