A must-read & re-post............ Produced by VIU4SJ&A Senior Corresponding Writer, C. Williams FACEBOOK PAGE: Virgin Islands United for Social Justice & Accountability https://facebook/…/Virgin-Islands-U…/254231448030737 -------------------------------------------------------------- Out here in cyberspace is a retarded request for our 30th Legislature of the U.S. Virgin Islands to ratify the Governor’s Operating Agreement between ABR and the Government of the Virgin Islands. It is largely supported by persons who do not reside here [any longer], and where longtime residents have come to enjoy a great resurgence of fresh air flowing over St. Croix since the illegal February 2012 closure of HOVENSA. Key reasons it lists as “facts” follow below. Truthfully speaking, our objective comments are the only things which make this an excellent post. NOTE: ALL OF OUR COUNTERATTACKS ARE IN CAPITAL LETTERS AT THE END OF EACH PRO “FACT” BUT CON REALITY. 1) The November 11, 2014 letter from George H.T. Dudley to the Honorable John P. de Jongh, Jr. and the Honorable Shawn-Micheal Malone states HOVENSA will begin the process of shutting down all operations when HOVENSA’s funds run out in the middle of December. THAT PROVISION OR ITS ALLOWANCE WAS NOT PRESENT IN THE RATIFIED 3RD EXTENSION AGREEMENT. MOREOVER, WHAT BUSINESS DO YOU KNOW GETS TO PACK UP ITS GEORGIE BUNDLE AND LEAVE CONTRACTUAL ISSUES AND OTHER LEGAL/LAWFUL OBLIGATIONS BEHIND? 2) Page 108 of the Hess Corporation 2013 Annual SEC Report confirms the Members (Hess and PDVSA) do not anticipate providing any additional funding if an agreement to sell the refinery cannot be reached. (annualreports/Company/2453) SUCH REPORT CANNOT SUPERCEDE HOVENSA’S PRIOR AGREEMENT TO KEEP ITS END OF THE BARGAIN UNTIL ITS CONTRACT WOULD MATURE IN 2019. BY THE WAY, PAGE 38 OF THE PENDING ABR/VI AGREEMENT FOR RATIFICATION IS JUST AS IMPORTANT A READ. READ THE RIDICULOUS CONCESSIONS THEY ARE ASKING OUR SENATORS TO GIVE AWAY. 3) HOVENSA is no longer legally required to continue in the sales process. The “4th Amendment” of HOVENSA’s Concession Agreement with the Virgin Islands set the expiration date of the sales process as August 15, 2014 and that date was extended by agreement from both parties. Further extension can only occur with HOVENSA’s agreement and this is not expected to happen. THANKS TO THIS 30TH SENATE GIVING UP OUR POWER, THIS CLAIM ALONE MAKES THE AGREEMENT UNCONSCIONABLE AND CHALLENGEABLE IN COURT. SHAME ON THE SAME CURRENT SENATE FOR SIGNING THE 4TH AMENDMENT WITH SUCH BINDING (ALBEIT UNCONSCIONABLE) LIMITATION. LEAVING LESS TO BE DESIRED, OUR LOCAL AG HAS NEVER EXPRESSED NOR IMPLIED ANY DESIRE TO TAKE HOVENSA TO COURT ON THIS UNCONSCIONABLE PROVISION. 4) When HOVENSA runs out of funds they will not be able to maintain their Federal Operating Permits issued by the EPA. Because of the costs, uncertainties and time delays in obtaining Federal air permits, the chances of the facility ever operating again are greatly diminished once those permits are lost. IF COURT WILL NOT BE CONSIDERED, EMINENT DOMAIN IS BEST. LET THE GVI OWN THE LAND AGAIN. IF HOVENSA CANNOT PAY FOR THEIR PERMITS, THEY SHOULD NOT ENJOY CLAIM OF THE PROPERTY— SIMILAR TO THE RAMIFICATIONS EXPERIENCED WHEN WE CANNOT AFFORD TO PAY OUR PERSONAL PROPERTY TAXES: AUCTION AND/OR EMINENT DOMAIN. BESIDES, OPERATING OF THE FACILITY FOR A REFINERY AND EXISTING PERMITS ARE NOT BEING CONSIDERED AT THIS TIME BY THE RESIDENTS OF ST. CROIX. HEALTH AND A VIABLE, LESS EXPENSIVE ALTERNATIVE ENERGY PLAN ARE. WE WANT THE PERMITS TO BE LOST. 5) David Herr of Duff & Phelps testified at the Wednesday November 12, 2014 Committee of the Whole that if the sales process was to restart at this point it would be 3rd quarter next year before a new buyer was presented to the Legislature. WELL, IN THE WORDS OF SENATOR MILLIN-YOUNG, “THE CURRENT GROUP (ABR) WHOS BID TO LEASE (NOT OWN) CLAIMS TO BE THINLY CAPITALIZED. THIS MEANS THAT THEY NEED THE LEGISLATURE TO OKAY THEIR INTENT TO LEASE BEFORE THEY CAN GO BORROW MONEY. BRIEFLY PUTTING ON YOUR HAT AS AN ECONOMIC DEVELOPMENT AUTHORITY BOARD MEMBER, DO YOU BELIEVE THAT A GROUP OF VIRGIN ISLANDERS COULD HAVE OR COULD STILL BE IN THE POSITION TO BID? COULD A CONGLOMERATE OUT THERE BE IN A BETTER FINANCIAL POSITION TO ACTUALLY PURCHASE THE REFINERY?” THIS TELLS US ALL THAT ABR IS STILL NOT READY FOR THIS MOVE. NOT STABLE OR SOUND INVESTORS. THEY TELLING US WE ARE GETTING A CAT IN BAG, BUT A BEAR READY TO JUMP OUT. FIRST WE MUST REALLY UNDERSTAND THAT WE HAVE TO UNDERSTAND WHAT A GOOD DEAL IS. THIS CASE IN POINT IS PRECISELY WHY THE 30TH LEGISLATURE, AG FRAZER, AND GOV. DEJONGH ARE NOT THE ONES TO TRUST ON THIS MOST CRITICAL MOVE. AN INDEPENDENT TEAM CONTRACTED BY THE SENATE (WITH AID FROM PUBLIC AND LEGAL COUNSEL) IS BOTH NECESSARY AND BEST. 6) ABR has been vetted by Lazard, by Duff & Phelps and by Samsung. ABR complied with the sales process requirements and did so within the timeline outlined by the “4th Amendment” of the Concession Agreement. WONDERFUL FOR ABR, LAZARD, DUFF & PHELPS AND SAMSUNG; BUT WHEN OUR 30TH LEGISLATURE VETTED THEM AT THE LAST HEARING HELD ON NOVEMBER 12TH, ABR WAS NOT IN GOOD STANDING WITH LOCAL CORPORATE LAWS. SO WHY WERE THEY CONSIDERED OVER OTHERS LIKE MONARCH? AND HOW THEN COULD ABR HAD POSSIBLY “COMPLIED WITH THE SALES PROCESS REQUIREMENT WITHIN THE TIMELINE OUTLINED BY THE “4TH AMENDMENT” OF THE CONCESSION AGREEMENT?” WAS ABR SPECIALLY ENDOWED WITH THE RIGHT TO MEET THE REQUIREMENTS ANYTIME UP TO THE FINAL HEARING OF THE 30TH LEGISLATURE, SO THAT ABR COULD SECURE LAST MINUTE DOCUMENTS UP TO THE 12TH HOUR? ALSO, AS REPORTED, LAZARD SHOPPED THE REFINERY TO 150+ BUYERS. THIS WAS ONCE THE LARGEST REFINING ASSET IN THE WESTERN HEMISPHERE, SO EVERY POTENTIAL BUYER IN THE WORLD KNOWS OF HOVENSA. WHY HAS THERE BEEN NO REAL INTEREST? 7) Until recently, HOVENSA employed approximately 500 employees and contractors making them one of the largest employers in the Territory. We have yet to see the effect of a full shut down of the facility on our economy. OK. LET US TALK ECONOMY, COURTESY OF BRILLIANT MR. EDDY AND MR. MACFARLANE. HERE ARE SOME REAL NUMBERS AND REALITY TO SERIOUSLY THINK ABOUT! (MR. EDDY) “THE AVERAGE VIRGIN ISLANDER USES ABOUT 30 GALLONS OF GASOLINE OR DIESEL FUEL PER WEEK. THERE ARE APPROXIMATELY 60,000 VEHICLES. WHEN YOU PUT THAT TOGETHER AND MULTIPLY 52 WEEKS IN THE YEAR AND $3.70 PER GALLON RACK RATE. YOU GET $346,320,000.00 DOLLARS ANNUALLY IS WHAT HOVENSA TAKE HOME JUST OFF OF THE VIRGIN ISLANDS ALONE. FURTHERMORE, EVERYONE IS QUESTIONING HOW MUCH THE HOVENSA PROPERTY IS WORTH. HERE IS SOMETHING ELSE TO PONDER. AT THE GOING COST OF PROPERTY IN THE VIRGIN ISLANDS, I ESTIMATE THE COST OF HOVENSA’S PROPERTY TO BE ABOUT $1,000,000.00 AN ACRE, WHICH INCLUDES THE ASSETS AND BUILDINGS ON THE PROPERTY. MULTIPLY THAT BY THE 2,000 PLUS ACRES THEY OWN. WOW; YOU GET 2 BILLION PLUS DOLLARS. AT 8% LAND TAX RATE THAT COMES TO $160,000,000.00 ANNUALLY. DO YOU KNOW WHAT THE USVI COULD DO WITH THAT MONEY? JUST SOME NUMBERS TO PONDER.” (MR. MACFARLANE) “CAN YOU IMAGINE HOW MUCH MONEY THE PEOPLE LOST AFTER ALL THESE YEARS NOT COLLECTING 8% OR EVEN 1 %? AND WHEN THE PHONE COMPANY WENT PRIVATE FROM VITELCO AND NOT TRYING TO SECURE A PERCENTAGE OWNERSHIP? CAN YOU IMAGINE HOW MUCH GREEN THE TREASURY AND THE RETIREMENT SYSTEM WOULD BE NOW?” INDEED OUR ECONOMY COULD LARGELY IMPROVE WITHOUT HOVENSA—AND OUR RESIDENTS CAN BREATHE FAR BETTER! ALL SENATORS NEED TO ONLY VOTE IT DOWN AND DEMAND IT BE PASSED VIA FORMAL EXTENSION TO THE INCOMING LEGISLATURE. WE HAVE GIVEN HOVENSA/HOVIC EVERYTHING THEY ASKED FOR, EVERY TIME. ITS HIGH TIME THEY GIVE US AN EXTENSION. EVEN IF BY DEFAULT. THE PETITION WRITER SUMS UP HIS APPEAL AS SUCH: “The buyer before us may not be the “Big Oil” buyer many of us hoped for, but ABR is a sound option for the Virgin Islands. At the Senate Hearings and during their radio interview, ABR has shown that they have a reasonable plan, are committed to hiring Virgin Islanders including former HOVENSA employees, and are committed to the restart of the refinery. ABR is a much better option than letting HOVENSA run out of cash and close its gates for good.” SHORT OF A CRYSTAL BALL, AT THIS STAGE IN THE GAME, NONE OF US KNOW FOR CERTAIN IF ABR WILL BE THE BUYER. THERE IS NOTHING REASONABLE ABOUT THIS PLAN. AS A MATTER OF FACT, IT WILL BE THE GVI WHO HAS TO PUT UP THE SEED MONEY— AS PREVIOUS RETARDED DEALS UNDER OUR BELT. SEE THE WORDS OF SENATOR MILLIN-YOUNG IN #5 ABOVE. JOB COMMITMENT (RATHER PROMISE) IN 2 YEARS PLUS IS RIDICULOUS; ONE WOULD GO POOR-CLASS HUNGRY BY THEN. AND NO PAST SANE HOVENSA WORKERS WILL COME BACK HERE WHERE THEIR EMPLOYER CAN SO EASILY GET AWAY WITH EPA VIOLATIONS; BREACHES OF CONTRACTS WHICH WILL IMPAIR JOB SECURITY; ETC. MOST IMPORTANTLY, ST. CROIX RESIDENTS DO NOT WANT THE REFINERY REOPENED AFTER CONSIDERING THE PROVEN HEALTH RISKS. NEEDLESS TO SAY, WE DO NOT BUY IT, AND NEITHER MUST OUR 30TH LEGISLATURE. //////////////////////////
Posted on: Sun, 14 Dec 2014 10:28:35 +0000
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