San Francisco Chronicle: Benicia sees cash in crude oil; neighbors see catastrophe

Repost from The San Francisco Chronicle

Benicia sees cash in crude oil; neighbors see catastrophe

By Jaxon Van Derbeken, October 23, 2014
Ed Ruszel and his family own a woodworking business that fronts the railroad tracks next to the Valero refinery in Benicia where the crude oil would be delivered.
Ed Ruszel and his family own a woodworking business that fronts the railroad tracks next to the Valero refinery in Benicia where the crude oil would be delivered. | Lea Suzuki / The Chronicle

A plan to bring tank-car trains filled with crude oil from Canada and North Dakota to a Benicia refinery is pitting the Solano County town against Northern California neighbors who say they will be burdened with the risk of environmental catastrophe.

Benicia officials must decide whether to approve a draft environmental impact report on a $70million terminal at Valero Corp.’s refinery near Interstate 680, where two 50-car oil trains a day would deliver crude.

Supporters and the company say California consumers stand to benefit: With no major oil pipelines running to the West Coast and marine transport both costly and potentially hazardous, they say, rail is the best way to keep local gasoline prices low.

“Right now, that refinery relies on more expensive crude from Alaska,” said Bill Day, spokesman for Valero. “Rail is the quickest, most efficient and safest way of delivery.”

Benicia’s environmental study weighing the risks of the project, however, has done nothing to assuage critics who say the city is downplaying the dangers of delivering oil by rail.

Crude from North Dakota shale is extra-volatile, they say, and the city’s environmental report assessed only the chances of a spill along the 69 miles of track from the Sacramento suburbs to Benicia — not the chance of a catastrophic explosion, or the possibility of an accident of any kind along the more than 1,000 additional miles the trains would have to travel to reach the shores of the Carquinez Strait.

“This project is not in our region — it is outside of our region — but the impacts on the 2.3million people who live here we view as very significant, very troublesome, very disturbing,” said Don Saylor, chairman of the Yolo County Board of Supervisors and vice chairman of the Sacramento Area Council of Governments, which represents 22 cities and six counties through which the oil trains could travel.

‘A street fight’

Benicia itself is divided by the proposed project. Some locals worry about the environmental risks and traffic problems, while others tout the benefits of low-cost crude to Valero — a company that accounts for a quarter of the city’s tax revenue.

Benicia Mayor Elizabeth Patterson hasn’t taken a stand on the Valero oil-trains terminal, but says, “We need to make sure that just because one industry wants to do something, we don’t ignore the adverse impact to the other businesses and the community.”
Benicia Mayor Elizabeth Patterson hasn’t taken a stand on the Valero oil-trains terminal, but says, “We need to make sure that just because one industry wants to do something, we don’t ignore the adverse impact to the other businesses and the community.” | Lea Suzuki / The Chronicle

“This is going to be a street fight,” said oil-train opponent Ed Ruszel, whose family woodworking business fronts the railroad tracks next to the refinery. “They have to come across my driveway every day — we’re at ground zero.”

The issue is so contentious that the city attorney recently told Mayor Elizabeth Patterson to stop sending out e-mail alerts about city meetings regarding the oil-train project. According to Patterson, the city attorney warned that her activism could open Benicia’s final decision to legal challenge.

Patterson said she has not taken a stand on the Valero terminal, but that “we need to make sure that just because one industry wants to do something, we don’t ignore the adverse impact to the other businesses and the community.”

She called City Attorney Heather Mc Laughlin’s warning “a blatant effort to muzzle me.” Mc Laughlin did not respond to a request for comment.

Canadian disaster

For Ruszel and other critics of the project, the danger is real. They cite several recent oil-by-rail explosions, including the derailment of a 72-car train that killed 47 people and wiped out much of the town of Lac-Mégantic in Quebec in July 2013.

The Valero refinery in Benicia wants to build a rail terminal where crude oil could be delivered by trains.
The Valero refinery in Benicia wants to build a rail terminal where crude oil could be delivered by trains. | Lea Suzuki / The Chronicle

The Valero-bound trains would pass through Sacramento, Davis and Fairfield, among other cities, en route to Benicia. Those cities have voiced concerns about the terminal, where trains would deliver a total of 2.9million gallons a day of shale oil and tar sands.

“We have lots of support here from our own local people,” said project critic Marilyn Bardet of Benicia, “but the real difference is that there are so many agencies and people from up rail looking at this problem. We feel exonerated — everybody has chimed in and agreed with us.”

Not everyone along the rail line is against the idea, however. State Sen. Ted Gaines, a Republican who represents Rocklin (Placer County) and is running for state insurance commissioner, called the project “beneficial environmentally and economically.”

It “can be done safely given the prevention, preparedness and response measures in place by both Valero and Union Pacific Railroad,” Gaines said.

Setting precedents

The Benicia battle will probably be a preview of numerous local fights over oil trains in California. Oil-by-rail shipments jumped from 1million barrels in 2012 to 6.3million barrels in 2013, according to government estimates. By 2016, the state could be awash with 150million rail-shipped barrels of crude a year.

What Benicia does could influence how future oil-train plans play out. Several cities have called on Benicia to require that all train tanker cars have reinforced walls and be better controlled by new, electronically activated braking systems, and that officials restrict what kind of oil can be shipped to Valero.

Such efforts, however, could run afoul of federal law that preempts states and local governments from setting standards on rail lines. Valero has already warned city officials that it may “invoke the full scope of federal preemption,” a thinly veiled threat to sue if Benicia imposes too many restrictions.

Much of the crude that would arrive via train at Valero is expected to come from the Bakken shale formation in North Dakota. Federal transportation officials recently deemed Bakken crude to be an “imminent hazard” because it is far more easily ignitable than more stable grades of crude previously shipped by rail.

In issuing an alert in May, federal transportation officials warned that oil trains with more than 20 cars are at the highest risk because they are heavier than typical cargo and thus more difficult to control. The federal government is considering requiring additional reinforcement of tanker cars and more robust braking systems.

The federal alert about the danger of crude by rail comes as accidents have skyrocketed, with nine major explosions nationwide since the start of 2013. Last year alone, trains spilled more than 1million gallons of crude in the United States — 72 percent more than the entire amount spilled in the previous four decades combined, California officials say.

The consultants who wrote Benicia’s draft environmental impact study concluded that because the type of crude that would be brought to Valero is a trade secret, they could not factor it into their risk assessment. They calculated that a major spill on the 69 miles of track between Roseville (Placer County) and Benicia could be expected roughly once every 111 years.

Among those who think Benicia needs to take a harder look is state Attorney General Kamala Harris, whose office wrote a letter challenging the environmental impact report this month.

Harris’ office says the report’s authors assumed that the safest rail cars available would be used, disregarded spills of fewer than 100 gallons in determining the likelihood of accidents and, in looking only as far as Roseville, ignored 125 miles of routes north and east of the Sierra foothills town.

Some possible routes go through treacherous mountain passes that historically have seen more accidents, say oil-train skeptics. While not specifically mentioning a legal challenge, Harris’ office called Benicia’s study deficient and said it ignored the “serious, potentially catastrophic, impacts” of an accident.

Not her call

Valero says Harris can voice all the objections she wants, but that she doesn’t get a say on whether the terminal will be built.

“This is really the city of Benicia’s decision,” said Day, the company spokesman. The attorney general and others, he said, are “free to file comments” on the environmental report.

He added that “all the crude oil that Valero ships will be in the newest rail cars, which meet or exceed rail safety specifications.”

“Rail companies have products moving on the rails every day that are flammable,” Day said. “The overwhelming majority of everything transported gets there safely, on time, with no incidents.”

Benicia’s City Council now has to decide whether to order to certify the draft study, order it revised or reject it entirely. When that decision comes, Benicia will be getting a lot of out-of-town attention.

“We have near-unanimity in our region to address the safety issues of the crude-oil shipments by rail,” said Saylor, the Yolo County supervisor. “For us, it has been strictly about public safety. It’s a high-risk operation — we have no choice but to take on this issue.”

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.

Latest derailment: Selkirk, NY – cause pinned down, anxiety lingers

Repost from The Times Union, Albany NY

Derailment’s cause pinned down, but anxiety lingers

By Brian Nearing, October 23, 2014
Railcars are derailed Wednesday night, Oct. 23, 2014, at the CSX yard in Selkirk, N.Y. (Sheriff Craig Apple)
Railcars are derailed Wednesday night, Oct. 23, 2014, at the CSX yard in Selkirk, N.Y. (Sheriff Craig Apple)

A misplaced piece of safety equipment triggered the slow-motion derailment of 18 railroad cars overnight at the spawling Selkirk rail yard, the state Department of Transportation said Thursday.

Eighteen cars — two of which had been earlier emptied of highly explosive propane — derailed about 7:40 p.m. at the sprawling Selkirk yard, which can handle thousands of freight cars a day for rail company CSX and is a critical transit gateway to much of the Northeast. No cars ruptured or spilled, and no one was hurt.

State transportation investigators said the mishap was caused by safety equipment — called a derailer — inadvertently left on the tracks by a crew that had been making repairs. A derailer is meant to protect workers by blocking trains from running over them.

Another worker elsewhere later began using a remote-controlled engine to move freight cars slowly around the yard, unaware the derailer was in the path of the oncoming cars, according to a DOT statement.

“The remote control operator was moving freight cars onto that section of track when they ran into the derailer, pushing them off the tracks. Investigators believe the remote control operator was initially unaware of what was happening and continued to move the cars down the track, causing more to derail,” according to DOT.

Albany County Executive Dan McCoy said the accident, coming days after a liquid propane spill at a tank farm near a sprawling interstate highway intersection, shows the Capital Region is “dancing with the devil” as fossil fuel-laden trains surge through from the Midwest.

Fifteen of the cars in Selkirk had been righted by Thursday afternoon, said CSX spokesman Rob Doolittle. He said four cars were classified for hazardous materials, including two for propane, as well as one containing residue of a chemical herbicide and another containing an industrial acid.

Doolittle said “several of the remaining cars were empty, and none of the other cars contained any hazardous freight.” He said the accident was not causing backups or delays elsewhere on CSX lines.

A vocal opponent of a surge of crude oil rail shipments from North Dakota that are arriving daily in Albany, some carried by CSX, McCoy said the rail company was “downplaying” the mishap and “making it sound like less than it was.” He and Albany County Sheriff Craig Apple went to the yard Wednesday night to inspect the mishap.

Derailed cars were “stacked two or three high,” said McCoy. “There was a huge crater or hole near one of the derailed cars … and one car was leaning against” a tanker that was marked with a placard identifying its contents as propane. “Cars were beaten up, dented in. It looked like a bomb had gone off.”

State DOT spokesman Beau Duffy said CSX notified the state at 8:23 p.m., within a one-hour notification window required under law. He said previous state inspections of the yard have “not found anything out of the ordinary.”

This is the second derailment at the Selkirk yard this year. In February, 13 tanker cars each carrying about 29,000 gallons of highly flammable crude oil derailed, but did not spill or explode. DOT later fined CSX $5,000 for failing to notify the state of the derailment within the one-hour requirement.

Later, inspectors from DOT and the Federal Railroad Administration looked at a mile of track in the Selkirk yard and found 20 “non-critical defects” that were to be repaired, according to a March press release from Gov. Andrew Cuomo.

On Monday, there was “a small release” of liquid propane from a tank farm in North Albany, near the intersections of Interstates 90 and 787, according to statement from tank farm owner Global Partners.

Workers found the leak during a “routine site inspection” about 3:45 p.m., according to a statement by Global Partners Vice President Edward J. Faneuil. The company informed the city Fire Department and burned off “excess gas which could not be recovered,” he said. No one was hurt and the cause of the leak was being investigated.

McCoy said flames from the gas burn went on for hours Monday night. City Fire Chief Warren Abriel said his department was notified by Global about 5 p.m. that they were going to burn off excess gas from one of its storage tanks. He said he was not aware that burn was linked to a leak.

Burning gas vented from tanks is a routine procedure at the Global facility that is not unusual, said Abriel. Global expanded its 540,000-gallon propane storage facility in April; it has been receiving propane shipments by rail there since April 2013.

Spokesman from both state DOT and the state Department of Environmental Conservation said their agencies were not required to be notified about the propane spill.

Central Valley Business Times: Oil company abandons plans to handle Bakken crude in Sacramento

Repost from Central Valley Business Times

Oil company abandons plans to handle Bakken crude in Sacramento

SACRAMENTO, October 22, 2014

•  Cites lawsuit filed by environmentalists
•  “This is a victory for the health and safety of the people of Sacramento”

InterState Oil Company says it is surrendering its air pollution permit that lets it transfer highly volatile Bakken crude oil from railcars to trucks at its transloading facility located at 4545 Dudley Boulevard in the McClellan industrial park in Sacramento.

The decision comes a month after Earthjustice filed a lawsuit on behalf of Sierra Club challenging the Sacramento Metropolitan Air Quality Management District for issuing permits allowing the project without public or environmental review.

Now the air agency says the permit was “issued in error because it failed to meet District Best Available Control Technology requirements.”

The agency and the company have agreed that the transfers will stop by Nov. 14.

“This is the first crude transport project that has been stopped dead in its tracks in California,” says Suma Peesapati, Earthjustice attorney. “This is a victory for the health and safety of the people of Sacramento, for communities along the path of the trucks hauling this dangerous product to the Bay Area, and for the refinery communities where the crude is eventually processed.”

Earthjustice filed the lawsuit on behalf of the Sierra Club on Sept. 23, holding the air district and InterState Oil accountable for neglecting to consider the risk to public health and safety of the project. The lawsuit also challenged the air district for deliberately avoiding its obligations for review under the California Environmental Quality Act despite the fact that the project would have significant increases in air pollutants, including toxic air contaminants.

The air district first issued a permit to InterState to trans-load crude from rail to truck on March 27, however according to an investigation by the Sacramento Bee, the company had been trans-loading crude without a permit as early as six months before that date. No notice was given to local fire and emergency responders or other officials about the handling of the highly flammable substance just seven miles north of the California state capital.

“This is a huge victory for Sacramento residents and communities across California who are put in harms way by trains carrying volatile, hazardous crude that are known to derail and explode,” says Devorah Ancel, Sierra Club staff attorney. “Local, state and federal governments must take further immediate action to notify the public when hazardous crude is railed through their communities and to ban the use of unsafe DOT 111 tank cars.”

As a result of today’s decision, Sacramento Superior Court is expected to dismiss the lawsuit, Earthjustice says.

Bakken crude, a type of shale oil, is more volatile than other kinds of crude oil. It has been blamed for some spectacular — and tragic — accidents, the worst of which was the July 2013 derailment of a train of oil cars carrying Bakken crude in the small Quebec town of Lac-Mégantic. The explosion and fire killed nearly 50 townspeople and leveled more than 30 buildings.