SemStream Will Begin Development Of Butane/Propane Terminal Near Winslow

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By Linda Kor
    The Navajo County Board of Supervisors approved a resolution Tuesday for a special use permit re-quested by SemStream, L.P., an Oklahoma based company, which allows the company to move forward with its plans to develop a propane/butane distribution terminal for storage of propane south of Winslow.
    SemStream, L.P., owns SemStream Arizona Propane, L.P., which purchased both the Payson and Page propane utility companies about one year ago. “With the purchase of the two utilities, we determined that it would be best to set up a site conveniently between the two areas, and since this type of utility must be transported by rail, this is an ideal location,” stated Jim Asbury, a representative of SemStream.
    The facility will be located in the Eco-Lena Industrial Park along Highway 87, approximately two miles south of Winslow.
    The company is a regulated propane utility that serves approximately 9,000 customers in the communi-ties of Payson, Strawberry, Pine and Page. In addition to those areas, SemStream will also provide third party sales to the rural areas adjacent to those communities.
    “The original plan was to have the facility up and running sometime between October and November of this year and we’re still hoping for that; it takes a lot of time to get the permits and go through the proce-dures, but it’s looking good,” Asbury commented.
    According to information presented to the board by SemStream, some of the benefits the company will provide for the county and the surrounding communities include year round access to a readily available supply of propane at comparative unit pricing and employment opportunities for local residents.
    “Initially we will only have one position available at the site, but as the company grows, so will the need for more workers,” related Asbury. The information also noted that the estimate of the tax revenues that the county will gain from the construction of the facility is $174,000 per year based on the property tax of the improved land.
    The propane and butane mixes will be received by rail, then offloaded by rail offloading system and stored in seven 90,000-gallon LPG storage bullet tanks supported on concrete piers. A dual truck transport loading rack will be used to load the propane from the storage tanks onto transport trucks for distribution to retail outlets.
    A majority of the trucks will be transporting the propane south of the development along Highway 87, but some trucks will be transporting along Interstate 40. In order to avoid residential areas, the trucks that will be traveling to the interstate will be traveling along Second and Third streets.  
    The company must follow strict safety regulations, and will have gas detectors and surveillance cameras on site. “We will have detectors located at the site that will sound off an alarm and automatically shut down anything that might be open,” Asbury stated. “The facility will also have 360 degree surveillance cameras and a fire hydrant will be installed on the south side of the property.” In addition to those measures, a six-foot high chain link fence will be placed around the propane tanks with keypad access at the entrance gates for employees and emergency personnel.
    Although this will be the first terminal the company has developed within Arizona, SemStream has 11 other similar terminals throughout the Northwest.