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Refinery moves one step closer

BY JOYCE LOBECK
January 9, 2007

Decision to be made by bureau on land acquisition

The acquisition of the land needed for a proposed oil refinery in eastern Yuma County has moved a critical step closer to reality.

The U.S. Bureau of Reclamation has released a final environmental impact statement that describes the potential effects of a proposed title transfer of land and facilities to the Wellton-Mohawk Irrigation and Drainage District. Completion of the statement clears the way for a decision to be made by the bureau.

The proposed transfer involves approximately 40,000 acres, one of the larger such land transfers in the agency’s history, said Joe Liebhauser, WMIDD transfer project manager.

The bulk of it, about 28,197 acres, is land in the irrigation project for which WMIDD has reimbursed the bureau. The district also is seeking ownership of an additional 19,429 acres for which it would pay fair market value, Liebhauser said. A portion of that land is being sought for the refinery.

A record of decision is to be issued by the USBR Lower Colorado Regional Office in early February outlining what action is to be taken. That action could be approval of all, a portion of, or none of the proposed transfer, Liebhauser said. However, the transfer is the "preferred alternative."

"It’s a relief to have gotten to this point," said Charles Slocum, WMIDD manager. "Hopefully, it will lead to a quick decision and transfer of title."

The district’s intent, Slocum said, is to purchase the land in phases. The first phase would include about 6,500 acres. Of that, the district has agreed to sell 1,450 acres to Arizona Clean Fuels to develop the proposed refinery.

"Once the transfer is completed, we can purchase the property," said Glenn McGinnis, chief executive officer of Phoenix-based Arizona Clean Fuels. "We have an agreement with the district and we have the funding available to buy it."

And once that happens, he said, Arizona Clean Fuels can apply to Yuma County for rezoning of the property to heavy industrial. That process could take about six months, he added.

The Yuma County 2010 Comprehensive Plan already has been amended to designate industrial use of the property, McGinnis said.

While proceeding with the rezoning request, Arizona Clean Fuels also will be working on the design, engineering and survey work for the proposed refinery in preparation for applying for building permits, McGinnis said.

Liebhauser said the intent of the transfer is to relieve the bureau of the liability and responsibility of the project that can be managed locally.

Copies of the EIS are available from Christa Monaco, Bureau of Reclamation, Lower Colorado Regional Office, P.O. Box 61470, Boulder City, NV 89006; telephone 1-702-293-8560; or e-mail cmonaco@lc.usbr.gov. The EIS also is available online at www.usbr.gov/lc.

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