ELK POINT, S.D. – A proposal to bring nearly 5,000 new jobs and build a refinery capable of producing 400,000 barrels of crude oil a day is causing a stir among Elk Point residents.
Texas-based Hyperion Resources announced Wednesday it is considering building the first oil refinery in the United States in 31 years here. The proposed refinery would be located about eight miles north of Elk Point and would employ 1,800 full-time workers.
The idea brought mixed feelings from southeast South Dakota residents.
Of 16 people interviewed Wednesday, nine said the refinery would be a good addition to the state; five wanted more details before deciding. Only two opposed the idea.
Supporters concentrated on the large economic boost and potential flood of new jobs.
“I think it is tremendous,” Mike Pottebaum said. “It will bring vibrancy to this town.”
The 56-year-old is president of Thermo Bond Buildings in Elk Point. Seated before a plate of eggs at Cody’s Homestead, Pottebaum said the project would “create a larger base of workers to draw from.”
“Right now, you go downtown at night and you think it’s a ghost town,” he said.
Erin Olson, 27, said she was “excited” about the idea and is “optimistic” about Hyperion’s promise for clean, environmentally friendly production.
“I think it will be good for the town,” Olson said. “There will be more jobs and more people coming to Elk Point.”
Olson’s main concern was the type of people the company would bring. She said a “new atmosphere” might be created.
“I’m afraid there will be a shift of people that could cause tension,” she said.
About half of the residents interviewed wanted to know more details about the wave of nearly 5,000 new people and its effect on area communities.
John Ring, a 59-year-old former bank examiner for the state, said the cities of Vermillion and Yankton, among others, also would be affected.
Standing outside Casey’s General Store, he said, “People need a place to stay and you have to have amenities ready.”
“This isn’t going to affect just Elk Point,” Ring said. “Other towns need to start planning for houses and schools.”
Eileen Donnelly, 84, a local farmer and lifelong resident, expressed concern that the town wasn’t large enough to handle the extra workers.
“The schools are not big enough,” she said. “The jails aren’t big enough.”
Several residents expressed skepticism and wanted to know more details.
Wildlife Conservation Officer Tom Petry, 51, said he doesn’t know all the facts and is undecided on whether he’ll support the project.
“Before anyone can make a decision about anything, they need to know all the facts so they can make an informed decision,” Petry said.
He has lived in nearby Canton all his life. He was disappointed in the secrecy behind the project and found it interesting how “hush-hush” the project was.
“The speculation drove people crazy,” he said.
An Elk Point resident for 36 years, Carol Runyon said the secrecy behind the project before the announcement made her uneasy.
“It is a good idea, but the community should have been more informed,” she said.
Runyon said local businesses would benefit, but the town is drawing too much attention. She feared her small town could become awash in a sea of newcomers.
“It will turn our town into something we don’t want,” she said.
Dakota Dunes resident Lowell Krediet said the project would help keep the younger population from pursuing jobs elsewhere and would be great way for the state to expand.
“I’d like to see South Dakota grow,” he said.
Paying for his coffee outside the BP gas station, a man, who elected not to give his name, criticized television networks.
“They always put the two dumbest people on CNN, and I’m not one of them.”