This letter serves to inform you about current developments involving NuStar Energy L.P. (NYSE: NS). NuStar Energy L.P. is the second largest oil terminal operator in the USA and the fourth largest in the world. Their largest facility by far is located on the Dutch Caribbean island of St. Eustatius. With its capacity of 13 million barrels the terminal on St. Eustatius alone can hold as much as 25 per cent of all NuStar's terminals in the USA combined (50.6 million barrels). The operation on this island is therefore a key factor in NuStar Energy's overall results.
At the NAPTP MLP Investor Conference in May 2011, NuStarGP Holdings, LLC (NYSE: NSH), which owns general partner interests in NuStar Energy L.P. and manages the business affairs of NuStar Energy L.P., stated that they were constructing another million barrels capacity on St. Eustatius. However, these plans have generated considerable unrest amongst the population of the island. Petitions against the current plans have been organized. Protests against the proposed expansion have led to repeated questions being asked to the relevant Ministers in the Dutch Parliament. Interest groups have also appealed to UNESCO.
The concerns and protests are about the proposed location of NuStar's additional tanks and associated new jetty. Their proximity to residential areas, schools, the island's only swimming beach, recreational areas and the airport is considered a threath to the inhabitants' health, safety and general quality of life. Unique eco systems and coral reefs will be damaged and limit the chances to get on the UNESCO World Heritage list.
In addition, unique cultural heritage will be affected or even destroyed by the current plans as the site includes extensive 18th century slave cemeteries and a private colonial plantation cemetery dating back to 1719. The destruction of slave cemeteries is a particularly sensitive issue on an island of which the population predominantly descends from enslaved Africans.
What affects the inhabitant's perception of NuStar Energy as a responsible corporate citizen is the fact that alternatives are available. However, these will involve higher investments and NuStar is therefore consistently turning them down. This leads to the notion that in the eyes of NuStar Energy, the people of St. Eustatius - the island that contributes more to NuStar Energy's profits than any other of their sites - are not worth spending more money for. This negative perception of NuStar Energy has already started to spread - to the Dutch politcal arena and internationally.
http://no-to-nustar-expansion-
http://no-to-nustar-expansion-
Good corporate citizenship has rightly become an important part of a company's sustainability. NuStar Energy L.P. is currently putting theirs at risk by not showing respect to the community that harbors the biggest contributor to their profits.
Sincerely
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