Mayor Donald Peloquin said the recent purchase of the shuddered Premcor oil refinery should not upset a planned environmental cleanup of the 72-acre site near Kedzie Avenue and 131st Street.
Texas-based Valero Energy Corp. recently bought the property and all other Premcor holdings for $6.9 billion, though neither side is expected to close the deal involving the plant near Blue Island plant until late this year, Peloquin said Wednesday.
Premcor began dismantling the plant last year, a process expected to last until July. After that, the Illinois Environmental Protection Agency is scheduled to launch an environmental cleanup of the site.
Which company pays for demolition of the plant, cleanup, or fines for environmental violations over the years is for Premcor and Valero to decide, Peloquin said.
He said that he did not know what Valero’s plans for the property were, but that he did not expect them to propose another oil refinery.
Peloquin envisions developing the property into a clean-coal-burning electrical plant, but said he would entertain other ideas from the new owners.
“We’ll look at all ideas to see what’s best for the city,” he said.