Tag Archives: Benicia CA

Wall Street Journal analyzes California fracking and crude-by-rail, discusses Valero Benicia plan, others

Repost from The Wall Street Journal
[Editor:  Following the money…  WSJ’s important analysis of refinery trends in California includes a brief discussion of current and proposed projects, including Valero Benicia, with quotes by Valero spokesperson Bill Day and Andrés Soto on behalf of Benicians For a Safe and Healthy Community.  Significant quote: “Opposition over safety has drawn out the permitting process in some cases, making some companies rethink their strategies. Valero Energy Corp. in March canceled plans to build an oil-train terminal near its Los Angeles refinery. But Valero still hopes to add a terminal to the company’s Benicia, Calif., plant, 35 miles northeast of San Francisco.   ¶“Every day that goes by that we’re not able to bring in lower cost North American oil, is another day that the Benicia refinery suffers competitively,” says spokesman Bill Day. The state last month asked Benicia for another safety review to better forecast the potential for derailments and other accidents.” – RS]

California Finally to Reap Fracking’s Riches

Crude-by-Rail From Bakken Shale Is Poised to Reverse State Refiners’ Rising Imports
By Alison Sider and Cassandra Sweet, Oct. 7, 2014
Tanker cars line up in Bakersfield, Calif., where Alon USA Energy recently received permission to build the state’s biggest oil-train terminal. The Bakersfield Californian/Associated Press

For the past decade, the U.S. shale boom has mostly passed by California, forcing oil refiners in the state to import expensive crude.

Now that’s changing as energy companies overcome opposition to forge ahead with rail depots that will get oil from North Dakota’s Bakken Shale.

Thanks in large measure to hydraulic fracturing, the U.S. has reduced oil imports from countries such as Iraq and Russia by 30% over the last decade. Yet in California, imports have shot up by a third to account for more than half the state’s oil supply.

“California refineries arguably have the most expensive crude slate in North America,” says David Hackett, president of energy consulting firm Stillwater Associates.

Part of the problem is that no major oil pipelines run across the Rocky Mountains connecting the state to fracking wells in the rest of the country. And building pipelines is a lengthy, expensive process.

Railroads are transporting a rising tide of low-price shale oil from North Dakota and elsewhere to the East and Gulf coasts, helping to keep a lid on prices for gasoline and other refined products.

Yet while California has enough track to carry in crude, the state doesn’t have enough terminals to unload the oil from tanker cars and transfer it to refineries on site or by pipeline or truck.

Just 500,000 barrels of oil a month, or 1% of California’s supply, moves by rail to the state today. New oil-train terminals by 2016 could draw that much in a day, if company proposals are successful.

Bakken oil since April has been about $15 a barrel cheaper than crude from Alaska and abroad, according to commodities-pricing service Platts. That would cover the $12 a barrel that it costs to ship North Dakota crude to California by rail, according to research firm Argus.

The state’s lengthy permitting process has contributed to the shortage of oil-train terminals. Some California lawmakers also want to impose fees on oil trains to pay for firefighting equipment and training to deal with derailments and explosions. And community and environmental activists have been waging war on oil trains. The dangers of carrying hazardous materials by rail were underscored Tuesday when a train carrying petroleum derailed in Canada.

But energy companies recently won two hard-fought victories that will pave the way for California to get more crude by rail.

Kern County officials last month gave Alon USA Energy Inc. permission to build the state’s biggest oil-train terminal. That project, which the company hopes to finish next year, is designed to receive 150,000 barrels of oil a day in Bakersfield, Calif., 110 miles north of Los Angeles.

The site was home to an asphalt refinery until 2012 when Alon shut it down because it struggled to turn a profit. Alon plans to reconfigure and restart the plant, but much of the oil transported there by train will move by pipeline to other companies’ refineries in California.

Plains All American Pipeline LP says it plans to open a 70,000-barrel-a-day oil-train terminal in Bakersfield this month.

And in northern California, a judge last month dismissed a lawsuit brought by environmental groups that challenged Kinder Morgan Inc.’s rail permits. The company is now receiving oil trains at a Richmond, Calif., terminal near San Francisco that was built to handle ethanol.

Opposition over safety has drawn out the permitting process in some cases, making some companies rethink their strategies. Valero Energy Corp. in March canceled plans to build an oil-train terminal near its Los Angeles refinery. But Valero still hopes to add a terminal to the company’s Benicia, Calif., plant, 35 miles northeast of San Francisco.

“Every day that goes by that we’re not able to bring in lower cost North American oil, is another day that the Benicia refinery suffers competitively,” says spokesman Bill Day. The state last month asked Benicia for another safety review to better forecast the potential for derailments and other accidents.

Several oil-train explosions in the last 15 months—including last year’s blast in Lac-Mégantic, Quebec, that killed 47 people—have struck fear in many residents along rail corridors.

“These railcars are not safe at any speed,” says Andrés Soto, a musician from Benicia who has helped organize campaigns against several oil-train projects. “We don’t see that there’s any way that they can actually make these projects fail-safe.”

Environmental-impact challenges have been one means that groups have used to delay oil trains.

Pittsburg, Calif., officials say WesPac Midstream LLC’s proposed oil-train terminal is on hold after the state attorney general asked for an expanded environmental review. The company is gathering answers for regulators and hopes to gain approval and start accepting oil trains at the site by late 2016, 40 miles east of San Francisco, a WesPac spokesman says.

Even if oil trains are kept off California tracks, more fracked crude still could flow to California. A 360,000-barrel-a-day oil-train terminal in Vancouver, Wash., aims to transfer North Dakota crude from tanker cars to barges that will sail the Columbia River about 100 miles northwest to the Pacific Ocean. From there, it is a quick trip down the coast to California ports.

That project also has faced stiff headwinds. Refiner Tesoro Corp. and transportation provider Savage Cos. were forced to postpone the start for the Vancouver terminal because of approval delays. While the governor hasn’t approved the project, the companies say they expect to be up and running next year.

Solano County hosts community meeting on oil train safety issues [Mon. 9/29. 6pm, Fairfield]

Repost from The Vallejo Times-Herald
[Editor:  Regrettably, Solano County invited Valero Benicia Refinery and Union Pacific Railroad to make panel presentations at this “Community Conversation,” but did not invite Benicia’s officially recognized grassroots opposition organization,  Benicians For a Safe and Healthy Community (BSHC) to present.  Benicia is one of seven cities in Solano County.  Language used by the County in its original announcement of this “discussion” presumed an inevitable permitting of crude by rail in our area, even as permitting is being hotly debated here.  The updated announcement is clearer, but still used the verb will rather than would: “Proposals to process crude oil delivered by rail will change the mix of materials coming into and passing through Solano County.”  Under pressure to invite an environmentalist, the County invited oil and energy analyst, author, journalist and activist Antonia Juhasz to join the panel.  Juhasz has written three books: The Bush Agenda, The Tyranny of Oil, and Black Tide.  Oddly, the County’s recently updated publicity does not mention Juhasz.  BSHC and The Benicia Independent encourage everyone to attend.
…See also the news release on the Solano County website, and a similar article in The Benicia Herald and a better one in The Vacaville Reporter.  – RS]

Solano County to host community meeting on oil train safety issues

Times-Herald staff report, 09/26/2014 

FAIRFIELD >> Solano County will host a public meeting Monday to discuss risks posed by plans to increase oil train shipments through the region.

The meeting follows concerns raised by state, regional and local government officials about plans to ship two 50-car oil trains daily from Roseville to Benicia’s Valero refinery.

The information session will be from 6 to 8:30 p.m. in the Board of Supervisors Chambers at the County Administration Center, 675 Texas St. in Fairfield.

Last week, county officials sent a letter to Benicia asking for added measures to prevent train derailments in rural areas and protected wetlands. Also, state and Sacramento regional officials have called on the city to redo its safety analysis, saying the city has overlooked the risks of increased oil train traffic through other parts Northern California and beyond.

“The evening is about having a community conversation about our preparedness and the potential impacts from an incident along our railways,” Supervisor Linda Seifert said in a press release.

Seifert said the event format — a series of brief presentations and breakout groups — will be a facilitated discussion designed to raise awareness of the existing safety measures and identify potential gaps.

Invited speakers include representatives from the Solano County Office of Emergency Services, the Solano County Fire Chiefs Association, the Valero Benicia refinery, Union Pacific Railroad, local air quality management districts and the offices of U.S. Rep. John Garamendi and state Sen. Lois Wolk. A community perspective also will be incorporated into the lineup of speakers, county officials said.

Vallejo Times-Herald: State officials say Benicia underestimated oil train risks

Repost from The Vallejo Times-Herald

State officials say Benicia underestimated oil train risks

Officials urge city to redo Valero refinery project safety analysis
By Tony Burchyns, 09/25/2014

State officials say Benicia has underestimated the risks of running oil trains through Roseville and other parts of Northern California to the Valero refinery.

In letter to the city last week, officials from the state Department of Fish and Wildlife’s Office of Spill Prevention and Response and the Public Utilities Commission called on the city to redo its safety analysis before allowing the refinery to receive two 50-car oil trains a day.

The letter follows similar critical comments from the Sacramento Area Council of Governments, the cities of Davis and Sacramento and the University of California at Davis. Environmental groups such as the Natural Resources Defense Council and San Francisco Baykeeper also have sent letters to Benicia expressing concerns about the project.

The state officials’ letter said that total potential derailments attributable to the plan, including those outside California, should be considered in the risk study. Officials also said that the city’s draft environmental impact report paid insufficient attention to train accidents other than derailments.

“The analyses of environmental impacts, including the risk and consequences of derailments, should not be limited to the section of track between Roseville and Benicia, and track at the refinery itself,” officials wrote. “The analyses should also cover the many miles of track, the distance of which will vary depending on entry point into the state, between the state border and Roseville.”

Valero’s project description identifies North America, Texas and other locations as possible sources of crude, but direct routes through Southern California and other areas of the state and country are not analyzed.

City officials have said their analysis was limited to the Union Pacific line between Benicia and Roseville because the other rail routes are unknown or haven’t been disclosed.

The letter also criticized the city’s finding that the risk of train spills of more than 100 gallons between Rosville to Benicia would be once in 111 years. Critics have said the analysis is flawed because it relies on rail safety data that predates the nation’s crude-by-rail boom.

The letter asserts that the city’s derailment and accident rate calculations are problematic and the legal enforceability of Valero’s commitment to use tank cars that meet that highest safety standards is unclear.

Benicia has declined to comment thus far on the numerous letters received during the report’s public comment period that ended Sept. 15. However, the city plans to respond to the comments before the project’s next public hearing, which has yet to be set.

Crude-by-rail: One federal inspector oversees all California’s railroad bridges, no state oversight

Repost from The Contra Costa Times
[Editor:  The issue of bridge safety is important here in Benicia for two reasons.  Locally, we understand that Valero’s proposed oil trains would roll PAST the refinery in order to back into the offloading racks, thus coming to a stop near enough to the Benicia-Martinez bridge that, in the event of an explosion, the bridge itself could be severely impacted if not destroyed.  Beyond Benicia, our little City’s decision would impact rail lines all the way from Alberta and North Dakota, including bridges of questionable security all along the way.  – RS]

Crude-by-rail: One federal inspector oversees all California’s railroad bridges, no state oversight

By Matthias Gafni, 09/12/2014
View of the underside of the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)
View of the underside of the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)

As concerns grow over aging rail infrastructure, earthquake readiness and a dramatic increase in crude oil shipments by train, state railroad regulators are scrambling to hire their first-ever railroad bridge inspectors — two of them.

Once they are hired, the California Public Utilities Commission plans to create a state railroad bridge inventory to determine which are most at risk. That’s right — neither the state nor federal government has a list of railroad bridges for California or the rest of the country. Until that happens, the safety of California’s thousands of railroad bridges — key conduits that carry people and hazardous materials over environmentally sensitive ecosystems and near urban areas — is left up to rail line owners and a single federal inspector who splits his time among 11 states.

An Amtrak train crosses the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)
An Amtrak train crosses the Benicia-Martinez Railroad Drawbridge in Benicia, Calif., on Friday, Aug. 15, 2014. (Jose Carlos Fajardo/Bay Area News Group)

“Two more inspectors is better than none, but it’s really a Band-Aid,” said Suma Peesapati, attorney with Earthjustice, an environmental group fighting the oil rail influx. “I think there should be no crude by rail over those bridges until there’s a comprehensive look at all of them.”

No California rail bridges have failed in recent memory, but the 6.0 earthquake that rattled the Napa area on Aug. 24 provided a reminder that California must monitor its aging rail infrastructure.

Following the quake, the Federal Railroad Administration worked with Caltrans to contact railroads within a 100-mile radius and ensure bridges and tracks were inspected for damage before resuming normal operations. The Napa Valley Wine Train, which was closed for two days after the quake, had its own private inspector go over the tracks and numerous bridges, including one traversing Highway 29. The inspector gave the green light to continue running Aug. 26.

Caltrans employs 120 inspectors and 80 specialty personnel to inspect the state’s public automobile highway bridges to ensure the integrity of the elevated structures, in comparison to the one federal inspector for all of California’s rail bridges, most of which are privately owned.

Those railroad bridges are inspected, maintained and regulated by company personnel, but watchdogs say that’s far from adequate.

In its annual Railroad Safety Activity Report to the state Legislature in November, the CPUC identified the state’s railroad bridges as a “potential significant rail safety risk.”

“There are many unknown questions regarding bridge integrity that need to be answered to ensure public safety,” the report found.

The Benicia-Martinez Rail Drawbridge, built in 1930 and tucked between the automobile spans, carries hazardous material shipments across the Carquinez Strait to East Bay refineries, along with 30 Amtrak Capitol Corridor passenger trains each weekday. The bridge is owned by Union Pacific and is safe, the company’s spokesman said.

“We regularly inspect all of our bridges in California,” said Union Pacific’s Aaron Hunt. “We perform necessary maintenance required to assure the safe use of our bridges. Bridges and culverts are a critical part of our 32,000-mile network.”

Union Pacific has spent more than $42 billion on infrastructure, Hunt said, not specifying what portion of that was devoted to bridges, including $4.1 billion scheduled for this year. “These are private investments, not taxpayer dollars,” he said.

However, the state report found many bridges are owned by smaller short-line railroads that “may not be willing or able to acquire the amount of capital needed to repair or replace degrading bridges.”

Crude by rail

Concern has grown about bridge safety and rail safety in general with the increase of crude oil shipments by rail. They’ve jumped 158 percent in California from just September to December 2013, according to the state energy commission.

This year, the CPUC created the Crude Oil Reconnaissance Team to monitor the oil-by-train boom to ensure federal and state safety laws are followed.

In June, federal rail chief Joseph Szabo spoke to an Indiana newspaper about the crude-by-rail boom: “The movement of this product is a game changer. We have to rethink everything we’ve done and known in the past about safety.”

In response to the increase and some deadly accidents, including a derailment last summer in Quebec, Canada, that killed 47 people, the U.S. Department of Transportation proposed tank car safety upgrades.

As of now, about 100 rail cars of crude roll through populated areas of the East Bay each week along the BNSF line from Stockton to Kinder Morgan’s rail depot in Richmond. The route traverses the 1,690-foot-long, 80-foot-high Muir Trestle, above Alhambra Avenue in Martinez. The trestle was constructed in 1899 and rebuilt 30 years later. Those rail cars rumble through Antioch, Pittsburg, Bay Point, Martinez, and Hercules, said Contra Costa Hazardous Materials chief Randy Sawyer.

Aging

Based on total track miles and federal estimates of a bridge occurring every 1.25 miles of track, the CPUC estimates there are about 5,000 California railroad bridges.

Most are old steel and timber structures built more than 100 years ago, and “actual railroad bridge plans or records are either absent or unreliable,” the CPUC report found.

“It’s part of the infrastructure that’s dilapidated, not only in California, but across the country,” Peesapati said. “Bridges are really an example of the problem.”

American Society of Civil Engineers past President Andy Herrmann, a bridge consultant, said companies balk at releasing bridge data for competitive reasons, but he believes bridges are maintained safely.

“There’s a very strong profit motive to keep the bridges open,” Herrmann said. “Detours will cost them a fortune.”

However, the 2007 Government Accountability Office report also found that “Because bridge and tunnel work is costly, railroads typically make other investments to improve mobility first.”

Are they safe?

In 1991, a freight train traversing steep switchbacks in Dunsmuir, Siskiyou County, derailed, sending rail cars tumbling off a bridge and resulting in 19,000 gallons of metam sodium, a concentrated herbicide, leaking into the upper Sacramento River. The accident killed all vegetation, fish and other aquatic animals 45 miles downstream, rendering some invertebrate species extinct. Several hundred people exposed to the contaminated water required medical treatment in what’s still considered the worst inland ecological disaster in the state.

Although the accident was not caused by bridge failure, it led the railroad to build a derailment barrier on the Cantara Loop bridge to prevent it happening again. And the Federal Railroad Administration expressed concern about the condition of bridges generally in a wide-ranging review after the crash.

“The review was prompted by the agency’s perception that the bridge population was aging, traffic density and loads were increasing on many routes, and the consequences of a bridge failure could be catastrophic,” according to a report published in 1991, the same year as the crash.

From 1982 to 2008, records show there were 58 train accidents nationwide caused by the structural failure of a railroad bridge, causing nine injuries and about $26.5 million in damages.

State hires

As of July 2010, new federal rules require rail companies prepare bridge management programs — including annual inspections, maintenance inventories and more — that are made available to federal inspectors when asked. The Federal Railroad Administration can levy fines up to $100,000 for failure to comply.

Federal inspectors audit railroad bridge inspections done by the companies and personally perform observations of 225 to 250 bridges each year. Based on those CPUC calculations, it would take the California inspector 20 years to visit and observe all of the state’s estimated 5,000 bridges, if that was all he had to do. But in reality, it would take much longer because California’s inspector splits his time among 11 states, leaving the CPUC to conclude in its 2013 report that the feds “cannot provide adequate oversight.”

That shortfall prompted state regulators to hire their own bridge inspectors, and they have already designed a bridge evaluation form and experimented with performing inspections.

“Railroad bridges carry thousands of cars of hazardous materials and thousands of passengers daily,” said CPUC spokesman Christopher Chow. “The Federal Railroad Administration (FRA) has new, general bridge regulations … but employs only five inspectors for the entire U.S. The CPUC’s bridge inspectors will be able to augment the FRA’s efforts.”

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