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April 30, 2007

Commissioners applaud Valero for expansion completion

By Ashley Sanders

The News staff writer



BEAUMONT — Valero Plant Manager Jim Gillingham said his Port Arthur refinery appreciates the “great partnership it has with Jefferson County.”

Valero recently concluded a 75,0000 barrel-per-day expansion project and invited local officials to their home on TX 87 to celebrate the momentous completion.

But concerns about the particular wording of an abatement agreement between Valero and the county had Gillingham appearing before Jefferson County Commissioners Monday afternoon.

Valero officials were concerned that a clause in the abatement agreement left the plant responsible for repaying taxes if the refinery’s expansion project closed. According to Precinct 2 Commissioner Mark Domingue, Jefferson County gave Valero a tax break of $16 million in order to attract the $1 billion expansion deal.

The agreement stated that if Valero’s expansion project closed because of a business decision, the refinery would pay 40 percent of the taxes that it would have paid.

Commissioners voted 5-0 Monday to approve an amendment to the abatement agreement that states that if the expansion project closes as part of a business decision, Valero will pay the appraised value of the unit or $250,000 a year for the remainder of the 18-year abatement, whichever is greater.

Commissioners said they applaud Valero for the completion of the expansion project— a project that gives the refinery the crude oil processing capacity of 325,000 barrels-per-day — and that they hope the plant will continue to grow.

“It’s a good time in Jefferson County,” Precinct 4 Commissioner Bo Alfred said. “I want to thank Valero for their diligent work on this project.”

Domingue said he appreciated Gillingham’s hard work, saying “Jim went overboard to communicate with the court.”

Precinct 3 Commissioner Waymon Hallmark added that he was “so proud to see this project in Jefferson County.” The Valero plant falls within the boundaries of Hallmark’s precinct.

County Judge Ron Walker told Gillingham that it was “a pleasure working with [him] and all of your people.”

“This is a good thing for Valero and the people of Jefferson County,” Walker added.















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