Proposed Oil Refinery in South Dakota Wrapped in Secrecy
SANCHEZ: Here's where this gets good. Wrapped in secrecy from the start, a proposed oil refinery in South Dakota has now gone public. One big support from the local community and even has the governor's blessing. But there are questions. And the biggest one is, how can a relatively unknown company pull off a $10 billion project that no other major oil company has tackled in 30 years. CNN Special Investigations Unit correspondent Drew Griffin is here tonight. We're going to talk to him in just a little bit. First, though, I want you to watch part two of his report. Here it is.</s>GRIFFIN (voice-over): Hyperion Energy, the company behind what could be the first new oil refinery to be built in the U.S. in 30 years has a fancy 15th floor air conditioned office in, where else, Dallas, Texas. But that is not where Hyperion chose to answer our questions. For answers, we were told to meet the oil refinery's project executive in a Dallas City park a few miles away. Where in 94-degree heat, we met Hyperion's Preston Phillips -- who explained to us Hyperion doesn't have a lot of experience building oil refineries, doesn't have the $10 billion in financing it will take to build the refinery yet. But says now is the time to start the project.</s>PRESTON PHILLIPS, HYPERION ENERGY: We need more refineries in the United States.</s>GRIFFIN: Is it really going to happen? They're not sure Hyperion is the company that can make this happen.</s>PHILLIPS: Well, we obviously wouldn't be spending the resources and time we have if we didn't think we could.</s>GRIFFIN: What we found out about Hyperion is it mostly has been involved in real estate dealings with oil and gas leases. Its CEO is this man, Albert Huddleston. We learned he's involved in a federal lawsuit accusing him of wasting money from his wife's trust account. She is the granddaughter of famed oil man H.L. Hunt. According to the suit filed by one of the former trustees, since his marriage to Mary, Albert has pursued a variety of businesses, always unsuccessfully. Huddleston has countersued, denying the charges, and accusing the former trustee with extortion. As for Huddleston, we were told he was travelling, not available for comment. Then we were sent this videotape, apparently taped just last week. It's Albert Huddleston talking about global politics, world wars, oil in Canada. Remember this is basically a home video statement where we couldn't ask any questions. The only time he came close to answering our big question, which is -- does Hyperion have the expertise or the money to pull this off, he said this.</s>ALBERT HUDDLESTON, CEO, HYPERION ENERGY: I am not going to go to these strategic partners and financial partners and other people until we have a permit. And if we don't get the permit, then perhaps people are right. I just don't believe that's the case.</s>GRIFFIN: Back in South Dakota, reporters for the "Sioux City Journal" have apparently had the same trouble we've had finding out about Hyperion. Mitch Pugh is the editor.</s>GRIFFIN: Huddleston did tell at least one person he has the money, Elk Point Mayor Isabel Trobaugh. But she wouldn't share the details.</s>TROBAUGH: What he told me was private. It was his own personal -- by his own personal funding and that's not public.</s>GRIFFIN: So the United States' first new oil refinery in 30 years is perhaps underway. Voters said yes. Land has been leased. And the company says if all goes as planned, a clean oil refinery will be producing gasoline right here in just six years. Just remember, there's a little matter of $10 billion yet to be found and the neighbor with growing political backing from environmentalists who says clean or not, there won't be a refinery here.</s>HARKNESS: I'll keep fighting it. They'll never build here. 150 years from now, somebody will be enjoying that land and this land.</s>SANCHEZ: Sounds like we're at a stalemate. But let's suppose that they go ahead and are able to pull this thing off. Giving them the benefit of the doubt. When you think of a refinery, you think of pollution. These words that we kept hearing "clean oil refinery." What in the heck is a clean oil refinery?</s>GRIFFIN: Here's the idea. The refinery comes with its own power plant. The power plant is powered by by-products and wastes of the refinery itself. So they have this integrated gasification combined cycle system which is supposed to reduce emissions, they say. 80 percent below what the cleanest refineries now have. So if they can get their permits, they think that they could actually produce a clean oil refinery.</s>SANCHEZ: Viewers are sitting here watching us and they say, great, can it bring my gas prices down.</s>GRIFFIN: Right. That's the bad news because 400,000 barrels a day, this would produce. We're consuming 21 million barrels a day. It's a big drop in the bucket, but it's a drop in the bucket. But hey, you've got to start somewhere.</s>SANCHEZ: A drop is a drop, right?</s>GRIFFIN: That's right.</s>SANCHEZ: Thanks, Drew. Appreciate it. Good stuff. By the way, we've got an update now on that U.S. Army lieutenant declared missing four days ago that we've been following for you. Second Lieutenant Holly Wimunc's apartment was found burning Thursday near Fort Bragg, North Carolina. We've been all over this story. There's been no sign of her since. Tonight, her parents -- pardon me, I misspoke, the parents of her husband say that their son is not a suspect. And that he is cooperating with police in this investigation. They want to make that clear. Wimunc's husband is a Marine stationed at Camp Lejeune. They are divorcing, we understand. The latest information from investigators. And we've checked -- no clues, no suspects. This one is a real mystery. And we are going to stay on top of this one for you. Also, take a look at this video. High water stopping traffic. This one we told you about at the beginning of the newscast. It's not the only concern, by the way. This is in Arizona, Tempe. Look at that. Jacqui Jeras breaking it down for us. She's straight ahead.