REG explains why they are not continuing crude by rail plans

The heard from Scott Hedderich, Director of Corporate Affairs at Renewable Energy Group(REG), on Monday night following their announcement to no longer pursue crude oil storage at this time.

Imperium Renewables, which was purchased by REG in 2015, had originally issued plans to move forward with a crude oil storage facility in Hoquiam. Last week, the company issued a press release stating they would not be including crude as a part of their current planned expansion.

The Iowa-based company told local and state regulators at that time that they want to expand capacity to handle bulk liquids, but crude oil won’t be in the mix.

“While oil might be something we get into down the road, whether a big oil company buys us or we think that it’s the right move, it certainly isn’t the right move now.”

Currently the company does plan to move forward with their expansion, but will look at amending their current Environmental Impact Statement to shift their plans to another liquid storage. No matter their decision, Hedderich says that the public will remain informed.

“At the end of the day, we don’t want to be in the position where; 3 years down the road, 5 years down the road, if the economics change, if the kinds of products we’re looking at change and we come back and say we want to do something different there’s going to be a bit of a bait and switch feeling. We don’t want to do that.”

We have their letter stating their change in plans at the link below.

http://www.kxro.com/wp-content/uploads/2016/01/REG-DEIS-Comment-letter.pdf

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