Port of Grays Harbor commissioners have given Port executive director Gary Nelson the go-ahead to negotiate the terms of a lease option with BHP Billiton for the company’s proposed Terminal 3 potash storage and shipping facility.

The resolution was signed by all three commissioners at the commission meeting July 10.

Nelson may now negotiate the terms of a lease option with BHP. No terms have been disclosed at this point.

The Port has been in negotiations with BHP for three years about a potash facility at Terminal 3, the far west terminal closest to Bowerman Airport. BHP’s vice president of projects expressed his desire to enter into a lease option agreement for the property in a letter May 29, and again in person at a commission meeting June 12, according to the resolution signed July 10.

The resolution further noted that BHP has had access to Terminal 3 and some of the surrounding properties “in order to conduct feasibility and geotechnical studies at two shortlisted sites to determine the most suitable location for its facility.” Terminal 3 is on the shortlist of two potential locations for the potash facility, the other in Vancouver, B.C.

The resolution also notes that the Port is trying to make arrangements with existing tenants and property owners in the area of the proposed potash site so that it could be included in the project. “Surrounding properties” referred to in the resolution include Willis Enterprises, which currently operates a wood chip shipping facility at Terminal 3.

The permit process continues. Meanwhile. Hoquiam city administrator Brian Shay said at a recent council meeting that BHP continues to work closely with state regulatory agencies to provide a plan for the facility that will align with environmental requirements.