United Riverhead Chairman Catsimatidis Calls Town ‘Anti-Business’ after Withdrawing Permit Application for Biofuel Tanks

by Denise Civiletti (Riverhead Local) Oil company chairman faults Riverhead supervisor for delays, demands and obstacles -- Facing strong community opposition and a split town board, United Riverhead Terminal has withdrawn its special permit application to install six biofuel storage tanks at its Northville facility.

John Catsimatidis, chairman and CEO of parent company United Refining, expressed frustration in a phone interview today.
Catsimatidis faulted Supervisor Laura Jens-Smith for the company’s decision to withdraw its application, which he said could cost jobs at the Riverhead facility.

“Her actions and her delays and her demands — every time it comes to a settlement, there is a new demand,” Catsimatidis said. “The number of obstacles that we have had put in front of us in the last eight or nine months is unbelievable.”

“It’s ironic. I have worked very hard to help create a clear path for them to be able to put those tanks in so they could meet their state mandate,” Jens-Smith said. “I have no problem with them putting those tanks there, never did.” She said URT agreed to everything the town and the community asked.

URT, owner and operator of the petroleum storage facilities and offshore platform in Northville since 2012, said it wanted to add the biofuel storage tanks there in order to comply with a state law requiring heating oil wholesalers to sell heating oil blended with 5-percent biofuel as of July 1, 2018.

The biofuel would be blended with heating oil as well as diesel fuel at the facility’s dispensing racks.

Currently, URT is complying with state law by bringing in already-blended 5-percent biofuel by barge. It is more costly and does not allow the company to meet the needs of customers who want other blends.

URT’s application drew stiff opposition from residents opposed to an expansion of the pre-existing, nonconforming use at the 286-acre waterfront site.

The facility was constructed before zoning was adopted by the Town of Riverhead in 1965 and as such operates as a pre-existing, non-conforming use. It has since been zoned residential.

Earlier this year, Councilman Tim Hubbard brought forward a resolution to approve URT’s application — a move he made over the supervisor’s objection but with the support of council members James Wooten and Jodi Giglio. But after blowback from the community, Hubbard on Feb. 20 moved to table the resolution.

Town board members said today they were surprised by URT’s decision to withdraw its application.

Hubbard said he was “shocked” by their decision. he had expected the resolution would be brought up for a vote at the board’s next meeting April 16 and it would have the support of at least the three Republicans on the board — enough to adopt it.

Residents are worried that URT will again seek to resume gasoline storage and distribution at the facility. READ MORE