Business

EPA Red Tape Represents Major Obstacle for Potential Purchase and Restart of Limetree Bay Refinery

Potential buyers of the oil refinery on the south shore of St. Croix expressed pessimism regarding the possible restart during an impromptu court status conference Monday morning, with the main issue being concern over the Environmental Protection Agency's permitting process. "I am sure that any going concern bidder would have to say, 'well why would I put a DIP [debtor-in-possession financing] if I only know that I'm going to have that roadblock and the value that I'm going to get is going to ultimately be liquidation value if I can't meet that hurdle," said Gregg Galardi, St. Croix Energy LLLP counsel, referring to the EPA's permitting for restart of oil refining at Limetree Bay. "And there's nothing wrong with the EPA's position as we all understand, but it does take a lot of work to deal with the permits." EPA attorney Rick Kincheloe said the EPA was unwilling to deviate from the methodology that it has applied to such matters. "There's a lot of things that have to go in notice a...