Flint denied price break on royalty oil

High costs and low margins have led owners of Alaska’s largest oil refinery to seek price breaks on North Slope royalty oil purchased from the state, but Department of Natural Resources Commissioner Tom Irwin said he is unwilling to negotiate until Flint Hills provides financial information to justify the need for a lower price Flint has denied that request, Irwin told the Fairbanks Daily News-Miner.

The fate of the North Pole refinery remains uncertain following a May announcement that Flint would reevaluate the plant. A decision is expected by year-end.

Flint President Brad Razook told employees by email in May that three options were being considered: reconfiguring the plant; investing in upgrades to increase volume and lower costs; and selling the operation.

Flint has asked for state help several times, starting less than a year after Flint purchased the refinery from Williams, Irwin said.

“We understand how critical that plant is to Fairbanks. … But they need to show me their numbers,” he said.

If Irwin lowers the price, his decision must be approved by the Alaska Royalty Oil and Gas Development Advisory Board and the Alaska Legislature.

—The Associated Press