Refinery moves step closer to reality

A proposed oil refinery near Tacna is one step closer to completion after the Yuma County Planning and Zoning Commission unanimously approved a request by Arizona Clean Fuels on Monday to change the land designation of 1,363 acres upon which the refinery would be built.

The change, from agricultural rural preservation to heavy industrial, allows ACF to moved forward with proceedings, including getting building and other permits to begin construction.

David Treanor, Arizona Clean Fuels executive vice president, said the refinery would provide 650-700 jobs once completed and would employ 3,000 during its 3.5-year building process. The construction process, he said, would pay more than $1 billion in wages while making the refinery “absolutely the cleanest in the United States.”

Arizona Clean Fuels has stressed the new technology to be used in the refinery will allow it to emit far fewer pollutants than older refineries. There has not been a new refinery built in the United States since 1976 because of environmental regulations and costs.

Treanor said simply getting the air quality permit – which must be reissued due to the refinery site moving two miles east after the Quechan tribe expressed concerns about disturbing cultural artifacts – has taken 6.5 years and $25 million.

The tribe, which said it still wishes to be consulted on the new location, did not have a representative speak at the Planning and Zoning meeting, held at 2352 W. 26th St.

The proposed $3 billion refinery, located south of Interstate 8 on County 6th Street between Avenues 48 and 50 East, would have an expected capacity of 150,000 barrels of gasoline, diesel, low-sulfur diesel and jet fuel. Plans call for construction to begin in 2009 and the refinery to be up and running by 2012.

The oil for Yuma County's refinery would be shipped from Canada via cargo holds down the Pacific Ocean to a port off the Baja Peninsula before being piped through Mexico into Arizona, a more cost-effective approach than routing it the width of the U.S. by rail. Routes for pipeline have been approved, Treanor said.

That availability - Canadian Association of Petroleum Producers say oil sands production in western Canada has grown fourfold since 1990 - is said to ensure consistent supplies and allows an oil refinery in Yuma County to supply high-paying jobs likely to remain for decades.

Barry Julian, of Julian Realty Investments, said he represents 15-20 landowners and sellers in the area, and that “everyone he talked to was in favor.” One gentleman, who said he owns land in the area and plans to build an energy-efficient house, said he was supporting of the proposed refinery and not concerned with carcinogens.

“I want to speak in support of the project. I disagree with the rhetoric,” he said.

Another proponent added that the economy has been “pounded into the ground and we’re moving backwards instead of forwards. We’re in trouble. Let’s get it fixed.”

A representative for the Yuma Audubon Society said his group was opposed to the refinery, and that it fails the majority of the criteria. He said should an emergency happen, the facility’s location along I-8 and near the Union Pacific Railroad would close main arteries of shipment and transportation across the U.S.

“It sends the wrong signal,” he said. “It’s old technology. We need to be looking toward alternative energy development.”

In other business, the board also approved the rezoning of three parcels totaling 240 acres from Agricultural Rural Preservation to Heavy Industrial per the request of Yuma Development One, LLC. The parcels are near the proposed oil refinery site, on the north and south sides of County 6th Street between Avenue 47 East and 471/2 East. The industrial use remains undetermined.

There were also two requests by Dahl, Robbins and Associates on the agenda, the second of which was withdrawn. The one presented and approved changes the land use designation of 103 acres from Suburban Density Residential to Low Density Residential for Donald W. Kelland. This allows the applicant to request rezoning to allow up to six dwelling units per acre for a proposed new residential development located at the southeast corner of Avenue 39 East and County 8th Street.


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Matt Keller can be reached at mkeller@yumasun.com or 539-6857.