Virgin Islands Shut-In Oil Royalty

State:
Multi-State
Control #:
US-OG-825
Format:
Word; 
Rich Text
Instant download

Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.

How to fill out Shut-In Oil Royalty?

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FAQ

In May 2021, EPA ordered the then-owner Limetree Bay to pause all operations at its St. Croix, U.S. Virgin Islands refinery following multiple air emissions incidents due to the imminent and substantial endangerment to public health or welfare of the environment posed by continued refinery operation.

Croix refinery, formerly the largest in the Western Hemisphere, was expected to boost overall supply in the Caribbean, a key transit point for petroleum shipments, but the EPA shut it after a few months of operation in May 2021 after chemical releases sickened neighboring residents.

The EPA shut down the refinery, formerly called Limetree Bay, in May 2021 after a series of chemical releases into the environment sickened neighboring residents.

The refinery was sold for $62 million in December 2021 to West Indies Petroleum and Port Hamilton Refining and Transportation, following the bankruptcy of its former private equity owners.

On June 23, 2022 Government House in Christiansted issued a notice that Port Hamilton Refining and Transportation LLLP (PHRT) had acquired the assets of Hovensa (Limetree Bay Refinery on St. Croix) through the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, Case 21-32351.

The Limetree Bay Refinery's operating capacity is 220-thousand barrels per day. This compared to Petrojam's capacity, which is reportedly approximately 30-thousand barrels per day and a refinery in Suriname, which operates at approximately 15-thousand barrels per day.

On June 23, 2022 Government House in Christiansted issued a notice that Port Hamilton Refining and Transportation LLLP (PHRT) had acquired the assets of Hovensa (Limetree Bay Refinery on St. Croix) through the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, Case 21-32351.

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Virgin Islands Shut-In Oil Royalty