Stevens aims at Washington refinery limits

U.S. Sen. Ted Stevens, R-Alaska, wants to lift a long-standing restriction on BP's Cherry Point refinery in Puget Sound.

Current federal law, Stevens said on the Senate floor last week, lets Puget Sound refineries obtain new dock permits only if any new gasoline production related to the project stays within Washington.

"I have introduced legislation to repeal this outdated and unfair law that results in limited supplies to other regions," Stevens said.

Sen. Maria Cantwell, D-Wash., opposes the idea.

"I will do everything in my power to prevent giveaways to big oil companies that will increase the risk of a major oil spill in our precious Puget Sound," Cantwell said.

The dispute has been brewing for some time. On Nov. 2, it overflowed into floor debate because of Cantwell's amendment to stop oil leasing in the Arctic National Wildlife Refuge. The amendment, which Cantwell proposed to the budget reconciliation bill, failed 51-48.

"Without the opportunity to expand production at the Cherry Point refinery, more than 300,000 gallons of fuel per day are lost," Stevens said. "This is fuel desperately needed by consumers in both Washington and Oregon."

He quoted a report from the Seattle and Tacoma chambers of commerce that said refining supports 1,990 jobs with a payroll of $144.5 million in the Puget Sound region. Ninety percent of the oil comes from Alaska.

"Perhaps this is why the chambers of commerce support balanced development of ANWR," Stevens said.

The Cherry Point refinery was built in 1971 to take 100,000 barrels a day of North Slope crude, which did not start flowing until 1977. Washington's then-Democratic senator, Warren Magnuson, that year added the new dock restriction to the Marine Mammal Protection Act. The idea was to limit potential oil spills by limiting the growth of tanker traffic.

Stevens introduced his bill to lift the dock restrictions Nov. 8, the day before a Senate hearing with the chief executives of major oil companies, including BP America's Ross Pillari.

Pillari said Cherry Point's production could fall 10 percent if Stevens' bill does not pass. The refinery can handle 230,000 barrels per day, according to BP.

North Slope production, most of which goes to the West Coast, has averaged 895,000 barrels per day this year, according to Alyeska Pipeline Service Co.