June 23, 2012:

ConocoPhillips through Phillips66 finalized the sale of the 185,000-barrel-per-day Trainer refinery to a Delta Air Lines subsidiary today, ending a nine-month saga that saw hundreds lose and then return to their jobs. Delta officials plan to operate the facility under its subsidiary, Monroe Energy LLC, and employees are expected to return to the refinery Monday. “We have a team of refining experts and proven leaders effectively implementing our strategy at the Trainer refinery,” Jeffrey Warmann, chief executive officer and president of Monroe Energy LLC, said. “We are eager to start the work before us and (are) humbled by this opportunity to make a difference in this community.” Delta officials said Monroe will start a turnaround at the facility after July 4 with the fall as a target for resuming fuel production. Delta senior manager Eric Torbenson said the company will employ about 400 workers at the facility. “Monroe would like to thank the Commonwealth of Pennsylvania, Delaware County and the Pennsylvania Federal Delegation for their support in helping make this project a success,” he said.

Last month, Delta and ConocoPhillips representatives announced the two companies had reached an agreement that would allow Delta to purchase the refinery for $180 million, $30 million of which would come from the state. Delta was considering purchasing a refinery to manufacture jet fuel, on which the company spent $12 billion last year alone. Through buying this facility, Delta officials expect to reap about 80 percent of their domestic jet fuel needs. On Thursday, the Pennsylvania Public Utility Commission unanimously approved the application to transfer pipeline and transportation assets from ConocoPhillips to Monroe, allowing for jet fuel to be moved from the Delaware County refinery to Philadelphia International Airport, as well as LaGuardia and JFK International airports in New York.

Last week, Delaware County Council directed the county Redevelopment Authority to divert $1 million in gaming revenue to Monroe to invest in pipeline improvement with the caveat that Monroe invest $218 million in the site while also employing a minimum of 402 permanent jobs and more than 600 construction jobs. In September, ConocoPhillips idled the 400-employee Trainer refinery, citing market pressure on the East Coast, product imports, weakness in demand and regulatory requirements. Most of the workers were terminated in January. In December, Sunoco Inc. idled the Marcus Hook refinery and most of the 600 employees there were eliminated in February.  Sunoco officials also announced in September that the 900-employee Philadelphia refinery would close this summer if a new owner for the facility wasn’t found. Last month, those officials extended the deadline after designating The Carlyle Group as the exclusive bidder for the facility. That process is ongoing.

After the fall announcements were made, members of the United Steelworkers Union campaigned in Harrisburg and Washington, educating elected officials of their plight. In turn, U.S. Rep. Patrick Meehan, R-7, of Upper Darby, held a field hearing of the U.S. House Homeland Security Subcommittee on Counterterrorism and Intelligence in March, and U.S. Sen. Robert Casey, D-Pa., held a hearing of the U.S. Congressional Joint Economic Committee in April to determine the impacts of these refinery closures both regionally and nationally.

By Daily Times