Port of Vancouver Commissioners approve lease for oil transfer f - KPTV - FOX 12

Port of Vancouver Commissioners approve lease for oil transfer facility

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Location of the proposed oil transfer facility. (KPTV) Location of the proposed oil transfer facility. (KPTV)

The Port of Vancouver USA Board of Commissioners unanimously approved an amendment to the port's lease with Vancouver Energy on Friday.

Vancouver Energy is the proposed oil transfer facility at the port. Oil company Tesoro Savage proposed the facility and hopes to create a terminal that would bring North American crude oil in, then bring on ships and deliver it to West Coast refineries.

A public meeting was held on Tuesday where people spoke for and against the oil transfer facility and on Friday, the Board of Commissioners approved an amendment to extend the port's lease with Vancouver Energy.

The approved amendment extends the Conditions Precedent Outside Date (CPOD) to March 31, 2017, with automatic three-month extensions after that date. 

Port of Vancouver said the "CPOD is the date by which both parties must be satisfied that conditions such as permits to operate and environmental baseline work are met. If either party is not satisfied that these conditions are met on or before March 31, 2017, the lease can be terminated. If no action is taken, the lease continues for another three months."

The amendment also:

  • Increases the Contingency Period fee from $50,000 to $100,000 per month, starting May 1, 2016.
  • Eliminates the opportunity for Vancouver Energy to operate a second petroleum-by-rail facility at the port.
  • Provides Vancouver Energy 30 months to resolve any appeals if licenses, permits or approvals are granted and appealed.
  • Allows the port to use the premises during the extended contingency period.
  • Stipulates that oil moved through the facility must be "pipeline grade" and destined for domestic ports.

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