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Union County braces for battle over Hyperion

By Dave Dreeszen and Michele Linck, Journal staff writers | Posted: Sunday, March 30, 2008
ELK POINT, S.D. -- In 65 days, Union County voters get a chance to roll out the welcome mat for the Hyperion Energy Center or show it the door.

Until then, expect a bruising, high-stakes political fight over the Dallas, Texas-based energy firm's proposed oil refinery and power plant, which would be the first built in the U.S. since 1976. Supporters and opponents are recruiting campaign volunteers and raising funds to get their story out before the June 3 referendum.

That's when voters will be asked whether they favor rezoning 3,292 acres of farmland to permit the refinery, which would be built northeast of Elk Point, just east of Interstate 29 between state Highways 48 and 50. The county Board of Commissioners voted 5-0 March 11 to approve the rezoning at Hyperion's request.

Many in the county are already weary from more than a year of speculation and debate over the project.

"It has polarized people much more than I thought it would," said Jamie Hawkins, a forklift operator from Elk Point. "I don't know if that's because we're a rural community and people have long-term roots here or a mistrust of big business. People seem to already have their minds made up."

Nevertheless, they're in for a barrage of campaigning.

"I wouldn't be surprised at all if there are significant resources invested from both sides,'' said Bill Anderson, director of the Government Research Bureau and an assistant professor of political science at the University of South Dakota in Vermillion, in neighboring Clay County. "Obviously, we know Hyperion brings cash to the table. They have a pretty good ground team out there right now -- hired employees whose job is to muster support."

Battle lines drawn

Hyperion spokesman Eric Williams declined to comment on what, if any, campaign expenditures the company was preparing to make.

"Between now and June, we will continue the educational effort we've conducted from the day we announced Union County is one of the sites under consideration,'' Williams wrote in an e-mail Friday.

Three grassroots groups -- Citizens for Hyperion, which backs the refinery, and Save Union County and Citizens Opposed to Oil Production, which oppose it -- have said they intend to form political action committees. That would allow the groups to legally raise and spend money for such things as campaign literature, yard signs, advertising and get-out-the-vote efforts.

Jason Quam, who heads Citizens Opposed to Oil Production, said opponents are not intimidated by a large corporation with deep pockets.

"They (Hyperion) can clearly outspend us if they want. Whether that'd be effective in Union County, I don't know," said Quam, an Elk Point businessman who lives on an acreage near the refinery site.

Ed Cable, a spokesman for Save Union County, declined to detail the group's campaign strategy. But one thing is clear, he said: The group has lined up more than enough volunteers to get its word out.

"Our only problem is finding adequate parking space when they come to work,'' Cable said.

Anderson said there have been rumblings that state or national environmental groups could enter the fray on behalf of the local opponents.

"That could maybe make for a more level playing field,'' he said.

J.B. Mercer, chairman of Citizens for Hyperion, said he plans to file paperwork this week setting up a PAC in support of the project. The grass-roots group of tri-state residents and businesses, he said, has 20 to 30 regular volunteers, and an e-mail list with at least 250 names.

"We have tons of people who support this,'' Mercer said Saturday.

The group turned in more than 1,000 petition signatures to trigger the referendum on the zoning change. The commission voted 4-1 March 25 to put the question on the June 3 primary ballot.

Besides picking party nominees for federal, state and local offices, the 9,534 registered voters in Union County now have yet another reason to cast a ballot.

Voter turnout likely to spike

Thirteen percent of registered voters in Union County, or 1,290 people, voted in a special election last May. Clearly, the June 3 turnout is expected to be much higher, perhaps setting an all-time record.

"Both sides have stated they are determined to get the people out to vote,'' said Doyle Karpan, commission chairman. "I would be glad to see a large turnout for such an important vote.''

Though county residents have come out publicly against the refinery in greater numbers than those supporting it, Anderson said that's not necessarily an indicator of what will happen at the ballot box.

"I think the vocal opposition has little to lose by being aggressive,'' he said. "The folks who are in favor of the refinery do, perhaps, have something to lose, in terms of perception of neighborliness.

"The voting booth gives Union County residents the anonymity to go in and have their say without being held accountable for what they say or think.''

County Auditor Carol Klumper said her office has seen a slight increase in voter registration numbers in recent weeks. Some of that could be attributed to the tight Democratic presidential contest between Sens. Hillary Clinton and Barack Obama. South Dakota and Puerto Rico have the last two primary contests of the nominating season.

Pressure on officials, residents immense

Opponents argue the 400,000-barrel-per-day refinery would forever harm their tranquil, rural way of life, fouling the air, water and soil and creating traffic congestion.

Supporters cite the once-in-a-lifetime economic benefits of the "green'' energy center, which Hyperions says would create at least 1,800 permanent skilled jobs at good wages. As many as 10,000 construction workers also would swell the area population.

That has Union County Register of Deeds Jana Foltz worried.

"I'm very stressed. My heart hurts, my stomach hurts. I worry every day," Foltz said. "Am I going to be able to keep up with all the new (property registrations) coming in? ... Where are we going to put more people?"

At the same time, Foltz questions Hyperion's numbers. "Maybe it's not going to be 1,800 jobs; maybe it's going to be 400."

And she wonders why the company has bought option on thousands more acres than the 3,292 it's seeking to have rezoned for the project. People want complete information before they vote, she said.

Trisha Rasmussen, a retail manager, said many in the community are reluctant to talk about Hyperion.

"I talk about it with friends," she said. "We talk about it in general, but nobody says which way they're going. The more time goes on, I think there will be a lot more opposed. A lot of people wish there were a lot more information out there. There are quite a few undecided."

Stella Weaver, who lives east of Elk Point, doesn't see why people should be all worked up over Hyperion.

"I'm neutral," she said. "It hasn't bothered me, and I haven't paid attention to it. You know what burns me up? On TV, a guy from Sioux City was talking about Hyperion. What's he got to do with people in Union County?"

Hawkins worries that frustration and the 60-plus days of debate ahead will have a damaging effect on his friends and neighbors.

"I've noticed that a lot of people have taken sides with this issue strongly. I think it's going to affect a lot of personal relationships in this community," he said. "I have my opinion and I kind of keep that close to my vest."



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Story Comments

Union Co wrote on Apr 5, 2008 11:42 PM:

" jpc: I agree. It is a waste of money to sue. And yes, Hyperion does have a high paid PR firm im sure. Unfortunately, unbiased research is hard to come by. And also unfortunately, no one has built a refinery in 30 years so its hard to compare it to anything. Who knows what it will be like if there is nothing else like it. But you have to start somewhere. Maybe after this plant is built it will be the staple for all future refineries. Who knows? I'm sure only Hyperion does. "

jpc wrote on Apr 5, 2008 9:51 AM:

" Union Co.- I don't necessarily agree with the tactics of Save Union County. Then again they don't have a polished PR company to help them make their case. I wouldn't be so quick to accept promises by Hyperion either. They are promising to build a green refinery, yet they withdrew a site in Kansas because the state was considering measures to ensure accountability on the part of Hyperion. At the same time Save Union Co. is wasting money and resources by suing the board of commissioners. My advice to you is to do a little of your own research and not take either side at their word. It's unfortunate we've come to a point where big corporations need more stringent government regulation and at the same time meritless lawsuits clog our judicial system. I hope you can make a well informed decision. "

Union Co. wrote on Apr 3, 2008 1:25 PM:

" I'm still fairly undecided on how I will vote but am leaning toward a yes. To Itee: you tell us to go back to school and get a job that does exist around here? When I was in college they didn't have the course "Food Serving 101" or "Call Center Operator 211". What courses do you suggest I take in order to succeed in this area? Only thing that keeps driving me toward the yes vote is having to listen to people push their views onto me, and we all know what side does that. I think Hyperion has been wise into being quiet about the project and not firing back at meritless accusations. They dont even have to put this to a vote, but they are, and i commend them for that. Oh and I live downwind, or upwind, or whatever way the wind is blowing that day. "

Gorilla Neighbor wrote on Apr 1, 2008 1:09 PM:

" When the rumors started flying that "Gorilla" was an oil refinery, most stated "can't be...that doesn't make any sense" with hopes for something better. They're right...it doesn't make any sense that they would build such a facility in this part of the country. Hyperion - please refurbish the oil refinery's all ready in production & make them cleaner instead. Quit promising people the hopes for a $20/hour job knowing that those that aren't already making that now will not be able to make that with you either. "

gorillaneighbor wrote on Apr 1, 2008 1:03 PM:

" When the rumors started flying that "Gorilla" was an oil refinery, most stated "can't be...that doesn't make any sense" with hopes for something better. They're right...it doesn't make any sense that they would build such a facility in this part of the country. Hyperion - please refurbish the oil refinery's all ready in production & make them cleaner instead. Quit promising people the hopes for a $20/hour job knowing that those that aren't already making that now will not be able to make that with you either. "

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