Hyperion seeks rail service for refinery
By Meagan Sextonmsexton@siouxcityjournal.com | Posted: Thursday, November 27, 2008
SIOUX FALLS, S.D. -- Hyperion Refining is looking for a way to bring a railroad to its proposed oil refinery and energy center in Union County.
The Texas company has contacted D&I Railroad in Sioux Falls for possible service to the $10 billion facility it wants to build near Elk Point, S.D.
"We'll need to have access to the rail line from the site for the construction phase, when we will be bringing in materials, large vessels and other equipment which will be needed to build the Hyperion Energy Center," Eric Williams, spokesman for Hyperion, said last week. "We will continue to use the rail line when the energy center is operating, primarily to export our products and to receive materials."
Jack Parliament, president of D&I, said earlier this month that his company has talked to Hyperion regarding its rail line, which runs from Dell Rapids, S.D., to Sioux City.
But Parliament would not discuss specific details and declined to confirm whether his company is in negotiations with Hyperion, which wants to refine 400,000 barrels of Alberta tar-sands crude a day.
Parliament has since not responded to multiple requests for information and comments.
Williams said the company has talked with D&I and will continue to have an exchange with it and other railroads as Hyperion develops its options for the Hyperion Energy Center, but he would not comment on where the route would be.
"We do not comment on specific, ongoing efforts," Williams said.
D&I Railroad is the operating railroad of the Sioux Valley Regional Authority, which runs near the proposed refinery site.
Bruce Lindholm, program manager for the South Dakota Office of Railroads, said the Sioux Valley Regional Authority is made up of members from Union County, Turner County, Alcester, Beresford, Centerville, Hurley, Marion, Parker, Fairview and Hudson, all in South Dakota.
Lindholm said state law allows railroad authorities to get state loans, if money is available, for such costs as construction and maintenance
"They can come to the railroad board and apply for a loan, and (the application) would say what they're using it for," he said. "We pay bills, we don't just write them a check. They have to incur costs and need documentation."
Lindholm said his office hasn't received an inquiry or application for a loan from the Sioux Valley Railroad Authority.
The Texas company has contacted D&I Railroad in Sioux Falls for possible service to the $10 billion facility it wants to build near Elk Point, S.D.
"We'll need to have access to the rail line from the site for the construction phase, when we will be bringing in materials, large vessels and other equipment which will be needed to build the Hyperion Energy Center," Eric Williams, spokesman for Hyperion, said last week. "We will continue to use the rail line when the energy center is operating, primarily to export our products and to receive materials."
Jack Parliament, president of D&I, said earlier this month that his company has talked to Hyperion regarding its rail line, which runs from Dell Rapids, S.D., to Sioux City.
But Parliament would not discuss specific details and declined to confirm whether his company is in negotiations with Hyperion, which wants to refine 400,000 barrels of Alberta tar-sands crude a day.
Parliament has since not responded to multiple requests for information and comments.
Williams said the company has talked with D&I and will continue to have an exchange with it and other railroads as Hyperion develops its options for the Hyperion Energy Center, but he would not comment on where the route would be.
"We do not comment on specific, ongoing efforts," Williams said.
D&I Railroad is the operating railroad of the Sioux Valley Regional Authority, which runs near the proposed refinery site.
Bruce Lindholm, program manager for the South Dakota Office of Railroads, said the Sioux Valley Regional Authority is made up of members from Union County, Turner County, Alcester, Beresford, Centerville, Hurley, Marion, Parker, Fairview and Hudson, all in South Dakota.
Lindholm said state law allows railroad authorities to get state loans, if money is available, for such costs as construction and maintenance
"They can come to the railroad board and apply for a loan, and (the application) would say what they're using it for," he said. "We pay bills, we don't just write them a check. They have to incur costs and need documentation."
Lindholm said his office hasn't received an inquiry or application for a loan from the Sioux Valley Railroad Authority.
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UnCoGal wrote on Dec 3, 2008 1:28 PM:
jam wrote on Nov 28, 2008 3:22 PM:
Union Co. wrote on Nov 27, 2008 8:35 AM:
AnnieO wrote on Nov 27, 2008 8:07 AM: