California Regulation, Emergency Readiness & Response, Fracking

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.

Bakken Crude, Heavy crude, Martinez CA, Shell 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

Derailment, Tribal lands, Washington State

Washington State: three derailments in three weeks

Repost from Indian Country Today Media Network

Grain Car Derailment Could Have Been Oil: Quinault Raise Alarm Again

ICTMN Staff  |  5/19/14

KXRO:  If this grain were oil…. The third train-car derailment in as many weeks has Pacific Northwest tribes that oppose oil-rail transport on edge.

It has happened again, this time not with oil but with grain.

However, the Quinault Nation pointed out on May 16, the derailment of a grain train in Grays Harbor County is all the affirmation needed to show that transporting something more hazardous, namely oil, in this manner has too much chance of ending badly.

“Another train derailment in Grays Harbor County? Three in three weeks? Rails ripped up, Cars tipped over. Cargo spilled out,” said Quinault Indian Nation President Fawn Sharp in a statement. “That cargo may have been grain this morning, but it might just as well have been oil, and that would have been disastrous.”

Sharp was alluding to a May 15 incident in which seven cars carrying grain tipped over when 11 cars on the train they were part of derailed. It was the third such occurrence in as many weeks on the network of tracks operated by Puget Sound & Pacific Railway in the Grays Harbor area, the Quinault statement said. This came right on the heels of two earlier derailments—one on April 29, when a grain car tipped over in Aberdeen, and another on May 9 in east Aberdeen, when some cars came off their tracks, the Quinault said.

The cargo was different, but the propensity of train cars to derail no matter what they were carrying says that transporting oil via this method is not safe, the Quinault said. Around the country and in Canada, derailments of trains bearing crude oil, much of it from oil sands and deemed especially flammable, have resulted in destruction and even death.

However, Puget Sound & Pacific Railway, a division of Genessee & Wyoming, said it was investigating the cause of the derailment.

“This series of minor derailments is a highly unusual, unacceptable occurrence and subject to a rigorous investigation,” company spokesperson Michael Williams, Genesee & Wyoming, told radio station KXRO on May 16. “The first two derailments were caused by localized failure of railroad ties that were saturated with moisture from recent heavy rains. Other locations experiencing this issue have been identified and are being corrected prior to receiving another train. The cause of yesterday’s derailment is still being determined.”

Several tribes in the Northwest are opposing railroad terminals in or near their territory that would handle oil and coal. Oil traffic in particular has troubled the Quinault.

“Now, one-two-three, it’s as easy as that. Any argument in favor of bringing Big Oil into our region has been knocked out cold,” said Sharp in the statement. “As we have consistently stated, our people and our treaty-protected natural resources are jeopardized by these oil shipments. This danger is real. We have invested millions of dollars to protect and restore the ecological integrity of our region, and we will not allow Big Oil to destroy it.”

Derailment, Petroleum Coke (Petcoke), Union Pacific Railroad, Valero Benicia Refinery

Two Petroleum Coke train cars derail in Benicia

Repost from The Benicia Herald
[Editor: Question: was the petcoke dust in these cars open to the wind when they derailed here in Benicia last Saturday?  What happens to the petcoke when one of these cars jostles up and then bangs down off the rails?  Anyone have a photo?  ANSWER TO THESE QUESTIONS FROM A LOCAL OBSERVER: “The cars that Valero uses to transport petcoke are ‘Hopper Cars’. They are closed top. They are not open gondala cars.  No, the product was not open to the wind.  They are completely covered and have a top fill with a door and 3 or 4 bottom discharge slide gates.”  – RS]

2 UP trains [sic] derail near Benicia refinery; no injuries or spills

May 19, 2014, The Benicia Herald

Two Union Pacific train cars came off the rails about 5:25 p.m. Saturday, Mark Davis, UP director of corporate relations and media, said Monday.

The train serves Valero Benicia Refinery, Davis said. The derailment happened near there.

“There was no petroleum coke spill,” said Sue Fisher Jones, the refinery’s public affairs manager.

Davis concurred. “There were no injuries or spills,” he said.

“Both hopper cars were loaded with coke and derailed upright with all wheels off the rail,” he said, describing the incident.

“The cars were placed back on the track Sunday morning, and the cause of the derailment is under investigation,” Davis said.

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