March 1, 1997, is a date etched in Bradford’s history.

Exactly 10 years ago today, officials with American Refining
Group formally agreed to take over the operations of the historic
Bradford refinery.

The move caused a collective sigh of relief across the Tuna
Valley, which faced the very real possibility of the loss of
hundreds of jobs and a potential disastrous domino effect for the
local economy following Witco Corp.’s decision to divest itself of
its lubricants group. Later, the Kendall and Amalie trademarks were
sold to Sun Oil Co. The now 125-year-old refinery was not part of
Sun’s plans.

“Everybody pulled together,” ARG President and Chief Operating
Officer Harvey Golubock said. “There was grave concern at that time
over the refinery’s closure. The community leaders were extremely
concerned about that and the loss of so many good-paying jobs, as
well as the economic forces this refinery fostered through the
purchases of crude oil and the ripple effect back into the
community.”

Now, ARG has established itself as an “economic driver” for the
valley – a more than $100 million a year enterprise that has become
a complete finished lubricants business.

“The community was very helpful when we (ARG) came here 10 years
ago,” Golubock said, adding officials from the state and local
government assisted ARG in the acquisition of loans and small
grants.

“At that time, they (loans and grants) were very, very helpful,”
Golubock said.

The first three years of ownership were not easy, however, as
the company had to form its own identity and brand. It was also
helped by events out of its control – including the closure of
Pennzoil’s Venango County refinery.

Employees also had to be willing to tighten their belts, taking
pay cuts of between 5 and 15 percent.

“The first few years were rocky,” Golubock said. “We had to
re-estalish ourselves as credible producers in the business. Most
of the competition said we would be out of business within six
months.”

That didn’t include owner Harry Halloran, who believed in
Bradford and the refinery’s workers. So much so that Halloran cut
his own pay by 60 percent to help make ends meet. As soon as the
refinery began to turn the corner financially – even before it
crossed over into profitability – ARG raised wages and gave bonuses
back to its workers.

The workforce has since increased from 157 people in 1997 to
well over 275 workers currently associated with the refinery,
according to Golubock.

“We had very little in the way of credit,” Golubock said. “It
was hard to purchase materials. Cash flow was extremely tight, so
much so that we had to rely heavily on the local producers to allow
us longer periods of payment. Frankly, if not for them being
willing to extend that credit, we probably wouldn’t have survived.
They were instrumental in helping us make it over a difficult
period.”

Now, the refinery is gaining from the continued hike in oil and
gas drilling across the region.

“We’ve come pretty far from those early days,” Golubock said.
“Last year was an exceptionally good year for us. We are processing
more crude oil now then we ever have.”

The refinery is home to a full-line of lubricants that were
developed locally and touts more than 70 Brad Penn distributors.
Among the most recognizable private labels ARG handles are Gulf,
Valvoline and Castrol.

ARG also has numerous affiliated businesses under its umbrella
and will soon embark on a $20 million hydrotreater project, which
will give the refinery the ability to provide ultra low sulfur
diesel fuel.

McKean County Director of Economic Development Ray McMahon, a
member of the local team that worked to bring ARG to Bradford, said
“from A to Z, things have been pretty good since then (with the
refinery since 1997).”

McMahon said 1997 was a good year in general for the Tuna
Valley: in addition to ARG taking over the refinery, Keystone
Powdered Metal Co. decided to call Lewis Run home.

“Hopefully, we’ll have a few other years as productive as 1997,”
McMahon said.

Meanwhile, former state Rep. Ken Jadlowiec, R-Bradford,
remembers the working relationship between those on the ground
locally and on the state level.

“Everybody worked together (to get something done),” Jadlowiec
said. “It was a long six-to-eight month process. We were going back
and forth to Harrisburg on a weekly basis to secure funding to keep
the refinery here.

“They’ve (ARG) done everything they said they were going to do.
It seems as though they have been very successful, wages have gone
up and they brought back any employees that were laid off.”

With the past firmly behind them, ARG officials are now looking
toward the future – which will likely include bioenergy.

“We are looking at the development of a bioenergy strategy to
incorporate biofuels in our business,” Golubock said, adding the
company is working with the University of Pittsburgh at Bradford to
develop a plan to deal with the impending changes. One goal of the
strategy is to ensure there are sufficient people trained to take
on any new responsibilities associated with the new technology.

“We never stay still,” Golubock said. “If you stay still, you
are falling behind.”

Golubock said there will be a much smaller celebration for the
refinery’s employees today compared to the lavish extravaganza
marking the 125th anniversary of the refinery last year.

“It will be more of a personal thing for our employees to let
them know we recognize and appreciate their efforts,” Golubock
said.