More pipe­lines to coast planned

Sys­tems reach­ing as far as North Dakota would move crude from shale fields

San Antonio Express-News - - BUSINESS - By Jordan Blum and Rye Druzin

With a record amount of crude flow­ing from the na­tion’s shale fields, pipe­line com­pa­nies are con­tin­u­ing their wave of in­vest­ments to move oil from those plays to re­fin­ing and ex­port hubs along the Texas Gulf Coast.

Hous­ton re­finer Phillips 66 said Fri­day that it is plan­ning two oil pipe­line sys­tems that would stretch from North Dakota and Ok­la­homa to the coast. Also, two pipe­line and stor­age com­pa­nies are ex­plor­ing build­ing a crude and con­den­sate pipe­line from Cush­ing, Okla., to Hous­ton.

Phillips 66 said its pro­posed Lib­erty Pipe­line would stretch from the Bakken for­ma­tion and the Rock­ies to Cor­pus Christi, pre­sum­ably to take oil from North Dakota, Wy­oming and Mon­tana to re­fin­ing and ex­port hubs along the coast.

The project, which would ship 350,000 bar­rels of a crude a day, is ten­ta­tively slated for com­ple­tion by the end of 2020. It would be built in a part­ner­ship with Wy-

think, for a cou­ple of dif­fer­ent rea­sons,” County Judge Nel­son Wolff said. “One, it’s on the South Side of San An­to­nio. And, sec­ond, this brings an in­ter­na­tional com­pany to es­tab­lish their na­tional head­quar­ters right here in San An­to­nio. That’s a pretty big deal.”

Land at Brooks is al­ready tax-ex­empt. But the com­mis­sion­ers unan­i­mously ap­proved ex­empt­ing Okin’s per­sonal prop­erty and equip­ment from taxes at

their Fri­day meet­ing, an abate­ment with an es­ti­mated value of about $238,000.

The county has also ap­proved of­fer­ing Okin a grant of up to $300,000 based on the com­pany cre­at­ing 100 new jobs pay­ing at least $50,000 an­nu­ally.

Fri­day’s vote al­lowed county of­fi­cials to ne­go­ti­ate the in­cen­tive pack­age with Okin. Com­mis­sion­ers are ex­pected to give fi­nal ap­proval to the in­cen­tives at a later date.

Okin, which pro­vides busi­ness pro­cess­ing ser­vices, em­ploys 1,350 work­ers across the globe. The San

An­to­nio head­quar­ters would more than dou­ble its work­force, ac­cord­ing to fig­ures pro­vided by the county.

Of the 1,400 San An­to­nio po­si­tions, 800 will pay more than $50,000 right out of the gate. Start­ing pay for about 380 po­si­tions will be above $70,000.

City and state of­fi­cials also plan to kick in tax in­cen­tives to fund the head­quar­ters. The state will grant $6.6 mil­lion from the deal­clos­ing Texas En­ter­prise Fund to the project.

San An­to­nio of­fi­cials have said they ex­pect to give a grant to Okin and ex­empt its per­sonal prop­erty and equip­ment from taxes. The city also plans to nom­i­nate it as a Texas En­ter­prise Zone Pro­gram, giv­ing it ac­cess to state in­cen­tive funds worth $1.25 mil­lion over a five-year pe­riod.

Brooks will ren­o­vate two build­ings for tem­po­rary use as Okin’s of­fice space, fi­nanced by the Brooks Tax In­cre­ment Rein­vest­ment Zone, be­fore the com­pany es­tab­lishes a per­ma­nent pres­ence at Brooks.

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