$2 billion expansion of St. Louis-area refinery approved

ROXANA, Ill. -- It's celebration time for backers of a long-delayed, $2 billion refinery expansion in the Metro East.

Ebullient community leaders on Thursday heralded a decision by federal environmental regulators this week to sign off on a final permit for the project at the ConocoPhillips refinery in Roxana, saying the economic benefits could be enormous.

The project is expected to draw at least 1,500 construction workers from across the country -- roughly equal to the riverside village's current population. It'll also add up to 100 permanent jobs to the 800 now at the refinery, officials said.

"It's the best thing that's happened to our community in a long, long time," Mayor Felix Floyd said by telephone from Roxana, about 20 miles northeast of St. Louis. "It's great -- outstanding."

The influx of workers should be a boon to the tiny community, he said, improving business at stores in the village and in surrounding communities. Among the beneficiaries should be the community's sole restaurant, the Dee-Lux Diner.

The entire permit process took more than two years, delaying the planned 2007 start date and raising the prospect that it might not happen at all, Floyd said.

"We realized some people would object; obviously we have to look out for the environment," he said. "Now, as long as the Environmental Protection Agency approves everything's right, we know it'll be OK."

The mayor expected the expansion work to being soon and take about two years. When it's completed, the refinery will boost capacity by about 60,000 barrels of crude oil a day, to about 300,000 barrels.

The project is being undertaken jointly by Houston-based ConocoPhillips and Canada-based EnCana Corp. as part of plans to expand EnCana's oil production from the oil sands in Alberta and process the oil at refineries in Roxana and Borger, Texas.

An agreement announced between ConocoPhillips and environmental groups regarding pollution control made the approval possible. The deal should lead to around a 500-ton-per-year reduction of pollutant emissions, according to one of the environmental groups involved, the Natural Resources Defense Council.

Among the company's commitments was to pay $3.4 million toward various green projects in the community, including school energy efficiency and greenhouse gas reduction programs, according to the NRDC.

"This is not just a huge win for the communities in Metro East and St. Louis -- it is a win for anyone living near a refinery across the country and cements what should be the national standard for refinery pollution controls," said Ann Alexander, a NRDC attorney.