ELK POINT, S.D. (KTIV) - A major development for a major industrial project slated for southeast South Dakota.

A company spokesman says Hyperion Energy has declined to extend options on more than 5,000 acres of land, in Union County, for its $10 billion-dollar oil refinery.

That means the company no longer has rights to the land on which it planned to build the 400,000 barrel a day refinery, near Spink.

Spokesman Eric Williams told KTIV, Monday afternoon, that Hyperion is "evaluating our various options and opportunities."

Williams says Hyperion "appreciates the longstanding and continued support of the landowners in Union County, and are continuing to dialogue with them."

So what does the future hold for Hyperion?

Alyce Law, a landowner who lives in Des Moines, Iowa, told the Sioux Falls Argus Leader newspaper that Hyperion Vice President Preston Phillips told her Monday morning that the project was off. "He said (my option contract) is now null and void (and that) the project would not proceed," Law told the newspaper.

But, a hearing before the South Dakota Supreme Court is still set for Wednesday, in Sioux Falls, so Hyperion can argue the appeal of its air permit.

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Company Planning SD Refinery Lets Options Expire

Published: October 1, 2012, 4:40 PM

A company that planned to build a $10 billion oil refinery has allowed land-purchase options to expire on more than 5,000 acres of southeastern South Dakota farmland.

Officials with Texas-based Hyperion Refinery say the move does not mean the project has been cancelled.

Hyperion spokesman Eric Williams says the company is "evaluating our various options and opportunities."

The move comes just days before the South Dakota Supreme Court is scheduled to hear oral arguments in a case involving a state air quality permit for the refinery.

Hyperion still plans to argue the case Wednesday.