“Hawaii … has two public-utility gas companies, the first having been incorporated April 15, 1903 for the purpose of supplying Honolulu with a manufactured supply of gas for fuel and illuminating purposes.”
“Ten years later, the second utility, the Hilo Gas Company was incorporated, and a franchise was obtained for manufacturing and supplying gas in the district of South Hilo on the Island of Hawaii.” (Historic Inventory of the physical, social and economic, and industrial resources of the Territory of Hawaii, 1939)
“Hilo Gas Company Formed – Articles of incorporation of the Hilo Gas Company, Ltd, were filed with the territorial treasurer yesterday, the capital stock being given as $100,000. Bids for the erection of a gas plant have already been advertised for by the company and the contract will be let the latter part of this month.” (Hawaiian Gazette, January 5, 1917)
One of the incorporators and President of the new Company was Peter Carl ‘Pete’ Beamer, “who became the patriarch of a famous music and hula clan in Hawaii”. (Downey, Civil Beat)
Hilo Gas “was engaged as a public utility in the manufacture and distribution of gas in the City of Hilo and in the nonutility business of distributing bottled liquefied petroleum gas outside of the city.” (Hawaiian Trust Co. v. United States, 1961)
Over the years, this facility manufactured water gas [a kind of fuel gas], butane, and propane. Their facility was on Ponahawai street, down by Kamehameha Highway; Hilo Gas Company constructed its original oil-gas facility on the site in 1917.
“By 1935, the facility could produce 120,000 cubic feet of gas in eight hours. The facility was upgraded periodically, and over the years included a 45,000-gallon capacity above ground fuel storage tank, two 52,000-cubic foot gas holder tanks, a gas generator, a water filter, a scrubber tower, storage tanks, gas purifiers and pressurized gas cylinders.”
“The manufactured gas process was reportedly operated 24 hours per day and involved the injection of pre-heated crude oil and steam in a fire brick-lined gas generator to produce the raw gas. The crude oil was delivered to the site by rail car and stored in the 45,000-gallon storage tank.” (Weston)
“In 1948 and 1949 Hilo Gas lost money and was in financial difficulties. In the spring of 1950, Orlando Lyman, its president and largest stockholder, approached AE Englebright, the general manager of [Pacific Refiners], for assistance in solving the problems of Hilo Gas.”
“It was first proposed that Hilo Gas should cease the manufacture of gas and buy butane from Refiners, thus saving manufacturing costs. Further negotiations, in which alternative plans were considered, proved unsuccessful.”
“About the middle of September, 1950, Lyman offered to sell his shares of Hilo Gas to Refiners or Honolulu Gas. With his stock and that of another stockholder who was willing to sell, Refiners could acquire in excess of 75% of Hilo’s stock.”
“The original plan of Refiners as controlling stockholder of Hilo Gas had been to sell the utility assets to Honolulu Gas and dissolve Hilo Gas at such a time as the directors determined to be convenient.”
“On September 27, 1950, the directors of Honolulu Gas authorized the acquisition of the assets of Hilo Gas … subject to the approval of the Public Utilities Commission.” (Hawaiian Trust Co. v. United States, 1961)
“Purchase of the recently organized Pacific Refiners, Ltd is the first step in moves which will ultimately lead to acquisition of the Hilo utility firm by the Honolulu Gas Co.” (HTH Oct 7, 1950)
“‘The purchase by Pacific Refiners and ultimately by Honolulu Gas Co. means in effect,’ Mr. Lycurgus asserted, ‘the investment of some 2,500 gas consumers in over a quarter of a million dollars in gas appliances has been saved.’ Better utility service and lower rates sum up the ultimate effects of the purchase, according to Mr Lycurgus.” (HTH Oct 7, 1950)
On May 22, 1960, a tsunami struck Hilo town, destroying many homes and businesses, and claiming 61 lives while causing $24 million in damage. The Hilo Gas Company facility was destroyed.
Following the disaster, the State of Hawaii assumed ownership of the parcel and designated it part of a tsunami buffer zone. Hilo Gas Company relocated to an inland site and recommenced operations in 1962. (Weston)
In 1960, “The gas-fired luau torch, developed by Honolulu Gas Co, has been accepted for patent by the US Patent Office … Gasco engineers first developed it in 1953, and have since made refinements.”
“The company says thousands now are used in Honolulu, and that a ‘considerable quantity’ is sold on the Mainland … Queen’s Surf had the first major installation here.” (Adv Dec 3, 1960)
What was Hilo Gas is now a part of The Gas Company, LLC dba Hawaii Gas. The Gas Company has grown to serve Oahu, Hawaii, Maui, Kauai, Molokai, and Lanai. (Legislature)
(In 1997 folks found that the former Hilo Gas site was contaminated with Poly Aromatic Hydrocarbons (PAHs), Volatile Organic Compounds (VOCs), and sulfide compounds stemming largely from Hilo Gas Company’s former activity on-site.)
(In response, the US Army Corps of Engineers (USACE) encapsulated and removed the contaminated soil in a plastic liner resembling a ‘burrito.’ The burrito was left near the site until 2004 when Hawai‘i Health Department, USACE, and the County of Hawai‘i removed the extracted soil encapsulated in the burrito and the additional soil from the second portion of the site. (EPA))
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