Kansas still trying to land Hyperion refinery
Posted: Tuesday, April 29, 2008
TOPEKA, Kan. (AP) -- Kansas officials haven't given up on landing the Hyperion Energy Center, but top legislators believe success depends on clearing the way for two coal-fired power plants in the southwest part of the state.
A Union County, S.D., site just north of Elk Point seems to be the leading contender for the proposed $10 billion oil refinery and power plant. Union County voters will decide June 3 whether to uphold or reject the county commission's decision last month to rezone 3,292 acres of farmland Hyperion has optioned. The Dallas, Texas, energy firm insists it would look elsewhere if a majority of voters don't want the project.
In Kansas Inc., Hyperion is pursuing its refinery separately from efforts by Sunflower Electric Power Corp. to build the two coal-fired plants outside Holcomb in Finney County. But both need air-quality permits from the Kansas Department of Health and Environment.
That pulled Hyperion into the debate after department Secretary Rod Bremby denied a permit for Sunflower in October. Legislators passed two bills to overturn the decision and limit the secretary's power, but Gov. Kathleen Sebelius has vetoed both.
Internal state government e-mails, obtained by Sunflower supporters and shared with The Associated Press, show the decision to block Sunflower's project concerned Hyperion. One Department of Commerce official believed it created "considerable uncertainty."
Overriding a Sebelius veto of Sunflower legislation will be a key issue for lawmakers after they return Wednesday from their annual spring break. Both House Speaker Melvin Neufeld and Senate President Steve Morris believe Hyperion officials are watching.
"If we're successful, then they'll probably take a close, hard look at Kansas," said Morris, a Hugoton Republican.
Bruce Nilles, director of the Sierra Club's national anti-coal campaign, called such a statement "a scare tactic" designed to sway legislators. He said Kansas will be stronger economically if it develops wind and other renewable resources.
Hyperion describes its refinery as the most advanced in the United States, a "shining example" of how such operations can be clean.
So far, company officials have stayed out of the Kansas debate, and spokesman Eric Williams said the company is evaluating multiple sites in the Midwest.
Bremby denied Sunflower's permit over the potential carbon dioxide emissions. Many scientists link man-made greenhouse gas emissions to global warming, but Kansas never has had standards on CO2.
Three days later, a Hyperion executive, Preston Phillips, e-mailed Bill Graper, a development consultant for the Department of Commerce.
"We need to discuss," Phillips wrote, "as this is of major concern."
A coalition supporting Sunflower's project obtained the internal e-mails through an open records request. A partner in that coalition, the Kansas Chamber, shared them with AP.
According to those e-mails, Kansas officials were excited about the potential for 1,500 or more new jobs and suggested as early as February 2007 that the state could provide incentives. Two months later, state officials, including Lt. Gov. Mark Parkinson, met with Hyperion officials in Dallas.
In June 2007 Hyperion announced the Union County site. But according to e-mails Kansas officials received, Hyperion still was pursuing land in Pottawatomie County, Kansas, in October.
In his Oct. 21 e-mail to Graper, Phillips acknowledged CO2 was a "rising issue" nationwide but said no one had any rules in place to cover its capture, storage and use.
"Hyperion has to understand where the state of Kansas is on this issue," he wrote.
Journal business editor Dave Dreeszen contributed to this story.
A Union County, S.D., site just north of Elk Point seems to be the leading contender for the proposed $10 billion oil refinery and power plant. Union County voters will decide June 3 whether to uphold or reject the county commission's decision last month to rezone 3,292 acres of farmland Hyperion has optioned. The Dallas, Texas, energy firm insists it would look elsewhere if a majority of voters don't want the project.
In Kansas Inc., Hyperion is pursuing its refinery separately from efforts by Sunflower Electric Power Corp. to build the two coal-fired plants outside Holcomb in Finney County. But both need air-quality permits from the Kansas Department of Health and Environment.
That pulled Hyperion into the debate after department Secretary Rod Bremby denied a permit for Sunflower in October. Legislators passed two bills to overturn the decision and limit the secretary's power, but Gov. Kathleen Sebelius has vetoed both.
Internal state government e-mails, obtained by Sunflower supporters and shared with The Associated Press, show the decision to block Sunflower's project concerned Hyperion. One Department of Commerce official believed it created "considerable uncertainty."
Overriding a Sebelius veto of Sunflower legislation will be a key issue for lawmakers after they return Wednesday from their annual spring break. Both House Speaker Melvin Neufeld and Senate President Steve Morris believe Hyperion officials are watching.
"If we're successful, then they'll probably take a close, hard look at Kansas," said Morris, a Hugoton Republican.
Bruce Nilles, director of the Sierra Club's national anti-coal campaign, called such a statement "a scare tactic" designed to sway legislators. He said Kansas will be stronger economically if it develops wind and other renewable resources.
Hyperion describes its refinery as the most advanced in the United States, a "shining example" of how such operations can be clean.
So far, company officials have stayed out of the Kansas debate, and spokesman Eric Williams said the company is evaluating multiple sites in the Midwest.
Bremby denied Sunflower's permit over the potential carbon dioxide emissions. Many scientists link man-made greenhouse gas emissions to global warming, but Kansas never has had standards on CO2.
Three days later, a Hyperion executive, Preston Phillips, e-mailed Bill Graper, a development consultant for the Department of Commerce.
"We need to discuss," Phillips wrote, "as this is of major concern."
A coalition supporting Sunflower's project obtained the internal e-mails through an open records request. A partner in that coalition, the Kansas Chamber, shared them with AP.
According to those e-mails, Kansas officials were excited about the potential for 1,500 or more new jobs and suggested as early as February 2007 that the state could provide incentives. Two months later, state officials, including Lt. Gov. Mark Parkinson, met with Hyperion officials in Dallas.
In June 2007 Hyperion announced the Union County site. But according to e-mails Kansas officials received, Hyperion still was pursuing land in Pottawatomie County, Kansas, in October.
In his Oct. 21 e-mail to Graper, Phillips acknowledged CO2 was a "rising issue" nationwide but said no one had any rules in place to cover its capture, storage and use.
"Hyperion has to understand where the state of Kansas is on this issue," he wrote.
Journal business editor Dave Dreeszen contributed to this story.
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SD HOMETOWN GIRL wrote on Apr 30, 2008 1:18 PM:
Steve wrote on Apr 29, 2008 8:29 AM: