The plant will have emissions so low it won’t require an EPA permit – Meridian Energy Group, Inc.

Davis Refinery

Bakken: Davis Refinery Update

  • 49,500 bpd state-of-the-art crude oil refinery, over 700 acres of land near Belfield, N.D.
  • The Burlington Northern Santa Fe rail line runs directly through the refinery site, facilitating the construction of a crude oil feedstock offloading and refined fuels uploading terminal
  • Meridian is finalizing plans for an early 2018 groundbreaking

Currently, more than 1.2 million barrels of oil are being produced in the Bakken every day, but more than 95% of it is being shipped at great expense to refineries hundreds of miles away on the east, west and Gulf coasts. This is because there are presently only 94,000 barrels per day of refining capacity available in North Dakota, according to Meridian Energy, developer of a proposed new refinery near Belfield, North Dakota.

In addition, the tremendous growth of the Bakken oil play has resulted in the co-production of significant amounts of natural gas.

About one third of this gas is currently being flared, vented, or is “no bid” and is available to Meridian at a cost well below hub prices paid by competing refineries. Meridian says that use of gas to operate the plant will allow 100% of the crude intake to be processed without a parasitic effect, Meridian said.

Emissions so low it won’t need an EPA permit

Meridian says its plant will have emissions so low it won’t require an EPA permit.

Meridian’s PTC application as a Synthetic Minor Source was filed in October 2016, and amended in April 2017, to further reduce emission results for the Davis Refinery. The draft PTC issued by the NDDoH is in accordance with all applicable Synthetic Minor Source requirements. This marks the first time that a refinery of this size and complexity has been reviewed and approved (on a draft basis) as a Synthetic Minor Source. Meridian believes this demonstrates that the application documents, and the extensive underlying engineering effort, supports its contention that the Davis Refinery will be able to attain the Lowest Achievable Emission Rates (LAER) possible.

Bakken: Davis Refinery Update

Davis Refinery CGI Rendering
Source: Meridian Energy

The Davis Refinery will be the second “greenfield” refinery constructed in the U.S. since 1976. As a new, modern plant, the refinery will enjoy 100% new equipment configured in the most efficient manner, with longer operating cycles and higher output as compared with legacy refineries built decades ago.

One last step, one last permit

Meridian Energy Group, Inc. announced yesterday that the North Dakota Department of Health’s (NDDoH) Air Quality Division has issued, for public comment, its draft permit to construct the Davis Refinery. The draft permit is the last step toward a permit to construct (PTC) by the NDDoH.

Issuance of the draft PTC begins a 45-day public comment period, during which NDDoH will receive and consider comments and analysis from interested parties and the public. A public meeting will be scheduled within the 45-day period by the Air Quality Division of the NDDoH to facilitate participation in the process. Both during and upon conclusion of the comment period, the NDDoH will review and address all relevant input received, and then move forward with issuance of the final PTC. Meridian is hopeful that the issuance of the final PTC will take place in time to complete site grading and other work in 2017, and to launch fabrication of the refinery components by the end of the year.

Bakken: Davis Refinery Update

Davis Refinery Aerial View
Source: Meridian Energy

“We fully appreciate the thorough and meticulous review performed by the NDDoH, which held us accountable at every phase of the review process,” said Meridian CEO William Prentice.

“We look forward to the next step in the process as administered by NDDoH, since it will allow the community and interested parties to learn how Meridian’s design efforts, which included modifications made as a result of the rigorous review by the Department of Health, have ensured that the Davis Refinery will operate in full compliance with the law and in a manner that is responsive to the concerns of the local community. The Davis Refinery will indeed be the cleanest refinery on the planet when completed.”

Legal Notice