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KVOS Special: Guemes Island - The View From Anacortes

  • --interests which are outstanding in their country.
  • At this point, we are not at liberty
  • to be any more specific than this.
  • There have been some comments as to why we have picked
  • Guemes Island as a plant site.
  • I think the answer to that is simply
  • that we employed competent engineering personnel to survey
  • the area, and this plant site is the one
  • which they have recommended to us as being
  • the most desirable and most economic for this purpose
  • and the only site usable for this purpose in Skagit County.
  • The reasons involved are the availability of Bonneville
  • Power, which, of course, is available to all
  • of the people in the aluminum industry at the same terms
  • and rates, the availability of labor, the fact
  • that this is an extremely good, protected deep water
  • port, and permits low cost material handling, both
  • into and out of the plant, and that there
  • is sufficient land that is reasonably level
  • enough to provide an adequate plant site, high enough
  • above anticipated high water so that there
  • is no problems on that score, but not
  • so high that there are problems of moving material,
  • particularly alumina, from large vessels which
  • will bring it to the plant site, to the storage facilities and,
  • ultimately,
  • to the pot rooms themselves.
  • The plant is rated at approximately 130,000 tons
  • per year of aluminum.
  • In various press releases by others,
  • figures have been used ranging from 120,000 to 140,000 tons.
  • The design capacity is 130,000 tons.
  • Historically, every plant has produced somewhat more
  • than its design capacity.
  • We expect therefore that the actual production
  • will be somewhat nearer 140,000 tons, even though we
  • are designing for 130,000 tons.
  • We're going to use the conventional Hall
  • process, the straight electrolytic reduction in which
  • alumina is dissolved in a bath of fluoride and cryolite
  • and reduced to aluminum with the consumption of carbon
  • electrodes in the process.
  • [AUDIO OUT]
  • Essentially, this breaks down into three parts.
  • In the process, of course, the certain relatively small
  • but significant amount of materials
  • used in the electrolytic bath do get
  • into the air in the hoods which are over these pots.
  • Our design is such that the pots will be hooded,
  • and the amount of air therefore will be relatively small, as
  • distinct from other approaches to the problem where the vapors
  • and fume get into the air of the pot room in general,
  • and therefore you have to process all the air that's
  • in the entire operating plant.
  • We recycle these materials back into the pots,
  • and there is no effluent.
  • The only other pollution problem we
  • have is the same as any industrial,
  • or for that matter, any community, and that
  • is ordinary sanitary water, sewage problems of that sort.
  • In that area, of course, we propose
  • to follow the standards which are set up
  • by local and state regulations.
  • I believe we are the only company at present--
  • although I must admit, I'm sure that as other people's power
  • contracts come up for renewal, they
  • will have an opportunity to do the same as we have already
  • done.
  • I believe, however, we're the only company at present that
  • has committed in our power contract
  • with the Bonneville Power Administration
  • to first submit to them for their review and approval
  • the detailed method of anti-pollution control
  • which we plan to use.
  • And secondly, to covenant--
  • to continue to use this, to maintain it,
  • and to use it effectively.
  • If we don't comply with any of these requirements,
  • they have no obligation to supply us power.
  • And without power, our pots freeze up,
  • and I've explained earlier the problem
  • that this means to an aluminum company.
  • In addition, we are negotiating and are getting to the point
  • where we are ready to enter into a contract
  • with Washington State University for monitoring
  • the air, the soil, the vegetable growth and the animal growth
  • in the area for perhaps as much as 18 months, certainly not
  • less than a year, before we go into operation in order
  • to establish a baseline from which we can make comparisons,
  • and then continually to monitor from then on.
  • This university, because of the large amount of the aluminum
  • industry which exists here in the Northwest,
  • is without a doubt the best equipped,
  • has done more research and development in this area
  • than any other group of which we have knowledge.
  • And we're fortunate that in being here, being available,
  • and being willing to render this service,
  • we can continually keep a check on the performance
  • of the system which we propose to install and not
  • run the risk of being a bad neighbor through inadvertence
  • or failure of equipment, or any other thing that sometimes does
  • happen in industrial activity.
  • Some comment has also been made as to the size of the plant
  • site, the amount of the area which we proposed to use,
  • the effect on the island in general.
  • The plant site we now have is something
  • like a little over 700 acres--
  • I believe 714 acres--
  • of which the facility you see there, which is a rendering,
  • it's done to exact scale, uses about 140 acres.
  • The economic size to which this plant might be expanded
  • will probably be twice, perhaps three times the capacity.
  • But by the nature of the design, the increments
  • take a very much smaller amount of area
  • than the initial facility, so that we'll
  • use going in something less than 20% of our plant site.
  • And we propose to use the balance of the area
  • to provide a landscape buffering zone
  • with the rest of the island.
  • The plant, because of the natural contours of the ground,
  • will lie in what they refer to-- the engineers refer to--
  • [AUDIO OUT]
  • Naturally, this breaks down into two parts.
  • In the first place, if we don't get a building permit,
  • since we intend to be good citizens wherever we may be,
  • we can't build on the site for which we've made application.
  • We do not have any other alternative sites under option,
  • nor are we negotiating for any.
  • We have every reason to believe that since our application is
  • a normal routine, reasonable application,
  • that it will be treated fairly and that approval
  • will be given.
  • But we certainly have no assurance from anyone
  • to that effect.
  • Mr. Meissner, Duane Trecker from Channel 12.
  • You're from outside of the area.
  • I would like your reaction to the effort
  • by the people who would like to save the San Juan Islands.
  • Well, as you say, I'm from outside the area.
  • I've visited here, I've studied the maps,
  • and I've seen from the air and, of course,
  • from across the water from driving some of the San Juan
  • Islands.
  • Naturally, since we expect to have 900 people initially,
  • and ultimately, we hope to expand and have
  • more people employed here, we want
  • to do everything we can to continue to make the Pacific
  • Northwest as desirable a place in which
  • to live and work as we possibly can.
  • Without trying to be an expert, it seems to me
  • that most of the islands that I've seen from the air
  • are essentially not of any interest from the point of view
  • of industrialization because they're relatively rugged
  • and they just simply don't offer enough flat land in which
  • to put an industrial activity.
  • Furthermore, they have no utilities at all,
  • and bringing utilities to them would
  • be tremendously expensive.
  • Guemes Island, on the other hand, in Skagit County,
  • not in San Juan County, where most of the San Juan Islands
  • are, is about the same as Manhattan to Jersey City.
  • It's true that it's an island.
  • I guess we're on an island now, for that matter.
  • But it doesn't seem to me to fall into the same category
  • as the other islands.
  • Personally, I like to fish and I like to sail
  • and I like to get out in the woods,
  • and I would certainly do everything
  • I could to preserve the rest of the islands--
  • the San Juan Islands, as I regard it.
  • I don't really know how much access the public has to them.
  • In other words, I don't really know
  • for whom they're being preserved because they are relatively--
  • [APPLAUSE]
  • --relatively inaccessible and, I understand, very largely under
  • private ownership with therefore limited use
  • by the average citizen.
  • Dr. Meissner, Don [INAUDIBLE] of KBRC in Mount Vernon.
  • Will there be any problems of the company receiving
  • enough power to operate this plant on this site?
  • We have a power contract from Bonneville Power
  • Administration, which is typical of the contracts given
  • to the aluminum industry.
  • And we have what is termed firm or not interruptable power
  • in an adequate amount to take care
  • of the operation of this plant.
  • We also have the right, sometime in the future when Bonneville
  • completes its program of expanding water storage and so
  • forth, to amend our contract for additional power
  • so that the plant can be expanded.
  • At this time, it would not be possible to build a larger
  • plant on firm power.
  • It would be possible to build a larger plant using the firm
  • power we have, which is 240,000 kilowatts plus a percentage
  • of interruptable power.
  • And frankly, most of the companies in the area
  • do use a mixture of firm and interruptable power.
  • There is adequate power under contract for this facility.
  • Who are the owners of Northwest Aluminum?
  • How is it structured?
  • Well, as I said at the beginning, basically,
  • Bell Intercontinental owns 100% of the stock
  • of Northwest Aluminum.
  • Bell, to give you a little background,
  • has a net worth of something like $54, $55 million.
  • In turn, slightly over 50% of its stock
  • is owned by the equity corporation,
  • which is controlled by American Export-Isbrandtsen Lines.
  • The combined net worth of the family
  • is of the order of a quarter of a billion dollars.
  • The Bell Intercontinental equity and American
  • Export-Isbrandtsen, of course, are all public companies.
  • We're listed on the New York Stock Exchange,
  • equity is listed on the American exchange,
  • American Export is on the New York--
  • the big board.
  • So that everything we do, including all our operating
  • figures, our financials and whatnot,
  • are a matter of public record, and we'd
  • be very happy to provide any reports, balance sheets, and so
  • on and so forth of the family.
  • And there is also complete disclosure
  • of the relationships of the family of companies that exist.
  • Dr. Meissner, McDonald again from Channel 4 in Seattle.
  • Following under your power and your ownership answers,
  • the report that another aluminum company wanted
  • to build a plant in Ferndale, but the Northwest got
  • the power of commitment from BPA,
  • and that those two operations have since
  • merged and will build four, not two plotlines on Guemes.
  • Is that correct?
  • It's the first I've heard about it.
  • Dr. Meissner, Reynolds ran into some pretty big lawsuits
  • in Oregon over the emission of fluoride.
  • Do you anticipate that your operating here
  • might face the same fate?
  • We do not because of the system that we propose
  • to use to prevent the emission of fluorides
  • in any significant quantities.
  • Dr. Meissner, you mentioned bringing the alumina
  • off the barges or cargo ships on a conveyor belt.
  • Is this an enclosed system?
  • Yes.
  • I've seen aluminum, and I know how light and volatile it is.
  • It is a closed system.
  • And in a closed system--
  • Of necessity, it must be, that's right.
  • It has to be.
  • We'd never get it up to the storage tank otherwise.
  • [INAUDIBLE]
  • Dr. Meissner, you mentioned there
  • will be some improvement of transportation
  • so that you can get there.
  • Presently we have a small county ferry running to the island.
  • Do you anticipate a privately owned company ferry
  • or to stake aid in a ferry system or what
  • to provide your transportation for employees
  • and other equipment?
  • We do not anticipate a private transportation facility.
  • We assume that either the state or the county
  • will adjust the ferry service to accommodate
  • the number of people or traffic that will generate.
  • Historically, this is the function of state governments
  • and county governments.
  • Adjust the rate of service?
  • Do you mean put on additional vessels
  • or run this small boat that much more?
  • I really don't know.
  • I can't answer that question.
  • [AUDIO OUT]
  • The answer to that question is that the engineers
  • looked at a great many sites.
  • I honestly don't know whether they're all in Skagit County
  • or not, although I know that I looked at five myself
  • after they had narrowed them down.
  • And we didn't just zero in on a residential island.
  • We made--
  • Shannon Point was considered--
  • I don't know where that is, frankly.
  • I can't answer that question because I
  • don't know the location that you're talking about.
  • Could you put Mr. Stripe at the podium so we could ask him?
  • Surely.
  • Please.
  • Do you know what Shannon is?
  • Would you spell the--
  • Mr. Trecker from Channel 12 again.
  • Was Ship Harbor Shannon Point Industrial Site
  • pointed out to you?
  • Well, where is Ship Harbor?
  • It's right out near the state ferry dock.
  • I don't think by that name it was.
  • We saw one by the state ferry dock, yes.
  • And we saw the one over by your airport,
  • and I guess we saw 10 or 12 in the area.
  • But I don't recognize it by that name.
  • That name is not--
  • Is that the site listed by the Bonneville Power Administration
  • in its catalog of industrial sites?
  • No.
  • May I answer this question, and yours, too, in a sense?
  • I think if you'll check the Bonneville Power
  • Administration's policy, you'll find that their,
  • and I think properly and appropriately, their policy
  • is to provide power where industry determines
  • it is most economic for industry to locate and not to try
  • to direct industry into a particular county, community,
  • or state.
  • They would be subject to all sorts of pressures
  • and criticism if they did attempt
  • to use their ability to provide power to favor one area as
  • distinct from another.
  • Now, I have never seen this survey that you mentioned.
  • Bonneville, if it has a survey, as apparently it has,
  • were very careful not to attempt to influence us in any way.
  • This is a policy that they've gone so far
  • to encourage that they have the so-called postage stamp rate.
  • [AUDIO OUT]
  • --a way to avoid communicating with us,
  • talking about such things as maybe you'll have a ferry.
  • Isn't it time you told these people something definite?
  • This is where they live.
  • You're going to take away probably a fifth
  • of their island.
  • You'll definitely destroy what has now become
  • known as their way of life.
  • It would change everything for them.
  • Isn't it time that you told these people where they stand?
  • Mr. Woodgate, I think that from now on, yes,
  • there can be and will be and should
  • be communications with the peoples
  • of the island and Anacortes.
  • I don't think there's any question about it.
  • As plans materialize, I believe from now on,
  • they will be immediately informed.
  • But I think you also understand, I'm sure all of you do,
  • that when you're deciding on a plant location,
  • you do not go around publicizing it.
  • There are too many reasons and logical reasons
  • that you just do not do that.
  • There are too many things that can
  • get started in the newspapers that are erroneous,
  • probably some of them have happened up here.
  • Could I follow up that question and say,
  • what do you intend to do to break down
  • this unfriendly attitude that now exists?
  • I don't think we'll have to break it down.
  • There are two or three things.
  • One, I think you're wrong in the statistics you've quoted.
  • We understand that over half of the residents of the island
  • have signed a petition that they would like to have us there.
  • I don't know what the count is or anything about it
  • other than I have been informed that over half
  • have signed such a petition.
  • Whether that is true or whether it's now 3/4, I don't know.
  • But I do know this, that once they become informed,
  • that we are going to be a responsible citizen
  • of the island, and in Anacortes that they'll be very happy.
  • I don't see any deterioration of their way of life at all.
  • If anything, an enhancement of it.
  • Yes, sir?
  • Duane Trecker of Channel 12, sir.
  • Weren't you warned ahead of time that this
  • might be like stepping on a hornet's nest to step out
  • [INAUDIBLE]?
  • I never was.
  • I don't know.
  • The only thing that I was somewhat apprehensive about
  • was that an island just doesn't sound
  • like the place for industry.
  • And we were somewhat concerned about what
  • the financial institutes might think of it,
  • but they, after seeing engineering studies,
  • are very happy, too, as we think the residents will be happy.