A pipeline company operating in Port Arthur would like to expand their operations.

Chief Financial Officer Dave Doudna and Director of Tex Terry Bay of Colonial Pipeline Company gave a presentation at the regular meeting of the Port Arthur City Council on Tuesday.

Doudna said they work with 29 refineries on the Gulf Coast including the three in Port Arthur and distribute product throughout the nation.

The company is also interested in the drilling/export market and they want to give Port Arthur an opportunity to get involved.

Doudna said the Phase I project cost is a “modest investment of $35 million” to compete with other pipeline systems.

Colonial has 28 employees at their facility on West Port Arthur Road. The overall project will be $300 million to $400 million.

“It’s an opportunity to accumulate a massive investment. Make sure Port Arthur will compete with other locations,” he said.

Colonial would receive all materials in Port Arthur and receive all sales tax through the community. The company will attempt to hire local labor.

Willie “Bae” Lewis Jr., District 5 Councilman, said there’s not many jobs in the pipeline industry. He’s encouraged, thought, the company will capture sales tax and do invoices in Port Arthur.

Phase II? Doudna said he couldn’t speak about Phase II of the project due to competitive pressures.

“There are also opportunities to look at other locations,” he said.

Lewis said abatements are for $100 million and up. The city would work with Colonial to adjust and compensate the $35 million.

“I don’t see that as a problem,” Lewis said.

Doudna said they were asking for an in lieu of agreement.

Osman Swati, District 6 Councilman, asked how many Port Arthur residents were employed by Colonial.

Doudna said they acquired Shell Oil in 2015 and experienced some turnover, so he didn’t know the number.

“We’re looking to hire qualified people in our local community,” Doudna said.

He added that Colonial has large tank farms too, and they will need additional tankage that will add workers.

Mayor Derrick Freeman asked what kind of abatement they needed.

Bay said a timeline of six to eight years would suffice.

A long overdue license will be issued to a business at the next Port Arthur City Council meeting.

The Council approved chief of police, Patrick Melvin, to issue a wrecker business permit to Felix AAA Auto Salvage at 6375 West Port Arthur Rd.

The resolution reads Felix AAA has the available equipment to tow vehicles in the city, it has drivers in the area, it has experience towing vehicles, it has experience or the ability to meet expected response time at any time of the day or night and in any type of inclement weather and the owner and investors of the business as well as the drivers can be entrusted with promptly towing vehicles without damage, securing vehicle contents, making and filing accurate record and follow towing regulations and bill properly.

Herbert Felix Sr., owner of Felix AAA, spoke at last month’s City Council meeting he has been trying to get his license since 1990. The city council approved proceeding to authorize the chief of police to issue a wrecker permit for the business.

He said he has filled out numerous applications with the city, but he was given the runaround. His applications were constantly misplaced over the years. The application would become outdated by the time a public hearing was scheduled with the city council.

Felix said he feels cheated over the years.

“I have my license, but I’m still not on rotation,” he said. “Next week they’re (the City Council) is to vote to put me on rotation. The only way someone can use my service is if they ask for me. If I’m 15 minutes late, they can give the tow to another guy (wrecker service). The wreck may be at the Orange Bridge and it will take me a while to get started and get in gear.”

Felix estimates he has lost hundreds of thousands of dollars in business because he could get a license.

Willie “Bae” Lewis Jr., District 5 Councilman, said he wanted to apologize a second time to Felix for his treatment from the city and recommend the Council appoint his wrecker service to the rotation list the next Council meeting.