Refinery gets permit Group To Take Refinery Permit Battle to EPA as State issues permit
BY JONATHAN ATHENS STAFF WRITER The YUMA SUN April 15, 2005
A much-debated oil refinery in Yuma County on Thursday got an air quality permit that state environmental regulators say is the toughest one ever issued.
A grass-roots citizens group that opposes the proposed refinery vowed to take their fight to the Environmental Protection Agency, asking that agency to take over responsibility for enforcement and compliance.
"If constructed, this will be the cleanest refinery ever built," said Arizona Department of Environmental Quality Director Steve Owen in a news release. ADEQ issued the permit.
The "if" depends on whether Arizona Clean Fuels, the Phoenix-based company that wants to build the refinery, can raise the $2.5 billion it will cost and begin construction within a limited time frame.
The company has raised between $20 million and $30 million from private investors — and spent that money — over the last five years as it went through the permitting process.
Under state law, the permit is good for five years but will expire if Arizona Clean Fuels does not begin construction within 18 months of the permit’s effective date of May 14, ADEQ said.
Glenn McGinnis, Arizona Clean Fuels chief executive officer, said he believes the company can raise the necessary capital and start construction in time. McGinnis said a total of 50 individuals have invested money in the project thus far, though most of the capital has come from three investors.
McGinnis said all are U.S. investors and wish to remain anonymous. McGinnis said the company now will seek additional investors and work to get the additional permits the company needs to move forward with their plans. The refinery itself will cost about $2 billion, and a proposed underground crude oil pipeline from Mexico about $500 million.
McGinnis said the company will ask ADEQ for an extension if it can't meet the 18-month deadline.
The refinery would be the first one built in the United States in nearly 30 years. The 150,000 barrel-a-day facility would be located on vacant desert land 40 miles east of Yuma, near Tacna.
Company officials have estimated construction could start in 2006 and be completed in 2009.
The proposed refinery has divided many in the community, prompting debates on whether the economic benefits are worth the environmental tradeoffs.
Theresa Ulmer, spokeswoman for Yuma County Citizens for Clean Air, said: "We're going to fight this air permit."
ADEQ issued the final permit, which sets emissions limits and compliance standards, after EPA OK'd the state's draft in March.
Ulmer said the citizens group will petition the EPA and ask them to take over the responsibility for enforcement and compliance.
Ulmer said environmental regulators have not adequately addressed concerns raised about pollution or potential health effects.
Owens has said ADEQ has modified the permit to include additional reporting requirements and compliance measures.
An environmental impact statement on the proposed refinery by the Bureau of Land Management is due to be finished later this year.
Well, I don't disagree with the high probability of BK's. As you know, I set up a BUBBLE board for RE which suggests that as a very real consequence. However, I don't think it is necessary in order to have considerably lower demand - thus lower prices in oil. (Again, not gasoline prices or natural gas.)
I just posted an analysis of how I arrive at 2M bbl per day drop in the US on a serious recession. Here is the link.
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