TAFT, Texas — Residents in Taft gathered Friday to hear from DRL Refineries about the company’s proposal to build a new refinery just south of the city, a project valued at more than $1 billion.
The company is looking to build an oil refinery south of Taft on FM 631.
David Luetchford, Refinery Director with DRL, told attendees the refinery would produce gasoline, diesel and marine fuel oil, with products shipped by pipeline to existing docks along the Corpus Christi Ship Channel.
“It’s all subject to the community being interested or cooperative,” Luetchford said during Friday's meeting.
Luetchford said the company will assist in building utilities such as sewage and fiber cables to meet the demand of the potential facility.
Regarding sewage, Luetchford said, “We’re going to pay for helping to upgrade that system to make it more reliable for you in general,” estimating the cost at about “three quarters of a million.”
Water use was a key topic, and Luetchford said DRL plans to drill wells on-site for industrial use.
“We will need a net amount of fresh water. Well, there isn’t any available,” he said. “We’re not stealing your water here. This water is not friendly. Its water is brackish and sour.”
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When asked if DRL knew how many gallons per day the refinery would require, Luetchford said he could not remember the number but that it was a “small” amount.
Luetchford said the company expects to contribute “approximately $11-12 million per year in taxes,” with a proposed $7 million going to Taft Independent School District.
In addition, DRL is offering $3 million more toward "local Taft projects" in what Luetchford described as a “gift.”
“It’s not a bribe. It’s not slush money. It’s a gift,” he said. “Now it’s on the basis that you all spend it wisely and actually improve the fabric of this city.”
“The lenders are only interested in doing this if you, the community, believe that it will improve you,” he said. “If you don’t support this development from your community point of view, then we’re not going to do it.”
Previously, KRIS 6 reported that DRL offered the City of Taft $3 million in “discretionary spending each calendar year, toward specific social projects."
The proposal was accompanied by conditions requiring confidentiality, a performance evaluation of the city manager, and public endorsements by the mayor, city council and police chief.
When asked about those stipulations and an email that detailed the requirements, Luetchford said the requests were tied to DRL’s need for confidence in city leadership and management stability.
“Our lenders are only interested in lending money to us to do this refinery if we were confident we could actually improve the community,” he said. “I had to see evidence that the community was properly managed.”
He said one of the conditions in that email involved ensuring support for the city manager by the council and police chief.
“Because he is a key member, that position is a key member of the city management,” Luetchford said.
“I require the council, a majority, to agree to whoever is the city manager. I want them to be supportive of the city manager.”
Luetchford also addressed the termination of former Taft Police Chief John Landreth, who was removed from his position after alleged threats toward city staff.
“I didn’t have to support it, it was not my decision,” he said. “I was not disagreeable. I think the chief of police has clearly been disruptive to this city. And they’ve made a decision now, and I think it was a good decision, yes.”
He added that DRL’s goal was not to influence personnel decisions but to ensure consistent management.
“City management needs to act as a management team,” he said. “It was quite obvious that it was unclear who was the city manager. The city council needs to clearly be definitive on who is going to manage this city.”
Luetchford said DRL cannot begin construction until environmental permits are approved, but added the company expects that process to begin next year.
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