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Refinery passes first zoning test

Board votes 4-1 after 5-hour hearing

By Michele Linck Journal stafff writer | Posted: Thursday, January 17, 2008
ELK POINT, S.D. -- A proposed oil refinery in Union County cleared a hurdle late Wednesday night when the Union County Planning and Zoning Commission voted to send Hyperion Resources' zoning application on to the county board of commissioners.

The 4-1 vote came minutes after testimony ended in the five-hour hearing at the Elk Point-Jefferson High School.

The hearing ended at 11:43 p.m., and the board voted without discussion.

Board member Bob James cast the dissenting vote.

After the vote, Richard Benda of the Governor's Office of Economic Development said, "The questions asked here tonight will be answered in detail."

Corky Frank, project executive for Hyperion, said, "I thought it was a good hearing of the situation. I am very pleased the commission made the recommendation to take it to the county commission."

Ed Cable, co-chairman of the Save Union County Committee that has opposed the refinery, said after the vote that, "Obviously we are disappointed in the action taken tonight."

He complained the P&Z commission didn't follow its own guidelines for the meeting, and didn't look at the written comments that had been submitted to the commission. He said he was disappointed the vote was taken without discussion.

Cable said his group will fight the issue when Hyperion applies for air quality permits and at other levels.

"This was skirmish number one in what might be a hundred skirmishes. We're very confident our position will prevail," Cable said.

About 1,000 people filled the gymnasium at Elk Point-Jefferson High School Wednesday night to voice their opinions on Hyperion's request to rezone 3,882 acres for an oil refinery.

Hyperion Resources of Dallas began the meeting with a half-hour presentation on the environmental, economic and labor shed impacts of its proposed 400,000-barrel-per day refinery.

In strictly monitored 3-minute increments, person after person came to the microphone to state opposition or support for the roughly $10 billion project.

Each had a different take, but many themes were repeated.

Opponents cited health concerns, pollution, traffic, unruly construction workers, crowded schools and the loss of fertile farmland among reasons the commissioners should vote against Hyperion's zoning application.

Supporters cited jobs, opportunities for their children and increased tax revenues the project will bring to the area.

One man spoke of taking his acreage out of crop production when he bought it a number of years ago and planting 14,000 trees, an area he enjoys. "I am for the proposed refinery and energy center," he said, citing the jobs it will create. He said his two sons are already asking about the possibility of moving back when the project is completed.

Another man, who said he was born on his family's farm 79 years ago, also supported the project. "Everyone who sold was a willing seller," he said of those who sold purchase options on their land before they knew what the project was. "I believe this is a tremendous opportunity," he said. "I hope this board has the courage and the vision to approve this zoning change.

A Vermillion, S.D., physician expressed concerns about the refinery's emissions. He said 500 tons of voluable organic compounds would be released into the air and would include benzene, which he said is a known cancer-causing agent.

"They've never said anything about an evacuation plan," said another speaker who said he lives close to the site. "What if we have a fire, thick black smoke?" he asked. "An eighth of a mile ... you'd have no time."

"We need so much more research," said a woman who said she spoke as a concerned mother and grandmother.

"Cancer incidents seem to be higher in this region already," she said, adding that when her daughter was diagnosed with leukemia, the doctor asked whether she had been exposed to benzene. "I respectfully ask that you deny Hyperion's application."

Elk Point Mayor Isabel Trobaugh said she had spoken with officials in the towns of Three Rivers, Texas, and El Dorado, Ark., both of which have refineries.

She said those officials said there is virtually no air pollution because the scrubbers and other controls mandated by the government take care of it. She said there is no smell or excessive noise, except when the refirnery is restarted after it has been shut down. Trobaugh said El Dorado, Ark., has monitored air quality 24 hours a day for several years.

On the other hand, Dan Weigel, who said he lives three miles downwind from the proposed refinery site, said Dr. Richard Smith, an environmental ecologist from Minneapolis, told him that people living 25 miles or more away from the refinery can possibly be more affected than those next to refinery because the giant stacks are designed to disperse the pollutants away from the refinery zone.

A retired professor of physics said his family sold options on its land near Spink, S.D., to Hyperion. "The opportunity like this for economic development comes to South Dakota so rarely," he said. "We are proud to be part of it. A refinery this close should guarantee (petroleum) products at a good price," something he said is needed to maintain a "quality community." He also praised Hyperion's "very attractive payroll."

Chris McGowan of the Siouxland Initiative, stressed the job creation impact of the project on the entire region, which he said will include high-paying jobs for both the blue- and white-collar workers.

He said about 2,000 jobs would be created by the refinery, but 5,000 others would be created by peripheral businesses. It will allow our children to remain in, and return to Siouxland and Union County to raise their families."

Sioux Falls attorney Todd Meierhenry, who is working for Hyperion, sought to assure residents that the company would not cut off access to any of the rural cemeteries within the area and, in fact, is willing to maintain them.

Project executive Preston Phillips said, "This will not be a landfill," a response to opposition group Citizen Opposed to Oil Pollution allegations made on Tuesday. He also sought to assure peolpe that no water would be taken from Brule Creek and no wastewater would be dumped into it, among other assurances.

After a break at about 9 p.m. Wednesday, testimony was expected to take another two hours.

Michele Linck can be reached at michelelinck@siouxcityjournal.com or at 712/293-4227



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Story Comments

Positive thinker wrote on Jan 22, 2008 4:25 PM:

" Frustrated: (Part Two) I do know a number of people in the area that live close to the footprint. Some are for the project and some are against. I get along just fine with most of the local people that are against the project, we just agree to dissagree. The problem I have is with the people who are against the project that are just plain mean! They ask you if you are for or against Hyperion and if you are for, they threaten your business. Your either with us or against us as they say, apparently you can't be neutral. I am really getting tired of a few of the folks who call you non-Christen if you are for the project. I'm especially touchy on that comment. I do know there are people for the project that are scared to let there views be known in fear of retaliation, don't attend any meeting and just want to get this to a vote. As far as being activlly involved, I'm about as active as you can get. "

Possitive Thinker wrote on Jan 22, 2008 4:23 PM:

" Frustrated: ( part one) I don't know if you live in the Elk Point area or not but I will tell you what my experience is. First of all I have been to most of the meetings put on by Save Union County and Hyperion. I have also been to both zoning meetings held in the past few weeks. I have also spent time researching the project and its effects on my own. So it's a good thing you didn't bet. lol "

Frustrated... wrote on Jan 22, 2008 3:34 PM:

" Elk Point Resident and who also may be Positive Thinker- You are losing site of what is holding some people back on this project. I dont think anyone who is exchanging words with you is against jobs for the area, oil businesses, or even the Bible. We are talking about a refinery in literally the backyards of some of the residents. You said in an earlier posting "a lot of pro-Hyperion people were not at the meeting". Why not? These could be some of the same people that havent gone to the other discussions and meetings. I would be willing to bet you are probably included in this group. You say you are pro-Hyperion for the jobs, but you have not taken the time to educate yourself about what effects may come from having people you know and love living near/on a refinery. Being an Elk Point resident, you have to know people very close to the zoning area. It is frustrating that people have time to type on message boards about greed and so on, but not to get actively involved in the issue at hand. "

Possitive Thinker wrote on Jan 21, 2008 8:22 PM:

" Remember: I don't understand your thinking, This refinery is not a matter of right vs. wrong, it is a difference of opinion. Just because someone wants good jobs for the community or for a family member does not make them greedy. Do you work? If you do are you greedy for trying to support yourself and your family? Where in the bible does it say man should not drill the soil? If you can quote me chapter and vs. I will listen. You sound like a very angry person. This anger will eat at your sole. I hope you can find some Peace. "

Elk Point Resident wrote on Jan 21, 2008 7:12 PM:

" Well said William!! "

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