Rusk — Proximity to the Keystone XL pipeline being built through East Texas is said to be one reason for continuing interest in development of a refinery in Rusk County.

The proposed refinery, which could produce 40,000 barrels a day and carries a price tag of about $220 million, would be built on a site near New London.

“(The Keystone pipeline) is crossing Texas 64 no more than about 12 to 15 miles from there,” said Miles Toler, spokesman for Rusk County Refinery, the new group pushing the development. “And of course there’s lots of pipe in the area, some railroad availability, and that property really lent itself to what we want to do.”

Toler said the refinery being planned would produce three grades of gasoline and three grades of fuel oil, including diesel and jet fuel.

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