Category Archives: McClellan Business Park

Facing lawsuit, California oil train terminal to shut down

Repost from The News & Observer, Raleigh, North Carolina
[Editor: See also a similar report on AllGOV.com.  – RS]

Facing lawsuit, California oil train terminal to shut down

By Curtis Tate and Tony Bizjak, McClatchy Washington BureauOctober 23, 2014
US NEWS RAILSAFETY-CA 2 SA
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands on Wednesday, March 19, 2014. RANDALL BENTON — MCT

— A legal victory in California this week over crude oil operations could have a spillover effect, emboldening critics of crude-by-rail shipments to press their concerns in other jurisdictions.

EarthJustice, a San Francisco-based environmental group, won its battle to halt crude oil train operations in the state as InterState Oil Co., a Sacramento fuel distributor, agreed to stop unloading train shipments of crude oil next month at the former McClellan Air Force Base.

Sacramento County’s top air quality official said his agency mistakenly skirted the state’s environmental rules by issuing a permit for the operation.

EarthJustice contended the Sacramento air quality district should not have granted InterState a permit to transfer crude oil from trains to tanker trucks bound for Bay Area oil refineries without a full environmental impact review.

The court reversal in California could bolster efforts by environmental groups to slow or stop crude-by-rail projects elsewhere, particularly in Washington state. A proposed terminal in Vancouver, Wash., would transfer oil from trains to tanker ships that could supply California refineries.

Patti Goldman, a managing attorney in the Seattle office of EarthJustice, said the decision sounded “a wake-up call” for permitting authorities to consider community input.

“We have been seeing local authorities blindly approve crude-by-rail projects without being open with the public and without considering the full effects,” she said.

The McClellan operation is relatively small compared with crude oil train terminals proposed elsewhere in California. One, in southwestern Kern County in the southern Central Valley, will be able to receive one 100-car train full of of crude oil each day. The McClellan facility was permitted to unload a similar amount once every two weeks.

The Kern facility, which could begin operating this month, was already zoned for transfer operations, and required no new environmental reviews or public comments.

In September, the Kern County Board of Supervisors approved a separate facility at a Bakersfield refinery that could receive two trains a day. EarthJustice sued the board earlier this month, contending that Kern’s environmental review was inadequate.

Environmental groups lost a legal fight in the Bay Area city of Richmond, where a terminal operated by pipeline company Kinder Morgan, the largest midstream – the shipping and storage of oil – energy company, unloads crude oil from trains to trucks that take it to local refineries. A judge rejected the lawsuit in September, ruling that the six-month statute of limitations had expired.

A McClatchy story in March revealed the existence of the McClellan operation to the surprise of local officials. State emergency officials and fire departments have said they don’t feel prepared to handle a major explosion or spill from a derailment.

Some of the crude unloaded at McClellan may have originated in North Dakota’s Bakken region. That type of oil, extracted through hydraulic fracturing, has been under increased scrutiny since a July 2013 derailment killed 47 people in Lac-Megantic, Quebec.

That accident and a series of fiery derailments since then have prompted the rail industry and its federal regulators to take steps to improve track conditions and operating practices. A stronger construction standard for tank cars used to ship flammable liquids is being finalized by the U.S. Department of Transportation.

The California Energy Commission projects that the state could receive as much as a quarter of its petroleum supply by rail in the next two years.

Earlier this month, BNSF Railway and Union Pacific sued California over a state law that requires railroads to develop oil spill prevention and response plans. The railroads argue that only the federal government has the power to regulate them.

Bizjak, of The Sacramento Bee, reported from Sacramento, Calif.

Sacramento Bee: Sacramento crude oil transfers halted; air quality official says permit was granted in error

Repost from The Sacramento Bee

Sacramento crude oil transfers halted; air quality official says permit was granted in error

By Tony Bizjak and Curtis Tate, 10/22/2014
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March.
A tanker truck is filled from railway cars containing crude oil on railroad tracks in McClellan Park in North Highlands in March. Randall Benton

A Sacramento fuel distributor has agreed to stop unloading train shipments of crude oil at McClellan Business Park after the county’s top air quality official said his agency mistakenly skirted the state’s environmental rules by issuing a permit for the operation.

InterState Oil Co. said in a letter Wednesday to the Sacramento Metropolitan Air Quality District that as of Nov. 7 it will no longer use McClellan as a transfer station for crude oil shipments to the Bay Area.

The move settles a lawsuit filed in September by EarthJustice, a San Francisco-based environmental group, that contended the Sacramento air quality district should not have granted InterState Oil a permit to transfer crude oil from trains to tanker trucks bound for Bay Area oil refineries without a full environmental impact review.

Air district head Larry Greene now says a full review was, in fact, required by the California Environmental Quality Act.

“We made an error when the permit was developed, and it should have gone to full CEQA review,” Greene said Wednesday. “We have notified (InterState) and the environmental group to that effect. InterState is voluntarily giving that permit back.”

Greene said InterState will continue other transfer operations at its McClellan site, including transfers of ethanol.

It is unclear whether the company will apply for a new permit to load crude oil. Its representatives did not respond to a request for comment.

A lawyer for EarthJustice called this a major victory in the group’s fight against potentially unsafe oil shipments.

“It signals that industry and government may not benefit from a lack of transparency and play dice with lives of people who live along the paths of these dangerous oil trains,” attorney Suma Peesapati said. “This is the first crude transfer project that has been stopped dead in its tracks in California.”

The reversal by the Sacramento air quality district could bolster efforts by environmental groups to slow or stop crude oil projects on rail lines elsewhere, particularly in Washington state. A proposed terminal in Vancouver, Wash., would transfer oil from trains to tanker ships that could supply California refineries.

Patti Goldman, a managing attorney in the Seattle office of EarthJustice, said the decision sounded “a wake-up call” for permitting authorities to consider community input.

“We have been seeing local authorities blindly approve crude-by-rail projects without being open with the public and without considering the full effects,” she said.

The McClellan operation is relatively small compared with the kind of crude oil train terminals now proposed elsewhere in California. One, in southwestern Kern County in the southern Central Valley, will be able to receive one 100-car train full of of crude oil each day; the McClellan facility was permitted to unload a similar amount once every two weeks.

The Kern facility, which could begin operating this month, was already zoned for transfer operations, and required no new environmental reviews or public comments.

In September, the Kern County Board of Supervisors approved a separate facility at a Bakersfield refinery that could receive two trains a day. EarthJustice sued the board earlier this month, contending that Kern’s environmental review was inadequate.

Environmental groups lost a legal fight in the Bay Area city of Richmond, where a terminal operated by pipeline company Kinder Morgan unloads crude oil from trains to trucks that take it to local refineries. A judge rejected the lawsuit in September, ruling that the six-month statute of limitations had expired. That project involves 100-car oil trains that come through midtown Sacramento.

Another proposed oil-train terminal at the Phillips 66 refinery in Santa Maria could mean even more of the cargo passing through Sacramento.

A Sacramento Bee story in March revealed the existence of the McClellan operation to a number of surprised local officials, including the head of the county Office of Emergency Management and the chiefs of the Sacramento city and Metropolitan fire departments. It noted that InterState began handling crude oil last year without obtaining a permit.

Some of the crude unloaded at McClellan may have originated in North Dakota’s Bakken region. That type of oil, extracted through hydraulic fracturing, has been under increased scrutiny since a July 2013 derailment killed 47 people in Lac-Megantic, Quebec.

That accident and a series of fiery derailments since then have prompted the rail industry and its federal regulators to take steps to improve track conditions and operating practices. A stronger construction standard for tank cars used to ship flammable liquids is being finalized by the U.S. Department of Transportation.

The California Energy Commission projects that the state could receive more than 20percent of its petroleum supply by rail in the next two years. State emergency officials and fire departments have said they don’t feel they are prepared to handle a major explosion from a derailment.

Earlier this month, BNSF Railway and Union Pacific sued California over a state law that requires railroads to develop oil spill prevention and response plans. The railroads argue that only the federal government has the power to regulate them.

Groups Challenge Sacramento Air District’s Furtive Approvals of Crude Oil Project

Repost from The Sacramento Bee
[Editor: See also EarthJustice’s account, and a Public News Service brief that appeared in the Benicia Herald.  Significant quote: “It’s becoming increasingly clear in California that the oil industry is cozying up to decision-makers who are deliberately bypassing environmental and health laws to usher in perilous oil transport projects that put people in danger,” – EarthJustice attorney Suma Peesapati.  – RS]

Sacramento air quality officials sued over crude oil trains

By Tony Bizjak, Tuesday, Sep. 23, 2014

A Bay Area environmental group has filed a lawsuit against the Sacramento Metropolitan Air Quality Management District for failing to require an environmental review of a crude oil transfer station at McClellan Business Park.

The group, Earthjustice, accuses local air quality managers of quietly rubber-stamping permits for InterState Oil Company, allowing it to use McClellan as a site for transferring highly flammable crude oil from trains into tanker trucks headed to Bay Area refineries.

Earthjustice filed the complaint Monday in Sacramento Superior Court on behalf of the Sierra Club. It charges that Sacramento air quality officials and InterState failed to review the potential hazards of running trains of inadequately designed tank cars full of crude oil through neighborhoods, and asks the court to halt the transfer operations until a full environmental review is conducted.

InterState Oil Company has been making the transfers at McClellan since last year, initially without applying for a permit. Inspectors with the air quality district discovered the oil transfers and required InterState to file for a permit, but did not require the company to conduct any review of the environmental impact of the project. Permit documents allow InterState to unload an estimated 100 train cars every two weeks. Officials with InterState could not be reached for comment.

Air district official Larry Greene told The Sacramento Bee last month that the oil company had an existing permit to transfer denatured alcohol and that the switch to crude oil transfers didn’t cause any emissions increases. The district issued a permit this year for crude-oil transfers but considered that action “ministerial,” meaning it did not trigger an environmental review, Greene said.

Environmental groups said they see that stance as an abrogation of duty by local regulators.

“It’s becoming increasingly clear in California that the oil industry is cozying up to decision-makers who are deliberately bypassing environmental and health laws to usher in perilous oil transport projects that put people in danger,” said Suma Peesapati, Earthjustice attorney. “We saw it in Richmond, we saw it in Kern County, and now we’re witnessing it in Sacramento. If we’re going to stem the flood of fossil fuels into California and protect the public from hastily approved, poorly planned projects, we demand transparent and law-abiding leadership.”

“This is an example of a public agency skirting the law and failing to ensure that everything possible is done to protect the public,” said Terry Davis of the Mother Lode Chapter of the Sierra Club.

Earthjustice recently sued a similar operation in the Bay Area city of Richmond, where the Kinder Morgan oil transportation company currently moves volatile Bakken crude oil from trains to trucks that take it to local refineries. That lawsuit was rejected a few weeks ago in court when a judge ruled the six-month statute of limitations for a lawsuit had expired. That project involves 100-car oil trains that come through midtown Sacramento.

Attorney Peesapati of Earthjustice said she does not believe the statute of limitations issue applies in the Sacramento case because this week’s lawsuit is within six months of the air quality district’s initial permit issuance this year.

A handful of recent derailments and explosions involving trains carrying crude oil, notably the lighter and more volatile Bakken crude oil from North Dakota, have prompted federal and state officials to push for more rail safety measures.

Read more here: http://www.sacbee.com/2014/09/23/6729786/sacramento-air-quality-officials.html#storylink=cpy