Anchor Drilling, Shell Projects Need More Space
EAST LIVERPOOL, Ohio -- The Columbiana County Port Authority approved two leases Monday night that again illustrate the growing presence of the oil and gas industry in the tri-state region.
Anchor Drilling Fluids USA Inc., which opened a $2 million plant in November at the CCPA’s Wellsville Intermodal Facility, needs more land to store inbound storage tanks, says Tracy Drake, the port authority’s executive director. And Southern Automation Inc., a Louisiana material handling company that’s working with Shell at its Ergon refinery across the Ohio River in Newell, W.Va., needs space to store and set up equipment needed as part of Ergon Inc.’s planned $78 million expansion of its oil processing units and supporting infrastructure.
Anchor, based in Tulsa, Okla, produces drilling mud used by energy exploration companies active in the Utica and Marcellus shale plays. It will lease one additional acre adjacent to its site in Wellsville, paying $1,250 on a month-to-month basis starting in August. “This may be a longer deal,” Drake said, and could involve more acreage.
Southern Automation is leasing 13,000-square-feet at the CCPA’s Louthan Building on Harvey Avenue. The company will pay $3,250 per month through the end of the year. “They’re bringing truckloads from another plant, staging them there and then deciding the orderly manner to send them into the new facility in West Virginia,” Drake explained.
Both leases received unanimous approval from the board.
Not mentioned during the public session of the meeting was why the $3 million purchase of the Youngstown & Southern Railroad by Aqua Infrastructure LLC, a subsidiary of Aqua America Inc., appears to be delayed.
The port authority signed a letter of intent with Aqua Infrastucture in February that would give the subsidiary of the largest privately owned water utility in the United States ownership of all assets of the 36-mile short line that runs from Youngstown to Darlington, Pa. These include the title to all real property and all oil, gas and other mineral rights, the track, rail bed and ties and all rail equipment.
A June 30 deadline to finalize the sale agreement has passed. Drake said his board is “in discussions about additional extensions.” He declined to explain the delay, other than to say, “It’s a matter of operational issues.”
Drake spoke briefly to reporters before the board adjourned into executive session to discuss the status of the transaction. No action would be taken behind closed doors, he said.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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