Senator Sanes Signals Support For ArcLight Deal As Consensus Builds

ST. CROIX — Veteran Senator Sammuel Sanes has signaled his support for the operating agreement struck between Limetree Bay Holdings, a subsidiary of ArcLight Partners, LLC and the Government of the Virgin Islands, telling The Consortium on Sunday that bar a few questions, he will vote in the affirmative.

“I think the government’s financial team has given us a good presentation, and I’m looking forward to their testimony. As you know, I haven’t always agreed with the present administration’s politics, but I can say straight out that there’s been transparency. All the reports have been online, and so I’m looking forward to the hearings,” Mr. Sanes said.

The Governor Kenneth Mapp administration will also have to satisfy the questions posed by Mr. Sanes’ colleagues, according to the longtime senator.

“It’s not just one person who’s going to decide on this; it will be fifteen of us. But so far it’s looking good — but we do have some questions,” he said.

Mr. Sanes said his questions will be mostly environmental queries and employment clarifications. However, he expressed optimism in the Mapp administration’s ability to make a plausible and convincing case during what is expected to be a healthy debate on December 16 in St. Thomas, during a Committee of the Whole hearing at the Earl B. Ottley Legislative Hall.

“Hopefully we could do what’s best for St. Croix,” he said.

The Consortium is aware of at least two other St. Croix senators who are in support of the agreement, and St. Thomas senators have committed to backing whatever the Crucians do, according to a current senator, speaking to The Consortium on the condition of anonymity.

But signs of dissent linger, with St. Thomas Senator Janette Millin Young revealing that she is in no hurry to approve an agreement that she could not properly vet in the limited time given to the Senate to ratify it. Mrs. Millin Young called for an independent analysis of the agreement before moving forward.

And Senator Tregenza Roach expressed frustration that he hadn’t received the purchase agreement document from the government, although it was posted on The Consortium a day following the operating agreement’s announcement.

Approval of the agreement would see the GVI netting $220 million. But it would also give ArcLight a pass on taxes, and the company has only committed to operating the oil storage terminal, which it says requires a minimum of 80 employees, with the potential of growth to about 200 in two years. ArcLight also told The Consortium that it has been in discussions with serious players in the oil industry, who have expressed interest in restarting some refining units on the east of HOVENSA. And they expect contractors to hire employees, too, which would bring the estimated 80-200 number considerably higher overtime.

For more details on the agreement, go here.