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CLEANUP GRANT CRITERIA
Threshold Criteria for Cleanup Grants
A. Applicant Eligibility
The City of Shelby is a legally incorporated entity in the State of Montana,
pursuant to Section 7-5-201, Montana Code Annotated (MCA). The City of Shelby
has the legal jurisdiction and authority to finance, operate and maintain
community property and services. City of Shelby is an eligible applicant for a
Cleanup Grant as a government entity created by the State Legislature.
B. Community Notification
Community notification has been critical to the proposed cleanup and
redevelopment of the Shelby Refinery site. Community involvement began several
years ago, when community officials encouraged owners to begin cleanup and
demolition of the refinery buildings. Concerned for the safety of citizens and
in particular, children who venture onto the property, owners did remove
abandoned buildings and storage tanks.
At the present time, the City of Shelby has established an agreement for
conveyance of the property when cleanup finding is secured. Within this process
the City has held four public meetings, including two combined city
council/public meetings, one Shelby Chamber of Commerce meeting and one Shelby
Merchant Association meeting to inform the community of this proposal, provide
copies for review and seek input.
These public meetings have been advertised through the Shelby Promoter, the
local weekly newspaper, KSEN/K96 Radio, and Mayor Bonderud’s weekly radio
program. Public comment, input and ideas have been incorporated into this
proposal. The City of Shelby has partnered with several groups including the
Toole County Commissioners, Port of Northern Montana, Shelby Area Chamber of
Commerce and Sweetgrass Development to promote public support and participation
in this development project. (Attachment A - Community Notification)
Comments from the community and elected officials have been incorporated into
this proposal. The following individuals and organizations support this proposal
as evidenced by their letters attached. (Attachment B – Letters of Support)
• Allan Underdal, Chairman, Toole County Commissioners
• Larry Bonderud, Executive Director, Port of Northern Montana
• Kelley Shepp, Executive Director, Sweetgrass Economic Development District
• Sean Pahut, President, Shelby Area Chamber of Commerce
• State Senator Jerry Black
• Byron Kluth, President, First State Bank
C. Letter from the State Environmental Authority
The Montana Department of Environmental Quality Director, Richard Opper, has
provided a letter of support, dated December 8, 2005, for the City of Shelby
Cleanup Grant proposal. (Attachment C – Letter, DEQ)
D. Site Eligibility and Property Ownership Eligibility
1. Site Description:
a. Site Name: Shelby Refinery
b. Site Address: The abandoned site is located in Toole County, in the corporate
city limits of Shelby, Montana. The legal description of the entire property is:
N ½ ,SE ¼, SW ¼ and that part or portion of the N ½, SW ¼, SE ¼ lying west of
the Burlington Northern Railroad Company Right of Way, all in Section 27,
Township 32 North, Range 2 West, MPM.
c. Contamination: The site is contaminated with petroleum
substances.
d. Operation History and Current Uses: The Shelby Refinery was
originally built in the spring of 1940 by the Petroleum Refining Company, a
subsidiary of Pacific National Oils. This company at the time had sixteen
producing wells in the Kevin-Sunburst field. The crude oil was brought to the
site by truck or rail and processed into gasoline. The plant, originally
designed for 500 barrel capacity, operated for just three years and then closed
for a lack of a market for their product. Newspaper records show the plant was
reactivated in 1952, with controlling interest changing again in 1954. Accounts
show the plant was temporarily shut down while company officials studied new
marketing plans and sources of available crude. No records show if or for how
long the plant operated under this new management, but town historian, John
Kavanagh, recalled the plant reopened again in the late 1960’s or early 1970’s
under the name of North Star Refinery. The intent of the plant then was to
produce jet fuel for the Glasgow Air Force Base. The vision of a fat government
contract never materialized and the plant soon went belly up again. Since that
time the plant has been abandoned. Many of the refinery structures remained
standing until the early 1990’s, when they were demolished and removed from the
site. Empty crude oil and petroleum product storage tanks were removed from the
site by Highline Salvage of Cut Bank, Montana. Four partial crude oil storage
tanks bottoms remain on the refinery site. Three tanks were originally American
Petroleum Institute standard 500-barrel above-ground storage tanks (AST), and
the fourth was originally a 50-barrel AST. The top of each tank has been cut at
approximately 16 inches above ground. Highline Salvage Company cut the tanks and
scrapped the steel.
On May 30, 1995, a buy/sell agreement for the Shelby Refinery property was
reached between the Wight Trust and Falcon Construction/ Steven and Tracy
Williamson. The agreement stated the Quit Claim Deed for the property shall be
held in escrow pending receipt of a “no action” or a “no further action” letter
from the Department of Health and Environmental Sciences, Superfund Section. No
such letter was ever received. Falcon Construction and Steven and Tracy
Williamson paid the taxes for the last decade and invested over $150,000.00 in
assessments and clean ups, but is no longer able to financially support this
project. At the same time, the Wight Trust no longer exists and there are no
trustees, therefore the property has been abandoned for failure to pay taxes.
The City of Shelby will take ownership of the property and obtain any
conveyances necessary if EPA Brownfields Cleanup funds are awarded. The City
hopes to redevelop the property for industrial park development.
e. Environmental Concerns: In October-November of 1988, a site
Investigation was conducted by MSE, Inc. of Butte, Montana for the Montana
Department of Health & Environmental Sciences (DHES), and Solid & Hazardous
Waste Bureau. MSE’s preliminary risk assessment based on results of the site
investigation states that contaminants of concern found at the site include:
2-methylnaphthalene and phenanthrene in sludges, and lead and mercury in soils.
Asbestos found around boiler units and sodium carbonate found inside one of the
buildings have since been removed from the site. Between 1991 and 1993,
chemicals remaining on site were sampled and shipped for off-site disposal. In
1995, further action was taken to cleanup the site. The tops of above-ground
storage tanks were cut off and removed to a scrap metal facility by Highline
Salvage of Cut Bank, Montana. Underground and partially above-ground piping were
removed under a permit issued by the Department of Environmental Quality (MDEQ)
Underground Storage Tank Program (permit 96-0417).
The piping was similarly taken for scrap metal by Highline Salvage. Material in
the sludge pit was removed, taken to the Shelby Landfill, a Class II site and
placed in the landfarm area.
Approximately 16 55-gallon drums of material thought to be sodium carbonate were
taken to the Shelby Landfill and stored in the special waste storage area. In
1997, another sampling was taken as to the extent of contamination remaining on
the site. Based on the investigations and available health-based cleanup
standards, the potential contaminants remaining on the Shelby Refinery site
include:
(1) approximately 915 ft3 of petroleum-based sludges contained in tank bottoms,
(2) approximately 45 yd3 of petroleum affected soil where BSW spilled onto the
ground surface,
(3) approximately 45 yd3 of petroleum-affected subsoil below a removed transfer
pump in the south tank farm area
Further sampling in 2000 confirmed the contamination depth, but groundwater
monitoring is recommended to assess if groundwater is impacted on the site and
if there has been off-site migration.
There is potential threat of the petroleum wastes on the property through direct
contact. The site is currently vacant, located in a nonresidential area, but
adjacent to motorcycle and ATV trails and horse grazing pastures. Direct contact
could occur if persons, particularly children were to wander onto the site. Any
unprotected removal of soil may also result in a threat to human health as the
soil is the environmental medium of concern.
2. The Shelby Refinery is eligible for funding without a property-specific
determination.
a.) The site is not listed or proposed for listing on the National Priorities
List.
b.) It is not subject to unilateral administrative orders, court orders,
administrative orders on consent, or judicial consent decrees issued to
or entered into by parties under CERCLA.
c.) It is not subject to the jurisdiction custody, or control of the United
States government.
3. The Shelby Refinery is:
a.) Not subject to CERCLA planned or ongoing removal action.
b.) It is not subject of a unilateral administrative order, a court order, an
administrative order on consent or a judicial consent decree that has
been issued to or entered into by the parties, or a facility to which a
permit has been issued by the U.S. or a State under the Sold Waste
Disposal Act (SWDA), the Federal Water Pollution Control Act, the
Toxic Substances Control Act (TSCA), or the Safe Drinking Water
Act.
c.) The site is not subject to corrective action under the SWDA and has a
corrective action permit or order that have been issued or modified to
require the implementation of corrective measures.
d.) It is not a land disposal unit with respect to which a closure notification
under subtitle C of the SWDA has been submitted and closure
requirements have been specified in the closure plan or permit.
e.) There is no portion of a facility at which there has been a release of
polychlorinated biphenyls (PCBs) and that is subject to remediation
under TSCA; or a portion of a facility, for which portion, assistance for
response activity has been obtained under subtitle I of the SWDA from
the Leaking Underground Storage Tank Trust Fund established under
section 9508 of the IRS Code of 1986. No property-specific
determination is needed.
4. A petroleum refinery operated at the site from 1941 to the late 1940s (MSE,
1989). Based on available information, the refinery was a comparatively small
operation, although no data on throughput was found. It is believed that crude
oil was brought to the site by truck or rail and processed into gasoline. No
information on the former operation of the refinery was found; however, crude
oil processing generally includes the following unit operations: distillation to
separate light and heavy petroleum ends; cracking to break the heavy ends into
smaller molecules; addition of lead (tetraethyl lead) and/or other additives for
improved performance; and storage and loading operations. The site has remained
relatively vacant since that time, although newspaper articles site a
reactivation in 1952, but no period of performance. The plant was again
reactivated in the late 1960s or early 1970s, but a government contract never
developed and the refinery was abandoned.
Assessments on the property reveal petroleum hydrocarbon concentration on the
site. Specifics are not known as to how the site was contaminated, but
patterning in the subsoil revealed contamination following the series of
underground piping that transported the product from the storage tanks to other
points on the refinery property. The average thickness of the petroleum impacted
soils is estimated to be 7.5 feet. The affected area appears to cover
approximately 30,000 square feet. Total estimated volume is approximately 8,333
cubic yards in-place.
5. Multiple assessments have taken place. MSE, Inc. completed a preliminary
investigation of the site. Their investigation included 3 surface samples from
0-3 inches and 2 sludge samples from storage tanks. Other tests were performed
on unknown material in 3 drums and a second fibrous material collected from
boiler units. The report recommended removal of sludge in sludge pits because of
polynuclear aromatic hydrocarbons. The report did not recommend additional
sampling of the site. During that time period, the DEQ also attempted to drill
three wells on the refinery site to investigate groundwater conditions. The
contractors encountered 5-12 feet of gravel and silt “underlain by at least 20
feet of tight, plastic clays”. No water or wet zone was encountered. The DEQ
contractor concluded the thick clay zone formed an aquitard that would restrict
the downward movement of any potential contaminants, and they did not complete
any wells. In 1995, the MDEQ State Superfund program sampled soils and sludges
on the site. The samples were analyzed for volatile organics, arsenic, cadmium,
and lead under TCLP analytical procedures. None of the sample results exceeded
practical quantitation limits for the parameters listed above. Additional
sampling was conducted in 1997. Samples were taken from around the tetraethyl
lead building and below removed buried piping as well from tank sludges. The
results indicated high levels of hydrocarbons in the sludges, but metals were
calculated to be below hazardous waste characteristic levels. The latest
sampling was conducted in 2000 when soil samples and sludge samples were taken.
The soil sample showed a small peak in the diesel range, but most of the
hydrocarbons in the sludge were heavier end hydrocarbons. An ASTM Phase I report
has been completed and Phase II work is well underway with Phase II soil
assessments complete.
a.) Additional groundwater sampling is recommended. Initial groundwater
assessment work including monitor well installation and sampling will
be completed prior to excavation of the site. Samples from the
monitoring wells will be analyzed for petroleum compounds (VPH and
EPH). Initial groundwater monitoring will determine if treating
groundwater is necessary or if natural attenuation can be completed
after the cleanup. Post-cleanup monitoring will be conducted to verify
cleanup is complete.
b.) The estimated cost of groundwater sampling is $17,900.
c.) Funding for the initial groundwater analysis work will be financed by
the City of Shelby.
d.) The workplan for groundwater sampling will be conducted this winter
and sampling will occur in the spring.
6. The City of Shelby is not potentially liable for contamination at the site
under CERCLA Section 107 as the City does not presently hold ownership of the
property, nor has it operated the facility.
9. Petroleum Sites:
a. Site ownership: The Shelby Refinery site was held by
an ownership trust in which has now been dissolved and no trustees are
available. A buy/sell agreement for the property was reached in May of 1995
between the Wight Trust and Falcon Construction and Steven and Tracy Williamson
in which the Quit Claim Deed for the property would be held in escrow pending
receipt of a “no action” or a “no further action” letter from the Department of
Health and Environmental Sciences, Superfund section. No letter was received.
Falcon Construction and Steven and Tracy Williamson paid the taxes for the last
decade and invested over $150,000 in assessments and clean-ups, but are no
longer able to financially support this project. The property has now been
abandoned for failure to pay taxes. The City of Shelby will take ownership of
the property for back taxes and obtain the necessary conveyances if EPA
Brownfields Cleanup funds are awarded. The City will then begin redevelopment of
the property.
b. Acquisition of Site: As stated above, the City of Shelby will take
ownership of the property for back taxes after funding is secured.
c. No Responsible Party for the Site: It is believed the ownership
trust did not dispense or dispose of petroleum or petroleum-based products, or
exacerbated the existing petroleum-contamination at the site. Said Trust did
initiate some cleanup measures, with the majority of analysis and cleanup work
being conducted by potential purchasers, Falcon Construction, Steven Williamson
and Tracy Williamson.
d. Clean Up by a Person Not Potentially Liable: The City of
Shelby has never dispensed or disposed of petroleum or petroleum products or
exacerbated the existing petroleum contamination at the site.
e. Relatively Low Risk: The property is of “relatively low risk” in comparison
to other petroleum sites in the state of Montana. The site is ranked a low
priority on the state Superfund Priority List. There is no viable responsible
party and the site will not be assessed, investigated or cleaned up by a person
that is potentially liable for cleaning up the site. As well, the site is not
using, nor has received Leaking Underground Storage Tank (LUST) Trust monies.
f. Judgments, Orders, or Third Party Suits: No judgment has been rendered in a
court of law or an administrative order that would require any person to assess,
investigate, or clean up the site. No enforcement action by federal or state
authorities against any party that would require any person to assess,
investigate, or clean up the site and there is no citizen suit, contribution
action or third party claim brought against the current or immediate past owner,
that would, if successful, require the assessment, investigation, or cleanup of
the site.
g. Subject to RCRA: The Shelby Refinery site is not subject to any order under
section 9003(h) of the Solid Waste Disposal Act.
h. Financial Viability of Responsible Parties: Not applicable as the current and
immediate past owners identified are not responsible for the contamination at
the site.
E. Cleanup Authority and Oversight Structure
1. Mayor Larry J. Bonderud, the Shelby city council and city building
inspector, Jim Yeagley, are the designated cleanup authority overseeing the
cleanup and removal of hazardous waste at the Shelby Refinery site. The City of
Shelby will procure the technical expertise necessary to conduct the cleanup. A
Voluntary Cleanup Plan will be submitted to remove the site from the DEQ’s State
Superfund Priority List. With the City of Shelby enrolled in a response program,
they will partner with the Department of Environmental Quality to ensure the
cleanup is protective to human health and the environment. The City will follow
all specifications from the DEQ to conduct the removal and disposal of the
petroleum waste by authorized professionals.
2. Cleanup response activities will follow all specifications and requirements
as designated by the Department of Environmental Quality State Superfund
Section. Risk of exposure will be kept to a minimum, as the Shelby landfill, a
Class II landfill accepts contaminated materials for disposal. The neighboring
properties will have minimum to no impact, as the removal, transport and
disposal will be contracted to licensed professionals. Transporting of the waste
from the site to the landfill is a short distance and all measures will be taken
to contain any risk of release to the environment. Neighboring property access
will be minimal as the affected property parallels South East Front Street, the
main road linking the industrial complex to Highway 2 and easy access to the
landfill road. In the event of necessity to access neighboring property, a
verbal agreement has also been reached with property owners; Port of Northern
Montana, Dick Irvin, Inc. and Ben Taylor Inc. to conduct the cleanup, perform
confirmation sampling, or monitor offsite migration of contamination.
F. Cost Share
The City of Shelby has secured $224,000 in matching costs with in-kind services
for this project. The in-kind services will be the cost of disposal at the
city’s Class II landfill needed in the cleanup project.
Ranking Criteria for Cleanup Grants
A. Cleanup Grant Budget
Budget Categories Project Tasks
Programmatic Costs Cleanup Planning Cleanup Activities Community Involvement
Total
Personnel 12,000.00 12,000.00
Fringe Benefits 4,200.00 4,200.00
Travel 5,000.00 5000.00
Equipment
Supplies 1,000.00 500.00 1,500.00
Contractual 10,000.00 389,710.00
Other
Total 22,200.00 10,000.00 389,710.00 500.00 422,410.00
Grant Share 22,200.00 10,000,00 165,710.00 500.00 198,410.00
Cost Share 224,000.00 224,000.00
Explanation of proposed budget items:
Personnel/Fringe Benefits: For programmatic costs related to procurement of
technical expertise, environmental contractors and other services directly
related to performance of the grant.
Travel: For regional and national Brownfields conferences.
Supplies: Mailing, copies, office supplies in the process of completing the
project and costs associated with public hearings and information dissemination
to the public on the project and its progress.
Contractual:
Cleanup Planning
Voluntary Cleanup Plan $ 10,000.00
Cleanup Activities
Source removal $148,200.00
Remediation management $ 5,510.00
Cleanup Monitoring $ 12,000.00
Source disposal $224,000.00
B. Community Need
1. The mission of the City of Shelby is to continue to make the community a
great place to live, work and raise families. With this goal in mind, city
officials are continually striving to strengthen the economic base of Shelby.
The small rural community, population of 3,306, relies heavily on agriculture
and oil and gas production for economic viability. In past years, land values
had deteriorated, crops dried up, and oil and gas activity plummeted, leaving
the community to feel the effects of their tremendous impact. Many hard working
individuals have lost employment, having to leave the area and many more sought
second jobs to sustain and provide for their families. Unemployment levels
remain relatively low, but the available jobs are low to medium wage jobs. The
trickle down affect has negatively impacted Main Street businesses further
distressing the community. These factors in which we have no control have left
city and county officials searching for economic diversification to strengthen
and fortify the economic base, providing revenue, employment opportunities and
taxable value for the benefit of all citizens.
Redevelopment of the Shelby Refinery site has the potential for tremendous
impact in the community. A private entity, HiLine Redi-Mix has made a commitment
to the property in hopes of relocating and expanding their business. HiLine Redi-Mix
would like to relocate their concrete, sand and gravel business, which presently
borders a residential neighborhood and is limited in expansion possibilities.
HiLine will construct a new concrete batch plant facility, including
infrastructure and support mechanisms as required to facilitate operations. This
relocation would also rectify the threat to human health in its present
location, as the aggregate materials used in the production of concrete create
tremendous amounts of dust within the area surrounding the plant. At the same
time, large equipment and trucks transporting materials create a safety concern
within the residential neighborhood.
The City of Shelby is working to cleanup and redevelop the Shelby Refinery site
and return it to a useful and productive component in the economic vitality of
Shelby, further expanding the industrial park complex.
2. The entire community will benefit from the cleanup and redevelopment of
the Shelby Refinery site. First and foremost, the threat to human and
environmental threat will be addressed and remediated in the cleanup of the
petroleum waste. At the present, ATV and motorcycle enthusiasts utilize property
adjacent for recreation. At the same time, adjacent property is horse grazing
pasture. These factors weigh heavily in the City’s urgency in remediating the
property. With remediation complete, tremendous potential lies in the
redevelopment of the site. Private investment in the property will provide
invaluable employment opportunities for citizens; encourage population growth in
the employment potential; increase taxable values; and generate revenue
throughout the community in construction and operation costs. Tremendous
potential lies in moving HiLine Redi-Mix to this industrial park area.
Relocating the cement plant will rectify the concern of human health in the
release of dust particles from the plant as well as vehicular safety with the
tremendous amount of trucks and equipment traveling to and from the plant.
3. The community of Shelby has corrected asbestos contamination in the old
hospital building and former job service office. The hospital building sat
dormant for well over a decade as the community attempted to address and rectify
the asbestos issue and set a plan in motion for redevelopment. The former job
service office was remediated within a short period after identifying hazardous
substances within the building. County officials did not request a cleanup grant
on either project, but did conduct cleanup and removal before renovating these
buildings. County officials issued a revenue bond for the renovation of the
hospital for an assisted living facility and city office space. The job service
office was funded through PILT (payment in lieu of taxes) funding and converted
into county office space.
In an effort to diminish the blight created by vacant service stations and fuel
distributors relocating within the community, the City of Shelby assisted these
property owners in petroleum cleanups over the last several years with disposal
of contaminated soils and clean fill-material for the sites. These properties,
many of which were vacant, posed significant threat to human health and the
environment and created blight in the community. Recently, the City of Shelby
was awarded an EPA Brownfields Cleanup Grant for the remediation and removal of
hazardous substances (asbestos and lead-based paints) in the former Shelby
Middle School. Remediation work is scheduled to begin in the next several
months, with a completion date set for late spring, 2006.
C. Sustainable Reuse of Brownfields
1. The City of Shelby is pro-active in its approach to cleanup and sustainable
reuse of brownfields sites. City officials seek workable solutions to concerns
of human health and the environment while assisting in whatever capacity they
are able to revitalize property for productive, sustainable use. The City has
assisted former brownfields cleanup in waivers of disposal fees in the city’s
Class II landfill and provided clean fill-dirt to restore sites to the original
ground surface elevations. The City was recently awarded a Brownfields Cleanup
Grant for the Shelby Middle School site and is now actively pursuing funding to
rectify similar issues in the former Bitterroot and Meadowlark schools.
Presently, the City is taking steps to prevent pollution and any health risks to
the community by removal of petroleum waste materials found on the Shelby
Refinery site creating an environmentally safe site. These sites will become
productive components in the economic redevelopment and revitalization within
the community utilizing native landscapes and the natural beauty of the prairies
surrounding it.
2. Cleanup and redevelopment of the Shelby Refinery site has the potential to
create jobs; providing employment in the cleanup phase and redevelopment of the
property as well as business expansion. It will generate revenue to area
businesses in providing supplies, materials and subcontracting services. It has
the potential to create additional business opportunities, as well as increase
the local tax base and increase property value through development.
3. The City of Shelby is continually working to promote a vibrant community
characterized by economic diversity, appropriate housing and transportation,
recreation opportunities and safety for all citizens. Working within a limited
budget, the City strives to find funding opportunities that achieve the quality
of life and economic vitality its citizens deserve. The City of Shelby is
working to increase the number of efficient, affordable housing units through a
Community Development Block Grant for Housing and Neighborhood Renewal; improve
the transportation system within the region through a regional transit study
funded through the Montana Department of Commerce; develop a 5.5 mile urban
recreational trail funded through a grant from Montana Fish, Wildlife and Parks;
update city parks and recreation areas through development of the Shelby Wild
Turkey Tree and Turf Farm; and further improve water and sewer infrastructures
to meet the needs of the community now and in years to come.
Renovation of the Shelby Refinery site is an important leg in the economic
diversity of Shelby as well as a solution to the concerns of health and safety.
Relocating HiLine Redi-Mix to the redeveloped site will have a tremendous impact
in the residential neighborhood in which it is now located, eliminating the dust
residue created, as well as traffic safety concerns in this residential area.
Redevelopment will have tremendous potential to add much-needed jobs, generate
additional business opportunities including added-value products and light
manufacturing that would complement the business mix of the community.
Redevelopment will promote a vibrant community with appropriate business sites,
safe neighborhoods and a tremendous business mix that strengthens and fortifies
the economic base of the community of Shelby.
4. The City of Shelby will use existing infrastructure, including water and
sewer. Underground water and sewer lines run along Front Street at the eastern
property boundary allowing for extensions to the redeveloped property. All
existing streets will be maintained and improvements made to ensure the safety
of those utilizing them. South East Front Street has been widened and paved in
the last several years to accommodate the great number of heavy vehicles
accessing the industrial park complex and will provide safe transport for HiLine
Redi-Mix vehicles.
5. The City of Shelby is committed to the well-being of all citizens of the
community. City officials are continually working with the community to prevent
future brownfields and identify and rectify any potential brownfields sites. The
City has developed a partnership with the Montana Department of Environmental
Quality to inventory brownfields sites in Shelby and Toole County and has
committed to workable remediation solutions. At the same time, through
appropriate zoning and urban planning, the City is promoting safe and
appropriate development, blending recreational, commercial and residential use.
The Shelby Refinery site will be revitalized for private development, but owners
will be held accountable to prevent future brownfields sites and provide
sustainable use for generation to come.
6. The City of Shelby is committed to achieving energy/efficiency building
standards within the community. Shelby Municipal Code-Title 15, Building and
Construction, addresses new construction energy efficiency requirements and will
follow all guidelines in the redevelopment of the site.
D. Creation and/or Preservation of Greenspaces/Open Spaces and Nonprofit Purpose
With Cleanup Grant approved and implemented, work will begin to redevelop the
property for industrial purposes. There is tremendous potential within the
industrial park complex to create greenspaces and open areas for employees as
well as walkers, bicyclists and recreationalists to utilize. The City will work
to maintain the natural prairie grasses and sage areas surrounding the
redevelopment site. It is the hope of the City that potential developers of the
property will also capitalize on the abundance of prairie grasses and natural
beauty surrounding the site.
E. Community Involvement
1. The Shelby Refinery Redevelopment project has been and will continue to
be a community effort involving the local city council, county commissioners,
business leaders and citizens alike. Local citizen input and ideas have been
incorporated into this redevelopment project. Local support and input has been
integral in the assessment of the property and potential redevelopment plans. As
stated earlier in this proposal, four public meetings have been held as well as
countless informal visits with citizens to inform them of this proposal and the
subsequent redevelopment. Copies of this proposal were made available at the
Shelby City Hall for review. The overall goals of the public outreach plan is to
develop partnerships at the local, state and federal levels to ensure
appropriate and sustainable cleanup and redevelopment of the site. City
officials will keep in contact with interested citizens through periodic public
meetings and information dissemination through Mayor Bonderud’s weekly radio
address, the City’s quarterly newsletter and the City’s website.
2. The City of Shelby is working closely with the Montana Department of
Environmental Quality; Toole County Commissioners; North Central RC&D; and Port
of Northern Montana to ensure appropriate and sustainable cleanup and
redevelopment of the abandoned Shelby Refinery site. A Voluntary Cleanup Plan
will be initiated to ensure appropriate measures are taken in the cleanup and
sustainability of the project. Toole County Commissioners, North Central RC&D
and Port of Northern Montana will partner in the decisions made; progress
witnessed; and results verified regarding the cleanup and redevelopment of the
site.
3. The progress of this project will continue to be communicated through
public meetings with local citizen groups, the economic development district,
Shelby Area Chamber of Commerce and Shelby Merchant Association. Information is
always available for public review and comment at Shelby City Hall. Information
will also be disseminated through weekly radio addresses by Mayor Bonderud and
the City of Shelby’s newsletter. The grant application is on the city website
and project plans and updates will be available on the website at
www.shelbymt.com as they become available. Quarterly reports will also be made
available for the city council, county commissioners and any interested party,
as well as state and federal agencies involved in the project.
4. The following community members have reviewed and discussed the
proposal and are in support of this cleanup effort.
• Toole County Commissioners: Alan Underdal, Chairman
(406) 424-8310 (County government body)
Working in partnership with city to revitalize and promote economic
growth.
• Shelby Area Chamber of Commerce: Sean Pahut, President
(406) 434-7184 (Local business group)
Working to promote and support community business and foster
economic growth.
• Port of Northern Montana: Larry Bonderud, Director
(406) 434-5203 (Local economic development authority)
Coordinating efforts with the city to develop and expand economic
diversity for Shelby and Toole County.
• Sweetgrass Development: Kelley Schepp, Director
(406) 873-2828 (Certified regional economic development
corporation) Working regionally to foster economic development.
• North Central Resource Conservation & Development Area, Inc., Dennis DeVries,
Coordinator
(406) 434-9161 (Area conservation district)
Working to promote community in housing, economic development.
F. Reduction to Threats to Human Health and the Environment
1. The funds will be used to eliminate threat to human health and the
environment through the removal and disposal of all petroleum contaminated
materials. Several site assessments verified the amount of petroleum waste
materials present in the sludges, surface and subsurface soils on the site.
Direct contact with soil contaminated with high levels of particular toxicants
could present a hazard to humans and wildlife. Trespassers are exposed to
surface soil contamination through direct contact, inhalation and ingestion.
Ecological receptors are also present in the area and may be exposed. There are
varying degrees of uncertainty in estimates of amount of exposure related to
illness, but the contaminants still represent a threat to human health and the
environment, including groundwater, fish and wildlife. Remediation of the site
will address the threat to human health and the environment.
2. The City of Shelby is working with our city inspector and local public
health department to ensure the protection of human health and the environment
in the reclamation and redevelopment of the property. The city will follow the
Department of Environmental Quality guidelines for the removal and disposal of
the petroleum wastes and submit a Voluntary Cleanup to the DEQ for review to
ensure appropriate cleanup measures are taken in the revitalization of the site.
3. Proposed restoration of the site is to remove the shallow petroleum
contaminated soil to a depth of approximately 7.5 feet. Groundwater on the site
is approximately 10-15 feet below ground surface. There is little data on the
groundwater impacts on the site. An initial groundwater analysis will include
the installation of monitoring wells and sampling will be completed prior to
excavation. Post-remediation evaluation will cost approximately $12,000 to
assess the success of the cleanup. A Voluntary Cleanup Plan will also be
completed prior to site work at an estimated cost of $10,000. Source removal of
all petroleum impacted soils (approximately 8,000 cubic yards) will be completed
at an estimated cost of $148,200 including clean fill material hauled in to
restore the site to its original ground site elevation ($56,000). Disposal of
the material at the Shelby Landfill, a Class II landfill is calculated at
$224,000. Reporting, documentation and sampling of the source removal is
anticipated at $5,510. Estimated also is approximately $22,700 in programmatic
costs and community involvement expenses. The total estimated cost of
remediation is anticipated at $422,410.00.
.
G. Leveraging of Additional Resources
1. The City of Shelby has committed $224,000.00 in services for the proposed
cleanup project. The City will utilize its Class II landfill for disposal of the
contaminated soil at $28.00/cubic yard for the estimated 8,000 cubic yards of
contaminated soil for a total of $224,000.00. In addition, the City will fund
the initial groundwater analysis prior to initiation of the cleanup grant.
2. As state above, the City of Shelby has committed $224,000.00 in services to
meet the needs of the project. The City does not foresee any additional
leveraging of funds for successful completion of the project. Upon completion of
the project, the City anticipates approximately $500,000.00 in private sector
investment/redevelopment of the site; pouring pads, constructing a building,
parking and greenspaces to make this site a productive, useful component of the
Shelby economy.
H. Programmatic Capability
1. The City of Shelby is a legally incorporated entity in the State of Montana,
pursuant to Section 7-5-201, MCA. As such, the City of Shelby has the legal
jurisdiction and authority to finance, operate and maintain community property
and services. At the same time, the City has successfully managed well over $80
million in grants and loans over the past decade. Through Mayor Bonderud, the
Shelby City Council and city building inspector, all phases of the clean-up work
will be overseen to completion. With the awarding of a 2005 EPA Brownfields
Cleanup Grant, the City of Shelby has gained invaluable knowledge and expertise
in projects of this nature. The City is working in partnership with the Montana
Department of Environmental Quality and EPA, following all prescribed guidelines
in the operation and completion of the previous Brownfields Cleanup Grant.
2. In 2005, the City of Shelby was awarded an EPA Brownfields Cleanup Grant for
the remediation and removal of hazardous substances (asbestos and lead-based
paints) in the former Shelby Middle School. The City has successfully completed
and managed numerous state and federal grant and loan packages within the
prescribed time periods. The City of Shelby has managed local, state and federal
grants and loans valued at over $80 million in the last decade. Included in
those are grants and loans for our local hospital, water and sewer
infrastructure, fire trucks and equipment, infrastructure for the Crossroads
Correctional Center and most recently, the City was awarded a housing
rehabilitation grant (HOME) totaling $450,000, which is successfully drawing to
completion in the next several months.
3. The City of Shelby was just recently awarded an EPA Brownfields Cleanup
Grant. The City has met all EPA requirements including a workplan, budget and
necessary documentation. With the workplan complete, a Request For Proposals
(RFP) is waiting issuance pending the Targeted Brownfields Assessment for
inclusion in the RFP.
4. The City of Shelby was awarded an EPA Brownfields Cleanup
Grant in 2005 for the Shelby Middle School site in the amount of $200,000. Funds
have not been drawn on the grant as of yet because of the delay in completion of
the Targeted Brownfields Assessment at the school site. The City has not asked
for any reimbursement as of yet in anticipation of the RFP process and awarding
of the cleanup contract, but project officials have gained valuable knowledge of
the program and community impact in attending the Regional and National
Brownfields Conferences
5. The City of Shelby has gained invaluable information in the strength and
focus of the Brownfields program and commitment to a community like Shelby
through the Brownfields workshops and conferences attended. Larry J. Bonderud,
Mayor of the City of Shelby was honored to moderate one of the sessions at the
2005 National Brownfields Conference and felt the experience invaluable in the
information presented, the partnerships developed and hopes shared in working to
continue to make Shelby a great place to live, work and raise families. Awarding
of a Brownfields Cleanup Grant has also enabled the City to use the grant as a
leveraging tool for other economic development projects for the benefit of the
community of Shelby.
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