It is difficult to answer these questions in a few sentences, but here is a brief overview of some of the common questions being asked. We encourage you to do some of your own research on refineries, the Alberta Tar Sands (source of crude oil) and alternative sources of renewable energy.
Is Union County the optimal place to build a refinery?
Hyperion has options on close to 11,000 acres of prime, fertile farm ground. Today only 1/10th of the earth’s land surface is cropland. This ongoing shrinkage of cropland makes it difficult for the world’s farmers to feed 70 million people added to the world population every year.
President Bush suggests that refineries be built on abandoned military sites or “brownfield” or existing refinery sites that are already polluted. Does it make sense to destroy 1,000’s of acres of rich cropland to build a polluting refinery? It is estimated that there are more than 450,000 brownfield sites in the United States.
http://www.epa.gov/region4/landrevitalization/program/BrownfieldSites.htm
http://www.saveunioncounty.com/test/refinerypowerpoint_files/frame.htm
Is that true that no new refineries have been built in 30 years?
Obtaining financing and permitting for a new refinery is difficult. That is why existing refineries are and have been expanding. Economically it is more feasible to add-on than to build from scratch. To expand an existing refinery costs around $16,000 (per barrel a day capacity). A new refinery would cost around $25,000 per barrel. So a 400,000 barrel a day refining capacity would cost an extra $3.6 billion to build from ground up rather than as an expansion.
On January 16, 2008, the President and CEO of the American Petroleum Institute, Red Cavaney, said, "Our industry is making record investments in U.S. Refineries, expanding their capacity and investing nearly $50 billion from 1996-2005 . . . Current expansion plans will boost domestic refining capacity by one million barrels per day between now and 2012, THE EQUIVALENT OF FIVE NEW REFINERIES." (Fourth Annual United Energy Association).
Expansions have or are taking place at refineries in:
Garysville, IN
Robinson, IL
Superior, WI
Rosemount, MN
Detroit, MI
Port Arthur, TX
Big West, CA
Central Valley, CA
Tuscaloosa, AL
Will local gas prices be lower if this refinery is built?
The proposed refinery will not be up and running until 2014 (Hyperion’s time line) and realistically much later than that considering the enormous task of obtaining the financing, permits and pipeline needed to bring in the crude oil. Currently towns that have refineries located in them do not see a price break in the cost of their gas. Governor Rounds himself has confirmed that a local refinery will not reduce our fuel prices locally.
What successful projects has Hyperion completed in the past?
None that we know of. Hyperion Resources CFO and VP Viro Vranac Jr., recently filed a lawsuit against Hyperion's CEO Albert Huddleston and his wife Mary for misusing funds from a trust for "misguided projects in Iraq and South Dakota."
http://www.msnbc.msn.com/id/24496767/
http://www.argusleader.com/apps/pbcs.dll/article?AID=2008805150318
What other industries will locate near the refinery?
It’s common to have one or more chemical plants next to a refinery because they will use some of the intermediate products of the refinery. Sour crude has a high sulfur content so there could be sulfur plants next to the refinery with up to 100 train cars a day filled with sulfur leaving the refinery. The most likely route for a railroad is straight south of the proposed refinery site ( passing a mile east of St. Paul Lutheran church) into Elk Point where it would connect to existing rail lines. The existing railroad parallels 1-29 into Sioux City passing through the towns of Jefferson and North Sioux City. What would be the repercussions of a train accident hauling sulfur? Will we be able to smell the sulfur (rotten egg smell) as it is being transported daily?
Are Hyperion’s claims that they will be the ‘greenest” refinery every built truthful?
Hyperion says it will use the best available control technology (BACT) However, there are several levels of BACT. One of them being LAER (Lowest Achievable Emission Rate) which is truly the most stringent. Hyperion will not use LAER technology nor have they applied for a LAER permit through the DENR of South Dakota. Instead Hyperion is applying for a PSD air permit (Prevention of Significant Deterioration) which is not as stringent as LAER. Since South Dakota has clear air (making it an “attainment state”) the EPA requires only PSD not LAER. Hyperion would save money using PSD and in return emit more air pollution than if they were required to use LAER. Recently SB196, a bill that would have made South Dakota's environmental standards as high as Californias was shot down in Pierre. Hyperion lobbied against this bill. For more specifics, click on this link.
http://yankton.net/stories/031008/ope_255412772.shtml
Please click on this interesting fact sheet: http://thunewatch.squarespace.com/sdwatch/2008/1/3/sdpjc-what-you-should-know-about-hyperion-and-oil-refineries.html
How feasible is the proposed oil refinery?
Hyperion has provided no proof of their financial backing, but instead Hyperion recently visited Senators Tim Johnson and John Thune in Washington seeking federal funding for the proposed refinery. Hyperion Resources wants a $10 billion federal loan guarantee to build its proposed Energy Center in Union County. Senator Johnson has confirmed that Hyperion officials "asked me a couple of weeks ago to create a new loan program for $10 billion of loan guarantees for construction of a refinery. I expressed doubt it could happen." Oil industry analyst Philip Verleger Jr., head of PKVerleger, a Denver gas and oil industry consulting firm says the loan request shows how speculative the project is. "If it were commercially viable, they wouldn't need a loan guarantee," said Verleger.
http://www.argusleader.com/apps/pbcs.dll/article?AID=/20080424/NEWS/804240311/1001/RSS
Multibillion-dollar oil sands projects will face new legal and regulatory hurdles after the Federal Court ruled against Imperial Oil Ltd. in its battle to keep the $8-billion Kearl oil sands mine on schedule.
http://www.theglobeandmail.com/servlet/story/LAC.20080515.RKEARL15/TPStory/Business
What specifically are we voting on?
We are voting on the commissioner’s decision to re-zone 3,000 acres of prime agricultural ground to industrial or planned development. The language in which Hyperion has requested the area be re-zoned is very vague and open. Because they are asking for “manufacturing of any type” the property could be sold to a third party and made into a host of other things other than a refinery. Included in their re-zoning request is ‘any industrial use without limitations.” as well as no expiration date on the length of time Hyperion has to complete their project. A vote “No” would repeal the commissioner’s decision to re-zone the area. A vote “Yes” will allow the above changes to remain in place.
Will the oil refinery really create 1,800 high paying jobs?
Hyperion representatives have acknowledged that the $20-30 an hour wage is a “average” meaning there will be jobs paying more and jobs paying less. According to Hyperion’s own Air Permit Application, Table 3-1, Appendix G, Hyperion itself projects that 70% of all jobs and 87% of the high paying jobs will go to people from outside the Tri-State area.
A Marathon oil refinery in Garysville, Indiana is currently expanding to 425,000 barrels a day (25,000 more than Hyperion’s proposal) and will employ 1,200. However, an optimally designed refinery should realistically be able to operate on closer to 500 employees.
What is this recreation area that Hyperion is talking about developing along the Missouri River?
This is actually an area where waste water from the refinery will be discharged. Hyperion has said they will turn this into a “wetland” area with water fowl habitat and a wildlife area that will be publicly accessible. Despite these nice sounding ideas, this will not be a "pristine and clean" area you will want to bring your family to recreate at.
How will my area of the county be affected by the refinery?
*severe burden on schools, health care and community services
*influx of transient workers with no ties to our local communities
*large increase in truck and train traffic through the entire county
*risk of toxic spills, explosions, fires and accidents
*thousands of toxins emitted into the air negatively affecting one’s health
*pipelines going through or nearby your home that carry the heavy crude oil, refined products, natural gas, fresh water and “decontaminated” water back to the Missouri
*the possible use of eminent domain to condemn land for pipelines, railroads, etc. (see link below for ruling made this week to allow eminent domain for transcanada pipeline) Transcanada has said there is no connection between their pipeline and Hyperion.
http://www.siouxcityjournal.com/articles/2008/05/15/news/latest_news/4216e0d1f23aaaf28625744a00437d47.txt
Will the next elected President of the United States affect the feasibility of this project?
It's highly likely that the proposed oil refinery will have a difficult time attracting financing as well as backing considering the strong environmental platforms all three candidates (McCain, Obama and Clinton) are running on. All have pledged to "significantly reduce C02 levels" as well as promote and invest in "clean and renewable sources of energy." Hyperion's plans go against everything that these candidates are spearheading.
I live in Beresford or the Dakota Dunes-will the refinery emissions effect me?
The refinery's method for dealing with pollution is dillution. That's why they have so many towers at different heights. The air pollution gets dispersed at different atmospheric levels . . . for example, the shorter towers will drop the pollution on nearby areas, but the taller towers will help the wind carry it long distances. We all know how strong the wind can blow so imagine that being spread out over your home and neighborhood.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment