OBERLIN — The Allen Parish Police Jury has approved a lease for the development and operation of a proposed $100 million refinery at a former chemical plant site just west of Oakdale.
Police jurors agreed Monday to lease 67 acres of commercial property at the old Arizona Chemical plant site to Virtual Engineering Operations of Kingwood, Texas, for a 20,000- to 40,000-barrels-a-day refinery.
The American Press reports (http://bit.ly/qjfACs ) the lease is for 49 years at a cost of $100 per acre for five years, then $1,000 per acre for the remainder of the lease.
Under the agreement, the company must maintain 35 permanent jobs.
"This will be a boost to the economy of Allen Parish immensely," District Attorney Todd Nesom. "People are already looking for jobs."
There will be about 200 construction jobs available for the initial phase of the project, according to VEOPS President J. Craig Harrington. An additional 140 jobs could be created from spinoff businesses and future construction, he said.
The company has half of its finances in place and is working to ensure the second half, Nesom said.
The refinery will process 20,000 barrels a day of crude to produce diesel fuel for farmers, jet fuel and heating oil.
Construction is expected to begin by July and should be completed within 18 months, Harrington said.
VEOPS plans to seek tax incentives from the state, including industrial tax exemptions and enterprise zone funding for the project.
It will also demolish existing structures onsite, including offices, labs, warehouses, foundations and rail lines to develop the refinery.
Arizona Chemical, a wood chemical manufacturing facility, closed in 2001. The property was later given to the Police Jury for economic development.
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