Spotlight On Walnut Hill Crude Oil Facility And Its Economic Impact

November 8, 2013

During a Thursday morning site tour, leaders from the Escambia Countyarea along with state officials from Florida and Mississippi got a firsthand look at the positive economic impact Genesis Energy L.P. (Genesis) has made on Walnut Hill and surrounding communities.

Genesis commenced operations at the Walnut Hill Crude Oil Rail Unloading Facility, one of the largest crude oil unloading stations in the region, last August and is on track to receive its 100th unit train in early December.

Oil arrives by rail from states like North Dakota to the facility that fronts Corley Road near Arthur Brown Road. The property was chosen because it is at the intersection of an existing crude oil pipeline and the Alabama & Gulf Coast Railway. From the location, crude flows to refineries along the Gulf Coast, including a Shell facility near Saraland, Ala.

For a photo tour of the facility, click here.

A crude oil pipeline from Jay rises to the surface at the facility. The flow from oilfields in the Jay area is cut, and the crude from the Walnut Hill train is injected into the pipeline.  The process is simple enough, but it is controlled by a sophisticated computer system that monitors the operation and allows for an instant stop in the event of any problem.

“Walnut Hill is the largest crude oil rail unloading facility in the region. The facility enables Genesis to deliver crude oil from domestic shale plays to local refining markets. We have the capabilities to unload 75,000 barrels of oil per day. We are extremely proud that the local community is involved and is playing an integral part in making this operation a success,” said Genesis Rail Services Director Neal Bjorklund.

The Walnut Hill site has a 100,000 barrel storage tank in service and a second 100,000 barrel tank under construction.

Genesis is expanding its terminal in Natchez, Miss., using the state-of-the-art design of the Walnut Hill Facility. Representatives from The Mississippi Development Authority, Natchez, Inc. and advisors to Mississippi Governor Phil Bryant attended Thursday’s tour as a fact-finding visit. Century Mayor Freddie McCall and local staff representatives from the offices of Florida Representatives Clay Ingram and Mike Hill were also in attendance, as were representatives from the Florida Department of Environmental Protection and the Pensacola area Chamber of Commerce.  Genesis representatives presented the Walnut Hill Rail Unloading Facility as an example of the company delivering substantial economic benefits with minimal impact to the environment.

Genesis created 20 full-time positions through the Walnut Hill Rail Facility. These employment opportunities provide full health benefits and 401k matching contributions for retirement. Genesis expects to create additional jobs over the next five years, providing long-term economic benefits that generate revenue for the surrounding community. Company officials estimate an 10-15 indirect jobs were created by the facility through construction and rail operations.

“We strive to operate a business that protects the environmental integrity and the safety of the communities where we are located,” said Steve Nathanson, President and COO of Genesis. “We don’t just want to employ local workers – we want their workplace and the community they live in to be a safe, healthy place.”

For a photo tour of the facility, click here.

Pictured: Steve Perrigin, Genesis operations manager, explains how crude oil flows through the Walnut Hill Rail Facility Thursday. Pictured top inset:  Crude oil is offloaded from trains and injected into a pipeline to Gulf Coast refineries at the facility. Pictured bottom inset: Perrigin explains the facility can be controlled on-site or remotely from Houston. Pictured below: Visitors are dwarfed by a second 100,000 barrel oil storage tank under construction at the facility. NorthEscambia.com photos, click to enlarge.

Comments

One Response to “Spotlight On Walnut Hill Crude Oil Facility And Its Economic Impact”

  1. Jane on November 8th, 2013 3:50 am

    If it is well maintained and safety measures are always adhered to this should be an excellent boost for a small economy, and may be somewhat useful in keeping gas prices down.

Written by William Reynolds · Filed Under FEATURE TOP STORY, Features, News