Everett, Wash.
Published: Monday, September 15, 2008

Paving projects back on track after shortage of liquid asphalt

By David Chircop
Herald Writer

 EVERETT -- When Tesoro halted production of liquid asphalt at its refinery in Anacortes this summer, a sudden shortage of the black goo used to make pavement fueled panic among road contractors.

The refiner turned off the spigot at the peak of the paving season, in a topsy-turvy year that had already seen the price of liquid asphalt more than double.

Heavy construction companies with unfinished road jobs were suddenly scrambling for other suppliers to deliver enough liquid asphalt material to fulfill their contracts.

Hundreds of miles of public road and highway paving projects were put on hold. There were dire predictions of cost overruns and long delays.

Less than two months later, most scheduled paving jobs have resumed, government and road construction industry officials say.

"Adjustments have been made and the paving industry is paving," said Tom Gaetz, executive director of the Washington Asphalt Pavement Association.

Gaetz said most contractors that relied on Tesoro were able to find other liquid asphalt suppliers, among them Paramount Petroleum Corp. in Seattle and U.S. Oil & Refining Co. in Tacoma -- the only remaining regional producers of liquid asphalt.

Liquid asphalt suppliers and manufacturers from British Columbia and Oregon have also helped backfill the local supply shortage.

Pavement is made from sand and gravel held together with liquid asphalt. Liquid asphalt is distilled from crude oil and constitutes about 5 percent of asphalt paving.

Soon after Tesoro ceased production of liquid asphalt in favor of more profitable petroleum products at its Anacortes plant, Cemex U.S.A. and Wilder Construction, two road construction contractors, warned Snohomish County government that they might not be able to complete road paving projects on time and on budget.

Steve Thomsen, the county's public works director, said it appears that trouble has been averted for now.

Most of the county's projects are back on track, although some contractors have been granted extensions because of the supply disruption.

"So long as we continue to have this nice weather, we'll be able to get the asphalt laid down," Thomsen said. "I'll call it a flickering green light."

Bill Brickey, plant engineer for Wilder Construction, which owns an asphalt plant on Smith Island in north Everett, said the most significant delay was a small state paving project on Highway 526 in Everett.

Brickey said Wilder, which also has asphalt plants in Whatcom and Thurston counties, wasn't as affected as some contractors because Tesoro was only a minor supplier of its liquid asphalt.

Still, he said the dip in supply resulted in local market price increases for liquid asphalt.

"I wouldn't call it a crisis," Brickey said. "I would call it feeling the pinch, for sure."

Dave McCaully, construction manager with Cemex USA, which owns an asphalt plant at the mouth of Snohomish River in northwest Everett, said last month that the scarcity of asphalt prompted the company to consider closing some of its locations. Cemex has $4 million in paving projects with Snohomish County this year.

In Everett, the asphalt shortage forced KLB Construction of Mukilteo to postpone paving a nearly one-mile stretch of E. Marine View Drive, a busy truck route that loops the northern tip of the city.

Some lanes of the old road already had been torn up and were behind cones when the supply of asphalt was cut off.

Everett spokeswoman Kate Reardon said the contractor was able to find another supplier of liquid asphalt. It's now waiting for the state to test and approve the new asphalt mix.

In the meantime, Reardon said, KLB was able to stay on schedule by working on other pieces of the widening and improvement project.

"The project is still on scheduled to be completed in late spring of 2009," she said.

Todd Harrison, an assistant regional administrator with the state Department of Transportation, said most of the state's projects are back on track.

At least one will have to wait, though. Work on Highway 525 on the south end of Whidbey Island near Clinton has been suspended until at least next year because the contractor said it was unable to find enough asphalt to finish the job.



Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.
© 2009The Daily Herald Co., Everett, WA