Category Archives: Valero Crude By Rail

Kamala Harris sent 2 important letters to the City of Benicia

By Roger Straw, August 11, 2020

Future Vice President Kamala Harris remembered in Benicia for her strong support

Kamala Harris, former California Attorney General and current Vice Presidential running mate for Joe Biden

Joe Biden’s nominee for Vice President, California Senator Kamala Harris, has a remarkable connection for many of us here in Benicia.  Her support for a safe and healthy world was incredibly important in the 2016 defeat of Valero Benicia’s dirty and dangerous oil train proposal.  The story should be told now, to honor Harris’ candidacy and to encourage support for a Biden/Harris ticket among all who care about clean air, land and water.

During our 3½ year battle to defeat Valero Benicia’s Crude By Rail proposal, then California Attorney General Kamala Harris wrote two letters challenging Valero’s project and the City of Benicia’s environmental review.  Her support was critical in support of local organizing efforts by Benicians for a Safe and Healthy Community and others far and wide.

Harris’ first letter came on October 2, 2014.  The letter is summarized and linked here:

CALIFORNIA ATTORNEY GENERAL LETTER CRITICAL OF VALERO DEIR

OCTOBER 8, 2014, Summary, from p. 2: Unfortunately, the DEIR for this Project fails to properly account for many of the Project’s potentially significant impacts pursuant to the California Environmental Quality Act(CEQA). Specifically, the DEIR: 1. … Continue reading California Attorney General letter critical of Valero DEIR→

Harris’ support added incalculable weight to the credibility of local and regional organizers, and caught the attention of news agencies across the country:

BLOOMBERG: CALIFORNIA AG REJECTS TRADE-SECRET CLAIMS FOR CRUDE-BY-RAIL

OCTOBER 22, 2014, Repost from Bloomberg News By Victoria Slind-Flor – California Attorney General Kamala Harris expressed reservations about the trade-secret provisions in a proposal for a crude-by-rail project in Benicia, California. In a letter to the city’s Community Development Department, she said the draft environmental impact report for … Continue reading Bloomberg: California AG Rejects Trade-Secret Claims for Crude-by-Rail→

RAILROADS FILE SUIT AGAINST STATE OF CALIFORNIA

OCTOBER 9, 2014, Repost from The Sacramento Bee – By Tony Bizjak and Curtis Tate – The battle over crude oil trains in California intensified this week, reaching into the legal sphere with potential national repercussions. The state’s … Continue reading Railroads file suit against state of California→

A year and a half later, on April 14, 2016, Harris sent a second letter asserting that Benicia’s Planning Commission and City Council have every right to deny a land use permit for Valero’s proposed Crude by Rail offloading rack.  I highlighted her convincing prosecutorial language in my headline:

CALIFORNIA ATTORNEY GENERAL: “FOR BENICIA TO TURN A BLIND EYE…”

APRIL 15, 2016, By Roger Straw – California Attorney General Kamala Harris: letter disagrees with City of Benicia staff, consultants and Valero Today the City of Benicia received a letter from California Attorney General Kamala Harris disagreeing with City staff, consultants and Valero Refinery. The letter asserts that Benicia’s Planning Commission and City Council have every right to deny a … Continue reading CALIFORNIA ATTORNEY GENERAL: “For Benicia to turn a blind eye…”→

And again, her challenge was picked up by media outlets far and wide.  A sampling:

EAST BAY EXPRESS: ATTORNEY GENERAL HARRIS: BENICIA HAS POWER TO REJECT OIL FACILITY

APRIL 15, 2016, By Jean Tepperman – In a strongly-worded letter sent Thursday to City of Benicia officials, California Deputy Attorney General Scott J. Lichtig wrote that Valero, the City of Benicia’s planning staff, and an outside attorney advising the … Continue reading EAST BAY EXPRESS: Attorney General Harris: Benicia Has Power to Reject Oil Facility→

SACRAMENTO BEE: CALIFORNIA ATTORNEY GENERAL KAMALA HARRIS CHALLENGES BENICIA OIL PLAN

APRIL 14, 2016, By Tony Bizjak – HIGHLIGHTS: • Harris said Benicia has the right to say no, is not pre-empted by federal law • Two 50-car oil trains would travel daily through downtown Sacramento • Valero spokesman: ‘We remain confident … Continue reading SACRAMENTO BEE: California Attorney General Kamala Harris challenges Benicia oil plan→

Finally… Benicia wasn’t the only recipient of Harris’ environmental support during those days.  See also…

DIANE BAILEY: CALIFORNIA ATTORNEY GENERAL LETTER, PROTESTS IN PITTSBURG 1/21/14

JANUARY 18, 2014, Repost from Diane Bailey’s blog, Switchboard, Natural Resources Defense Council California Attorney General Tells Major Oil Terminal Developer, WesPac, to Hold Up in Pittsburg Posted January 17, 2014 by Diane Bailey in Environmental Justice, Health and the Environment, Moving Beyond Oil The California Attorney General, Kamala D. Harris, sent a stark letter to the City of Pittsburg this week warning of … Continue reading Diane Bailey: California Attorney General Letter, Protests in Pittsburg 1/21/14→


For a trip down memory lane, see my permanent archive: The successful effort to STOP oil trains in Benicia, California

(beniciaindependent.com/crude-by-rail-archive/)

Roger Straw

Protesters shut down rail lines in Canada – why that’s important here in Benicia

By Roger Straw, February 18, 2020

My U.S. readers might wonder why I cover oil train news from Canada.  Answer: Our Canada neighbors are important – we are of course, a global people.  AND… what happens in production and transport of Canadian tar-sands oil is newsworthy “uprail” news for our west coast states.  Canadian and US ports are lined up for export, and our refineries would love to receive the icky substance by rail.

Vintage yard sign – successful 2016 defeat of Valero’s oil train proposal

My Benicia readers might wonder why I continue to cover oil train news at all – didn’t we successfully defeat Valero’s dirty and dangerous proposal in 2016? Answer: well, Valero is poised to buy our 2020 mayor and council elections.  Who’s to say they won’t try for crude by rail again?  Back in 2014-2016, Valero expected to win approval, and invested heavily in the necessary infrastructure for offloading oil trains.  Last I knew, they stored the heavy equipment offsite here in Benicia’s Industrial Park.  Has it been sold or moved?

IMPORTANT IN TODAY’S INTERNATIONAL NEWS…


Rail Lines Shut Down, Royal Canadian Mounted Police (RCMP) Still on Gidimt’en Land as Miller Meets Tyendinaga Blockaders

The Energy Mix, February 18, 2020, Primary Author Mitchell Beer
Tyendinaga blockade
Tyendinaga blockade | Source: Twitter

Rail lines across most of Canada remained shut down this week, RCMP were still a threatening presence on Gidimt’en land in British Columbia, Indigenous Services Minister Marc Miller met with Tyendinaga Mohawk protesters, and a flurry of news coverage traced the widening impacts of a blockade triggered by a pipeline company pushing an unwanted natural gas pipeline through unceded Indigenous territory.

Over the weekend, the Tyendinaga blockade of the CN Rail track near Belleville, Ontario continued after the community concluded a day-long meeting with Miller. Blockades or demonstrations were under way near Rivière-du-Loup, Quebec, at the Rainbow Bridge in Niagara Falls, and on the Prince Edward Island side of the Confederation Bridge, and shut down the Thousand Islands Bridge between Ontario and New York State for 2½ hours. Days earlier, a court injunction barred Wet’suwet’en supporters from continuing their blockade of the B.C. legislature in Victoria.

And in Toronto, a massive march snaked through downtown to the provincial legislature Monday, with Toronto police tweeting that drivers should consider alternate routes after protesters stopped for a time at the busy corner of Bay and College. “When justice fails, block the rails,” demonstrators chanted. “How do you spell racist? R-C-M-P,” they added.

Prime Minister Justin Trudeau said the federal government was committed to “resolving the situation  quickly and peacefully,” while maintaining that the rail disruptions must be settled through dialogue, not police intervention.

“We are not the kind of country where politicians get to tell the police what to do in operational matters,” he told media Friday, while attending a global security conference in Munich. “We are a country that recognizes the right to protest, but we are a country of the rule of law. And we will ensure that everything is done to resolve this through dialogue and constructive outcomes.”

Before his meeting at Tyendinaga began Saturday, Miller said he wasn’t sure he could convince anyone to shut down the blockade, but he was there to open a dialogue.

“This is a situation that is very tense, very volatile, there are some people that have been standing out there for days, so today is a chance to talk and have a real discussion,” he said. “All of Canada is hurting, the economy is slowing down,” and “everyone knows the reports about supply shortages, but we can’t move forward without dialogue, and that’s we’re going to do today.”

Afterwards, based on a recording provided by a meeting participant, CBC reported that Miller had asked the community to suspend the blockade. But that request was undercut by a call from Wet’suwet’en hereditary chief Woos (Frank Alec), who told the room the RCMP was still on his community’s territory. “I would suggest to you loud and clear that we want the RCMP out of Gidimt’en territory,” he said.

While the RCMP operation to clear several Indigenous checkpoints was over, the chief said the police were still on the scene and “continued to pose a threat”, CBC said.

“We want them out of there. We don’t want them there. They have a detachment right in the middle of nowhere, in their eyes. But in our eyes, it’s our territory,” he said. “We do our traditions out there. We do our trapping and hunting. They are out there with guns, threatening us.”

“Get the red coats out first, get the blue coats out…then we can maybe have some common discussions,” responded Tyendinaga community member Mario Baptiste.

“Obviously dealing with the context of the issue…it absolutely needs to be widened,” Miller replied.

“Tonight, we made some modest progress by opening up a dialogue with the people standing out there in the cold and doing so for eight or nine days,” Miller told media afterwards. “We talked openly, frankly, painfully at times, and sometimes with humour. There’s a lot more work to be done.”

Miller added that he would share the results of the discussion with Trudeau and the rest of the federal cabinet. “The underlying issues did not arise yesterday,” he said. “They’ve been present in this community for hundreds of years.”

Political scientists Gina Starblanket of the University of Calgary and Joyce Green of the University of Regina underscored that history last Thursday, in a Globe and Mail op ed that declared the death of the reconciliation process between Canada and Indigenous peoples.

“February has seen an explosion of Indigenous and non-Indigenous support for the current political struggle by the Wet’suwet’en hereditary chiefs and their supporters,” they wrote. “Again, we are seeing a ham-handed response of both orders of government, delivered in justificatory talking points to the media and enforced by the RCMP. Once again, we have the police dragging Indigenous peoples off of their lands, in Canada, in the service of the settler state, which is as usual attending to virtually every relevant political interest—except Indigenous ones.”

All of that “despite the rhetoric from federal and some provincial politicians about the need to transform their relationship with Indigenous people—even though that little matter of land theft continues,” they add. “And Canada—in all its structural manifestations—continues its perpetual drive to eliminate Indigenous rights to land and self-determination, treating them as impediments to the national interest.”

News coverage over the last week combined front-line reports on the blockade with stories on the businesses and supply chains disrupted by the national rail shutdown. On Thursday, CBC reported that protests in Belleville and New Hazelton, B.C. had “prompted CN Rail to temporarily shut down parts of its network” as of Tuesday, with the lack of any train movement “crippling the ability to move goods and facilitate trade.” That same day, CN said it was “initiating a progressive and orderly shutdown of its Eastern Canadian network”, a decision that could lead to 6,000 temporary layoffs, according to Teamsters Canada.

“With over 400 trains cancelled during the last week and new protests that emerged at strategic locations on our mainline, we have decided that a progressive shutdown of our Eastern Canadian operations is the responsible approach to take for the safety of our employees and the protesters,” said CN President and CEO J.J. Ruest. “This situation is regrettable…these protests are unrelated to CN’s activities and beyond our control.”

On Wednesday, VIA Rail said it had cancelled 256 passenger trains along its Montreal-Toronto and Toronto-Ottawa routes, affecting 42,100 passengers. A day later, it shut down most operations. “Via Rail has no other option but to cancel all of its services on the network, with the exception of Sudbury-White River (CP Rail) and Churchill-The Pas (Hudson Bay Railway), until further notice,” the company said in a media statement.

The lack of rail access quickly cascaded across the economy, with business leaders raising alarms about the economic impact.

“Every day that it goes on, the damage compounds,” said Perrin Beatty, CEO of the Canadian Chamber of Commerce. “It is damaging our international reputation as a reliable supplier. It is affecting our supply chains around the world.”

Beatty told CBC the blockades had “severely limited the movement of perishable foods and other consumer items, grain, construction materials, and propane for Quebec and Atlantic Canada,” the national broadcaster said. “The stoppage has also affected the movement of natural resources like timber, aluminum, coal, and oil, while factories and mines may soon face difficult decisions about their ability to continue operations.”

“Every day we hear more and more from companies that either can’t get their parts or ingredients or components to market, or can’t get their products out. It’s beginning to pile up,” added Dennis Darby, president of Canadian Manufacturers and Exporters, whose members typically load about 4,500 rail cars a day. “In today’s modern industrial economy, there aren’t as many big warehouses of stuff as people tend to think. It’s kind of in, out, and sell.”

Derek Nighbor, president and CEO of the Forest Products Association of Canada, said the disruptions had cost his members “millions and millions of dollars” in lost sales, with mills unable to get raw materials or schedule freight cars to ship finished products. Wade Sobkowich, executive director of the Western Grain Elevator Association, traced a similar impact.

“If the blockade were to lift today, it would have cost the grain industry over $10 million just over the last few days,” he said. “We have farmers who are needing to deliver product. They’re needing to sell it into the handling system so that they can get paid, so that they can pay bills and keep cash flow going on their farms.”

Karl Littler, senior vice president, public affairs at the Retail Council of Canada, listed personal hygiene products, infant formula, cleaning and sanitary products, and fresh food as items that will be in short supply if the blockades continue. “There is an inability to move goods cross country through the various choke points,” he told CBC. “It’s of major concern to retail merchants. It both interrupts the flow of retail-ready goods and hampers the manufacturing process for Canadian manufacturing.”

“Obviously, there are some issues if nothing is being transported by rail,” said Nathalie St-Pierre, president and CEO of the Canadian Propane Association. “They are talking about continuing the dialogue. But at the same time, and from probably everyone’s perspective, you have to lift the blockades. You can have the dialogue, but at this time, I think the point was made.”

But for campaigners supporting the Wet’suwet’en, there is historic irony but no coincidence in a nation-wide protest that targets Canada’s railways.

“It’s very historically significant because the project of colonization, as well as the extinction of the buffalo, was facilitated by the laying down of the Trans Canada railway,” said Nikki Sanchez, a member of the Pipil Maya Nation who was involved with a six-day encampment at the B.C. legislature.

Climate Justice Edmonton organizer Emma Jackson tweeted that this might be the only time she celebrates cancelled trains, noting that the railway was first built to “enable settlers to go and build their lives on Indigenous lands”, making it a fair target for pushback against a pipeline being built without the consent of hereditary chiefs.

“It’s also probably the best tool that a lot of folks have at our disposal, in order to really put pressure on the decision-makers,” Jackson told the Toronto Star, adding that it’s “mind-boggling” that politicians are focusing on the inconvenience resulting from the blockades. “If you’re going to talk about inconvenience, it is very inconvenient that you’re going to be removed from your own land, forcefully at the barrel of a gun.”

Sanchez added that Indigenous communities don’t take the blockades lightly, and they wouldn’t be possible without the support of non-Indigenous Canadian allies. “We have no interest in impacting individuals’ livelihoods,” she said. “We want a Canada that is upheld to justice.”

The Star documents the support for the Wet’suwet’en from many of the passengers affected by the rail shutdown in Ontario.

Huge Valero crude by rail expansion – Texas to Mexico

Dangerous oil trains moving along Texas gulf coastline – 30,000 barrels per day

Crude Summit: Valero grows Mexico rail flows

By Sergio Meana & Elliot Blackburn, Argus Media, 04 February 2020

Valero increased the volume of refined products sent by rail to Mexico last year to roughly 30,000 b/d, up from about 2,000 b/d just two years ago, chief executive Joe Gorder said today.

The US independent refiner reached into the recently-opened Mexican market through a combination of joint ventures with local partners and building out its own storage infrastructure, Gorder said during the Argus Americas Crude Summit in Houston, Texas. Valero railed gasoline and diesel from its Texas refineries, including four along the coast and its landlocked 200,000 b/d McKee refinery in the Texas Panhandle.

The company has six fuel storage agreements that give the company 5.8mn bl of storage capacity in Mexico, but fuel pipeline capacity is still constrained in the country and mostly only used by state-owned Pemex.

“We invested in some terminal assets,” Gorder said. “We have got joint ventures around several, and we are actually railing a lot of barrels into Mexico rather than waiting for the pipeline infrastructure to be built.”

Franchisees opened the first Valero-branded retail fuel station in Mexico last week, Gorder said, with two more now opened since. Valero in Mexico said it plans to open 15 retail fuel stations in the next three months.

For Gorder the US Gulf coast is the most efficient refined product center as it has an able and affordable workforce, access to feedstocks and multiple transportation options.

“We have got all the advantages to be a supplier to the world,” Gorder said. “It is going to be some time before [Mexico] will be able to satisfy their own demands if ever. And so it is a logical, natural market for us.”

Valero exported 343,000 b/d of fuels in 2019 to all markets.

Benicia Crude By Rail remembered in today’s news

[Today’s news is welcome.  Rep. Garamendi doesn’t represent Benicia, but he does represent uprail cities that would have been affected by Valero’s dangerous and dirty proposal to bring oil trains across California.  Garamendi’s bill, HR 5553, has 4 co-sponsors, but does not include Benicia’s representative Mike Thompson.  Let’s hope Mike will get behind this effort!  – R.S.]

John Garamendi introduces crude-by-rail safety bill

Vallejo Times-Herald, by Nick Sestanovich, January 9, 2020
U.S. Rep. John Garamendi, CA 3rd District

Rep. John Garamendi, D-Solano, introduced legislation Wednesday to ensure safer standards for the transport of crude oil and other hazardous materials by train.

House Resolution 5553, also known as the “Crude By Rail Volatility Standards Act,” aims to establish a safety standard for the maximum volatility for crude oils and similar materials transported by rail. It also requires that all crude by rail in America adhere to the New York Mercantile Exchange’s maximum Reid vapor pressure for crude-oil futures contracts of 9.5 pounds per square inch, Garamendi’s office wrote in a news release.

The current industry standard would remain in place until the Pipeline and Hazardous Materials Safety Administration (PHMSA) completes the rule setting a maximum volatility standard that was first announced in 2017 after the attorneys general of six states, including California, petitioned the U.S. Department of Transportation and PHMSA to finalize the regulation nationwide.

“Every day we delay the implementation of a stronger safety standard for the transport of Bakken crude oil-by-rail, lives are at risk,” Garamendi said in a statement. “My bill simply requires oil companies to decrease the volatility to market levels, rather than carrying unstable products through communities. I am committed to enacting this legislation into law this year as part of the surface transportation reauthorization.”

Garamendi, who is a senior member of the House Committee on Transportation and Infrastructure, has been trying to get legislation passed since 2015 to prohibit crude oil from being transported by rail unless it adheres to the New York Mercantile Exchange’s maximum Reid vapor pressure. Garamendi’s office wrote that the actions were influenced by numerous crude-by-rail derailments in previous years, including an accident in Lac-Megantic, Quebec in 2013 which killed 47 people and led to changes in operations for Canadian railways.

The topic of crude by rail became a hot-button issue in Solano County in 2013 when the Valero Benicia Refinery announced plans to extend rail lines to have crude-oil delivered to its plant by train rather than by boat. The project — which would have passed through Dixon, Suisun City and Fairfield — was met with opposition and was subsequently voted down by the Benicia Planning Commission and then the City Council.

Garamendi’s co-sponsors on the bill are Reps. Barbara Lee, D-Oakland; Bill Foster, D-Ill.; Nita Lowey, D-N.Y.; and Jamie Raskin, D-Md.