By Stephen Hemelt
L’Observateur

PAULINA — St. James Parish Council members voted this week to deny plans from Wolverine Terminals to establish a crude oil terminal and blending operation on a 15-acre Mississippi River site in Paulina.

The vote halted an effort first announced in May 2013 that was championed by Gov. Bobby Jindal as creating 20 jobs and providing a 425,000-barrel capacity for storage, blending and domestic shipping.

Parish Council members voted 6-1 Wednesday not to approve a land use ordinance variance to allow the construction at the site, which has a residential and mixed residential and commercial designation.

Parish President Timothy Roussel, who was not at the meeting because he was in Washington advocating for greater parish flood protection, said he understands the vote could cause alarm among some in the business community, but added the decision was best for the long-term growth of St. James Parish.

“We did try and redirect Wolverine months ago to try and look at a conformity area,” Roussel said. “We were willing to work with them as hard as we could to try and locate them and even incentivize (a location) if we could. I guess they didn’t take us up on it.”

District 7 Parish Councilman James Brazan was the lone board member to vote in support of Wolverine’s request.

On Thursday, Brazan told L’OBSERVATEUR he is worried Wolverine Terminals might seek legal action against the parish in the wake of the vote, but he declined to elaborate more on the issue.

Wolverine General Manager Terry Wilson said a decision concerning litigation is solely up to the company’s board of directors, adding board members had not made a decision on the matter.

“We are disappointed with the decision (Wednesday) night, but we still look forward to bringing jobs and economic impact,” Wilson said. “One of our avenues is finding another location in Louisiana. I’m looking at a couple currently. The other option is we do have another location outside of the state that is also viable. Hopefully, it works out in Louisiana. I am a native Louisianian, and I really wanted to bring the jobs to this state.”

Wilson said he does not see the company locating anywhere else in St. James Parish.

Wilson and Jindal announced in May 2013 the company would make a $30 million capital investment to establish a crude oil terminal and blending operation in St. James Parish, creating jobs with an average annual salary of $62,000, plus benefits.

At the time Louisiana Economic Development estimated the project would result in 18 indirect jobs and 100 construction jobs.

“This project is more great news for St. James Parish and our entire state,” Jindal said at the time. “Wolverine Terminals joins a long list of companies that recognize Louisiana as the best state in the country for a top-notch workforce, an unmatched energy infrastructure and an outstanding business climate. We’re proud to welcome Wolverine Terminals and its investment partners to our state as they help us continue our tremendous economic momentum by creating great new jobs and opportunities for our people.”

Messages left with the governor’s office and Louisiana Economic Development seeking comment on the vote were not returned.

Roussel said no deal was ever nailed down.

“If we are working on a land use plan, it would take Council approval,” he said.

“(Wolverine officials) knew that, like we knew that. Of course we want to be encouraging to anyone who wants to come. I don’t think it ever was a done deal that they were coming. They had to do their due diligence like we had to do ours.”

Roussel said Wolverine officials wanted to build within the existing fence line of grain elevator company ADM Growmark.

“But who is to say if this thing grows bigger, they would have to expand outside of that fence line,” Roussel said.

“That is the scary part. You also have to understand that Stone Oil owns (land) right outside. So if Wolverine is successful, one is to think that Stone Oil is coming too.

“You have to be careful. I would think that if you would allow a Wolverine to come into that community, you would have to allow a Stone Oil to develop in a non-conforming area. How many variances are you going to be able to allow? Once you allow one, the gate is open.”