CLEAR LAKE — The Iowa Department of Natural Resources is considering renewal of an air-quality operating permit for a large refined petroleum pipeline terminal in Clear Lake that helps supply gasoline, diesel, ethanol and other fuels to Mason City, Clear Lake, communities across North Iowa and the surrounding region.
Magellan Pipeline Company LLC has applied to renew the Title V Operating Permit for its existing terminal at 2810 Main Ave. in Clear Lake.
Despite being identified in state documents as the company’s “Mason City” facility, the petroleum terminal is physically located in Clear Lake. It serves as a regional storage and distribution point connected to a much larger pipeline system carrying refined fuel products through Iowa and other central states.
Fuel arriving through the pipeline is stored in large tanks at the Clear Lake terminal before being transferred to tanker trucks for delivery to gas stations, farms, businesses and other customers throughout the region.
The application is for continued operation of the existing facility. It is not a request to construct a new pipeline.
The terminal includes a truck-loading rack, gasoline storage tanks, distillate tanks, additive tanks and equipment used to unload ethanol, biodiesel and butane.
Several of the gasoline tanks can hold between 840,000 and 1.68 million gallons. One tank covered by the draft permit has a capacity of more than 2.8 million gallons.
The truck-loading system is rated to handle gasoline, ethanol, jet fuel and other distillates, with a permitted annual capacity exceeding 630 million gallons.
According to the DNR, the Clear Lake facility has the potential to emit up to 180.88 tons of volatile organic compounds each year.
Its other potential annual emissions include 26.33 tons of carbon monoxide, 10.53 tons of nitrogen oxides and 8.79 tons of hazardous air pollutants.
The state lists potential emissions of particulate matter, sulfur dioxide and lead at zero tons annually.
The draft permit would require the company to continue operating vapor-control equipment and complying with state and federal air-pollution standards governing gasoline terminals.
The terminal’s truck-loading rack uses a vapor combustion system designed to capture and burn gasoline vapors that otherwise could escape while tanker trucks are being filled.
The company would also be required to inspect gasoline-handling equipment each month for liquid or vapor leaks.
Initial repairs generally must be attempted within five days after a leak is discovered, with repairs or equipment replacement completed within 15 days unless the work is not immediately feasible.
The permit also requires monitoring, maintenance logs, emissions records, annual compliance certification and semiannual reports to the DNR.
State regulators said their initial review determined that the terminal meets the applicable requirements for renewal of its operating permit.
The public comment period runs from July 16 through Aug. 17, 2026.
Residents may submit written comments or request a public hearing. A hearing request must explain the person’s interest in the permit and identify the issues the person wants addressed.
The DNR will hold a hearing if officials determine there is a significant level of relevant public interest.
The public notice and permit materials are available for inspection at the Clear Lake Public Library, 200 N. Fourth St.
Written comments and hearing requests may be sent to Taylor Dailey, Iowa DNR Air Quality Bureau, 6200 Park Ave., Suite 200, Des Moines, Iowa 50321.
After the comment period closes, the DNR will review the public input and make a final decision on the permit renewal.