At its peak, the Blue Island refinery processed 3.4 million gallons of crude oil per day, from which it produced approximately 2 million gallons of gasoline. It also produced diesel fuel, kerosene, asphalt, liquefied petroleum gas, butane, and sulfur. The facility had a contentious relationship with the local communities due to environmental concerns. The decision to close the refinery, which also has been cited over the years for various environmental violations, was based solely on economic factors, claimed the operator, Premcor Refining Group Inc.
The facility consisted of three individual buildings totaling 10,000 square feet, 16 acres of land as well as refinery and crude oil processing and storage equipment. The complexity of the acquisition was compounded by the nature of the manufacturing processes and the history of environmental violations at the site. Reich Brothers Decommissioning in conjunction with Reich Brothers, LLC’s principal acquisition team jointly considered the real estate and machinery and equipment with respect to the value and potential disposal and remediation options.
Reich Brothers acquired the facility in its entirety. The decommissioning division managed the asbestos abatement process and demolished the free-standing buildings. Our real estate department signed up multiple lessees. Finally, the acquisition division managed the auction of the machinery and equipment. The transaction, due to the combined efforts of the various divisions, enabled the seller to monetize the value of an encumbered facility efficiently and without overtaxing management time.