Hess Corp caused HOVENSA to assume such tremendous debt that it never repay through its direct control over HOVIC's corporate operations and in the sole interest of Hess Corp. This action effectively rendered HOVENSA insolvent, unable to pay its lawful obligations, including those owed to the Government, as well as its obligations to fully fund the pensions owed to its former employees. As part of the closure announcement, Hess Corp representatives affirmed their intent to convert the refinery into an oil-storage terminal business in direct violation of the law and the Agreement, as well as the leases and the permits issued by the Government. This too constituted a breach of law and the Agreement. To achieve Hess Corp's goal of converting the refinery into an oil storage facility, Hess Corp proposed a series of drastic alterations to the Third Extension Agreement it claimed to be necessary to make the terminal operation viable-including, a dramatic reduction in annual real estate taxes from $14 million to $4 million; the elimination of the obligations to provide discounted fuel oil to WAPA and emergency agencies; the settlement of the Government's running environmental litigation against HOVENSA and HOVIC for the nominal amount of $3.5 million; and the extension of the duty-free treatment applicable to crude oil and fuel shipments for refining operations to refined oil products and fuel shipments for storage and terminal operations, an entirely new and separate business not contemplated in the Agreement. Hess Corp demanded that the Government immediately approve these revisions to the Agreement and have them ratified by the Legislature by April 30, 2012. The Government rejected the proposed amendments despite Hess Corp's repeated threats to cripple the economy and create in the Territory. Interim Agreements and the Fourth Extension Agreement
Hess Corp caused HOVENSA to assume such tremendous debt that it never repay through its direct control over HOVIC's corporate operations and in the sole interest of Hess Corp. This action effectively rendered HOVENSA insolvent, unable to pay its lawful obligations, including those owed to the Government, as well as its obligations to fully fund the pensions owed to its former employees. As part of the closure announcement, Hess Corp representatives affirmed their intent to convert the refinery into an oil-storage terminal business in direct violation of the law and the Agreement, as well as the leases and the permits issued by the Government. This too constituted a breach of law and the Agreement. To achieve Hess Corp's goal of converting the refinery into an oil storage facility, Hess Corp proposed a series of drastic alterations to the Third Extension Agreement it claimed to be necessary to make the terminal operation viable-including, a dramatic reduction in annual real estate taxes from $14 million to $4 million; the elimination of the obligations to provide discounted fuel oil to WAPA and emergency agencies; the settlement of the Government's running environmental litigation against HOVENSA and HOVIC for the nominal amount of $3.5 million; and the extension of the duty-free treatment applicable to crude oil and fuel shipments for refining operations to refined oil products and fuel shipments for storage and terminal operations, an entirely new and separate business not contemplated in the Agreement. Hess Corp demanded that the Government immediately approve these revisions to the Agreement and have them ratified by the Legislature by April 30, 2012. The Government rejected the proposed amendments despite Hess Corp's repeated threats to cripple the economy and create in the Territory. Interim Agreements and the Fourth Extension Agreement
2015-09-14%20USVI%20v%20Hess%20Complaint%20as%20WORD.docx