Virgin Islands Wins a Deal from Hess

Leon Hess' bark is worse than his bite. For all his heavy-handed tactics, (See MM, April, }980) the chairman of the Amerada Hess Corporation has settled his contract dispute with the Virgin Islands-for the most part, on the government's terms.

The new contract, approved by the Virgin Islands' senate in early May, stipulates that the Hess company will:

• pay a two cents per barrel fee on oil produced
• pay more than double its current level of property taxes, to total about $10 million
• sell fuel below market cost to the Water and Power Authority
• increase employment training and hiring for technical, supervisory, and management positions
• build a $3 million vocational school
• resume expansion of its refinery.