As many South Dakota-based readers know, a deep-pocketed but anonymous entity has been trying to purchase large tracts of land near Elk Point in southeast SoDak for months. Clearly big development plans were afoot.Code-named "Gorilla," the secret project had everyone from local landowners to the Wall Street Journal buzzing about what the new development might be.
Yesterday, the announcement came: Dallas-based Hyperion Resources is planning to build an "eco-friendly oil refinery," as reported here in the Argus Leader and here in the WSJ. Apparently the Elk Point site is preferred by Hyperion, but not necessarily the final choice.
From the Argus story:
"The project would refine 400,000 barrels of oil into low-sulfur gasoline and diesel fuel each day, enough to serve South Dakota, Iowa and Nebraska, said Richard Benda, state tourism and development secretary. During four years of construction, the project would create an average of 4,500 jobs, Phillips said. Once built, it would employ 1,800 full-time workers earning between $20 and $30 per hour, he said."
As the article goes on to note, this massive "energy center" could coincide with another oil-related project in the state: TransCanada, a Calgary-based energy infrastructure behemoth, has plans to place an underground oil pipeline (the Keystone Pipeline) through eastern South Dakota. From the Argus:
"A Canadian firm, TransCanada, is planning a pipeline that would move 435,000 barrels of crude oil per day under South Dakota by 2009. Trans-Canada spokesman Jeff Rauh said Wednesday that the pipeline is not related to Hyperion, and the two companies have not met.He did say TransCanada always is looking for new customers and could expand its daily volume to 590,000 barrels. Rauh said a spur line of 30 miles or so to meet Hyperion's refinery would be possible."
The pipeline and its proposed route actually would pass over some Carson farmland west of Langford, SD. Needless to say, we will be paying attention in the coming months and years.
BC
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