Texas company, opponents to battle over refinery
By DIRK LAMMERS , 05.17.09, 09:35 AM EDT
A
Texas company looking to build a $10 billion oil refinery in
southeastern South Dakota and opponents who say it will emit too many
pollutants will face off in Pierre this coming week.
At
stake is an air quality permit that Hyperion Refining Vice President
Preston Phillips has called a "critical hurdle" that would allow the
Dallas company to finalize supply and marketing contracts, shore up
agreements with pipeline construction companies, pursue financing and
hire construction companies.
The
state Department of Environment and Natural Resources issued a draft
permit in September, and both sides will get a chance to make their
formal arguments to Board of Minerals and Environment members during a
contested case hearing set to begin Tuesday.
If
constructed, the 3,300-acre tract of farmland north of Elk Point would
become the first new site for an oil refinery since 1976. The Hyperion
Energy Center would process 400,000 barrels of Canadian tar sands crude
oil each day into low-sulfur gasoline and diesel.
Total
demand for gasoline and distillate in South Dakota, Nebraska and Iowa
in 2006 was almost 300,000 barrels per day, Hyperion said, yet there
are no refineries in the tri-state area.
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