THE NEW YORK TIMES: Shell Oil to Sell a California Refinery: ``We're pleased to reach this sale agreement, which we recognize is important to many people in Bakersfield and beyond,'' said Lynn Laverty Elsenhans, president of Shell Oil California.” (ShellNews.net) 12 Jan 05
By THE ASSOCIATED PRESS
LOS ANGELES (AP) -- Shell Oil Corp. has agreed to sell a California refinery to a subsidiary of Flying J Inc., a privately held oil company based in Ogden, Utah, the company said.
Terms of the sale of the Bakersfield refinery were not disclosed. Shell, a unit of the Royal Dutch/Shell Group of Cos., said the transaction should close by March 31.
Closing the deal will be contingent upon both companies agreeing with federal authorities about transferring obligations under a consent decree governing the refinery's operation.
Shell said Flying J wants to ``retain a large portion of the work force'' and will honor the refinery's existing collective bargaining agreement. Workers wanting to stay will have the chance to discuss job opportunities with Flying J officials.
The refinery employs about 210 full-time workers and 150 contractors.
``We're pleased to reach this sale agreement, which we recognize is important to many people in Bakersfield and beyond,'' said Lynn Laverty Elsenhans, president of Shell Oil California.
Last month, Shell said it would keep the refinery open for another three months after the federal government agreed to let it exceed pollution standards.
Shell had planned to close the refinery this fall on grounds that it was old and inefficient and that crude oil from the Kern County fields was drying up. In July, Shell spokesman Stan Mays said the refinery had lost $50 million over the last three years.
However, the oil company delayed closure under pressure from state lawmakers.
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