Delta Airlines enters Bakken crude-by-rail business

Repost from UPI.com Business News

Delta sources Bakken crude for Pennsylvania refinery

Deal accounts for one third of refinery’s capacity.
By Daniel J. Graeber   |   July 21, 2014

Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com.

 

 

ATLANTA, July 21 (UPI) —A subsidiary of Delta Air Lines said Monday it signed a five-year deal to send 65,000 barrels of Bakken crude oil per day to its refinery in Trainer, Pa.

Delta subsidiary Monroe Energy signed the deal with midstream energy company Bridger LLC to supply about 30 percent of the crude oil refined daily at the Trainer facility. The crude oil would be sourced primarily from the Bakken reserve area in North Dakota, which the company says is cheaper than oil imported from overseas markets.

“Supplying a third of the crude refined at Trainer from the Bakken further reduces the overall cost of fuel for Delta,” Graeme Burnett, a senior vice president for fuel optimization for Delta and chairman of Monroe, said in a statement.

Bridger is a midstream company that recently invested $200 million on railcars, which are said to exceed current safety standards for crude oil transportation.

There’s not enough pipeline capacity in the United States to handle the glut of oil, forcing some companies to rely on rail as an alternative transit method.

A federal warning in early 2014 said Bakken crude oil may be more prone to explosion than other grades if involved in a derailment. The 2013 derailment of a train carrying Bakken oil in Lac-Megantic, Quebec, left more than 40 people dead.

Increased crude oil production has sparked calls for U.S. exports, though Burnett told U.S. lawmakers more exports of U.S. crude would mean more imports for some markets, which would lead to higher global oil prices.

California Groups Tell EPA: Set Stronger New Standards for Oil Refinery Air Pollution

Repost from EarthJustice

California Groups Tell EPA: Set Stronger New Standards for Oil Refinery Air Pollution

Focus on need for the EPA to do more to protect communities’ health

July 16, 2014 
Conoco Phillips Refinery in Wilmington, CA
Los Angeles, CA — California environmental and community groups—including families living near oil refineries—today provided powerful testimony about why the U.S. Environmental Protection Agency must strengthen protections from hazardous air pollution.The statements were made during a day-long public hearing in Wilmington, Calif., which the EPA held as part of its 60-day public comment period on proposed standards that would strengthen emissions and monitoring requirements for the country’s nearly 150 oil refineries.In advance of the hearing, Jane Williams, director of California Communities Against Toxics, said:

“The EPA’s proposal is an improvement over the status quo. However, it does not go far enough to reduce the harmful, toxic air that our children are exposed to. More must be done to reduce hazardous pollution spewed by the nation’s oil refineries to prevent cancer, breathing problems and other illnesses in our children.”

Although the proposed standards—to be finalized in April 2015—reduce hazardous air pollution by 5,600 tons each year and reduce cancer risk for millions of Americans, community leaders who have been working for decades for stronger protection say the standards fall short of the Clean Air Act mandate that all sources must follow at least, the average, emission control achieved by the cleanest refineries.

The proposed standards that were published in the federal register last month resulted from a consent decree resolving a lawsuit filed by Earthjustice and the Environmental Integrity Project on behalf of environmental groups in California, Louisiana, and Texas that argued that EPA missed its deadline under the Clean Air Act to review and update toxic air standards for oil refineries by more than a decade.

The proposed standards, include a fence line monitoring requirement for the first time, which would require refineries to measure the toxic air contaminant benzene at the property line as it goes into the local community’s air. In addition, if benzene exceeds the new action level EPA proposes to establish, the federal agency would require a plan for corrective action.

In addition, the proposed standards would require tighter controls on emissions from storage tanks and other parts of refineries that are major contributors to toxic air pollution (such as delayed coker units) along with controls and monitoring requirements on flaring or the burning of waste gas, which is, too often, used routinely and which creates harmful new pollution.

The proposed standards also finally remove unlawful loopholes that previously allowed refineries to escape scot-free when they violated the air standards.

For EPA’s new standards to provide much-needed protection for communities on the ground, environmental groups are calling for stronger fence line monitoring requirements that would mandate the use of the best current technology to give neighborhoods a real-time, continuous measure of pollution, not just a snapshot or long-term average that masks peak exposure levels.  The standards also must require accessible public reporting and enforceable corrective action so refineries will quickly fix violations. In addition, groups want to see a hard limit on flaring to ban its routine and unnecessary use and to assure refineries minimize flaring in all other circumstances, as well as tighter controls on emissions from other parts of refineries.

Cynthia Babich, of Del Amo Action Committee said she is most focused on the real world health impacts of refineries’ pollution when considering this proposal. “The EPA must do a health evaluation using the most current scientific methods, instead of ignoring dangerous health risks our communities face,” said Babich.

“People who live near refineries are often surrounded by multiple sources of contaminants from other polluters besides refineries, like chemical plants. And in view of this and the greater risk to our most vulnerable children, EPA should find the current, high level of health risk to be unacceptable and set stronger emission limits,” she said.

Jesse Marquez, of Coalition For A Safe Environment, said his organization supports EPA’s proposal to make flares more efficient when they are used, and also calls on the EPA to limit flared emissions by setting a hard cap on flaring that will ban its everyday use.

“The oil industry claims emissions have been decreasing for decades but we found that flared emissions at the four refineries in the Wilmington area increased every year between 2000 and 2011,” Marquez said. “We must have stricter standards to end all unnecessary flaring and improve our air quality.”

Although the oil industry is objecting to the new proposed standards, community groups’ testimony illustrated today how important it is for EPA to reduce toxic air pollution and decrease the unacceptable extra health threats millions of Americans currently face just because they live near refineries. EPA predicts its current proposal will take about 5,600 tons each year of hazardous chemicals, associated with leukemia and other devastating forms of cancer, out of the air.

Lisa Garcia, Earthjustice’s Vice President of health, said: “It is imperative that we fight industry’s unfounded attempts to weaken EPA’s attempt to strengthen health protection, and, instead, do all we can to protect everyone—especially fence line communities and those that are overburdened—from the unacceptable harm caused by oil refineries’ pollution. We must stand behind EPA’s efforts to set strong new hazardous air pollution standards, just as the Clean Air Act requires it to do.”

Eric Schaeffer, executive director of the Environmental Integrity Project said: “EPA’s analysis shows that the proposed emission controls are worthwhile and will have negligible impact on the bottom-line of these companies, many of which report multi-billion dollar profits every year. The communities affected by refinery pollution cannot continue to pay for this pollution in the form of medical bills and missed school and work days, which add up to tens of millions of dollars every year.”

Environmental groups to DOT: Ban Older Railcars for Bakken Oil

Repost from EarthJustice.org

Community Leaders, Advocates Call on Secretary of Transportation To Ban Use of Hazardous Rail Cars

Seek emergency order banning the use of hazardous rail cars to ship explosive crude oil

July 15, 2014
Crude-by-rail explosion
The fireball that followed the derailment and explosion of two trains, one carrying Bakken crude oil, on December 30, 2013, outside Casselton, N.D. — U.S. Pipeline and Hazardous Materials Safety Administration

Washington, D.C. — Today, two national environmental organizations filed a formal legal petition to compel the Secretary of the U.S. Department of Transportation to issue an emergency order prohibiting the use of hazardous rail cars—known as DOT-111s—for shipping flammable Bakken crude oil (See FAQ sheet for more info on petition). The National Transportation Safety Board has repeatedly found that the DOT-111 tank cars are prone to puncture on impact, spilling oil and often triggering destructive fires and explosions. The Safety Board has made official recommendations to stop shipping crude oil in these hazardous tank cars, but the federal regulators have not heeded these pleas (See quote sheet of on-record statements by public officials for more info).

“These oil tankers have been called the Ford Pinto of the rails,” said Ben Stuckart, City Council president in Spokane, Washington. “National Transportation Board members, U.S. Senators, and local officials are all on record on the danger of these antiquated, unsafe rail cars. It’s long past time for the government to take action to protect communities like mine.” Officials estimate between 13 and 16 oil trains a week come through Spokane, a major hub for rail traffic, although those numbers would skyrocket if planned oil terminals on the West Coast are built. Spokane is one of many towns across the country that has seen an organized and strong community opposition to these trains.

In September 2013, in the wake of the deadly Lac-Mégantic and other rail disasters, the federal government began a rulemaking process to set new safety standards for crude oil rail cars. Transportation Secretary Anthony Foxx has stated publicly that the DOT-111s will likely have to be phased out, and even questioned whether the industry’s replacement design is safe enough for U.S. communities. The draft rule is currently under review at the White House. But the groups believe that the process is moving too slowly and likely to drag on a year or more before a final rule is in place. While he has issued emergency orders addressing other urgent safety issues, all the Department has done to date is urge shippers to use the safest tank cars in their fleets. Immediately banning the use of DOT-111 tank cars to ship Bakken crude would reduce the risk of punctures and oil spills by over 75 percent, according to rail industry estimates.

“The continued use of potentially unsafe DOT-111 train cars is a disaster waiting to happen. The people of Albany County are standing up today to ask the federal government take swift action to improve rail safety,” said Albany County Executive Daniel P. McCoy. “In light of recent incidents in North America, a strong response from the federal government is needed to protect the public.” Trains carrying Bakken crude oil arrive daily into the Port of Albany, like many other towns across the country. Firefighters and first responders have hurried to train for impending disasters and increased risk.

“These exploding oil trains are in our backyards, where our kids play,” said Charlene Benton, president of the Ezra Prentice Homes Tenants Association in Albany, NY. “We’re putting our children’s and our neighbors’ lives in jeopardy here. Over the last three years, we’ve seen a huge increase in the number of these dangerous oil trains coming through our community. Our community has organized against these oil trains because we don’t want to be the site of another catastrophic disaster. We need a national emergency ban of these oil rail cars.”

The recent surge in U.S. oil production, much of it from Bakken shale, has led to a more than 4,000 percent increase in crude oil shipped by rail since 2005, mostly in long oil trains with as many as 120 cars and over 1.5 miles long. The Bakken crude has proven to be more explosive than shippers represented. And the Bakken crude has been shipped in the most dangerous tank cars on the market – the DOT-111s. The result has been oil spills, destructive fires, and explosions when oil trains have derailed. More oil spilled in train accidents in 2013 than the total in 1975-2012 combined. Canada has taken steps to ban many DOT-111s immediately and is phasing them out of hazardous transport altogether, which will shift even more of these tank cars to the U.S.

The petition follows closely on the announcement that the oil and rail industries have reached their own compromise proposal on rail safety, one that would only seek to slowly phase out dangerous DOT-111s over three years, and that would propose a weaker standard for new rail cars than the industry had previously proposed.

Meanwhile, it is estimated that 25 million Americans live in the dangerous blast zone along the nation’s rail lines. View this MAP of the nation’s rail lines and local actions against oil-by-rail or this MAP that shows your proximity to an oil rail line.

The petitioners are Sierra Club and ForestEthics, represented by Earthjustice.

Yolo County Supervisors send letter to Benicia critical of Draft EIR

Repost from The Sacramento Bee
[Editor: This story is also covered on the Woodland Daily Democrat.  – RS]

Yolo supervisors challenge Benicia on crude oil train plans

By Tony Bizjak, Jul. 15, 2014
GVH2EIRKB.3STF
Steve Helber / The Associated Press | Several CSX tanker cars carrying crude oil derailed and caught fire along the James River near downtown Lynchburg, Va., in May. Emergency officials are pressing railroads for more information on oil train schedules and routes so they can be prepared.
ad more here: http://www.sacbee.com/2014/07/15/6558895/yolo-supervisors-challenge-benicia.html#storylink=cp

In a letter to be sent this week, Yolo County officials accuse the city of Benicia of failing to adequately review the potential for oil spills and fires resulting from a plan by the Valero Refining Co. to run two daily trains carrying crude oil through the Sacramento region to its Bay Area refinery.

A recently published environmental report by Benicia concludes the project will not cause any significant negative impact to cities and habitat up the rail line. That finding was based on an Illinois professor’s analysis saying a train incident causing an oil spill might happen only once every 111 years between Roseville and Benicia.

The Yolo letter, approved Tuesday by the Board of Supervisors, calls that analysis inaccurate and irrelevant because it doesn’t explore the potential magnitude of oil spills. A crude oil train crash and explosion last year in Lac Mégantic, Canada, killed 47 people and leveled several blocks of downtown.

“A catastrophic explosion and spill in a populated area is different from a 100-gallon spill in a shipyard that is quickly cleaned up,” the Yolo letter states. “Without considering the second half of the risk analysis, the (report) cannot conclude that the risk of a spill is insignificant.”

The Yolo board was split, 3-2, on sending the letter. Yolo Supervisor Matt Rexroad opposed the letter, saying he believes the risk of a spill is small and the county should focus its time on issues where it will have more impact. “There is only so much we can have an impact on,” he said. “You allocate resources (based on) how big you think risks are. I don’t know this one is worth fighting.”

Board Chairman Don Saylor took the opposite tack, saying the issue presents clear safety concerns for communities, businesses and people alongside the railways. “The fact is that a single spill or fire in Yolo County in areas such as downtown Davis, the campus of UC Davis or the many other communities in our region could result in significant property damage and injuries,” Saylor wrote in an email to The Sacramento Bee.

Other local cities and counties are expected to issue comments challenging the Benicia rail plan environmental analysis, which was published last month. Benicia officials have set a Sept. 15 deadline for receiving reactions. If its plans are approved, Valero officials have said they plan to begin train shipments early next year. The transports are among the first of what California officials say is an expected boom in crude-by-rail shipments through the state, prompted by the lower cost of North Dakota and Canadian crude.

For safe and healthy communities…