Port Commission approves lease with Tesoro Savage
VANCOUVER, Wash. –The Port of Vancouver USA announced today that its Board of Commissioners unanimously approved a 10-year lease with the Tesoro Savage Petroleum Terminal (TSPT) for a crude oil handling facility at the port.
The lease approved during today’s meeting was the same document that was approved by the commission on July 23, 2013. A new vote was placed on the October 22 agenda in light of concerns brought to the port’s attention about procedures used during a July 22 workshop leading up to the prior vote. The concerns raised were focused on the port’s use of executive session during the workshop.
“We are confident that our use of executive session was appropriate,” said Todd Coleman, CEO for the Port of Vancouver. “However, because concerns were raised, the port presented the lease to the commissioners during today’s meeting for a new vote; and after more than two hours of public comment and more than a half hour of deliberation, the commissioners voted to approve the lease.”
The project, proposed by the port’s longtime tenant Tesoro in partnership with the logistics company Savage, will bring North American crude oil to the port by rail where it will then be transferred to marine vessels for transport to refineries along the West Coast.
Approximately 42 acres of port property will be leased by TSPT to accommodate a rail unloading facility, storage tanks, and a vessel loading area. The estimated capital investment by TSPT is $100 million, and revenue to the port over the 10-year lease period is expected to exceed $45 million. The facility also is expected to create between 80 and 120 permanent jobs and 250 temporary construction jobs.
With the October 22 lease approval, the project will continue to move through the environmental permitting process. Washington State’s Energy Facility Site Evaluation Council is acting as the lead agency for local and state permits, and the companies will work through an extensive process, addressing local, state and federal requirements. As with all port tenants, TSPT is required to obtain all necessary permits as a condition of operation at the port.
In addition to board meetings on July 23 and October 22, during which there was both public comment and board deliberation on the subject, approval of the lease follows a series of five commission workshops held over a ten-week period in May, June and July of this year, providing both general information on issues related to crude oil as well as information specific to the TSPT proposal. Topics included marine safety, rail safety, the permitting process, an overview of the TSPT project, and a discussion of overarching elements covered under the TSPT lease. Taped coverage of the workshops can be viewed at www.cvtv.org, or click for summaries of the workshops, copies of presentations and links to the CVTV coverage.
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The Port of Vancouver USA is one of the major ports on the Pacific Coast, and its competitive strengths include available land, versatile cargo handling capabilities, vast transportation networks, a dependable labor force and an exceptional level of service to its customers and community. For more information, please visit us at www.portvanusa.com.