Big Story Follow UP

ExxonMobil official says no lay offs at Billings Refinery

Posted: Jul 13, 2011 7:47 PM by Jay Kohn - Q2 News
Updated: Jul 13, 2011 8:22 PM

(Washington, D.C.) - A top official with ExxonMobil says the company has no plans to lay off anyone at its Billings Refinery in the foreseeable future.

That word late Wednesday from Sherman J. Glass Jr, President of ExxonMobil Refining and Supply Company. Glass was responding to Montana U.S. Senator Max Baucus, who asked ExxonMobil officials this week for a commitment that the company would not lay off any workers due to the Silvertip Pipeline rupture July 1, that caused oil to leak into the Yellowstone River. Sen. Baucus had called on the company to ensure that refinery workers do not suffer because the plant is now forced to operate at limited capacity.

"We have no plans to lay off anyone at our Billings Refinery in the foreseeable future," wrote Glass. "We are continuing to work diligently to identify all available crude supplies to enable us to continue operating the refinery," Glass said.

In the letter to Baucus, Glass said ExxonMobil's Billings Refinery is currently running at reducted rates, and inventories are low.

"In the event that we cannot source enough feedstock to keep all units running, we will take a controllable downtime on some units and advance planned maintenance to enable us to sustain employment of both employees and contractors in the short term," Glass wrote.

In response, Senator Baucus said it's important to make sure families continue to get the paychecks they rely on to pay the bills and make ends meet as the cleanup of the oil spill continues.

"ExxonMobil is an important member of the Billings and Lockwood communities and its commitment to the workers and families who live there is important both for our recovery and our long-term economic growth."

Baucus has also directed ExxonMobil to develop a quick and effective claims process to ensure Montanans impacted by the spill have swift recourse for repayment. He also has launched an inquiry into the history of the pipeline that ruptured, asking both Exxon and the Pipeline Safety Administration to answer specific questions and provide all relevant documents related to the pipeline.

In Glass' letter to Baucus, he acknowledges that due to the region's infrastructure, the Silvertip pipline is critical to ensuring crude supply to the Billings Refinery.

"Expediting the restoration and restart of the pipeline is key to ensuring ongoing refinery operations. The viability of the refinery depends on our ability to secure adequate crude supplies," said Glass.

As for the company's plans to repair and restart the pipeline, Glass says ExxonMobil has aquired the needed material and contractor support. This work, he says, includes discussions regarding state and federal permit requirements, and will be carried out in consultation with the Department of Transportation, and the Pipeline and Hazardous Materials Safety Administration which has issued a Corrective Action Order outlining requirements to restart the pipeline.

Glass says a critical component of that Corrective Action Order requires horizontal directional drilling to bypass and replace the damaged pipeline at the site of the river crossing.

"Horizontal directional drilling will enable the pipeline at the site of the river crossing to be as much as 30 feet below the river bottom, and add up to 2,000 feet of new pipeline along the existing pipeline right-of-way," wrote Glass. "The existing pipeline under the river will be undisturbed by this process."

Glass also says the repair and restart of the Silvertip Pipeline will not impact the investigation of the cause of the July 1 incident, which is also required under the Corrective Action Order.

"We will take the steps prescribed in our permits to minimize any neighborhood or business impacts created by this necessary work," said Glass.

If you would like to read the letter, click on the link below.
(Right-click, save as)
Exxon Letter.pdf