All posts by Roger Straw

Editor, owner, publisher of The Benicia Independent
Bakken Crude, Crude By Rail, Environmental review, Marine transport, Oil Industry, Oil storage, Pipeline transport, Pittsburg WesPac, WesPac Midstream LLC

Pittsburg CA: Critics blast proposed oil terminal, even without Bakken crude trains

Repost from The Contra Costa Times
[Editor:  Significant quote: “WesPac officials said they dropped inbound crude oil shipments by rail from their plans for several reasons, including public sentiment against it, an unstable regulatory environment surrounding those shipments, and drops in crude oil prices that have made such shipments less economically viable.”  – RS]

Pittsburg: Critics blast proposed oil terminal, even without Bakken crude trains

By Sam Richards, 04/07/2015 12:31:04 PM PDT

PITTSBURG — Train loads of Bakken crude oil are no longer in the plans for a proposed oil storage terminal near the waterfront, but that does not mean the project is being welcomed to town with open arms.

The City Council voted 5-0 Monday night to approve amending the environmental report for WesPac Midstream LLC’s proposed Pittsburg Terminal Project, which would renovate and modernize a long-dormant PG&E tank farm between West 10th Street and the Sacramento River waterfront.

The key change is that the five previously planned 104-car trains of domestic oil, mostly the volatile Bakken crude, are no longer part of the project. The new EIR will reflect that.

Councilman Sal Evola stressed that the vote reflected the council’s desire for “the process” to play out and fully vet the proposal.

“Every project at least deserves its fair process,” Evola said. “I’m all for preserving our industrial base, but we have to do it safely, and fair process is needed.”

Others were less interested in process, saying the WesPac proposal to bring an average of 242,000 barrels of crude or partially refined crude oil to be unloaded daily from ships and from pipelines, and stored in 16 tanks on 125 acres, is a problem for various reasons.

Speakers told the council that vapors from the storage tanks, the possibility of spills into the Sacramento Delta and the danger of the tanks exploding — all near hundreds of downtown homes — are potential issues, and that the project should simply be rejected.

“The only way you can mitigate this project is not do it,” said Willie Mims, representing the NAACP and the Black Political Association.

And though some at the meeting Monday night are grateful that WesPac that no longer plans to bring crude oil to the terminal by rail, others told the council that leaving out rail shipments doesn’t come close to salvaging the project. Some 30 people holding up “No WesPac” signs or wearing similar T-shirts crowded the council meeting.

Without the trains, the Pittsburg Terminal Project would now take oil from ships and a pipeline from the Central Valley and store it for later processing by refineries in Martinez, Benicia, Rodeo and Richmond.

Pamela Aranz of Antioch, representing the group Global Community Monitor, was one of several speakers who criticized the WesPac proposal as a dinosaur — old-fashioned, with increasingly outmoded technology. Others said the oil terminal would be at cross purposes with a nicely developing downtown area. Developing wind and/or solar power on that land, Aranz and others said, would make better sense.

Plans for the Pittsburg Terminal Project, first proposed in 2011, had been dormant for the past year, after local groups like Pittsburg Defense Council had protested the prospect of trains carrying volatile Bakken crude oil rolling in to the city. Communities across the United States — including Pittsburg, Richmond and Berkeley — have come out in opposed to crude by rail shipments through their cities after several high-profile derailments, including one in Lac Mégantic, Quebec, in 2013 killed 47 people and destroyed part of that city.

The new environmental report, to be paid for by WesPac, will replace an earlier one that was criticized in 2014 by the state Attorney General’s office because it did not suitably analyze air pollution impacts, address the risks of accidents involving storing and moving oil, consider the project’s climate change impacts, and consider a “reasonable range of alternatives” that could reduce impacts. WesPac officials said they dropped inbound crude oil shipments by rail from their plans for several reasons, including public sentiment against it, an unstable regulatory environment surrounding those shipments, and drops in crude oil prices that have made such shipments less economically viable.

If the needed approvals come at a typical pace, renovation work at the old PG&E tanks could begin in early 2016, and likely would take between 18 and 24 months.

Representatives from several area labor union locals supported moving ahead with the environmental study. Some said Monday night they wanted the jobs, both to rebuild the terminal and to operate it. Others said they favored the environmental process determining whether the terminal would be a safe place for union workers to be.

That, Evola said, is one benefit of continuing the process. “We want to be overly transparent,” he said.

That is fine with Lisa Graham and other members of Pittsburg Defense Council.

“We’ll be shining a bright spotlight on the project in the coming months,” she said.

Bakken Crude, CPC-1232, DOT-111, Oil Industry, Oil prices, Oil producers, Rail traffic, Refinery safety, Tank car retirement, Tank car retrofit

Wall Street Journal: Fewer Oil Trains Ply America’s Rails

Repost from The Wall Street Journal

Fewer Oil Trains Ply America’s Rails

Safety concerns, low crude prices depress train traffic

By Alison Sider, April 6, 2015 3:30 p.m. ET
In March, oil-train traffic was down 7% from a year earlier. The slowdown comes amid safety concerns. Photo: David Paul Morris/Bloomberg News

The growth in oil-train shipments fueled by the U.S. energy boom has stalled in recent months, dampened by safety problems and low crude prices.

The number of train cars carrying crude and other petroleum products peaked last fall, according to data from the Association of American Railroads, and began edging down. In March, oil-train traffic was down 7% on a year-over-year basis.

Railroads have been a major beneficiary of the U.S. energy boom, as oil companies turned to trains to move crude to refineries from remote oil fields in North Dakota and other areas not served by pipelines. Rail shipments of oil have expanded from 20 million barrels in 2010 to just under 374 million barrels last year, according to the U.S. Energy Information Administration.

About 1.38 million barrels a day of oil and fuels like gasoline rode the rails in March, versus an average of 1.5 million barrels a day in the same period a year ago, according to a Wall Street Journal analysis of the railroad association’s data.

Oil-train traffic declined 1% in the fourth quarter of 2014 as crude-oil prices started to tumble toward $50 a barrel. More recently, data from the U.S. Energy Department show oil-train movements out of the prolific Bakken Shale in North Dakota have leveled off as drillers there have begun to pump less, though oil-train shipments from the Rocky Mountain region have risen.

WSJ_Shipped-By-US_Rail_2014-15The slowdown comes as federal safety experts call for stronger tank cars. On Monday the National Transportation Safety Board recommended an aggressive five-year schedule for phasing out or upgrading older railcars used to haul crude-oil. A string of oil train accidents in recent months have resulted in spills, intense fires and community evacuations. The NTSB said railcars in use today rupture too quickly and aren’t fire-resistant enough.

A few incidents have involved more modern tank cars—the CPC-1232 model. The NTSB also said the new railcar’s design isn’t sturdy enough. “We can’t wait a decade for safer rail cars,” said NTSB Chairman Christopher A. Hart Monday in a letter to federal transportation regulators.

Opponents of a fast phaseout have said that if tougher standards are introduced too quickly it will create a railcar shortage and make some oil train operations unprofitable.

Many refiners, including Philadelphia Energy Solutions, say they are still committed to shipping oil on trains. Chief Executive Phil Rinaldi in December said he likes that railroads don’t require long-term contractual agreements the way pipelines do. That allows his plant managers to buy crude only when it’s needed.

With pipelines, “you have to pay for that transit whether it makes sense or not,” Mr. Rinaldi said. “With rail, that’s not the case.”

Railroad operators have warned investors that their outlook for transporting crude is slightly weaker than it was last year, said David Vernon, a rail analyst at Sanford C. Bernstein & Co.

BNSF Railway Co., which is responsible for about 70% of U.S. oil-train traffic, operated as many as 10 trains a day last year, but is averaging nine a day now, a spokesman said.

Clean energy, Fossil fuels, Post Carbon Institute

Richard Heinberg: The Law of Diminishing Returns

Repost from Post Carbon Institute

The Law of Diminishing Returns

By Richard Heinberg, April 7, 2015

Part one of a four-part video series. Released in conjunction with Afterburn: Society Beyond Fossil Fuels.

Is modern society hitting our defining moment, the point of diminishing returns?

In this brand new short video released today, Richard Heinberg explores how — in our economy, the environment, and energy production — we may well be. When previous societies have hit similar limits, they often doubled-down by attempting ever more complex interventions to keep things going, before finally collapsing. Will this be our fate too? And is there an alternative?

This video is the first in a four-part series by Richard Heinberg and Post Carbon Institute. The themes covered in these videos are much more thoroughly explored in Heinberg’s latest book, Afterburn: Society Beyond Fossil Fuels.

Derailment, Empty tank cars, Public permitting, Rail Safety, Residue train, Train collission

Pennsylvania man in good condition after collision with “empty” oil train

Repost from Lancaster Online
[Editor:  I have been asking various oil train experts about the volatility of “empty” crude oil tank cars.  These cars are not truly empty: returning trains of nearly-empty cars are referred to as “residue trains,” and carry the same identifying hazmat placard as when they are full.  Of course, these cars have been known to derail or crash as happened in this report.  I have not been able to find much documentation, but several reports claim that these cars can explode, sending shrapnel and causing major (and presumably relatively short-lived) fires.  Rail and oil insurers are certain to have calculated risk assessments on these cars.  But I have no record of this risk being addressed in permitting reviews.  What additional safety risk is added to a crude-by-rail project being considered for permitting in a city like Benicia?  Please contact me if you have further information, send to rogrmail at gmail dot com.  – RS]

Marietta man, 85, in good condition after collision with oil train

By Tom Knapp, Apr 7, 2015
crash 032715
The wreckage of a pickup truck is shown after a collision March 27 with a northbound oil train. BRIAN LEID

An 85-year-old man is recovering after his pickup truck was struck by an empty oil train March 27 in Bainbridge.

Clark “Red” Arnold, of Marietta, was in critical condition as recently as Friday, but was listed in good condition Tuesday, a spokeswoman at Penn State Hershey Medical Center said.

Arnold was trapped in the truck after he apparently stopped his vehicle in the train’s path.

“He just didn’t hear the train,” Conoy Township supervisor Stephen Mohr said Friday afternoon.

“He and the train got to the intersection at about the same time. When he did see the train, he panicked and stopped on the tracks.”

Mohr, who witnessed the crash, said he had been speaking to Arnold just moments before the accident at the nearby Koser Park Boat launch area.

“You’re helpless,” he said. “I knew it was going to happen before it happened, but there’s nothing you can do.”

The crash occurred at the Race Street crossing at North Front Street.

Emergency crews were called to the scene at 1:29 p.m.

The Norfolk Southern oil train was heading north toward Harrisburg and was not carrying oil at the time of the crash, according to police.

Local, state and federal officials have expressed concerns about explosive Bakken crude oil being transported by train after several recent derailments.

Oil trains, often pulling more than 100 tanker cars, roll through about 35 miles of Lancaster County along the Susquehanna River up to 16 times a week.

Arnold was freed from his truck and taken to Hershey Medical Center for treatment, according to Lt. Stephen Englert of Susquehanna Regional Police.

“It was pretty serious,” Mohr said. “He took a beating. … They had to take the vehicle apart to free him.”

Mohr said Arnold was “conscious and talking to us” while rescue workers freed him from the truck.

There are no crossgates or warning lights at the intersection, Mohr noted.

Witnesses at the scene stated they heard the Norfolk Southern train horn well before the train collided with the vehicle, according to the Susquehanna Regional Police report.

Randy Gockley, director of the Lancaster County Emergency Management Agency, said the train did not derail, and responders on the scene reported no leakage from the train.

The Race Street intersection is the entrance to Bainbridge American Legion Park, which serves as the trailhead for the Northwest Lancaster County River Trail, as well as the location of the Bainbridge Inn.

Englert said the collision does not make him any more concerned about oil trains traveling through Conoy.

Capt. Leonard Crater of Bainbridge Fire Department said the the victim apparently “got a little too close to the tracks, and was unaware of the train coming.”

Onlookers “didn’t think he was trying to beat the train,” Crater said.

He was glad train cars were empty so “there was no kind of worry about any kind of leak or explosions or anything like that.”

The Bainbridge fire captain said nearly 20 firefighters from his department and nearby units responded, along with police.

Penny Rhan of 114 Race St., some 50 yards from the crash, heard a boom but didn’t initially realize it had been a train accident.

Another Race Street resident, Wayne Brooks, said “it’s been a long time since we’ve had an accident there.”

Staff writers David O’Connor and Ryan Robinson contributed to this report.