A deal has been reached for the purchase of the Come By Chance Refinery which would see the facility become a recycler of diesel and aviation fuel.
The provincial government announced today it reached a new agreement with North Atlantic Refining to help facilitate Cresta Fund Management’s acquisition from Silverpeak of a majority interest in the operation.
The operation is expected to create at least 200 full-time, year-round jobs, which is about half the number of people employed at past peak operation of the refinery.
Premier Furey says some of the conversion work is already underway. He says there are over 400 full-time workers at the site right now.
(Come By Chance Refinery, courtesy North Atlantic Refining.)
A significant part of the deal is responsibility for environmental contamination on site, with the new owners taking responsibility for any required cleanups, but the province would reimburse the company for those costs.
However, officials noted that would only cover contamination identified going forward, with a full environmental cleanup only occurring if and when the refinery closes.
Meanwhile, It’s believed North Atlantic will still require the extra five cents a litre from the PUB to import fuel to the province, while continuing to store that fuel in tanks on site.
The deal itself also requires the new North Atlantic partnership to maintain those jobs levels, ensure fuel supply to the province and keep the refinery in operation.
The new 10-year environmental indemnity with the Provincial Government, which includes a cap on liability for the province which didn’t exist in the previous indemnity, will require the Come By Chance refinery site to:
- Maintain employment levels at no less than 200 full time employees (Each FTE is equal to 2,080 person hours) of paid work in a 12-month period);
- Maintain fuel supply to the island portion of Newfoundland and Labrador; and,
- Maintain operations of the refinery.
