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Council places Phillips 66 foreign-trade-zone operations agreement on file; annual fee and one-time application to fund local program
Summary
Butte-Silver Bow will accept a foreign trade zone (FTZ) operations agreement with Phillips 66 and place the item on file. The agreement carries a $3,000 one-time application fee and a $2,500 annual fee payable to Butte-Silver Bow; staff said the FTZ is a regional designation and Phillips 66’s planned activity will not move product to Butte.
The Butte-Silver Bow Council on July 16 placed on file a proposed foreign trade zone operations agreement between the county and Phillips 66. Commissioner Thatcher moved to place the communication on file and the council voted 9-0 in favor.
City-county staff said the FTZ is a federal designation that can be used by companies to reduce tariff burdens and facilitate certain import/export and storage activities. Director Karen Burns told commissioners the $3,000 one-time application fee and the $2,500 annual fee in the agreement would be paid to Butte-Silver Bow. Burns said the county takes on no additional liability under the agreement and that the fees are intended as nominal charges to support the local FTZ administration. “We are really taking on no further and no more responsibility,” Burns said.
Attorney Scott Taylor, who worked with the county when the FTZ district was created in 2008–09, told commissioners that a modest annual fee is customary for smaller jurisdictions and can help attract users: higher fees deter participation by small and medium businesses. Taylor said most U.S. refineries and large processors that participate in FTZ programs also operate under strict federal customs and security protocols.
Commissioner Thatcher asked whether petroleum products or other materials would be moved to Butte; staff answered that Phillips 66’s refinery operations are in Billings and that the company’s use of the FTZ will not bring product to Butte. Burns also noted the FTZ structure previously supported REC Silicon and the Port of Montana for businesses seeking zone designation.
Decision: The council placed communication 2025-5376 on file by unanimous vote; no new financial obligations or changes to local policy were adopted at the meeting.
