Home › Forums › Refining Community › Refinery News › Penzoil-Quaker State Agree Clean up Clendenin Site – Cautionary tale Refinery to Terminal sales › RE: Penzoil-Quaker State Agree Clean up Clendenin Site – Cautionary tale Refinery to Terminal sales
Here is update on W. Va Clendenin site cleanup – Even though it was sold more that 20 years ago to Lumber Co for Wood Chipping site, responsibility cleanup followed the trail of Elk Refinery ownership for responsibility. When Penzoil (merger of Zapata Oil, South Penn & Midland Stetco Petroleum) was formed in 1960’s three of its early acquisitions were Wolf’s Head Oil, Elk Refining Co & Refining Company. As article indicates Elk Refinery was closed /sold off to Hannah Lumber in 1983.
Normally converting a refinery to terminal is way to close the plant and not have to absorb the huge cleanup cost on top of the write-off of plant assets. But it is only temporary fix and if the company does not undertake the cleanup or have professional group like Koch Carbons do restoration – whenever an environmental issue is exposed the cost and fines follow the ownership trail back to Oil companies in that chain.
And often the refinery clean up fines and cost are many times what they would have been at the time of closure/terminal conversion.
So the East Coast, West Coast & Midcontinent US Refineries becoming terminals or closing would be wise to review examples like Elk Refining.