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Flint Hills Alaska Refinery to Shut Amid ‘Enormous’ Costs

Flint Hills Resources LLC will begin in May to halt operations permanently at the North Pole refinery, Alaska’s largest by capacity, citing poor economics and “enormous” costs for cleaning up soil and groundwater.

The subsidiary of Koch Industries Inc. will take the extraction unit at the plant near Fairbanks out of service on May 1, ending gasoline production, and shut the No. 2 crude unit by June 1, stopping output of jet fuel and all other refined products. The Wichita, Kansas-based company said in an e-mailed statement yesterday that it will continue to sell fuels at terminals in Anchorage and Fairbanks.