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ST. THOMAS — Senate Vice President Janette Millin Young, who chairs the committee on Economic Development, Agriculture and Planning, said she obtained a clarification and confirmation letter of the operating agreement between the Government of the Virgin Islands and Limetree Bay Terminals, a subsidiary of ArcLight Capital Partners, LLC, that clarified language ensuring that fuel bought through Limetree Bay will be sold at a discounted price in the territory.

Mrs. Millin Young, who voted against the agreement because she said the new language regarding prices at the loading rack was non-binding at the time, lauded the development as timely in view of growing concern that Virgin Islands gasoline prices remain unchanged despite dropping oil rates.

The change in language came as a result of lobbying from Senator Kurt Vialet, who was unsatisfied with the vagueness of the prior wording, and demanded that it be clarified.

Mrs. Millin Young said she wrote Attorney Joel Holt, who represented the government in negotiations with Limetree on January 7, asking what steps were being initiated to incorporate the new language, which was presented by Capital Partners Director Evan Schwartz at the last operating agreement Senate session.

“Fuel prices charged to the government and public at the fuel loading rack shall be no more than the sum of all actual arms-length cost of procuring fuel plus a margin of 10% of the Gulf Coast spot price,” reads the new language.

Mrs. Millin Young said the clarification letter by Limetree Bay Terminals Manager John Erhard and Attorney Todd H. Newman affirmed that the contents of the letter relative to the fuel prices is binding upon the company and can be relied on by all parties in any future interpretation or consideration of the operating agreement and its terms.

“Virgin Islanders expect lower gas prices because of the decline in worldwide oil prices and the dramatic drop in gasoline prices across the nation. Additionally, we granted generous tax concessions to reopen the HOVENSA storage facility. I expect promises made during senate consideration seeking approval of an operating agreement to be adhered to,” she said. “With this significant facility operating in the territory, residents demand to benefit from the drop in oil prices and the generous tax concessions provided to Limetree Bay Terminals to operate.”

Tags: arclight, fuel price, limetree bay, us virgin islands

Ernice Gilbert
I wear many hats, I suppose, but the one which fits me best would be journalism, second to that would be radio personality, thirdly singer/songwriter and down the line. I've been the Editor-In-Chief at my videogames website, Gamesthirst, for over 5 years, writing over 7,000 articles and more than 2 million words. I'm also very passionate about where I live, the United States Virgin Islands, and I'm intent on making it a better place by being resourceful and keeping our leaders honest. VI Consortium was birthed out of said desire, hopefully my efforts bear fruit. Reach me at [email protected].