American Refining Group is moving one step closer to building
its new hydrotreater.

In a series of legal notices appearing in The Era, the state
Department of Environmental Protection plans to issue a plan
approval to ARG for the development of the hydrotreater, which is
mandated by federal law and will give the refinery the ability to
provide ultra low sulfur diesel fuel.

The notice essentially opens up a 30-day public comment period
on the $20 million project, which is slated for completion by the
end of 2007.

“The advertising is really a pre-condition of the plan
approval,” DEP’s Community Relations Coordinator Freda Tarbell
said. “Once the 30 days is over, we’ll take one last look and make
our decision on whether to issue a plan approval.”

Refinery officials hosted a groundbreaking for the project on
Sept. 8. ARG officials said the hydrotreater will sit on a quarter
acre of land and be located in the main refinery off North Kendall
Avenue. Its construction also involves the demolition of an old,
medium-sized brick building which had been used as a boiler house
and can be seen from the nearby U.S. Route 219 Bradford bypass.

In addition to the ultra low sulfur diesel fuel, the unit will
also enhance the refinery’s lube base stock production, which are
components used to make finished motor oil.

Officials said the project is several years in the making and
will help establish the long-term viability of the refinery.

“We can’t really put any steel into the ground until we receive
the permits from DEP and EPA,” ARG President and Chief Operating
Officer Harvey Golubock said Thursday. “We hope to get those
permits by the end of November. Everything has been filed with the
DEP, and they submit it to the EPA.”

Golubock said the actual construction of the unit will likely
begin in December.

“We are finalizing designs and getting ready to place orders for
the major pieces of equipment that need lead time,” Golubock said.
“We still have an online target date to complete it by the fourth
quarter of 2007.”

During an interview with The Era in August, Golubock said most
refineries across the country needed to have the technology in
place by this past June, however, smaller refineries such as ARG
had more time to get one in place and meet the requirements.

Golubock said the hydrotreater will provide fuel for trucks that
are being built as of the 2007 model year, noting refineries are
required to have 80 percent of its diesel fuel as ultra low
sulfur.

The hydrotreater will actually be comprised of two reactors –
one for the diesel fuel and the other for the lube base stock
products.