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Governors will hear Hyperion briefing

Tri-state leaders will meet in South Sioux City

By Dave Dreeszen, Journal business editor | Posted: Monday, August 20, 2007
An $8 billion to $10 billion oil refinery that might be built in Union County, S.D., will be up for discussion at this week's Tri-State Governor's Conference.

An $8 billion to $10 billion oil refinery that might be built in Union County, S.D., will be up for discussion at this week's Tri-State Governor's Conference.

J.L. "Corky" Frank, project manager for the Hyperion Energy Center, is scheduled to make a public presentation to South Dakota Gov. Mike Rounds, Iowa Gov. Chet Culver and Nebraska Gov. Dave Heineman. The three neighboring governors are scheduled to gather Tuesday in South Sioux City for a biennial joint meeting.

Hyperion announced in June that a rural site just north of Elk Point is a leading candidate for its "green energy" center, which would be the first new U.S. refinery built in 30 years. The Texas-based energy firm, which is also considering at least two sites in other states, has secured options on as many as 10,000 acres in Union County.

The Siouxland Chamber of Commerce, coordinator of the tri-state governor's conference, invited Frank to speak at the event and to write a position paper. The Siouxland Initiative, the chamber's economic development arm, is "extremely supportive" of Hyperion's project, Initiative president Debi Durham said.

"We obviously see the economic value in the project," Durham said. "We have confidence in the principals behind the project. We have confidence they can build and operate a green refinery."

The position paper presented to the governors mentions that internal polling conducted by Hyperion has shown "overwhelming public support" for the project, not only in the immediate vicinity of the Union County site but also throughout the entire tri-state region. Eric Williams, a spokesman for the Hyperion Energy Center project, said last Friday he could not immediately provide additional details of the polling.

Rounds, who helped recruit Hyperion to South Dakota, has described the refinery as a "major technological breakthrough." Heineman also has voiced support for the initiative, which would require as many as 10,000 construction workers to build and would create 1,800 permanent jobs, according to Hyperion. Culver has not publicly commented on the project, which has drawn opposition from some local landowners and environmental groups.

Highway construction, technology transfer and law enforcement issues also are on the agenda.

The conference, held every other year, started in 1988 as a way to help foster cooperation among the three neighboring states on economic issues facing the metro area.

At this week's conference, the governors will also be asked to:

-- Support increased federal funding for three major transportation projects -- the redesign of Interstate 29 through Sioux City and the widening to four lanes of U.S. Highway 20 in western Iowa and Highway 35 in northeast Nebraska.

In a related request, local leaders will ask the governors, by executive order, to dedicate a new source of increased sales tax revenue to such major transportation corridors as Highways 20 and 35. At issue is revenue the states would collect from what's known as the "streamlined sales and use tax agreement." The nationwide initiative is intended to equalize sales tax collection among the 50 states.

-- Help restore federal funding for Sioux City's National Training Center. The center, which has focused on training officers nationwide to combat methamphetamine trafficking, was forced to close this summer after its funding ran out.

-- Encourage the transfer of research developed at the state universities to the metro area to help foster business and job growth. Joseph Wright, the Siouxland Initiative's new vice president of technology transfer, is scheduled to address the governors Tuesday.

Journal business editor Dave Dreeszen can be reached at (712) 293-4211 or davedreeszen@siouxcityjournal.com

If you go
What: The 11th Tri-state Governor's Conference
When: 1 to 2:30 p.m. Tuesday
Where: Marina Inn in South Sioux City.
Who: Open to the public.
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Story Comments

Refining Union County wrote on Aug 27, 2007 5:33 PM:

" Joe, Taxes will go down due to the assessed value of the Hyperion project. It will easily triple the tax base of the county even if they are granted some tax incentives. As far as using their by by-products, you need to understand IGCC technology. Do some research as there is insufficient room on this site to explain it. Finally, of the 200 estimated attendees, many were undecided or in favor of the project. Regardless, there are more than 13,000 residents in this county,and most support ecomomic development, including Hyperion. As I said before, a cooperative approach to assure your concerns are addressed is far more productive than trying to block this great project. It's too bad that SUC does not see the error in their strategy. "

Joe wrote on Aug 27, 2007 6:48 AM:

" Sure they will capture their own byproducts, then what magically make them dissappear. Maybe ship them to the great lakes. If only 50 people didn't want this or at least some answeres would Hyperion need to hire PR firm? 200 showed up for a zoning meeting, was 150 pro refinery without reservations? That would be funny if this wasn't so serious. Refinery supporters without reservations are you willing to vote in a personal income tax to pay for the project? If not you admire the project not support it. "

Refining Union County wrote on Aug 26, 2007 11:40 AM:

" I look forward to welcoming Hyperion as my neighbor. This is great business plan. The company will capture its own byproducts to generate power. NIMBYS don't stand a chance. South Dakota is centrally located and the best place in the country to efficiently refine the Canadian product. The 50 or so residents that don't want this project don't stand a chance. National economic interest will take precedent. NIMBY's your interests would be better served working with Hyperion to assure strict complaince with environmental standards rather than opposing the project. You could play a valuable role in this project if you would just channel your efforts in the right direction. "

reno wrote on Aug 25, 2007 9:43 AM:

" Greed before nature.. Anyone coming to my neighborhood promising me they could build a "green refinery" would be laughed out of town in a hurry.. Its not about jobs here folks but rather corporate domination over the average joe!! "

Joe wrote on Aug 24, 2007 5:49 PM:

" Licker, why would we want to bring the pollution being dumped in the gulf or like British Petro into Lake Michigan here? Boy did the regulatory agencies do a nice job stopping the dumping before the fact in LM. (reference WGN news last night) Is this area nicer than you can stand and you feel a need to destroy? We would still depend on foreign oil as South Dakota has no oil fields and our only large body of water is the aquafer. At least if the refinery is located in the oil fields the "stuff" can be pumped back in to the displaced oil rather than disolved into drinking water. Which law states that matter is neither created or destoyed only changed from one form to another? While not precisely true on an atomic level, true enough for a refinery. "

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