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Superior refinery keeps focus on expansion in wake of Murphy Oil sale announcement
News Articles | Duluth News Tribute | Shelley Nelson | August 02, 2010
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It’s been business as usual at the Murphy Oil refinery in Superior since the company announced it was putting its refineries up for sale.
Expansion plans at the refinery are still on track despite the announcement July 22 that the company plans to sell its refining operations in Superior, Mereaux, La., and Milford Haven, Wales, to focus on exploration and retail sales.
“Nothing has really changed out here,” said Dave Podratz, Superior refinery manager.
However, the announcement that Murphy Oil’s board of directors approved the sale of refining operations took local officials and refinery employees by surprise late Thursday. Murphy Oil’s first indication of the plan came by e-mail the night before Chief Executive Officer David Wood held a telephone news conference to discuss the sale.
The local refinery is planning a $10 million expansion of its rail loading facilities. The plan would add 17 sites to load refined asphalt and gasoline for rail delivery to customers and bring in crude by train from North Dakota wells not served by pipelines, Podratz said.
In anticipation of wetland mitigation for the project that would fill about 10 acres adjacent to the refinery, local company officials appeared before the city’s Planning Commission recently and received preliminary approval to vacate streets and alleys between 52nd and 56th streets from Catlin to Weeks avenues. The streets and alleys don’t exist but are platted, and could complicate setting aside land for conservation, Podratz said. He said Murphy Oil purchased the Kimmes property north of 58th Street once considered for housing development.
The U.S. Army Corps of Engineers hasn’t approved the mitigation plan and the company is still working with the Wisconsin Department of Natural Resources to get the necessary permits, with a goal of beginning construction this year, Podratz said.
That would expand on about $100 million in upgrades to the facility over the last few years, said Mayor Dave Ross.
Last year, Murphy Oil invested $50 million to ensure the refinery could meet environmental standards for fuel by reducing sulfur content in diesel and benzene in gasoline.
After the board of directors’ announcement, local officials were quick to form a working group to monitor the sale and assist a new owner if needed.
State Rep. Nick Milroy, D-South Range, said he has also spoken with the Wisconsin Department of Commerce, which will provide whatever assistance it can to maintain the local refinery, an important part of the regional and state economy.
Murphy Oil employs about 156 people at its Superior refinery and contributes about $100 million in salaries and services to the local economy, Podratz said.
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