Ecology Global Network takes interest in terminal expansion

Four part series by Betsy Crowfoot (Ecology.com) exploring the potential impact of NuStar Energy’s proposed oil terminal expansion on the Caribbean island of St. Eustatius on Ecology's website

Well written and based on extensive research this series is a must read for everybody.

1. Part I: Tarnish on the Golden Rock: Will the Tiny Caribbean Isle of St. Eustatius Surrender to Oil Multinationals?
2. Part II: St. Eustatius Residents Fear Losing Their Island to Expanded Oil Terminal
3. Part III: How ‘Green’ is the Golden Rock?
4. Part IV: New Worries About Oil Terminal Risks on St. Eustatius Island

Open letter to NuStar Board of Directors

Dear Sirs,

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-steustatius.blogspot.com/

 

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 

Travel organization will possibly exclude Statia if expansion goes through

Today, a nature travel organization posted this comment on SEAD's online petition:

"As the director of SNP Natuurreizen, a Dutch tour operator specialised in active holidays I strongly protest against the expansion of Nustar. In 2012 we are launching a special walking program on St. Maarten, Saba & Statia for groups and individuals. The proposed expansion of Nustar will damage the experience of our clients to be walking on an island of special natural beauty and could result in excluding St Eustatius from our scheduled program."

This is proof to us that Statia government is seriously underestimating the negative impact on tourism development because of NuStar expansion plans. In an appendix of the St. Eustatius Spatial Development Plan we read: "It is possible for tourism and the oil terminal to co‐exist. Perhaps a few fanatic eco‐tourists will steer clear from the island". (Advies van de commissie van deskundigen over de tegen het ontwerp ontwikkelingsplan ingebrachte bezwaren 25/02/2011)

SNP is not a tour operator for "fanatic eco-tourists"! In fact, it is partner of very mainstream ANWB Travel in Holland.

Strong Opposition Against New To Be Built Jetty

Controversial part of NuStar's expansion plan, is the construction of a new, 1,730 meter jetty. The jetty will be located in the Smoke Alley area that is part of the island's main beach. Not only will that part of the beach (including diving spots) no longer be accessible to inhabitants and tourists, it will damage and destroy another part of the coral reef in Statia's marine park.

NuStar responds to the criticism with another one of their famous euphemisms: "The new jetty will have a “transparent” design that will minimize visual impact, and will have specialized low-impact lighting so that it does not create any light hindrance for Lower Town."

Expansion Plans Obstacle for Heritage Trail

One of the objections against the Spatial Development Plan of St. Eustatius, came from Mr. Walter Hellebrand, representing St. Eustatius Monuments Foundation (SEMF). His concern is that NuStar's expansion plans would destroy the possibility of setting up a unique heritage trail on the island:

"The area containing Benners Plantation, Godet Plantation, the bordering coast line and further along the bay to Lower Town to Blue Bead Restaurant is a unique area which the SEMF wishes to introduce as a unique heritage trail, because it includes all essential elements of the history of St. Eustatius as a typical colonial island (pre‐Columbian Indian settlement, plantation, slave trail, forts, trade, warehousing and tollbooth). This trail is easily accessible. The construction of oils storage tanks south of Signal Hill would destroy the possibility of setting up this unique heritage trail."