BNSF Railway: Future of crude by rail depends on safety

Repost from The Kansas City Star
[Editor: Significant quote by BNSF Executive Chairman Matt Rose: “Without focus on the elements of safety, the social license to haul crude by rail will disappear, to say nothing of the regulatory agencies’ response.”  – RS]

BNSF: Future of crude by rail depends on safety

James MacPherson, The Associated Press | 2014-05-21

— The future of crude oil shipments by train depends on proving to the public that it can be done safely, the head of BNSF Railway Co. said Wednesday.

“Without focus on the elements of safety, the social license to haul crude by rail will disappear, to say nothing of the regulatory agencies’ response,” BNSF Executive Chairman Matt Rose told several hundred people at the Williston Basin Petroleum Conference in Bismarck.

BNSF is based in Fort Worth, Texas, but is part of Warren Buffett’s Berkshire Hathaway Inc., based in Omaha, Nebraska. The railroad is the biggest player in the rich oil fields of Montana and North Dakota, hauling about 75 percent of the more than 1 million barrels that moves out of the region daily.

Rose told the conference that the railroad is committed to preventing accidents like its Dec. 30 crash outside Casselton that left an ominous cloud over the town and led some residents to evacuate. The disaster in the small town west of Fargo was one of at least eight major accidents during the last year, including an explosion of Bakken crude in Lac-Megantic, Quebec that killed 47 people. Other trains carrying Bakken crude have since derailed and caught fire in Alabama, New Brunswick and Virginia.

Rose last month joined U.S. Secretary of Transportation Anthony Foxx at the North Dakota crash site, where options for enhancing tank car standards were discussed.

The crash occurred when a train carrying soybeans derailed in front of a BNSF oil train, causing that train to also derail and set off fiery explosions. The crash spilled about 400,000 gallons of crude oil, which took nearly three months to clean up.

Rose said the railroad has learned from the disaster and has done such things as decreased train speeds in some areas and increased inspections. The railroad also announced in February that it would voluntarily purchase a fleet a of 5,000 strengthened tank cars to improve safety for hazardous materials shipments. The company said it hoped to accelerate the transition to a new generation of safer tank cars and give manufacturers a head start in designing them as federal officials consider changes to the current standards.

Not everyone in the oil sector is eager to transition to stronger tank cars. At the expo a day earlier, Kari Cutting, vice president of the North Dakota Petroleum Council, said it was “not proven that extra steel is going to prevent those breaches.”

Cutting also said the newer, stronger DOT-111 tank cars have 14 percent less capacity than older tank cars. Cutting said making those cars the standard will require hundreds more trains to make up the lost volume, actually increasing the risk of accidents.

Oil from North Dakota began being shipped by trains in 2008 when the state reached capacity for pipeline shipments. The state is now the nation’s No. 2 oil producer, behind Texas.

BNSF said it plans to invest $5 billion in its railroad this year, including $900 million to expand capacity where crude oil shipments are surging. Its 2014 spending plan is about $1 billion more than last year, a record, Rose said.

Much of the upgrades will be aimed at safety, he said.

“BNSF believes, at the end of the day, that every rail accident is preventable,” Rose said.

Read more here: http://www.kansascity.com/2014/05/21/5037936/bnsf-future-of-crude-by-rail-depends.html#storylink=cpy

CRUDE – inspirational speeches & videos

Repost from C.R.U.D.E. (Crockett-Rodeo United to Defend the Environment)

INSPIRATION: Speeches and Educational Forum Film clips

This page has select video recordings of teach-ins from the 2013-14 Sunflower Alliance speakers series as well as the keynote speaker for the 350 BayArea DIrty Energy Clean Energy conference, Stanford University’s Dr. Marc Jacobson. Film clips from the Sunlfower Alliance forums (shown below) feature the following speakers:  Antonia Juhasz (investigative reporter, oil industry analyst and author); Greg Karras (refinery specialist and senior scientist with CBE); Marilaine Savaard (spokesperson from the Lac Megantic Citizens Committee); Diane Bailey (senior scientist, Natural Resources Defence Council); Mayor Gayle McLaughlin of the City of RIchmond; Pennie Opal Plant (Idle No More) and, last but not least, community activists Marilyn Bardet (Benicia), George and Lyana Monterey (Pittsburg) and Nancy Rieser (Crockett/Rodeo)

But first…

  • A MOMENT OF INSPIRATION FROM THE 2014 GOLDMAN ENVIRONMENTAL AWARDS (San Francisco)

THE ROBERT KENNEDY JR KEYNOTE SPEECH: For 25 years the Goldman family has been honoring grassroots environmental activists from all over the world.  This year, Kennedy opened the awards ceremony. His voice was hoarse but his words and spirit were passionate.  Kennedy pulled no punches and basically blew the top off the Opera House.

For all of you battle-weary activists out there, take heart!  There ARE folks out there — no different from you or me — who fight the Davy and Goliath battles and prevail!

Here are the 2014 award winners:  http://www.goldmanprize.org/recipients/current kennedyHere is Kennedy’s speech:  https://www.youtube.com/watch?v=ac86elWP-l0

  • SUNFLOWER ALLIANCE CRUDE BY RAIL COMMUNITY FORUMS 

Sunflower Alliance sponsored educational forums in Berkeley, Martinez, Pittsburg and Richmond informed the public about the dangers of crude by rail and the local refinery expansion projects, namely: Chevron (Richmond), Phillips 66 (Rodeo) Valero (Benicia) and Wespac (Pittsburg). Below are links that will give you access to speaker content from the Sunflower Alliance forums in both RIchmond  and in Berkeley.  These film clips are really the next best thing to being there!

girl with gas mask

To see presentations made by the 5 people below (filmed at the Bobby Bowens Center in RIchmond), click here  http://www.sunflower-alliance.org/video_clips_forum_on_crude_by_rail

  • Antonia Juhasz (leading oil industry analyst, author of Black Tide: The Devastating Impact of the Gulf Oil Spill and The Tyranny of Oil: The World’s ,Most Powerful Industry – and What We Must Do To Stop It)
  • Marilaine Savaard (spokesperson for the Citizens Committee of Lac-Megantic Quebec, site of the devasting oil train explosion that wiped out the center of town and claimed 47 lives)
  • Gayle McClaughlin (City of RIchmond Mayor who has taken on Chevron)
  • George Monterrey (a community organizer from the Pittsburg Ethics Council, one of two organizations who have taken on the Wespac infrastructure project)
  • Pennie Opal Plant (Idle No More, SF Bay Solidarity and the Connect the Dots Refinery Corridor Healing Walks)

To see presentations made by the 5 people below (filmed at the Berkeley Ecology Center) click here:  https://www.youtube.com/watch?v=EgpCKeWaLhk&list=PLpBEkz110SpOb-DDgp70S6Cd6swBTBoA0&index=2

  • Greg Karras (senior scientist from Communities for a Better Environment/CBE)
  • Marilyn Bardet (Community Activist from Benicia, fighting the Valero project)
  • Diane Bailey (senior scientist, Natural Resources Defense Council)
  • Lyana Monterrey (activist, Pittsburg Defence Council organzing around the  WesPac infrastructure project)
  • Nancy Rieser (activist from Crockett, one of many folks dealing with the Phillips 66 project in Rodeo)

If you keep watching…you will see more clips from a “Call to Action” sponsored by the group, Benicians for a Safe and Healthy Community.

  • WATCH THIS SPACE FOR KEYNOTE SPEECH BY STANFORD PROFESSOR MARC JACOBSON AT MAY 2014 THE DIRTY ENERGY/CLEAN SOLUTIONS CLIMATE CONFERENCE IN THE SF BAY AREA

While we wait for the presentation to go up on the web, enjoy this video of David Letterman interviewing the professor! Click the link below to watch the Late Show segment.

http://vimeo.com/83279421jacobson

Two California Senate bills: Oil and Gas Well Stimulation Bill (anti-fracking/acidizing), and Oil Spill Prevention Response

Exclusive to The Benicia Independent
[Editor: Thanks to Benician Judi Sullivan for her monitoring of California Senate hearings and for this report.   – RS]

Report on Anti-Fracking Bill in California Senate

By Judi Sullivan  |  May 19, 2014

SB 1132, The Oil and Gas Well Stimulation Bill (Anti fracking/acidizing), was put before it’s third committee today, the Appropriations Committee, and placed in the Suspense File.  This is where all bills may be held if they are considered to have an annual cost of more than $150,000. Because of this stipulation, there was no official vote on the Bill.  It is now under fiscal analysis to be reconsidered on Friday during the Suspense File Hearing, during which time no testimony is presented by the bill’s author nor by witnesses. A vote will then be taken and if the bill passes, it will go in front of the entire Senate.

The committee room, which was much larger than previous ones used for the first two hearings, was once again a packed house with supporters of the bill from all over the state.  One woman who spoke said she took a nine hour Amtrak Train from L.A. just to be there to  testify against fracking.  ALL of the public testimonies given were in support of the bill. The Western States Petroleum Association, (WSPA), which is the biggest, wealthiest and most powerful corporate lobby in Sacramento, was the official testifying opponent.

In the course of conversation at the hearing,  it was revealed that Conservative Republican Senator Ted Gaines, who appears to be against SB 1132,  may become a new supporter of “No Crude by Rail.”  He lives in Roseville, and has recently become seriously concerned about the  transportation risks of that commodity.  Roseville is a major hub of Crude by Rail’s route.

Senator Pavley, (supported by Senators Wolk and Lara) presented SB 1319, promoting “Oil Spill Prevention Response,” seeking regulations for Marine, Pipeline and Crude by Rail Transports to be under one regulation which would include having local governments informed of  what is being transported through their areas at any given time.

According to her findings, Governor Brown is forming a new staff of 38 people to deal with the concerns of this Bill.

After the hearing sessions, some of the anti-fracking supporters rallied with posters and chanting in front of The California History Museum on “O” St. where Governor Brown was speaking at a Conference concerning Climate Change.

——  Later ——

Just got a request suggesting calling  these Senators to try and gain their support, asking them to vote yes on SB 1132:

Senator Kevin De Leon (916) 651-4022
Senator Ricardo Lara (916) 651-4033
Senator Ed Hernandez (916) 651-4024
Senator Cathleen Galliano (916) 651-4005
Senator Ben Hueso (916) 651-4040
Senator Lou Correa (916) 651-4034
Senator Carol Liu (916) 651-4025
Senator Richard Roth (916) 651-4031
Senator Norma Torres (916-652-4032

If SB 1132 passes the Senate vote,  the four committee hearing process will start all over again in the Assembly.  If it passes there,  then Governor Brown will have his vote.  I  have talked with Senator  Mitchell’s and Senator Leno’s staff, the main co-sponsors of this bill, and both recommend calling Governor Brown’s office right now to demonstrate public support  on this crucial issue. Writing to him is also an option.

Brown has the power to pass or veto the bill.  I feel it would be wise to call him.  His phone number is (916) 445-2841.  As we know, he has received substantial donations from Big Oil.

Martinez Shell Refinery to refine more light Bakken crude

Repost from Bloomberg

Shell Considers Retiring California Coker Amid Shale Boom

By Lynn Doan May 19, 2014

Royal Dutch Shell Plc (RDSA), Europe’s biggest oil company, is considering retiring one of two coking units at its only refinery in California as the company seeks to run lighter crude at the plant.

The company has applied to county regulators for a permit to shut the flexicoker at the 156,400-barrel-a-day Martinez refinery northeast of San Francisco, a move that would shrink the plant’s reliance on heavy oils and cut its greenhouse-gas emissions by 15 percent, Destin Singleton, a Shell spokeswoman, said May 16. The unit helps convert the denser crude into more valuable products such as diesel and gasoline.

Shell is considering the shutdown as hydraulic fracturing and horizontal drilling unleash record volumes of light oil from shale formations across the middle of the U.S. California’s refiners, lacking pipeline access to the growing crude supplies, are bringing in the most ever by rail as they work to counter shrinking production within the state and from Alaska.

“The reality is that we are looking at each individual refinery and making economic decisions as to what is the most optimal feedstock,” John Abbott, downstream director for The Hague-based Shell, said in an interview at Bloomberg’s headquarters in New York May 16. “This is one of the most competitive assets on the West Coast of the U.S. and in California.”

Industry refining margins on the U.S. West Coast, a rough indicator of profitability, averaged $7.62 a barrel in the first quarter, almost twice the $4.07-a-barrel coking margin on the Gulf Coast, Shell said in a statement April 30.

Train Deliveries

While the Martinez refinery doesn’t have the equipment to unload oil from rail cars, it receives crude by pipeline from a complex in Bakersfield, California, that takes train deliveries, Singleton, based in Houston, said by e-mail. The refinery would continue to receive oil by pipeline and vessel using existing infrastructure once the coker is shut, she said.

Heavy crude pumped from California’s San Joaquin Valley dropped 35 cents to $95.20 a barrel, data compiled by Bloomberg at 2:01 p.m. New York time show. Light crude from North Dakota’s Bakken formation gained 82 cents to $98.59 a barrel.

Crude Mix

“Overall, heavy crudes are a big part of our current mix,” Singleton said. “We’ll be processing the same crudes we refine today, but the mix will be lighter — meaning significant reductions in greenhouse gas emissions, less electricity use, and more efficient operations.”

A delayed coker, which was installed at the refinery in the 1990s, based on air regulatory filings, will remain in service, she said.

Refiners from Tesoro Corp. (TSO) to Valero Energy Corp. (VLO) are working to bring more shale oil to their plants on the U.S. West Coast by rail. Trains delivered 395,053 barrels of oil to California in March, a record volume for that month, the most recent data available from the state Energy Commission show.

Shell is seeking permits to build a rail complex at its Anacortes refinery in Washington state that would allow the plant to unload oil from as many as six trains a week, regulatory filings show. The company has also said that it’s carrying upgraded crude to the West Coast from its Scotford oil-sands upgrader in Canada.

Crude Imports

Martinez imported 903,000 barrels of medium-to-heavy crude in February from Canada, the most recent data available from the Energy Information Administration show. The complex already processes some lighter crudes, like Bakken oil, along with heavier feedstock from California’s Central Valley, Singleton said.

Contra Costa County regulators are expected to prepare a report on the environmental impacts of the coker retirement, and the public will have a chance to comment on the plan during that process, she said.

Chevron Corp. (CVX)’s Richmond refinery, west of Martinez, is also applying to local regulators for a project that would change its crude slate. The plan would replace a hydrogen plant and increase capacity at the fluid catalytic cracker’s hydrotreater and sulfur-recovery system to run higher-sulfur oils.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editors responsible for this story: Dan Stets at dstets@bloomberg.net David Marino, Richard Stubbe

For safe and healthy communities…