Gov. John deJongh Jr. Monday urged the V.I. Senate to ratify the proposed fourth amendment to the Hovensa concession agreement, calling the vote slated for Wednesday "a very critical decision" with clear choices.

"Do we want to have the refinery sold so that we can find an alternative use for the land?" the governor asked during a morning media teleconference. The option, he said, is "the prospect of litigation or a bankruptcy filing by Hovensa."

The amendment was the result of a long series of negotiations between Hovensa and the government. Hovensa entered the meetings unprepared to sell the shuttered refinery, preferring instead to operate an oil storage facility.

"During 16 months of negotiations, we worked with the owners of Hovensa to move away from their wanting an aging and idled refinery on the island’s south shore to a position where they are prepared to engage a sales process. That is what we seek approval for this week from the 30th Legislature – the ability to take the first step towards selling the refinery. And a sale is the only way we can look forward to oil refining on St. Croix again," deJongh said.

The Legislature will vote Wednesday on whether to ratify or reject the agreement, which both sides have signed off on. If approved, it gives the company one year to find a buyer, during which part of its payment in lieu of taxes will be reduced.

In a "worst case scenario," if the company does not find a buyer, then the deferred payments will be reimbursed to the government and the third concession agreement, which governs operation of the refinery, will continue in full force, deJongh said.

During two lengthy sessions discussing the amendment, some senators urged the government to re-negotiate and seek a better deal. That is not an option, deJongh said.

The governor warned that if the Legislature rejects the agreement, "litigation or a bankruptcy filing from the company will most certainly follow." He challenged the senators opposing the amendment to identify where the government will get the millions of dollars he said would be required to conduct the protracted lawsuit likely to follow rejection of the agreement.

"A no vote by the Senate … should be the clarion call for the lawmakers to at the same time, identify the funds for a legal battle against the refinery’s owners. And that will be just the beginning," he said.

The agreement is not a "cure-all" for the economy, but a first step. A new owner will need to obtain a new agreement to operate the concession, and the Senate will be a player in those discussions, he said.

He also acknowledged that some in the community see the negotiations as a way to "get back" at the refinery owners "for all of the shortcomings that we as a territory believe we have experienced since the refinery opened in 1965."

"While I respect the opinion of those who believe that the future of St. Croix and of the territory is better without an operating refinery, it is not an opinion I share or one that I can support," he said.

He urged the opponents to see beyond past complaints.

"We must see this as the opportunity to come within reach of identifying a new owner and using that new relationship to more clearly define the territory’s relationship with the refinery’s owners and operators," he said.

The closure of the refinery resulted in diminished opportunities for dozens of Virgin Islands businesses, cost the territory $580 million in gross economic output and $100 million in tax revenue, according to the governor.

"More significantly, some 2,471 Virgin Islanders lost their jobs – 12 percent of the territory’s workforce representing 27 percent of average gross pay in St. Croix’s private sector. The closure also cut off major financial support to community organizations, government agencies and students seeking scholarships to advance their educations.

“We understand what we have lost and what we need to get back,” de Jongh said.

The governor dismissed a suggestion that bankruptcy proceedings could be avoided if the facility were only allowed to function as a fuel storage terminal. The company has indicated its plans to exit that business as well, focusing on becoming an energy exploration and developing company, the governor told reporters. Even if that were not the case, he said the environmental risks of a storage depot do not justify the economic benefits to the territory, and he would not support the plan.

“My position has been all along that there will be no long term oil storage business on St. Croix that is not part of getting a refinery operating and keeping it operating,” deJongh said.

The governor closed his address by reminding the public of the importance of ushering forward a deal, and the high price of obstinacy from legislators.

“Short of approval of the agreement, the sale of the refinery and resuming of operations, the territory faces a much longer road to economic recovery, especially on St. Croix,” de Jongh said.