Tag Archives: Martinez CA

Plumas Co. Grand Jury: Scathing indictment of hazardous material transportation through Feather River Canyon

Repost from Plumas County News
[Editor:  This Grand Jury report is thorough and well written – an excellent resource and alarming in its analysis.  Its findings and recommendations (near the end of the report) might be a valuable resource for communities everywhere.  There are a number of references to “after-action reports.”   Question for our research: how can concerned citizens obtain such reports?  – RS]

Hazardous material transportation a roulette wheel for potential disaster

Feather Publishing

6/5/2015

Editor’s note: This is the fourth in a series of midterm reports submitted by the 2014-15 Plumas County Civil Grand Jury.

SUMMARY
Early in the morning Nov. 25, 2014, a Union Pacific freight train derailed in the Feather River Canyon just east of Belden, sending 11 railcars full of corn off the tracks and down the steep embankment. In a press statement shortly afterward, a State Office of Emergency Services official was quoted as saying, “We dodged a bullet” because the train was only carrying corn.

Based on a rash of recent derailments and spills of hazardous materials happening throughout the United States and Canada, “a bullet” in fact grossly underestimates the potential devastation, magnitude and scope of the consequences left from these horrific incidents. Luckily, it was only corn that spilled. With the recent surge in crude-by-rail domestic crude oil transports between oil fields in North Dakota, Texas, Colorado and Pennsylvania and Bay Area refineries through the Feather River Canyon, the aftermath could have wrought far-reaching disaster had it been the high-flammable Bakken crude in the tanker cars.

According to sources, the number of crude-by-rail trains passing through the Feather River Canyon has tripled in number within the past three years. With developments in hydraulic fracking technology coming about in domestic oil fields, the petroleum market has seen a profound shift from importing foreign oil to extracting it in domestic oil fields in the United States. As a result, thousands of jobs have been created and oil prices have plummeted since this recent boon in domestic oil production. In addition, other hazardous chemicals are transported throughout the United States by rail and by truck. According to the Federal Railroad Administration, only the railroads are required to know what’s in the cars they’re shipping.

The grand jury found it extremely important to examine the recent corn derailment other recent crude-by-rail disasters in the U.S. and Canada to determine whether Plumas County agencies and private transportation operators are adequately prepared in “worst-case” scenarios. In respect to the Plumas County corn derailment, because the corn was relatively harmless and could be immediately dealt with without invoking hazardous material protocols, local, state and railroad officials and crews did an excellent job in containment of the spill and clearing and repairing the tracks within the impact area.

As a result of a quick and well-coordinated response, the Feather River Canyon rail route was restored and passing rail traffic three days after the initial derailment. Nonetheless, the grand jury has found the incident to be a practical review for a county hazardous material spill and useful opportunity to compare and contrast the corn spill with other recent more disastrous spills. Plumas County did indeed “dodge the bullet,” and from this incident the grand jury believes it will provide valuable findings and recommendations which may in turn act as a catalyst and cast fresh perspectives and insights on dealing with future potential spills and hazardous material disasters.

BACKGROUND
In review of the Feather River Canyon corn spill Nov. 25, 2014, a total of 11 cars full of raw corn derailed and spilled down a steep embankment near Rich Bar. Luckily, the spill was only tons of kernels and husks, and the incident proved to have had only a minimal impact, environmentally speaking.

The corn spill turned out to be good opportunity to test the Plumas County emergency response system. The incident was first reported by Union Pacific Railroad Dispatch in Omaha, Nebraska, to the Plumas County Warning Center, stating, “12 rail cars close to Rich Bar at Hwy 70 MPM 265 on the Canyon Sub,” and that “12 rail cars loaded with grain derailed, it is unknown whether the cars are upright or on their sides, and that the derailment occurred in a canyon next to a stream or river and it is unknown at this time if the waterway was impacted.”

According to the after-action report on the incident, the State Warning Center notification included the Plumas County sheriff, California Highway Patrol, Plumas County Environmental Health, State Water Quality Board, State Department of Toxics, State Drinking Water, Cal Office of Emergency Services, U.S. Environmental Protection Agency and the California Department of Fish and Wildlife. The accident occurred around 3 a.m. Nov. 25. By 8 a.m. Union Pacific had placed containment booms 100 feet down the Feather River. Fortunately, none of the cars landed in the river and only a small amount of corn spilled into the river.

One of the important facts that should be emphasized here concerns containment supplies and where they are located. It took roughly five hours for the railroad to have containment booms in place. According the Plumas County officials, Union Pacific does not have any spill containment kits in Plumas County. A formal request from the grand jury was emailed to Union Pacific safety representatives asking about the whereabouts of containment kits — according to their response (the grand jury received a very quick email reply that day), Chico, Roseville and Reno, Nevada, were the closest railroad facilities that had emergency containment kits.

Other revelations from the after-action report revealed that the Union Pacific Railroad Dispatch Center could not pinpoint the exact location in the Feather River Canyon to the Warning Center. In addition, dispatch was not “forthcoming” on what was spilled, although the center did state that the Plumas County Sheriff’s Department was notified that “there were no injuries, no hazardous materials released, and that no assistance was needed.” The corn spill after-action report in its conclusion posted its “corrective actions from railroad incident” review. Some of the recommendations are summarized here:

—Push Union Pacific dispatch for better initial report information.

—Use GPS to pinpoint incident location.

—Coordinate with the U.S. Forest Service and the California Department of Fish and Wildlife for any incident in the Feather River Canyon.

—The incident commander for any hazardous materials incident is designated as the primary law enforcement authority.

—Follow Plumas County Hazardous Materials Response Plan.

—The Office of Emergency Services will try to find a local Union Pacific dispatch contact person.

Evidently, the cause of the corn derailment was a section of the railroad track breaking or separating. Ironically, Union Pacific reported that all railroad ties along the Feather River Canyon were replaced in 2013. Union Pacific conducts track inspections at regular intervals and reportedly it conducts Feather River Canyon inspections every three months. Nonetheless, the corn derailment exemplifies that rail accidents can happen at any time.

In respect to the other crude-by-rail spills, the same results were concluded. Train speed was not a factor and rail and bridge inspections were documented before the incidents occurred. The crude-by-rail derailments were all on relatively flat landscapes. The Feather River Canyon route, with its rocky and unstable terrain, is much more prone to outside factors that can lead to derailments.

According to 2013 Plumas County Hazard Mitigation Plan, in 2007 and in 2012 a rockslide struck and derailed passing trains. The 2007 slide derailed 22 rail cars; 20,000 gallons of peanut oil ruptured from several cars and 30,000 gallons of highly flammable denatured alcohol also spilled down the embankment. The 2012 incident was caused by a large boulder that fell onto the tracks and was struck by a Burlington Northern Santa Fe train. Over 3,000 gallons of diesel fuel spilled from the train into the Feather River.

The recent crude-by-rail spills throughout the U.S. showcase the dramatic rise in domestic oil production and rail shipments to coastal refineries. According to railroad data, in 2008 there were reportedly about 10,000 oil cars carrying domestic crude. In 2014, there were over 400,000 crude-by-rail train cars, representing a 4,000 percent increase. Furthermore, the type of crude oil coming from shale deposits from Bakken oil fields (commonly referred as “light crude”) is high combustible. In almost every instance in which trains carrying Bakken crude derail and tanker cars are punctured, fiery detonation results. First responders and emergency service crews can merely watch it burn and concentrate on containment perimeters rather than extinguishing the oil fire. Without sensationalizing a disaster that occurred in another place, had any of the recent oil tanker disasters happened along the Feather River route, particularly at locations near population areas including downtown Portola, Blairsden, Twain and Keddie, where the railroad tracks are relatively close, the extent of the damage could have been far different.

The grand jury would first like to acknowledge as a matter of fact that hazardous chemical hauling is an integral part of our economy. As potentially dangerous as they are, crude oil, gasoline and chemicals are used safely every day. Without them our economy and all the things we do, all the products we require in our daily lives, the way we move would be changed; just about everything revolves around the consumer and the safe use of chemicals and their byproducts.

That being said, the vital role of both the national carriers of hazardous materials and our public safety officials at each level is to make safety the No. 1 priority. Safety, defined here, entails the complete processing of any particular product, from its extraction and refinement to transportation, delivery and ultimate usage.

Railroads carry over 40 percent of our nation’s freight. When conducted safely and securely, commodity transport over rail is proven to be economically the best and most efficient mode of transportation in terms of fuel efficiency, supply chain costs and safety. Intermodal traffic refers to the transport of goods on trains. Today, two major rail companies, Union Pacific and Burlington Northern Santa Fe, transport intermodal goods through Plumas County. According to the Union Pacific Railroad, chemical transport is roughly 17 percent of total payload being carried. The breakdown of goods, however, is not representative of actual train payloads. In other words, trains passing through the county could have any number of railcars full of one particular commodity or another and the cars may be full or empty.

The grand jury has found that the mission statements, top priorities, primary focus and action plans are remarkably similar in commitment, scope and language between hazardous material producers, transport carriers and government officials at every level. In other words, everyone directly engaged in the production and distribution of everything delivered over rail, by air or on pavement — as well as their overseers — share a common pledge to make safety their top priority in the public domain and the environment.

In addition, the grand jury has studied the after-action reports of many of the most recent crude-by-rail derailments and public highway chemical transport accidents and learned that in nearly every case, there were inspections completed days or weeks before the incidents, rail and highway speeds were under the mandated limits and handling of the volatile payloads were properly done according to federal safety mandates.

According to official published reports, there has been more oil spilled from trains in the past two years than in the previous four decades. Between 1975 and 2012, around 800,000 gallons of crude oil was spilled in the U.S. By comparison, according to data from the Pipeline and Hazardous Materials Safety Administration data, over 1.5 million gallons of crude oil was spilled from rail cars.

As a result of the series of ruptures and fires that have recently plagued the U.S., federal regulators are considering higher safety standards and further upgrades such as thicker tanks, rollover protection for chemical carrying tanker cars, electronic braking systems on individual rail cars and increased track inspections.

The U.S. Department of Transportation has issued a notice for crude oil and high-hazard flammable trains tanker cars, calling for a phaseout of the older CTC-111A tanker car (commonly known as the DOT-111). Currently there are still around 300,000 CTC-111A cars still being used throughout the U.S. These tanker cars each generally carry between 20,000 and 30,000 gallons of oil. According to the U.S. Department of Transportation the older CTC-111As have the following safety flaws:

—Thin skins: Upon derailment, tanks often rupture.

—No head shields: Shields on both ends of tanker cars can prevent puncturing during collisions.

—Poor protection over valves and fittings.

—Lack of pressure relief devices for boiling liquid expanding vapor explosions.

In short, the older CTC-111A tanker cars were not designed for hauling flammable materials.

The new replacement tanker car, called the CPC-1232 (CPC is a railroad industry standard that stands for casualty prevention circular), features new standards for hazardous material railway transport. As of November 2011, all new tank cars built for transporting crude oil and ethanol must follow new standards, including half-height shields, thicker tank and head material, normalized steel, top fitting and gauge protection and recloseable pressure relief valves.

As of March 2015, there are reportedly 60,000 of the newer CPC-1232 tanker cars hauling crude in the U.S. In response to all the recent crude-by-rail derailments, Union Pacific, CSX and Burlington Northern Santa Fe have all stepped up in increased safety inspections and adapting new safety standards. The railroads are now relying on distributed power units, which place locomotives in the middle and/or both ends of the trains. Studies show that placing power locomotives on both ends and in the middle enhances safety because it even spreads physical forces on the train.

This revelation is significant — the 1991 Dunsmuir toxic chemical derailment was caused by this very reason. The power locomotive was placed in the rear of a 97-car train and light and empty cars flanked a full tanker car filled with 19,000 gallons of metam sodium. The investigation of the Dunsmuir disaster found that because all the power was placed at the rear of the large train, the uneven power distribution caused the train to buckle.

Metam sodium is a soil fumigant. When it spilled into the upper Sacramento River — because of poor containment action and the nature of toxicity of the chemical — it killed every plant and fish for approximately 40 miles downstream.

Railroads also use wayside electronic detectors to monitor railroad tracks. New safety detecting technology is also being used in their prevention and risk reduction process that features use of lasers and ultrasound to identify rail defects.

The grand jury has learned that many of the hazardous material railcars do not belong to the rail carrier but to the company producing and transporting the product. For example, most of the older CTC-111A and newer CPC-1232 tanker cars are actually owned by the crude oil fracking companies and refineries.

The number of trains carrying crude oil and other hazardous materials is actually based on sheer economics. For example, in 2014, when oil prices hovered around $100 a barrel, the price sent domestic oil production to an all-time high. Crude-by-rail oil shipments though Plumas County increased substantially as coastal refineries in Martinez and Benicia purchased more oil from the Bakken oil fields in North Dakota and other domestic oil fields in Texas and Oklahoma.

DISCUSSION
The grand jury chose a review of several recent U.S. crude-by-rail derailments for comparative reasons. The after-action reports provide valuable findings and recommendations from disasters that can happen anywhere, anytime. The reports are particularly invaluable to first responders, and public safety agencies.

After-action reports detail each incident from the time of the initial report that entails the scope and severity of the incident. In response to the above disastrous incidents, the U.S. Department of Transportation and the Federal Pipeline and Hazardous Materials Safety Administration issued a “call to action” in January, calling on “rail company executives, associations, shippers and state and federal agencies to discuss how stakeholders can prevent and mitigate the consequences of rail accidents that involve flammable liquids.”

The grand jury also believes that examining the recent corn spill in Plumas County and comparing it with the way other derailments were handled can lead to information and recommendations that enhance and hopefully improve upon the vanguards (prevention, preparedness, response, recovery) of any future local potential disaster.

The tenets from the PHMSA call to action report produced similar recommendations — a strategic approach that promotes “effective preincident planning, preparedness, response, outreach and training.” One important point that the grand jury kept hearing was a difficulty and lack of communication between the railroad and local emergency management officials. One of the key elements the PHMSA call to action report specifically addresses is the absolute need for interaction and relevant guidance to first responders and local emergency management teams to “safely and effectively manage incidents.”

The report also called for preincident planning and communication with all organizations to learn about what is being transported. Emergency response teams must have the training to safely contain and protect themselves and the contaminate zone affected. The need for a local hazmat team cannot be overemphasized.

The following crude-by-rail disasters summarized in this grand jury report illustrate some of the potential circumstances other public safety agencies have had to deal with. Despite all the mandated safeguards dealing with hazardous material hauling, i.e., safe speeds, upgraded rail cars, railcar and track inspections, specialized training, etc., accidents can happen anytime and anywhere within transportation routes of hazardous materials.

Plumas County and the surrounding 12 counties in northeastern California lie within Region 3 of the State Emergency Services System. At the time of this report, Plumas County has no hazmat team. Upon any need for hazmat response, Plumas County must contact nearby Butte or Shasta teams. In more serious incidents, Plumas County would have to enlist state or federal emergency service agencies.

Lac-Megantic, Canada: In July 2013 a train carrying 72 tank cars full of crude oil exploded after the train braking system released, sending the unmanned train on a downhill run into the Canadian town of Lac-Megantic, Quebec. The runaway train crashed into a crowded downtown pub, killing 47 people and destroying over 30 buildings. According to the National Transportation Safety Board investigation, the train had been idling and unmanned for over seven hours and the emergency braking system disengaged. The train then rolled down the tracks for several miles, picking up speed and eventually derailing into downtown Lac-Megantic. Of the four disaster crude-by-rail spills mentioned in this report, the results from the official investigation determined that sheer neglect (train left running and unattended and braking system released, causing a runaway unmanned train) was the primary factor in the disaster.

Aliceville, Alabama: A 90-car train carrying Bakken crude derailed in November 2013 and exploded. Nearly 750,000 gallons of its 2 million gallon load spilled in wetlands in Alabama. Officials still assail cleanup operations today and report that containment booms and absorbent products were ineffective.

Lynchburg, Virginia: In April 2014 a CSX train carrying crude oil derailed and caught fire, spilling thousands of gallons of oil into the James River. Oil fires from the ruptured tanker cars burned for two days. Reports indicate that the tanker cars were all the new CPC-1232 model.

Casselton, North Dakota: In December 2013 a Burlington Northern Santa Fe train hauling grain derailed and fell across another set of tracks. Shortly after, a crude oil train heading in the opposite direction struck the derailed cars and derailed itself. Several tanker cars exploded. A slow response to the first incident set up the chain of events for the explosive second incident.

Montgomery, West Virginia: In February 2015 a train carrying crude oil in West Virginia derailed sending 27 tanker cars off the tracks. Twelve of those rail cars exploded, not at once, but randomly for up to 12 hours. The cause is still under investigation.

In the event of a local hazardous material disaster, the Plumas County Office of Emergency Services is notified and it determines the scope and magnitude of the incident and then contacts the Plumas County Board of Supervisors. Depending on the incident assessment of the Plumas County OES, the BOS has the authority to officially declare an emergency, which allows the Plumas County OES to request help from relevant local, state and federal agencies.

Through leadership and partnership with all first responders, each incident goes through a foundational process that includes prevention, preparedness, response and recovery. The first three steps of the mitigation process rely on the safe containment of the hazardous material as quickly as possible with a special focus on protecting human life (isolate, deny entry, protect life safely, mitigate). The recovery phase, however, can last for years. The Dunsmuir toxic spill, for example, seriously impacted the area for several years after. At the time of this report, the crude-by-rail spills were all still in the recovery phase. Fortunately, the Plumas County corn derailment had a minimal effect on the environment. The first three phases of emergency services mitigation at the corn spill served as a great training exercise for all agencies and first responders involved.

Recovery, in this case, was at a minimum in terms of environmental impact.

In regard to Plumas County hazmat, the grand jury has learned that the county must rely on local volunteers to devote their time as first responders.

Plumas County has had a difficult time finding enough volunteers to cover the entire county, and retaining volunteers after hazmat certification and specialized training has not worked out. All the local fire districts within Plumas County have been actively seeking volunteers.

FINDINGS
F1) The grand jury finds that communication between Plumas County public safety agencies and railroad officials is profoundly inadequate.

F2) The grand jury finds that the lack of spill and containment equipment along rail routes in Plumas County poses a direct threat to public safety and the natural environment.

F3) The grand jury finds that relying on hazmat response teams from surrounding counties compromises response times and threatens Plumas County public safety and natural resources.

F4) The grand jury finds that the lack of training of first responders concerning hazardous materials that they may have to deal with could have profound consequences.

F5) The grand jury finds that population centers within Plumas County that are in close proximity to railroads have grossly inadequate protection resources.

RECOMMENDATIONS
R1) The grand jury recommends Plumas County Emergency Services and the Plumas County Environment Health Agency establish direct local contact with Union Pacific and Burlington Northern Santa Fe and any hazardous material carrier that operates within the county.

R2) The grand jury recommends that Plumas County negotiate with railroad officials to have spill containment booms and absorbent kits in key strategic storage facilities in Plumas County.

R3) The grand jury recommends that the BOS find the means to provide hazmat training and certification to in-county first responders.

R4) The grand jury recommends more hazardous material training between first responders and all those involved in mitigating hazardous material disasters. Union Pacific, for example, offers tank car safety training in Roseville at the California Office of Emergency Services Specialized Training Institute every year. The training involves practically all aspects of hazardous material incident mitigation.

R5) The grand jury recommends that the BOS and Plumas County OES conduct a “what-if” evaluation for population centers within Plumas County that are within potential “blast zones” of crude-by-rail tanker cars.

New rules for crude-by-rail transport fall short

Repost from SFGate (San Francisco Chronicle)

New rules for crude-by-rail transport fall short

By Lois Kazakoff on May 1, 2015 5:50 PM
Oil imports by rail account for just about 1 percent of total shipments to California refineries, but they are rising rapidly. Above, trains at a Union Pacific yard in Bloomington, Calif.
California moves to prevent spills of oil shipped by trains – Oil imports by rail account for just about 1 percent of total shipments to California refineries, but they are rising rapidly. Above, trains at a Union Pacific yard in Bloomington, Calif. Photo By Irfan Khan/Los Angeles Times/MCT

The U.S. Department of Transportation unveiled new rules on transporting crude oil by rail Friday that set a timeline to get old-technology, easily punctured tank cars off U.S. and Canadian rail lines but fail to address the explosive nature of the Bakken crude that sparked the public’s concerns to begin with.

While the new rules are a step toward safer rail transport, it is a disappointing decision for the dozens of communities the oil trains roll through on the way to West Coast refineries. The new rules get the old DOT-111 cars off the rails over the next three years, and beef up the steel gauge required to construct the new CPC-1232 cars. But the Department of Transportation itself noted nearly a decade ago that the old cars punctured in minor, low-speed collisions. The new rules should have immediately banned them rather than phasing them out.

Most distressing is that the new rules do not set a standard for the volatility of what goes in the tank cars. Lower volatility would reduce the risk of explosions. Crude extracted from the Bakken Oil Shale is significantly more volatile than other types of petroleum — a fact the Department of Transportation has acknowledged and the public became aware of in July 2013 when a train carrying Bakken crude exploded in Lac Megantic, Ontario.

The new rules will do little to allay the worries of residents in Davis, Martinez and Pinole, where railroad tracks crisscross streets, or in Benicia, where Valero has applied for permission to retrofit its refinery to receive crude by rail in addition to crude by tanker ship. Valero has proposed moving the oil in the CPC-1232 cars, limiting oil trains to 50 cars rather than the more standard unit of 100 cars, and reducing train speeds in town. The City of Benicia is expected to release the draft environmental impact report on the project June 30.

Bills introduced in the House and the Senate this month would address these concerns, and more, notably requirements to notify first responders in real time when the trains are coming through. The new department rules require a railroads to provide a telephone number for first responders to call but do not require notification.

“These rules do not go far enough in addressing the safety concerns posed by trains transporting highly volatile crude oil through the heart of our communities,” said Rep. Mike Thompson, D-St. Helena. “We need to put robust, comprehensive safety measures in place that will help make sure communities are safe, rail cars meet the strongest possible standards, and first responders are prepared in the event of an emergency. DOT’s rules do not sufficiently address these issues and so Congress should act to put safety measures in place.”

Action in Congress this month presaged the announcement of the new less-than-adequate Department of Transportation regulations.

Thompson’s bill, introduced April 15 and co-authored with Reps. Jim McDermott, D-Wash., Doris Matsui, D-Sacramento, and Ron Kind, D-Wis., would require volatility standards and weekly communications between first responders and railroad officials about crude oil trains.

In the Senate, Sens. Dianne Feinstein, D-San Francisco, Ron Wyden, D-Ore., and Jeff Merkley, D-Ore., introduced legislation April 30 to protect communities from oil train accidents, focusing on communication with first responders.

Last year saw a record 144 rail accidents in the U.S., up from just one in 2009. The volume of oil cars, however, has increased by 4000 percent since 2008.

Rep. Thompson has it right: Congress needs to step in and demand better protections for communities on the rail lines.

Contaminated Oil That No One Wants Is Heading to Asia: California allows rare export exemption

Repost from Bloomberg Business News
[Editor:  A local resident observed that the photo below was taken at the docks here in Benicia, California — home of Valero Benicia Refinery.  The Bloomberg story says that the contaminated oil originated with Chevron and was stored at Plains All American in Martinez.  But maybe there’s more to the story?  Maybe Valero was an additional source or storage facility for the ship’s contents?  My source says that the tanker Hellespont Protector has been seen about twice over the last few months, and is a new one around here. (Background on current efforts of the oil industry to overturn the 1975 U.S. crude-export ban.)  – RS]

Contaminated Oil That No One Wants Is Heading to Asia

By Lynn Doan and Dan Murtaugh, April 26, 2015 4:00 PM PDT
Hellespont Protector
Oil tanker Hellespont Protector, said to be chartered to export California oil, was anchored in the San Francisco Bay on April 20, 2015. Photographer: Lynn Doan/Bloomberg

One million barrels of oil. Enough to fill more than 60 Olympic-sized swimming pools. And there it sat in tanks outside San Francisco — for three years — despite crude prices that topped $100 a barrel.

This isn’t the prized “light, sweet” kind of crude that is pumped out of the ground in Texas, or even the thick, sticky stuff from Alberta’s tar sands. Rather, it’s what’s known as “orphaned oil” that is so contaminated with organic chlorides that it can corrode the insides of even the biggest refineries.

Now, it’s on the move — and guessing exactly where is turning into a sort of parlor game for some in the oil market. All that is known is that Chevron Corp., which flushed the oil from a pipeline in September 2012 and has seen its value drop by $50 million since then, is loading it onto two tankers bound for Asia.

“It’s really kind of a bizarre incident,” said Gordon Schremp, a senior fuels specialist at the California Energy Commission who was notified by industry representatives of the planned exports.

It’s a rare shipment, considering most crude is barred from leaving U.S. borders. It just so happens that an exemption has been in place since 1992 allowing limited amounts of California oil to leave the country.

Export Exemption

The only reason exports don’t happen very often is because California’s refiners keep almost all the state’s oil for themselves.

The saga began on Sept. 17, 2012, when Chevron told shippers that its pipeline delivering California crude to San Francisco-area refiners was contaminated. Chevron ended up pushing an estimated 1 million barrels through the pipe to get rid of the chlorides.

And so the tainted oil sat in tanks at a Plains All American Pipeline LP terminal in Martinez until this month, when all the red tape, including getting an export license from the Commerce Department, was finally cut, Schremp said.

When the contamination was discovered, heavy crude from California’s San Joaquin Valley cost $97 a barrel. It’s now $46. The difference, multiplied by 1 million barrels, is more than $50 million. And that’s not counting the cost of storing the oil for more than two years, which could add millions more.

In Limbo

West Texas Intermediate futures, the benchmark for U.S. crude, rose 9 cents to $57.24 a barrel at 11:53 a.m. local time on the New York Mercantile Exchange. Prices dropped about 44 percent in the past year.

Kent Robertson, a spokesman for Chevron, declined to comment on the exports. Brad Leone and Meredith Hartley, spokesmen for Plains, didn’t respond to requests for comment.

Oil tanker Hellespont Protector, one of the two vessels chartered to carry the crude, was anchored in the San Francisco Bay on Friday, shipping data compiled by Bloomberg show. The other, Energy Champion, is headed for Qingdao, China, a place with no refineries. It may be a stopover, or it may not be headed to a refinery at all.

Schremp, who wasn’t told where the outcast barrels are headed, said they could be used as fuel for large ships or burned in a power plant.

If refiners know about the contamination ahead of time, they can blend in additives as a cure, but it’s an expensive solution that erodes the value of the crude, said David Hackett, president of energy consultant Stillwell Associates LLC in Irvine, California.

Wherever it lands, chances are it’ll be the first and last California oil that Asia sees for a while. California crude prices have been getting stronger and refiners across the Pacific have been flooded with supplies from much closer by.

Asked whether the rare cargoes are a bellwether for future exports of California oil, Schremp said, “It’s not like it makes perfect economic sense to move barrels that way into the world market — this was an export of circumstance.”

Little known Concord fault poses threat to Bay Area refineries, Benicia-Martinez rail bridge…

Repost from The Contra Costa Times

Little known Concord fault poses big threat

By Matthias Gafni, 04/11/2015 12:43:56 PM PDT
Cracks are visible in the roadway on Systron Drive in Concord, Calif., photographed on Tuesday, March 24, 2015. The cracks, cited by USGS geologist Dave Schwartz, are likely caused by movement of the Concord fault. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )
Cracks are visible in the roadway on Systron Drive in Concord, Calif., photographed on Tuesday, March 24, 2015. The cracks, cited by USGS geologist Dave Schwartz, are likely caused by movement of the Concord fault. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )

CONCORD — A mysterious earthquake fault slices under central Concord, its jagged, quarter-mile-wide seam running beneath a critical fuel-pumping facility, traversing the edge of a refinery processing 166,000 barrels of crude oil daily, and undercutting strip malls and homes.

While its big sisters, the San Andreas and Hayward fissures, grab the headlines, the Concord Fault — with its 11-mile-long fracture zone stretching from the Carquinez Strait to the Mount Diablo foothills — is also capable of producing a catastrophic earthquake, geologists say. And with critical infrastructure in its path, particularly refineries and a vulnerable railroad bridge not far away, a large seismic event could leave the entire northern half of the state without easy access to fuel — disrupting transportation and the transmission of electricity and water, according to a recent study.

According to USGS geologist Dave Schwartz, Kinder Morgan's Concord Station sits close to a earthquake fault in Concord, Calif., photographed on Friday, March 27, 2015. The lesser known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )
According to USGS geologist Dave Schwartz, Kinder Morgan’s Concord Station sits close to a earthquake fault in Concord, Calif., photographed on Friday, March 27, 2015. The lesser known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )

The Concord fissure may be largely ignored by the general public. But not by geologists.

“The Concord Fault is significantly more active than the fault that caused the Napa earthquake,” said Chris Wills of the California Geological Survey, referring to the 6.0 wine country temblor last August that caused more than $400 million in damage. “Nobody would be surprised if a magnitude-6 earthquake happened on the Concord Fault tomorrow.”

Make no mistake, Concord’s contribution to the Bay Area’s geologic activity is significantly smaller than the San Andreas and Hayward zones. Updated U.S. Geological Survey estimates indicate a 3 to 4 percent probability of a magnitude-6.7 or higher earthquake over the next 30 years on the Concord or lower Green Valley Fault, a connected Solano County segment, compared with 6.4 percent for the San Andreas and 14.3 percent for the Hayward Fault.

The Concord Fault creeps a measly 4 to 5 millimeters annually, while the Hayward slips 9 millimeters and San Andreas 25 millimeters.

The last catastrophic temblor on the Contra Costa-Solano combo fault struck more than 400 years ago, but geologists still say it’s important to monitor.

“At some point in time that system has to fail — we just don’t know exactly when,” said David Schwartz with the USGS. Even if the Concord Fault only produces a 5.0 quake, it could cause significant damage, Schwartz said.

The great unknown

The lake surrounded by the Lakes Apartments in Concord, Calif., is photographed on Tuesday, March 24, 2015. Geologists say that the lake is there due to a dip in the Concord fault that allows groundwater to seep through. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )
The lake surrounded by the Lakes Apartments in Concord, Calif., is photographed on Tuesday, March 24, 2015. Geologists say that the lake is there due to a dip in the Concord fault that allows groundwater to seep through. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )

On Oct. 23, 1955, a 5.4 quake — the Concord Fault’s last major temblor — was felt from San Jose to Sacramento. It caused $1 million in damage ($8.7 million in today’s dollars) and one fatality, according to the USGS. Windows shattered, brick walls cracked and moved, chimneys shifted and wine bottles crashed from liquor store shelves.

What makes the Concord Fault particularly worrisome to regional planners, so much so that it was highlighted in a December study by the Association of Bay Area Governments, is its potential impact on regional and statewide fuel distribution. Without gasoline, every other crucial need, including water, electricity and transportation, will be affected.

The lake surrounded by the Lakes Apartments in Concord, Calif., is photographed on Tuesday, March 24, 2015. Geologists say that the lake is there due to a dip in the Concord fault that allows groundwater to seep through. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )
The lake surrounded by the Lakes Apartments in Concord, Calif., is photographed on Tuesday, March 24, 2015. Geologists say that the lake is there due to a dip in the Concord fault that allows groundwater to seep through. The lesser-known Concord fault creeps ever so slightly annually. (Dan Honda/Bay Area News Group) ( Dan Honda )

In its report, ABAG studied three theoretical earthquakes — a 7.9 on the San Andreas, a 7.0 on the Hayward and 6.8 on the Concord.

“Originally, we were just going to explore the San Andreas and Hayward faults, but we realized that (there are) a lot of key infrastructure assets in (the Concord) region,” said study author Michael Germeraad, an ABAG resilience planner.

Five Bay Area refineries — all but two are within a couple miles of the fault — processed 235 million barrels of crude in 2012, about 40 percent of the state’s total, according to ABAG. In addition, Kinder Morgan operates a pumping station nearby that receives processed crude from all the refineries and pipes it out to terminals across Northern California and Nevada.

Critical pipelines

That pumping station, a critical piece of fuel infrastructure, lies directly above the Concord Fault.

Built in the 1950s, the station receives products from eight facilities and pumps the refined crude through pipelines. It can store about 1 million barrels, but normal inventory is half of that, said Melissa Ruiz, a Kinder Morgan spokeswoman. Its five outgoing pipelines serve Chico, Fresno, Reno, Sacramento, San Jose, Stockton and surrounding cities, in addition to seven military facilities and public airports.

The company has facilities and pipelines in active fault areas throughout California but has never lost a pipeline or tank to a quake and maintains its infrastructure to industry rules and regulations, Ruiz said.

In its report, ABAG said it had concerns because pipelines can fail due to soil liquefaction — where hard soil loses strength during strong ground shaking — and fault rupture. Knowing pipeline material, age, weld types and other factors would help scientists know where failures are “more likely,” but that information isn’t available.

“Damage to the Concord station would interrupt fuel transmission across the northern half of the state,” the report concluded.

The study also found that if one Bay Area refinery was damaged, they would all likely suffer damage because of their close proximity to each other, and because they are built on similar soils and have similar construction.

“A conservative restoration estimate of damaged refineries is months,” the study found for the Concord quake scenario.

The Tesoro Golden Eagle facility in Martinez sits on 2,206 acres just feet from the fault. Built in 1903, Golden Eagle employs about 650 workers and is the fourth-largest refinery in California.

Spokeswoman Patricia Deutsche said refinery officials are aware it sits next to the fault and a liquefaction zone, but she said the facility follows industry design standards. Piles are driven down hundreds of feet into bedrock, equipment has been retrofitted and the Avon Wharf, an oil terminal located on aging timber piles along the southern shore of Suisun Bay, just received environmental clearance for retrofit up to state quake standards, she said.

Seismic assessments of Bay Area refineries are done every five years, and the building code requirements consider the level of possible ground shaking from any nearby fault, said Gayle Johnson, senior engineer with Simpson Gumpertz & Heger, a national engineering firm.

Johnson, who has investigated the performance of industrial facilities in more than 20 earthquakes worldwide, said since the refinery retrofit programs began in the late 1980s and early 1990s, there has been a “ton of upgrade work done.”

Other impacts

While fuel infrastructure may be the top concern for the region, a large quake could disrupt other major lifelines. The Benicia-Martinez rail bridge, located between the two vehicle spans, is particularly vulnerable, according to ABAG, and could face “significant or complete damage.”

Liquefaction along the Carquinez Strait could cause dredged water channels to slough into the shipping pathways. Runways could rupture at Buchanan Field, which sits adjacent to the fault. Delta levees could breach, creating flooding and impacting drinking water quality, ABAG found.

Two-thirds of the power generated in the region is produced by natural gas facilities, many along the Carquinez Strait.

“In the event natural gas lines are damaged, these facilities will be unable to generate electricity,” the study found.

Still, Wills warns that what will happen during a significant quake on the Concord Fault is largely a mystery.

“How it releases is not that well known,” he said.