Posted on March 27, 2019
The Port of Corpus Christi’s multi-billion dollar Harbor Island project in Port Aransas will be allowed to move forward, after the 13th Court of Appeals lifted a stay on the project Monday.
The court denied a petition filed by former port commissioner Kenneth Berry to halt the project based off claims the port, in part, violated the Open Meetings Act in how it negotiated a lease for a massive marine terminal project on Harbor Island.
The port commission was set to vote on March 19 on a 50-year lease with Lone Star Ports LLC, a joint venture between The Carlyle Group and Berry Lone Star Ports LLC. But that action was halted after Berry filed his petition in the 13th Court of Appeals, with the appellate court issuing a stay on the project shortly before the port commission meeting got underway.
The court’s ruling lifts that stay, as well, which will allow the port commission to vote to approve the lease agreement with Lone Star Ports at a future meeting. The port has scheduled a special meeting of the port commission on Thursday at 1 p.m. to vote on that proposed lease.
“We’re pleased with the court’s ruling,” Port CEO Sean Strawbridge told the Caller-Times. “We look forward to continuing on with our normal course of business.”
The proposed lease agreement could provide the port with $2 billion to $4 billion in new revenue over the life of the lease, officials have said. The project would be capable of fully loading Very Large Crude Carriers capable of carrying up to 2 million barrels of crude oil.
The lease, even if approved by the port commission, is still subject to approval from the Lone Star Ports Board of Directors before it takes effect, officials have said.
The project has drawn push-back from residents in Port Aransas who are concerned about the possible impact from the dredging that would be involved, as well as from the massive vessels. The port is proposing to dredge its channel from the Gulf of Mexico entrance to Harbor Island down to 75 feet in order to accommodate VLCCs.
But port officials have said that every effort is being taken to develop the project in a responsible manner. The terminal project is necessary, officials have said, because of the coming influx of crude oil from the Permian Basin and Eagle Ford Shale. Without the capacity to handle it all, it could create a bottleneck for producers that will cost them revenue.
According to a March 14 article in Reuters, the U.S. Army Corps of Engineers has called for a full environmental review that could take up to 18 months to complete, which would delay the start of construction for the Harbor Island project.
Strawbridge said the Harbor Island project “is absolutely the most responsible and needed energy export project on the U.S. Gulf Coast.”
“Everybody in the Port of Corpus Christi is going to see increased volumes and all of the existing terminals won’t have enough capacity,” he said. “So it’s absolutely vital that we demonstrate our ability to build more infrastructure and bring more certainty to the global market that Corpus Christi is the preferred gateway for exporting America’s energy.”
Berry said Monday afternoon that he and his legal counsel “don’t have a direction yet” in terms of whether to pursue further legal action against the port related to the proposed lease. Berry has been critical of the port for “secretly” negotiating the lease and not providing its details to the public.
Port officials have countered that Berry has proposed a competing marine terminal project, adding that they are within their right to withhold the lease to prevent providing an unfair advantage. Port officials have said the lease is also still being negotiated, and has not been finalized.
The port has also said in its legal filings that even if the lease was approved, Berry is still within his right to challenge its legality in court at a later date.
“The courts here in Corpus seem unwilling to inquire into the Port’s approval of what is described as “lease agreement” before it is signed, when in truth no member of the public has been permitted to see, or will see, it before it is signed,” Berry said in a statement. “(The lease) in reality is a secretly negotiated $2 billion dollar arrangement to construct, maintain, and operate a marine harbor/wharf complex which the Port has negotiated in violation of public disclosure and bidding laws.”
“I believe it will be voided by the Courts,” he added.
The Caller-Times requested a copy of the proposed lease on March 18, but has not yet received a response from the port on whether it plans to release the document or seek an opinion from the Texas Attorney General’s Office to withhold it.
Source: caller.com
