Tag Archives: Bakken crude

SAN FRANCISCO CHRONICLE: Benicia’s rejection of oil trains could reverberate across country

Repost from the San Francisco Chronicle

Benicia’s rejection of oil trains could reverberate across country

By Kurtis Alexander, 9/21/16 5:11pm
The Valero refinery is seen in the background behind signage for a railroad crossing on Wednesday, October 22, 2014 in Benicia, Calif. Photo: Lea Suzuki, The Chronicle
The Valero refinery is seen in the background behind signage for a railroad crossing on Wednesday, October 22, 2014 in Benicia, Calif. Photo: Lea Suzuki, The Chronicle

Benicia’s rejection of plans to bring trains filled with crude oil to Valero Corp.’s big refinery in the city was hailed Wednesday by critics of the country’s expanding oil-by-rail operations, who hope the flexing of local power will reverberate across the Bay Area and the nation.

Of particular interest to environmentalists and local opponents, who for years have argued that Valero’s proposal brought the danger of a catastrophic spill or fire, was a last-minute decision by U.S. officials that Benicia’s elected leaders — not the federal government — had the final say in the matter.

Word of that decision arrived just before the City Council, in a unanimous vote late Tuesday, dismissed Valero’s proposal for a new $70 million rail depot along the Carquinez Strait off Interstate 680. Valero had said the project would not only be safe but bring local jobs, tax revenue and lower gas prices.

“We’re pleased with the decision and the implications it will have across the country,” said Jackie Prange, a staff attorney for the Natural Resources Defense Council, one of several groups opposed to the project. “This issue is live in a number of sites across the country. This is definitely a decision that I think cities in other states will be looking to.”

As oil production has boomed across North America, so has the need to send crude via railroad. The uptick in tanker trains, though, has been accompanied by a spate of accidents in recent years, including a 2013 derailment in the Quebec town of Lac-Megantic in which a 72-car train exploded and killed more than 40 people.

The authority of communities to limit oil trains has been clouded by the assertion of some in the petroleum industry that local officials don’t have jurisdiction to get in the way. Companies like Valero have contended that railroad issues are matter of interstate commerce — and hence are the purview of the federal government.

Shortly before Tuesday’s meeting, however, Benicia officials received a letter from the U.S. Surface Transportation Board, which wrote that Valero, based in Texas, was not a railroad company and that the proposed rail terminal fell under city jurisdiction.

“It’s what I was waiting for to help me make my vote more defensible,” said Councilman Alan Schwartzman at the meeting.

Earlier this year, Valero had asked the Surface Transportation Board for “preemption” protection for the project after Benicia’s Planning Commission rejected the proposal. The plan proceeded to the City Council upon appeal.

The plan called for oil deliveries from up to two 50-car trains a day, many passing through several Northern California communities en route from the Bakken shale formation in North Dakota. Those trains would carry as many as 70,000 barrels of oil.

The company billed the project as a way to keep gasoline prices low in the absence of a major oil pipeline serving the West Coast. Crude is currently brought to the Bay Area mostly by boat or through smaller pipelines.

On Wednesday, Valero officials expressed frustration at the city’s decision.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the City Council members have chosen to reject the crude by rail project,” spokeswoman Lillian Riojas wrote in an email. “At this time we are considering our options moving forward.”

The vote directly hit the city’s pocketbook. Nearly 25 percent of Benicia’s budget comes from taxes on the oil giant, and the city coffers stood to grow with more crude. The refinery employs about 500 people, according to city records.

But the city’s environmental study showed that oil trains presented a hazard. The document concluded that an accident was possible on the nearly 70 miles of track between Roseville (Placer County) and the refinery, though the likelihood was only one event every 111 years.

The document also suggested that much of the crude coming to the Bay Area from North Dakota, as well as from tar sands in Canada, was more flammable than most.

Several cities in the Bay Area and Sacramento area joined environmental groups in calling for rejection of the project.

“The council’s vote is a tremendous victory for the community and communities all throughout California,” said Ethan Buckner of the opposition group Stand, who was among more than 100 people who turned out for the council’s verdict. “At a time when oil consumption in California is going down, projects like this are unnecessary.”

At least two other plans are in the works for oil delivery by rail elsewhere in the region — in Richmond and Pittsburg. A handful of other proposals have been put forth in other parts of California, including the expansion of a rail spur at a Phillips 66 refinery in San Luis Obispo County, which is scheduled to be heard by the county planning board Thursday.

Prange, with the Natural Resources Defense Council, said this week’s finding by the Surface Transportation Board gives cities the confidence to reject the proposed oil trains, if they wish to do so.

“It reaffirms the power of local government to protect their citizens from these dangerous projects,” she said.

U.S. oil deliveries by rail have grown quickly, from 20 million barrels in 2010 to 323 million in 2015, according to government estimates. In response, federal transportation officials have worked to improve the safety of oil-carrying cars with new regulations.

But over the past year, rail deliveries nationwide have slowed, in part because of the stricter rules as well as local opposition, falling crude prices and new pipelines.

Critics have complained that the tightened rules have fallen short, pointing to incidents like a June train derailment in Mosier, Ore., which spilled hundreds of thousands of gallons of crude into the Columbia River. Leaders in Oregon are discussing a statewide ban on crude trains.

Kurtis Alexander is a San Francisco Chronicle staff writer.
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Appeals Court Doesn’t Stop Crude Oil Rail Shipments Through Richmond CA

Repost from CBS San Francisco (5KPIX, 740AM, 106.9FM)

Appeals Court Doesn’t Stop Crude Oil Rail Shipments Through Richmond

July 19, 2016 9:22 PM
Protesters against fracked oil trains held a demonstration outside the Kinder-Morgan rail yard in Richmond on September 4, 2014. (CBS)
Protesters against fracked oil trains held a demonstration outside the Kinder-Morgan rail yard in Richmond on September 4, 2014. (CBS)

SAN FRANCISCO (CBS SF) — A state appeals court upheld dismissal of a lawsuit in which environmentalists sought to challenge crude oil rail shipments through Richmond.

A trial judge’s dismissal of the lawsuit was upheld in court Tuesday in San Francisco. The court said Communities for a Better Environment, known as CBE, and other groups missed a state law’s six-month deadline for challenging a lack of environmental review for the shipments.

A three-judge panel said the California Environmental Quality Act didn’t allow an exception to the deadline even though the groups said they couldn’t have discovered the project sooner.

“Ultimately, CBE’s arguments about the proper balance between the interests of public participation and of timely litigation are better directed to the Legislature, not this court,” Court of Appeal Justice Jim Humes wrote for the court.

The panel unanimously upheld a similar ruling in which San Francisco Superior Court Judge Peter Busch dismissed the lawsuit in 2014.

The crude oil is carried by the Texas-based Kinder Morgan energy company in railroad tanker cars from North Dakota’s Bakken shale formation to Kinder Morgan’s Richmond terminal, where it is transferred to tanker trucks.

The shale oil is extracted through hydraulic fracturing, or fracking, and horizontal drilling.

The environmental groups contend that shale crude oil, which is lighter than other types of crude oil, is dangerous because it is more explosive in the event of a derailment. They also say fumes emitted during the oil transfers harm human health.

The groups sued the Bay Area Air Quality Management District in March 2014 after discovering that the agency had quietly issued a permit for the project in July 2013 without requiring an environmental impact report.

The permit allowed Kinder Morgan to change its previous ethanol facility to the crude oil facility.

In addition to CBE, the plaintiffs were the Natural Resources Defense Council, Asian Pacific Environmental Network and Sierra Club. They were represented by the Earthjustice law firm.

They argued that a report should have been required under the CEQA law, while the air district and Kinder Morgan contended no report was needed because granting the permit was a ministerial rather than discretionary decision.

But the issue of whether there should have been an environmental report was never reached in court because Busch ruled, and the appeals court agreed, that the lawsuit was filed too late.

The appeals court said, “We acknowledge that if there were any situation in which it would be warranted to delay the triggering of a limitations period in the manner CBE urges, it would be one in which no public notice of the project was given and the project’s commencement was not readily apparent to the public.”

But the panel said that case law set by the California Supreme Court and other courts established that the Legislature made a “clear determination” that CEQA challenges must be filed within the deadline.

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Critics say oil train report underestimates risk

Repost from the Spokane Spokesman-Review
[Editor:  Oh…this sounds SO familiar….  Benicia sends solidarity and support to our friends in Washington state.  – RS]

Critics say oil trains report underestimates risk

By Becky Kramer, December 18, 2015
In this Oct. 1, 2014 file photo, train cars carrying flammable liquids heads west through downtown Spokane, Wash. | Dan Pelle photo

The chance of an oil train derailing and dumping its cargo between Spokane and a new terminal proposed for Vancouver, Washington, is extremely low, according to a risk assessment prepared for state officials.

Such a derailment would probably occur only once every 12 years, and in the most likely scenario, only half a tank car of oil would be spilled, according to the report.

But critics say the risk assessment – which includes work by three Texas consultants who are former BNSF Railway employees and count the railroad as a client – is based on generic accident data, and likely lowballs the risk of a fiery derailment in Spokane and other communities on the trains’ route.

The consultants didn’t use accident data from oil train wrecks when they calculated the low probability of a derailment and spill. The report says that shipping large amounts of oil by rail is such a recent phenomanon that there isn’t enough data to produce a statistically valid risk assessment. Instead, the consultants drew on decades of state and national data about train accidents.

That approach is problematic, said Fred Millar, an expert in hazardous materials shipments.

Probability research is “a shaky science” to begin with, said Millar, who is a consultant for Earthjustice, an environmental law firm opposed to the terminal. “The only way that you can get anything that’s even partly respectable in a quantitative risk assessment is if you have a full set of relevant data.”

To look at accident rates for freight trains, and assume you can draw credible comparisons for oil trains, is “very chancy,” he said. “Unit trains of crude oil are a much different animal…They’re very long and heavy, that makes them hard to handle. They come off the rails.”

And, they’re carrying highly flammable fuel, he said.

Terminal would bring four more oil trains through Spokane daily
The proposed Vancouver Energy terminal would be one of the largest in the nation, accepting about 360,000 barrels of crude oil daily from North Dakota’s Bakken oil fields and Alberta’s tar sands. For Spokane and Sandpoint, the terminal would mean four more 100-car oil trains rumbling through town each day – on top of the two or three per day that currently make the trip.

The proposed $210 million terminal is a joint venture between Tesoro Corp. and Savage Companies. Oil from rail cars would be unloaded at the terminal and barged down the Columbia River en route to West Coast refineries.

A spill risk assessment was part of the project’s draft environmental impact statement, which was released late last month. A public meeting on the draft EIS takes place Jan. 14 in Spokane Valley. State officials are accepting public comments on the document through Jan. 22.

The spill risk work was done by a New York company – Environmental Research Consulting – and MainLine Management of Texas, whose three employees are former BNSF employees, and whose website lists BNSF Railway as a client. The company has also done work for the Port of Vancouver, where the terminal would be located.

The risk analysis assumes the trains would make a 1,000-mile loop through the state. From Spokane, the mile-long oil trains would head south, following the Columbia River to Vancouver. After the trains unloaded the oil, they would head north, crossing the Cascade Range at Stampede Pass before returning through Spokane with empty cars.

Report used data on hazardous materials spills

Oil train derailments have been responsible for a string of fiery explosions across North America in the past three years – including a 2013 accident that killed 47 people in the small town of Lac-Megantic, Quebec. Other oil train derailments have led to evacuations, oil spills into waterways and fires that burned for days.

But since shipping crude oil by train is relatively new, there’s not enough statistical information about oil train accidents to do risk calculations, the consultants said several times in the risk assessment.

Instead, they looked at federal and state data on train derailments and spills of hazardous materials dating back to 1975, determining that the extra oil train traffic between Spokane and Vancouver posed little risk to communities.

Dagmar Schmidt Etkin, president of Environmental Research Consulting, declined to answer questions about the risk assessment. Calls to MainLine Management, which is working under Schmidt Etkin, were not returned.

Stephen Posner, manager for the state’s Energy Facilities Siting Council, which is overseeing the preparation of the environmental impact statement, dismissed questions about potential conflicts of interest.

“There aren’t a lot of people who have the expertise to do this type of analysis,” Posner said.

Schmidt Etkin also worked on a 2014 oil train report to the Washington Legislature, he said. “She’s highly regarded in the field.”

According to her company website, Schmidt Etkin has a doctorate from Harvard in evolutionary biology. The site says she provides spill and risk analysis to government regulators, nonprofits and industry groups. Her client list includes the U.S. Environmental Protection Agency, the Coast Guard and the American Petroleum Institute.

Posner reviewed the scope of work outlined for the spill risk analysis.

“We put together the best analysis we could with limited sources of information,” he said. “This is a draft document. We’re looking for input from the public on how we can make it better.”

Spokane ‘a more perilous situation’

The “worst case” scenario developed for the risk assessment has also drawn criticism. The consultants based it on an oil train losing 20,000 barrels of oil during a derailment. The risk assessment indicates that would be an improbable event, occurring only once every 12,000 to 22,000 years.

In fact, twice as much crude oil was released during the 2013 Lac-Megantic accident in Quebec, said Matt Krogh, who works for Forest Ethics in Bellingham, Washington, which also opposes construction of the Vancouver Energy Terminal.

“If I was looking at this as a state regulator, and I saw this was wrong – quite wrong – I would have them go back to the drawing board for all of it,” Krogh said.

Krogh said he’s disappointed that former BNSF employees didn’t use their expertise to provide a more meaningful risk analysis. Instead of looking at national data, they could have addressed specific risks in the Northwest, he said.

Oil trains roll through downtown Spokane on elevated bridges, in close proximity to schools, hospitals, apartments and work places. In recent years, the bridges have seen an increase in both coal and oil train traffic, Krogh said.

“The No. 1 cause of derailments is broken tracks, and the No. 1 cause of broken tracks is axle weight,” he said. “We can talk about national figures, but when you talk about Spokane as a rail funnel for the Northwest, you have a more perilous situation based on the large number of heavy trains.”

Elevated rail bridges pose an added risk for communities, said Millar, the Earthjustice consultant. The Lac-Megantic accident was so deadly because the unmanned train sped downhill and tank cars crashed into each other, he said. Not all of the cars were punctured in the crash, but once the oil started burning, the fire spread, he said.

“If you have elevated tracks and the cars start falling off the tracks, they’re piling on top of each other,” Millar said. “That’s what Spokane has to worry about – the cars setting each other off.”

Governor has the final say

Railroad industry officials say that 99.9 percent of trains carrying hazardous materials reach their destination without releases. According to the risk assessment, BNSF had only three reported train derailments per year in 2011, 2012 and 2013. The railroad has spent millions of dollars upgrading tracks in Washington in recent years, and the tracks get inspected regularly, according to company officials.

Whether the Vancouver Energy Terminal is built is ultimately Gov. Jay Inslee’s decision. After the final environment impact statement is released, the 10-member Energy and Facilities Siting Council will make a recommendation to the governor, who has the final say.

Environmental impact statements lay out the risks of projects, allowing regulators to seek mitigation. So, it’s important that the EIS is accurate, said Krogh, of Forest Ethics.

In Kern County, California, Earthjustice is suing over the environmental impact statement prepared for an oil refinery expansion. According to the lawsuit, the EIS failed to adequately address the risk to communities from increased oil train traffic.

“If you have a risk that’s grossly underestimated, you’ll be making public policy decisions based on flawed data,” Krogh said.

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