Just in case the tens of millions of dollars spent by HOVENSA to ensure that the St. Croix oil refinery is Y2K proof, extra personnel will be on duty and a special command center set up to monitor the change of the millennium.
While Hess Oil of the Virgin Islands, the refinery’s previous owner, and HOVENSA, a joint venture company of Hess and Petroleos de Venezuela, have spent more than $12 million over the last two years to make the plant Y2K compliant, HOVENSA will still implement a contingency plan in case "something was missed," said Rene Sagebien, president and chief operating officer.
"Over 24,000 items containing microprocessors were identified and assessed with the assistance of suppliers of the equipment and technical consultants," Sagebien said. "Items that had Y2K deficiencies were then upgraded or replaced."
The refinery’s contingency plan has two elements: Additional operating and technical personnel will be on duty between 10 p.m. on New Year’s Eve and 3 a.m. on Jan. 1. The second measure the company is taking will be to set up a command center that will be manned from noon on Dec. 31 until noon on Jan. 1.
The command center will monitor reports of any Y2K incidents in the 15 time zones that will experience the rollover to the year 2000 before the Caribbean, Sagebien said. In instances where there are problems with equipment that is similar to that at the HOVENSA refinery, employees will check to see if the problem has already been corrected or they will "quickly devise a plan to address the deficiency."
Sagebien said he is “reasonably confident that all potential sources of Y2K bugs that could affect the operations of the refinery have been eliminated."
The St. Croix refinery, the largest in the Western Hemisphere, employs some 850 people and produces about 400,000 barrels of oil a day, although it has the capability to pump out 500,000 barrels a day.

Crucian basketball star Tim Duncan and the V.I. government are now officially business partners.
Gov. Charles Turnbull announced Thursday that he signed the bill that ratified the 15-year contract between Duncan, his company T.D. Enterprises, Inc and the government. The deal calls for Duncan to make three commercials a year for V.I. tourism and pay his income taxes on his NBA earnings in the territory in return for total tax breaks for his company, T.D. Enterprises.
"This agreement with Tim Duncan Enterprises," Turnbull said, "will bring much needed economic benefits to the territory and in particular St. Croix. In addition, Tim promoting the islands . . . should result in a heightened awareness of the Virgin Islands and should contribute to an increase in visitors…"
For appearing free in the tourism advertisements and the 100 percent exemptions in income, gross receipts and excise taxes, Duncan will pay taxes on his NBA income in the territory. Property taxes will also be waived on T.D. Enterprises’ executive headquarters, two merchandising outlets, and/or two sports bar locations.
In return, the V.I. government will get about one-third of Duncan’s annual $3.33 million NBA income in taxes. But the government’s take should increase substantially because Duncan is in the last year of a three-year, $10 million contract.
It’s likely Duncan’s next contract will be in the neighborhood of $70 million to $80 million over seven years. If Duncan signs such a deal the V.I. could collect, on the low end, almost $4 million a year in taxes.
Other possibilities include a shorter contract for more money each year. However, the NBA currently has an $11 million cap on what players can earn per season.
Once operational, T.D. Enterprises will manage such ventures as Duncan’s endorsement deals, which currently bring in about $2 million a year, said Duncan’s financial advisor Charles Banks in a previous interview. The company’s exemptions would save Duncan about $800,000 a year in taxes. That savings, said Banks, will likely be poured back into the business and investments in the territory.
Originally, the plan was to use the Industrial Development Commission, a program aimed at attracting investors to the territory, to obtain benefits for T.D. Enterprises, Banks said. But the IDC program restricts beneficiaries to certain businesses, he said. Duncan’s contract with the government will allow him to dabble in everything but casino gaming.
The contract also states that T.D. Enterprises’ stockholders, limited to six persons, will be exempt from personal income taxes for as long as they are residents of the territory.
Despite Turnbull’s enthusiasm for the deal, there are some tax experts in the territory who question the legality of the agreement. Some parts of the contract appear unenforceable under U.S. tax laws, the tax experts, who requested that their names not be used, said.
For one thing, it may be difficult for Duncan to establish V.I. residency in order to pay his taxes here, since he has to be outside the territory much of the year playing basketball. For another, the experts say the territory can only give benefits to V.I. source income, not income from product endorsements.
The tax experts also said the contract also gives T.D. Enterprises more generous benefits than the is allowed to give: 100 percent exemption from income tax, gross receipts tax, real property tax and excise taxes.
Even the investment income is sheltered; up to six shareholders would enjoy a 100 percent exemption on income taxes for any dividends from the company. The contract, however, does not say who the shareholders are, nor does it specifically prevent Duncan from selling the company, although the benefits are clearly tied to him.
However, Turnbull pointed out in his transmittal letter that there is a cap on the tax benefits. They may not equal more than a multiple of the amount of personal income tax Duncan pays to the Virgin Islands. In the first year, that multiple is 1.5; in 2001-02, the multiple is 1.75 and for 2003-14, the multiple is 2. If the company tax benefit falls below the maximum allowable in any given year, Duncan may carry forward a credit.

On the first day of the year 2000, while many Virgin Islanders are sleeping off the after- effects of ringing in the New Year, bird watchers on St. John and St. Croix will be out before the crack of dawn taking part in the 100th anniversary Audubon Society Christmas Bird Count.
Nearly 50,000 people in more than 1,800 locations are expected to take part in this year's bird count, traditionally conducted during a 14-day period at the end of December.
The annual bird count "started in the United States and spread across the country," Dr. Will Henderson, a St. John resident, explained. Today it involves groups in all 50 states plus "every Canadian province, parts of Central and South America, Bermuda, the West Indies and some of the Pacific islands,"
Audubon Society members on St. John have conducted the annual census of their feathered friends for the last 13 years on Christmas Day. This year, Henderson said, the count is being held a week later, on New Year's Day, to accommodate birds of a different feather — "the snowbirds." The term is used for people who regularly come to the islands in the wintertime, many staying in vacation homes or time-shares. Henderson said about half of the St. John Audubon Society members are snowbirds.
The birders — all volunteers — will fan out into the bush around the island to begin their count in the pre-dawn hours, armed with binoculars and hot beverages in vacuum bottles, and continue throughout the day. Invariably, Henderson said, someone will get a treat in the sighting of a rare species, although, he admitted this has never happened to him.
"We had a very rare one come by here on St. John last fall and has been seen several times since then," he said, "and that's the red-legged honey creeper." He described the species as "a bright blue bird with a bright blue-turquoise crown and wild red legs." The nearest place the bird is known to inhabit is Trinidad, he added.
Dennis McKinney, environmental director of the St. Croix Environmental Association, noted that hurricanes, with their destruction of natural environments, can have the effect of sending migratory birds to locations they have not previously inhabited.
On St. Croix, he said, "One observer recently saw a Chaffinch, a North African species, and he never saw it again. All you can do is speculate. When you have weather like we have, you never know what's going to turn up. After Hurricane Marilyn we had a population of flamingoes for a couple of months."
This year, for the first time since 1988 — the Christmas before Hurricane Hugo — a bird count will also be taken on St. Croix, coordinated by SEA. McKinney figures that "we may get an oddball or two that can be attributed to Lenny."
Before 1989, "There had been counts annually for as far back as I can recall on St. Croix – – at least 20 years, maybe more," McKinney said. The association had been reluctant to take on responsibility for reviving the count, he said, because this is also the time of year of its annual fund-raiser auction. Still, he said, "the motivation has always been there, because it's something that needs to get done. Data on Central America and the Caribbean are important so that scientists up north know where the birds from there go."
This year, he said, the count is taking place largely because SEA volunteer and Realtor Sheelagh Fromer agreed to take charge of organizing it. She has divided St. Croix into seven zones plus Buck Island and Green Cay (with the National Park Service leading the count at those two sites).
McKinney, a SEA staff member for the last two and a half year, figures the bird population may have changed significantly in number, if not in species variety, since the hurricane of a decade ago devastated St. Croix.
Although "the main idea is to send records up to the Audubon headquarters in New York where they crunch the numbers," Henderson said, the data collected are put to local use as well. He said the annual St. John bird count has helped local environmentalists gain a better understanding of how weather and other changes affects the number and types of birds, many of them making their seasonal migration.
"About one third of the birds that have been seen on our island are permanent residents," he said. The rest, he said, "come here to nest or come here to winter. Of course, some of them come here to summer."
Although the Audubon Society is more than 100 years old, a publication from the organization credits Frank Chapman for organizing the first bird count in December 1900. "He implored them to begin a new holiday tradition of counting birds, rather than shooting them, as had been tradition," the publication states.

Crucian basketball star Tim Duncan and the V.I. government are now officially business partners.
Gov. Charles Turnbull announced Thursday that he signed the bill that ratified the 15-year contract between Duncan, his company T.D. Enterprises, Inc and the government. The deal calls for Duncan to make three commercials a year for V.I. tourism and pay his income taxes on his NBA earnings in the territory in return for total tax breaks for his company, T.D. Enterprises.
"This agreement with Tim Duncan Enterprises," Turnbull said, "will bring much needed economic benefits to the territory and in particular St. Croix. In addition, Tim promoting the islands . . . should result in a heightened awareness of the Virgin Islands and should contribute to an increase in visitors…"
For appearing free in the tourism advertisements and the 100 percent exemptions in income, gross receipts and excise taxes, Duncan will pay taxes on his NBA income in the territory. Property taxes will also be waived on T.D. Enterprises’ executive headquarters, two merchandising outlets, and/or two sports bar locations.
In return, the V.I. government will get about one-third of Duncan’s annual $3.33 million NBA income in taxes. But the government’s take should increase substantially because Duncan is in the last year of a three-year, $10 million contract.
It’s likely Duncan’s next contract will be in the neighborhood of $70 million to $80 million over seven years. If Duncan signs such a deal the V.I. could collect, on the low end, almost $4 million a year in taxes.
Other possibilities include a shorter contract for more money each year. However, the NBA currently has an $11 million cap on what players can earn per season.
Once operational, T.D. Enterprises will manage such ventures as Duncan’s endorsement deals, which currently bring in about $2 million a year, said Duncan’s financial advisor Charles Banks in a previous interview. The company’s exemptions would save Duncan about $800,000 a year in taxes. That savings, said Banks, will likely be poured back into the business and investments in the territory.
Originally, the plan was to use the Industrial Development Commission, a program aimed at attracting investors to the territory, to obtain benefits for T.D. Enterprises, Banks said. But the IDC program restricts beneficiaries to certain businesses, he said. Duncan’s contract with the government will allow him to dabble in everything but casino gaming.
The contract also states that T.D. Enterprises’ stockholders, limited to six persons, will be exempt from personal income taxes for as long as they are residents of the territory.
Despite Turnbull’s enthusiasm for the deal, there are some tax experts in the territory who question the legality of the agreement. Some parts of the contract appear unenforceable under U.S. tax laws, the tax experts, who requested that their names not be used, said.
For one thing, it may be difficult for Duncan to establish V.I. residency in order to pay his taxes here, since he has to be outside the territory much of the year playing basketball. For another, the experts say the territory can only give benefits to V.I. source income, not income from product endorsements.
The tax experts also said the contract also gives T.D. Enterprises more generous benefits than the is allowed to give: 100 percent exemption from income tax, gross receipts tax, real property tax and excise taxes.
Even the investment income is sheltered; up to six shareholders would enjoy a 100 percent exemption on income taxes for any dividends from the company. The contract, however, does not say who the shareholders are, nor does it specifically prevent Duncan from selling the company, although the benefits are clearly tied to him.
However, Turnbull pointed out in his transmittal letter that there is a cap on the tax benefits. They may not equal more than a multiple of the amount of personal income tax Duncan pays to the Virgin Islands. In the first year, that multiple is 1.5; in 2001-02, the multiple is 1.75 and for 2003-14, the multiple is 2. If the company tax benefit falls below the maximum allowable in any given year, Duncan may carry forward a credit.

No extra precautions are being taken by the Virgin Islands Water and Power Authority for the millennium weekend, according to Patricia Simmonds, WAPA public relations officer.
"We have been prepared for a long time," Simmonds said, "and we don't anticipate any problems."
Asked whether there was a water backup system in effect, or any extra personnel on duty for the weekend, she repeated that WAPA is prepared.
At the Virgin Islands Telephone Corp., Samuel Ebbesen, president and chief executive officer, said that the company is preparing as it would when anticipating a hurricane.
"We have had Y2K compliant systems in effect for quite a while," he said, "so we aren't anticipating any problems." However, he said, the company will have additional personnel in the office and the field, and standby personnel to call in as needed.
"We are confident in our systems," Ebbesen said, noting that they have been running them for some time now.
Vitelco will be working closely with the Virgin Islands Territorial Emergency Management Agency, as is WAPA.
Calvin Wheatley, spokesperson for the West Indian Co. Ltd., said it would be business as usual for the weekend. He noted that the company has sufficient personnel and guards to cover any emergencies.
"We aren't expecting any trouble," Wheatley said.
WICO expects two ships on Dec. 31 and another two on Jan. 1.

The Moorish Influence on the Virgin Islands will be the focus of an informal discussion lead by guest speaker Jose Ortega, a native of Granada, Spain.
Ortega, who holds a Ph.D. in romance languages from Ohio State University and a Doctorate of Philosophy and letters from the University of Granada, will speak on , "Southern Spain's Moorish Jewish and Christian Heritage."
Ortega has been a visiting professor at several U.S. universities including Skidmore, the University of New Mexico and Northwestern University, according to a release from the V.I. Genealogical Society, who along with the Planning and Natural Resources' Division of Historic Preservation is sponsoring the event.
Myron Jackson, president of the Genealogical Society, said the society has over the last year tried to offer speakers like Dr. Ortega whenever minds like his pass through the territory.
"We have a shared background with Spain, " Jackson said.
"It is important to see our history as part of a larger picture," he added.
The discussion will begin at 6 p.m. on Tuesday, Jan. 4 at the V.I. Cultural Heritage Institute at 5-6 Kongens Gade.

The V.I. Bankers Association has, once again, assured the public that the banks are fully prepared for Y2K.
In a release Wednesday, Robert Haines, president of the V.I. Bankers Association, said a Gallup Poll found that nine out of 10 bank customers continue to express confidence in their bank's readiness.
In the shadow of the impending change to the Year 2000, banks have been at the center of concerns about computer glitches. A large part of the concern rests on fears there will be a run on banks by customers wanting access to their cash, fearing computer chaos when the date changes.
Haines, the local vice president for Scotiabank, said the Gallup survey that is being sponsored by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corp., "shows that as we move toward the new year, consumers are extremely confident that banks are well prepared for Y2K."
In a release earlier this month Haines said, "All of the territory's banks, both large and small, are testing and re-testing their systems to be sure that it will be business as usual during the change to 2000. Next month, next year, and every day, the safest place for your money is in the bank."
The Gallup survey results also indicate that the public remains confident that basic payment systems will work and that people will still have access to their money. Most people polled also said they thought that automatic teller machines would work, and credit card systems and electronic direct deposit systems would function normally.
Dean Adams, a member of the Bankers Association Community Relations Committee, told Radio One News that the bankers have worked hard to assure that Y2K would be a non-event.
Adams also cautioned the public not to take too much cash out of the bank for the long holiday weekend and then spend it all, leaving themselves short for repaying Christmas bills.
The Community Relations Committee has offered these tips for Virgin Islands bank customers.
They are:
1. Stay informed. Read the Y2K information your bank sends you.
2. If you don't already do so, keep your bank statements and records of your transactions, particularly the months just before the date change.
3. If you bank online, make sure your computer is Y2K compliant. Most computer and software manufacturers have extensive Websites on their products' readiness. Keep a backup disk of your records.
4. Avoid scam artists who offer to "hold" your money through the date change. The safest place for your money is in the bank.
5. During the date change, take out only as much cash, as you would need for any long holiday weekend. If you feel you need more, your bank will be ready.

A federal Interior Department audit of the Justice Department's Division of Paternity and Child Support uncovered, among other things, $8.3 million in contracts that were not put out for proper bid.
Interior's inspector general said the person responsible for supervising procurement said the division was comfortable with certain contractors and awarded subsequent contracts to those contractors.
Although the interim director of the program, Cisselon S. Nichols, said she did not concur with the findings, her memo did not say why or offer any explanation for the audit's findings.
The audit also found major flaws in the payroll process. It said the payroll section of the Justice Department regularly sent unsupported payroll documents to the Finance Department.
The audit said personnel in Justice stated that because of deadlines, the payroll was processed as though employees had routinely worked an 80-hour pay period, even when those employees had not submitted time sheets.
The report said the personnel justified the action by saying they said they would make adjustments on the next payroll. But they didn't. The audit said the adjustments weren't made if the employees didn't submit an adjusted time sheet. And Justice personnel didn't seek the adjusted time sheets from employees.
"We concluded that there was little assurance that employees of the Division of Paternity and Child Support worked the number of hours for which they were paid or were charged for the number of hours of leave used," the audit states.
In fact, auditors found evidence that old payroll registers were used to prepare current monthly payrolls summaries "because the current payroll registers were not available."
The audit also revealed the division spent $78,884 for office space that was never used and that it could be liable for $147,108 more to pay off the lease. They also spent $87,468 for construction work on the unused space.
Division officials said they believed they would eventually need additional office space. Nichols, in her response to the audit findings, said, "We must access our office space due to the addition of 20 new employees."
Nichols was not available for further comment Wednesday afternoon.

A federal Interior Department audit on the territory's Division of Paternity and Child Support uncovered, among other things, $8.3 million in contracts that were not put out for proper bid.
Interior's inspector general said the person responsible for supervising procurement said the division was comfortable with certain contractors and awarded subsequent contracts to those contractors.
Though the interim director of the program, Cisselon S. Nichols, said she did not concur with the findings, her memo did not say why or offer any explanation for the audit's findings.
The audit also found major flaws in the payroll process. It said the payroll section of the V.I. Justice Department regularly sent unsupported payroll documents to the Finance Department.
The audit said personnel in Justice stated that because of deadlines, the payroll was processed as though employees had routinely worked an 80-hour shift, even when those employees had not submitted time sheets.
The report said the personnel justified the action because they said they would make adjustments on the next payroll. But they didn't. The audit said the adjustments weren't made if the employees didn't submit an adjusted time sheet. And Justice personnel didn't seek the adjusted time sheets from employees.
"We concluded that there was little assurance that employees of the Division of Paternity and Child Support worked the number of hours for which they were paid or were charged for the number of hours of leave used," the audit states.
In fact auditors found evidence that old payroll registers were used to prepare current monthly payrolls summaries "because the current payroll registers were not available."
The audit also revealed the division spent $78,884 for office space that was never used and could be liable for $147,108 more to pay off the lease. They also spent $87,468 for construction work on the unused space.
Division officials said they believed they would eventually need additional office space. In her response Nichols said, "We must access our office space due to the addition of 20 new employees."
Nichols was not available for further comment Wednesday afternoon.

If the answers of the 100 or so people who responded to the Virgin Islands Territorial Emergency Management Agency's millennium survey are any indication, the territory is ill-prepared for Y2K.
VITEMA distributed the survey last week through the Daily News. It consisted of four multiple choice questions.
One asked if the territory is sufficiently prepared for Y2K problems. Another asked: "What do you believe will happen in 2000?" The possible answers to this: 1) the world will come to an end; 2) Christ's return; 3) World War III; 4) all of the above and 5) none of the above. Fortunately, number five was the big winner on that one.
Also asked was whether the government has done enough to prevent a territory-wide computer shutdown, and impressions about all the millennium hype. Responses to both were negative.
The agency got called everything from a "dummy," to publishing a "sophmorial" (sic) survey, and the "whole thing being a waste of time." However, Jevon Patrick, chief planner for VITEMA, took it in good humor. He said it's unfortunate people think the territory is not prepared, as VITEMA has done everything in its power to do just that.
The agency coordinates all local and federal offices in any emergency.
One innovative person, obviously a Crucian, in answer to what 2000 will bring, said "St. Croix's potholes won't be fixed, the ballpark won't be repaired and the government will take all the car insurance money."
Another survey was all crossed out with the message that "the federal government will take over the Virgin Islands, and about time!"
Patrick said he didn't feel most people took it seriously – the situation, as well as the survey.
"They don't really see the government shutting down or having major problems as a possibility," he said.
About the survey, he said he thought that most people figured, "well, I don't have to pay postage, so why not."