Ratification of the "Operating Agreement" will allow the sale of HOVENSA to ABR. This in turn will preserve the current jobs at HOVENSA, preserve the current revenue the facility generates for the Territory, allow the opportunity for the refinery to restart, and allow the opportunity for an increase in jobs and revenue. Many small business owners on St. Croix can not survive another blow to the economy.

Please be aware of the importance of the Senators ratifying the "Operating Agreement" before HOVENSA runs out of cash - please see the points listed below. The unfortunate reality is that we are not prepared with alternate fuel sources, especially for the airport on St. Croix. This should be a time of rejoicing as we head into the Holidays and Christmas Carnival time. This should not be a time of worrying whether or not we'll be able to fly into or out of St. Croix, if we will be able to keep our businesses open, or if we will be able to remain on our beloved island.   

I ask all to consider these important facts:

1) The November 11, 2014 letter from George H.T. Dudley to the Honorable John P. de Jongh, Jr. and the Honorable Shawn-Micheal Malone states HOVENSA will begin the process of shutting down all operations when HOVENSA’s funds run out in the middle of December.

2) Page 108 of the Hess Corporation 2013 Annual SEC Report confirms the Members (Hess and PDVSA) do not anticipate providing any additional funding if an agreement to sell the refinery cannot be reached. (http://www.annualreports.com/Company/2453)

3) HOVENSA is no longer legally required to continue in the sales process. The “4th Amendment” of HOVENSA’s Concession Agreement with the Virgin Islands set the expiration date of the sales process as August 15, 2014 and that date was extended by agreement from both parties. Further extension can only occur with HOVENSA’s agreement and this is not expected to happen.

4) When HOVENSA runs out of funds they will not be able to maintain their Federal Operating Permits issued by the EPA. Because of the costs, uncertainties and time delays in obtaining Federal air permits, the chances of the facility ever operating again are greatly diminished once those permits are lost.

5) David Herr of Duff & Phelps testified at the Wednesday November 12, 2014 Committee of the Whole that if the sales process was to restart at this point it would be 3rd quarter next year before a new buyer was presented to the Legislature.

6) ABR has been vetted by Lazard, by Duff & Phelps and by Samsung. ABR complied with the sales process requirements and did so within the timeline outlined by the “4th Amendment” of the Concession Agreement.

7) Until recently, HOVENSA employed approximately 500 employees and contractors making them one of the largest employers in the Territory. We have yet to see the effect of a full shut down of the facility on our economy.

The buyer before us may not be the “Big Oil” buyer many of us hoped for, but ABR is a sound option for the Virgin Islands. At the Senate Hearings and during their radio interview, ABR has shown that they have a reasonable plan, are committed to hiring Virgin Islanders including former HOVENSA employees, and are committed to the restart of the refinery. ABR is a much better option than letting HOVENSA run out of cash and close its gates for good.