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Hyperion will meet with Clay Rural Water board

By Michele Linck | Posted: Wednesday, December 03, 2008
WAKONDA, S.D. -- Hyperion Refining project managers likely will meet with the Clay Rural Water System board in January to discuss providing the roughly 12 million gallons of water per day Hyperion would need to operate the oil refinery-energy center it is proposing near Elk Point, S.D.

Water system manager Greg Merrigan said Tuesday the board has been exchanging e-mails on the project with Hyperion, but now the company would like to make a presentation to the board on its proposed facility and to talk specifically about the water issues in more detail.

Hyperion spokesman Eric Williams said the company's discussions with Clay Rural Water are one example of Hyperion's goal of maximizing the benefits the energy center could bring to the area. "We look forward to furthering the discussion," he said.

No date for the meeting has been set, Merrigan said, but he has let Hyperion know the board's regular monthly meeting next month is set for Jan. 22.

Hyperion Refining, a Dallas, Texas-based company is proposing to build a $10 billion, 400,000-barrel-per-day refinery in Union County.

Merrigan acknowledged the company initially planned to install two shallow wells alongside the Missouri River from which to draw the water it will need. He said he thinks Hyperion is giving the local water system the "courtesy of asking" if it would like to be the supplier instead.

He said if Clay Rural Water were to supply the water, it would likely look at drilling wells closer to the refinery site to minimize the amount of pipe that would be needed to deliver the water to the refinery.

"Everything at this point is conjecture," Merrigan stressed. He said Hyperion's focus right now is on the air quality permit it must receive from the state in order to begin construction.

Clay Rural Water would have to increase its 1.3 million gallon daily production more than 10-fold to meet Hyperion's needs. The water system board voted 6-3 at its Oct. 23 meeting to pursue learning more about the Hyperion project's needs.

The board, which typically meets at its Wakonda office, moved that meeting to Vermillion, S.D.

Merrigan said while the board's meetings are public, the meeting with Hyperion would be strictly informational and would not include a public comment period. He said the board would not take action on the matter at that time.

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Story Comments

Ride that pony wrote on Dec 3, 2008 6:32 PM:

" Dakota Cowboy, seems that you've been
riding Hyperion's pony since they showed up. "

Dakota Woman wrote on Dec 3, 2008 2:37 PM:

" The story says Hyperion spokesman Williams claims the company's discussions with CRW is an example of Hyperion's goal of maximizing the benefits the energy center could bring to the area. CRW would assume the risk of building the plant, which would take water from the aquifier and possibly affect the water level for area residents, including farmers who irrigate their land. So how would this arrangement maximize the benefits for anyone but Hyperion? "

UnCoGal wrote on Dec 3, 2008 1:08 PM:

" Please make Hyperion get all the permitting necessary to receive a drop water. Vote no! Let them fight the Army Corp of Engineers for permits. If CRW even considers furnishing the water for Hyperion, make them pay up front, don't go $30-$40 million in debt. "

the diamondcutter wrote on Dec 3, 2008 11:45 AM:

" one needs to put this into perspective. sioux city just recently voted to expand or build a new water treatment facility to handle about the same amount of water that the hyperion project will require. i don't think clay rural water has $3.5 million for an engineering study and $35-40 million to build a facility that large. hyperion is expecting CRWS to go out and borrow that and build it for them. BIG RISK. what if hyperion never comes about and clay water still goes ahead and builds it. CRWS goes broke thats what. "

DakotaCowboy wrote on Dec 3, 2008 9:52 AM:

" Congratulations! It would appear that at last there are people willing to work WITH Hyperion on this project. "

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