Supporters of DL refinery encouraged by in-depth report
DEVILS LAKE, N.D. - Promoters of a proposed 20,000-barrel-per-day oil refinery near Devils Lake are encouraged by an in-depth report, released Friday, that explores the $200 million project.
DEVILS LAKE, N.D. – Promoters of a proposed 20,000-barrel-per-day oil refinery near Devils Lake are encouraged by an in-depth report, released Friday, that explores the $200 million project.
The Devils Lake City Commission will decide Feb. 2 whether to annex the land for the project. Annexation would mean the city plans to move forward with the project and would trigger the state regulatory permitting process, according to Rachel Lindstrom, executive director of Forward Devils Lake, the local economic development agency.
“We were exceptionally pleased that the due diligence study did not find any fatal flaws in the project,” she said.
The refinery, similar to one being built in Dickinson, would employ about 100 people and could create as many as 400 spin-off jobs in the area, according to preliminary estimates.
The due-diligence report was signed by former North Dakota Congressman Earl Pomeroy, an attorney with Alston & Bird LLP of Washington, D.C. The report pointed to a list of primary concerns relating to the project including the company’s ability to fund the project, provide ample working capital and its estimated two-year construction timetable.
“Although none of the items noted are necessarily fatal flaws, they are potential risks which will need to be addressed as the project proceeds,” the report stated.
The refinery is being proposed by Vancouver, B.C.-based Eagles Ledge Energy Ltd., which created a wholly owned subsidiary, American Dakota Refinery to operate the facility.
If approved, the refinery would be built on 300 to 350 acres of land just northwest of Devils Lake, along the north side of U.S. Highway 2, near the Devils Lake Industrial Park.
Developers estimate the refinery could be operating as early as 2017, although the due-diligence report indicated that timeline may be too aggressive.
It would produce off-road diesel fuel, which is used in farm and construction equipment, as well as a variety of other products.
“At the end of the day, the city wanted confirmation that this company has the ability to do what they say they’re going to do,” Lindstrom said. “The things pointed out have to do with the business end. We don’t feel that we’re worried about their finances.”