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Former East Texas boom town getting new refinery
Fuel Fix ^ | August 6, 2012 | Associated Press

Posted on 08/06/2012 6:16:00 AM PDT by thackney

The refinery will be on a site off Texas Highway 323, 1.25 miles southeast of New London. Current processing equipment in Longview will be relocated to Rusk County, upgraded and restarted.

Plans for the project, which has been in the works for about 18 months, are to produce 30,000 barrels per day of light sweet crude and produce gasoline and diesel fuel.

“The basic concept of that project is to take crude oil that is relatively local and available and produce gasoline and diesel as a result,” said Kelley Holcomb, general manager for the Angelina and Neches River Authority, the conduit bond issuer for the project.

An estimated 300 to 400 jobs will come to the area during the approximately two-year construction period, and up to 85 high-paying, full-time jobs are expected at the site when the refinery is operational. During the next decade, the economic impact of the project is estimated at $8 billion, according to a presentation made earlier this year. The immediate economic impact, including construction and sales tax on local materials, is estimated at $384 million.

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


TOPICS: News/Current Events; US: Texas
KEYWORDS: energy; refinery
New London, Texas has the unfortunate history of being home to one of the worst natural gas explosions in US history.

It lead to development of many safety codes.

NEW LONDON SCHOOL EXPLOSION
http://www.tshaonline.org/handbook/online/articles/yqn01

. In 1937 New London, Texas, in northwest Rusk County, had one of the richest rural school districts in the United States. Community residents in the East Texas oilfield were proud of the beautiful, modern, steel-framed, E-shaped school building. On March 18 students prepared for the next day's Interscholastic Meet in Henderson. At the gymnasium, the PTA met. At 3:05 P.M. Lemmie R. Butler, instructor of manual training, turned on a sanding machine in an area which, unknown to him, was filled with a mixture of gas and air. The switch ignited the mixture and carried the flame into a nearly closed space beneath the building, 253 feet long and fifty-six feet wide. Immediately the building seemed to lift in the air and then smashed to the ground. Walls collapsed. The roof fell in and buried its victims in a mass of brick, steel, and concrete debris. The explosion was heard four miles away, and it hurled a two-ton concrete slab 200 feet away, where it crushed a car.

...

Of the 500 students and forty teachers in the building, approximately 298 died. Some rescuers, students, and teachers needed psychiatric attention, and only about 130 students escaped serious injury.

1 posted on 08/06/2012 6:16:08 AM PDT by thackney
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To: thackney

Awesome news!


2 posted on 08/06/2012 6:20:14 AM PDT by TheRhinelander
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To: thackney

http://galvestondailynews.com/story/332262

August 5, 2012 - HITCHCOCK, TX — For 45 years, Bebco Industries has built some pretty big projects but none as large as the one that slowly moved down Delaney Road late Friday night.

Portions of several area roads were closed as a 210-ton building measuring 30-feet-by-70-feet inched its way from Bebco’s manufacturing plant to Jones Lake. From there, the massive structure and it’s 80-ton sister building were to be loaded on a barge for a trip up the Intracoastal Waterway before heading to the Mississippi River for the journey to Indiana.

The massive buildings, two years in the making, are destined for BP’s Whiting, Ind., refinery.

“It’s the biggest single project we’ve ever done,” Bebco president Mike Baucom said. “We’ve done lots of smaller buildings for one facility but this is our single biggest structure ever.”

The buildings will house a series of pipes designed to help BP prevent or quickly stop fires on its Whiting Coker unit. The refinery is gearing up for a large import of Canadian oil.

The buildings are fire suppression water deluge units. They’re designed to water down a unit and prevent any fires that could erupt. The pipes inside the buildings will pump water from Lake Michigan.

Baucom said it cost about $1.5 million to build the two buildings. The moving costs alone are more than $1.2 million, Baucom said.

The haul to the water began about 9 p.m. Friday and wasn’t scheduled to end until sunrise today.

The blast-resistant buildings are part of the construction programs Bebco perfected during the past four decades.

It took 19 months to design the structure, Baucom said.”


3 posted on 08/06/2012 6:22:19 AM PDT by Cincinatus' Wife
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To: thackney

So Longview is losing 300-400 jobs to New London. Just great.


4 posted on 08/06/2012 6:28:33 AM PDT by mnehring
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To: Cincinatus' Wife

I did a little work on BP’s Whiting refinery expansion a couple years ago. It is a massive expansion.


5 posted on 08/06/2012 6:29:40 AM PDT by thackney (life is fragile, handle with prayer)
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To: Cincinatus' Wife

Texas + Indiana = the right stuff.


6 posted on 08/06/2012 6:29:50 AM PDT by txrangerette ("HOLD TO THE TRUTH...SPEAK WITHOUT FEAR." - Glenn Beck)
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To: TheRhinelander
and produce gasoline and diesel fuel

How about refining some more avgas (100 LL)?
This five bucks plus a gallon is killing me!

7 posted on 08/06/2012 6:30:25 AM PDT by grobdriver (Proud Member, Party of NO! Nobama, No Way, No How!)
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To: mnehring
So Longview is losing 300-400 jobs to New London.

For this Texan's point of view, those location are essentially the same. My daily Houston commute is longer than the distance between those towns.

8 posted on 08/06/2012 6:32:35 AM PDT by thackney (life is fragile, handle with prayer)
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To: mnehring

Are you being funny, sarcastic, what??

They are only a few miles apart.


9 posted on 08/06/2012 6:33:11 AM PDT by txrangerette ("HOLD TO THE TRUTH...SPEAK WITHOUT FEAR." - Glenn Beck)
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To: thackney

Around here we see bumper stickers....... LOCAL FOOD

In Texas the stickers probably read.....LOCAL GAS

True progress will result from examining what you have and making it bigger and better. The folks in New London are showing the way


10 posted on 08/06/2012 6:35:19 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: mnehring

I could be wrong, but I’m pretty sure the company is just moving the equipment from the old Premier refinery which has been closed for years.


11 posted on 08/06/2012 6:36:44 AM PDT by Texas Mulerider (Rap music: hieroglyphics with a beat.)
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To: txrangerette; thackney

I know, I was thinking about revenue to the city. Good on New London/Overton.
I don’t think the additional 20 mile commute will be a big deal to the workers.


12 posted on 08/06/2012 6:48:50 AM PDT by mnehring
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To: Texas Mulerider

That would make sense.


13 posted on 08/06/2012 6:51:35 AM PDT by mnehring
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To: thackney
I would rather beat myself in the head with a hammer than deal with Houston's traffic everyday.
14 posted on 08/06/2012 7:36:04 AM PDT by IMR 4350
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To: thackney

Later


15 posted on 08/06/2012 7:57:30 AM PDT by I_be_tc
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To: IMR 4350

Without a doubt, traffic was the worst part of returning to Houston area from Alaska.


16 posted on 08/06/2012 8:21:39 AM PDT by thackney (life is fragile, handle with prayer)
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To: Texas Mulerider
I’m pretty sure the company is just moving the equipment from the old Premier refinery

Looks like you are correct.

Gregg County Refinery
http://www.cdegroup.org/site/cpage.asp?cpage_id=180024884&sec_id=180008821

Gregg County Refinery purchased this dormant refinery from the taxing entities in Gregg County in late 2006. As a result of this acquisition there has been significant steps to move forward with business plans and financing to restart and upgrade the current facilities. During the proceeding years after the purchase there were set backs to moving forward with the business plans as a direct result of the tragedy of Hurricane Ike. The main office complex suffered wind damage that cause it to be condemned as well as several of the towers suffered wind damage. This damage and the damages to the Gulf Coast effected the entire business interests of Gregg County Refinery and its associates. The all consuming effort to restart the business interests in the Gulf Coast region has delayed the restart of the Gregg County Refinery. Gregg County Refinery is requesting the financing currently available in the Hurricane Ike Group C Bonds in the amount of $186,327,000 million dollars!

Longview, TX – Gregg County – 601 Premier Road
1 1/2 miles SE of New London, TX – Rusk County – E. Hwy 323

Phase 1 – Initially we will acquire approximately 161 acres S. East of the City of New London TX in a rural area outside of town. Move existing Refinery Equipment from Longview and commission for start up in New London. Existing equipment will be upgraded with new wireless valves, controls and software. Additional pipeline for connectivity will be added for distribution of approximately 3 ½ - 4 miles and will include fiber optics controls, headers and valves. Office spaces, control rooms and Security buildings will be constructed at the new site.

Phase 2 – Remaining Tank Farm and Distribution at Longview facility will be upgraded and operated as both a Material Receiving Center and Product Sales Terminal. All grades of Gasoline, Jet Fuels, Diesels, Propane and Butane will be sold from the existing racks.

17 posted on 08/06/2012 8:26:27 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
Just wait until someone gets the bright idea to do major construction on the freeways at the same time.

A 30 minute drive will suddenly become a 3 hour drive.

Better yet, wait for someone to decide it's a good idea to eat a bowl of noodles with chopsticks while driving.

18 posted on 08/06/2012 8:36:14 AM PDT by IMR 4350
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To: IMR 4350

Oh I’ve been here for a while, since 1989. Traffic isn’t new.

I lived in the Middle East for a while and 4 years in Alaska. Some traveling construction jobs sometimes. But looking at the want ads of Houston always brings me back.

But if you are an consulting engineer in the oil/gas business, this is the biggest market by far, not to mention best paying as a ratio of the cost of living here.


19 posted on 08/06/2012 8:46:44 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Awesome. We NEED new refineries.


20 posted on 08/06/2012 10:24:07 AM PDT by zeugma (Those of us who work for a living are outnumbered by those who vote for a living.)
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To: zeugma
We NEED new refineries.

Actually, we already refine more petroleum product than we use. The US refinery capacity exceeds the refined petroleum product demand.

U. S. Operable Crude Oil Distillation Capacity
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WOCLEUS2&f=4
17.23 million barrels per day (MMBPD)

U.S. Product Supplied of Finished Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTPUPUS2&f=M
16.54 MMBPD

Sometimes you will see a larger number used describe US petroleum use (18.71 MMBPD), this includes natural gas liquids and exceeds the refined portion.

Breakdown of US Petroleum Product Supplied
http://www.eia.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_m.htm

What we need most is an increase in our domestic oil production. We still import more crude oil than we produce ourselves.

US Crude Oil Production
http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_m.htm
6.27 MMBPD

U.S. Crude Oil Imports by Country of Origin
http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm
8.91 MMBPD

The decades of expanding and upgrading our existing refineries, combined with our reduced domestic demand, raised our refinery capacity above our demand a year or so ago. It is far cheaper to expand an existing refinery than build a new one. And it is far easier to get expansion permits than new ones.

21 posted on 08/06/2012 11:39:35 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
$186,327,000 million dollars

$186,327,000,000,000.00? That's a pretty big number. How does that compare to the country's GNP?

22 posted on 08/06/2012 6:07:55 PM PDT by PAR35
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To: PAR35

Good catch, looks like the million description does not belong.


23 posted on 08/07/2012 5:07:19 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Tell me about it, I lived in Houston in the early 80’s, and then moved to Alaska.

I know Longview fairly decently, I lived in Marshall just south of it for an oil drilling company in 1984, not a bad place to live, living there is dirt cheap. Wages suck though.


24 posted on 08/07/2012 5:20:35 AM PDT by Eye of Unk (Going mobile, posts will be brief. No spellcheck for the grammar nazis.)
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