March 2, 2012:

Two of the three Philadelphia area oil refineries can be saved, according to a statement given by a top Pennsylvania cabinet member Monday during an annual budget hearing. “I am confident that there’s a high likelihood that we can save two of the three refineries,” said C. Alan Walker, secretary of the Pennsylvania Department of Community and Economic Development. “I believe that we will be able to keep operating two of the three refineries.”

Walker was testifying before the state House Appropriations Committee and was questioned about the refinery process by committee chairman, state Rep. William Adolph, R-165, of Springfield. “That’s the best news that I’ve heard in six months,” Adolph said. “Two out of the three is pretty darn good considering there has not been a new oil refinery constructed in the United States of America in over 60 years. Trying to get refineries to relocate here in Pennsylvania is fantastic news for that community and for the entire Northeast.”According to Bloomberg reports, New York billionaire John Catsimatidis, who owns Warren, Pa.-based United Refining Co., may be interested in buying Sunoco Inc.’s Philadelphia refinery.

No governmental official would identify which refineries Walker said would operate. ConocoPhillips idled the Trainer facility in September and laid off about 700 employees in January. Sunoco Inc. is in the process of shutting its Marcus Hook refinery, having idled it in December and planned to whittle its 590 work force to 100 until Dec. 1, when it was anticipated that the number would be reduced to 60. The company also announced its plans to close the Philadelphia refinery by late July if a new owner for the facility wasn’t found. That move would be expected to affect about 900 employees. Steven Kratz, of the Pennsylvania Department of Community and Economic Development, emphasized the state does not own the properties, but said the secretary believed there was reason for hope.

“He’s cautiously optimistic that we can save two of the three,” Kratz said, adding that this sense arose from recent developments over the last several weeks. “There’s been regular conversations with companies. There has been some interest. Some companies have expressed interest.” However, Kratz declined to elaborate on whether the properties would operate as refineries, which sites were included and how many jobs would be involved. “It’s out of our control unfortunately,” he said, citing the confidentiality agreements. Kratz added that state-level officials meet on a weekly basis to address the refinery closure situation.

“We’re really evaluating things from all angles,” he said, adding that they want to be prepared for anything.” Adolph said he was shocked by Walker’s comment. “It was unbelievable,” the state representative said. “I had to ask him twice. There’s a lot of work going on behind the scenes, but I didn’t know that it was this close.” Adolph said his committee met with the state Department of Labor and Industry and discussed what measures were being taken to help the impacted refinery workers just prior to the hearing with Walker. Earlier in the day, Delaware county Councilwoman Colleen Morrone was on her way to a job fair at the Ramada Inn in Tinicum sponsored by the county Office of Employment and Training for refinery workers featuring the Aker Philadelphia Shipyard and Rhoads Industries when she learned of these developments. “I think that’s great news,” she said.

United Steelworkers Union Local 10-1 President Jim Savage represents about 600 of the 900 employees at Sunoco’s Philadelphia refinery. “Local 10-1 stands ready to negotiate a fair agreement with any potential buyer to keep the facility operating and the jobs in place,” he said.

By Daily Local News