PORT ANGELES — The state Department of Ecology, criticized by some North Olympic Peninsula residents for delays to the cleanup of the Rayonier pulp mill site, was praised Monday by Port of Port Angeles Executive Director Jeff Robb for being responsive on cleanup of the PenPly plywood mill site.
“The challenge I put to them is can you demonstrate to the community that you can be responsive, you can help this [Peninsula Plywood] site get cleaned up and restored for the citizens,” Robb told about 70 participants — some of whom chuckled — at the Port Angeles Regional Chamber of Commerce’s regular Monday luncheon.
“The indications are they are more than willing,” Robb said, adding that Ecology suggested the Port apply for a grant for cleanup of what appears to be mostly hydrocarbons — the chief component of oil — at the Marine Drive site.
“We’ve had numerous meetings,” he said. “This shows we can move forward with this site.”
Updating the audience on the port’s marine facilities master plan, Robb also said the port plans to expand Terminal 3 so it can handle tanker-size vessels 1,200 feet in length.
Jim Hallett, one of three elected port commissioners and a former Chamber of Commerce president, told the audience that cleanup of the PenPly site near Terminal 3 will require environmental permits.
Ecology spokeswoman Linda Kent said late Tuesday afternoon that she did not have any cleanup-related information on the site.
The Rayonier pulp mill on the city’s east side closed in 1998, but site cleanup is still ongoing.
A $1.5 million study of the harbor that Ecology released earlier this year found that areas of relatively high concentrations of pollution in the sediments of Port Angeles Harbor may come from a variety of sources.
Peninsula Plywood, which opened in March 2010, closed late last year after employing up to 159 workers, generating about $10 million in payroll, and owing the port, city of Port Angeles and state Department of Labor & Industries $2.4 million.
PenPly investor Grant Munro is leasing 7.5 acres of the site for storage of China-bound logs, Robb said.
The property is “still viable,” Robb added.
Robb said the port is targeting marine trades, manufacturing and support services for the 19-acre site, and that Armstrong Marine Inc. of Port Angeles, which builds custom aluminum boats and catamarans at a plant near the former Port Angeles Speedway between Port Angeles and Sequim, has expressed interest in relocating.
Owner Josh Armstrong was unavailable for comment late Monday afternoon.
“They would like better access to the water for their boats,” Chamber of Commerce Executive Director Russ Veenema said.
Bank-owned equipment is being moved from the mill, built in 1941, and should be gone within about 50 days, he said.
The port is in the process of getting specifications for a demolition permit, Robb told port commissioners at their June 11 meeting.
“You won’t see buildings as high as the smokestack, but there will be tall buildings,” he said Monday on how the property might eventually look.
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Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at paul.gottlieb@peninsuladailynews.com.

