Port of Vancouver releases Tesoro-Savage lease

It requires firms to have $40 million in liability insurance

By Aaron Corvin, Columbian port & economy reporter

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Tesoro Savage Lease

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Tesoro Savage redaction explainer

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The Port of Vancouver on Monday released a copy of the lease it approved for 42 acres last week with Tesoro Corp. and Savage Companies to build the largest oil-handling terminal in the Pacific Northwest.

The 429-page document shows the companies are required to maintain $25 million in "pollution legal liability insurance," which would cover, among other things, claims for "bodily injury, property damage (including third-party claims)" and "natural resources damages."

The pollution insurance would come on top of $15 million in liability insurance, according to the lease.

Citing the "deliberative process" exemption under state law, the port did not provide a copy of the draft lease before commissioners unanimously approved it on July 23. The port released the document after media, including The Columbian, made formal requests under state public records law. The port redacted parts of the lease agreement.

The oil terminal would handle up to 380,000 barrels of crude per day, hauled by train from North Dakota's Bakken site.

Commissioners approved the lease despite overwhelming public testimony against the oil terminal. But it was only a first step. That's because the Tesoro-Savage proposal must undergo an examination by the state Energy Facility Site Evaluation Council, which would make a recommendation to Gov. Jay Inslee, who has final say.

Aaron Corvin: http://twitter.com/col_econ; http://on.fb.me/AaronCorvin; 360-735-4518; aaron.corvin@columbian.com