Longview Oil Refinery Promoters Have Shady History

Interesting comments by Diane Dick: 

The Port has been talking to Soumas for more than year. If these wheeler dealers have so much experience in the energy industry there should be a long trail of financial records. Instead, there’s a legal complaint that Pistulka gave false information on a commercial credit application then didn't pay the $1.6 million bill. No refinery has been built on the west coast in 25 years yet these schmucks think they’ve got a shot. The port has wasted enough time and our tax dollars on this scheme.

 

A northern view of an oilseed-crushing and biodiesel plant in Odessa, Wash., operated by TransMessis Columbia Plateau, which shut the plant down last year due poor financial backing. Some former TransMessis officials are involved in the proposed oil refinery in Longview.

Oil refinery faces host of hurdles before coming to Longview

 The Daily News   By Marissa Luck       05/29/15

Port of Longview made national headlines this week when it announced it would pursue a deal with a startup company for a new $800 million oil refinery. But how likely is it that the plant would actually be built?

Many factors work against Riverside Refining’s favor: There will be fierce opposition from environmental groups and a lengthy permitting process. In addition, a lawsuit against top company officials could undermine confidence in the project.

“If I had to bet a $100, there’s no question of what I would do. They’ve got a gauntlet of different things that have to go right for this to work,” said Tom Kloza, global energy analyst at Oil Price Information Service.

But other factors could improve Riverside’s prospects, too. The company says it has financial backing and potential customers. Despite an improving unemployment rate, Longview is still hungry for jobs, and the community is accustomed to heavy industry. And port commissioners and candidates are open to it.

“We’re supposed to open to any project that can pass our due diligence and is good for the community, and safe. Sometimes people don’t see that in that manner with oil, but we need to stay open and not be negative on everything,” said Port Commission President Bob Bagaason.

Dozens of potential clients propose projects to the port every year, said port spokeswoman Ashley Helenberg, but before reaching the negotiation stage a company has to first pass an initial review, which Riverside has. That review includes a preliminary evaluation of how the project would affect the port, what land it would encumber, how many jobs it would create and what potential revenue it could bring. The company will go through a more thorough vetting process during negotiations, including a check on Riverside’s financial backers, she said.

Riverside Refining and its parent, Waterside Energy, are both Houston-based startups. Soumas said that neither he or his business partner Chris Efird have started or operated an oil refinery. But both have worked in the energy business a combined 23 years, he said, and they are working with experts in the industry.

One local environmental group, Columbia Riverkeeper has already questioned Riverside’s credibility, pointing out that top Riverside officials are being sued in Lincoln County over their involvement in an Odessa, Wash., biodeisiel company called TransMessis Columbia Plateau.

TransMessis operated the $4.3 million plant for the Odessa Public Development Authority, but it shut down after six months after failing to finance an expansion and falling $200,000 behind on its rent, according to OPDA. Up to 28 employees were laid off and a seed company is suing TransMessis for nonpayment of $1.6 million in canola seed.

The suit names Soumas, Efird, Joseph Rozelle and Damon Pistulka as defendants, according to court documents. Pistulka, who was the CEO of TransMessis, is a contracting project manager for Riverside, Soumas said. Soumas was CEO of Evergreen Renewable and Efird is CEO of Access Global Investments, which both backed TransMessis.

But Soumas said Riverside has no affiliation with TransMessis.

Financing for the TransMessis project failed to materialize due to poor market conditions, as plummeting gas prices made biodiesel projects less attractive to investors. Financing for oil projects is a different story, Soumas saiid.

However, Kloza, the OPIS analyst, said investors can be spooked by stringent regulations and environmentalists in the region. You’re more likely to build a flying car than get financing for an energy project in this region, because delays are so likely, he quipped.

He pointed to the proposed Tesoro Corp.’s proposed oil terminal at the Port of Vancouver: Port commissioners there approved it in 2013, but it still is not permitted. It would take even longer to permit a refinery, Kloza said.

But Soumas, a former Northwest resident, said the region is not as opposed to oil projects as outsiders may think.

“Everybody outside the Northwest thinks that’s where energy projects go to die. ... We believe that a properly managed projects can go through.”

Washington's refineries

Longview — Riverside Energy (proposed)

• Daily processing: 30,000 barrels (1.25 million gallons) of crude oil.
• Products:  liquid petroleum gas, gasoline, diesel/jet fuel and kerosene.
• Markets: Pacific Northwest regional markets.

Tacoma — U.S. Oil

• Daily processing: 35,000 barrels (1.5 million gallons) of crude oil.
• Products: gasoline, diesel and jet fuels, residual fuels and asphalt.
• Markets: truck and trailer, marine and rail loading for fuels and asphalt in Tacoma; jet fuel to the military via a pipeline.

 Ferndale — ConocoPhillips

• Daily processing: 105,000 barrels (4.4 million gallons) of crude oil.
• Products: gasoline and diesel fuel, residual fuel oil.
• Markets: Pacific Northwest marine markets

Cherry Point – British Petroleum

• Daily processing: 225,000 barrels (9.5 million gallons) of crude oil.
• Products: transportation fuels (gas and diesel).
• Markets: gas to Washington and Oregon, jet and diesel fuel to Seattle International Airport and U.S. military, gas and jet fuel to Vancouver, B.C., California, Arizona and Nevada.

Anacortes – Shell Oil

• Daily processing: 145,000 barrels (6 million gallons) of crude oil.
• Products: gasoline, fuel oil, diesel fuel, propane, butane and petroleum coke.
• Markets: West Coast.

 Anacortes – Tesoro

• Daily processing: 120,000 barrels (5 million gallons) of crude oil.
• Products: gasoline, jet fuel and diesel fuel.
• Markets: western Washington and Oregon.

– Shari Phiel, The Daily News

Federal agency dings Shell for 2012 oil rig mishap in Arctic

The conical drilling unit Kulluk sits grounded 40 miles southwest of Kodiak City

Federal agency dings Shell for oil rig mishap in Arctic

By DAN JOLING   Fire Engineering    05/28/15

ANCHORAGE, Alaska (AP) — As Royal Dutch Shell PLC seeks permits for exploratory oil drilling off Alaska's northwest coast, a federal agency has concluded the company underestimated risk the last time it moved drill rigs to Arctic waters.

A National Transportation Safety Board report issued Thursday said the probable cause of the grounding of the company's mobile drilling vessel, the Kulluk, in 2012 was "Shell's inadequate assessment of the risk for its planned tow" across the Gulf of Alaska.

Shell spokesman Curtis Smith said by email the company is reviewing the report but has already made changes and "engaged extensively with the regulators on that topic."

A revised operations plan provides more oversight of contractors and better access for contractor employees to tell Shell how to improve operations, he said.

The company also took the recommendation of the Interior Department and used a third-party auditor to review its 2015 operation plan, Smith said. An audit of operations in real time also is planned.

In 2013, NTSB representatives sat in on weeks of inquiry led by the Coast Guard, which concluded last year that poor risk assessment and management were among factors that led to the grounding of the rig.

Shell officials have regularly pointed out that the company's 2012 problems were tied to transportation issues, not drilling. The company hopes to resume exploratory offshore drilling this year in the Chukchi Sea.

The Interior Department is in the process of deciding whether to grant the necessary drilling permits to Shell. Smith says there is no correlation between the grounding of the Kulluk and the remaining permits needed by Shell for that drilling.

Arctic offshore drilling is strongly opposed by environmental groups in the region threatened my climate change. Critics say oil companies can't clean up major spills, especially in cold, dark, remote Arctic waters far from shore-based infrastructure common in offshore drilling areas such as the Gulf of Mexico.

Petroleum companies want to tap reserves estimated by the U.S. Geological Survey at 26 billion barrels of recoverable oil.

Shell in 2012 used the Kulluk to drill in the Beaufort Sea and the Noble Discoverer to drill in the Chukchi.

At the conclusion of the open water season, Shell towed the Kulluk, a conical barge 266 feet in diameter, to Dutch Harbor in the Aleutian Islands.

The Kulluk, behind the 360-foot Aiviq, on Dec. 21, 2012, departed Dutch Harbor for a Seattle shipyard. The tow plan called for staying within 200 miles of the coast, allowing for easier search and rescue, despite the potential for rougher water.

On Dec. 27, as sea swells reached 25 feet, the tow line broke. Within five hours, mechanical problems shut down the Aiviq's four engines.

Five days of attempting to corral the Kulluk with the repaired Aiviq, a Coast Guard cutter and hired tugs proved unsuccessful. The drill rig ran aground Dec. 31, 2012, off Sitkalidak Island near Kodiak. .....  more here 

Alberta Fire Threat Grows as It Moves Near Oil Sites

 

Smoke rises from a wildfire east of Slave Lake, Alberta May 25

Alberta Fire Threat Grows as It Moves Near Oil Sites

by Robert Tuttle    Bloomberg Business   May 27, 2015

Northern Alberta firefighters are battling a wildfire that has moved within 5 kilometers of Canadian Natural Resources Ltd.’s oil sands operations.

The Cold Lake Air Weapons Range blaze is spreading in the direction of oil and natural gas operations and threatens plants run by Canadian Natural and Cenovus Energy Inc., Scott Long, an executive director at the Alberta Emergency Management Agency, said in a news conference Wednesday. Firefighters put in containment and protection guards to keep it from getting closer, he said.

Wildfires have prompted the shutdown of 230,000 barrels a day of oil-sands output, about 10 percent of Canada’s production. Heavy Western Canadian Select crude’s discount to U.S. benchmark West Texas Intermediate narrowed for a second day, shrinking 75 cents to $8.75 a barrel on Wednesday, data compiled by Bloomberg show.

Cenovus shut its 135,000-barrel-a-day Foster Creek operations, located near Cold Lake, on Saturday. Canadian Natural’s 80,000 barrel a day Primrose facility remained down Wednesday after shutting over the weekend, spokeswoman Julie Woo said in an e-mail. Production from the company’s Kirby South operations was reduced by 18,000 barrels a day.

The Cold Lake fire that started Saturday expanded to cover 17,500 hectares (43,000 acres), Alberta’s Environment and Sustainable Resource Development agency said on its website. Another fire near the town of Chard grew to 1,400 hectares and burned in an area with “numerous pipelines and well sites.”....    more here

A Song of Oil, Ice and Fire

Shell could be drilling in the Arctic in less than 5 weeks. It’s a choice between our natural world and an oil slick. Which will you choose? 

Watch and share this video to expose Shell’s risky Arctic drilling plans.