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Ground broken for oil refinery on ND reservation
Fuel Fix ^ | May 10, 2013 | Associated Press

Posted on 05/10/2013 5:59:05 AM PDT by thackney

The Three Affiliated Tribes have broken ground for a $450 million oil refinery on the Fort Berthold Indian Reservation in northwestern North Dakota

The Thunder Butte Petroleum Services Refinery will be constructed in four phases over two years. A ceremonial groundbreaking was held Wednesday, after more than a decade of planning, according to The Forum and the Minot Daily News. Construction is expected to begin in August.

“We grew up poor. We were lucky if we had a pair of clean overalls,” Tribal Chairman Tex Hall said. “But our parents made sure we went to school and got educated. They did the best they could for us. They didn’t know we’d have this oil and gas resource, but now we do. It’s our responsibility to manage it, and we are.”

The refinery is named for one of the most sacred buttes on the reservation, according to Hall.

(Excerpt) Read more at fuelfix.com ...


TOPICS: News/Current Events; US: North Dakota
KEYWORDS: americanindians; energy; refinery
Excerpted for AP content
1 posted on 05/10/2013 5:59:05 AM PDT by thackney
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To: thackney

Tribe breaks ground on refinery
http://oilpatchdispatch.areavoices.com/2013/05/09/tribe-breaks-ground-on-refinery/

The tribes held a ceremonial groundbreaking for the Thunder Butte Petroleum Services Refinery, which will be constructed in four phases over two years. It will have the capacity to process up to 20,000 barrels per day of Bakken crude that is produced on the Fort Berthold Reservation.

Construction is expected to begin in August on the first phase, a truck-to-rail crude oil transloading facility that later ties into the refinery, said Rich Mayer, CEO of Thunder Butte Petroleum Services.

The transloading facility, which involves building storage tanks and a connection to a Canadian Pacific line near the property, would load and ship one 120-car train every four days, said Kurt Swenson, vice president of Corval Group, a consultant involved with engineering on the project.

The rail facility will be operational by early 2014 while the refinery is being constructed.

The tribe is finalizing a contract with a company called Chemex LLC, which will construct a modular refinery in Bakersfield, Calif., and ship it to North Dakota to be assembled.

Once the contract is finalized, construction is estimated to take 18 to 24 months, Mayer said.

Initially the refinery will produce diesel and sell the byproducts. After the final phase, the refinery will have the ability to refine more diesel and also some gasoline, Mayer said.

The refinery will provide 300 local construction jobs and 75 to 100 full-time jobs after it’s operational, officials said.

...

The refinery is off of Highway 23 on 469 acres northwest of Makoti the tribe bought from Bernice Nelson of Minot, who used to farm on the property with her husband. Makoti, which had a population of 154 in 2010, is about 35 miles east of New Town.

The tribe has contributed $40 million toward the transloading facility portion of the project.

The approximate $450 million total cost will be financed with bonds, said Daniel Eastman, managing director of private investment banking firm John W. Loofbourrow Associates Inc., who traveled from New York to attend the ceremony.


2 posted on 05/10/2013 6:01:33 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
Well that's good news. Good for the Injuns. Smart. Maybe this will help them become proud and self sufficient again and not wholly reliant on government handouts.
3 posted on 05/10/2013 6:01:42 AM PDT by Obadiah (High speed, low drag.)
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To: thackney

Great news.

On the refinery subject, I have always wondered why the Iranians pissed away so much money on Nuclear war when they could have built their own refinery.


4 posted on 05/10/2013 6:04:03 AM PDT by Venturer
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To: Venturer

If they were a nuclear power, they could claim all the oil in the Persian Gulf region, or so some of them think...


5 posted on 05/10/2013 6:08:03 AM PDT by thackney (life is fragile, handle with prayer)
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To: Venturer

BTW, they have 9 refineries of their own and have for some time. They have been expanding their gasoline production from those refineries for a while.


6 posted on 05/10/2013 6:08:52 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
Casinos, cigarettes and now oil .. ?

Guess whom the next LaRaza is ...

7 posted on 05/10/2013 6:14:26 AM PDT by knarf (I say things that are true ... I have no proof ... but they're true)
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To: thackney

Same rationale as Tribal Casinos: they’re just doing what the enviro-nazis and the administration have made impossible in the U.S.


8 posted on 05/10/2013 6:17:00 AM PDT by ArmstedFragg (hoaxy dopey changey)
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To: thackney

Halleluia!


9 posted on 05/10/2013 6:17:28 AM PDT by afraidfortherepublic
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To: thackney

I must say, sincerely, that you really know a lot about this topic.....thanks for all these articles, and your follow up posts.


10 posted on 05/10/2013 6:17:34 AM PDT by ConservativeDude
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To: thackney

Good for them. This will make the environazi’s heads explode.


11 posted on 05/10/2013 6:19:23 AM PDT by miliantnutcase
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To: thackney

“Thunder Butte Petroleum Services Refinery”

Michelle Obama must be upset that there’s a refinery named after her.


12 posted on 05/10/2013 6:32:20 AM PDT by struggle
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To: thackney
Great news, but I am certain that the greenies will be trying to tie this project up in the courts for the rest of eternity.

If they build this, I believe it will be the first new refinery built in the USA in over 30 years!

Now, if the Tribe could just get their firearms back from the benevolent and caring government.

13 posted on 05/10/2013 6:33:14 AM PDT by Redleg Duke ("Madison, Wisconsin is 30 square miles surrounded by reality.", L. S. Dryfus)
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To: thackney

Oh no! Native Americans doing something that will shock “environmentalists”. Just shows that environmental extremists can’t trust anyone.


14 posted on 05/10/2013 6:36:19 AM PDT by popdonnelly (The right to self-defense is older than the Constitution.)
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To: Redleg Duke

When was the last refinery built in the United States?
http://www.eia.gov/tools/faqs/faq.cfm?id=29&t=6

There were a total of 144 operable petroleum refineries in the United States as of January 1, 2012.

The “newest” refinery in the United States began operating in 2008 in Douglas, Wyoming. However, the newest significant (or sophisticated) refinery began operating in 1977 in Garyville, Louisiana.

Capacity has also been added to existing refineries through upgrades or new construction. The most recent examples include:

In 1998, Orion Refinery massively upgraded and reopened a refinery in Norco, Louisiana, which was a small, simple refinery that originally opened in 1967. (It is now owned by Valero.)

Valero opened a “new” and very sophisticated refinery in 1983 in Corpus Christi, Texas, on the site of a simple refinery that originally opened in 1975.

The newest refineries currently operating in the United States are listed at the link:


15 posted on 05/10/2013 6:37:45 AM PDT by thackney (life is fragile, handle with prayer)
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To: Redleg Duke

From what I read a while back, the amount of product they put out will barely take care of the fuel needs of the local area and have almost zero impact on the overall fuel situation nationally. As to the nitrogen fertilizer plant they’re going to build, let’s hope it’s further out of town than the one that just popped in TX. That was a HUGE explosion. One the company said could NEVER happen.


16 posted on 05/10/2013 6:39:29 AM PDT by rktman (BACKGROUND CHECKS? YOU FIRST mr. president(not that we'd get the truth!))
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To: thackney
Obama has checked out books from the Library of Congress on President Jackson and how to deal with Indians.
17 posted on 05/10/2013 6:39:42 AM PDT by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: rktman

Correct, at 15,000 BPD it will be one of the 10 smallest refineries in the US.

http://www.mharefinery.com/about-us/

http://www.eia.gov/petroleum/refinerycapacity/table3.pdf


18 posted on 05/10/2013 6:44:38 AM PDT by thackney (life is fragile, handle with prayer)
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To: struggle

Gold Star analysis of the day...


19 posted on 05/10/2013 6:53:13 AM PDT by Eric in the Ozarks (NRA Life Member)
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To: thackney
Thanks for the update. We built a whopping six refineries in the past 30 years! And three of them were in Alasks.
20 posted on 05/10/2013 6:55:32 AM PDT by Redleg Duke ("Madison, Wisconsin is 30 square miles surrounded by reality.", L. S. Dryfus)
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To: thackney

So, how long would it take to get approval of a “real” refinery? It’s been 25 or 30 years since a new “real” refinery has been put up. The existing ones just keep trying to upgrade and produce despite the ever increasing BS from the epa and enviro-wak-a-doodles. Summer blend my butt.


21 posted on 05/10/2013 6:56:48 AM PDT by rktman (BACKGROUND CHECKS? YOU FIRST mr. president(not that we'd get the truth!))
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22 posted on 05/10/2013 7:02:12 AM PDT by RedMDer (May we always be happy and may our enemies always know it. - Sarah Palin, 10-18-2010)
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To: Redleg Duke

I guess the “no new refineries” claim doesn’t mean anything to me. In those same 3 decades, we have expanded and upgraded our existing refinery to the point where the average output per refinery has doubled from 59.4 MBPD to 120.3 MBPD.

Number and Capacity of Petroleum Refineries
http://www.eia.gov/dnav/pet/pet_pnp_cap1_dcu_nus_a.htm

We now produce more refined product than the country uses. Consequently we import more crude oil than we need and export the surplus refined products helping our trade balance keeping more jobs in the US.

At this point, building additional refineries will only result in either exporting more refined product, or shutting down existing refineries. We do not have a shortage of refineries for the total US.


23 posted on 05/10/2013 7:04:27 AM PDT by thackney (life is fragile, handle with prayer)
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To: rktman
So, how long would it take to get approval of a “real” refinery?

I have an understanding of the oil/gas industry. What you are asking about is forecasting politics.

I suggest asking someone with a more appropriate skill set:

The existing ones just keep trying to upgrade and produce despite the ever increasing BS from the epa and enviro-wak-a-doodles.

They do more than try. In those same 3 decades we have doubled the output of the average US refinery.

24 posted on 05/10/2013 7:08:47 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Ah yes. The Great Karnak. By try, I meant dealing with the epa. An arduous task for sure.


25 posted on 05/10/2013 7:14:30 AM PDT by rktman (BACKGROUND CHECKS? YOU FIRST mr. president(not that we'd get the truth!))
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To: rktman

I used to work for a company that mainly designed refinery units, specializing in the heavy oil end but also did complete refineries for places like Brazil and other countries.

The cost of adding 250 MBPD to an existing refinery of the same size was about 40% the total cost of building a 250 MBPD refinery on a completely empty location. The infrastructure to support the increased output is so much cheaper than building it from scratch.


26 posted on 05/10/2013 7:17:35 AM PDT by thackney (life is fragile, handle with prayer)
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To: Obadiah

This reservation is different then the ones I’ve seen in So Dal. It’s cleaner and you do not see the alcoholism of the lakota.
Most of the people here have jobs.


27 posted on 05/10/2013 7:30:12 AM PDT by South Dakota (shut up and build a bakken pipe line)
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To: thackney

Roger that. I worked at KSC and we constantly had to mod and upgrade the LOX and LH2 storage/supply facilities. Sure beat the cost of building new ones. Especially the dewars for storage. Saturn program era builds. But they worked.


28 posted on 05/10/2013 7:36:24 AM PDT by rktman (BACKGROUND CHECKS? YOU FIRST mr. president(not that we'd get the truth!))
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To: rktman
Especially if you were starting with a refinery that was a few decades old. During the expansion, related upgrades on the existing might lower the new unit down in size for the same total throughput.

For example:
An existing older 250 MBPD plant could be upgraded to 300 MBPD plant and only build a 200 MPD new expansion. At the same time, the expansions could target more valuable fuels than what was the greatest profit several decades ago.

It is certainly more complicated than that, but it does help explain the point why expansions can be much cheaper than new grassroot construction.

29 posted on 05/10/2013 7:47:30 AM PDT by thackney (life is fragile, handle with prayer)
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To: struggle

LOL!!!


30 posted on 05/10/2013 7:55:36 AM PDT by Stonewall Jackson (I aim to misbehave.)
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To: thackney

Waiting for the Enviro tribe to come out claiming it is being built on “sacred Indian burial grounds” in an attempt to stop it!


31 posted on 05/10/2013 7:58:27 AM PDT by Ruy Dias de Bivar (When someone burns a cross on your lawn, the best firehose is an AK-47.)
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To: thackney

Trespassing EPA inspectors will be scalped on sight...


32 posted on 05/10/2013 8:27:48 AM PDT by Buckeye McFrog
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To: thackney

It’s taken awhile, but it looks like one tribe is getting the last laugh on those who put their ancestors on that reservation.


33 posted on 05/10/2013 8:28:58 AM PDT by TheDon (Inside Every Liberal is a Totalitarian Screaming to Get Out.)
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To: thackney

This will be another financial boondoggle and probable environmental disaster as well.

The tribal government is corrupt, inept, capricious, unaccountable.

It’s like the BIA “Cobell” settlement of the past several years and the more recent Pigford reparations case.

The government backs a preferred status group, bends rules, pours money in, then the whole thing blows up.

Fingers are pointed, charges of bigotry and discrimination are levelled—and taxpayers are forced to pay for the failure and subsequent cleanup as well.


34 posted on 05/10/2013 8:52:36 AM PDT by Fightin Whitey
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To: thackney

Thanks for the information. I think the “no new refineries” thing is that the environmentalists have been delaying every new refinery and forcing the improvement of existing facilities. That is good that the latter occurred, but it certainly wasn’t the outcome they wanted.


35 posted on 05/10/2013 10:22:34 AM PDT by Redleg Duke ("Madison, Wisconsin is 30 square miles surrounded by reality.", L. S. Dryfus)
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To: thackney

And produced cleaner fuels, too.


36 posted on 05/10/2013 11:12:58 AM PDT by Eric in the Ozarks (NRA Life Member)
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To: struggle

Ouch !


37 posted on 04/23/2014 6:49:53 AM PDT by Eric in the Ozarks (Rip it out by the roots.)
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To: thackney

Drilling and building refineries....should have been done decades ago.


38 posted on 04/23/2014 6:52:01 AM PDT by 1Old Pro
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