CUC reevaluating tank cleanup option

The Commonwealth Utilities Corp. is reevaluating whether to go ahead with the cleanup of a 20,000-barrel fuel tank or to build a new one.

During a meeting last week, the board said it wants to know whether the cleanup would be cost-effective.

“A re-evaluation will be made if it’s worth to refurbish the tank or just build a new tank,” said board member Joseph Torres.

Right now, CUC said the tank is filled with waste oil from another company. The private company, which reportedly collects used oil from hotels and other establishments on island, had used the tank after it had undergone cleanup.

“We’re actually at a loss why the management agreed to such an arrangement. After a cleanup, it allowed a company to use it [tank] as storage for its waste oil,” said Torres.

Earlier, CUC authorities disclosed that of its four existing fuel tanks, only two are functional. The agency’s lack of capacity to store extra fuel contributed to the recent power outages on the island.

The CUC board has said that the outages could have been avoided despite a delay in the arrival of fuel shipment if CUC had enough number of fuel storage tanks.

The CUC management had blamed the outages on the late arrival of Mobil Marianas’ fuel shipment early this month. CUC said the fuel shipment was originally set to arrives Friday, June 4, but it came Tuesday, June 8. Mobil reportedly told CUC that the delay was due to storm and high seas in Singapore and the Philippine Sea. Mobil shipment for CUC usually arrive every 28 days from Singapore.

“Unfortunately, the power plant did not receive notice of late shipment of fuel,” said CUC.

Prior to this, the CUC cited its old and broken power plant engines as the cause of power outages. CUC has described the power situation on Saipan as “very critical,” citing the lack of a power reserve.

CUC said that engine 2 in its main power plant has been fixed. Engine 3 remains down, while engine 5 is partly operational. Other five engines are working but these are also overdue for overhaul.

Meantime, CUC’s functioning tanks can accommodate 12,000 barrels of fuel each. Tank 3 has been down due to reported leaks but it expected to be operational by end of the month.

CUC executive director Lorraine A. Babauta previously said that the management entered into an agreement with the private company to use it again as storage tank for used oil.

Babauta said that the company expressed willingness to share with the cleanup cost this time.