The Port of Vancouver USA Board of Commissioners unanimously approved an amendment to the port’s lease with Vancouver Energy on Friday.
The amendment extends the Conditions Precedent Outside Date (CPOD) to March 31, 2017, with automatic three-month extensions after that date unless either party provides written notice of termination.
In a press release, the port explained that both parties must be satisfied by the CPOD that conditions such as permits to operate and environmental baseline work are met. If either party is not satisfied, the lease can be terminated. If no action is taken, the lease continues for another three months.
The amendment also:
- Increases the Contingency Period fee from $50,000 to $100,000 per month, starting May 1, 2016.
- Eliminates the opportunity for Vancouver Energy to operate a second petroleum-by-rail facility at the port.
- Provides Vancouver Energy 30 months to resolve any appeals if licenses, permits or approvals are granted and appealed.
- Allows the port to use the premises during the extended contingency period.
- Stipulates that oil moved through the facility must be “pipeline grade” and destined for domestic ports.
“I think we’ve ended up with a compromise that allows us to continue through the EFSEC (Washington state Energy Site Evaluation Council) process, but with some defined ending,” said Port Commissioner Brian Wolfe.
EFSEC began reviewing Vancouver Energy’s proposed oil export terminal in August 2013. A recommendation to Gov. Jay Inslee, who makes the final decision on the project, is expected late this year or early next year.
“We’re pleased to have received a unanimous decision by the port commission, which affirms the value of the Vancouver Energy project and demonstrates their continued commitment to the project, and to allowing EFSEC’s review to move forward,” said Vancouver Energy in a statement on Friday. “We plan to review the language of the lease amendment. We appreciate the thoughtful deliberation by the port commission today.”