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Hyperion Wants Vote On Refinery
December 3, 2007

Press & Dakotan

SIOUX FALLS - On Tuesday, Hyperion Resources of Dallas plans to give the Union County Commission a rezoning request, which, if approved, could lead to a countywide referendum on the company's proposed $8 billion to $10 billion oil refinery.

"In the spirit of our corporate dedication to transparency, we think it is only responsible for us to encourage the residents of the county to make this decision," Preston Phillips of Hyperion said in a release.

It could be one in a number of referendums on the project, according to Jason Quam, a Hyperion opponent who lives near the proposed site north of Elk Point.

Hyperion has plans for a 400,000-barrel-per-day refinery that could mean jobs for 1,800 people as early as 2013.

Hyperion is confident a referendum would favor the refinery, said Phillips.

He added that Hyperion would look for another site if an election doesn't swing its way. The company has said it has other sites in mind but has refused to say where they are.

"With the depth of support in the community for the project, we believe the Energy Center will fare well in a referendum," Phillips said. "However, if the majority of voters in Union County do not want us here, then we will surely find a home where we are welcome."

The announcement shows Hyperion apparently is willing to move forward openly, said Doyle Karpen, Union County Commission chairman.

"If they want a referendum, it's part of the process set in place by South Dakota law," he said. "It seems they are trying to be proactive. It looks like they are trying to be open about it."

Isabel Trobaugh, mayor of Elk Point, said opponents probably will push for a referendum.

"I'm sure there will be a petition brought by people who don't want it," she said, adding that Hyperion's decision to seek a referendum is good.

"People out there are requesting information," she said.

The city council has unanimously passed a resolution supporting the refinery.

Quam said one or more referrals likely will happen. "One more referral at the end of the day will be welcome," he said. "This, after all, is democracy in action."

Hyperion is looking out for itself by announcing the action, he said. "They obviously think that this is what they need to say to keep people happy."