Flint Hills Resources Alaska, LLC (FHRA) announced today that it would cease crude oil processing at its North Pole refinery in the next few months. The extraction unit at the refinery will be shut down on May 1, 2014, ending gasoline production. Crude unit #2 will shut down shortly thereafter, depending on operational requirements, but no later than June 1, 2014. The closure of crude unit #2 will end production of jet fuel and all other refined products. The company will continue to market fuels through its terminals in Anchorage and Fairbanks. The supply for those terminals will come from another source.
Mike Brose, the Vice President of FHRA and the refinery manager stated “this has been a difficult decision made after a long, thorough and deliberative process. Our company has spent an enormous amount of money and resources addressing soil and groundwater contamination that was caused when Williams owned the refinery and the State of Alaska owned the land underneath it. So far, neither Williams nor the State of Alaska have accepted any responsibility for the cleanup. With the already extremely difficult refining market conditions, the added burden of excessive costs and uncertainties over future cleanup responsibilities make continued refining operations impossible.”